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HomeMy WebLinkAbout75B - PH - NEW PROPERTY OWNER 200 E FIRST AMERICAN WAYRYAN OGULNICK (FORMERLY OWNED BY VINEYARD DEVELOPMENT CORPORATION) REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: AUGUST 5, 2013 TITLE: PUBLIC HEARING - MODIFY DEVELOPMENT AGREEMENT NO. 2012-01 TO ALLOW AN AMENDMENT AND ASSIGNMENT TO A NEW PROPERTY OWNER FOR THE MET DEVELOPMENT PROJECT LOCATED AT 200 EAST FIRST AMERICAN WAY - GENESIS REAL EST GROUP, APPLICANT CLERK OF COUNCIL USE ONLY: APPROVED ? As Recommended ? As Amended ? Ordinance on 1" Reading ? Ordinance on 2nd Reading ? Implementing Resolution ? Set Public Hearing For CONTINUED TO FILE NUMBER CITY RECOMMENDED ACTION Adopt an ordinance amending Development Agreement No. 2012-01 directing the City Manager to authorize the assignment and amendment of Development Agreement No. 2012-01 for The Met development project to First Rock Santa Ana, LLC, development entity for Genesis Real Estate Group, subject to the finalization of the sale of the subject property to First Rock, with such non- substantive changes as may be approved by the City Manager and City Attorney. 2. Adopt a resolution approving an addendum to the Mitigated Negative Declaration and Mitigation Monitoring Program, Environmental Review No. 2011-46. PLANNING COMMISSION ACTION On July 8, 2013, the Planning Commission recommended that the City Council direct the City Manager to authorize the assignment and amendment of Development Agreement No. 2012-01 for The Met development project to First Rock Santa Ana, LLC, development entity for Genesis Real Estate Group, subject to the finalization of the sale of the subject property to First Rock, with such non-substantive changes as may be approved by the City Manager and City Attorney; and approve and adopt an addendum to the Mitigated Negative Declaration and Mitigation Monitoring Program, Environmental Review No. 2011-46 by a vote of 7:0 to facilitate a change in ownership for The Met development project located at 200 East First American Way. SUMMARY In 2012, the City Council approved this five-story, 271-unit multi-family project, which would be constructed over a two-level parking garage. The project includes a variety of on-site amenities for its residents, commensurate with other recent projects approved or constructed in the City. A .8-acre portion of the site was left for a future high-rise project, and this portion will require subsequent review and approval by the Planning Commission and City Council. The development agreement for the project prohibits transfer of the development rights within the first two years. The two-year period expires April 15, 2014. 75B-1 DA No. 2012-01 August 5, 2013 Page 2 The property was placed in voluntary receivership earlier this year and the Judge appointed a receiver to sell the property. Consequently, this request stems from the receiver's intent to sell the property to Genesis Real Estate Group. The details surrounding the receivership, Genesis Real Estate Group and the development project are attached in the Planning Commission staff report (Exhibit A). The Planning Commission made no changes to the terms of the agreement outlined in Exhibit A. FISCAL IMPACT There is no fiscal impact associated with this action. J y . Trevino Executive Director Planning and Building Agency SK:rb -sk\wp5l keportsOM 2-01 Mod.cc Exhibit: A. Planning Commission Staff Report 75B-2 REQUEST FOR Planning Commission Action PLANNING COMMISSION MEETING DATE: JULY 8, 2013 TITLE: PUBLIC HEARING - FILED BY DOUG COBB, GENESIS REAL ESTATE GROUP TO MODIFY DEVELOPMENT AGREEMENT NO. 2012-01 TO ALLOW AN AMENDMENT AND ASSIGNMENT TO A NEW PROPERTY OWNER FOR THE MET DEVELOPMENT PROJECT LOCATED AT 200 EAST FIRST AMERICAN WAY PLANNING COMMISSION SECRETARY APPROVED ? As Recommended ? As Amended ? Set Public Hearing For DENIED ? Applicanrs Request 11 Staff Recommendation CONTINUED TO Prepared by Sergio Klotz xeculive Director Planning Mana r RECOMMENDED ACTION Recommend that the City Council: Direct the City Manager to authorize the assignment and amendment of Development Agreement No. 2012-01 for The Met development project to First Rock Santa Ana, LLC, development entity for Genesis Real Estate Group, subject to the finalization of the sale of the subject property to First Rock, with such non-substantive changes as may be approved by the City Manager and City Attorney. 2. Approve and adopt an addendum to the Mitigated Negative Declaration and Mitigation Monitoring Program, Environmental Review No. 2011-46. DISCUSSION Request of the Applicant Doug Cobb of Genesis Real Estate Group is requesting approval of an amendment and assignment of an existing development agreement to facilitate a change in ownership for the development project known as The Met, a multi-family residential project located at 200 East First American Way. Protect Location and Background The project site lies within the MacArthur Place District Center (SD 43), a master planned, 62-acre mixed-use project located on the north side of MacArthur Boulevard between Main Street and the Newport-Costa Mesa (SR-55) Freeway. The site is a vacant, 3.1-acre rectangular shaped parcel situated at the northeast corner of MacArthur Boulevard and MacArthur Place. Currently, the MacArthur Place District Center area is developed with approximately 894,000 square feet of office uses, 20,000 square feet of retail space, a 7-story, 251 room DoubleTree Hotel, a 190-room Courtyard by Marriott hotel and 346 for-sale and rental residential units. EXHIBIT A 75B-3 DA No. 2012-01 July S, 2013 Page 2 Surrounding land uses include several office buildings to the north, the Hutton Center retail and office development to the south, a parking structure to the east used by First American, and the Pinnacle Apartments, a mixed use retail/residential project to the west (Exhibits 1 and 2). Appointment of Receiver and Assignment of Development Agreement On April 16, 2012 Vineyard Development Company (VDC) received approval for a 271-unit multi-family residential project including; a development agreement, amendment to the Specific Development zoning, a subdivision map, and site plan review approval. Subsequent to the approval of the project the developer, Vineyards Development, and their financial partners entered into voluntary court receivership in order to resolve various property interest disputes. On September 7, 2012 Judge James C. Chalfant appointed David Wald as the property's Receiver granting authority to take possession of and manage the property (Exhibit 3). On November 27, 2012 the Court authorized Mr. Wald to list the property for sale with Jones Lang LaSalle, a real estate brokerage firm (Exhibit 4). The property was subsequently marketed for sale and various development companies were considered. On April 16, 2013 the Court authorized Mr. Wald to sell the property to Genesis Real Estate Group, subject to the assignment of the Development Agreement to Genesis by the City and its modification to remove the requirement that Ryan Ogulnick be involved in the development of the property (Exhibit 5). Genesis Real Estate Group in turn formed First Rock Santa Ana, LLC as the single-purpose entity for the project. The amendments to the Development Agreement reference both First Rock and Genesis. 75B-4 DA No. 2012-01 July 8, 2013 Page 3 Genesis Real Estate Group is an experienced land development company who have constructed a wide range of quality residential projects throughout the country. A brochure detailing their project experience is included as an attachment to this staff report (Exhibit 6). Staff recommends approval of the amendment and assignment of the Development Agreement (Exhibit 7). Public Notification The project site is located adjacent to the boundaries of the Sandpointe Neighborhood Association. The president of the neighborhood association was notified by mail 10 days prior to this public hearing. Further, the site was posted with a notice advertising this public hearing, a notice was published in the Orange County Reporter and mailed notices were sent to all property owners within 500 feet of the project site, as well as concerned citizens listed on the Permanent Notification List. At the time of this printing, no correspondence, either written or electronic, had been received from the neighborhood presidents or any members of the public. CEQA Compliance A Mitigated Negative Declaration (MND) was prepared for The Met development and adopted in January of 2012. The project proposed development of a 284-unit multi-family apartment complex on approximately 3.1 acres located at 200 East First American Way. An approximately 0.6-acre portion of the site located on the northeast corner was identified to remain undeveloped and vacant. As part of the final deliberations on the project, the City Council approved modifications to the site plan which increased the size of the vacant area to 0.82 acres and shifted its location to the southeast corner of the project site. The project changes did not alter the findings of the original MND, but an addendum has been prepared in order to memorialize these changes and conform the MND to the project approved in the Development Agreement. Staff recommends the approval and adoption of an addendum to the Mitigated Negative Declaration and Mitigation Monitoring Program, Environmental Review No. 2011-46 (Exhibit 8). 75B-5 orvy l 1 sktrepotls1DA1201 Mod.010813. pc DA No. 2012-01 July 8, 2013 Page 4 Attachments: Exhibit 1 - Vicinity Map Exhibit 2 - Land Use Map Exhibit 3 - Court Order Appointing Receiver Exhibit 4 - Court Order Authorizing Property Listing Exhibit 5 - Court Order Selecting Buyer Exhibit 6 - Genesis Real Estate Group Company Brochure Exhibit 7 - Development Agreement Exhibit 8 - Negative Declaration Addendum 75B-6 M1 ii R 81 81 MI MI N Ml SD-63. 111 SD-17 MI C7 M1 MI I CS -- it - -1i •?I ? ~ a \/ I1 lu____I I ii - MI 611 MI II `,- 1 RI iI M 4CR M7 J _ IL__q 4 ?I Ml1 L ?I'I_?I P_II II P RI x 64 M7 L P CR MI MI A i fllu R7 lfl1 R / ?. SD-43 p 1 SD-43 ?, I R1 R1 RI • RI ?.. ?,.w SO4\ C< ST 43 I , RI C5 so•3. PROJECT SITE RI - - - AC AN HUN BL SMt CS \ SD-76 ?`jE?, ql A Y U SD-76?- / I RI I ql, D 1 €€ SD-76 PRO • JAP Mm SD-76 ? RI ' R1 1 RI • RI Ay4 C I t y o I T u E t i n nll RI RI f RI % MI RI nl nl j n CSl SUNFLOWER AV. (?1 C2 AI GENEAALAGWWMAALI I OR COMMERCALRESIOENIIAL RI SINGLE/AWLYRESIOENlAL .R PAWNGMOLEFICATM GC GOVERNMENTCMA R TWOFAWLYAMENCE C-SM COMMERDAL SOM "N MI LIGHT INDUSTWAL q MULWLEMNSRYMULTPIE CI COMMUNRYCOMMERCIM Ml HEAMYWOUSIRAL FMILYMSIDMCE CI-MD COMMCOMMEMMUAID5EDA1 Nsmu MO MILRAAY OPERA1NNr5 R4 SUBURBAN APAUNKNIS Cl GENEMLCOMMERCIAL 0 OPENSPACE RE RE511ANRAl ESTATE Cl CENTRABUSINESS P PAMESSIONAL SO SPECYK DEVELOPMENT CYA CEMWIBUSWESLAROSTMRLAGE PCD PLANNEDCOMAWNITY DEVELOPMENT SP SPEMPLAN C4 PLANNED SMOPRWL (EMFR PRD PLANNED RESIDENTIAL DEVELOPMENT CS ARUWALCOMMEMML I DA 2012-01-MOD A^ e` THE MET AT SOUTH COAST - _ _50OPEET 1-=,DDO FEET 200 EAST FIRST AMERICAN WAY P L A N N I N G A N 0 B U I L D I N G A G E N C Y EXHIBIT 1 75B-7 I N D U S T R I A L ?' W WfiWN ?r+$?i.I ? I? IAOUSiNAI ? WWSIPoN O 3 ALTON AV. G '< INDUSTRIAL ? INDUSTRIAL i INOVf1R1Al ? WWfiWN Y2j$y G COLUMBINE AV. g o hflrl Wei f? OIIICE FIRST ¢x?' SS uFal i AMFPICAN ryy = Y rAPYJNG Jy i MAJESTIC DR. •' • ? ¢ N ? _KI`^[JlJ R[ 3 I 0[ N 1 1 1 l U O! f 1< f Z < y ?N 3 ? FIRSTAMERICAN WAY r 7"`IC??3 ]lfYfl oouff[ S PRQIEGT F+. rAmuNc rRfE IlOrfl S? SREi STRUCTURE MAC ARTHUR BLVD, n, f e r i .. 11 ! xrFf coPoaf[aa''uss tRAUR P(4 FR E 0fNTIAI 0lllCf I V F DA 2012-01-MOD THE MET AT SOUTH COAST 200 EAST FIRST AMERICAN WAY P L A N N I N G A N D B U I L D I N G A G E N C Y EXHIBIT 2 75B-8 l 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 0 to w cL. 1t? cWn A Barry P. King, Esq. (State Bar No. 53890) KINO S OF ARRY P W OFFICP L E: D nt A Sur ? ? Court o California p f L l t A C . . A 9255 Sunset Boulevard, Suite 920 y ng es ou o nge es y os oun Los An eles, California 90069 SEP 07 2012 Tel: 10 277-0420 Fax: 310;277-0490 E -Mail: kin> law pacbell.net John A. Clarke, rxeaullva Offleariciorlt By?i~?dccial?, Deputy Attorney for Plaintiffs and Cross-Defendants, VDA SANTA ANNEX FAJARDO LLC and RYAN OGULNICK ANA , Robert II. Bisno Esq. (State Bar No. 83284) Law Offices of)tobert . Bisno 9255 Sunset Boulevard, Suite 920 Los An eles, California 90069 Tel: 10) 277-3670 Fax: 310)277-3787 Attorney for Plaintiff and Cross-Defendant, RYAN OGULNICK SUPERIOR COURT OF THE STATE OF CALIFORNIA COUNTY OF LOS ANGELES 'A ANA, LLC, a California lity compan ; RYAN an indtvidyual, Plaints, vs. an Case No. BC 484031 (RELATED TO CASE NO. BC 483770) (Assigned for all purposes to Hon. Terry Green, Dept. 14] ORDER APPOINTING RECEIVER AFTER REARING Dale Filed. September 4, 2012 Date of Next Hearing: September 7, 2012 Time: 9:30 a.m. 21 alifotnia limited partnership; ILUS GP Dept, 85 US LL C, a California Grnited partnership; The Honorable James C. Chalfant 22 nd DOES 1 through 100, Inclusive, 23 Defendants. I 24 25 On August 30, 2012, a hearing on the Order to Show Cause brought by 26 VDB SANTA ANA, LLC ("VDB") and RYAN OGULNICK ("Ogulnicv') for 27 injunctive relief in the VDB Santa Ana, LLC v. Protilus, LP, et al. matter (Case No. BC 2g 484031), which has been consolidated with the Protilus Investors, LLC v. Ridgemount -I- @ RNA" ORIAR APrOINTING RECEIVER AFTER HEARING I 75u-,'OBIT 3 1 2 3 4 5 6 7 8 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Investments, Inc. proceeding (Case No. BC 484770), the Hon. James Chalfant, Judge, presiding. Appearing on behalf of VDB and Ogulnick was Barry 11. King, Esq. Robert H. B isno, Esq. appeared on behalf of Ryan Ogulnick. Don Howarth, Esq. and Padraic Glaspy of the law firm of Howarth & Smith, appeared on behalf of Protilus Investors, LLC, Barry L. Levine and Ari Schottenstein. Michael C. Schneidereit, Esq, of Jones Day appeared on behalf of Ridgemount Investments, Inc. and David Ulmer. After discussion between the Court and counsel regarding the status of the proceedings and the proposed independent director for VDC, the Court made the following orders: A 1. Appointment of Receiver. Ja" W JA ("Receiver") is appointed as receiver for VDC At The Met, LLC, to take possession of all property of said entity pending further order of the Court. 2. Receiver's Oath and Bond. The Receiver shall immediately, and before performing any duties: (l) execute and file a receiver's oath; and (2) file the bond required by Code of Civil Procedure §567(b) in the amount of $?. ?ID - A P/ Nl oryo ' n ltd ?fc 3. Receiver's Fees. The Receiver may charge for the Receiver's services no more than per hour. G U M t A0Y t y r6 vvt ,g Bl L &6>e -V 4. Disclosure. The Receiver shall r neQdQQQQitaote disclose to a oarues any financial relationship between the Receiver and any company hired to assist in the management of the receivership property. 5. General Duties. After qualifying, the Receiver shall; (a) take possession of and manage the propctty (being vacant real property owned by VDC At The Met, LL,C) and manage the affairs of VDC At The Mel, L. ,C so, as to,maxiinizenxer.