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HomeMy WebLinkAboutOrd. 1615-2020 (20-942)City of South San Francisco P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA City Council Ordinance: ORD 1615-2020 File Number: 20-942 Enactment Number: ORD 1615-2020 ORDINANCE APPROVING A DEVELOPMENT AGREEMENT (DA20-0001) BETWEEN THE CITY OF SOUTH SAN FRANCISCO AND GENENTECH, INC. FOR THE GENENTECH CAMPUS/MASTER PLAN PROJECT IN SOUTH SAN FRANCISCO, CALIFORNIA. WHEREAS, in 2007, the City of South San Francisco ("City") adopted the Genentech Facilities Ten -Year Master Plan ("2007 Master Plan") and certified the Genentech Corporate Facilities R&D Overlay District Expansion and Genentech Master Plan Update Master EIR ("2007 MEIR") (State Clearinghouse No. 2005072165), providing framework for land use regulations and development capacities on an approximately 207 -acre site owned by Genentech, Inc. ("Genentech") and commonly known as the "Genentech Campus,"; and WHEREAS, the General Plan's Land Use Element designates the Genentech Campus site as Business and Technology Park, with a portion of the Project Site being combined with the General Plan's Coastal Commercial designation. The Genentech Campus site is also located in the East of 101 Area Plan (and therein designated as Planned Industrial) an in the Genentech Master Plan (GMP) Zoning District (Chapter 20.260 of the City of South San Francisco Municipal Code); and WHEREAS, in response to continued and anticipated development expansion, the City, Genentech, and Lamphier-Gregory consultants have prepared the Genentech 2020 Master Plan Update to guide the development of the Genentech campus over a period of fifteen (15) years to create a vibrant, transit supported, state of the art research, office, and manufacturing campus for the life sciences and that includes zoning text amendments to Chapter 20.260 of the South San Francisco Zoning Ordinance (collectively, "2020 Master Plan"); and WHEREAS, on September 23, 2019, the Planning Commission and the City Council held a joint study session to consider the draft 2020 Master Plan; and WHEREAS, approval of the 2020 Master Plan is considered a "project" for purposes of the California Environmental Quality Act, Pub. Resources Code §21000, et seq. ("CEQA") and the City determined that an Environmental Impact Report was required to evaluate the impacts of the proposed 2020 Master Plan and zoning text amendment to Chapter 20.260; and WHEREAS, a Notice of Preparation was originally issued on May 24, 2017 and a draft environmental impact report was prepared and circulated for public review from November 8, 2019 to December 23, 2019, and on December 19, 2019, the Planning Commission held a duly noticed public hearing to take public comment on the draft EIR (DEIR); and City of South San Francisco Page 1 File Number: 20-942 Enactment Number., ORD 1615-2020 WHEREAS, the City prepared written responses to comments received on the DEIR and prepared a FEIR for circulation, which consists of the DEIR (incorporated by reference), all comments received on the DEIR, written responses to comments received on the DEIR, and revisions to the DEIR; and WHEREAS, the City and Genentech have drafted a proposed Development Agreement, attached hereto as Exhibit A ("Development Agreement") to outline the expectations and obligations of the 2020 Master Plan for a fifteen (15) year term in the Development Agreement; and WHEREAS, the City and the Developer now wish to enter into the Development Agreement in Exhibit A; and WHEREAS, on October 15, 2020 the Planning Commission for the City of South San Francisco held a lawfully noticed public hearing to solicit public comment and consider the proposed Development Agreement, and recommended that the City Council approve the proposed Development Agreement; and WHEREAS, the City Council held a duly noticed public hearing on November 23, 2020, to consider the proposed Development Agreement and take public testimony; and WHEREAS, the City Council has considered the environmental impacts of the proposed 2020 Master Plan and zoning text amendment to Chapter 20.260 by separate resolution. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of South San Francisco does hereby ordain as follows: SECTION 1. Findings. That 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, including all amendments and updates thereto; the South San Francisco Municipal Code; the Genentech 2020 Master Plan Update, prepared by Lamphier-Gregory; the draft Zoning Ordinance Amendment for Chapter 20.260 Genentech Master Plan Zoning District, the Genentech Campus Master Plan EIR, including the Draft and Final EIR, and all appendices thereto; all reports, minutes, and public testimony submitted as part of the City Council and Planning Commission Joint Study Session on September 23, 2019; all reports, minutes, and public testimony submitted as part of the Planning Commission's duly noticed December 19, 2019 meeting; all reports, minutes, and public testimony submitted as part of the Planning Commission's duly noticed October 15, 2020 meeting; and public testimony submitted as part of the City Council's duly noticed November 23, 2020 meeting; and any other evidence (within the meaning of Public Resources Code §21080(e) and §21082.2), the City Council of the City of South San Francisco hereby finds as follows: A. The foregoing recitals are true and correct and made a part of this Ordinance. B. The Exhibit attached to this Ordinance, the proposed Development Agreement (Exhibit A), is incorporated by reference and made a part of this Ordinance, as if set forth fully herein. City of South San Francisco Page 2 File Number. 20-942 Enactment Number: ORD 1615-2020 C. The documents and other material constituting the record for these proceedings are located at the Planning Division for the City of South San Francisco, 315 Maple Avenue, South San Francisco, CA 94080, and in the custody of Chief Planner. D. The Development Agreement, attached hereto as Exhibit A, sets for the duration, property, project criteria, and other required information identified in Government Code section 65865.2. Based on the findings in support of the Project, the City Council finds that the Development Agreement, vesting a project to create a vibrant, transit supported, state of the art research, office, and manufacturing campus for the life sciences, is consistent with the objectives, policies, general land uses and programs specified in the General Plan, 2020 Master Plan and East of 101 Area Plan as it fulfills Genentech's obligations to meet the policies of the 2020 Master Plan. E. The Development Agreement is compatible with the uses authorized in, and the regulations prescribed for the Genentech Master Plan Zoning District in which the real property is located as it does not grant special provisions for Genentech and is primarily intended to ensure compliance and community benefits for the City. F. The Development Agreement is in conformity with public convenience, general welfare and good land use practice as it will strengthen the future development and the Genentech campus and fulfill community benefits for the City, including open space, transportation infrastructure, and housing investment. G The Development Agreement will not be detrimental to the health, safety and general welfare of the City as it will preserve the City abilities to manage the implementation of the 2020 Master Plan and ensure compliance with the goals and visions set forth. H. The Development Agreement will not adversely affect the orderly development of property or the preservation of property valued as the Development Agreement will only pertain to the Genentech campus and sets forth performance standards for orderly development and redevelopment. SECTION 2. Approval of Development Agreement A. The City Council of the City of South San Francisco hereby approves the Development Agreement with Genentech, Inc., attached hereto as Exhibit A and incorporated herein by reference. B. The City Council further authorizes the City Manager to execute the Development Agreement, on behalf of the City, in substantially the form attached as Exhibit A, and to make revisions to such Agreement, subject to the approval of the City Attorney, which do not materially or substantially increase the City's obligations thereunder. City of South San Francisco Page 3 File Number. 20-942 SECTION 3. Severability Enactment Number: ORD 1615-2020 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 (30) days from and after its adoption. Introduced at a regular meeting of the City Council of the City of South San Francisco held the 24th day of November 2020. At a meeting of the City Council on 12/1/2020, a motion was made by Councilmember Matsumoto, seconded by Councilmember Nicolas, that this Ordinance be adopted. The motion passed. Yes: 5 Mayor Garbarino, Vice Mayor Addiego, Councilmember Nagales, Councilmember Nicolas, and Councilmember Matsumoto Attest by �—illm L ajx--,, �sa Govea Acosta, City Clerk Richard Garbarino, Mayor City of South San Francisco Page 4 EXHIBIT A – FINAL DEVELOPMENT AGREEMENT FOR CITY COUNCIL 1 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City Clerk City of South San Francisco P.O. Box 711 South San Francisco, CA 94083 ______________________________________________________________________________ (Space Above This Line Reserved For Recorder’s Use) This instrument is exempt from recording fees pursuant to Government Code section 27383. Documentary Transfer Tax is $0.00 (exempt per Revenue & Taxation Code section 11922, Transfer to Municipality). DEVELOPMENT AGREEMENT BY AND BETWEEN CITY OF SOUTH SAN FRANCISCO AND GENENTECH, INC. Genentech Campus SOUTH SAN FRANCISCO, CALIFORNIA ADOPTED BY ORDINANCE NO. ___________ OF THE CITY OF SOUTH SAN FRANCISCO CITY COUNCIL Effective Date: ____________ EXHIBIT A – FINAL DEVELOPMENT AGREEMENT FOR CITY COUNCIL 1 DEVELOPMENT AGREEMENT THIS DEVELOPMENT AGREEMENT (“Agreement”) is entered into as of _______________, 2020 by and between Genentech, Inc., a Delaware corporation (“Developer”), and the City of South San Francisco, a municipal corporation (“City”), pursuant to California Government Code (“Government Code”) sections 65864 et seq. Developer and the City are sometimes collectively referred to herein as “Parties.” RECITALS A. To strengthen the public planning process, encourage private participation in comprehensive planning and reduce the economic risk of development, the Legislature of the State of California enacted California Government Code sections 65864 et seq. (the “Development Agreements Statute”), which authorizes the City to enter into an agreement with any person having a legal or equitable interest in real property for the development of such property. B. Pursuant to Government Code section 65865, City has adopted procedures and requirements for the consideration of development agreements (South San Francisco Municipal Code (“SSFMC”) Chapter 19.60). This Agreement has been processed, considered, and executed in accordance with such procedures and requirements. C. Developer has a legal and/or equitable interest in certain real property located in the City on the approximately 207-acre site commonly known as the “Genentech Campus,” as more particularly described and depicted in Exhibit A (“Project Site”). Developer has requested City to enter into a development agreement and proceedings have been taken in accordance with the rules and regulations of the City with regard to Developer’s proposed Project (as defined below). D. The terms and conditions of this Agreement have undergone extensive review by Developer, City, and the City of South San Francisco City Council (“City Council”) members and have been found to be fair, just, and reasonable. E. The City Council believes that the best interests of the citizens of the City of South San Francisco and the public health, safety, and welfare will be served by entering into this Agreement. F. This Agreement and the Project (as defined in Section ___ of this Agreement) will be consistent with the City of South San Francisco General Plan (“General Plan”), the City’s East of 101 Area Plan, and the Master Plan Update (as defined in Recital K). G. Development (as defined in Section ___ of this Agreement ) of the Project Site with the Project in accordance with this Agreement will provide substantial benefits to City and will further important policies and goals of County. This Agreement will among other things, (1) …., (2) [LIST BENEFITS] H. In exchange o f the benefits to City described in the preceding Recital, together with the other public benefits that will result from the Development of the Project, Developer will receive by this Agreement assurance that it may proceed with the Project in accordance with the 3634258.1 2 “Applicable Law” (as defined in Section __ below), and therefore desires to enter into this Agreement. I. This agreement will eliminate uncertainty in planning and provide for the orderly Development of the Project on the Project Site, facilitate progressive installation of necessary improvements, provide for public services appropriate to the Development of the Project on the Project Site, and generally serve the purposes for which development agreements under section 65864, et seq. of the California Government are intended. J. The General Plan’s Land Use Element designates the Project Site as Business and Technology Park, with a portion of the Project Site being combined with the General Plan’s Coastal Commercial designation. The Project Site is also located in the East of 101 Area Plan (and therein designated as Planned Industrial) an in the Genentech Master Plan (GMP) Zoning District (Chapter 20.260 of the City of South San Francisco Municipal Code). On [DATE], 2020, after duly noticed public hear ing and review by the City of South San Francisco Planning Commission (“Planning Commission”), by Resolution No. [XXXXX], the City Council certified Genentech Master Plan Update Environmental Impact Report (SCH# 2017052064) (“EIR”) in accordance with the California Environmental Quality Act (Public Resources Code §§ 2100 et seq. (“CEQA”) and the CEQA Guidelines (California Code of Regulations, Title 14, §§ 15000 et seq. The EIR analyzed the potential environmental impacts of Development o f the Project on the Project Site. Concurrent with its certification of the EIR, and by the same resolution, the City Council duly adopted CEQA findings of fact, a Statement of Overriding Considerations, and a Mitigation Monitoring and Reporting Program (“MMRP”) for the Project. The Statement of Overriding Considerations carefully considered each of the Project’s significant and unavoidable impacts identified in the EIR and determined that each such impact is acceptable in light of the Project’s economic, legal, social, technological and other benefits. The MMRP identifies all mitigation measures identified in the EIR that are applicable to the Project and sets forth a program for monitoring or reporting on the implementation of such mitigation measures. Also on [DATE], 2020, after a duly noticed public hearing and review by the Planning Commission, by Ordinance No. [XXXXX], the City Council duly adopted the 2019 Genentech Master Plan Update (“Master Plan Update”), and amended Chapter 20.260 of the City of South San Francisco Municipal Code to be consistent with the Master Plan Update (“Zoning Amendment”). The entitlements described in this Recital K and listed on Exhibit B, as well as this Agreement, are collect ively referred to herein as the “Project Approvals.” The Project has been designed to fulfill the Development vision of the Project Approvals consistent with the City’s land use policies and regulations, and to secure Developer’s ability to achieve the Development potential of the Project Site at a responsible level of growth. K. On [DATE], 2020, following a duly noticed public hearing, the Planning Commission recommended that the City Council approve this Agreement. And, on [DATE], 2020, the City Council, after conducting a duly noticed public hearing, found that this Agreement is consistent with the General Plan and Title 20 of the SSFMC and has conducted all necessary proceedings in accordance with the City’s rules and regulations for the approval of this Agreement. In accordance with SSFMC section 19.60.120, the City Council, on [DATE], 2020, at a duly noticed public hearing, adopted Ordinance No. [XXXXXXX] approving and authorizing the execution of this Agreement. 3634258.1 3 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 in effect on the Effective Date and in consideration of the mutual covenants and agreements contained herein, agree as follows: ARTICLE 1 DEFINITIONS 1.1 “Administrative Agreement Amendment” shall have that meaning set forth in Section 7.2 of this Agreement. 1.2 “Administrative Project Amendment” shall have that meaning set forth in Section 7.1 of this Agreement. 1.3 “Affiliate” shall have that meaning set forth in Section 8.1 of this Agreement. 1.4 “Agreement” shall mean this Development Agreement. 