HomeMy WebLinkAboutOrd 1268-2000...... ORDINANCE NO. 1268-2000
CITY COUNCIL OF THE CITY OF SOUTH SAN FRANCISCO
AN ORDINANCE ADOPTING A DEVELOPMENT
AGREEMENT BETWEEN THE CITY OF SOUTH SAN
FRANCISCO AND SUNSTREAM HOMES FOR THE OAK
FARMS PROJECT
RECITALS
WHEREAS, the Oak Farms Development Agreement allows development of the Oak
Farms Project ("existing entitlements"), subject to certain further approvals and entitlements; and
WHEREAS, the South San Francisco Planning Commission held a duly noticed public
hearing on May 4, 2000 to consider a Focused Environmental Impact Report, the project and the
Development Agreement; and
WHEREAS, the project site is located within the E1 Camino Corridor Redevelopment
Area; and
WHEREAS, California Redevelopment Law requires that fifteen percent of all new or
substantially rehabilitated units developed within a redevelopment project area must be
affordable to low or moderate income households; and
WHEREAS, the City and the Standard Building Company desire to enter into a
Development Agreement to facilitate development of the project and to assure continued
affordability of the required below market rate units; and
WHEREAS, the Planning Commission has reviewed the draft Development Agreement
between the City of South San Francisco and Standard Building Company for the Oak Farms
Project as contained in Exhibit A and has found the Agreement to be consistent with the City's
General Plan.
WHEREAS, a Focused Environmental Impact Report (Focused EIR) dated February
2000 was prepared for the project and a Notice of Completion filed with the State Clearinghouse;
and
WHEREAS, on May 24, 2000, the City Council adopted the Findings of Fact and Statement
of Overriding Consideration and certified the Focused EIR for the Oak Farms Project; and
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WHEREAS, on May 4, 2000, the Planning Commission held a properly noticed public
hearing on the proposed Development Agreement for Oak Farms and made the findings required
by Municipal Code section 19.060.100 and recommended that the City Council adopt said
Agreement.
NOW THEREFORE, The City Council of the City of South San Francisco does ordain as
follows:
Section 1. Findings
The proposed Development Agreement for Oak Farms is consistent with the
objectives, policies, general land uses and programs specified in the General Plan
as amended and adopted. This finding is based upon all evidence in the record as
a whole, including, but not limited to: the City Council's independent review of
these documents.
Bo
The proposed Development Agreement for Oak Farms complies with all
applicable zoning, subdivision, and building regulations and with the general and
relevant specific plan. The City Council independently reviewed the
Development Agreement for the Oak Farms Project, General Plan, Title 15 of the
Municipal Code, and applicable state and federal law. This finding is based upon
all evidence in the record as a whole, including, but not limited to: the City
Council's independent review of these documents and advise in the record from
City staff.
Co
The proposed Development Agreement for the Oak Farms Project states its
specific duration. This finding is based upon all evidence in the record as a
whole, including, but not limited to: the City Council's independent review of the
proposed Development Agreement for Oak Farms.
Do
The proposed Development Agreement for Oak Farms states the permitted uses of
the property subject thereto. This finding is based upon all evidence in the record
as a whole, including, but not limited to: the City Council's independent review of
the proposed Development Agreement for Oak Farms and its determination that
Sections 5 and 6 of the Agreement set forth the documents which state the
permitted uses.
Eo
The proposed Development Agreement for Oak Farms states the permitted density
and intensity of use of the property subject thereto. This finding is based upon all
evidence in the record as a whole, including, but not limited to: the City Council's
independent review of the proposed Development Agreement for Oak Farms and
its determination that Sections 5 and 6 of the Agreement set forth the documents
which state the permitted density and intensity of use.
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The proposed Development Agreement for Oak Farms states the maximum
permitted height and size of proposed buildings on the property subject thereto.
This finding is based upon all evidence in the record as a whole, including, but not
limited to: the City Council's independent review of the proposed Development
Agreement for Oak Farms and its determination that Section 5 of the Agreement
sets forth the documents which state the maximum permitted height and size of
buildings.
Go
Section 2.
The proposed Development Agreement for Oak Farms describes the land which
will be dedicated for public purposes from the property subject thereto. This
finding is based upon all evidence in the record as a whole, including, but not
limited to: the City Council's independent review of the proposed Development
Agreement for Oak Farms and its determination that Section 5.3.1 and the
Conditions of Approval set forth the land to be dedicated for public purposes.
The City Council of the City of South San Francisco hereby approves the proposed
Development Agreement for Oak Farms, attached hereto as Exhibit 1 and incorporated herein by
reference.
Section 3. Severability.
In the event any section or portion of this ordinance shall be determined invalid or
unconstitutional, such section or portion shall be deemed severable and all other sections or
portions hereof shall remain in full force and effect.
Section 4. Publication and Effective Date.
Pursuant to the provisions of Government Code Section 36933, a summary of this
Ordinance shall be prepared by the City Attorney. At least five (5) days prior to the Council
meeting at which this Ordinance is scheduled to be adopted, the City Clerk shall (1) publish the
Summary, and (2) post in the City Clerk's Office a certified copy of this Ordinance. Within
fifteen (15) days after the adoption of this Ordinance, the City Clerk shall (1) publish the
summary, and (2) post in the City Clerk's Office a certified copy of the full text of this Ordinance
along with the names of those City Council members voting for and against this Ordinance or
otherwise voting. This ordinance shall become effective thirty days from and after its adoption.
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Introduced at a regular meeting of the City Council of the City of South San Francisco,
held on the 31 st day of May, 2000.
Adopted as an Ordinance of the City of South San Francisco at a regular meeting of the
City Council of the City of South San Francisco, held on the 14th day of June, 2000 by the
following vote:
AYES:
Councilmembers Pedro Gonzalez, Eugene R. Mullin and John R. Penna, Mayor
Pro Tem Joseph A. Femekes and Mayor Karyl Matsumoto
NOES: None.
ABSTAIN: None.
ABSENT: None.