®sds Qula.? of the vacant real property his exts in'g loan,,-t necessary to he Reccivetr "ni:_r?ereasncta la4y.olatimize?c.uiaxirxiia¢-clx?nafie?th?v?Caat -2- 756,10 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 -3- real prope . The Receiver is VDC at The Met, LC. The R actions taken with the 1 con: absent a Court order. The R action taken or made wi the irized sell the real property owned by e snot authorized to contest previous f all Members of VDC At The Met, LLC, is not authorized to contest any decision or f the two Members of VDC at The Met, LLC, those two M ers being this Invest on the one hand and VDB Santa Ana, LLC, on a other hand. (b) care for the property and may incur the expenses necessary for that care. 6. Prohibited agreements. The Receiver shall not enter into an agreement with any party to this action about the administration of the receivership or about any post receivership matter. 7. Expenditures. The Receiver shall expend money only f'or the purposes authorized in this Order. Unless the court orders otherwise, the Receiver shall to the extent practical hold the balance in interest-bearing accounts in accordance with Code of Civil Procedure §569. 8. Monthly accounting of Receiver's iucome, expenses, and fees. (a) The Receiver shall each month prepare and serve on the parties, but not tile, an accounting of the income and expenses incurred in the administration of the receivership property, including the Receiver's fees and expenses. (b) The Receiver may pay the Receiver's own fees and expenses only by the following procedures: (i) By serving on all parties a notice of intent to pay to which no objection is served on the Receiver within twenty (20) days of the date the notice is served; (ii) By serving and filing a request for interim payment, which the court then approves; 75B-11 1 2 3 4, 5 6 7 8 9 10 11 12 13 14 is l6 17 18 19 20 21 22 23 24 25 26 27 28 (iii) By obtaining and tiling an agreement among all of the parties approving the payment, which the court then approves; or (iv) By filing the Receiver's final accounting and report, which the court then approves. (c) The Receiver shall not reimburse the Receiver for the Receiver's general office administration expenses or overhead without court approval. These expenses include, for example, office supplies and employee The, Q ec-f%ve? mu7 e r soloy a?Ph S? PMr payroll, benefits, and to olte'i_5 grcor. Fw..H. e„d reVPgety M4wY µrs 9. Management. The Receiver shall operate the property and take t IAI^ possession of all accounts relating to the property. The Receiver may purchase wa r materials and supplies reasonably necessary to administer the receivership property. ?A The Receiver may do all the things, and incur the risks and obligations, ordinarily done or incurred by owns, managers, and operators of businesses and property similar to that possessed by the Receiver, except the Receiver shall not make any capital improvements or investments to the property without prior court order. All actions of the Receiver shall be subject to a court order, May Lose 41AO Flt%aY"? ? 10, Bank accounts. The Receiver Qeu++"'}'J/// V« a? ?Ma M CAAd hts d1rcetle r (a) may establish accounts at any fins cial institutions insured by an agency of the United States government that are not parties to this proceeding. (b) shall deposit in those accounts funds received in connection with the receivership property, and (c) shall deposit in interest-beating accounts money not expended for receivership purposes. 11, Court instructions. The Receiver and the parties may at any time apply to this Court for fii Cher instructions and orders and for additional powers necessary to enable the Receiver to perform the Receiver's ditties properly. 12, ]insurance. -4- 75B-12 11 2 ] I 4 5 6 7 x 9 to 11 12 13 14 15 16 17 18 0 20 21 22 23 24 25 26 27 28 (a) The Receiver shall determine upon taking possession of the property whether there is sufficient insurance coverage, (b) The Receiver shall notify the insurer that the Receiver is to be named as an additional insured on each insurance policy on the property. (c) If the Receiver determines that there is not sufficient insurance coverage on the property, the Receiver shall immediately notify the parties and shall procure sufficient liability insurance on the property (excluding earthquake and flood 'unsurance). (d) If the Receive does not bave sufficient funds to obtain insurance, the Receiver shall seek instructions from the Court on whether to obtain insurance and how it is to be paid for. 13. Employment of Attorney. Any employment of an attorney shall be subject to Court approval. 14. Taxpayer ID numbers. The Receiver may use any taxpayer identification numbers relating to the property for any lawful purpose. 15. Receiver's final report and account and discharge. (a) Motion required. Discharge of the Receiver shall require a court order upon noticed motion for approval of the Receiver's final report and account and exoneration of the Receiver's bond. (b) Time. Not more than 60 days after the receivership terminates, the Receiver shall file, serve and obtain a hearing date on the motion for discharge and approval of the final report and account. (c) Notice. The Receiver shall give notice to all persons of wham the Receiver is aware who have potential claims against the receivership estate. (d) Contents of motion. The motion to approve the final report and account and for discharge of the Receiver shall contain the following: -5- 75B-1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 i 19 20 21 22 23 24 25 26 27 28 (i) Declaration or declarations. A declaration or declarations (1) stating what was done during the receivership, (2) certifying the accuracy of the final accounting, (3) stating the basis for the termination of the receivership (such as foreclosure or reinstatement), and (4) stating the basis for an order for the distribution of any surplus or payment of any deficit; (ii) Accounting summary. A summary of the receivership accounting, which shall include (1) the total revenues received, (2) the total expenditures identified and enumerated by major categories, (3) the net amount of any surplus or deficit, and (4) evidence of nceessary supporting facts. 16. Plaintiffs notice to receiver. Plaintiff shall promptly notify the Receiver in writing of the names, addresses, and telephone numbers of all parties who appear in the action and their counsel. The parties shall give notice to the Receiver of all events that affect the receivership. 17. Bankruptcy - Plaintiff's duty to give notice. If a defendant tiles a bankruptcy case during the receivership, plaintiff shall give notice of the bankruptcy case to the Court, to all parties, and to the receiver by the closing of the next business day after the day on which plaintiff receives notice of the bankruptcy filing. 18. Bankruptcy Receiver's duties. If the Receiver receives notice that a bankruptcy has been filed and part of the bankruptcy estate includes property that is the subject of this Order, the Receiver shall have the following duties: (a) Turn over property if no relieffrom stay will be sought. The Receiver shall immediately contact the party who obtained the appointment of the Receiver and deterruine whether that party intends to move in the bankruptcy court for art order for (1) relief from the automatic stay, and (2) relief from the Receiver's obligation to turn over the property (I I U.S.C. §543). If the party has no intention to make such a motion, the Receiver shall immediately turn over the -6- 75B-14 I property to the appropriate entity either the trustee in bankruptcy if one has been 2 appointed or, if not, to the debtor in possession and otherwise comply with 11 3 United States Code section 543. 4 (b) Retain bankruptcy counsel. The Receiver may petition the 5 Court to retain legal counsel to assist the Receiver with issues arising out of the 6 bankruptcy proceedings that affect the receivership, 7 19. Failure to turn over property. A receiver who fails to turn over 8 the property in accordance with this Order shall not be paid for time and expenses after 9 the date the receiver should have turned the property over. 10 20. Other orders. Other orders are as follows: 11 _ 12 13 14 _ 15 16 PRELIMINARY INJUNCTION 17 21. THE COURT ORDERS the following: 18 (a) Turn over property. Immediately turn over possession of the 19 property of VDC At The.Met, LLC to the Receiver when the appointment becomes 20 effective. 21 (b) Turn over related items. Immediately turn over the to the 22 Receiver all keys, books, documents, and records relating to the property and/or VDC 23 At The Met, LLC, and advise the Receiver of federal taxpayer identification numbers 24 relating to the property. 25 (c) Insurance. 26 (i) Immediately advise the Receiver about the nature and extent of 27 insurance coverage on the property. 28 7- ?? ` l?nnen A nnrn>.n?w?n Omcnmo ncxn ueu>?an _ 75B-.1 5 2 I 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (ii) Immediately name the Receiver as an additional insured on each insurance policy on the property, and (iii) DO NOT cancel, reduce, or modify the insurance coverage. (d) Restraints. Refrain from (1) committing or permitting any waste on the property or any act on (lie property in violation of law or removing, encumbering, or otherwise disposing of any of the fixtures on the property; (ii) demanding, collecting, or in. any other way diverting or using any of the rents on the property; (iii) interfering in any manner with the discharge of the Receiver's duties under this Order; (iv) selling, transferring, disposing, encumbering, or concealing the property without a prior court order; and (v) doing any act that will impair the preservation of the property or plaintifrs interest in the property. (e) Other.._ 22. Other orders. Other orders are as follows: -8- 75B-16 1 2 3 4 5 6 7 8 9 10 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Date: q 1 -9- JAMES C. CHALFANT /BOWMl n0rWu AunnWTI lr. Dern.rco Ac..uu rrn.nn?r 75B-17 . 1 2 3 4 5 6 7 8 9i 10 11 12 13 14 15 16 17, 18 19 20 21 22 23 24 25 26 27 28 David J. Pasternak, CSBN 72201 John W. Patton, Jr., CSBN 90130 PASTERNAK, PASTERNAK & PATTON N Law corporation 1875 Century Park East, Suite 2200 Los Angeles, California 90067-2523 Telephone: 310.553.1500 Facsimile: 310.553.1540 E-Mail: dip@paslaw.com jwp@paslaw.com Attorneys for David D. Wald, Receiver ORIGINAL FILE NOV 2 7 2012 LOS ANGELES SUPERIOR COURT SUPERIOR COURT OF THE STATE OF CALIFORNIA COUNTY OF LOS ANGELES, CENTRAL DISTRICT VDB SANTA ANA, LLC, a California limited liability company; RYAN OGULNICK, an individual, Plaintiffs, VS. PROTILUS, LP, a New Jersey limited partnership; BARRY L LEVINE, an individual; ILUS INVESTORS, LP, a California limited partnership; ILUS GP US LLC, a California limited partnership; and DOES 1 through 100, Inclusive, Defendants. Case No. BC 484 031 [Related to Case No. BC 483 770] Hon. James C. Chalfant [441&Pe9r T ORDER: 1-..._--AU'PEORT•Z'I•N@-I4E2E3?FER--T-0• nrrFVm ?.yyp-; OOfl--EQUZT)G-_, GON+PR-ISUT3.ON-FCPR -OPERATING eO3TS; 9;. AUTHORIZING RECEIVER TO LIST RECEIVERSHIP REAL PROPERTY FOR SALE WITH JONES, LANG, LASALLE TO CONTINUE TRIAL AND RELATED HEARINGS DATE: November 27, 2012 TIME: 8:30 A.M. DEPT. 85 The court having considered the ex parte application of Receiver David D. Wald for the issuance of an Order: (1) Authorizing the Receiver to accept $150,000 equity contribution 00049934-1 1 BC 484 031 194QeeVrDT ORDER: (1) AUTHORIZING RECEIVER TO ACCEPT $150,000 EQUITY CONTRIBUTION FOR OPERATING COSTS; ETC. dX?I _ 8Ta 75 PASTEFN , PASTOWK & PATIO" 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17. 18 19 20 21 22 23 24 25 26 27 28 For operating costs; and (2) Authorizing the Receiver to list receivership real property for sale with Jones, Lang, LaSalle (the "Application"); the attached Declaration of David D. Wald and all Exhibits attached thereto; the attached Memorandum of Points and Authorities; all pleadings and other documents in the file for this matter; and all other oral and documentary evidence submitted at the ex parte hearing; and good cause appearing therefore; IT IS EREBY ERED th the R eiver i auth ized o accept a tot amount up to 150,000 in fi ncin from e or re of a parti to thi action a equi con rib ions for o&rating' costs; IT IS FURTHER ORDERED that the Receiver is authorized to list the receivership real property,.undeveloped real property located at 200 E. First American Way in Santa Ana, California 92707, north of MacArthur Blvd., east of MacArthur Place (formerly Imperial Promenade) and south of First American Way (formerly Regency Blvd.) (the "Property") for sale with Jones, 5.1b3Cw.,h\a\\+? 5; /++.(4M Lang, LaSalle suabsten'1•i-a44:y pursuant to tie terL of the proposed listing agreement attached to the Receiver's Ex Parte I Application, with a 28 real estate commission, and the Property being sold where is/as is, without any representations or warranties, and subject to this Court's confirmation with possible overbidding. `WL1n1Vk1 5" wtk"Y ?v 00099939-1 2 BC 404 031 (PROPOSED] ORDER: (1) AUTHORIZING RECEIVER TO ACCEPT $150,000 EQUITY CONTRIBUTION FOR OPERATING COSTS; ETC. 75B-19 PASYMAK PAVERNM 6 PAVM 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 21 2£ IT IS FURTHER ORDERED that notice of the Receiver's Ex Parte lpplication was proper. DATED: It/ L 9l I James C. Chalfant Los Angeles Superior Court Judge II 00049934-1 3 BC 484 031 (PROPOSED) ORDER: (1) AUTHORIZING RECEIVER TO ACCEPT $150,000 EQUITY CONTRIBUTION FOR OPERATING COSTS, ETC. 75B-20 7 8 9 10 11 12 13 14 15 16 17 18 19 20, 21. 22 23 24 25 26 27 28 David J. Pasternak, Bar No. 72201 John W. Patton, Jr., Bar No. 90130 PASTERNAK, PASTERNAK & PATTON A Law Corporation 1875 Century Park East, Suite 2200 Los Angeles, California 90067-2523 Telephone: 310.553.1500 Facsimile: 310.553.1540 E-Mail: d1p@paslaw.com iwp@paslaw.com Attorneys for Receiver David D. Wald CONFORMED COPY ORIGINAL FILED 8u srlor Court of Callfomla County of Los Angeles APR 16 2013 J01111A. ,F. eautlvaompor/clerk ®y' FA OV006 Dgptigr SUPERIOR COURT OF THE STATE OF CALIFORNIA COUNTY OF LOS ANGELES, CENTRAL DISTRICT VDB SANTA ANA, LLC, a California Limited liability company; RYAN OGULNICK, an individual, Plaintiffs, vs. PROTILUS, LP, a New Jersey limited partnership; BARRY L LEVINE, an individual; ILUS INVESTORS, LP, a California limited partnership; ILUS GP US LLC, a California limited partnership; and DOES 1 through 100, Inclusive , Defendants. 1 N1nAlpl.-t Case No. BC 484 031 [Related to Case No. BC 483 7101 Hon. James C. Chalfant ] EX PARTS ORDER: 1. AUTHORIZING RECEIVER TO 2. 