1.5 “Applicable Law” shall have that meaning set forth in Section 6.3 of this Agreement. 1.6 “Assessments” shall have that meaning set forth in Exhibit C. 1.7 “CEQA” shall have that meaning set forth in Recital K of this Agreement. 1.8 “City” shall mean the City of South San Francisco. 1.9 “City Council” shall have that meaning set forth in Recital D of this Agreement. 1.10 “City Law” shall have that meaning set forth in Section 6.5 of this Agreement. 1.11 “Claims” shall have that meaning set forth in Section 6.10 of this Agreement. 1.12 “CLF Account” shall have that meaning set forth in Section 3.3 of this Agreement. 1.13 “Commercial Linkage Fee” shall have that meaning set forth in Section 3.3 of this Agreement. 1.14 “Commercial Linkage Fee Prepayment” shall have that meaning set forth in Section 3.3 of this Agreement. 1.15 “Control” shall have that meaning set forth in Section 8.1 of this Agreement. 1.16 “Controlled” shall have that meaning set forth in Section 8.1 of this Agreement. 1.17 “Controlling” shall have that meaning set forth in Section 8.1 of this Agreement. 3634258.1 4 1.18 “Deficiencies” shall have that meaning set forth in Section 9.2 of this Agreement. 1.19 “Developer” shall mean Genentech, Inc., and any assignees pursuant to Article 8 of this Agreement . 1.20 “Development” or “Develop” shall mean the division or subdivision of land into one or more parcels; the construction, reconstruction, conversion, structural alteration, relocation, improvement, maint enance, or enlargement of any structure; any excavation, fill, grading, landfill, or land disturbance; the construction of specified road, path, trail, transportation, water, sewer, electric, communications, and wastewater infrastructure directly related to the Project whether located within or outside the Project Site; the installation of landscaping and other facilities and improvements necessary or appropriate for the Project; and any use or extension of the use of land. 1.21 “Development Agreements Statute” shall have that meaning set forth in Recital A of this Agreement. 1.22 “Development Fees” shall have that meaning set forth in Section 3.2 of this Agreement. 1.23 “District” shall mean any assessment or financing district(s) established by the City pursuant to the Community Facilities District Act of 1982 (Mello-Roos), Government Code Sections 53311 et seq., the Streets and Highways Code, Division 10 and 12, the Landscape and Lighting Act of 1972, or other similar law to finance all or part of the public improvements through the issuance of bonds and the imposition of assessments, fees, or taxes on the benefiting land, including, but not limited to, the Property. 1.24 “E101 CFD” shall have that meaning set forth in Section 3.4(e) of this Agreement. 1.25 “Effective Date” shall have that meaning set forth in Section 2.1 of this Agreement. 1.26 “EIR” shall have that meaning set forth in Recital K of this Agreement. 1.27 “Force Majeure Delay” shall have that meaning set forth in Section 10.3 of this Agreement. 1.28 “Future Fee” shall have that meaning set forth in Section 5.6(b) of this Agreement. 1.29 “GDP” shall have that meaning set forth in Section 10.3 of this Agreement . 1.30 “General Plan ” shall have that meaning set forth in Recital G of this Agreement. 1.31 “Indemnitees” shall have that meaning set forth in Section 6.10 of this Agreement. 1.32 “Judgment” shall have that meaning set forth in Section 9.2 of this Agreement. 1.33 “Linkage Fee Credits” shall have that meaning set forth in Section 3.3 of this Agreement. 3634258.1 5 1.34 “Master Plan Update” shall have that meaning set forth in Recital K. 1.35 "Mortgage" shall mean any lien of mortgage, deed of trust, or other security interest (e.g., lease-leaseback agreement) in the Project or the Project Site given in exchange for financing of any kind. 1.36 "Mortgagee" shall mean the beneficiary of any Mortgage. 1.37 “MMRP” shall have that meaning set forth in Recital E of this Agreement. 1.38 “Parties” shall mean the Developer and City, collectively. 1.39 “Pre-CFD Account” shall have that meaning set forth in Section 3.4(e) of this Agreement. 1.40 “Pre-CFD Contribution” shall have that meaning set forth in Section 3.4(e) of this Agreement. 1.41 “Periodic Review” shall have that meaning set forth in Section 10.5 of this Agreement. 1.42 “Permissible New Fee” shall have that meaning set forth in Sect ion 5.6(b) of this Agreement. 1.43 “Prevailing Wage Laws” shall have that meaning set forth in Section 6.11 of this Agreement. 1.44 “Planning Commission” shall have that meaning set forth in Recital K of this Agreement. 1.45 “Prerequisite Compliance Obligations” shall have that meaning set forth in Section 3.3 of this Agreement. 1.46 “Project” shall mean the Development on the Project Site as contemplated by the Project Approvals and, as and when they are issued, the Subsequent Approvals, including, without limitation, the permitted uses, density and intensity of uses, and maximum size and height of buildings specified in the Master Plan and in Chapter 20.260 of Title 20 of the SSFMC, and as such Project Approvals and Subsequent Approvals may be further defined or modified pursuant to the provisions of this Agreement. 1.47 “Project Approvals” shall have that meaning set forth in Recital K of this Agreement. 1.48 “Project Site” shall have that meaning set forth in Recital C of this Agreement. 1.49 “Public Art Fee” shall have that meaning set forth in Section 3.5 of this Agreement. 3634258.1 6 1.50 “Severe Economic Recession” shall have that meaning set forth in Section 10.3 of this Agreement. 1.51 “SOV” shall have that meaning set forth Section 3.11 of this Agreement. 1.52 “SSFMC” shall have the meaning set forth in Recital B of this Agreement. 1.53 “Subsequent Approvals” shall mean those certain other land use approvals, entitlements, and permits other than the Project Approvals that are necessary or desirable for the Project. In particular, for example and without limitation, the parties contemplate that Developer may, at its election, seek approvals for the following: amendments of the Project Approvals; design review approvals, unless determined not required pursuant to the further provisions of this Agreement; improvement agreements; grading permits; demolition permits; building permits; lot line adjustments; sewer, water, and utility connection permits; certificates of occupancy; subdivision map approvals; parcel map approvals; resubdivisions; zoning and rezoning approvals; preliminary and final development plans; development agreements; conditional use permits; minor use permits; sign permits ; any subsequent approvals required by other state or federal entities for Development and implementation of the project that are sought or agreed to in writing by Developer; and any amendments to, or repealing of, any of the foregoing. 1.54 “Tax” and “Taxes” shall not include any generally applicable City Business License Tax or locally imposed Sales Tax. 1.55 “TDM Plan ” shall have that mea ning set forth in Section 3.4(b) of this Agreement. 1.56 “Term” shall have that meaning set forth in Section 2.2 of this Agreement. 1.57 “TIF Account” shall have that meaning set forth in Section 3.4 of this Agreement. 1.58 “Traffic Impact Fee Credits” shall have that meaning set forth in Section 3.4 of this Agreement. 1.59 “Traffic Impact Prepayment” shall have that meaning set forth in Section 3.4 of this Agreement. 1.60 “Zoning Amendment” shall have that meaning set forth in Recital K of this Agreement. To the extent that any defined terms contained in this Agreement are not defined above, then such terms shall have the meaning otherwise ascribed to them elsewhere in this Agreement, or if not in this Agreement, then by controlling law, including the SSFMC. ARTICLE 2 EFFECTIVE DATE AND TERM 2.1 Effective Date. This Agreement shall become effective upon the date the ordinance approving this Agreement becomes effective (“Effective Date”). 3634258.1 7 2.2 Term. The term of this Agreement shall commence upon the Effective Date and continue (unless this Agreement is otherwise terminated or extended as provided in this Agreement) until fifteen (15) years plus one (1) day after the Effective Date (“Term”). ARTICLE 3 OBLIGATIONS OF DEVELOPER 3.1 Obligations of Developer Generally. The Parties acknowledge and agree that the City’s agreement to perform and abide by the covenants and obligations of City set forth in this Agreement is a material consideration for Developer’s agreement to perform and abide by its long term covenants and obligations, as set forth herein. The Parties acknowledge that many of Developer’s long term obligations set forth in this Agreement are in addition to Developer’s agreement to perform all the applicable mitigation measures identified in the MMRP. Failure by Developer to make any of the payments called for in this Article 3 at the times and in the amounts specified constitutes default by Developer subject to the provisions of Article 10 of this Agreement. 3.2 City Fees. (a) Developer shall pay those processing, building permit, inspection and plan checking fees and charges required by the City for processing applications and requests for Subsequent Approvals under the applicable non-discriminatory regulations in effect at the time such applications and requests are submitted to the City. (b) Consistent with the terms of the Agreement, and subject to Section 5.6(b), City shall have the right to impose only such development fees (“Development Fees”) as have been adopted by City as of the Effective Date of this Agreement, as set forth on Exhibit C, and only at those rates of such Development Fees in effect at the time of payment of the Development Fees, provided that any such fee increase is imposed on a citywide (or East of 101 Area Plan-wide) basis, reserving to City the discretion to increase Development Fees for different land use zoning designations in varying amounts. The Development Fees shall be paid at the time set forth on Exhibit C except as otherwise provided in Article 3 of this Agreement. This Section 3.2(b) shall not prohibit City from imposing on Developer any fee or obligation that is imposed by a regional agency or the State of California in accordance with state or federal obligations and required to be implemented by City. 3.3 Housing Benefits. (a) Prepayment of Commercial Linkage Fee. Developer acknowledges that the Development Fees include the City’s Affordable Housing Commercial Linkage Fee established pursuant to Chapter 8.69 of the SSFMC (“Commercial Linkage Fee”), which is charged on a per square foot basis. City acknowledges and agrees that each commercial building Developed as part of the Project constitutes a separate, individual “commercial development project” for purposes of Chapter 8.69 of the SSFMC and this Agreement. Notwithstanding any provision of SSFMC sect ion 8.69.040(a) to the contrary, Developer shall prepay City a portion of the Commercial Linkage Fee applicable to the entire Project, which total prepayment amount shall equal thirty million dollars and zero cents ($30,000,000.00), shall be paid in fifteen (15) installments, and, not withstanding 3634258.1 8 any provision of this Agreement to the contrary, shall not be subject to adjustment (“Commercial Linkage Prepayment”). City agrees that all Commercial Linkage Prepayment amounts shall, upon payment by Developer, be deposited into a segregated account (“CLF Account”), shall not be comingled with other funds, and shall be used in accordance with Chapter 8.69 of the SSFMC. The CLF Account may be a separate account within City’s existing Commercial Linkage Fee fund. City shall, upon reasonable notice, give Developer and its agents access to inspect, examine, and copy City’s books and related documents for the purposes of auditing the CLF Account and verifying City’s compliance with the terms and conditions of this Section 3.3(a), which access shall also include access to City’s record keeping and accounting personnel. (i) Developer shall pay City the Commercial Linkage Prepayment in instalments made pursuant to the following payment schedule: a. On or before the first (1st) anniversary of the Effective Date, Developer shall pay City an amount equal to three million dollars and zero cents ($3,000,000.00); b. On or before the second (2nd) anniversary of the Effective Date, Developer shall pay City an amount equal to one mi llion five hundred thousand dollars and zero cents ($1, 500,000.00); c. On or before the third (3rd) anniversary of the Effective Date, Developer shall pay City an amount equal to one million five hundred thousand dollars and zero cents ($1, 500,000.00); d. On o r before the fourth (4th) anniversary of the Effective Date, Developer shall pay City an amount equal to one million five hundred thousand dollars and zero cents ($1, 500,000.00); e. On or before the fifth (5th) anniversary of the Effective Date, Developer shall pay City an amount equal to one million five hundred thousand dollars and zero cents ($1, 500,000.00); f. On or before the sixth (6th) anniversary of the Effective Date, Developer shall pay City an amount equal to four million five hundred thousand dollars and zero cents ($4, 500,000.00); g. On or before the seventh (7th) anniversary of the Effective Date, Developer shall pay City an amount equal to one million five hundred thousand dollars and zero cents ($1, 500,000.00); h. On or before the eighth (8th) anniversary of the Effective Date, Developer shall pay City an amount equal to one million five hundred thousand dollars and zero cents ($1, 500,000.00); i. On or before the ninth (9th) anniversary of the Effective Date, Developer shall pay City amount equal to one million five hundred thousand dollars and zero cents ($1, 500,000.00); 3634258.1 9 j. On or before the tenth (10th) anniversary of the Effective Date, Developer shall pay City an amount equal to one million five hundred thousand dollars and zero cents ($1, 500,000.00); k. On or before the eleventh (11th) anniversary of the Effective Date, Developer shall pay City an amount equal to four million five hundred thousand dollars and zero cents ($4, 500,000.00); l. On or before the twelfth (12th) anniversary of the Effective Date, Developer shall pay City an amount equal to one million five hundred thousand dollars and zero cents ($1, 500,000.00); m. On or before the thirteenth (13th) anniversary of the Effective Date, Developer shall pay City an amount equal to one million five hundred thousand dollars and zero cents ($1, 500,000.00); n. On or before the fourteenth (14th) anniversary of the Effective Date, Developer shall pay City an amount equal to one million five hundred thousand dollars and zero cents ($1, 500,000.00); and o. On or before the fifteenth (15th) anniversary of the Effective Date, Developer shall pay City an amount equal to one million five hundred thousand dollars and zero cents ($1, 500,000.00). (ii) Concurrent with each payment of a Commercial Linkage Prepayment installment, Developer shall be entitled to, and City shall grant Developer, vested Commercial Linkage Fee credits equal to the total dollar value of such installment (“Linkage Fee Credits”). For each of the Project’s individual commercial development projects, Developer shall pay the Commercial Linkage Fee applicable to such commercial development project, provided that the total Commercial Linkage Fee amount applicable to such commercial development project shall be reduced in amount equal to any Linkage Fee Credits then vested in Developer. Notwithstanding the immediately preceding sentence, in the event City increases the Commercial Linkage Fee amount in a manner consistent with this Agreement, then each subsequent Commercial Linkage Fee payable by D eveloper shall be reduced through application of Linkage Fee Credits in an amount equal to the total fee that Developer would have otherwise owed prior to such fee increase, and the remaining fee amount (i.e., the difference between the initial fee amount and the increased fee amount) shall be paid by Developer to the City and shall not be subject to reduction through application of Linkage Fee Credits, provided that no provision of this Agreement shall limit or restrict Developer’s right to request, and the City Council’s authority to approve, an additional fee credit up to twenty-five (25%) of total remaining fee amount for Developer’s voluntary election to construct the Project utilizing prevailing wages in accordance with Section 8.59.080 of the South San Francisco Municipal Code in effect on the Effective Date. (iii) In the event that Developer determines to transfer or assign all or part of the Project or Project site to an unaffiliated third party, developer may, subject to Section 8.1 of this Agreement, transfer or assign a proportionate share of Developer’s interest in Linkage Fee Credits to such transferee or assignee for use within the Project Site for such consideration as 3634258.1 10 Developer, in its sole discretion, determines. In such event, any portion of the Linkage