ATTEST: ..~Z.'~.Jt,a-' ,r2~. ~
Ci~ Clerk ~-~
As Mayor of the City of South San Francisco, I do hereby approve the foregoing
Ordinance this 14th day of June, 2000.
J :\WPDWINRSW~405\00 l\ORD2000Wlay\OakFarmsDAAdopt.doc
Created on 5/17/00 10:43 AM
Kimberly Johnson Page 4 June 16, 2000
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City of South San Francisco
When Recorded Mail To:
City Clerk
City of South San Francisco
P.O. Box 711
South San Francisco, CA 94083
Space above this line for Recorder's Use
DEVELOPMENT AGREEMENT
BETWEEN THE
CITY OF SOUTH SAN FRANCISCO
AND
SUNSTREAM HOMES
FOR THE OAK FARMS PROJECT
THIS DEVELOPMENT AGREEMENT is made and entered in the City of South
San Francisco on this __ day of ,2000, by and between the CITY OF SOUTH SAN
FRANCISCO, a Municipal Corporation (hereafter "City"), and Sunstream Homes, a California
corporation (hereafter "Developer"), pursuant to the authority of Sections 65864 et seq. of the
California Government Code and South San Francisco Municipal Code, Chapter 19.60.
RECITALS
A. California Government Code Sections 65864 et seq. and Chapter 19.60 of the
South San Francisco Municipal Code (hereafter "Chapter 19.60") authorize the CITY to enter
into an Agreement for the development of real property with any person having a legal or
equitable interest in such property in order to establish certain development rights in such
property; and
B. DEVELOPER desires to develop and holds legal interest in certain real
property consisting of approximately 2.65 acres of land, located in the City of South San
Francisco, County of San Mateo, State of California, which is more particularly described in
Exhibit A attached hereto and incorporated herein by this reference, and which real property is
hereafter called "Property"; and
C. DEVELOPER proposes the development of the Property with 32 single
family homes (the "Project"); and
D. DEVELOPER has applied for, and CITY has approved or is processing,
various land use approvals in connection with the development of the Project, including Planned
Unit Development (PUD 99-067) and Subdivision Map (SA 99-067) ("Project Approvals"); and
E. The City Council has found that, among other things, this Development
Agreement is consistent with its General Plan and has been reviewed and evaluated in
accordance with Chapter 19.60; and
F. The City Council has further found that the high cost of housing in the City of
South San Francisco and communities in its vicinity has made the purchase of a home within the
City and its vicinity unaffordable to many employees of the City of South San Francisco and the
South San Francisco Unified School District.
G. CITY and DEVELOPER have reached agreement and desire to express
herein a Development Agreement that will facilitate development of the Project subject to
conditions set forth herein; and
H. Pursuant to the California Environmental Quality Act (CEQA) the City has
approved a Final Environmental Impact Report for the Project (Resolution No. __-00) (the
"EIR") and found that the EIR is adequate for this Agreement; and
Development Agreement for the
Oak Farms Project - City of South San Francisco
Page 2 of 13
June 9, 2000
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I. On ,2000, the City Council of the City of South San
Francisco adopted Ordinance No. __-00 approving this Development Agreement. The ordinance
took effect on ,2000.
NOW, TI-IE~ORE, with reference to the foregoing recitals and in consideration of
the mutual promises, obligations and covenants herein contained, CITY and DEVELOPER agree
as follows:
AGREEMENT
1. Description of Property.
The Property which is the subject of this Development Agreement is
described in Exhibit A attached hereto ("Property").
2. Interest of Developer.
The DEVELOPER is the owner of the Property in fee simple.
3. Relationship of City and Developer.
It is understood that this Agreement is a contract that has been negotiated and
voluntarily entered into by CITY and DEVELOPER and that the DEVELOPER is not an agent of
CITY. The CITY and DEVELOPER hereby renounce the existence of any form of joint venture
or partnership between them, and agree that nothing contained herein or in any document
executed in connection herewith shall be construed as making the CITY and DEVELOPER joint
venturers or partners.
4. Effective Date and Term.
4.1 Effective Date. This Agreement shall become effective on
,2000, which is the thirtieth (30th) day following adoption by the South San
Francisco City Council of Ordinance No. -00 approving this Agreement (the "Effective
Date").
4.2 Term. The term of this Development Agreement shall commence
on the Effective Date and extend ten (10) years thereafter, unless said term is otherwise
terminated or modified by circumstances set forth in this Agreement or otherwise agreed by the
parties.
5. Use of the Property.
Development Agreement for the
Oak Farms Project - City of South San Francisco
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June 9, 2000
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5.1 Right to Develol~. Developer shall have the vested right to develop
the Project on the Property in accordance with the terms and conditions of this Agreement and
the Project Approvals.
5.2 Permitted Uses. The permitted uses of the Property, the density
and intensity of use, the design and size of proposed buildings, provisions for reservation or
dedication of land for public purposes and location and maintenance of on-site and off-site
improvements, location of utilities and other terms and conditions of development applicable to
the Property, shall be those set forth in this Agreement and the Project Approvals.
5.3 Additional Conditions. Provisions for the following ("Additional
Conditions") are set forth in Exhibit B attached hereto and incorporated herein by reference.
5.3.1 Fees, Dedications. Terms relating to payment of fees
or dedication of property: See Exhibit B and the Project Approvals
5.3.2 Miscellaneous. Miscellaneous terms.
See Exhibit B and the Project Approvals
6. Applicable Rules, Regulations and Official Policies.
6.1 Rules re Permitted Uses. For the term of this Agreement, the City's
ordinances, resolutions, rules, regulations and official policies governing the permitted uses of
the Property, governing density and intensity of use of the Property and the design and size of
proposed buildings shall be those in force and effect on the Effective Date.
6.2 Uniform Codes Applicable. Unless expressly provided in
Paragraph 5 of this Agreement, the Project.shall be constructed in accordance with the provisions
of the Uniform Building, Mechanical, Plumbing, Electrical and Fire Codes and Title 24 of the
California Code of Regulations, relating to Building Standards, in effect at the time of approval
of the appropriate building, grading, or other construction permits for the Project.