3 BORROW ADDITIONAL $350,000 FROM SECURED LENDER KURTIN PROPERTIES, INC. TO PAY RECEIVERSHIP COSTS OF ADMINISTRATION AND ADDITIONAL LOAN COSTS; AUTHORIZING RECEIVER TO ENTER INTO CONTRACT TO SELL RECEIVERSHIP REAL PROPERTY TO GENESIS REAL ESTATE GROUP, INC. FOR $14,800,000; AND AUTHORIZING RECEIVER TO RETAIN TOWNSEND PUBLIC AFFAIRS, INC. AS CONSULTANT TO ASSIST RECEIVER IN SEEKING MODIFICATION OF RECEIVERSHIP REAL PROPERTY DEVELOPMENT AGREEMENT EXHIBIT 5 1 75B-21 Rr Aan nal 1 2 3 4 5 6 7 8 9 10 11 12 13 14 is 16 17 18 19 20 21 22 23 24 25 26 27 28 PASTERNAK PASTERNAK &PATTON DATE: APRIL 16, 2013 TI)>!E: 8:30 a.m. DEPT. 85 The Court having considered the Ex Parts Application of Receiver David D. Wald ("Receiver") for the issuance of an Order: 1. Authorizing the Receiver to borrow an additional $350,000 from secured lender Kurtin Properties, Inc. ("Kurtin"), which will be added to the existing loan which is secured by the first deed of trust on the receivership real property, to pay the receivership costs of administration and to pay additional loan costs including funding an increased interest reserve for Kurtin's increased secured loan; 2. Authorizing the Receiver to enter into a contract to sell the receivership real property located at 201 East First American Way in Santa Ana, California (the "Property") to Genesis Real Estate Group, Inc. ("Genesis") or its assignee for $14,800,000, with a $500,000 purchase deposit which is to be increased by $250,000 on waiver of contingencies, with a 30 day contingency period, with the sale subject to this Court's confirmation and approval with possible overbidding and subject to the assignment of the Property Development Agreement to Genesis by the city and its modification to remove the requirement that Ryan Ogulnick be involved in the development of the Property; 3. Authorizing the Receiver, if he believes it necessary to do so, to retain Townsend Public Affairs, Inc. ("Townsend") as a consultant to assist the Receiver in seeking the modification of the existing entitlements for the Property in connection with 1100063839-1 2 BC 484 0311 75B-22 _. .. 1 2 3 4 5 6 7 8 9 30 11 12 13 14 1s 16 17 18 19 20 21 22 23 24 25 26 27 28 PASTEMAK PASTERNAK 6 PATTON the proposed sale to Genesis; and 4. For such other Orders as the Court deems proper; the supporting Declarations of David D. Wald and David J. Pasternak; the supporting Memorandum of Points and Authorities; all pleadings and other documents in the Court's file for this action; and all other oral and documentary evidence presented at the hearing of the Receiver's $x Parts Application; and good cause appearing therefor; IT IS HEREBY ORDERED that: 1. The Receiver is authorized to borrow an additional $350,000 from secured lender Kurtin Properties, Inc. ("Kurtin"), which will be added to the existing loan which is secured by the first deed of trust on the receivership real property, to pay the attorneys fees and costs for the Receiver and his counsel through approximately $300,000 which will be transferred to the Receiver's trust account as a retainer for such purpose, and approximately $50,000 of which will be used to pay additional loan costs including funding an increased interest reserve for Kurtin's increased secured loan; 2. The Receiver is authorized to execute any documents, including revised loan documentation, which may be required to obtain the specified additional funding from Kurtin; 3. The Receiver is authorized to enter into a contract to sell the receivership real property located at 201 East First American Way in Santa Ana, California (the "Property") to Genesis Real Estate Group, Inc. ("Genesis") or its assignee for $14,800,000, with a $500,000 purchase deposit which is to be increased by $250,000 on waiver of contingencies, with a 30 day I non59R39-T 4 75B-23 BC 484 nii -MXRNAK •aSTTE?POW contingency period, with the sale subject to this Court's confirmation and approval with possible overbidding and subject to the assignment of the Property Development Agreement to Genesis by the City and its modification to remove the requirement that Ryan Ogulnick be involved in the development of the Property; 4. The Receiver is authorized, if he believes it necessary to do so, to retain Townsend Public Affairs, Inc. ("Townsend") as a consultant to assist the Receiver in seeking the modification of the existing entitlements for the Property in connection with o'4 A (MA ¦??'?'D mA[? ??y IYJO the proposed sale to Genesis( and 5. Notice was proper. DATED: APR I A 7011 JAMES 0. CHALFAW - J me , C. Chalfant Los Angeles Superior Court Judge 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19, 20 21 22 23 24 25 26 27 28 11 00063839-1 4 BC 484 031 75B-24 XHIBIT 6 75 -25 Gordon Ip, the principal ofGenesis Real Estate Group, washorn and raised in Hong Kong His family has been involved in real estate investment and development for three generations. Mr.lp attended the prestigious Diocesan Boys School of Hong Kong, eventually leaving this vibrant metropolitan city to complete high school at the Choate School in Connecticut. As an extension of his goals to experience the United States, he chose to attend a large public university and received his Bachelor of Business Administration degree from the Universityof Michigan with a majorin marketing Mr. Ip's first exposure to sales and marketing came when he sold books door to door with the Southwestern Book Company in undergraduate school. After graduating from Michigan, Mr. Ip obtained a management lrainingand corporate marketingposition with Dow Chemical, relocating to Dallas,Texas, in 1980. Duringthose initial years in Dallas, real estate development piqued his interest. Mr. lp decided to transition careers by attending graduate school at Southern Methodist University and pursuing two degrees simultaneousif a Master of Business Administration concentrating in Finance and a Master of Science in Real Estate Sciences. 75B-26 Followinggraduale school, M r.lp turned down offersofemployment withTrat unell CrowCompany, Cadillac Fairview, Lincoln Property, Vantage Development and Criswell Development to focus on finding a company that offered a chance to experience all facets of real estate development, including acquisition, entitlement, planning, architectural design, financing, legal, construction, property management, and sales and marketing. In 1983, Mr. Ip joined Pacific Realty Corp, a growing company that focused on multifamily development and allowed him to obtain a complete real estate development experience. While at Pacific, Mr. Ip honed his skills and used his desire to learn, attention to detail and business acumen to develop successful projects in cities such as Tulsa, Phoenix, Altamonte Springs, Dallas and Albuquerque. During this time, Mr. lp developed strong institutional relationships which became the foundation for launching his own company in the future. He became the company's interface with the Ralcor Company. 75B-27 75B-28 Institutional Developer with Multi-state experience Coinciding with the lax law reform in 1986, Mr. Ip lefl Pacific Realty and started Genesis Real Estate Group. Genesis and BalcorAmerican Expressembarked on a multifamilyenlitlement and development joint venture. In 1987, Genesis began its long history of project development and entitlements in California. Its first transaction involved a nuthitract entitlement in the city of Corona, Calif. Genesis entitled four large multifamily tracts of land totaling more than 1,200 units and implemented a Mello- Roos infrastructure plan. Acting as general contractor, Genesis built two developments, a 330-unit development called The Crossings and a 248-unit development called The Hilis.'Ihcy were purchased by two major institutional players, CALIPERS advised by Metric Partners (Blackrock Realty Advisors) and Executive Life Insurance Company. In addition, Genesis navigated dvu environmentalists and neighborhood groups amidst native oaks and entitled 476 units ofmultifamily land in Roseville, Calif Genesis also assembled 20+ separate tracts totaling 200 acres and created a master plan in Rancho San Marcos, Calif. In 1989, long before high-rise residential buildings were commonplace, Genesis expanded its urban focus, zoned and built a 288-unit, 14-story, high-rise condominium in downtown San Francisco, one of the first developments south of Market. Mr. Ill was part of the Ballpark Commission, a neighborhood group that lobbied the Giants to move from Candlestick to its current SOMA location. 75B-29 75B-30 Urban Focus toith Innovative Design 67echnology in 1998, Genesis developed Turtle Creek Villas, the first residential high-rise built in Dallas since the early 80s. This luxury rental tower featured 331 units in 14 stories located in the heart of the Uptown a rea. "Ilse property was managed by an affiliate, Genesis Realty Management Inc., and was sold to ING Insurance. Genesis used an innovative construction technology for high-rises to achieve record construction times, thus lowering carrying costs and ultimately increasing profitability. Genesis was also able to price belowthe competition while achieving the same orhiglreryields. High Density Wood Frame 80+Dulsl4cre (Non Podium) PollowingTurtle Creek Villas, Genesisworked with a leading multi-family design architect to develop the urban four-story density product with an integrated, structured garage, nowcommonly referred to asthe'Texas Wrap.'This collaboration created a high efficiency, low-costbuildingframework allowing up to 8S units-an-acre utilization of land. This was accomplished in four stories including an integral garage at grade without the cost penaltiesofa four-storypodium. (Podiumdesign carriesa cost penalty ofa transfer slab and additional two levels ofM EP over a two-storygaragewhere S096 ofillegarise had to be subterranean). Maple Villas and Southern Villas, both in Dallas, were classic examples of a Texas Wrap, with one major distinction. We designed no Texas Dennis where the garage was in the middle, and none of the Genesis units looked into the integrated garage. 75B-31 75B-32 Traditional High Density Walk Ups Genesis continued its involvement in more traditional wood-frame three-to four-story garden walk- ups like LaCosta Villas with Invesco as advisor to New York Slate Teachers Retirement System. Value Added Acquisitions and Urban Planning Genesis is well-known as a national developer with experience in all aspects of multifamily housing, ranging from low-rise traditional walk-ups and four-story urban products to high-rise developments, both for rent and forsale. Genesis also used its expertise in development and property management to acquire assets that were undervalued or could be upgraded as value-add opportunities. One example is the Treasures. In 2000, Genesis bought the S17-unit property located in Biscayne Bay, in North Miami, and managed this fur the future prospect of conversion from an apartment building to a condominium,"Ihis was financedby IXIS Real Estate Capital, an affiliate of CDC out of New York. In 2004, Genesis competed and won the right to purchase the Posner Estate site in Hallandale Beach, Fla. Genesis used its experience in entitlements and secured from the city the rights to build a 280. unit, 28-storyhigh-risecondonuinium. Genesis looked at the opportunitycostswithin its portfolio and made a decision to sell for a profit the entitled land to another developer. Genesis thus flipped the site to the Fifieid Company out of Chicago. 75B-33 BEHRINGERHAwARD 0) CORUS BANK LEHMAN BROTHERS NaiionsBank PACIFIC LIFE I NG '. ,p Prudential SouthTrust 5 GMAC 75B-34 Broad range of capital partners providing ready access ofcapital In the 80s, Genesis in relationship with Balcor American Express acquired and entitled land and built multiple properties in California, from San Diego to Sacramento. Although this partnership was successful financially for both companies, American Express eventuallyended its direct investment in real estate In the mid 1990s. 'ilsereatteg Genesis stayed within the familyofShearson Lehman American Express and built a large book of business with the lending unit at Lehman Brothers. Mtdti-Farraiy Rental Properties This relationship provided the funding to build 3225 Turtle Creek. Completed in 2000, this was the largest multi- family rental property in Texas. This 604-unit, 23-story high-rise community with more than onemillion gross square feet sits proudly on the Turtle Creek skyline. A cnverler bought this property and turned it into the 12ennaisance, a condominium. Turtle Creek Villas, a331-unit, l4-story, high-rise rental development was also built with funding from this partnership alongside GMAC as lender. In addition, Turtle Creek Villas was the first residential high-rise rental apartment built in more than a decade. 75B-35 75B-36 The Mark, at the Galleria area of Houston, was originally built in 2000 as a 30-story, high-rise rental. Managing the marketing and sales, Genesis In 2002 converted the properly to a condominium. Southern Villas was an 80-unit-per-acre, high density urban development, built in the Galleria area of Dallas. Genesis continued to grow its reputation as a developer that focused on contmllingcosts from design inception to construction completion. lenders that provided construction financing for these properties included First American Bank, GMAC SouthTrust (nosy Wachovia) and NationsBank (now Bank ofAmerica). The Mercer is another example of Genesis employing innovation and creativity to create luxury with outstanding value. Using its resources, experience and focus on planning and design, Genesis completed construcion of the 360-foot tall building with interiors that included 12-foot ceilings, gas cook-tops (a first for Houston in a high-rise), wood floors, gas fireplaces, sub-zero refrigerators and Vikingappliances, within 12 months ofclosing the loan with First Bank of Houston. 75B-37 75B-38 High up in the Sierras, 323 has an unparalleled view of lake Tahoe In 2006, Genesis partnered with Behringer Harvard to develop an exclusive 49-unit condominium located in the midst of Heavenly Vallcy Ski Resort, Nev. It look more than IS years to segue the entitlements to develop a whole-owned condominium property. "Bne development is located on the ridge facing Lake Tahoe on one side and Carson Valley on the other. Genesis secured the building permits and began constructing in the fall of 2007. Due to the tight sub market in the Reno, Sacramento and surrounding East Bay area, Genesis was able to reduce the cost of construction by using its national relationships with various subcontractors to import a proven subcontractor front Dallas that had idle crews in the southeastern states. 75B-39 75B-40 In the new millennium, Genesis formed a relationship with Prudential Real Estate. Prudential backed Genesis in build ing Aqua, one ofthe most significant residential developments in the Los Angeles area. Aqua features 556 homes built in two l8-story lowers on the coast of Long Beach. Genesis was able to navigate the complex entitlement process that involved many distinct public agencies, including the Redevelopment Agency and the City Planning Commission. As an example of our integrity and loyalty, before the closing of the partnership with Prudential and the construction loan with Pacific Life Insurance Company, Genesis was offered a handsome profit to flip out the land since Genesis created a substantial windfall after taking the property through a highly complex entitlement process. Instead Genesis honored its commitment to a future relationship with Prudential even though it was not yet formalized in writing by staying the course and closing into the joint Venture. Some may debate whether this was financially wise. For Genesis, following through with a commitment is the onlyright choice. Aqua financed by Pacific Life Insurance Company was initially built as rental product. Genesis and Prudential collectively decided to take advantage of the booming Southern California condominium market and converted Aqua into a for-sale product, switching financial lenders during this process to Bank of America. Our superior cost management allowed the transaction to be one of the more successful PrudentialJoint Ventures. 