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CONTRACT 5979 Reimbursement Agreement CLOSEDAgreement No. 5979 REIMBURSEMENT AGREEMENT This Reimbursement Agreement ("Agreement") is entered into as of October 23, 2020, by and between the City of EI Segundo, a general law city and municipal corporation ("City"), and Artisan Realty Advisors, a Delaware limited liability company ("Applicant"). The parties agree as follows: Recitals. This Agreement is made with reference to the following facts and circumstances: a. The Applicant intends to develop additional leasable space on its property located at Pacific Corporate Towers located at 100, 200 and 222 North Pacific Coast Highway (the "Property"). The Applicant first seeks, however, City's assistance to determine if such development is a permissible under use restriction agreements recorded against the Property; and if not, to ascertain if and how those agreements can be modified or removed (the "Preliminary Project"). b. The Preliminary Project requires attorney and staff time to make the determinations required for the Preliminary Project. Additionally, if the Applicant decides to pursue City applications, the Project may require the City to incur costs relating to: the retention of professional consultants; attorney time; work performed by City staff to complete the number of tasks including drafting documents and environmental review; zoning review, plans review for compliance with City standards, building code compliance, preparation of reports, and project management duties; the reasonable processing costs related to review and inspection of the Project; and the costs of implementing the conditions of approval (collectively, "Project Costs"). C. City believes it is in the public interest for Applicant to pay for such Project Costs. Applicant understands that all work performed by the City related to the Project will be under the direction of City, but at Applicant's expense. 2. gity Reimbursement. Applicant agrees to fully reimburse the City for the Project Costs. The City has estimated the Preliminary Project Costs as being approximately $5,000. However, the Applicant acknowledges that the actual amount of such costs and expenses may be different. Nonetheless, the Applicant agrees to reimburse the City for the full amount of such actual costs in the manner provided in this Agreement. City will provide Applicant with an accounting of the Project Costs on a monthly basis, which accounting the Applicant agrees will be conclusive, in the absence of manifest error. The total of the costs of the Project, as disclosed by the accounting, is called the "Reimbursement Amount." 3. City has No Obiioation to Aoorove Prolect. By signing this agreement, Applicant acknowledges and understands that this Agreement in no way obligates the City to approve any of the entitlements or environmental documents for the Project. The City and its elected and appointed officials retain sole discretion to either approve or deny any of the environmental documents or entitlements that are subject of this Agreement and need to effectuate the Project. 1 Agreement No. 5979 4. Method of Reimbursement. a. Except as provided below, upon execution of this Agreement, Applicant agrees to deposit with City $5,000 ("Deposit Amount") which represents 100 percent of the estimated Reimbursement Amount for processing the Preliminary Project. Costs associated with the Project will be charged against the deposit amount. b. The Deposit Amount will be placed in a non-interest bearing trust account established by the City Manager. Applicant understands and agrees that City will not pay interest to Applicant on the Deposit Amount and Applicant will not seek such interest payments from City. C. RReeotenishment Deposit. Whenever the Deposit Amount balance falls below $500.00, the City may request the Applicant replenish the amount ("Replenishment Deposit"). Applicant agrees to deliver a Replenishment Deposit to the City within 10 business days following the City's request. d. Should the actual Reimbursement Amount exceed the Deposit Amount, Applicant agrees to promptly pay City any difference. Should the Reimbursement Amount be less than the Deposit amount, City will refund the Applicant any remaining Deposit amount to applicant within 30 days after determining the Reimbursement Amount. 5.itv Administrative Costs. Administrative costs incurred by City, including, but not limited to, staff time, legal costs, fees and services, must be reimbursed on a time and materials basis based on current City reimbursement rates. Such costs will be deducted by City from the Deposit Amount on a monthly basis. 6. Awlicant Default. Should Applicant fail to perform any of its obligations under this Agreement, then City may, at its option, pursue any one or more or all of the remedies available to it under this Agreement, at law or in equity. Without limiting any other remedy which may be available to it, if Applicant fails to perform any of its obligations under this Agreement, City may cease performing its obligations under this Agreement and may bring an action to recover all costs and expenses incurred by the City in completing the studies, together with interest thereon from the date incurred at the rate of 10% per annum. 