Item 19 - Density Bonus Agreement No. 2024-02 Property Located at 510 and 520 N. Harbor

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PLANNING COMMISSION DRAFT SUBJECT TO CITY COUNCIL APPROVAL OPERATION OF THE PROJECT BY DEVELOPER 4.1 Payment of Density Bonus Setup Fee. A Density Bonus Setup Fee in the amount of Fifteen Thousand Nine Hundred Sixty Seven Dollars and Ninety CeA ($15,967.90), will be charged to the Developer and must be paid prior to execution of this Agreement. 4.2 Recording of Documents; Priority. 4.2.1 Prior to issuance of building permits for the Project, Developer and the City shall record or cause to be recorded in the Official Records for Orange County, California, an executed original of this Agreement. City shall cooperate with Developer in promptly executing in recordable form this Agreement. The date of recording of the Agreement shall be the Effective Date of the Agreement. Upon the date of recording, the terms and conditions of this Agreement shall be binding upon and run with the Property and Project for the Term of this Agreement. It is the express intent and agreement between the Parties that this Agreement shall remain binding and enforceable against the Property, the Project, and the Units to ensure compliance with the State Density Bonus Law and City Density Bonus Law, and to ensure the continued supply of Affordable Units in the Project, except as expressly set forth in this Agreement. 4.2.2 The Agreement shall be recorded against the Property and have priority over those matters of public record, except as approved in writing by the City; provided, however, prior to issuance of a certificate of occupancy (or its equivalent) for the Project, the Parties may execute an amendment to this Agreement or other appropriate instrument that ensures that the requirements of this Agreement are properly recorded against each Affordable Unit and memorializes Owner's obligation to provide the Affordable Units on a for -sale basis in accordance with this Agreement and, upon the recording of such instrument as to the individual Affordable Units, the City may determine, in its sole and absolute discretion, to a release of this Agreement to the Property as a whole. 4.2.3 Prior to issuance of a certificate of occupancy (or equivalent) for any Unit, Developer, at its sole cost and expense, shall deliver to City evidence that this Agreement is senior to any other lien, deed of trust, mortgage, or other interest in the Property or the Project. The City shall have not less than ten (10) days to determine, in its sole and absolute discretion, that this Agreement (or an amended version of the Agreement restricting the Affordable Units) has senior rights. If City disapproves the evidence provided by Developer, then Developer agrees and acknowledges that City may withhold a certificate of occupancy unless and until Developer provides evidence satisfactory to the City demonstrating priority of this Agreement or an amendment thereto. 4.3 Occupancy Levels. RESERVED 12 55394.00101\n^^^'�.-.a4,7 ' 42998272.1