Fee Credits that are not transferred or assigned by Developer shall remain vested in Developer, and Developer shall execute and deliver to City a copy of the instrument transferring or assigning that portion of the Linkage Fee Credit s so transferred or assigned . In no event shall any portion of the Linkage Fee Credit s be extinguished in the event Developer transfers or assigns all or part of the Project or Project Site without also transferring or assigning all or part of the subject property’s proportionate share of the Linkage Fee Credit s. For purposes of this Section 3.3(a)(iii), the phrase “proportionate share” shall mean a share of Developer’s interest in Linkage Fee Credits that is calculated on a dollar value per square foot basis and is equal to or less t han such dollar value multiplied by the maximum square feet of Development authorized by the Project Approvals applicable to t he subject property. By way of example, if the dollar value of each Linkage Fee Credit is equal to one dollar ($1.00) per square foot, and the Project Approvals authorize a maximum of one thousand (1,000) square feet of Development on the subject property, then that property’s proportionate share of the Developer’s interest in the Linkage Fee Credits shall not exceed one thousand d ollars ($1,000.00) in total value. (iv) Developer shall make two Commercial Linkage Prepayments totaling one million dollars and no cents ($1,000,000.00) for the purposes and subject to the terms described in this Section 3.3(a)(iv). Developer’s payments pursuant to this Section 3.3(a)(iv) shall be in addition to the Commercial Linkage Prepayment of thirty million dollars and no cents ($30,000,000.00) described in Section 3.3(a)(i). (a) Developer shall make the payments described in this Section 3.3(a)(iv) in equal installments of five hundred thousand dollars and no cents ($500,000.00). Developer shall make one payment each with the second and third installments of Commercial Linkage Prepayments described in Sections 3.3(a)(i)(b) and 3.3(a)(i)(c). The total second installment shall be two million dollars and no cents ($2,000,000.00). The total third installment shall be two million dollars and no cents ($2,000,000.00). (b) City shall deposit the payments made pursuant to this Section 3.3(a)(iv) in the CLF Account. (c) Developer’s payments pursuant to this Section 3.3(a)(iv) shall be included in the calculation of Developer’s Commercial Linkage Credits, as described in Section 3.3(a)(ii), and the Commercial Linkage Credits resulting from the additional payment s shall be treated in the same manner as other Commercial Linkage Credits, as described in Sections 3.3(a)(ii) and 3.3(a)(iii), including without limitation transferability and application against increased Commercial Linkage Fee amounts. (d) City shall use five hundred thousand dollars and no cents ($500,000.00) from Developer’s first installment payment pursuant to Section 3.3(a)(i)(a) and five hundred thousand dollars and no cents ($500,000.00) from Developer’s second installment payment 3634258.1 11 pursuant to Section 3.3(a)(i)(b) to provide financial support to a third party to develop and administer a program exclusively in South San Francisco to induce owners of qualifying residential properties to add accessory dwelling units to their properties or, where permissible under City land use regulations, to split their lots and construct an additional dwelling, increasing the mix of housing options available in the City and potentially the supply of housing units affordable to low- and moderate-income households. City shall work in good faith with Hello Housing, a California nonprofit public benefit corporation, to develop a program meeting the goals described in this paragraph. The final parameters of the program shall be subject to the approval of the City Council and Hello Housing. City shall make up to five hundred thousand and no cents ($500,000) of Commercial Linkage Prepayment funds available for the approved program in each of the first and second years that the program is in operation. Appropriation of funds from Commercial Linkage Prepayments for the approved program shall be in the sole discretion of the City Council, with the understanding that it is the parties’ intent that the funds be used for Hello Housing to develop and administer the housing program described herein. (e) In the event that City and Hello Housing are unable to reach an agreement on the parameters of the program described in Section 3.3(a)(iv)(d), or if Hello Housing declines or ceases to operate a program, City and Developer shall meet and confer regarding an alternative third party to develop and administer such a program or to otherwise direct Developer’s payment made pursuant to this Section 3.3(a)(iv). 3.4 Transportation Benefits. (a) Prepayment of East of 101 Traffic Impact Fee. (i) Developer acknowledges that the Development Fees include the City’s East of 101 Traffic Impact Fee established pursuant to City Council Resolution No. 84-2007(“Traffic Impact Fee”), which is charged on a per square foot basis. City acknowledges and agrees that each commercial building Developed as part of the Project constitutes a separate, individual “research & development project” for purposes of Chapter XXX of the SSFMC and this Agreement. Notwithstanding any provision of SSFMC section XXX to the contrary, Developer shall prepay City a portion of the Traffic Impact Fee applicable to the entire Project, which total prepayment amount shall equal ten million dollars and zero cents ($10,000,000.00), shall be paid in five (5) installments, and, notwithstanding any provision of this Agreement to the contrary, shall not be subject to adjustment (“Traffic Impact Prepayment”). City agrees that all Traffic Impact Prepayment amounts shall, upon payment by Developer, be deposited into a segregated account (“TIF Account”), shall not be comingled with other funds, and shall only be used in accordance with the City’s 2001 Traffic Impact Fee Program nexus study (as updated May 6, 2005 and July 3634258.1 12 19, 2007). The TIF Account may be a separate account within City’s existing Traffic Impact Fee fund. City shall, upon reasonable notice, give Developer and its agents access to inspect, examine, and copy City’s books and related documents for the purposes of auditing the TIF Account and verifying City’s compliance with the terms and conditions of Section 3.4 of this Agreement, which access shall also include access to City’s record keeping and accounting personnel. (ii) Developer shall pay City the Traffic Impact Prepayment in a total of five individual installments in accordance with the follo wing payment schedule: a. On or before the first (1st) anniversary of the Effective Date, Developer shall pay City an amount equal to two million dollars and zero cents ($2,000,000.00); b. On or before the third (3rd) anniversary of the Effective Date, Develop er shall pay City an amount equal to two million dollars and zero cents ($2,000,000.00); c. On or before the fifth (5th) anniversary of the Effective Date, Developer shall pay City an amount equal to two million dollars and zero cents ($2,000,000.00); and d. On or before the seventh (7th) anniversary of the Effective Date, Developer shall pay City an amount equal to two million dollars and zero cents ($2,000,000.00). e. On or before the ninth (9th) anniversary of the Effective Date, Developer shall pay City an amount equal to two million dollars and zero cents ($2,000,000.00). (iii) Concurrent with Developer’s payment of each Traffic Impact Prepayment instalment, Developer shall be entitled to, and City shall grant Developer, vested Traffic Impact Fee credits equal to the dollar value of such installment (“Traffic Impact Fee Credits”). For each of the Project’s individual commercial development projects, Developer shall pay the Traffic Impact Fee applicable to such commercial development project, provided that the total Tra ffic Impact Fee amount applicable to such commercial development project shall be reduced in amount equal to any Traffic Impact Fee Credits then vested in Developer. (iv) In the event that Developer determines to transfer or assign all or part of the Project or Project Site to an unaffiliated third party, developer may, subject to Section 8.1 of this Agreement transfer or assign a proportionate share of Developer’s interest in part of the Traffic Impact Fee Credits to such transferee or assignee for use within the Project for such consideration as Developer, in its sole discretion, determines. In such event, any portion of the Traffic Impact Fee Credits that are not transferred or assigned by Developer shall remain vested in Developer, and Developer shall execute and deliver to City a copy of the instrument transferring or assigning that portion of the Traffic Impact Fee Credits so transferred or assigned. In no event shall any portion of the Traffic Impact Fee Credits be extinguished in the event Developer transfers or assigns all or part of the Project or Project Site without also transferring or assigning all or part of the subject property’s proportionate share of the Traffic Impact Fee Credits. For purposes of 3634258.1 13 this Section 3.4(a)(iv), the phrase “proportionate share” shall mean a share of Developer’s interest in Traffic Impact Fee Credits that is calculated on a dollar value per square foot basis and is equal to or less than such dollar value multiplied by the maximum square feet of Development authorized by the Project Approvals applicable to the subject property. By way of example, if the dollar value of each Traffic Impact Fee Credit is equal to one dollar ($1.00) per square foot, and the Project Approvals authorize a maximum of one thousand (1,000) square feet of Development on the subject property, then that property’s proportionate share of Developer’s interest in the Traffic Impact Fee Credits shall not exceed one thousand dollars ($1,000.00) in total value. (b) Transportation Demand Management Plan. The Developer shall implement a Transportation Demand Management Plan (“TDM Plan”) to reduce the Project-related single occupancy vehicle (“SOV”) trips and to encourage the use of public transit and alternate modes of transportation. The TDM Plan shall be subject to City’s approval and shall be designed to ensure that, on or before the tenth (10th) anniversary of this Agreement following the Effective Date, no mor e than fifty percent (50%) of Project employee trips to the Project Site occur using SOV transportation modes. City agrees that the approved TDM plan shall allow Developer to count “remote working” arrangements (e.g., working from home) as contributing to Developer’s SOV trip reduction obligation. Failure by Developer to meet the trip reduction goals of the TDM Plan within the time period provided constitutes default by Developer subject to the provisions of Article 10 of this Agreement. (c) East of 101 Commuter Bus Service. During the Term, Developer shall use commercially reasonable, good faith efforts to cooperate with interested third-party employers, landowners, and lessors that do business within, or own or control real property located within, the East of 101 Area Plan boundary in order to establish a private program pursuant to which Develo per’s existing, private first- and last -mile commuter bus service is expanded to provide such commuter bus service to such third-party employers, landowners, and lessors, and their respective employees and lessees, in accordance with one or more private contracts to be entered into by Developer and participating third-party employers, landowners, and/or lessors. (d) Grand Avenue Flyover Design Funding. Developer shall pay City up to seven hundred fifty thousand dollars and zero cents ($750,000) to reimburse Cit y’s reasonably documented incurred costs of preparing feasibility studies and/or preliminary design for the proposed Grand Avenue northbound off-ramp fl yover realignment described in section 5.1 of the City’s Mobility Plan 20/20 in effect on the Effective Date, provided that in no event shall Developer be required to make any such payment or portion thereof prior to January 1, 2021 and in no event without three months prior written notice from City. (e) East of 101 Community Facilities District Support. (i) Develo per will support City’s formation of a communities facilities district serving land within the East of 101 Area Plan boundary and that is established within the parameters described in the City Manager’s October 2, 2019 staff report on the topic and attached as Exhibit D (“E101 CFD”), provided that (i) the CFD proceeds are not used to fund first- and last -mile commuter bus service within the East of 101 area so long as Genentech is operating expanded first - and last-mile commuter bus service accessible to the employees of third-party East of 101 employers in accordance with private contracts, and (ii) the Project’s maximum CFD 3634258.1 14 assessment rate is less than one dollar ($1.00) per square foot of assessable real property during the period in which Developer is operating such expanded commuter bus service and, during the period in which Developer is not operating such expanded bus service, the maximum CFD rate does not exceed one dollar ($1.00) per square foot of assessable real property. (ii) In the event t hat the E101 CFD is not finally established prior to January 1, 2026, Developer agrees to pay City a one-time contribution of five million dollars and zero cents ($5,000,000.00) (“Pre-CFD Contribution”), payable in five equal, annual installments of one million dollars ($1,000,000.00) starting on the first business day in January 2026 and continuing yearly to the first business day of January 2030. (iii) The Parties agree to meet and confer to discuss and select one or more transportation improvements that will be eligible for funding using monies paid by Developer to City in accordance with subpart (ii) of subsection (e) of this Section 3.4, with the mutual intent that such monies be used to fund improvements either similar to those described in Exhibit D or which reduce vehicle miles traveled within the East of 101 Area Plan boundary, or both. The Parties further agree that no such funding shall be made available for, or irretrievably committed to, the construction of any transportation improvement that has not previously been the subject of appropriate environmental review undertaken in accordance with all applicable requirements of CEQA, and the statute of limitations to legally challenge such CEQA compliance action must have previously expired without any such challenge being filed (or if timely challenged, such challenge must have been previously and finally resolved in favor of the relevant CEQA lead agency by a court of competent jurisdiction). (iv) In the event that the E101 CFD is finally established or becomes effective and the CFD tax is levied on the Project Site after January 1, 2026, then Developer shall have no obligations arising under subpart (ii) of subsection (e) of this Section 3.4, and Developer shall be entitled to , and City shall grant Developer, a vested E101 CFD credit equal to the total amount of the Pre-CFD Contribution paid by Developer to City prior to such date upon which the E101 CFD is first levied on the Project Site. (v) City agrees that all Pre-CFD Contribution amounts shal l, upon payment by Developer, be deposited into a segregated account (“Pre-CFD Account”), shall not be comingled with other funds, and shall be used in accordance with subsection (e) of this Section 3.4. City shall, upon reasonable notice, give Developer and its agents access to inspect, examine, and copy City’s books and related documents for the purposes of auditing the Pre-CFD Account and verifying City’s compliance with the terms and conditions of this Section 3.4, which access shall also include access to City’s record keeping and accounting personnel. 