ONE BROADWAY PLAZA DEV.- EXHIBITS

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Development Agreement No. 2004-01 tentative Parcel Map No. 2004-02 ane 14, 2004 Page 3 Analysis of the Issues Development Agreement On March 15, 2004, a public hearing was held by the City Council regarding the One Broadway development. After receiving public testimony on the project and a discussion by the City Council, the various entitlements under consideration were continued for 60 days. During the continuance period, staff was directed to meet with a newly created Council Ad Hoc Committee, which would assist in preparing the conditions for the development agreement. Also, the Council identified specific issues and standards the development agreement should address, including construction costs, construction materials, traffic mitigation measures, and benchmarks for issuance of building permits. Since the City Council public hearing, staff has met on numerous occasions with the Ad Hoc Committee and the applicant. Based on these meetings and extensive negotiations between staff and the applicant, a development greement has been prepared (Exhibit 1). This agreement has incorporated the major issues raised at the March City Council hearing as well as those issues raised by the Ad Hoc Committee. These issues include: 1. Prohibiting the Developer from being issued any building permit for the Project until it provides evidence that the Developer has obtained binding commitments for lease of not less than 50 percent of the net leasable area in the Project from tenants who would qualify as "Investment Grade Tenants" (BBB -or greater) as rated by either Standard & Poor's or Moody's rating agencies. Non -rated publicly held, or private companies with a rating of BB or BB+ may meet this requirement by providing a "Shadow Rating" from either agency depicting a minimum of a neutral credit outlook. Law firms shall provide evidence of a rating of "AV" from Matindale-Hubbell or equivalent rating agency. Binding commitments to lease shall be in a form and content normally accepted by conventional lending institutions and subject to the review and approval of the City's Executive Director of Planning and Building which shall not be unreasonably withheld; 2. Requiring the developer to submit evidence, for the provision of the payment of "Prevailing" and/or "Area Standard Wages" as appropriate, that it has entered into a labor agreement with the Los Angeles and Orange Counties Building and Construction Trades Council. Said agreement shall also include provisions that encourage the referral