7. Subsequently Enacted or Revised Fees, Assessments and Taxes.
7.1 Fees, Exactions, Dedications. CITY and DEVELOPER agree that
the fees payable and exactions required in connection with the development of the Project for
purposes of mitigating environmental and other impacts of the Project, providing infrastmcture
for the Project shall be those set forth in the Project Approvals and in this Agreement. The CITY
shall not impose or require payment of any other fees, dedications of land, or construction of any
public improvement or facilities, shall not increase or accelerate existing fees, dedications of land
or construction of public improvements, in connection with any subsequent discretionary
approval for the Property, except as set forth in the Project Approvals and this Agreement.
Development Agreement for the
Oak Farms Project - City of South San Francisco
Page 4 of 13
June 9, 2000
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The parties acknowledge and agree that CITY shall not impose any fees
which are not in effect on the Effective Date of this Agreement and further agree that CITY may
impose only those increases in existing fees which are authorized or contemplated by the
ordinances, resolutions or other regulations currently in effect establishing such fees or by the
Project Approvals. Any fee increases are subject to the provisions of Government Code Section
66000 et seq.
7.2 Revised Apl~lication Fees. Any existing application, processing
and inspection fees that are revised during the term of this Agreement shall apply to the Project
provided that (1) such fees have general applicability; (2) the application of such fees to the
Property is prospective; and (3) the application of such fees would not prevent development in
accordance with this Agreement. By so agreeing, DEVELOPER does not waive its rights to
challenge the legality of any such application, processing and/or inspection fees.
7.3 New Taxes. Any subsequently enacted city-wide taxes (other than
development excise taxes) shall apply to the Project provided that: (a) the application of such
taxes to the Property is prospective; and (b) the application of such taxes would not prevent
development in accordance with this Agreement. By so agreeing; DEVELOPER does not waive
its rights to challenge the legality of any such taxes or to protest in any manner the imposition
thereof.
7.4 Assessments. Nothing herein shall be construed to relieve the
Property from assessments levied against it by City pursuant to any statutory procedure for the
assessment of property to pay for infrastructure and/or services which benefit the Property. By so
agreeing, DEVELOPER does not waive its rights to challenge the legality of any such
assessments or to protest in any manner the imposition thereof.
8. Amendment or Cancellation.
8.1 Modification Because of Conflict with State or Federal Laws. In
the event that state or federal laws or regulations enacted after the effective date of this
Agreement prevent or preclude compliance with one or more provisions of this Agreement or
require changes in plans, maps or permits approved by the City, the parties shall meet and confer
in good faith in a reasonable attempt to modify this Agreement to comply with such federal or
state law or regulation. Any such amendment or suspension of the Agreement shall be approved
by the City Council in accordance with Chapter 19.60.
8.2 Amendment by Mutual Consent. This Agreement may be
amended in writing from time to time only by mutual consent of the parties hereto and in
accordance with the procedures of State law and Chapter 19.60.
8.3 Cancellation by Mutual Consent. Except as otherwise permitted
herein, this Agreement may be canceled in whole or in part only by the mutual consent of the
Development Agreement for the
Oak Farms Project - City of South San Francisco
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June 9, 2000
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parties or their successors in interest.
9. Term and Issuance of Project Approvals.
9.1. Rules, Regulations and Policies Applicable to Project. Approvals.
All applications for Project Approvals submitted by DEVELOPER after the Effective Date will
be considered by CITY in light of and in accordance with only those rules, regulations and
official policies that are permitted to be applied to the Project pursuant to Section 6 above and
any Project Approvals issued as of the Effective Date.
9.2 Term of Project Approvals. Pursuant to California
Government Code Section 66452.6(a), the term of the vesting tentative [Susy - are they getting
a TM or a VTM?] map described in Recital D above shall automatically be extended for the
term of this Agreement.
10. Annual Review.
10.1
be ,2001 and each
Review Date. The annual review date for this Agreement shall
thereafter.
10.2 Costs. Costs reasonably incurred by CITY in connection with the
annual review shall be paid by DEVELOPER.
11. Default.
11.1 Other Remedies Available. Upon the occurrence of an event of
default, the parties may pursue all other remedies at law or in equity which are not otherwise
provided for in this Agreement or in City's regulations governing development agreements,
expressly including the remedy of specific performance of this Agreement.
11.2 Notice of Default and Request to Cure. Upon the occurrence of an
event of default by either party, the nondefaulting party shall serve written notice of such default
upon the defaulting party. ("Notice of Default and Request to Cure") Failure to give notice shall
not constitute a waiver of any default.
11.3 Procedures for Termination. If the default is not cured by the
defaulting party within thirty (30) days after service of the Notice of Default and Request to Cure
("Cure Period"), the non-defaulting party desiring to terminate this Agreement may then
commence the termination of this Agreement by serving on the defaulting party a written "Notice
of Intent to Terminate" this Agreement; provided, however, that if the default cannot be cured
within the Cure Period, the nondefaulting party shall refrain from any such commencement of the
termination of this Agreement or any other legal or equitable action so long as the defaulting
party begins to cure such default within the Cure Period and diligently pursues such cure to
Development Agreement for the
Oak Farms Project - City of South San Francisco
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June 9, 2000
completion.
If a Notice of Intent to Terminate is served by CITY on DEVELOPER, the matter
shall be reviewed and considered by the City Council in the manner set forth in California
Government Code § 65868. Termination shall be effective upon the passage of thirty (30) days
following such consideration and review by the City Council, unless the default is resolved to the
mutual satisfaction of the parties prior to such date, If a Notice of Termination is served by
DEVELOPER on CITY, within thirty (30) days after such service, the matter shall be reviewed
and considered by the City Council for the purpose of determining whether City should take any
further curative action in light of the service by DEVELOPER of a Notice of Intent to Terminate.
Termination shall be effective upon the passage of fifteen (15) days following such
consideration and review by the City Council (or forty-five (45) days following delivery by
DEVELOPER of a Notice of Intent to Terminate if the City Council fails to complete its review
and consideration of such matter in accordance with the provisions of the preceding sentence),
unless the default is resolved to the mutual satisfaction of the parties prior to such date and
evidenced in writing.