75B-41 75B-42 Active Management of'the Design and Development Process From conceptual design through design development, Genesis relies on the experience and expertise of its in-house development team to supervise and guide its architects and designers to provide for market-appropriate design while mindful of constructability and costs. Focusing on smarter design provides a high-quality product for end users while achieving superior financial returns for Genesis and its financial partners, giving us an edge for financing ability and profit generation. Genesis also provides strict cost management during the bidding process, which allows Genesis to build residential product for less than its competitors. Intelligent Design (Durable and Green) for the purpose Ofproviding Integrity ofPm for niance Early in the conceptual design phase, Genesis is one ofthe few developers that will engage the dialogue of specialists so that the end product will provide a high degree of performance integrity. By using specialists in soundproofing, heat insulation, cold weather condensation, moisture barriers, energy efficiency and waterproofing, Genesis designs and builds a superior and more efficient product for its end users, a product that is both durable and green. 75B-43 75B-44 Active partieipation in the specification, purchase and bidding process In the 1990's, Genesis bid a mid-rise propertywith three nationallyknown general contractors.while the bids came in within five percent ofeach otter, they were approximately $10 million higher than the profarma estimate Genesis recognized that contractors ollen bid projects on a unit-cost basis, ignoring any design efficiencies. Genesis spent the next four weeks educating subcontractors from each trade on the efficiencies and time savings in Genesis' design, allowing them to reduce the man hours required to complete the same work and obtaining an overall bid for the project that fit the original budget. Genesis extensive experience in biddingand workingd irectly with its large database o(subcontractors allows Genesis to bypass many layers of middlemen, jobbers and wholesalers, bringing significant savings to a proposed development. The time, effort and ability to source directly allows Genesis to eitherprice below market ina for-salepmdact, orcliarge lorserrents in a rental development to achieve the same superior returns for their partners. 75B-45 Dort Fero Deals and Do them Well Genesis chooses to do a deal on its merits alone. Anothercompany with staffin acquisitions might feel the pressure to do a deal to evidence performance, even if that transaction may not be the best use of company resources. At Genesis, We would rather pass on a deal if the deal's merits don't fit ourcriteria, and we are committed to the finish. All Deals are Done in a leant At Genesis, all deals are done via a group of professionals as a collective team versus other development companies that have separate development teams competing with others in their own company for capital allocation. This team approach allows for each site and transaction that Genesis considers to be examined by the whole company. 'the merits of each deal arc considered in the absence ofinter-company rivahriesand egos. We collectively make go or no go decisions on each transaction, allowingeach deal to benefit from the expertise of all rather than a smaller group vying for its own recognition. Choose Select Members that are Committed to our Pahies and Work Our key employees bring expertise in different aspects of real estate. We achieve excellence by combining ourcollective skill sets into a formidable team. 75B-46 7b the Finish Line The duty to complete what we have started is not taken lightly. Properties and deals do not always manifest profits as projected. At these times, Genesis distinguishes itselfby treatingall deals in the same mannerand none are neglected forthe sake ofexpediency. Long 7ernt View Our relationships with design professionals, subcontractors, suppliers, lenders, joint venture partners, staff, municipalities, renters and homeowners arc all respected, nurtured and highly valued. Genesis has a staff with more than 20 years of tenure. Many professionals have been collaborating with Genesis for just as long. While Genesis' philosophy contrasts with standard industry practices ofselling properties and leavingthe HOA boards at the earliest possible time, our team knows that continued communication with residents and the transfer ofproperty knowledge helps build a stronger community and avoid potential problems. bcentivize with ownersho All members of Genesis team are limited partners in each of the transactions that Genesis develops. Ibis incentive rewards team members and promotes personal ownership, not only ofourown work but ofeach other's work as well. 75B-47 Integrity To leave a lasting mark on individuals and companies alike on every occasion that Genesis as a company and its members are different in the way et approach our partners, our transactions, ourconsultants and our financial institutions. Not only will we do what we say,we constantly ask ourselves howwe can we do more than is expected. Loyalty To support the company, and to adopt its beliefs, and its work ethicsand to approach all aspects of our developments as iftheywere ourown in order to make a personal impact on creatingvalue and controlling expenses to provide extraordinary results. Hard Work '[oworksinart and hard with a goodattitude in order to be the best at what we do while recognizing that often we have to do the work ofotirers to succeed in achieving ourgoaIs. 75B-48 Operate Development is about problem solving. Some solutions are conventional. Others require thinking outside the box. Most of the time, success depends on persistence and dedication. 'Niece are many areaswherewe shall spend time and effort in the shadows, but such preparation and effort become the buildingblocks ofa firm foundation. Nurture We desire to be small and nimble. We dothings because use chooseto and not need to. lVemustlook after each other and the company. No person should be too big for any task. No task should be too small to be overlooked. Our health and welfare depend on each other. Stretch 'there are no external barriers to growth. 'lo grow, we must venture to new frontiers. Short term failureisabuildingblock to future success. Wemust be bettertoday thanyesterday, andtomorrow we will be better than today. 75B-49 75B-50 We have chosen to approach development Ihrough maowvork, coordinating separate responsibilities on all properties rather than each individual developing on their own. To succeed, this approach requires superior commmnicationsand groupdyna nics. Any individualism and lack ofconnnonality defeats this chosen path and will result in inferior results that are detrimental to the welfare and goals oflhe company and its members. To succeed, we must will ourselves to adhere to the values andvision of the company, and we must make sure that all coworkers live by the same creed. We have made a conscious decision to work from within and not hire candidates that might be more experienced, but may not subscribe to our values, vision, and company goals. Instead we have brought quality people together and only by pressing forward and by devoting ourselves to our core values, goals and direction, shall we succeed in achievingexcellence. 75B-51 75B-52 Clerk of the City Council City of Santa Ana WHEN RECORDED MAIL TO: Clerk of the Council City of Santa Ana 20 Civic Center Plaza M-30 P.O. Box 1988 Santa Ana, California, 92702 SECOND AMENDED DEVELOPMENT AGREEMENT by and between THE CITY OF SANTA ANA, a California municipal corporation, and VDC AT THE MET, LLC, a California limited liability company 75d!g5lT DEVELOPMENT AGREEMENT THIS SECOND AMENDED DEVELOPMENT AGREEMENT ("Second Amendment") is entered as of this _ day of , 2013, by and between THE CITY OF SANTA ANA ("City"), a charter city and municipal corporation, and VDC AT THE MET, LLC ("VDC"), a California limited liability company. The City and VDC are at times referred to individually as "Party" and collectively as "Parties" herein. RECITALS A. Sections 65864 through 65869.5 of the California Government Code (the "Development Agreement Laws") authorize City to establish procedures to enter into, amend, and extend binding development agreements with persons having legal or equitable interests in real property located within the City for development of the property; B. The purpose of this Second Amendment is to assign and make certain minor changes to the previously-approved "Amended Development Agreement Between the City of Santa Ana and VDC At The Met, LLC, a California Limited Liability Company," dated April 16, 2012, and recorded in the Orange County Recorder's Office as Document No. (the "First Amended DX'); C. Pursuant to an order of Los Angeles Superior Court Judge James C. Chalfant in Case No. BC 484031, dated September 7, 2012, the subject property is currently controlled by David Wald, a receiver appointed by the Los Angeles Superior Court with full control and authority over VDC and the subject property. A true and correct copy of said order is attached hereto as Exhibit "A" and incorporated herein by this reference; D. Specifically, the Parties now desire to amend the First Amended DA, by way of this Second Amendment, to assign the First Amended DA, including all of the rights, duties, obligations, and benefits contained therein, from VDC to FIRST ROCK SANTA ANA, LLC ("First Rock"), a California limited liability company, which is the development entity for GENESIS REAL ESTATE GROUP, INC. ("Genesis"), a Texas corporation. The assignment is subject to the finalization of the sale of the subject property to First Rock, which was authorized by another order of Los Angeles Superior Court Judge James C. Chalfant in Case No. BC 484031, dated April 16, 2013. A true and correct copy of said order is attached hereto as Exhibit "B" and incorporated herein by this reference; E. In addition, the Parties desire to make minor changes to the First Amended DA, by way of this Second Amendment, including to (1) eliminate the two-year prohibition against assignments contained in Section 4.3 of the First Amended DA; (2) remove all references to the previous applicant, Vineyard Development ("Vineyard"), and the previous developer, Ryan Ogulnick ("Ogulnick"), from the First Amended DA; and (3) correct the number of total units to be built pursuant to the approved project; and, F. All other provisions of the First Amended DA, including all rights, duties, obligations, and benefits contained therein, shall remain fully intact and unchanged, and shall not be modified in any way by this Second Amendment. 75B-54 AGREEMENT NOW, THEREFORE, in consideration of the mutual covenants and promises of the parties contained herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows: Section 1. That subsection 1.1(4) of the First Amended DA is hereby amended to read that the approved project will consist of 271 residential units. Section 2. That subsections 4.3 and 4.3.1 of the First Amended DA are hereby deleted in their entirety and are replaced with the following: "4.3 Assignment. Owner shall have the right to transfer or assign the Property, and its interests in and rights and obligations under this Agreement, in whole or in pail, to any person, entity (public or private), partnership, joint venture, firm or corporation at any time during the term of this Agreement; provided, however, that except as provided in Section 4.3.1 of this Agreement, the rights of Owner under this Agreement may not be transferred or assigned unless the written consent of the Council is first obtained and any transfer or assignment of the rights under this Agreement shall include in writing the assumption of the duties, obligations, and liabilities arising from this Agreement if the City grants written consent to transfer the rights. The rights of the Owner hereunder shall not be subject to assignment by attachment, execution, or proceedings under any provision of the Bankruptcy Act, and any such assignment or transfer shall be wholly void and of no force and effect unless such written consent thereto be obtained from the Council. Such transfer or assignment shall not relieve Owner of any duty, obligation or liability to City without the consent of the City. During the term of this Agreement, any approved assignee or transferee of the rights under this Agreement shall observe and perform all of the duties and obligations of Owner contained in this Agreement as such duties and obligations pertain to the portion of the Property transferred or assigned. Any and all approved successors and assignees of Owner shall have all of the same rights, benefits, duties, obligations, and liabilities of Owner under this Agreement. If the Property is subdivided, any subdivided parcel may be sold, mortgaged, hypothecated, assigned, or transferred to persons for development by them in accordance with the provisions of this Agreement. Upon assignment or transfer of the rights of Owner under this Agreement, the obligations of Owner and the transferee or assignee shall be joint and several. 3 75B-55 4.3.1 Permitted Assignments. The prohibition against transfer of ownership of the Property as defined in section 4.3 above shall not apply to, and the City hereby consents to, the following: (a) Associations, including limited partnerships, limited liability companies, or joint ventures with other entities for the purpose of performing Owner's obligations under this Agreement, provided Owner retains sole operational and managerial control. (b) Easements or temporary permits to facilitate development of the Property. (c) Deeds of trust or other financing documents executed for the purpose of securing loans to Owner made to finance the development of the Property, and transfers to any person or entity pursuant to a foreclosure or deed in lieu of foreclosure of such deed of trust or other, similar, financing documents and any subsequent transfer by any such person or entity. Section 3. ASSIGNMENT. The City Council of the City of Santa Ana hereby approves the assignment of this Agreement from VDC, pursuant to the authority granted by Los Angeles Superior Court Judge James C. Chalfant to the receiver appointed with full control over VDC and the subject property, to First Rock, subject to the finalization of the sale of the subject property to First Rock. Section 4. INTEGRATION. Except as expressly provided to the contrary herein, all provisions of the First Amended DA shall remain in full force and effect. The First Amended DA and this Second Amendment shall collectively be referred to as the "Agreement" throughout this document. The Agreement integrates all of the terms and conditions of agreement between the Parties, and supersedes all negotiations and previous agreements between the Parties with respect to the subject matter hereof. Section 5. EFFECTIVE DATE This Second Amendment shall take effect upon the completion of both the closing of escrow on the property subject to the Agreement by First Rock and the date the ordinance approving this Second Amendment takes effect. 