7. Term. This Agreement will terminate the later of: (i) 12 months after City staff delivers their written response to the questions posed in Ms. Kimberly Christensen's Letter to the City dated August, 24, 2020, and any follow up questions that can reasonably be answered, and which arrive prior to above response and not more than 60 days after said response; or (ii) if an application is filed within the 12 months, then when the application is acted upon is formally withdrawn. Disapproval of the Project or the Applicant's withdrawal of the application does not excuse Applicant from reimbursing the City for the Project Costs incurred up to such date of disapproval or withdrawal pursuant to this Agreement. Agreement No. 5979 S. CornD ance with Law. Applicant will, at its sole cost and expense, comply with all of the requirements of all federal, state, and local authorities now in force, or which may hereafter be in force, pertaining to this Agreement. 9. Waiver of Breach. Any express or implied waiver of a breach of any term of this Agreement will not constitute a waiver of any further breach of the same or other term of this Agreement. 10. Insolvencv: Receiver. Either the appointment of a receiver to take possession of all or substantially all of the assets of Applicant, or a general assignment by Applicant for the benefit of creditors, or any action taken or offered by Applicant under any insolvency or bankruptcy action, will constitute a breach of this Agreement by Applicant, and in such event this Agreement will automatically cease and terminate if Applicant or its successor or assign cease or fails to timely pay any amount due and payable by Applicant (or its successor or assign) under this Agreement. Notices. Except as otherwise expressly provided by law, all notices or other communications required or permitted by this Agreement or by law to be served on or given to either party to this Agreement by the other party will be in writing and will be deemed served when personally delivered to the party to whom they are directed, or in lieu of the personal service, upon deposit in the United States Mail, certified or registered mail, return receipt requested, postage prepaid, addressed to: Applicant: Artisan Realty Advisors Attn: Mark R. Laderman, Managing Partner 3000 Olympic Boulevard, Suite 1255 Santa Monica, CA 90404 (310) 315-4850 mark@artisanra.com City at: City of EI Segundo Attn: Sam Lee, Director 350 Main Street EI Segundo, CA 90245 (310) 524-2393 slee@elsegundo.org Either party may change its address for the purpose of this Section by giving written notice of the change to the other party. 11. Acceotance of Electronic Signatures. The Parties agree that agreements ancillary to this Agreement and related documents to be entered into in connection with this Agreement will be considered signed when the signature of a party is delivered by electronic mail in "portable document format" (i.e., .pdf) form, or by facsimile transmission. Such signature will be deemed to be and treated in all respects as an original signature. 3 Agreement No. 5979 12. Coverninq Law. This Agreement is made in and will be construed in accordance with the laws of the State of California, and exclusive venue for any action involving this Agreement will be in Los Angeles County. 13. Partial Invalidity. Should any provision of this Agreement be held by a court of competent jurisdiction to be either invalid or unenforceable, the remaining provisions of this Agreement will remain in effect, unimpaired by the holding. 14. Integration. This instrument and its attachments constitute the sole agreement between City and Applicant respecting the matters above and correctly sets forth the obligations of City and Applicant. 15. Construction. The language of each part of this Agreement will be construed simply and according to its fair meaning, and this Agreement will never be construed either for or against either party. 16. Authority/Modification. The Parties represent and warrant that all necessary action has been taken by the Parties to authorize the undersigned to execute this Agreement and to engage in the actions described herein. This Agreement may be modified by written amendment. The City's manager, or designee, may execute any such amendment on behalf of City. 17. Counteroarts. This Agreement may be executed in any number of counterparts, each of which will be an original, but all of which together will constitute one instrument executed on the same date. [Signatures on following page] 0 Agreement No. 5979 IN WITNESS WHEREOF the parties hereto have executed this contract the day and year first hereinabove written. CITY OF EL SEGUNDO, A municipal corporation. v Scott M tnick, City Manager ATTEST: r q-wie" Tracy Weaver, Ci"ty Clerk APPROVED AS TO FORM: for Mark D. Hensley, City Attorney 5 ARTISAN REALTYY DVISORS, A Delaware LLC rman, Managing