11~4 No Damages Against CITY. In no event shall damages be awarded
against CITY upon an event of default or upon termination of this Agreement.
12. Estoppel Certificate.
Either party may, at any time, and from time to time, request written notice
from the other party requesting such party to certify in writing that, (a) this Agreement is in full
force and effect and a binding obligation of the parties, Co) this Agreement has not been amended
or modified either orally or in writing, or if so amended, identifying the amendments, and (c) to
the knowledge of the certifying party the requesting party is not in default in the performance of
its obligations under this Agreement, or if in default, to describe therein the nature and amount of
any such defaults. A party receiving a request hereunder shall execute and remm such certificate
within thirty (30) days following the receipt thereof, or such longer period as may reasonably be
agreed to by the parties. City Manager of City shall be authorized to execute any certificate
requested by DEVELOPER. Should the party receiving the request not execute and return such
certificate within the applicable period, this shall not be deemed to be a default, provided that
such party shall be deemed to have certified that the statements in clauses (a) through (c) of this
section are tree, and any party may rely on such deemed certification~
13. Mortgagee Protection; Certain Rights of Cure.
13.1 Mortgagee Protection. This Agreement shall be superior and
senior to any lien placed upon the Property, or any portion thereof after the date of recording this
Agreement, including the lien for any deed of trust or mortgage ("Mortgage"). Notwithstanding
the foregoing, no breach hereof shall defeat, render invalid, diminish or impair the lien of any
Mortgage made in good faith and for value, but all the terms and conditions contained in this
Development Agreement for the
Oak Farms Project - City of South San Francisco
Page 7 of 13
June 9, 2000
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Agreement shall be binding upon and effective against any person or entity, including any deed
of trust beneficiary or mortgagee ("Mortgagee") who acquires title to the Property, or any portion
thereof, by foreclosure, tmstee's sale, deed in lieu of foreclosure, or otherwise.
13.2 Mortgagee Not Obligated. Notwithstanding the provisions of
subparagraph 13.1 above, no Mortgagee shall have any obligation or duty under this Agreement,
before or after foreclosure or a deed in lieu of foreclosure, to construct or complete the
construction of improvements, or to guarantee such construction of improvements, or to
guarantee such constmction or completion, or to pay, perform or provide any fee, dedication,
improvements or other exaction or imposition; provided, however, that a Mortgagee shall not be
entitled to devote the Property to any uses or to construct, any improvements thereon other than
those uses or improvements provided for or authorized by the Project Approvals or by 'this
Agreement.
13.3 Notice of Default to Mortgagee and Extension of Right to Cure. If
CITY receives notice from a Mortgagee requesting a copy of any notice of default given
DEVELOPER hereunder and specifying the address for service thereof, then CITY shall deliver
to such Mortgagee, concurrently with service thereon to DEVELDPER, any notice given to
DEVELOPER with respect to any claim by CITY that DEVELOPER has committed an event of
default. Each Mortgagee shall have the right during the same period available to DEVELOPER
to cure or remedy, or to commence to cure or remedy, the event of default claimed set forth in the
CITY's notice. CITY, through its City Manager, may extend the thirty-day cure Period provided
in subparagraphs 11.2 and 11.3 for not more than an additional sixty (60) days upon request of
DEVELOPER or a Mortgagee.
14. Severabilitv.
The unenforceability, invalidity or illegality of any provisions, covenant,
condition or term of this Agreement shall not render the other provisions unenforceable, invalid
or illegal.
15. Attorneys' Fees and Costs.
15.1 Action by CITY or DEVELOPER. If CITY or DEVELOPER
initiates any action at law or in equity to enforce or interpret the terms and conditions of this
Agreement, the prevailing party shall be entitled to recover reasonable attorneys' fees and costs in
addition to any other relief to which it may otherwise be entitled.
15.2 Action by Third Party. If any person or entity not a party to this
Agreement initiates an action at law or in equity to challenge the validity of any provision of this
Agreement or the Project Approvals, the parties shall cooperate in defending such action.
DEVELOPER shall bear its own costs of defense as a real party in interest in any such action,
and shall reimburse CITY for all reasonable court costs and attorneys' fees expended by CITY in
Development Agreement for the
Oak Farms Project - City of South San Francisco
Page 8 of 13
June 9, 2000
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defense of any such action or other proceeding.
16. Transfers and Assignments.
16.1 Ri~_.ht to Assign. It is anticipated that DEVELOPER will sell the
Property to another developer. All of DEVELOPER'S fights, interests and obligations hereunder
may be transferred, sold or assigned in conjunction with the transfer, sale, or assignment of all of
the Property subject hereto at any time during the term of this Agreement, provided that no
transfer, sale or assignment of DEVELOPER's fights, interests and obligations hereunder shall
occur without the prior written notice to CITY and approval by the City Manager, which
approval shall not be unreasonably withheld or delayed. The City Manager shall consider and
decide the matter within 10 days after DEVELOPER's notice, provided all necessary documents,
certifications and other information are provided to the City Manager.
16.2 Release Uoon Transfer. Upon the transfer, sale, or assignment of
all of DEVELOPER's rights, interests and obligations hereunder pursuant to subparagraph 16.1
of this Agreement, DEVELOPER shall be released from the obligations under this Agreement,
with respect to the Property transferred, sold, or assigned, arising subsequent to the date of City
Manager approval of such transfer, sale, or assignment (or, if the transferee is Sunstream Homes,
those arising subsequent to the date of such transfer, sale or assignment); provided, however, that
if any transferee, purchaser, or assignee approved by the City Manager expressly assumes all of
the rights, interests and obligations of DEVELOPER under this Agreement, DEVELOPER shall
be released with respect to all such rights, interests and assumed obligations. In any event, the
transferee, purchaser, or assignee shall be subject to all the provisions hereof and shall provide all
necessary documents, certifications and other necessary information prior to City Manager
approval.