75B-56 IN WITNESS WHEREOF, the parties hereto have executed this Agreement the date and year first above written. ATTEST: MARIA D. HUIZAR Clerk of the Council APPROVED AS TO FORM: SONIA R. CARVALHO City Attorney By: Ryan 0. Hodge Assistant City Attorney CITY OF SANTA ANA KEVIN O'ROURKE Interim City Manager VDC AT THE MET, LLC A California limited liability company DAVID WALD Receiver 75B-57 ADDENDUM THE MET AT SOUTH COAST MULTI-FAMILY RESIDENTIAL PROJECT FINAL MITIGATED NEGATIVE DECLARATION PREPARED FOR: City of Santa Ana Planning and Building Agency 20 Civic Center Plaza M-20 Santa Ana, CA 92701 Contact: Sergio Klotz PREPARED BY: ICF International 1 Ada, Suite 100 (vine, CA 92618 Contact: Chad Beckstrom 949.333.6625 dune 2013 EXHIBIT 8 75B-58 Addendum Introduction and Summary This Addendum is to the Final Mitigated Negative Declaration adopted by the City of Santa Ana in January 2012 (2012 MND) for The Met at South Coast Multi-Family Residential Project (Project), and analyzes the potential environmental effects of minor technical changes between the Project described in the 2012 MND (Proposed Project) and the Project as ultimately approved by the Santa Ana City Council in April 2012 (Approved Project), The Approved Project, as described in this Addendum, involves only minor technical changes regarding the size and location of a vacant parcel included in the Project The Approved Project does not result in any new potentially significant impacts or cause a substantial increase in the severity of the impacts identified in the 2012 MND, and no substantial changes with respect to the circumstances under which the Project is undertaken have occurred. Thus, this Addendum to the adopted 2012 MND is appropriate pursuant to the provisions of the California Environmental Quality Act, Pub. Res. Code section 21000, etseq. (CEQA), and 14 Cal. Code Regs., section 15000, et seq. (CEQA Guidelines). Purpose of an Addendum Pursuant to the CEQA Guidelines, a lead agency is required to determine whether its discretionary approvals have the potential to result in significant environmental impacts. In the case of the Project, the City of Santa Ana (City) is the lead agency and prepared and adopted the 2012 MND pursuant to CEQA. The 2012 MND adequately analyzed and addressed the environmental effects of the Proposed Project. As part of its final approval of the Project, the City required minor modifications regarding the size and location of a vacant parcel, resulting in the Approved Project. As the Approved Project involves minor technical changes to the Proposed Project, the City must review the Approved Project and the 2012 MND in accordance with Sections 15162 and 15164 of the CEQA Guidelines to determine the appropriate environmental review and documentation. CEQA Guidelines Section 15164 states that the lead agency or responsible agency may prepare an addendum to a previously adopted negative declaration if only minor changes or additions are necessary or none of the conditions described in Section 15162 calling for the preparation of a subsequent Environmental Impact Report (EIR) or negative declaration have occurred. Section 15162 of the CEQA Guidelines states that a subsequent EIR or negative declaration shall notbe required for the project unless the City determines, on the basis of substantial evidence, that one or more of the following conditions are met: • Substantial changes are proposed to the project which will require major revisions of the previous negative declaration due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; • Substantial changes occur with respect to the circumstances under which the project is The Met at South Coast Multi-Family Residential Project lune 2013 Final Mitigated Negative Declaration-Addendum 1 75B-59 City of Santa Ana undertaken which will require major revisions of the previous negative declaration due to the involvement of new significant environmental effects or a substantial increase in the severity, of previously identified significant effects; or • New information of substantial importance, which was not known and could not have been known with the exercise of reasonable diligence at the time the previous negative declaration was adopted, shows that the project will have one or more significant effects not discussed in the previous negative declaration or that the previously examined significant effects will be substantially more severe than shown in the previous negative declaration. Proposed Project and Environmental Documentation In January 2012, the City adopted the 2012 MND for The Project. The2012 MND analyzed the Proposed Project as the development of a 284-unit multi-family apartment complex on an approximately 3.1-acre site located at 200 East First American Way in the southeastern portion of the City of Santa Ana, with an approximately 0.6-acre portion of the site to remain undeveloped and vacant. The Proposed Project consisted of five stories of multi-family rental units in three buildings, all of which would be constructed over a subterranean parking structure that spans beneath all three buildings. Open space courtyard areas were proposed between the buildings over the parking structure. Figure 1 shows the site plan for the Proposed Project that was included in the 2012 MND. The parking structure was proposed to provide 625 parking spaces in two subterranean levels of parking, in addition to parking on the street level. Vehicular access to the project site and parking garage was proposed to be provided from East First American Way. All of the environmental Impacts of the Proposed Project identified in the 2012 MND were determined to result in no impacts or less-than-significant impacts, or impacts were determined to be reduced to less-than-significant levels with the incorporation of mitigation measures. Impacts on Aesthetics, Agricultural Resources, Hazards and Hazardous Materials, Hydrology, Land Use, Mineral Resources, Population and Housing, Recreation, and Utilities were determined to result in less-than- significant or no impacts. Impacts on Air Quality, Biological Resources, Cultural Resources, Geology, Greenhouse Gas Emissions, Noise, and Public Services (schools) were determined to be less than significant with mitigation incorporated. Approved Project As part of its final deliberations on the Project in April 2012, the City of Santa Ana City Council required minor modifications to the site plan for the Project. Figure 2 shows the modified site plan ultimately approved by the City Council. The modified site plan shifts some of the residential structures front the MacArthur Boulevard frontage to fronting along East First American Way. Additionally, the vacant area increases from 0.60 acres to 0.82 acres to accommodate a larger area for potential future development at the site. The modified site plan also shifts the location of the vacant parcel font the northeastern portion of the site to the southeastern portion of the site, thereby resulting in the vacant parcel fronting along MacArthur Boulevard rather than East First American Way. These minor modifications included in the Approved Project would not result in The Met at South Coast Multi-Family Residential Project June 2013 Final Mitigated Negative Declaration-Addendum 2 75B-60 ?L 31 t'o 'CIF lEA4'NG GEFl<E I IA IA IA IA I RAYV: . ! paAry IA I< CLUB IB B IA ROOM IA IG IA A 1l Vr ? 'It . r ? U M x xe 3E A/ /i`1., lI 30 I IB I 10 I IB I IB I 1B I IA r--- I I _ I ? FUTURE ???fls-o1 JY-B' ( BUEBIGG I I I I ? I I ? II1J o I L J; L? 3C Ir-rl >C.1 U to to A IA IA JA }IR-1" - IA to 9T y ?- I fIl_•?t? ' 111. -1? ti r- Figure 1 Site Plan The Met at South Coast 75B-61 City of Santa Ana changes to the residential unit counts, open space and recreational amenities, traffic counts, or the number of parking spaces of the Proposed Project. Evaluation of Environmental Impacts This document constitutes an Addendum to, and should be considered with, the 2012 MND. Together, the 2012 MND and this Addendum serve as the environmental review of the Project, as required pursuant to the provisions of CEQA and the CEQA Guidelines. The Project's impacts were largely covered in the 2012 MND's analysis of the Proposed Project. This analysis addresses any changes to impacts identified in the 2012 MND that could potentially occur as a result of the minor technical changes associated with the Approved Project. Aesthetics The Approved Project, which includes minor changes to the site layout and a slight increase in vacant land compared to the Proposed Project, will not result in significant impacts on aesthetics. The Approved Project will not result in changes to unit counts, parking ratios, or open space and recreational amenities compared to the Proposed Project. The height of proposed structures and architectural style of the Approved Project will be substantially the same as the height and style analyzed in the 2012 MND. The Approved Project will not interfere with the existing lines of sight available from surrounding areas. Implementation of the Approved Project will not negatively affect the existing visual character or quality of the project site and its surroundings. Furthermore, the lighting used for the Approved Project will not introduce a significant new source of additional lighting to the area. The Approved Project will result in either no impacts m• less-than-significant aesthetics impacts, consistent with the analysis contained in the 2012 MND. Agricultural and Forestry Resources The Approved Project will result in the same impacts described in the 2012 MND. The Approved Project will not change the location of the Project site analyzed in the 2012 MND. The Project site does not contain any agricultural uses. No land zoned as forest land or timberland exists within the proposed project boundaries. According to the California Department of Conservation Orange County Important Farmland 2008 map (California Department of Conservation 20081), the Project site is classified as "urban and built-tip land" and "other land." The Project will be located in a fully developed urban environment and would develop a multi-family residential project on an infill development parcel. No impacts to agricultural or forestry resources will occur as the result of the Approved Project, consistent with the analysis contained in the 2012 MND. Air Quality The Approved Project will not result in new or changed significant impacts on air quality. The proposed construction activities for the Approved Project will remain unchanged from those analyzed for the Proposed Project. As stated in the 2012 MND, construction-related daily (short- term) emissions would exceed the South Coast Air Quality Management District (SCAQMD) regional 1 California Department of Conservation. 2008. Orange County Important Farmland 2000. Available: <ftp://ftp.consrv.ca.gov/pub/dirp/FMMP/pdf/2008/oraOB.pdf>. The Met at South Coast Multi-Family Residential Project June 2013 Final Mitigated Negative Oeclaratian-Addendum 3 75B-62 -- - -- - -- - -- - -- - -- - -- - - --------------- t-J. fli n?uv lafi411i lII ]IO?IN UI7_L _..n T YMl ?• \tu y 3 MwY `y 0 NOIIY k nl ? u? ?. .r f nt rt qw ? u t ?. u?wrvYnltnouat»...t..? nw?.. Y..i ICF 11-1 ? Al Figure 2 Modified Site Plan The Met at South Coast 75B-63 City of Santa Ana significance thresholds for nitrogen oxides (NOx). The Approved Project will not result in any changes of the construction-related daily emissions. Mitigation Measures AQ-1 and AQ-2 included in the 2012 MND would continue to be required for the Approved Project to reduce short-term construction emissions to a less-than-significant level, which is consistent with the analysis and mitigation measures contained in the 2012 MND. Biological Resources The Approved Project will not result in new or changed significant impacts on biological resources. Construction activities included under the Approved Project would remain unchanged compared to the Proposed Project. Similarly, operation of the Approved Project will be substantially the same as the operation of the Proposed Project. Removal of ornamental trees and tarplant, and the potential removal of vernal barley analyzed for the Proposed Project will continue to occur under the Approved Project. The 2012 MND identified impacts on two small delineated wetland areas totaling 0.021 acre (832 square feet) for the Proposed Project, which will not be changed by the Approved Project Implementation of Mitigation Measures 13I0-1 through BIO-4 would continue to he required to reduce impacts of the Approved Project related to nesting birds, protected species, and wetlands to less-than-significant levels, which is consistent with the analysis and mitigation measures contained in the 2012 MND. Cultural Resources Similar to the Proposed Project, the Approved Project will not result in significant impacts on cultural resources. A cultural resources survey conducted for the project site and summarized In the 2012 MND did not identify any significant cultural resources on site or nearby. As a result, the Project's impacts to cultural resources were determined to be less than significant. The Approved Project does not change the conclusions of the 2012 MND related to cultural resources impacts. Geology and Soils The Approved Project will not result in new significant or increased impacts on geology and soils. Site preparation, including soil excavation and export, as well as operation of the Approved Project, would remain unchanged from those of the Proposed Project described in the 2012 MND, which concluded that impacts would be less than significant with the incorporation of Mitigation Measure GEO-1 to reduce seismic groundshaking and expansive soils impacts. The Approved Project does not change the conclusions of the 2012 MND related to geology and soils, and is consistent with the analysis and mitigation measures contained in the 2012 MND. Greenhouse Gas Emissions The Approved Project will not result in significant impacts on greenhouse gas emissions. The duration of construction activities and number and type of construction equipment of the Approved Project would remain unchanged from the Proposed Project. Therefore, greenhouse gas emissions would be substantially the same as those described in the 2012 MND. Implementation of Mitigation Measures GHG-1 through GHG-3, along with state implementation of