3.5 Other Community Benefits. (a) Community Benefit Grant Program. During the Term, Developer shall establish and implement a community benefit grant program, pursuant to which Developer shall make individual community benefit grants directly to a variety of community organizations, community events, or community programs operating or occurring within the City’s jurisdictional boundary, provided that the combined total of such community benefit grants shall not exceed one hundred thousand dollars and zero cents ($100,000.00) on an annual basis. During the first quarter 3634258.1 15 of each of year of the Term, but no sooner that the second year of the Term, Developer shall submit to the City a report summarizing the amount and purpose of each community benefit grant allocated during the previous year of the Term. The grant program required by this Section 3.5 shall include a mechanism whereby the City can submit grant recipient recommendations for Developer’s consideration. The grant program required by this Section 3.5 shall be provided by Developer in addition to Developer’s existing “Genentech Goes To Town” program. (b) Public Open Space. Developer shall provide approximately eight tenths of one acre (0.8-acre) of contiguous, publically accessible open space on the Project Site at a location to be determined by Developer, in its sole discretion, provided that such open space shall be located within one of the two eligible locations depicted on the attached Exhibit E. The required open space shall be improved with active and passive recreation amenities (as determined by Developer in collaboration with the City at the time of final design), the total cost of which improvements shall be Developer’s sole obligation and in no event shall exceed a total estimated value of ten million dollars and zero cents ($10,000,000.00). If required by applicable law, the required active and passive recreational amenity improvements shall be subject to the review and approval of the San Francisco Bay Conservation and Development Commission. Notwithstanding any provision of this Agreement to the contrary, in no event shall Developer be required to provide publicly accessible open space on any portion of the Project Site that is designated as a “Building Opportunity” site on Figure 2-4 of the Master Plan Update. Developer shall have completed the planning and design of the open space and recreational amenities required by this Section 3.5(b) on or before either the fifth (5th) anniversary of this Agreement following the Effective Date, or the issuance of the first certificate of occupancy exceeding fifty thousand (50,000) square feet of new development within the Project Site’s Lower Campus Building B4 opportunity site (as designated in the Master Plan Update), whichever occurs first . Construction of the open space and related recreational amenities shall commence no later than sixth (6th) anniversary of the Agreement following the Effective Date, or within twelve (12) months following the issuance of the first certificate of occupancy exceeding fifty thousand (50,000) square feet of new development within the Project Site’s Lower Campus Building BR opportunity site, whichever occurs first, and such construction shall thereafter be diligently pursued to completion. (c) Public Art. During the Term, Developer shall install at strategic locations public artworks on the Project Site (including but not limited to the entrances of buildings constructed as part of the Project) in accordance with this Section 3.5(c). (i) The public artworks required by this Section 3.5(c) may be any manner of art conceived and executed in any artistic discipline or medium and shall be owned in fee by Developer or its successors in interest; (ii) Upon installation, the public artworks required by this Section 3.5(c) shall be visually accessible to the public from public streets, trails, or public parks; (iii) The public artworks required by this Section 3.5(c) shall be commissioned and paid for by Developer, and the aesthetic quality and final installat ion location of such artworks shall be subject to consideration by the City’s Cultural Arts Commission for recommendation to the City’s Director of Economic and Community Development for approval, 3634258.1 16 provided that the City shall have no approval authority regarding such artworks’ subject matter, media, or artistic discipline. (iv) The total cost of Developer’s obligation under this Section 3.5(c) shall be limited to one dollar ($1.00) per square foot of total office, lab (research & development), and manufacturing building space newly constructed as part the Project, which funds may be expended by Developer to pay its direct and indirect cost of commissioning, purchasing, and installing the public artworks required by this Section 3.5(c), including any reasonable art consultation costs, provided that reasonably detailed records of such Developer costs and expenditures shall be maintained by Developer during the Term and made available to City within fourteen (14) days following City’s written request thereof; (v) The public artworks required by this Section 3.5(c) may be installed in phases, as the Project is developed over time, provided that Developer shall install at least one (1) piece of public artwork for each approximately two hundred thousand (200,000) square feet of total office, lab (research & development), and manufacturing building space newly constructed as part the Project, with such installation(s) to occur on or before City’s issuance of the final certificate of occupancy for each such two hundred thousand (200,000) square foot phase. Developer shall ensure that its total cost of all the public artworks installed for each such phase shall be equal to approximately two hundred thousand dollars ($200,000), provided that in no event shall Developer be obligated to pay more than one dollar ($1.00) per square foot of total office, lab (research & development), and manufacturing building space newly constructed as part the Project. (vi) Notwithstanding any provision of this Agreement to the contrary except as provided in this subpart (vi), in the event that the City adopts a development impact fee, in-lieu fee, or similar mechanism, following the Effective Date, the purpose or effect of which is to generate funds to pay for public art (“Public Art Fee”), then the Project shall become subject to such Public Art Fee, and Developer shall have no obligations under subparts (i) through (v) of this Section 3.5(c), provided that such Public Art Fee is applied on a citywide basis, or is applied throughout the City’s East of 101 Specific Plan planning area, and further provided that the Public Art Fee for the Project shall be an amount equivalent to one dollar ($1.00) per square foot of total office, lab (research & development), and manufacturing building space authorized by the Project Approvals. In the event the Project becomes subject to a Public Art Fee pursuant to this Section 3.5(c)(vi), and if that Public Art Fee is an in-lieu fee, then Developer shall pay a fee as described in this Section 3.5(c)(vi) rather than provide public art on site. In the event the Project becomes subject to a Public Art Fee pursuant to this Section 3.5(c)(vi), Developer shall have no obligations under subparts (i) through (v) of this Section 3.5(c). The City may fund public art proposed to be located anywhere within the City of South San Francisco using Public Art Fee amounts paid by Developer pursuant to this Section 3.5(c)(vi), provided such funding otherwise complies with the ordinance or resolution adopting such Public Art Fee. 3.6 Other Developer Obligations. (a) Mitigation Measures. Developer shall comply with the Mitigation Measures identified and approved in the EIR for the Project, in accordance with CEQA or other law as identified and as set forth on the MMRP. 3634258.1 17 (b) Utility Relocation and Replacement. Developer, at is sole cost, shall be responsible for all on-site work to relocate and upgrade required utilities and infrastructure on the Property. ARTICLE 4 OBLIGATIONS OF CITY 4.1 Obligations of City Generally. The Parties acknowledge and agree that Developer’s agreement to perform and abide by its covenants and obligations set forth in this Agreement, including Developer’s decision to site the Project in the City, is a material consideration for City’s agreement to perform and abide by the long term covenants and obligations of City, as set forth herein. 4.2 Protection of Vested Rights. City acknowledges that the vested rights provided to Developer by this Agreement might prevent some City Law from applying to the Project Site or prevailing over all or any part of this Agreement. City further acknowledges that Developer’s vested rights to Develop the Project site include the rights provided by the Project Approvals or the Subsequent Approvals, which may not be diminished by the enactment or adoption of City Law. City shall cooperate with Developer and shall consider undertaking actions mutually agreed by the Parties as necessary to ensure that this Agreement remains in full force and effect. 4.3 Availability of Public Services. To the maximum extent permitted by law and consistent with its authority, City shall assist Developer in reserving such capacity for sewer and water services as may be necessary to serve the Project. 4.4 Developer’s Right to Rebuild. City agrees that Developer may renovate or rebuild all or any part of the Project within the Term should it become necessary due to damage or destruction. Any such renovation or rebuilding shall be subject to the square footage and height limitations vested by this Agreement, and shall comply with the Project Approvals, the building codes existing at the time of such rebuilding or reconstruction, and the requirements of CEQA. 4.5 Expedited Plan Check Process. The City agrees to provide an expedited plan check process for the approval of Project drawings consistent with its existing practices for expedited plan checks. Developer agrees to pay the City’s established fees for expedited plan check services. The City shall use reasonable efforts to provide such plan checks within 3 weeks of a submittal that meets the requirements of Section 5.2. The City acknowledges that the City’s timely processing of Subsequent Approvals and plan checks is essential to the successful and complete Deve lopment of the Project. 4.6 Project Coordination. The City shall perform those obligations of the City set forth in this Agreement, which the City acknowledges are essential for the Developer to perfor m its obligations in Article 3. The City and Developer shall use good faith and diligent efforts to communicate, cooperate and coordinate with each other during Development of the Project. 3634258.1 18 ARTICLE 5 COOPERATION - IMPLEMENTATION 5.1 Processing Application for Subsequent Approvals. By approving the Project Approvals, City has made a final policy decision that the Project is in the best interests of the public health, safety and general welfare. Accordingly, City shall, to the maximum extent permitted by law, not use its discretionary authority in considering any application for a Subsequent Approval to revisit, frustrate, or change the policy decisions or material terms reflected by the Project Approvals or otherwise to prevent or delay Development of the Project. Instead, the Subsequent Approvals shall be deemed to be tools to implement those final policy decisions. 5.2 Timely Submittals By Developer. Developer acknowledges that City cannot expedite processing Subsequent Approvals until Developer submits complete applications on a timely basis. Developer shall use its best efforts to (i) provide to City in a timely manner any and all documents, applications, plans, and other information necessary for City to carry out its obligations hereunder; and (ii) cause Developer’s planners, engineers, and all other consultants to provide to City in a timely manner all such documents, applications, plans and other necessary required materials as set forth in the Applicable Law. It is the express intent of Developer and City to cooperate and diligently work to obtain any and all Subsequent Approvals. 5.3 Timely Processing By City. Upon submission by Developer of all appropriate applications and processing fees for any Subsequent Approval, City shall, to the maximum extent permitted by law, promptly and diligently commence and complete all steps necessary to act on the Subsequent Approval application including, without limitation: (i) providing at Developer’s expense and subject to Developer’s request and prior approval, reasonable overtime staff assistance and/or staff consultants for planning and processing of each Subsequent Approval application; (ii) if legally required, providing notice and holding public hearings; and (iii) acting on any such Subsequent Approval application. City shall ensure that adequate staff is available, and shall authorize overtime staff assistance as may be necessary, to timely process any such Subsequent Approval application. 5.4 Denial of Subsequent Approval Application. The City may deny an application for a Subsequent Approval only if such application does not comply with this Agreement or Applicable Law (as defined below) or with any state or federal law, regulations, plans, or policies as set forth in Section 6.10. 5.5 Other Government Permits. At Developer’s sole discretion and in accordance with Developer’s construction schedule, Developer shall apply for such other permits and approvals as may be required by other governmental or quasi-governmental entities in connection with the Development of, or the provision of services to, the Project. City, at Developer’s expense, shall cooperate with Developer in its efforts to obtain such permits and approvals and shall, from time to time, at the request of Developer, use its reasonable efforts to assist Developer to ensure the timely availability of such permits and approvals. 3634258.1 19 5.6 Assessment Districts or Other Funding Mechanisms. (a) Existing Fees. As set forth in Section 3.2(b), above, t he Parties understand and agree that as of the Effective Date the fees, exactions, and payments listed in Exhibit C are the only City fees and exactions that apply to the Project, subject to the credits and exemptions set forth in Article 3 of this Agreement or identified on Exhibit C and subject to the future adoption of new fees as set forth in Section 5.6(b) below. Except for those fees and exactions listed in Exhibit C, City is unaware of any pending efforts to initiate, or consider applications for new or increased fees, exactions, or assessments covering the Project Site, or any portion thereof that would apply to the Project prior to the Effective Date. (b) Future Fees, Taxes, and Assessments. City understands that long term assurances by City concerning fees, taxes and assessments are a material consideration for Developer agreeing to enter this Agreement and to pay long term fees, taxes and assessments described in this Agreement. Subject to Section 3.5(c)(vi) of this Agreement, the Project shall be subject to future development impact fees that are duly adopted by the City following the Effective Date (each a “Future Fee”), provided that any such Future Fee is also imposed on all new development and land use projects on a citywide (or East of 101 Area Plan-wide) basis, reserving to City the discretion to establish any Future Fee for different land use categories or zoning designations in varying amounts. Each applicable Future Fee shall be paid at such time as provided by the applicable Future Fee enabling ordinance or resolution, and the amount paid for a particular Future Fee shall be the amount owed, based on the calculation or formula in place at the time payment is due. City shall retain the ability to initiate or process applications for the formation of new assessment districts or tax districts or citywide assessments or taxes covering all or any portion of the Project Site. In the event an assessment district or tax district is lawfully formed to provide funding for services, improvements, maintenance, or facilities which are substantially the same as those services, improvements, maintenance, or facilities being funding by the fees or assessments to be paid by Developer under the Project Approvals or this Agreement, such fees or assessments to be paid by Developer shall be subject to reduction/credit in an amount equal to Developer’s new or increased assessment under the assessment district. Alternatively, the new assessment district shall reduce/credit Developer’s new assessment in an amount equal to such fees or assessments to be paid by Developer under the Project Approvals or this Agreement. Except as provided for in Section 3.4(e)(i) above, Developer retains, and this Agreement shall not restrict or limit, its right to oppose or challenge the formation or proposed adoption of any new assessment district, tax district increased assessment, Future Fee, Future Fee increase, or Development Fee increase. (c) Application of Fees Imposed by Outside Agencies. The City agrees to exempt Developer from any and all fees, including but not limited to, development impact fees, which other public agencies request the City to impose at City’s discretion on the Project or Project Site after the Effective Date through the expiration of the Term. Notwithstanding the previous sentence, in the event that another public agency requests that the City impose a fee, including a development impact fee on all new development and land use projects on a citywide (or East of 101 Area Plan-wide) basis, then any such fee duly adopted by the City shall apply to the Project. This Section 5.6(c) shall not prohibit the City from imposing on Developer any fee or obligation that is imposed by a regional agency in accordance with state or federal obligations implemented by the City in cooperation with such regional age ncy, or that is imposed by the State of California. 