16.3 Developer's Right to Retain St>ecified Rights or Obligations.
Notwithstanding subparagraPhs 16.1 and 16.2 and paragraph 17, DEVELOPER may withhold
from a sale, transfer or assignment of this Agreement certain rights, interests and/or obligations
which DEVELOPER shall retain, provided that DEVELOPER specifies such rights, interests
and/or obligations in a written document to be appended to this Agreement and recorded with the
San Marco County Recorder prior to the sale, transfer or assignment of the Property.
DEVELOPER's purchaser, transferee or assignee shall then have no interest or obligations for
such fights, interests and obligations and this Agreement shall remain applicable to
DEVELOPER with respect to such retained fights, interests and/or obligations.
16.4 Permitted Transfer, Purchase or Assignment. The sale or other
transfer of any interest in the Property to a purchaser ("Purchaser") pursuant to the exercise of
any fight or remedy under a deed of trust encumbering DEVELOPER'S interest in the Property
shall not require City Manager approval pursuant to the provision of subparagraph 16.1. Any
subsequent transfer, sale or assignment by the Purchaser to a subsequent transferee, purchaser, or
assignee shall be subject to the provisions of subparagraph 16.1.
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Oak Farms Project - City of South San Francisco
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June 9, 2000
16.5 Termination of Agreement Upon Sale of Individual Lots to
Public. Notwithstanding any provisions of this Agreement to the contrary, the burdens of this
Agreement shall terminate as to any lot which has been finally subdivided and individually (and not
in "bulk") sold to the pUrchaser or user thereof and thereupon and without the execution or
recordation of any further document or instrument such lot shall be released from and no lOnger be
subject to or burdened by the provisions of this Agreement.
17. A~reement Runs with the Land.
All of the provisions, rights, terms, covenants, and obligations contained
in this Agreement shall be binding upon the parties and their respective heirs, successors and
assignees, representatives, lessees, and all other persons acquiring the Property, or any portion
thereof, or any interest therein, whether by operation of law or in any manner whatsoever. All of the
provisions of this Agreement shall be enforceable as equitable servitude and shall constitute
covenants running with the land pursuant to applicable laws, including, but not limited to,
Section 1468 of the Civil Code of the State of California. Each covenant to do, or refrain from
doing, some act on the Property hereunder, or with respect to any owned property, (a) is for the
benefit of such properties and is a burden upon such properties, (b) runs with Such properties, and
(c) is binding upon each party and each successive owner during its ownership of such properties or
any portion thereof, and shall be a benefit to and a bUrden upon each party and its property
hereunder and each other person succeeding to an interest in such prOPerties.
18. Bankruptcy.
The obligations of this Agreement shall not be dischargeable in
bankruptcy.
19. Indemnification.
DEVELOPER agrees to indemnify, defend and hold harmless CITY,
and its elected and appointed councils, boards, commissions, officers, agents, employees,
and representatives from any and all claims, costs (including legal fees and costs) and
liability for any personal injury or property damage which may arise directly or indirectly as
a result of any actions or inactions by the DEVELOPER, or any actions or inactions of
DEVELOPER's contractors, subcontractors, agents, or employees in connection with the
construction, improvement, operation, or maintenance of the Project, provided that
DEVELOPER shall have no indemnification obligation with respect to negligence or
wrongful conduct of CITY, its contractors, subcontractors, agents or employees or with
respect to the maintenance, use or condition of any improvement after the time it has been
dedicated to and accepted by the CITY or another public entity (except as provided in an
improvement agreement or maintenance bond).
Development Agreement for the
Oak Farms Project - City of South San Francisco
Page 10 of 13
June 9, 2000
20. Insurance.
20.1 Public Liability and Property Damage Insurance. During the
term of this Agreement, DEVELOPER shall maintain in effect a policy of comprehensive
general liability insurance with a per-occurrence combined single limit of not less than one
million dollars ($1,000,000.00) and a deductible of not more than ten thousand dollars
($10,000.00) per claim. The policy so maintained by DEVELOPER shall name the CITY
a_s__an additional insured and shall include either aseverability of interest clause or cross-
liability endorsement.
20.2 Workers Compensation Insurance. During the term of this
Agreement DEVELOPER shall maintain Worker's Compensation insurance for all persons
employed by DEVELOPER for work at the Project site. DEVELOPER shall require each
contractor and subcontractor similarly to provide Worker's Compensation insurance for its
respective employees. DEVELOPER agrees to indemnify the City for any damage resulting
from DEVELOPER's failure to maintain any such insurance.
20.3 Evidence of Insurance. Prior to CitY Council approval of this
Agreement, DEVELOPER shall furnish CITY satisfactory evidence of the insurance
required in subparagraphs 20.1 and 20.2 and evidence that the career is required to give the
CITY at least fifteen days prior written notice of the cancellation or reduction in coverage of
a policy. The insurance shall extend to the CITY, its elective and appointive boards,
commissions, officers, agents, employees and representatives and to DEVELOPER
performing work on the Project.
21. Notices.
All notices required or provided for under this Agreement shall be in
writing. Notices required to be given to CITY shall be addressed as follows:
City Manager
City of South San Francisco
P.O. Box 711
South San Francisco, CA 94083
Notices required to be given to DEVELOPER shall be addressed as follows:
Development Agreement for the
Oak Farms Project - City of South San Francisco
Page 11 of 13
June 9, 2000
A party may change address by giving notice in writing to the other party and thereafter all
notices shall be addressed and transmitted to the new address. Notices shall be deemed
given and received upon personal delivery, or if mailed, upon the expiration of 48 hours
after being deposited in the United States Mail. Notices may also be given by overnight
courier which shall be deemed given the following day or by facsimile transmission which
shall be deemed given upon verification of receipt.
22. A~reement is Entire Understanding.
This Agreement constitutes the entire understanding and agreement of
the parties.
23. Exhibits.
The following documents are referred to in this Agreement and are
attached hereto and incorporated herein as though set forth in full:
Exhibit A Legal Description of Property
Exhibit B Additional Conditions
24. Counterparts.
This Agreement is executed in two (2) duplicate originals, each of which
is deemed to be an original.