Assembly Bill (AB) 32 Seeping Measures, would continue to be required to reduce the incremental GHG emissions associated with the Project by approximately thirty-three percent (33%). The Approved Project does not change the The Met at South Coast Multi Family Residential P,olect June 2013 Final Mitigated Negative Declaration-Addendum 4 75B-64 City of Santa Ana conclusions related to greenhouse gas emissions in the 2012 MND, and is consistent with the analysis and mitigation measures contained in the 2012 MND. Hazards and Hazardous Materials The Approved Project will not result in significant impacts on hazards and hazardous materials. The duration of construction and number and types of construction equipment to be used for the Approved Project would remain unchanged, and no additional hazards would occur as a result of the minor technical changes associated with the Approved Project. The Approved Projects potential impacts will be substantially the same as those described in the 2012 MND, which concluded that no significant impact would occur and no mitigation measures are required. Hydrology and Water Quality Similar to the Proposed Project, the Approved Project will not result in significant impacts on hydrology and water quality. In fact, the Approved Project will result in slightly less impervious development by providing a larger vacant parcel in the southwest portion of the site. The Approved Project requires only minor technical changes to the drainage plans for the Proposed Project to control construction and operational water runoff. Impacts on hydrology and water quality will be substantially the same as those described in the 2012 MND, which were determined to be less than significant. No significant or increased impacts would occur as the result of the minor technical changes associates with the Approved Project, and no mitigation measures are required. Land Use and Planning Similar to the Proposed Project, the Approved Project will not result in significant or increased impacts on land use. The 2012 MIND concluded that the Proposed Project was consistent with the MacArthur District Center land use designation. The Approved Project remains consistent with the General Plan and Zoning designations of the site, and would not conflict with any land use policy or plan. No significant or increased environmental Impacts would occur as the result of the minor technical changes associated with the Approved Project. Mineral Resources The Approved Project will not result in significant impacts on mineral resources. According to the City of Santa Ana Land Use Element, there are no areas identified as having significant mineral resources and no areas having a Significant Mineral Aggregate Resource Areas (SMARA) designation on the Project site. The Approved Project will not change the location of the Project site. Therefore, implementation of the Approved Project will not contribute to the loss of availability of a known mineral resource. No significant or increased impacts would occur in connection with the Approved Project. Noise The Approved Project will not result in significant or increased impacts on noise. The number of units, parking ratios, and recreational and open space amenities analyzed for the Proposed Project will not be changed by Approved Project. Impacts related to construction activities and operation of the Approved Project will be substantially the same as those described in the 2012 MND. Most noise The Met at South Coast Multi-Family Residential Project June 2013 Final Mitigated Negative Declaration -Addendum S 75B-65 City of Santa Ana impacts of the Project were determined to be less than significant in the 2012 MND. However, short- term noise from construction was determined to potentially be disruptive, thereby requiring the incorporation of Mitigation Measure NO[-1, which requires implementation of noise control measures. Additionally, noise impacts on some residents along MacArthur Boulevard were required to be reduced with the implementation of Mitigation Measures N0I-2, N01-3, NOI-4, and NOI-5. Implementation of the Approved Project could potentially reduce noise exposure to some of the residents by shifting some of the residential buildings to the north away from MacArthur Boulevard. Thus, the Approved Project will not result in new significant or increased impacts related to noise, and it is consistent with the analysis and mitigation measures contained in the 2012 MND. Population and Housing Similar to the Proposed Project, the Approved Project will not result in significant or increased impacts on population and housing. The number of units, parking ratios, and recreational and open space amenities will not change tinder the Approved Project. Impacts on population and housing would be substantially the saute as those identified in the 2012 MND, which were determined to be less than significant. Specifically, the 2012 MND determined that Project would not contribute to substantial growth inducement, nor displace any existing housing or result in the construction of replacement housing elsewhere. Public Services The Approved Project will not result in significant or increased impacts on public services. Similar to the Proposed Project, impacts on police, fire, parks, and public facilities would continue to be considered less than significant because the Approved Project will not increase square footage or the number of residents. While the Project's impacts on schools were determined to be significant, and thus required mitigation, the Approved Project will not result in any additional student generation, and thus does not result in any new significant or increased impacts from what was analyzed under the Proposed Project. Therefore, the impacts of the Approved Project would continue to be less than significant with the implementation of Mitigation Measure PS-1. Recreation The Approved Project will not result in significant or increased impacts on recreation. The number of residential units (284 units), parking ratios, and recreational and open space amenities of the Approved Project would not change compared to the Proposed Project analyzed in the 2012 MND. The Project results in an increase of approximately 852 onsite residents. Residents of the Project would most likely use the onsite recreation facilities. Therefore, it is anticipated that the Project will not result in a significant increase in the use of existing recreation facilities or require the construction of new recreation facilities, and its impacts are thus less than significant. Additionally, the Approved Project is subject to the City's municipal code parkland dedication requirements. Compliance with the municipal code would increase recreational opportunities within the City. Transportation/Traf fi c The Approved Project will not result in significant or increased impacts on transportation/traffic. The number of proposed access points to the site, parking ratios, and the number of construction vehicles and resident trips would not change as a result of the Approved Project Therefore, the The Mel at South Coast Multi. Family Residential Project June 2013 Final Mitigated Negative Declaration-Addendum 6 75B-66 City of Santa Ana impacts of the Approved Project on transportation/traffic would be substantially the same as those described in the 2012 MND for the Proposed Project. Implementation of a construction management plan as described in Mitigation Measure TR-1 of the 2012 MND would continue to be required for the Approved Project to reduce short-term construction traffic impacts to a less-than-significant level. Similarly, implementation of Mitigation Measure TR-2 would continue to be required to reduce potential hazard impacts related to the addition of the project driveway activities. Thus, the Approved Project is consistent with the analysis and mitigation measures contained in the 2012 MND, and no new significant or increased impacts will occur as the result of the mina' technical changes associated with the Approved Project. Utilities and Service Systems The Approved Project will not result in significant or increased impacts on utilities and service systems. The number of residential units (284 units), parking ratios, and recreational and open space amenities of the Project would not change under the Approved Project. Therefore, no changes in utility demands would occur. The 2012 MND concluded that impacts on utilities would be less than significant, which would be the same for the Approved Project. Summary of Findings Based on the environmental analysis, the Approved Project will not result in any new significant impacts that were not previously analyzed and adequately addressed in the 2012 MND, or change the severity of the potential impacts identified in the 2012 MND. The layout modifications and the slight increase in proposed vacant land compared to the Proposed Project are minor technical changes, and none of the conditions set forth in Section 15162 of the CEQA Guidelines which would otherwise require preparation of a subsequent negative declaration or Environmental Impact Report are met as the result of the Approved Project As demonstrated by this Addendum: • The Approved Project does not constitute substantial changes which will require major revisions of the previous mitigated negative declaration due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; • The Approved Project does not constitute substantial changes with respect to the circumstances under which the Project is undertaken which will require major revisions of the previous mitigated negative declaration due to the involvement of new significant environmental effects or a substantial increase in tine severity of previously identified significant effects; and • The Approved Project does not constitute new information of substantial importance that show that the Project will have one or more significant effects not discussed in the previous mitigated negative declaration or that the previously examined significant effects will be substantially more severe than shown in the previous mitigated negative declaration. Therefore, pursuant to CEQA Guidelines Sections 15162 and 15164, the 2012 MND and this Addendum are appropriate to analyze the potential environmental effects of the Approved Project. Considered together, the 2012 MND and this Addendum satisfy the City s obligation under CEQA to evaluate and address the potential significant environmental impacts of the Project. The Met at South Coast Multi-Famlly Residential Project June 2013 Final Mitigated Negative Declaration-Addendum 7 75B-67 Appendix A Environmental Checklist ISSUES: AESTHETICS Would the project: Have a substantial adverse effect on a scenic vista? Substantially damage scenic resources, including, but not limited to, trees, rock outcroppings, and historic buildings within a Stale scenic highway? Substantially degrade the existing visual character or quality of the site and its surroundings? Create a new source of substantial light or glare which would adversely affect day or nighttime views In the area? e Iwo ai$ .2 ?E s Q1? ss ?. 8 A ?E 1140 AGRICULTURE AND FOREST RESOURCES In determining whether impacts to agricultural resources are significant environmental effects, lead agencies may refer to the California Agricultural Land Evaluation and Site Assessment Model (1997) prepared by the California Dept. of Conservation as an optional model to use in assessing Impacts on agriculture and larmland. In determining whether Impacts to forest resources, including timberland, are significant environmental effects, lead agencies may refer to Information compiled by the California Department of Forestry and Fire Protection regarding the state's Inventory of forest land, Including the Forest and Range Assessment Project and the Forest Legacy Assessment project; and forest carbon measurement methodology provided in Forest Protocols adopted by the California Air Resources Board. Would the project: Convert Prime Farmland, Unique Fannlar or Farmland of Statewide importance (Farmland), as shown on the maps prepared pursuant to the Farmland Mapping and Monitoring Program of the California Resources Agency, to non- agricultural use? Conflict with existing zoning for agricullurl use, or a Williamson Act contract? a The Met at South Coast Multi-Family Residential Project June 2013 Final Mitigated Negative Declaration-Addendum A-1 75B-68 City of Santa Ana ISSUES: c) Conflict with existing zoning for, or cause rezoning of, forest land (as defined in Public Resources Code section 12220(g)), timberland (as defined by Public Resources Code section 4526), or timberland zoned Timberland Production (as defined by Government Code section 51104(g))? d) Result in the loss of forest land or conversion of forest land to non-forest use? e) Result in the loss of forest land or conversion of forest land to non-forest use?. Appendix A. Environmental Checklist czz? ?,^ ?c E 3i3 g3c I$? Rg ??, L ?.?43 fa ySENw O = tb Z a '3a`» i i 3 AIR QUALITY Where available, the significance criteria established by the applicable air quality management or air pollution control district j may be relied upon to make the following determinations. Would the project: a) Conflict with or obstruct implementation of the applicable air quality plan? b) Violate any air quality standard or contribute substantially to an existing or projected air quality violation? c) Result in a cumulative) considerable net increase of any criteria pollutant for which the project region is non-attainment under an applicable federal or state ambient air (quality standard (including releasing emissions which exceed quantitative thresholds for ozone precursors)? _..f ;.... 1. d) Expose sensitive receptors to substantial pollutant concentrations? e) Create objectionable odor affecting a substantial number of people? 4 BIOLOGICAL RESOURCES Would the project: a) Have a substantial adverse effect, either directly or through habitat modifications, on any species identified as a candidate, sensitive, or special status species in local or regional plans, policies, or regulations, or by the California Department of Fish and Game or U.S. Fish and Wildlife Service? The Met al South Coast Multi-FamIN Resldenlial project June 2013 Final Mitigated Negative Declaration-Addendum A-2 75B-69 City of Santa Ana ISSUES: b) Have a substantial adverse effect on any riparian habitat or other sensitive natural community identified in local or regional plans, policies, and regulations or by the California Department of Fish and Game or U. S. Fish and Wildlife Service? c) Have a substantial adverse effect on federally protected wetlands as defined by Section 404 of the Clean Water Act (including, but not limited to, marsh, vemal pool, coastal, etc.) through direct removal, filling, hydrological interruption, or other means? d) Interfere substantially with the movement of any native resident or migratory fish or wildlife species or with established native resident or migratory wildlife corridors, or impede the use of native wildlife nursery sites? e) Conflict with any local policies or ordinances protecting biological resources, such as a tree preservation policy or ordinances? f) Conflict with the provisions of an adopted Habitat Conservation Plan, Natural Community Conservation Plan, or other approved local, regional, or stale habitat conservation plan? 6 CULTURAL RESOURCES Would the project: Appendix A. Environmental Checklist E P P ?? 