3634258.1 20 ARTICLE 6 STANDARDS, LAWS AND PROCEDURES GOVERNING THE PROJECT 6.1 Vested Right to Develop. Developer shall have a vested right to Develop the Project on the Project Site in accordance with the terms and conditions of this Agreement , the Project Approvals, the Subsequent Approvals (as and when they are issued), and Applicable Law, provided, however, that this Agreement shall not supersede, diminish, or impinge upon vested rights secured pursuant to other Applicable Laws, including without limitation, vested rights secured in connection with a vesting tentative subdivision map pursuant to the California Subdivision Map Act (Gov’t. Code §§ 66410 et seq.). Nothing in this section shall be deemed to eliminate or diminish the requirement of Developer to obtain any required Subsequent Approvals, or to eliminate or diminish Developer’s right to have its applications for any Subsequent Approval timely processed by City in accordance with this Agreement and Applicable Law. 6.2 Permitted Uses Vested by This Agreement. The vested permitted uses of the Project Site; the vested density and intensity of use of the Project Site; the vested maximum height, bulk, and size of proposed buildings; vested provisions for reservation or dedication of land for public purposes and the location of public improvements; the general location of public utilities; and other vested terms and conditions of Development applicable to the Project, shall be as set forth in the vested Project Approvals and, as and when they are issued (but not in limitation of any right to Develop ment as set forth in the Project Approvals) the vested Subsequent Approvals. The vested permitted uses for the Project shall include those uses listed as “permitted” in the Project Approvals, as they may be amended from time to time in accordance with this Agreement . 6.3 Applicable Law. The rules, regulations, official policies, standards and specifications applicable to the Project (the “Applicable Law”) shall be those set forth in this Agreement and the Project Approvals, and, with respect to matters not addressed by this Agreement or the Project Approvals, those rules, regulations, official policies, standards and specifications (including City ordinances and resolutions) governing permitted uses, building locations, timing of construction, densities, design, heights, fees, exactions, and taxes in force and effect on the Effective Date of this Agreement. 6.4 Uniform Codes. City may apply to the Project Site, at any time during the Term, then current Uniform Building Code and other uniform construction codes, and City’s then current design and construction standards for road and storm drain facilities, provided any such uniform code or standard has been adopted and uniformly applied by City on a citywide basis and provided that no such code or standard is adopted for the purpose of preventing or otherwise limiting Development of all or any part of the Project. 6.5 No Conflicting Enactments. Developer’s vested right to Develop the Project shall not be diminished by City approval (whether by action of the City Council or by initiative, referendum or other means) of any ordinance, resolution, rule, regulation, standard, directive, condition or other measure (each individually, a “City Law”) that is in conflict with Applicable Law or this Agreement or that reduces the rights or assurances provided by this Agreement. Without limiting the generality of the foregoing, any City Law shall be deemed to conflict with Applicable Law or this Agreement or reduce the Development rights provided hereby if it would 3634258.1 21 accomplish any of the following results, either by specific reference to the Project or as part of a general enactment which applies to or affects the Project: (a) Change any land use designation or permitted use of the Project Site; (b) Limit or control the availability of public utilities, services, or facilities, or any privileges or rights to public utilities, services, or facilities (for example, water rights, water connections or sewage capacity rights, sewer connections, etc.) for the Project, provided that Developer has complied with all applicable requirements for receiving or using or receiving public utilities, services, or facilities; (c) Limit or control the location of buildings, structures, grading, or other improvements of the Project in a manner that is inconsistent with or more restrictive than the limitations included in the Project Approvals or the Subsequent Approvals (as and when they are issued); (d) Limit or control the rate, timing, phasing, or sequencing of the Development of all or any part of the Project in any manner; (e) Result in Developer having to substantially delay Development of the Project or require the issuance of additional permits or approvals by the City other than those required by Applicable Law; (f) Establish, enact, increase, or impose against the Project or Project Site any fees, taxes (including without limitation general, special and excise taxes but excluding any increased local (city or county) sales tax or increases city business license tax), assessments, liens or other monetary obligations (including generating demolition permit fees, encroachment permit and grading permit fees) other than those specifically permitted by this Agree ment or other connection fees imposed by third party utilities; (g) Impose against the Project any condition, dedication or other exaction not specifically authorized by Applicable Law; or (h) Limit the processing or procuring of applications and approvals of Subsequent Approvals. 6.6 Initiatives and Referenda; Other City Actions Related to Project. (a) If any City Law is enacted or imposed by initiative or referendum, or by the City Council directly or indirectly in connection with any proposed initiative or referendum, which City Law would conflict with Applicable Law or this Agreement or reduce the Development rights provided by this Agreement, such Law shall only apply to the Project to the extent it would not diminish Developer’s vested rights to Develop the Project. (b) Except as authorized in Section 6.10, without limiting the generality of any of the foregoing, no moratorium or other limitation (whether relating to the rate, timing, phasing or sequencing of Development) affecting subdivision maps, building permits or other entitlements 3634258.1 22 to use that are approved or to be approved, issued or granted within the City, or portions of the City, shall diminish Developer’s vested rights to Develop the Project. (c) To the maximum extent permitted by law, City shall cooperate with Developer and shall undertake such actions as may be necessary to ensure this Agreement remains in full force and effect. (d) Developer reserves the right to challenge in court any City Law that would reduce the Development rights provided by this Agreement. 6.7 Environmental Mitigation. The Parties understand that the EIR and MMRP were intended to be used in connection with each of the Project Approvals and Subsequent Approvals needed for the Project. Consistent with the CEQA policies and requirements applicable to the EIR, City agrees to use the EIR and MMRP in connection with the processing of any Subsequent Approval to the maximum extent allowed by law and not to impose on the Project any mitigation measures other than those specifically imposed by the Project Approvals , EIR, and MMRP, or specifically required by CEQA or other Applicable Law, except as provided for in this Section 6.7. The Parties agree that this Agreement shall not limit or expand the operation or scope of CEQA, including Public Resources Code section 21166 and California Code of Regulations, title 14, section 15162, with respect to City’s consideration of any Subsequent Approval. Consistent with CEQA, a future, additional CEQA document may be prepared for any Subsequent Approval only to the extent required by Public Resources Code section 21166 and California Code of Regulations, title 14, section 15162, unless otherwise requested in writing by Developer. Developer specifically acknowledges and agrees that, under Public Resources Code section 21166 and California Code of Regulations, title 14, section 15162, City as lead agency is responsible and retains sole discretion to determine whether an additional CEQA document must be prepared, which discretion City agrees it shall not exercise unreasonably or delay. 6.8 Future Legislative Actions. (a) In the event that, following the Effective Date, City amends or otherwise updates the General Plan in effect on the Effective Date in a manner that would increase or expand the permitted uses, the maximum floor area ratio (or any other land use density or intensity metric), or the maximum height, bulk, and size of proposed buildings applicable to any land area that the land use element or land use map of the General Plan in effect on the Effective Date designates as “Business Technology Park” and which is located within the planning boundary of the East of 101 Area in effect on the Effective Date, the City shall also consider making conforming General Plan amendments and updates applicable to that land area that comprises the Project Site and which is designated as “Business Technology Park” under the General Plan in effect on the Effective Date. (b) In the event that, following the Effective Date, City revises, modifies, updates, or amends the land use designation(s) of the General Plan in effect on the Effective Date, or of the East of 101 Area Plan in effect on the Effective Date, that are applicable to the Project Site, or the zoning designation(s) applicable to the Project Site and in effect on the Effective Date, such updates or amendments shall not diminish Developer’s vested rights to Develop the Project or the Project Site , but no provision of this Agreement shall limit Developer’s right to apply for any land use entitlement(s) for the Project Site that are consistent with, or authorized by, such 3634258.1 23 update(s) or amendment(s). Developer acknowledges, however, that the amended or updated policies identified in the immediately preceding sentence might include requirements for permitted development that would be in addition to any obligations of Developer under this Agreement, and that those additional requirements would apply to Developer if Developer applies for any land use entitlement(s) for the Project Site that are consistent with, or authorized by, any revision, modification, update, or amendment contemplated by this subsection (b) of Section 6.8 of this Agreement. No provision of this Agreement shall limit or restrain in any way Developer’s full participation in any and all public processes undertaken by the City that are in any way related to revisions, modifications, amendments, or updates to the General Plan, the East of 101 Area Plan, or the City of South San Francisco Municipal Code. (c) Developer acknowledges that, if it applies for any land use entitlement(s) for the Project Site that are consistent with, or authorized by, any revision, modification, update, or amendment contemplated by subsection (b) of this Section 6.8 of this Agreement, and that would allow development of the subject parcel(s) in a manner that is inconsistent with, or not authorized by, the Project Approvals, then City may be required to conduct additional CEQA review with respect to such application in accordance with Section 6.7 of this Agreement, and, if such application is finally approved by the City and becomes effective, such approval shall automatically be vested under this Agreement only to the extent such approval is consistent with, or authorized by, the Project Approvals . By way of example, if (following any required CEQA compliance) such effective approval were to authorize Development of a structure with a floor area ratio of 2.0, but the Project Approvals would only authorize Development of a structure with a floor area ratio of 1.0, then Developer would automatically have the vested right to Develop said structure with a floor area ratio of 1.0, and would automatically have the non-vested right to Develop that same structure with a floor area ratio of 2.0 (unless, following such approval, this Agreement is amended to vest Developer’s right to Develop such structure with a floor area ratio of 2.0). (d) City agrees that, if Developer applies for any land use entitlement(s) for the Project Site that are inconsistent with, or not authorized by, the Project Approvals, then: (i) such event shall not be a basis for amending or revisiting the terms of the Agreement, unless Developer also applies for an amendment of this Agreement pursuant to subsection (b) of Section 7.2 of this Agreement (i.e., a non-Administrative Agreement Amendment), and shall no t be a basis for imposing new exactions, mitigation requirements, conditions of approval, or any other requirement of, or precondition to, Developer’s exercise of its Development r ights vested under this Agreement; and (ii) the only exactions, mitigation requir ements, or conditions of approval City may impose on such land use entitlement shall be limited to those exactions, mitigation requirements, or conditions of approval authorized under federal, state, or local laws in effect at the time such application is deemed complete, and shall only be imposed with respect to those uses, densities, intensities, and other Development standards applicable to the subject parcel(s) that are inconsistent with, or not authorized by, the Project Approvals. 3634258.1 24 6.9 Life of Subdivision Maps, Development Approvals, and Permits. The term of any subdivision map or any other map, permit, rezoning, or other land use entitlement approved as a Project Approval or Subsequent Approval shall automatically be extended for the longer of the Term (including any extensions) or the term otherwise applicable to such Project Approval or Subsequent Approval if this Agreement is no longer in effect. The Term of this Agreement and the term of any subdivision map or other Project Approval or Subsequent Approval shall not include any period of time during which a Development moratorium (including, but not limited to, a water or sewer moratorium or water and sewer moratorium) or the actions of other public agencies that regulate land use, Development or the provision of services to the land, prevents, prohibits or delays the construction of the Project or a lawsuit involving any such Development approvals or permits is pending. 6.10 State and Federal Law. As provided in Government Code section 65869.5, this Agreement shall not preclude the application to the Project of changes in laws, regulations, plans or policies, to the extent that such changes are specifically mandated and required by changes in state or federal laws or regulations. Not in limitation of the foregoing, nothing in this Agreement shall preclude City from imposing on Developer any fee specifically mandated and required by state or federal laws and regulations. In the event of any changes required by state or federal laws or regulations, the Developer and City shall meet and confer in good faith to determine what, if any, modifications to this Agreement and/or the Project Approvals would allow the Project and City to comply with such state or federal law or regulation while preserving to the maximum extent feasible the spirit and intent of the Parties in this Agreement and the Project Approvals. 6.11 Prevailing Wage. Developer and its contractors and agents shall comply with California Labor Code Section 1720 et seq., and regulations adopted pursuant thereto, to the extent applicable to the Project (“Prevailing Wage Laws”), and shall be responsible for carrying out the applicable requirements of such law and regulations. Developer shall submit to City a plan for monitoring payment of prevailing wages and shall implement such plan at Developer’s expense. To the fullest extent permitted by law, Developer shall indemnify, defend (with counsel approved by City, which approval shall not be unreasonably withheld) and hold the City, and their respective elected and appointed officers, officials, employees, agents, consultants, and contractors (collectively, the “Indemnitees”) harmless from and against all liability, loss, cost, expense (including without limitation attorneys’ fees and costs of litigation), claim, demand, action, suit, judicial or administrative proceeding, penalty, deficiency, fine, order, and damage (all of the foregoing collectively “Claims”) which directly or indirectly, in whole or in part, are caused by, arise in connection with, result from, relate to, or are alleged to be caused by, arise in connection with, or relate to, the payment or requirement of payment of prevailing wages (including without limitation, all claims that may be made by contractors, subcontractors or other third party claimants pursuant to Labor Code Sections 1726 and 1781), the failure to comply with any state or federal labor laws, regulations or standards in connection with this Agreement, including but not limited to the Prevailing Wage Laws, or any act or omission of Developer related to this Agreement with respect to the payment or requirement of payment of prevailing wages, whether or not any insurance policies shall have been determined to be applicable to any such Claims. It is further agreed that the City does not and shall not waive any rights against Developer which it may have by reason of this indemnity and hold harmless agreement because of the acceptance by the City, or Developer’s deposit with the City of any of the insurance policies described in this Agree ment. 3634258.1 25 The provisions of this Section 6.11 shall survive the expiration or earlier termination of this Agreement and the issuance of a Certificate of Completion for the Project. Developer’s indemnification obligations set forth in this Section 6.11 shall not apply to Claims arising solely from the gross negligence or willful misconduct of the Indemnitees. 