25. Recordation.
CITY shall record a copy of this Agreement within ten days following
execution by all parties.
IN WITNESS WI-IE~OF, the parties hereto have caused this Agreement to be
executed as of the date and year first above written.
CITY OF SOUTH SAN FRANCISCO:
By: Date:
Mayor
ATTEST:
Development Agreement for the
Oak Farms Project - City of South San Francisco
Page 12 of13
June 9, 2000
· I I II
By:
City Clerk
APPROVED AS TO FORM:
Date:
City Attorney
SUNSTREAM HOMES
By:
APPROVED AS TO FORM:
Attorney for DEVELOPERS
(NOTARIZATION ATTACHED)
MNRSW~40~001 ~AGREEMUNEXOAKFARMDA.609
Development Agreement for the
Oak Farms Project - City of South San Francisco
Page 13 of 13
June 9, 2000
Page ' ~.
Order No. 8860743
DESCRIPTION
CITY OF SOUTH S~l~ FRANCISCO
PARCEL ONE:
BEGINNING AT A POINT WHICH IS DISTANT SOITfH 15° 33' WEST, 277.5 FEET AND NORTH 74°
27' WEST, 160 FEET FROM THE INTERSECTION OF THE SOUTHERLY LINE OF GRARDAVENUE/
AND THE WESTERLY LINE* OF CHESTNUT AVENLTE IN SAID CITY OF SOUTH.SAN F.~CISCO,
CALIFORNIA; RUNNING THENCE SOUTH 15° 33' WEST, 14.25 FEET; THENCE NORTH 74° 27'
WEST, 265.62 FEET TO THE EASTERLY LINE OF OAK AVENUE; THENCE ALONG THE EASTERLY
LINE OF OAK AVENUE, NORTH 53° 15' EAST, 308.6 FEET; THENCE ON A CURVE TO THE
RIGHT.WITHARADIUS OF 122.47' FEET, THE CHORD OF WHICH CLTR%rE BEARS NORTH 74° 41'
52" EAST, 91.69 FEET TO THE WESTERLY LINE OF AN ALLEY; THENCE SOUTH 15° 33' WEST,
275.86 FEET TO THE POINT OF BEGINNING.
ASSESSOR'S PARCEL NO. 011-312-010 JOINT PLANT NO. 011-031-312-01A
PARCEL TWO:
BEGINNING AT A POINT THAT IS DISTART* SOUTH 15° 33' WEST~ 291.75 FEET AND NORTH 74°
27' WEST, 160 FEET FROM THE INTERSECTION OF THE SOUTHERLY LINE OF GRAND AVENI/E
WITH THE WESTERLY LINE OF CHESTNUT AVENUE, IN THE CITY OF SOUTH SAN FRANCISCO,
SAID POINT BEING ON THE WESTERLY LINE OF THAT CERTAIN TRACT OF LAND CONVEYED TO
LUIGI COSTIGLIO BY DEED DATED AUGUST 24, 1920, AND RECORDED SEPTEMBER 8, 1920,
IN BOOK 294 OF DEEDS, AT PAGE 379, RECORDS OF SAN MATEO COUNTY, CALIFORNIA;
THENCE RUNNING FROM SAID POINT OF BEGINNING, ALONG THE WESTERLY LINE OF SAID
COSTIGLIO TRACT AND ITS PRODUCTION SOUTHERLY, SOUTH 15° 33' WEST, 268.25 FEET;
THENCE, AT RIGHT ANGLES, NORTH 74° 27' WEST, 37.90 FEET; THENCE NORTH 36° 45'
WEST, 344..20 FEET TO THE SO~TERLY LINE OF OAK AVENUE; THENCE ALONG OAK
AV]~NllE, NORTH 53° 15' EAST, 73.00 FEET TO THE MOST WESTERLY CORNER OF THE PIETRO
UCCELLI 1.012 ACRE TRACT DESCRIBED IN DEED RECORDED OCTOBER 6, 1919, IN BOOK 289
OF DEEDS, AT PAGE 294, RECORDS OF SANMATEO COUNTY, CALIFOP, NIA; THENCE ALONG THE
SOUTHERLY LINE OF SAID 1.012 ACRE TRACT, SOUTH 74° 27' EAST, 265.62 FEET TO THE
POINT OF BEGINNING.
BEING A PORTION OF BI/RI BURI RANCHO.
ASSESSOR'S PARCEL NO. 011-312-210 JOINT PLANT NO. 011-031-312-21A
PARCEL THREE:
BEGINNING AT A POINT ON THE EASTERLY LINE OF OAK AVENUE, IN SAID CITY OF SOUTH
SAN FRANCISCO, CALIFORNIA, WHICH POINT IS DISTANT NORTH 74° 27' WEST, 249.22 FEET
AND SOUTH 53° 15' WEST, 492.28 FEET FROM THE INTERSECTION OF THE EASTERLY LINE OF
CHESTNUT AVENUE WITH THE CENTER LINE OF GRA/4D AVENUE; AND RUNNING THENCE SOUTH
36" 45' EAST, 140 FEET; THENCE SOUTH 53" 15' WEST, 100 FEET; THENCE NORTH 36° 45'
WEST, 140 FEET 'TO THE F2%STERLY LINE OF OAK AVENUE; THENCE ALONG SAID EASTERLY
LINE OF OAK AVENUE, NORTH 53° 15' EAST, 100 FEET TO THE POINT OF BEGINNING.