8e ?P E it ?? .€ ?$$55p5 ? I C b SI yC S l A ¢ S Ji g J a l 91 a) Cause a substantial adverse change in the significance of a historical resource as defined in § 15064.5? a) Cause a substantial adverse change in the significance of an archaeological resource pursuant to § 15064.5? c) Directly or indirectly destroya unique paleontological resource or site or unique geologic featurel d) Disturb any human remains, including those interred outside of formal cemeteries? The Mel at South Coast Multi-Famlly Residential Protect June 2013 Final Mitigated Negative Declaration-Addendum A3 75B-70 City of Santa Ana s? o u? A , if ISSUES: d 8 GEOLOGY AND SOILS Would the project: _ a) Expose people or structures to potential substantial adverse effects, including the risk of loss, injury, or death involving: i) Rupture of a known earthquake fault, as delineated on the most recent Alquist-Priolo Earthquake Fault Zoning Map Issued by the State Geologist for the area or based on other substantial evidence of a known fault? ii) Strong seismic ground shaking? Iii) Seismic-related ground failure, including liquefaction? iv) Landslides? b) Result in substantial soil erosion or the loss of topsoil? I c) Be located on ageologic unit or soil that is unstable, or that would become unstable as a result of the project, and potentially result in on- or off-site landslide, lateral spreading, subsidence, liquefaction or collapse? d) Be located on expansive soil, as defined in Table 18-1-B of the Uniform Building Code (1994), creating substantial dsks to life or e) Have soils incapable of adequately supporting the use of septic tanks or alternative waste water disposal systems where sewers are not available for the disposal of waste water? GREENHOUSE GAS EMISSIONS Would the project: Generate greenhouse gas emissions, either directly or indirectly, that may have a significant impact on the environment? Conflict with an applicable plan, policy or regulation adopted for the purpose of reducing the emissions of greenhouse gases? The Met at South Coast Multi-Family Residential Project June 2013 Final Mitigated Negative Declaration-Addendum A-4 Appendix A. Environmental Checklist 3K dN% 63? q3 3 7 a ETi uEE z ZA z=_ I z2:40 N Vr K 75B-71 City of Santa Ana Appendix A. Environmental Checklist og g g s` sh g ISSUES: ?i K ? ? K Z - i ? <M 8 I HAZARDS AND HAZARDOUS MATERIALS Would the project: a) Create a significant hazard to the public or the environment through the routine transport, use, or disposal of hazardous materials? b) Create a significant hazard to the public or the environment through reasonably foreseeable upset and accident conditions involving the release of hazardous materials into the environment? c) Emit hazardous emissions or handle hazardous or acutely hazardous materials, substances, or waste within one-quarter mile of an existing or proposed school? d) Be located on a site which is included on a list of hazardous materials sites compiled pursuant to Government Code Section 65962.6 and, as a result, would it create a significant hazard to the public or the environment? e) For a project located within an airport land use plan, or where such a plan has not been adopted, within two miles of a public airport or public use airport, would the project result in a safety hazard for people residing or working in the project area? f) For a project within the vicinity of a private airstrip, would the project result in a safety hazard for people residing or working in the project area? g) Impair implementation of or physically interfere with an adopted emergency response plan or emergency evacuation plan? h) Expose people or structures to a significant risk of loss, injury or death involving wildland fires, including where wildlands are adjacent to urbanized areas or where residences are intermixed wilh wildlands? The Mel at South Coast Multi-Family Residential Project June 2013 Final Mitigated Negative Declaration-Addendum A-5 75B-72 City of Santa Ana ISSUES: 9 HYDROLOGY AND WATER QUALITY Would the project: a) Violate any water quality standards or waste discharge requirements? ID) Substantially deplete groundwater supplies or interfere substantially with groundwater recharge such that there would be a net deficit in aquifer volume or a lowering of the local groundwater table level (e.g. the production rate of pre-existing nearby wells would drop to a level which would not support existing land uses or planned uses for which permits have been granted)? c) Substantially alter the existing drainage pattern of the site or area, including through the alteration of the course of a stream or river, in a manner which would result In substantial erosion or siltation on- or off- site? Ell) Substantially alter the existing drainage pattern of the site or area, including through the alteration of the course of a stream or river, or substantially increase the rate or amount of surface runoff in a manner in which would result in flooding on- or off site? e) Create or contribute runoff water which would exceed the capacity of existing or planned stormwater drainage systems or provide substantial additional sources of polluted runoff? i) Otherwise substantially degrade water quality? III Place housing within a 100-year flood hazard area as mapped on federal Flood Hazard Boundary or Flood Insurance Rate Map or other flood hazard delineation map? h) Place within a 100-year flood hazard area structures which would impede or redirect flood flows? I) Expose people or structures to a significant risk of loss, Injury or death Involving flooding, including flooding as a result of the failure of a levee or dam? Appendix A. Environmental Checklist P p ea e? ?gF € crx e? a?E ?a 3?°yy ??? e?fr ?? ,?3 $e ,??$3 ^sa?c X E ?E c$w gi Ec ER P- g g EP e E ? "SS z $s s J.rc JY?5 i The Met at South Coast Multi-Family Residential Project June 2013 Final Mitigated Negative Declaration-Addendum A-6 75B-73 City of Santa Ana Appendix A. Environmental Checklist W 38 2? Scg v.e ?? ? ?? 5 C?a a J JE ISSUES: j) Inundation by seiche, tsunami, or mudflow? 10 LAND USE AND PLANNING Would the project: a) Physically divide an established community? b) Conflict with any applicable land use plan, policy, or regulation of an agency with jurisdiction over the project (including, but not limited to the general plan, specific plan, local coastal program, or zoning ordinance) adopted for the purpose of avoiding or mitigating an environmental effect? C) Conflict with any applicable habitat conservation plan or natural community conservation plan? 11 MINERAL RESOURCES Would the project: a) Result in the loss of availability of a known mineral resource that would be of value to the region and the residents of the state? b) Result in the loss of availability of a locally- important mineral resource recovery site delineated on a local general plan, specific plan or other land use plan? 12 a) NOISE Would the project result In Exposure of persons to or generation of noise levels in excess of standards established in the local general plan or noise ordinance, or applicable standards of other agencies? Exposure of persons to or generation of excessive groundborne vibration or groundborne noise levels? A substantially permanent increase in ambient noise levels In the project vicinity above levels existing without the project? The Met at South Coast Multi Family Residential project Final Mitigated Negative Declaration-Addendum A-7 June 2013 75B-74 City of Santa Ana ISSUES: d) A substantial temporary or periodic increase in ambient noise levels in the project vicinity above levels exisling without the project? e) For a project located within an airport land use plan or, where such a plan has not been adopted, within two miles of a public airport or public use airport, would the project expose people residing or working in the project area to excessive noise levels? f) For a project within the vicinity of a private airstrip, would the project expose people residing or working in the project area to excessive noise levels? 13 POPULATION AND HOUSING Would the project: a) Induce substantial population growth in an area, either directly (for example, by proposing new homes and businesses) or indirectly (for example, through extension of roads or other infrastructure)? b) Displace substantial numbers of existing housing, necessitating the construction of replacement housing elsewhere? C) Displace substantial numbers of people, necessitating the construction of replacement housing elsewhere? 14 PUBLIC SERVICES Would the project: a) Result in substantial adverse physical impacts associated with the provision of new or physically altered governmental facilities, need for new or physically altered governmental facilities, the construction of which could cause significant environmental impacts, in order to maintain acceptable service ratios, response times or other performance objectives for any of the following public services: i) Fire pr otection? it) Police protection? J I_ The Met at South Coast Multi-Famlly Residential Project June 2013 Final Mitigated Negative Declaration -Addendum A-8 Appendix A. Environmental Checklist w C ?a al e c¢ 5 _ E. RL ?S ?g 3rc°i E_° E 3 4 c fC N 75B-75 City of Santa Ana Appendix A. Environmental Checklist SSUES ?4 fly Ez W q?yp G,A l aS ? Z _ `» E •Xi? z s '', $ z a m g G Q LL Iii) Schools? iv) Parks? I v) Other public facilities? 16 RECREATION Would the project: a) Increase the use of existing neighborhood and regional parks or other recreational facilities such that substantial physical deterioration of the facility would occur or i be accelerated? b) Does the project include recreational ' facilities or require the construction or expansion of recreational facilities which might have an adverse physical effect on . the environment? _I. 16 TRANSPORTATION Would the project: a) Conflict with an applicable plan, ordinance i or policy establishing measures of 1 effectiveness for the performance of the y, circulation system, taking into account all modes of transportation including mass transit and non-motorized travel and relevant components of the circulation system, including but not limited to intersections, streets, highways and freeways, pedestrian and bicycle paths, and mass transit? _ b) Conflict with an applicable congestion management program, including, but not limited to level of service standards and travel demand measures, or other standards established by the county congestion management agency for designated roads or highways? c) Result in a change in air traffic patterns, Including either an increase in traffic levels or a change in location that results in substantial safety risks? The Met at South Coast Multi-Family Residential Project June 2013 Final Mitigated Negative Dedafation -Addendum A-9 75B-76 City of Santa Ana ISSUES: d) Substantially increase hazards due to a design feature (e.g., sharp curves or dangerous intersections) or incompatible uses (e.g., farm equipment)? e) Result in inadequate emergency access? Q Conflict with adopted policies, plans, or programs regarding public transit, bicycle, or pedestrian facilities, or otherwise decrease the performance or safety of such facilities? 17 UTILITIES AND SERVICE SYSTEMS Would the project: a) Exceed wastewater treatment requirements of the applicable Regional Water Quality Control Board? b) Require or result in the construction of new water or wastewater treatment facilites or expansion of existing facilities, the construction of which could cause significant environmental effects? c) Require or result in the construction of new storm water drainage facilities or expansion of existing facilities, the construction of which could cause significant environmental effects? d) Have sufficient water supplies available to serve the project from existing entitlements and resources, or are new or expanded entitlements needed? e) Result in a determination by the wastewater treatment provider which serves or may serve the project that it has adequate capacity to serve the project's projected demand In addition to the providers existing commitments? f) Be served by alandfill with sufficient permitted capacity to accommodate the project's solid waste disposal needs? g) Comply with federal, state, and local statutes and regulations related to solid waste? Appendix A. Environmental Checklist y rw e.g ea `o ?a y e t th I a g as g K ' C ? ? _ ? T 22 N fit Q N6i ?ap 1TK 2 Q The Met at South Coast Multi-Famlly Residential Project June 2013 Final Mitigated Negative Declaration-Addendum A-30 75B-77 City of Santa Ana Appendix A. Environmental Checklist IL 5q M i g ? 6 3 a 3 ., F? G mW $S rc? rcgE ?.? ,? -all gg y ?