6.12 Timing and Review of Project Construction and Completion. Except as expressly provided in the Project Approvals, Developer shall have the vested right to Develop the Project in such order, at such rate and at such times as the Developer deems appropriate in the exercise of its sole business judgment. In particular, and not in any limitation of any of the foregoing, since the California Supreme Court held in Pardee Construction Co. v. City of Camarillo, 37 Cal.3d 465 (1984), that the failure of the parties therein to consider, and expressly provide for, the timing of Development resulted in a later-adopted initiative restricting the timing of Development to prevail over such Parties' agreement, it is the desire of the Parties hereto to avoid that result. The Parties acknowledge that, except as otherwise provided for in the Project Approvals, Developer shall have the vested right to Develop the Projec t on the Pro ject Site in such order and at such rate and at such times as the Developer deems appropriate in the exercise of its business judgment . ARTICLE 7 AMENDMENT 7.1 Project Amendments. To the extent permitted by state and federal law, any Project Approval or Subsequent Approval may, from time to time, be amended or modified in the following manner: (a) Administrative Project Amendments. Upon the written request of Developer for an amendment or modification to a Project Approval or Subsequent Approval, the City's Chief Planner or his/her designee shall determine: (i) whether the requested amendment or modification is minor when considered in light of the Project as a whole; and (ii) whether the requested amendment or modification is consistent with this Agreement and Applicable Law. If the Chief Planner or his/her designee finds that the proposed amendment or modification is minor, consistent with this Agreement and Applicable Law, and will result in no new significant impacts not addressed and mitigated in the EIR, the amendment shall be determined to be an “Administrative Project Amendment” and the Chief Planner or his/her designee may, except to the extent otherwise required by law, approve the Administrative Project Amendment without notice and public hearing. Without limiting the generality of the foregoing, lot line adjustments, minor alterations in vehicle circulation patterns or vehicle access points, location of parking stalls on the site, number of required parking stalls if City development standards allow, substitutions of comparable landscaping for any landscaping shown on any final development plan or landscape plan, variations in the location of structures that do not substantially alter the design concepts of the Project, location or installation of utilities and other infrastructure connections or facilities that do not substantially alter the design concepts o f the Project, and minor adjustments to the Project Site diagram or Project Site legal description shall be treated as Administrative Project Amendments. Any requested amendment seeking modification of or deviation from the performance or development standards contained in the Municipal Code and which would otherwise require a discretionary approval by the City Council, Planning Commission, or other formal approval body shall not be treated as an Administrative Project Amendment. 3634258.1 26 (b) Non-Administrative Project Amendments. Any request by Developer for an amendment or modification to a Project Approval or Subsequent Approval which is determined not to be an Administrative Project Amendment as set forth above shall be subject to review, consideration and action pursuant to the Applicable Law and this Agreement. 7.2 Amendment of this Agreement. This Agreement may be amended from time to time, in whole or in part, by mutual written consent of the Parties hereto or their successors in interest, as follows: (a) Administrative Agreement Amendments. Any amendment to this Agreement which does not substantially affect (i) the Term, (ii) permitted uses of the Project Site, (iii) provisions for the reservation or dedication of land, (iv) conditions, terms, restrictions, or requirements for subsequent discretionary actions, (v) the density or intensity of use of the Project Site or the maximum height or size of proposed buildings or (vi) monetary contributions by Developer, shall be considered an “Administrative Agreement Amendment” and shall not, except to the extent otherwise required by law, require notice or public hearing before the parties may execute an amendment hereto . Administrative Agreement Amendments may be approved by the City Manager or, in the sole discretion of the City Manager, the City Manager may refer any proposed Administrative Agreement Amendment to the City Council for consideration and approval or denial. (b) Other Agreement Amendments. Any amendment to this Agreement other than an Administrative Agreement Amendment shall be subject to recommendation by the Planning Commission (by advisory resolution) and approval by the City Council (by ordinance) following a duly noticed public hearing before the Planning Commission and City Council, consistent with Government Code sections 65867 and 65867.5. (c) Amendment Exemptions. No amendment of a Project Approval or Subsequent Approval, or a Subsequent Approval shall require an amendment to this Agreement. Instead, any such matter automatically shall be deemed to be incorporated into the Project and vested under this Agreement. ARTICLE 8 ASSIGNMENT, TRANSFER AND NOTICE 8.1 Assignment and Transfer. (a) Developer may transfer or assign all or any portion of its interests, rights, or obligations under the Agreement and the Project approvals to third parties acquiring an interest or estate in the Project or the Project Site or any portions thereof including, without limitation, purchasers or lessees of lots, parcels, or facilities. Prior to any such transfer or assignment, Developer will seek City’s prior written consent t hereof, which consent will not be unreasonably withheld or delayed. City may refuse to give consent only if, in light of the proposed transferee’s reputation and financial resources, such transferee would not, in City’s reasonable opinion, be able to perform the obligations proposed to be assumed by such transferee. To assist the City Manager in determining whether to provide consent to a transfer or assignment, the City Manager may request from the transferee (directly or through Developer) reasonable documentation of 3634258.1 27 transferee’s understanding of and ability and plan to perform the obligations proposed to be assumed by transferee, including without limitation obligations specifically identified in this Agreement, the Project Approvals, the EIR and MMRP, the General Plan, the TDM Plan, and the East of 101Area Plan. To assist the City Manager in determining whether to consent to a transfer or assignment, the City Manager may also require one or more representatives of the transferee to meet in person to demonstrate to the City Manager’s reasonable satisfaction that the transferee understands and intends and has the ability to perform the obligations intended to be assumed, including without limitation the obligations identified in the immediately preceding sentence. Such determination will be made by the City Manager and will be appealable by Developer to the City Council. For any transfer of all of the Property, the Developer and assignee shall enter into an assignment and assumption agreement in substantially the form set forth in Exhibit F. Notwithstanding any other provision of this Agreement to the contrary, each of following Transfers are permitted and shall not require City consent under this Section 8.1: (i) Any transfer for financing purposes to secure the funds necessary for construction and/or permanent financing of the Project; (ii) An assignment of this Agreement to an Affiliate. (iii) Transfers of common area to a property owners association; (iv) Dedications and grants of easements and rights of way required in accordance with the Project Approvals; or (v) Any leasing activity. (b) For the purposes of this Section 8.1, “Affiliate” means an entity or person that is directly or indirectly controlling, controlled by, or under common control or management of or with Developer. For the purposes of this definition, “control” means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of an entity or a person, whether through the ownership of voting securities, by contract, or otherwise, and the terms “controlling” and “controlled” have the meanings correlative to the foregoing. ARTICLE 9 COOPERATION IN THE EVENT OF LEGAL CHALLENGE 9.1 Cooperation. In the event of any administrative, legal, or equitable action or other proceeding instituted by any person not a party to the Agreement challenging the validity of any provision of the Agreement , or any Project Approval or Subsequent Approval, the Parties will cooperate in defending such action or proceeding. City shall promptly (within five business days) notify Developer of any such action against City. If City fails promptly to notify Developer of any legal action against City or if City fails to cooperate in the defense, Developer will not thereafter be responsible for City’s defense. The Parties will use best efforts to select mutually agreeable legal counsel to defend such action, and Developer will pay compensation for such legal counsel (including City Attorney time and overhead for the defense of such action), but will exclude other City staff overhead costs and normal day-to-day business expenses incurred by City. Developer’s obligation to pay for legal counsel will extend to attorneys’ fees incurred on appeal. In the event 3634258.1 28 City and Developer are unable to select mutually agreeable legal counsel to defend such action or proceeding, each party may select its own legal counsel and Developer will pay its and the City’s attorneys’ fees and costs. Developer 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 or payable to any prevailing plaintiff/petitioner. 9.2 Reapproval. (a) If, as a result of any administrative, legal, or equitable action or other proceeding, all or any portion of the Agreement or the Project approvals are set aside or otherwise made ineffective by any judgment in such action or proceeding (“Judgment”), based on procedural, substantive or other deficiencies (“Deficiencies”), the Parties will use their respective best efforts to sustain and reenact or readopt the Agreement, and/or the Project approvals, that the Deficiencies related to, as follows, unless the Parties mutually agree in writing to act otherwise: (i) If any Judgment requires reconsideration or consideration by City of the Agreement or any Project approval, then the City will consider or reconsider that matter in a manner consistent with the intent of the Agreement and with Applicable Law. If any such Judgment invalidates or otherwise makes ineffective all or any portion of the Agreement or Project approval, then the Parties will cooperate and will cure any Deficiencies identified in the Judgment or upon which the Judgment is based in a manner consistent with the intent of the Agreement and with Applicable Law. City will then consider readopting or reenacting the Agreement, or the Project approval, or any portion thereof, to which the Deficiencies related. (ii) Acting in a manner consistent with the intent of the Agreement includes, but is not limited to, recognizing that the Parties intend that Developer may undertake and complete Develop ment of the Project as described in the Agreement, and adopting such ordinances, resolutions, and other enactments as are necessary to readopt or reenact all or any portion of the Agreement or Project approvals without contravening the Judgment. (b) The Parties agree that this Section 9.2 shall constitute a separate agreement entered into concurrently, and that if any other provision of this Agreement, or the Agreement as a whole, is invalidated, rendered null, or set aside by a court of competent jurisdiction, the Parties agree to be bound by the terms of this Section 9.2, which shall survive invalidation, nullification, or setting aside. ARTICLE 10 DEFAULT; REMEDIES; TERMINATION 10.1 Defaults. Any failure by either Party to perform any term or provision of the Agreement, which failure continues uncured for a period of thirty (30) days following written notice of such failure from the other Party (unless such period is extended by mutual written consent), will constitute a default under the Agreement. Any notice given will specify the nature of the alleged failure and, where appropriate, the manner in which said failure satisfactorily may be cured. If the nature of the alleged failure is such that it cannot reasonably be cured within such 30-day period, then the commencement of the cure within such time period, and the diligent prosecution to completion of the cure thereafter, will be deemed to be a cure within such 30-day 3634258.1 29 period. Upon the occurrence of a default under the Agreement, the non-defaulting party may institute legal proceedings to enforce the terms of the Agreement or, in the event of a material default, terminate the Agreement. If the default is cured, then no default will exist and the noticing party shall t ake no further action. 10.2 Termination. If City elects to consider terminating the Agreement due to a material default of Developer, then City will give a notice of intent to terminate the Agreement and the matter will be scheduled for consideration and review by the City Council at a duly noticed and conducted public hearing. Developer will have the right to offer written and oral evidence prior to or at the time of said public hearings. If the City Council determines that a material default has occurred and is continuing, and elects to terminate the Agreement, City will give written notice of termination of the Agreement to Developer by certified mail and the Agreement will thereby be terminated sixty (60) days thereafter. 10.3 Enforced Delay; Extension of Time of Performance. Subject to the limitations set forth below, performance by either party hereunder shall not be deemed to be in default, and all performance and other dates specified in this Agreement shall be extended, where delays are due to: war; insurrection; strikes and labor disputes; lockouts; riots; floods; earthquakes; fires; casualties; acts of God; acts of the public enemy; terrorism; epidemics; quarantine restrictions; freight embargoes; governmental restrictions or priority; litigation and arbitration, including court delays; legal challenges to this Agreement, the Project Approvals, Subsequent Approvals, or any other approval required for the Project or any initiatives or referenda regarding the same; environmental conditions that have not been previously disclosed or discovered or that could not have been discovered with reasonable diligence that delays the construction or Development of the Property or any portion thereof; unusually severe weather but only to the extent that such weather or its effects (including, without limitation, dry out time) result in delays that cumulatively exceed thirty (30) days for every winter season occurring after commencement of construction of the Project; acts or omissions of the other party; or acts or failures to act of any public or governmental agency or entity (except that acts or failures to act of City shall not excuse performance by City); moratorium; or a Severe Economic Recession (each a “Force Majeure Delay”). An extension of time for any such cause shall be for the period of the enforced delay and shall commence to run from the time of the commencement of the cause, if Notice by the party claiming such extension is sent to the other party within sixty (60) days of the commencement of the cause. If Notice is sent after such sixty (60) day period, then the extension shall commence to run no sooner than sixty (60) days prior to the giving of such Notice. Times of performance under this Agreement may also be extended in writing by the mutual agreement of City and Developer. Developer’s inability or failure to obtain financing or otherwise timely satisfy shall not be deemed to be a cause outside the reasonable control of the Developer and shall not be the basis for an excused delay unless such inability, failure or delay is a direct result of a Severe Economic Recession. “Severe Economic Recession” means a decline in the monetary value of all finished goods and services produced in the United States, as measured by initial quarterly estimates of United States Gross Domestic Product (“GDP”) published by the United States Department of Commerce Bureau of Economic Analysis (and not subsequent monthly revisions), lasting more than four (4) consecutive calendar quarters. Any quarter of flat or positive GDP growth shall end the period of such Severe Economic Recession 3634258.1 30 10.4 Legal Action. Either Party may institute legal action to cure, correct, or remedy any default, enforce any covenant or agreement in the Agreement, enjoin any threatened or attempted violation thereof, and enforce by specific performance or declaratory relief the obligations and rights of the Parties thereto. Except as provided in Section 10.1, the sole and exclusive remedies for any default or violation of the Agreement will be specific performance or declaratory relief. In any proceeding brought to enforce the Agreement, the prevailing Party will be entitled to recover from the unsuccessful Party all costs, expenses and reasonable attorneys ’ fees incurred by the prevailing party in the enforcement proceeding. 