25E - AGMT - DEFER PAYMENT 888 N. MAIN

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Eastcom Corporation Agreement November 20, 2018 Page 2 proposed. The Owner is the process of obtaining building permits to finalize the conversion of the building on the property. Salient Issues of the Agreement: Under the Proposed agreement, the City and the Owner would agree to the following salient issues: • Fee Deferral and Amount. The deferred collection of the RDF in the estimated amount of approximately five hundred two thousand dollars ($502,000). • Deferral Period. The RDF will be deferred until prior to the final inspection or issuance of a certificate of occupancy for Project, or one (1) year from the date of issuance of the building permits for the Project, whichever comes first. • Extension. An extension of the Agreement may only be granted by the City Council. • Accrual of Interest. The amount of fee not paid at the time of building permit issuance shall be subject to accrual of interest at the annual rate of interest that the City normally eams on its investment of pooled funds. • Payment Security. Payment of fee is a personal obligation of the Owner, or any successor secured by the Property, and if left unpaid, shall be collected as a special assessment against the property. • Recordation of Agreement and Lien Against Property. Upon the execution, the Agreement will be recorded in the Official Records of the County of Orange and the Agreement shall contractually bind Owner to pay the RDF and shall constitute a lien against the Property. Supporting Facts for Approving the Request: The intended goal of the collection of City fees at the time of building permit issuance is to ensure that payment of the fees is completed prior to the vesting of development rights by a project proponent. City fees for development projects include customary fees to defray costs for the City to provide development services under the permit, outside agency fees as applicable, and established development impact fees. While deferral of collection of City fees is not a routine practice, the City, in the past, has authorized deferral of certain development impact fees on a broader basis under temporary ordinance during periods of economic downturn. The most recent deferral action was approved by the City Council in 2012 for a twelve-month period. At this time, it is not recommended for the City Council to consider or implement a broad deferral ordinance but rather, reserve the right to consider such requests based on the merits and the extenuating circumstances of a project through an agreement process. Relating to this request, the Owner is one of the first to initiate a significant adaptive reuse project within the City since the City's adaptive reuse ordinance became effective in 2014. The Property is located within the Adaptive Reuse Incentive Area and is an Eligible Building, as defined in the Adaptive Reuse Ordinance. The Property is located within the Midtown Specific Plan (SP -3) area and has a General Commercial (GC) land use designation. The intent of the ordinance is to 25E-2