„ ae 9,31 ',, 2 SE ;. Lay s+s?? ISSUES: E 'NK ?i ii o: ]Eu 18 MANDATORY FINDINGS OF SIGNIFICANC E a) Does the project have the potential to degrade the quality of the environment, substantially reduce the habitat of a fish or wildlife species, cause a fish or wildlife population to drop below self-sustaining levels, threaten to eliminate a plant or animal community, reduce the number or restrict the range of a rare or endangered plant or animal or eliminate important examples of the major periods of California i history or prehistory? j b) Does the project have impacts that are individually limited, but cumulatively considerable? ('Cumulatively considerable' means that the incremental effects of a project are considerable when viewed in connection with the effects of past projects, j '.. the effects of other current projects, and the '. effects of probable future projects)? _ c) Does the project have environmental effects I which will cause substantial adverse effects on human beings, either directly or indirectly? I The Met at South Coast Multl-Family Residential Project tune 2013 Final Mitigated Negative Declaration-Addendum A-11 75B-78 Summary Report: Lit6ra® Change-Pro ML 6.5.0.409 Document Comparison done on 6/28/2013 9:24.32 AM Style Name: Default Style Original Filename: Original DMS:dm://IRVLIB/I 153942/1 Modified Filename: Modified DMS: dnr://IRVLIB/1153834/1 Changes: Add 244 Delete- 190 Move-From 5 Move TO 5 Table Insert 0 Tabie-Delete 0 Embedded Graphics Visio, ChemDraw, Images etc. 0 Embedded Excel 0 Total Changes; 444 75B-79 75B-80 (ROH 08/05/13) ORDINANCE NO. NS-XXX AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING A SECOND AMENDED DEVELOPMENT AGREEMENT BETWEEN THE CITY OF SANTA ANA AND VDC AT THE MET, LLC, A CALIFORNIA LIMITED LIABILITY COMPANY THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES ORDAIN AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. The City is authorized pursuant to Government Code Sections 65864 through 65869.5 to enter into development agreements with persons having legal or equitable interests in real property for the purpose of establishing certainty for both City and owner in the development process. B. The City enters into this Second Amended Development Agreement pursuant to the provisions of the Government Code and applicable City policies. C. The Planning Commission has, following a duly noticed public hearing, on July 8, 2013, recommended approval of this Second Amended Development Agreement. D. The purpose of this Second Amended Development Agreement is to revise the Amended Development Agreement, dated April 16, 2012, to allow for the assignment of the Development Agreement for the property located at 200 East First American Way, Santa Ana, including all of the rights, duties, obligations, and benefits contained therein, to the prospective new property owner. E. The project and the use that the owner proposes in connection with the property have been extensively reviewed and considered by the City, and such proposed development and use have been found to accommodate the City's recommendations and suggestions in order to protect the public's interest to enhance the desirability of such proposed development and use. The terms and conditions of this Second Amended Development Agreement have been found to be fair, just and reasonable, and the City has concluded that the pursuit of the Project will serve the interests of the City. Ordinance No. NS-XXX Page 1 of 3 75B-81 F. The City Council has held a noticed public hearing on this Ordinance and has considered all testimony presented thereto. G. Additionally, an addendum to the Mitigated Negative Declaration and Mitigation Monitoring Program, Environmental Review No. 2011-46, have been approved and certified by this Council by resolution simultaneously with the introduction of this ordinance. H. The proposed project will not adversely affect the General Plan, as is expressly set forth in the Request for Council Action dated August 5, 2013, together with all supporting documents, which are incorporated herein by this reference. Section 2. The Second Amended Development Agreement, a true and correct copy of which is attached hereto as Exhibit 1, is hereby approved, and the City Manager and Clerk of the Council are authorized to execute it on behalf of the City with such non- substantive changes as may be authorized by the City Manager and City Attorney. The Clerk of the Council is hereby authorized and directed to cause this Development Agreement to be recorded with the County Recorders Office. Section 3. If any section, subsection, sentence, clause, phrase or portion of this ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of Santa Ana hereby declares that it would have adopted this ordinance and each section, subsection, sentence, clause phrase or portion thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional. ADOPTED this day of 12013. Miguel A. Pulido Mayor Ordinance No. NS-XXX Page 2 of 3 75B-82 APPROVED AS TO FORM: Sonia R. Carvalho City Attorney By: Ryan O. Hodge Assistant City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify that the attached Ordinance No. NS-XXX to be the original ordinance adopted by the City Council of the City of Santa Ana on , and that said ordinance was published in accordance with the Charter of the City of Santa Ana. Date: Clerk of the Council City of Santa Ana Ordinance No. NS-XXX Page 3 of 3 75B-83 RECORDING REQUESTED BY: Clerk of the City Council City of Santa Ana WHEN RECORDED MAIL TO: Clerk of the Council City of Santa Ana 20 Civic Center Plaza M-30 P.O. Box 1988 Santa Ana, California, 92702 SECOND AMENDED DEVELOPMENT AGREEMENT by and between THE CITY OF SANTA ANA, a California municipal corporation, and VDC AT THE MET, LLC, a California limited liability company EXHIBIT 1 75B-84 DEVELOPMENT AGREEMENT THIS SECOND AMENDED DEVELOPMENT AGREEMENT ("Second Amendment") is entered as of this day of , 2013, by and between THE CITY OF SANTA ANA ("City"), a charter city and municipal corporation, and VDC AT THE MET, LLC ("VDC"), a California limited liability company. The City and VDC are at times referred to individually as "Parry" and collectively as "Parties" herein. RECITALS A. Sections 65864 through 65869.5 of the California Government Code (the "Development Agreement Laws") authorize City to establish procedures to enter into, amend, and extend binding development agreements with persons having legal or equitable interests in real property located within the City for development of the property; B. The purpose of this Second Amendment is to assign and make certain minor changes to the previously-approved "Amended Development Agreement Between the City of Santa Ana and VDC At The Met, LLC, a California Limited Liability Company," dated April 16, 2012, and recorded in the Orange County Recorder's Office as Document No. (the "First Amended DA"); C. Pursuant to an order of Los Angeles Superior Court Judge James C. Chalfant in Case No. BC 484031, dated September 7, 2012, the subject property is currently controlled by David Wald, a receiver appointed by the Los Angeles Superior Court with full control and authority over VDC and the subject property. A true and correct copy of said order is attached hereto as Exhibit "A" and incorporated herein by this reference; D. Specifically, the Parties now desire to amend the First Amended DA, by way of this Second Amendment, to assign the First Amended DA, including all of the rights, duties, obligations, and benefits contained therein, from VDC to FIRST ROCK SANTA ANA, LLC ("First Rock"), a California limited liability company, which is the development entity for GENESIS REAL ESTATE GROUP, INC. ("Genesis"), a Texas corporation. The assignment is subject to the finalization of the sale of the subject property to First Rock, which was authorized by another order of Los Angeles Superior Court Judge James C. Chalfant in Case No. BC 484031, dated April 16, 2013. A true and correct copy of said order is attached hereto as Exhibit "B" and incorporated herein by this reference; E. In addition, the Parties desire to make minor changes to the First Amended DA, by way of this Second Amendment, including to (1) eliminate the two-year prohibition against assignments contained in Section 4.3 of the First Amended DA; (2) remove all references to the previous applicant, Vineyard Development ("Vineyard"), and the previous developer, Ryan Ogulnick ("Ogulnick"), from the First Amended DA; and (3) correct the number of total units to be built pursuant to the approved project; and, F. All other provisions of the First Amended DA, including all rights, duties, obligations, and benefits contained therein, shall remain fully intact and unchanged, and shall not be modified in any way by this Second Amendment. 2 75B-85 AGREEMENT NOW, THEREFORE, in consideration of the mutual covenants and promises of the parties contained herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows: Section 1. That subsection 1.1(4) of the First Amended DA is hereby amended to read that the approved project will consist of 271 residential units. Section 2. That subsections 4.3 and 4.3.1 of the First Amended DA are hereby deleted in their entirety and are replaced with the following: "4.3 Assignment. Owner shall have the right to transfer or assign the Property, and its interests in and rights and obligations under this Agreement, in whole or in part, to any person, entity (public or private), partnership, joint venture, firm or corporation at any time during the term of this Agreement; provided, however, that except as provided in Section 4.3.1 of this Agreement, the rights of Owner under this Agreement may not be transferred or assigned unless the written consent of the Council is first obtained and any transfer or assignment of the rights under this Agreement shall include in writing the assumption of the duties, obligations, and liabilities arising from this Agreement if the City grants written consent to transfer the rights. The rights of the Owner hereunder shall not be subject to assignment by attachment, execution, or proceedings under any provision of the Bankruptcy Act, and any such assignment or transfer shall be wholly void and of no force and effect unless such written consent thereto be obtained from the Council. Such transfer or assignment shall not relieve Owner of any duty, obligation or liability to City without the consent of the City. During the term of this Agreement, any approved assignee or transferee of the rights under this Agreement shall observe and perform all of the duties and obligations of Owner contained in this Agreement as such duties and obligations pertain to the portion of the Property transferred or assigned. Any and all approved successors and assignees of Owner shall have all of the same rights, benefits, duties, obligations, and liabilities of Owner under this Agreement. If the Property is subdivided, any subdivided parcel may be sold, mortgaged, hypothecated, assigned, or transferred to persons for development by them in accordance with the provisions of this Agreement. Upon assignment or transfer of the rights of Owner under this Agreement, the obligations of Owner and the transferee or assignee shall be joint and several. 3 75B-86 4.3.1 Permitted Assignments. The prohibition against transfer of ownership of the Property as defined in section 4.3 above shall not apply to, and the City hereby consents to, the following: (a) Associations, including limited partnerships, limited liability companies, or joint ventures with other entities for the purpose of performing Owner's obligations under this Agreement, provided Owner retains sole operational and managerial control. (b) Easements or temporary permits to facilitate development of the Property. (c) Deeds of trust or other financing documents executed for the purpose of securing loans to Owner made to finance the development of the Property, and transfers to any person or entity pursuant to a foreclosure or deed in lieu of foreclosure of such deed of trust or other, similar, financing documents and any subsequent transfer by any such person or entity. Section 3. ASSIGNMENT. The City Council of the City of Santa Ana hereby approves the assignment of this Agreement from VDC, pursuant to the authority granted by Los Angeles Superior Court Judge James C. Chalfant to the receiver appointed with full control over VDC and the subject property, to First Rock, subject to the finalization of the sale of the subject property to First Rock. Section 4. INTEGRATION. Except as expressly provided to the contrary herein, all provisions of the First Amended DA shall remain in full force and effect. The First Amended DA and this Second Amendment shall collectively be referred to as the "Agreement" throughout this document. The Agreement integrates all of the terms and conditions of agreement between the Parties, and supersedes all negotiations and previous agreements between the Parties with respect to the subject matter hereof. Section 5. EFFECTIVE DATE This Second Amendment shall take effect upon the completion of both the closing of escrow on the property subject to the Agreement by First Rock and the date the ordinance approving this Second Amendment takes effect. a 75B-87 IN WITNESS WHEREOF, the parties hereto have executed this Agreement the date and year first above written. ATTEST: MARIA D. HUIZAR Clerk of the Council APPROVED AS TO FORM: SONIA R. CARVALHO City Attorney By: Ryan O. Hodge Assistant City Attorney CITY OF SANTA ANA KEVIN O'ROURKE Interim City Manager VDC AT THE MET, LLC A California limited liability company DAVID WALD Receiver 75B-88 75B-89 ROH - 08/05/13 RESOLUTION NO. 2013- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING AN ADDENDUM TO THE MITIGATED NEGATIVE DECLARATION AND MITIGATION MONITORING PROGRAM, ENVIRONMENTAL REVIEW NO. 2011-46 FOR THE PROPERTY LOCATED AT 200 EAST FIRST AMERICAN WAY BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. First Rock Santa Ana, LLC, development entity for Genesis Real Estate Group, is requesting the approval and adoption of an addendum to the Mitigated Negative Declaration and Mitigation Monitoring Program, Environmental Review No. 2011-46, to accurately coincide with the project as detailed in amended Development Agreement No. 2012-01, and to facilitate a change in ownership to First Rock for The Met development project located at 200 East First American Way. B. The Planning Commission of the City of Santa Ana held a duly noticed public hearing on July 8, 2013, and voted to recommend that the City Council approve and adopt the addendum to the Mitigated Negative Declaration and Mitigation Monitoring Program, Environmental Review No. 2011-46. Section 2. The City Council has reviewed and considered the information contained in the addendum to the mitigated negative declaration and mitigation monitoring program, Environmental Review No. 2011-46, prepared with respect to this Project. The City Council has, as a result of its consideration and the evidence presented at the hearings on this matter, determined that, as required pursuant to the California Environmental Quality Act ("CEQA") and the State CEQA Guidelines, the addendum to the mitigated negative declaration and mitigation monitoring program adequately addresses the expected environmental impacts of this Project. On the basis of this review, the City Council again finds that there is no evidence from which it can be fairly argued that the Project will have a significant adverse effect on the environment. The City Council hereby certifies and approves the addendum to the mitigated negative declaration and mitigation monitoring program and directs that any necessary Notice of Determination be prepared and filed with the County Clerk of the County of Orange in the manner required by law. Resolution No. 2013-xxx Page 1 of 3 75B-90 Section 3. The City Council of the City of Santa Ana after conducting the public hearing hereby approves the addendum to the Mitigated Negative Declaration and Mitigation Monitoring Program, Environmental Review No. 2011-46. This decision is based upon the evidence submitted at the above said hearing, which includes, but is not limited to: the Request for Council Action dated August 5, 2013, and exhibits attached thereto; and the public testimony, written and oral, all of which are incorporated herein by this reference. Section 4. This decision rendered by the City Council of the City of Santa Ana is final and is subject to judicial review pursuant to California Code of Civil Procedure section 1094.6. The Clerk of the Council shall give direct notice to the applicant of the Council's decision and these findings. ADOPTED this day of 2013 Miguel A. Pulido Mayor APPROVED AS TO FORM: Sonia R. Carvalho City Attorney By: Ryan O. Hodge Assistant City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers Resolution No. 2013-xxx Page 2 of 3 75B-91 CERTIFICATE OF ATTESTATION AND ORIGINALITY I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2005-XXX to be the original resolution adopted by the City Council of the City of Santa Ana on Date: Clerk of the Council City of Santa Ana Resolution No. 2013-xxx Page 3 of 3 75B-92