PARCEL FOUR:
BEGINNING AT A POINT ON THE NORTHEASTERLY LINE OF COMMERCIAL AVENUE, DISTANT
THEREON NORTH 74" 27' WEST, 312.06 FEET AND NORTH 36° 45' WEST, 198.36 FEET FROM
THE MOST WESTERLY CORNER OF BLOCK 79, AS SHOWN ON THAT CERTAIN MAP ENTITLED,
"SOUTH SAN FRANCISCO, SAN MATEO CO., CAL., PLAT NO. 1", FILED IN THE OFFICE OF
I [ Ii
Page 2 DESCRIPTION
Ordcr No. 886074'3
THE RECORDER OF SAN MATEO COUNTY ON MARCH 1, 1892, IN BOOK "B" OF MAPS, AT PAGE
6; THENCE ALONG THE NORTHEASTERLY LINE OF CO~9~ERCIAL AVENUE, NORTH 36° 45' WEST,
40 FEET; THENCE NORTH 53o 15' EAST, 100 FEET TO THE SOUTHWESTERLY BOUNDARY OF
LAND CONVEYED TO GEORGE UCCELLI AND WIFE, BY DEED RECORDED FEBRUARY 17, 1943, IN
BOOK 1053 OF OFFICIAL RECORDS, AT PAGE 64; THENCE ALONG SAID BOUNDARY, SOUTH 36o
45' EAST, 40 FEET; THENCE SOUTH 53° 15' WEST, 100 FEET TO THE POINT OF BEGINNING.
ASSESSOR' S PARCEL NO. 011-312-190
ASSESSOR'S PARCEL NO. 011-312-200
JOINT PLANT NO. 011-031-312-19A
JOINT PLANT NO. 011-031-312-20A
EXHIBIT B
ADDITIONAL CONDITIONS
Developer shall initially sell five (5) of the thirty-two (32) single family
homes in the Project at a price affordable to moderate-income households
with incomes no higher than one hundred twenty percent (120%) of the
median income related to household size, as established from time to time by
the U.S. Department of Housing and Urban Development (HUD) for San
Mateo County. Developer shall enter into any necessary agreements,
covenants or programs to require that future sales of these five (5) units will
be affordable to moderate-income households with incomes no higher than
one hundred twenty percent (120%) of the median income related to
household size, as established by HUD for San Mateo County. Eligibility
criteria, and all other rules and applicable requirements relating to such below
market rate units shall be established by the City. The criteria for .establishing
the price shall be as set forth in the City of South San Francisco Interim
Below Market Rate Housing Requirements attached hereto and as amended in
the prior to issuance of a certificate of occupancy for the individual unit.
Upon execution of this Agreement, Developer shall pay to City an amount
not to exceed one hundred seventy-two thousand four hundred eighty dollars
($172,480), which amount shall be deposited by City into a fund to provide
zero percent (0%) interest loans to qualifying first-time home buyers. If any
funds remain after the five units have been sold, the remaining funds shall be
used to finance either childc, are facilities or other public improvements (ex.
Art) in the City. Eligibility criteria, and all other rules and applicable
requirements relating to such fund shall be established by City; provided,
however, that such zero percent (0%) interest loans shall be made available to
qualify first time buyers of homes within the Project and in other areas of
South San Francisco.
J:\WPD~INRSVvMOS\001~AGREEY2000~April~oakfamsda_exb_427.doc revised 530
City of South San Francisco
Interim BelOw Market Rate Housing Requirements
California Community Redevelopment Law requires that fifteen percent of all new units
constructed within redevelopment project areas be affordable to low- or moderate-income
families. Therefore, the City of South San Francisco requires developers to meet the
affordable housing obligation and to construct the affordable units on-site. On a case by
case basis the City may consider off-site units within the redevelopment area or in-lieu
payments. However, the primary objective of the City's policy is to obtain actual
housing unit_s rather th~ equivalentcash, therefore indieu payments primarily apply to
fractional unit requirements. The 15 percent affordability requirement apl~lieS~o both for
sale and rental housing units.
FOR SALE UNIT REOUIREMENTS
For Sale Unit Price
The sale price of a Below Market Rate (BMR) unit is dependent on market conditions
and unit design factors. To establish the price of a unit the City has established minimum
design factors and a policy for fixing market variables that help determine the unit price.
The City revises BMR unit prices twice a year to adjust for changing market conditions.
30 percent as required by RDA.
Percentage of household
income used for housing
Median income level serving
Unit size
Unit location and design
Number of occupants in the
unit (for price calculation
purposes only; actual number
of occupants may not be
restricted)
Buyer down payment
'expected
BMR units are sold to households at 120% Area Median
Family Income (AMFI)
The number of bedrooms is equal to the average number
of bedrooms per unit in the entire development (rounded
to the nearest, whole bedroom).
Total Unit size (condominiums): generally comparable to
market rate units, but not less than:
Regular Senior Complex
Studio 460 sq.ft. 405 sq. ft.
1-Bedroom 550 , 507
2-Bedroom 800 602
3-Bedroom 1080 950
Units are dispersed throughout project, have access to all'
amenities, and are identical to market rate units from the
exterior. Flexibility with interior amenities and fixtures
is allowed.
Allowable sale price is based on the average number of
adults that can comfortably share the given unit size.
Unit Size # of Occupants
Studio 1
1-Bedroom 1.5
2-Bedroom 2.5
3-Bedroom 3.5
5 percent
Revised May I, 2000
· I ' [ Ii
Mortgage interest, rate used
to calculate sale price
Utility expenses
Association dues, property
insurance and taxes
Timing--when the unit price
is fixed
The City uses the 11th District Cost of Funds IndeX
rounded to the nearest 1/100 percent, plus 3 percent.
Rates are adjusted every 6 months in April and October
(Because of a compiling lag, the City will effectively be
using February's and August's rates).
Based on the average Utility expense for water, electric
lighting, gas heating, gas cooking, and gas water heating
for an attached 1-3 bedroom unit as published by the
Department of Housing and Urban Development from
time to time
Based on the average of condominium units for sale.
Surveyed and adjusted annually in April.
The unit price is fixed at the time the Planning
application is submitted. Developer can request a price
revision if the April price adjustment occurs between the
time the planning application was submitted and when.
the fn'st unit is available for occupancy (market or BMR).
Based on the terms above the City will set BMR unit prices in April and October. Using
the current values, the sale prices for units are as follows:
Unit Size # Occupants 100% MFI Monthly Mortgage Payment
Studio 1 person $189,249 $1,315
1 -bedroom. 1.5 persons $205,304 $ i ,427.
