Item 05 - Crossroads at Washington Affordable Housing Project at 1126, 1136, & 1146 East Washington Ave.

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Crossroads at Washington Affordable Housing Project at 1126, 1136, & 1146 East Washington Avenue June 21, 2022 Page 10 2 8 1 5 Capital Improvement Fund, Damage and Restoration, Transfer of Mortgages of Lessor’s Interest, Tenant’s Right to Encumber Leasehold Estate, Limitation on Lessor’s Termination Right, Leasehold Mortgagee Foreclosure Period, Multiple Leasehold Mortgages, Condemnation and Insurance Proceeds, and Effect of Foreclosure upon Base Rent, Successors and Assigns. Finally, the City and the County needed to make revisions to the County and Housing Authority’s base rents in order incorporate a loan from the Orange County Housing Finance Trust and adjust the residual receipt split. The revised Ground Lease is attached as Exhibit 11 with these revisions in redline format. The revised Ground Lease has been pre-signed by Related to acknowledge their acceptance of the terms. Land Use Covenant with the Department of Toxic Substances Control The property at 1126, 1136, & 1146 East Washington Avenue (the “Property”) has been found to have existing on-site environmental contaminants. Following their oversight of the Project, the State of California Department of Toxic Substances Control (“DTSC”) has determined that a Land Use Covenant is reasonably necessary to protect present or future human health or safety or the environment as a result of the presence on the property of hazardous materials as defined in Health and Safety Code section 25260. A limited portion of the Property will be subject to the restrictions of the Land Use Covenant (“Restricted Area”), and is more particularly described in Exhibit C of the Land Use Covenant. The Restricted Area is defined and bound by specific GPS coordinates. The Property has been investigated and/or remediated under DTSC’s oversight. DTSC approved a Supplemental Site Investigation, Screening Level Human Health Risk Assessment, and Removal Action Workplan in accordance with Health and Safety Code, division 20, chapter 6.8. The remediation activities conducted at the Property include (1) excavation and offsite disposal of soil contaminated with arsenic, lead, chromium, and petroleum hydrocarbons, and (2) institutional controls to restrict construction over the area of soil vapor contaminated with Tetrachloroethene beneath the western portion of the North parcel. However, hazardous substances, including Tetrachloroethene, remain at the Property above levels acceptable for unrestricted land use. As a result of the continued presence of hazardous substances, which are also hazardous materials as defined in Health and Safety Code section 25260, at the Property, DTSC has concluded that it is reasonably necessary to restrict the use of the Restricted Area, in order to protect present or future human health or safety or the environment, and that the Land Use Covenant is required as part of the DTSC-approved remedy for the Property. DTSC has also concluded that the Property, as remediated and when used in compliance with the Environmental Restrictions of the Land Use Covenant, does not present an unacceptable risk to present and future human health or safety or the