10.5 Periodic Review. (a) Conducting the Periodic Review. Throughout the Term, at least once every twelve (12) months following the Effective Date of this Agreement, City shall review the extent of good-faith compliance by Developer with the terms of this Agreement. This review (“Periodic Review”) shall be conducted by the Chief Planner or his/her designee and shall be limited in scope to compliance with the terms of this Agreement pursuant to Government Code section 65865.1. At least ten (10) days prior to the Periodic Review, and in the manner prescribed in Section 11.9 of this Agreement, City shall deposit in the mail or transmit electronically to Developer a copy of any staff report and documents to be relied upon in conducting the Periodic Review and, to the extent practical, related exhibits concerning Developer’s performance hereunder. (b) Developer Submission of Periodic Review Report. Annually commencing one year from the Effective Date and continuing through termination of this Agreement, Developer shall submit a report to the Chief Planner stating the Developer’s good faith compliance with terms of the Agreement. (c) Good Faith Compliance Review. During the Periodic Review, the Chief Planner shall set a meeting to consider the Developer’s good-faith compliance with the terms of this Agreement. Developer shall be permitted an opportunity to respond to City’s evaluation of Developer’s performance, either orally at the meeting or in a supplemental written statement, at Developer’s election. Such response shall be made to the Chief Planner. At the conclusion of the Periodic Review, the Chief Planner shall make written findings and determinations, on the basis of substantial evidence, as to whether or not Developer has complied in good faith with the terms and conditions of this Agreement. The decision of the Chief Planner shall be appealable to the City Council. If the Chief Planner finds and determines that Developer has not complied with such terms and conditions, the Chief Planner may recommend to the City Council that it terminate or modify this Agreement by giving notice of its intention to do so, in the manner set forth in Government Code sections 65867 and 65868. The costs incurred by City in connection with the Periodic Review process described herein shall be borne by Developer. (d) Failure to Properly Conduct Periodic Review. If City fails, during any calendar year, to either: (i) conduct the Periodic Review or (ii) notify Developer in writing of City’s determination, pursuant to a Periodic Review, as to Developer’s compliance with the terms of this Agreement and such failure remains uncured as of December 31 of any year during the Term, such failu re shall be conclusively deemed an approval by City of Developer’s compliance with the terms of this Agreement for the period of time since the last Periodic Review. 3634258.1 31 (e) Written Notice of Compliance. With respect to any year for which Developer has been determined or deemed to have complied with this Agreement, City shall, within thirty (30) days following request by Developer, execute and deliver to Developer (or to any party requested by Developer) a written “Notice of Compliance,” in recordable form, duly executed and acknowledged by City, that certifies: (i) The Agreement is unmodified and in full force and effect, or if there have been modifications hereto, that this Agreement is in full force and effect as modified and stating the date and nature of such modifications; (ii) That there are no current uncured defaults under this Agreement or specifying the dates and nature of any such default; (iii) Any other information reasonably requested by Developer. The City’s failure to deliver to Developer such a Notice of Compliance within such time shall constitute a conclusive presumption against City that this Agreement is in full force and effect without modification, except as may be represented by Developer, and that there are no uncured defaults in the performance of Developer, except as may be represented by Developer. Developer shall have the right, in Developer’s sole discretion, to record such Notice of Compliance. 10.6 California Law. This Agreement shall be construed and enforced in accordance with the laws of the State of California. Any action to enforce or interpret this Agreement shall be filed and heard in the Superior Court of San Mateo County, California. 10.7 Resolution of Disputes. With regard to any dispute involving Development of the Project, the resolution of which is not provided for by this Agreement or Applicable Law, Developer shall, at City’s request, meet with City. The parties to any such meetings shall attempt in good faith to resolve any such disputes. Nothing in this Section 10.7 shall in any way be interpr eted as requiring that Developer and City and/or City’s designee reach agreement with regard to those matters being addressed, nor shall the outcome of these meetings be binding in any way on City or Developer unless expressly agreed to by the parties to such meetings. 10.8 Attorneys’ Fees. In any legal action or other proceeding brought by either Party to enforce or interpret a provision of this Agreement, the prevailing party is entitled to reasonable attorneys’ fees and any other costs incurred in that proceeding in addition to any other relief to which it is entitled. 10.9 Hold Harmless. Developer shall hold City and its elected and appointed officers, agents, employees, and representatives harmless from claims, costs, and liabilities for any personal injury, death, or property damage which is a result of, or alleged to be the result of, the construction of the Project, or of operations performed under this Agreement by Developer or by Developer’s contractors, subcontractors, agents or employees, whether such operations were performed by Developer or any of Developer’s contractors, subcontractors, agents or employees. Nothing in this Section 10.9 shall be construed to mean that Developer shall hold City harmless from any claims of personal injury, death or property damage arising from, or alleged to arise from, any gross negligence or willful misconduct on the part of City, its elected and appointed representatives, offices, agents and employees. 3634258.1 32 ARTICLE 11 MISCELLANEOUS 11.1 Incorporation of Recitals and Introductory Paragraph. The Recitals contained in this Agreement, and the introductory paragraph preceding the Recitals, are hereby incorporated into this Agreement as if fully set forth herein. 11.2 No Agency. It is specifically understood and agreed to by and between the Parties hereto that: (i) the subject Project is a private development; (ii) City has no interest or responsibilities for, or duty to, third parties concerning any improvements until such time, and only until such time, that City accepts the same pursuant to the provisions of this Agreement or in connection with the various Project Approvals or Subsequent Approvals; (iii) Developer shall have full power over and exclusive control of the Project herein described, subject only to the limitations and obligations of Developer under this Agreement, the Project Approvals, Subsequent Approvals, and Applicable Law; and (iv) City and Developer hereby renounce the existence of any form of agency relationship, joint venture or partnership between City and Developer and agree that nothing contained herein or in any document executed in connection herewith shall be construed as creating any such relationship between City and Developer. 11.3 Enforceability. City and Developer agree that unless this Agreement is amended or terminated pursuant to the provisions of this Agreement, this Agreement shall be enforceable by any party hereto notwithstanding any change hereafter enacted or adopted (whether by ordinance, resolution, initiative, or any other means) in any applicable general plan, specific plan, zoning ordinance, subdivision ordinance, or any other land use ordinance or building ordinance, resolution or other rule, regulation or policy adopted by City that changes, alters or amends the rules, regulations, and policies applicable to the Development of the Project Site at the time of the approval of this Agreement as provided by Government Code section 65866. 11.4 Severability. If any term or provision of this Agreement, or the application of any term or provision of this Agreement to a particular situation, is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining terms and provisions of this Agreement, or the application of this Agreement to other situations, shall continue in full force and effect unless amended or modified by mutual consent of the parties. Notwithstanding the foregoing, if any material provision of this Agreement, or the application of such provision to a particular situation, is held to be invalid, void or unenforceable, either City or Developer may (in their sole and absolute discretion) terminate this Agreement by providing written notice of such termination to the other party. 11.5 Other Necessary Acts and City Approvals. Each party shall execute and deliver to the other all such other further instruments and documents as may be reasonably necessary to carry out the Project Approvals, Subsequent Approvals and this Agreement and to provide and secure to the other party the full and complete enjoyment of its rights and privileges hereunder. Whenever a reference is made herein to an action or approval to be undertaken by City, the City Manager or his or her designee is authorized to act on behalf of City, unless specifically provided otherwise by this Agreement or applicable law. 3634258.1 33 11.6 Construction. Each reference in this Agreement or any of the Project Approvals or Subsequent Approvals shall be deemed to refer to the Agreement, Project Approval, or Subsequent Approval as it may be amended from time to time, whether or not the particular reference refers to such possible amendment. This Agreement has been reviewed and revised by legal counsel for both City and Developer, and no presumption or rule that ambiguities shall be construed against the drafting party shall apply to the interpretation or enforcement of this Agreement. 11.7 Other Miscellaneous Terms. The singular shall include the plural; the masculine gender shall include the feminine; “shall” is mandatory; “may” is permissive. If there is more than one signer of this Agreement, the signer obligations are joint and several. 11.8 Covenants Running with the Land. All of the provisions contained in this Agreement shall be binding upon the Parties and their respective heirs, successors and assigns, representatives, lessees, and all other persons acquiring all or a portion of the Project, or any interest therein, whether by operation of law or in any manner whatsoever. All of the provisions contained in this Agreement shall be enforceable as equitable servitudes and shall constitute covenants running with the land pursuant to California law including, without limitation, Civil Code section 1468. Each covenant herein to act or refrain from acting is for the benefit of or a burden upon the Project, as appropriate, runs with the Project Site, and is binding upon the owner of all or a portion of the Project Site and each successive owner during its ownership of such property. 11.9 Notices. Any notice or communication required hereunder between City or Developer must be in writing, and may be given either personally, by email or telefacsimile (with original forwarded by regular U.S. Mail), by registered or certified mail (return receipt requested), or by Federal Express or other similar courier promising overnight delivery. If personally delivered, a notice shall be deemed to have been given when delivered to the party to whom it is addressed. If given by facsimile transmission, a notice or communication shall be deemed to have been given and received upon actual physical receipt of the entire document by the receiving party’s facsimile machine. Notices transmitted by facsimile after 5:00 p.m. on a normal business day or on a Saturday, Sunday, or holiday shall be deemed to have been given and received on the next normal business day. If given by registered or certified mail, such notice or communication shall be deemed to have been given and received on the first to occur of: (i) actual receipt by any of the addressees designated below as the party to whom notices are to be sent, or (ii) five (5) days after a registered or certified letter containing such notice, properly addressed, with postage prepaid, is deposited in the United States mail. If given by Federal Express or similar courier, a notice or communication shall be deemed to have been given and received on the date delivered as shown on a receipt issued by the courier. Any party hereto may at any time, by giving ten (10) days written notice to the other party hereto, designate any other address in substitution of the address to which such notice or communication shall be given. Notice by email transmission shall be deemed given upon verification of receipt if received before 5:00 p.m. on a regular business day, or else on the next business day. Such notices or communications shall be given to the parties at their addresses set forth below: 3634258.1 34 If to City, to: City of South San Francisco 400 Grand Avenue Attn: City Manager South San Francisco, CA 94080 Phone: (650) 877-8500 Fax: (650) 829-6609 With a Copy to: ___________________ If to Developer, to: Genentech, Inc. Attn: Thomas Ruby 1 DNA Way Mailstop 258A South San Francisco, CA 94080-4990 Phone: (650) 225-3149 Email: [email protected] With Copies to: Holland & Knight 50 California Street, #2500 San Francisco, CA 94111 Attn: Bradley Brownlow Phone: (415) 743-6975 Email: [email protected] 11.10 Mortgagee Protection. The Parties agree that this Agreement shall not prevent or limit Developer, in any manner, at Developer’s sole discretion, from encumbering the Project Site or any portion thereof or any improvement thereon by any mortgage, deed of trust, or other securit y device securing financing with respect to the Project Site (“Mortgage”). City acknowledges that the lenders providing such financing may require certain Agreement interpretations and modifications and agrees upon request, from time to time, to meet with Developer and representatives of such lenders to negotiate in good faith any such request for interpretation or modification provided such interpretation or modification is consistent with the intent and purpose of this Agreement. Any Mortgagee of the Project Site shall be entitled to the following rights and privileges: (a) Neither entering into this Agreement nor a breach of this Agreement shall defeat, render invalid, diminish, or impair the lien of any Mortgage on the Project Site made in good faith and for value, unless otherwise required by law. (b) If City timely receives a request from a Mortgagee requesting a copy of any notice of default given to Developer under this Agreement, City shall provide a copy of that notice to the Mortgagee within ten (10) days of sending the notice of default to Developer. The Mortgagee shall have the right, but not the obligation, to cure the default during the remaining cure period allowed such Party under this Agreement. (c) Any Mortgagee who comes into possession of the Project Site, or any portion thereof, pursuant to foreclosure of the Mortgage or deed in lieu of such foreclosure, shall take the Project Site, or portion thereof, subject to the terms of this Agreement. Notwithstanding 3634258.1 35 any provision of this Agreement to the contrary, no Mortgagee shall have an obligation or duty under this Agreement to perform any of Developer’s obligations or other affirmative covenants of Developer hereunder, or to guarantee such performance; provided, however, that to the extent that any covenant to be performed by Developer is a condition precedent to the performance of a covenant by City, the performance thereof shall continue to be condition precedent to City’s performance hereunder, and further provided that any sales, transfer, or assignment by any Mortgagee in possession shall be subject to the provisions of Section 8.1 of this Agreement. 