2-bedroom 2.5 persons $237,503 $1,651
3-bedroom 3.5 persons $269,792 $1,875
Buyer Selection
Priority for BMR units will be given to eligible households Who live and/or work in
South San Francisco. To identify eligible BMR bUyers the City will: 1. Work with the
County of San Mateo START program to identify a buyer; 2. Work with the California
Dream Alliance to identify a buyer. If the City is not able to identify an eligible buyer,
the City will allow the developer to advertise and find an eligible low- or moderate-
income buyer. The buyer must be a first-time homebuyer, as defined by federal
programs, i.e. the buyer has not owned a home in the past three years.
Resale Restrictions
The City has developed resale restrictions to retain the affordability of a BMR unit into
the future. Resale restrictions are recorded as deed restrictions and the terms and
conditions set forth run with the land. The initial buyer and all subsequent buyers, heirs,
and assigns are bound by the resale restrictions. Resale deed restrictions include:
1. The City's right of first refusal to purchase a BMR unit and/or allow the unit
to be resold at an affordable price to another eligible buyer,
2. The unit resale price pegged to the lower of Fair Market Value or a price
increase equal to the increase in median income for a family of four as
published by the Department of Housing and Urban Development, and
3. The resale procedures.
The deed resale restrictions for BMR units must be referenced in the development's
CC&R's.
Revised May I. 2000
I · I
Assumptiens:
30% Maxmimum monthly housing payment does not exceed 30% of household income, including utilities, insurance,
taxes, and home association dues.
$80 Average monthly utility expense
$175 Average asociation dues, includes taxes and insurance
.--- Home sales price = max mortgage + downpayment (typically 3 - 5 pement downpayment)
5% Downpayment
7.97% Interest Rate
Very Low-Income (50%)
30% of Monthly Monthly Max Monthly Maximum Sale Price
Household Annual Income Utility Assoc. Mortgage Sustainable Loan (Max Loan +
Size Income (Monthly) Expense Dues "Payment (assuming 30 yr, loan) 5% Down Payment)
1 $26,200 $655 $80 $175 $400 ($54,669) $57,546
2 $29,950 $749 $80 $175 $494 ($67,482) $71,034
3 $33,700 $843 $80 $175 $588 ($80,295) ' $84,521
--' 4 -$~t7,450-- $936 -- $80 $t75 $68t ..... ($93,t08}. $98,~309 .......
5 $40,450 $1,011 $80 $175 $756 ($103,359) $108,799
6 · $43,450 $1,086 $80 $175 $831 ($113,609) $119,589
7 $46,450 $1,161 $80 $175 $906 ($123,860) $130,379
8+ $49,450 $1,236 $80 $175 $981 ($134,110) $141,169
Lower-Income (80%)
30% of Monthly Monthly Max Monthly Maximum Sale Price
Household Annual Income Utility Assoc. Mortgage Sustainable Loan (Max Loan +
Size Income (Monthly) Expense Dues Payment (assuming 30 yr. loan) 5% Down Payment)
I $40,800 $1,020 $80 $175 $765 ($104,555) $110,058
2 $46,650 $1,166 $80 $175 $911 ($124,543) $131,098
3 $52,500 $1,313 $80 $175 $1,058 ($144,532) $152,138
4 $58,300 . $1,458 $80 $175 $1,203 ($164,349) $172,999
5 $63,000 $1,575 $80· $175 $1,320 ($180,408) $189,903
6 $67,650 $1,691 $80 $175 $1,436 ($196,296) $206,628
7 $72,300 $1,808 $80 $175 $1,553 ($212,185) · $223,352
,-..8+ $77,000 $1,925 $80 $175 · $1,670 ($228,244) $240,256
..
b. ,an Income (100/,)
30% of Monthly Monthly Max Monthly Maximum Sale Price
Household Annual Income Utility Assoc. Mortgage Sustainable Loan (Max Loan +
Size Income (Monthly) Expense Dues Payment (assuming 30 yr. loan) 5% Down Payment)
I $52,450 $1,311 $80 $175 $1,056 ($144,361) $151,959
2 $59,900 $1;498 $80 $175 $1,243 ($169,816) $178,754
3 $67,400 $1,685 $80 $175 $1,430 ($195,442) $205,729
4 $74,900 $1,873 $80 $175 $1,618 ($221,068) $232,703
5 $80,900 $2,023 $80 $175 $1,768 ($241,569) $254,283
6 $86,900 $2,173 $80 $!75 $1,918 ($262,070) $275,863
7 $92,900 $2,323 $80 $175 $2,068 ($282,571) $297,443
8+ $98,850 $2,471 $80 $i75 $2,216 ($302,901) $318,843
Moderate Income (120%)
30% of Monthly Monthly Max Monthly Maximum Sale Price
Household Annual Income Utility Assoc. Mortgage Sustainable Loan (Max Loan +
Size Income (Monthly) Expense Dues Payment (assuming 30 yr. loan) 5% Down Payment)
I $62,950 $1,574 $80 $175 $1,319 ($180,237) $189,249
2 $71,900 $1,798 $80 $175 $1,543 ($210,818) $221,359
3 $80,900 $2,023 $80 $175 $1,768 ($241,569) $253,648
4 $89,900 $2,248 $80 $175 $1,993 ($272,321) $285,937
5 $97,100 $2,428 $80 $175 $2,173 ($296,922) $311,768
6 $104,300 $2,608 $80 $175 $2,353 ($321,523) $337,599
7 $111,500 $2,788 $80 $175 $2,533 ($346,124) $363,430
8+ $118,650 $2,966 $80 $175 $2,711 ($370,554) $389,082
~ Price (calculated using the average number of adults that can comfortably occupy the given unit
~. .Size Occupancy 50% MFI 80% MFI 100% MFI
Studio 1 person $57,546 $110,058 $151,959
1-bedroom 1.5 persons $64,290 $120,578 $165,356
2-bedroom 2.5 persons $77,778 $141,618 $192,241
3-bedroom 3.5 persons $91,265 $162,569 $219,216
size)
120%MFI
$189,249
$205,304
$237,5o3
$269,792