11.11 Entire Agreement, Counterparts And Exhibits. This Agreement is executed in two (2) duplicate counterparts, each of which is deemed to be an original. This Agreement consists of __ pages and five (5) exhibits which constitute in full, the final and exclusive understanding and agreement of the parties and supersedes all negotiations or previous agreements of the parties with respect to all or any part of the subject matter hereof. All waivers of the provisions of this Agreement shall be in writing and signed by the appropriate authorities of City and the Developer. The following exhibits are attached to this Agreement and incorporated herein for all purposes: Exhibit A: Description and Diagram of Project Site Exhibit B: List of Project Approvals Exhibit C: Applicable Laws & City Fees, Exactions, and Payments Exhibit D: October 2, 2019 Staff Report Exhibit E: Depiction of Permissible Opens Space Locations Exhibit F: Form of Assignment and Assumption Agreement 11.12 No Third Party Beneficiaries. This Agreement is intended for the benefit of the Parties hereto and their respective permitted successors and assigns, and is not for the benefit of, nor may any express or implied provision hereof be enforced by, any other person, except as otherwise set forth in Section 11.10. 11.13 Recordation Of Development Agreement. Pursuant to Government Code section 65868.5, no later than ten (10) days after City enters into this Agreement, the City Clerk shall record an executed copy of this Agreement in the Official Records of the County of San Mateo. IN WITNESS WHEREOF, this Agreement has been entered into by and between Developer and City as of the day and year first above written. 3634258.1 36 CITY CITY OF SOUTH SAN FRANCISCO, a municipal corporation By: ___________________________ Name: Mike Futrell City Manager ATTEST: By: ___________________________ City Clerk APPROVED AS TO FORM: By: ___________________________ City Attorney DEVELOPER GENENTECH, INC., a Delaware corporation By: _______________________ Name: Title: 3634258.1 A-1 #79332517_v2 Exhibit A Description and Diagram of Project Site 3634258.1 C-1 #79332517_v2 Exhibit B: List of Project Approvals [to be completed] • Resolution to Adopt the Draft and Final Environmental Impact Reports, Mitigation Monitoring and Reporting Program and Statement of Overriding Considerations and associated CEQA Findings approved by the City Council on __________by Resolution No._________; • Resolution to Adopt the Genentech 2020 Master Plan Update approved by the City Council on __________by Resolution No._________;; • Ordinance to amend Chapter 20.260 ("Genentech Master Plan Zoning District") of the South San Francisco Municipal Code introduced by the City Council on ________by Ordinance No.__________and second reading adopted by the City Council on_________by Ordinance No.________; • Development Agreement (_______) introduced by the City Council on _______ by Ordinance No. ________and second reading adopted by the City Counil on__________by Ordinance No._________.________. 3634258.1 C-2 #79332517_v2 Exhibit C Applicable Laws & City Fees, Exactions, and Payments CURRENT SOUTH SAN FRANCISCO LAWS Developer shall comply with the following City regulations and provisions applicable to the Property as of the Effective Date (except as modified by this Agreement and the Project Approvals). 1.1. South San Francisco General Plan. The Developer will develop the Project in a manner 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 prior to the Effective Date of this Agreement. 1.2 East of 101 Area Plan. The Developer will develop the Project in a manner consistent with the objectives, policies, general land uses and programs specified in the East of 101 Area Plan, as adopted and as amended from time to time prior to the Effective Date of this Agreement. 1.3 2019 Genentech Campus Master Plan Update. The Developer will develop the Project in a manner consistent with the objectives, policies, general land uses and programs specified in the 2019 Genentech Campus Master Plan Update, as adopted and as amended from time to time prior to the Effective Date of this Agreement. 1.3 Genentech Master Plan (GMP) Zoning District. The Developer shall construct the Project in a manner consistent with the Genentech Master Plan (GMP) Zoning District, City of South San Francisco Municipal Code Chapter 20.260, applicable to the Project Site as of the Effective Date and as amended from time to time prior to the Effective Date of this Agreement. 1.4 South San Francisco Municipal Code. The Developer shall construct the Project in a manner consistent with the City of South San Francisco Municipal Code provisions, as applicable to the Project as of the Effective Date (except as modified by this Agreement, and as may be amended from time to time consistent with this Agreement). FEES, EXACTIONS, & PAYMENTS Subject to the terms of Sections 3.2(b) and 5.6(b) of this Agreement, Developer agrees that Developer shall be responsible for the payment of the following fees, charges, exactions, taxes, and assessments (collectively, “Assessments”). From time to time, the City may update, revise, or change its Assessments. Further, nothing herein shall be construed to relieve the Property from common benefit assessments or district taxes 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. As authorized by the applicable Development Fee enabling ordinance or resolution as of the Effective Date of this Agreement, the 3634258.1 C-3 #79332517_v2 amount paid for a particular Assessment, shall be the amount owed, based on the calculation or formula in place at the time payment is due, as specified below. 2.1 Administrative/Processing Fees. The Developer shall pay the applicable application, processing, administrative, legal and inspection fees and charges, as then currently adopted pursuant to City’s Master Fee Schedule and required by the City for processing of land use entitlements, including without limitation, General Plan amendments, zoning changes, precise plans, development agreements, conditional use permits, variances, transportation demand management plans, tentative subdivision maps, parcel maps, lot line adjustments, general plan maintenance fee, demolition permits, and building permits. 2.2. Impact Fees (Existing Fees). Except as modified below and as set forth in Section ____ of this Agreement, only the following existing impact fees shall be paid for net new square footage at the earlier of (i) issuance of certificate of occupancy or (ii) the times prescribed in the resolution(s) or ordinance(s) adopting and implementing the fees. [LIST TO BE COMPLETED] • Park and Recreation Impact Fee (SSMC Chapter 8.67). • Childcare Impact Fee (SFFMC Chapter 20.310). • Bicycle and Pedestrian Impact Fee (SFFMC Chapter 8.68). • Public Safety Impact Fee (Resolution 97-2012). • Commercial Linkage Fee (SSFMC Chapter 8.69). • Sewer Capacity Fee (Resolution 39 -2010). • East of 101 Traffic Impact Fee • East of 101 Sewer Impact Fee • Oyster Point Interchange Impact Fee Planned Fees currently under review by the City of South San Francisco: • Library Impact Fee • Citywide Transportation Impact Fee • Fee in lieu of Providing Public Art as Part of Project 3634258.1 C-4 #79332517_v2 Exhibit D October 2, 2019 Staff Report [TO BE ADDED] 3634258.1 C-5 #79332517_v2 Exhibit E Depiction of Permissible Open Space Locations [TO BE ADDED] 3634258.1 C-6 #79332517_v2 Exhibit F Form of Assignment and Assumption Agreement WHEN RECORDED MAIL TO: City of South San Francisco Attn: City Clerk 400 Grand Avenue South San Francisco, CA 94080 ______________________________________________________________________________ Space Above for Recorder’s Use Exempt from Recording Fees per Cal. Gov. Code § 6103 ASSIGNMENT AND ASSUMPTION AGREEMENT This Assignment and Assumption Agreement (“Assignment Agreement”) is entered into to be effective on ______,202_, by and between Genentech, Inc., a Delaware corporation (“Assignor”), and ___________________, a _______________ (“Assignee”), and the City of South San Francisco, a municipal corporation (“City”). Assignor and Assignee are sometimes referred to herein as a “Party” and collectively as the “Parties.” RECITALS A. Assignor and City have previously entered into that certain Development Agreement between City and Assignor dated _________, 2020, approved by the City of South San Francisco City Council by Ordinance No. ________ on _________, 2020, to be effective on ________________, 2020, and recorded on ______________, 2020 as Document No. _____________, San Mateo County Official Records (“Development Agreement”) to facilitate the development and redevelopment of t hat certain real property consisting of approximately ____ acres with the City of South San Francisco, California, which is legally described in Exhibit ___ of the Development Agreement (“Property”). A true and complete copy of the Development Agreement is attached hereto as Exhibit 1. B. Assignor is the fee owner of the Property, and Assignor desires to convey its interest in the developable, approximately ___ acre portion of the Property and more particularly described on Exhibit 2 attached hereto (“Assigned Property”) to Assignee concurrently with execution of this Assignment Agreement and Assignee desires to so acquire such interest in the Assigned Property from the Assignor. 3634258.1 C-7 #79332517_v2 C. Section 8.1 of the Development Agreement (“Agreement” therein) refers to Genentech as “Developer” and provides in part that: Developer may transfer or assign all or any portion of its interests, rights, or obligations under the Agreement and the Project approvals to third parties acquiring an interest or estate in the Project or any portion thereof including, without limitation, purchasers or lessees of lots, parcels, or facilities. Prior to the issuance of the first certificate of occupancy for the Project Site, Developer will seek City’s prior written consent to any transfer, which consent will not be unreasonably withheld or delayed. City may refuse to give consent only if, in light of the proposed transferee’s reputation and financial resources, such transferee would not, in City’s reasonable opinion, be able to perform the obligations proposed to be assumed by such transferee. Such determination will be made by the City Manager and will be appealable by Developer to the City Council. For any transfer of all of the Property, the Developer and assignee shall enter into an assignment and assumption agreement in substantially the form set forth in Exhibit D. D. The Parties desire to enter into this Assignment Agreement in order to satisfy and fulfill their respective obligations under Section 8.1 of the Development Agreement. AGREEMENT NOW, THEREFORE, in consideration of the above recitals and the mutual covenants hereinafter contained and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows: 1. Assignment by Assignor. Assignor hereby assigns, transfers and grants to Assignee, and its successors and assigns, all of Assignor’s rights, title and interest and obligations, duties, responsibilities, conditions and restrictions under the Development Agreement with respect to the Assigned Property and only to the extent accruing or arising on and after the Effective Date (collectively, the “Assigned Rights and Obligations”). 2. Acknowledgement and Assumption of Obligations by Assignee. Assignee, for itsel f and its successor and assigns, hereby acknowledges that it has reviewed, is aware of and intends to honor its Assigned Rights and Obligations with respect to its Development of the Assigned Property pursuant to the terms of the Development Agreement, and additionally expressly and unconditionally assumes all of the Assigned Rights and Obligations. Assignee agrees, expressly for the benefit of Assignor and City, to comply with, perform, and execute all of the Assigned Rights and Obligations. 3. Release o f Assignor. Assignee and City hereby fully release Assignor from all Assigned Rights and Obligations. Both Assignor and Assignee acknowledge that this Assignment Agreement is intended to fully assign all of the Assigned Rights and Obligations to Assignee, and it is expressly understood that Assignor shall continue to be obligated under the Development Agreement only with respect to those portions of the Project Site retained by Assignor. 3634258.1 C-8 #79332517_v2 4. Substitution of Assignor. Assignee hereinafter shall be substituted for and replace Assignor in the Development Agreement with respect to the Assigned Property. Whenever the term “Developer” appears in the Development Agreement, it shall hereinafter include Assignee with respect to the Assigned Property. 5. Development Agreement in Full Force and Effect. Except as specifically provided herein with respect to the assignment and assumption, all the terms, covenants, conditions and provisions of the Development Agreement are hereby ratified and shall remain in full force and effect. 6. Recording. Assignor shall cause this Assignment Agreement to be recorded in the Official Records of San Mateo County, California, and shall promptly provide conformed copies of the recorded Assignment Agreement to Assignee and City. 7. Successors and Assigns. All of the terms, covenants, conditions and provisions of this Assignment Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective heirs, successors and assigns. 8. Applicable Law/Venue. This Assignment Agreement shall be construed and enforced in accordance with the laws of the State of California, without reference to choice of law provisions. Any legal actions under this Assignment Agreement shall be brought only in the Superior Court of the County of Santa Clara, State of California. 9. Applicable Law/Venue. This Assignment Agreement shall be construed and enforced in accordance with the laws of the State of California, without reference to choice of law provisions. Any legal actions under this Assignment Agreement shall be brought only in the Superior Court of the County of Santa Clara, State of California. 10. Interpretation. All parties have been represented by counsel in the preparation and negotiation of this Assignment Agreement, and this Assignment Agreement shall be construed according to the fair meaning of its language. The rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not be employed in interpreting this Assignment Agreement. Unless the context clearly requires otherwise: (a) the plural and singular numbers shall each be deemed to include the other; (b) the masculine, feminine, and neuter genders shall each be deemed to include the others; (c) “shall,” “will,” or “agrees” are mandatory, and “may” is permissive; (d) “or” is not exclusive; and (e) “includes” and “including” are not limiting. 11. Severability. Except as otherwise provided herein, if any provision(s) of this Assignment Agreement is (are) held invalid, the remainder of this Assignment Agreement shall not be affected, except as necessarily required by the invalid provisions, and shall remain in full force and effect unless amended or modified by mutual consent of the parties. 12. Counterparts. This Assignment Agreement may be executed in one or more counterparts, each of which shall be deemed to constitute an original, but all of which, when 3634258.1 C-9 #79332517_v2 taken together, shall constitute one and the same instrument, with the same effect as if all of the parties to this Assignment Agreement had executed the same counterpart. 13. City Consent . City is executing this Assignment Agreement for the limited purpose of consenting to the assignment and assumption and clarifying that there is privity of contract between City and Assignee with respect to the Development Agreement. 14. Effective Date. The Effective Date of this Assignment Agreement shall be the date upon which Assignee obtains fee title to the Assigned Property by duly recorded deed (“Effective Date”). IN WITNESS WHEREOF, Assignor, Assignee and City have entered into this Assignment Agreement as of the date first written above. ASSIGNOR: GENENTECH INC., a Delaware Corporation By: Signature of Person executing the Agreement on behalf of Assignor Name: Title: ASSIGNEE: [INSERT NAME OF ASSIGNEE] By: Signature of Person executing the Agreement on behalf of Assignee Name: Title: CITY: CITY OF SOUTH SAN FRANCISCO, a Municipal Corporation 3634258.1 C-10 #79332517_v2 By: Signature of Person executing the Agreement on behalf of City Name: Title: Approved as to form by: By: Signature of Person approving form of the Agreement on behalf of City Name: Title: