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ORDINANCE 1406ORDINANCE NO. 1406 AN ORDINANCE AMENDING DEVELOPMENT AGREEMENT NO. 03 -01 BETWEEN ROSECRANS - SEPULVEDA 2, LLC, AND ROSECRANS- SEPULVEDA 3, LLC, AND THE CITY OF EL SEGUNDO AFFECTING THE PLAZA EL SEGUNDO DEVELOPMENT. The City Council of the City of El Segundo does ordain as follows: SECTION 1: The City Council finds and declares that: A. On March 15, 2005, the City Council of the City of El Segundo approved Environmental Assessment No. 631, General Plan Amendment (GPA No. 03 -4), Zone Change (ZC No. 03 -2) and Subdivision (SUB 03 -7, Vesting Tentative Tract Map No. 061630), and Development Agreement No. 03- 01, to re- designate and re -zone an approximately 54.9 -acre property at the northeast corner of Sepulveda Boulevard and Rosecrans Avenue. The applicant is developing a 425,000 square foot shopping center, known as Plaza El Segundo; B. On June 21, 2007, the applicant filed an application for an amendment to Development Agreement No. 03 -01; C. The application from Rosecrans - Sepulveda Partners 2, LLC and Rosecrans - Sepulveda Partners 3, LLC was reviewed by the City's Planning and Building Safety Department for, in part, consistency with the General Plan and conformity with the El Segundo Municipal Code ( "ESMC "); D. In addition, the City reviewed the project's environmental impacts under the California Environmental Quality Act (Public Resources Code §§ 21000, et seq., "CEQA "), the regulations promulgated thereunder (14 Cal. Code of Regulations § §15000, et seq., the "CEQA Guidelines "), and the City's Environmental Guidelines (City Council Resolution No. 3805, adopted March 16, 1993); E. The Planning Commission held a public hearing regarding the application on June 28, 2007. Thereafter, the Planning Commission adopted Resolution No. 2625, recommending that the City Council amend Development Agreement No. 03 -01; F. On July 17, 2007, the Council held a public hearing and considered the information provided by the Planning Commission, City Staff, public testimony, and representatives of the applicant Rosecrans - Sepulveda Partners 2, LLC and Rosecrans - Sepulveda Partners 3, LLC; and 44386 \1289346v2 vs. 12893460 -1- G. This Ordinance and its findings are made based upon the testimony and evidence presented to the Council at its July 17, 2007, public hearing including, without limitation, the staff report submitted by the Planning and Building Safety Department. SECTION 2: Environmental Assessment. Because of the findings set forth in Planning Commission Resolution No. 2625, adopted June 28, 2007, and the facts set forth in the administrative record including, without limitation, the staff report presented to the City Council, the proposed amendment to Development Agreement No. 03 -01 is consistent with the FEIR, entitled Sepulveda /Rosecrans Site Rezoning and Plaza El Segundo Development Final Environmental Impact Report (State Clearinghouse No. 2003121037), certified by the City Council on March 15, 2005 and the Statement of Overriding Considerations adopted in Section 5 of City Council Resolution No. 4415 on March 1, 2005. None of the elements set forth in Public Resources Code § 21166 or CEQA Guidelines § 15162 exist. Accordingly, the City need not prepare a subsequent or supplemental Environmental Impact Report, Mitigated Negative Declaration, or Addendum before the City Council adopts this Ordinance approving the First Amendment to Development Agreement No. 03 -01. Nevertheless, the City Council reaffirms and readopts the Statement of Overriding Considerations set forth in Exhibit "A" to Resolution No. 4415 adopted by the City Council at a duly noticed public hearing on March 15, 2005, which is incorporated by reference as if fully set forth in this Ordinance. SECTION 3: Amendments to the Development Agreement. Development Agreement No. 03 -01 is amended as set forth in attached Exhibit 'A," which is incorporated into this Ordinance by reference. SECTION 4: If any part of this Ordinance or its application is deemed invalid by a court of competent jurisdiction, the city council intends that such invalidity will not affect the effectiveness of the remaining provisions or applications and, to this end; the provisions of this Ordinance are severable. SECTION 5: This Ordinance will remain effective until superseded by a subsequent ordinance. SECTION 6: The City Clerk is directed to certify the passage and adoption of this Ordinance; cause it to be entered into the City of El Segundo's book of original ordinances; make a note of the passage and adoption in the records of this meeting; and, within fifteen (15) days after the passage and adoption of this Ordinance, cause it to be published or posted in accordance with California law. SECTION 7: This Ordinance will become effective on the thirty -first (31 st) day following its passage and adoption. 44386 \1289346v2 vs. 1289346v1 -2- PASSED, APPROVED AND ADOPTED tjais 7th day of August 2007. McDowell ATTEST: STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS CITY OF EL SEGUNDO I, Cindy Mortesen, City Clerk of the City of El Segundo, California, do hereby certify that the whole number of members of the City Council of said City is five; that the foregoing Ordinance No. 1406 was duly introduced by said City Council at a regular meeting held on the 17th day of July 2007, and was duly passed and adopted by said City Council, approved and signed by the Mayor, and attested to by the City Clerk, all at a regular meeting of said Council held on the 7th day of August, 2007, and the same was so passed and adopted by the following vote: AYES: McDowell, Busch, Boulgarides, Fisher, Jacobson NOES: None ABSENT: None ABSTAIN: None ff- 01,awiff!IM� • • - PAPlanning &Building Safety \Projects \EA - 763 \Council Docs\ EA763 Plaza. ES .Ord.Amend.2007.08.7.Final.doc 44386 \1289346v2 vs. 1289346v1 -3- RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: CITY CLERK CITY OF EL SEGUNDO 350 Main Street El Segundo, California 90245 r; J . a EXEMPT FROM RECORDER'S FEES Pursuant to Government Code § 6103 FIRST AMENDMENT TO DEVELOPMENT AGREEMENT BY AND AMONG THE CITY OF EL SEGUNDO AND ROSECRANS- SEPULVEDA PARTNERS, 2, LLC AND ROSECRANS - SEPULVEDA PARTNERS, 3, LLC (AREA A) THIS AGREEMENT SHALL BE RECORDED WITHIN TEN DAYS OF EXECUTION BY ALL PARTIES HERETO PURSUANT TO THE REQUIREMENTS OF GOVERNMENT CODE §65868.5 44386\ 1285096v 1 8/22/2007 TABLE OF CONTENTS 3 4 5 5 �+ s% Page 1. Recitals ......................................................................................................... ..............................1 2. Revision to Section 4.1.6 ............................................................................. ..............................1 3. Remainder of Development Agreement to Remain in Full Force and Effect ............................1 DEFINITIONS............................................................................................. ............................... A -1 44386 \1285096v1 j 8/22/2007 7 1 �,.i F.y'r ✓ �. 3 FIRST AMENDMENT TO DEVELOPMENT AGREEMENT This First Amendment to Development Agreement ( "First Amendment ") is made and entered into by and among the CITY OF EL SEGUNDO, a municipal corporation ( "City ") and ROSECRANS - SEPULVEDA PARTNERS, 2, LLC, a Delaware limited liability company ( "RSP 2 ") and ROSECRANS - SEPULVEDA PARTNERS, 3, LLC, a Delaware limited liability company ( "RSP 3 ") as of this 30th day of July, 2007. RSP 2 and RSP 3 are hereinafter referred to collectively as "Developer." City and Developer are referred to hereinafter individually as "Party" and collectively as "Parties." In consideration of the mutual covenants and agreements contained in this First Amendment, City and Developer agree as follows: 1. Recitals. This First Amendment is made with respect to the following facts and for the following purposes, each of which is acknowledged as true and correct by the Parties: 1.1 RSP 2's and RSP 3's predecessor -in- interest, Rosecrans- Sepulveda Partners, LLC ( "RSP "), and the City are parties to a Development Agreement dated March, 2005 (the "Development Agreement "), which Development Agreement was recorded on April 6, 2005 in the Official Records of Los Angeles County as Instrument No. 05 0797875. 1.2 Unless otherwise stated in this First Amendment, all capitalized terms used in this First Amendment will carry the same definitions as those set forth in the Development Agreement. 1.3 On November 10, 2005, RSP and RSP 2 executed an Assignment and Assumption Agreement (the "RSP 2 Assignment ") whereby RSP conveyed to RSP 2, in accordance with the provisions of Section 3 of the Development Agreement, approximately 4.7 acres of the Property. The RSP 2 Assignment was recorded on January 19, 2006 in the Official Records of Los Angeles County as Instrument No. 06 0128517. On November 10, 2005, RSP and RSP 3 executed an Assignment and Assumption Agreement (the "RSP 3 Assignment ") whereby RSP conveyed to RSP 3, in accordance with the provisions of Section 3 of the Development Agreement, approximately 37.3 acres of the Property. The RSP 3 Assignment was recorded on January 19, 2006 in the Official Records of Los Angeles County as Instrument No. 06 0128518. 1.5 As of June 19, 2007, City and Developer executed Operating Memorandum No. 1 to the Development Agreement ( "Operating Memorandum No. I"), which Operating Memorandum No. 1 was recorded on , _, 2007 in the Official Records of Los Angeles County as Instrument No. 07 . For purposes of this First Amendment, the term "Development Agreement" shall include Operating Memorandum No. 1. 1.6 The Development Agreement continues to cover the Property described in Exhibit "A" attached hereto. 1.7 Section 4.1.6 of the Development Agreement currently prohibits health clubs and fitness centers within the Project. Based on Developer's leasing experience since the Project opened in November, 2006, one or more prospective tenants whose operations feature 44386 \1285096v3 1 8/22/2007 yoga exercise and whose space demands are less than 6,500 square feet, have expressed an interest in leasing space in the Project. After careful consideration, Developer and City have agreed that a use of that nature would not be inconsistent with the overall operation and quality of the Project. City and Developer have therefore agreed to amend the Development Agreement to permit one health club or fitness center to operate in the Project provided such use does not exceed 6,500 square feet of floor area. 1.8 The City Council has determined that none of the elements set forth in Public Resources Code Section 21166 or Section 15162 of the State CEQA Guidelines ( "CEQA Guidelines ") exists and therefore has determined, in accordance with Public Resources Code Section 21166 and Section 15162 of the CEQA Guidelines, that no subsequent or supplemental Environmental Impact Report, Mitigated Negative Declaration or Addendum is required to be prepared prior to adopting the Ordinance approving this First Amendment. 1.9 Section 15 of the Development Agreement provides for amendment of the Development Agreement upon mutual consent of the parties and in accordance with the procedures established by the Development Agreement Act. The City Council has found that this First Amendment has been adopted in conformance with the procedures of the Development Agreement Statute set forth in Government Code Section 65865, et seq. 1.10 On June 28, 2007, the Planning Commission held a duly noticed public hearing on this First Amendment and, at the conclusion thereof, adopted Resolution No. 2625, recommending to the City Council approval of this First Amendment. 1.11 On July 17, 2007, the City Council held a duly noticed public hearing on this First Amendment and, at the conclusion thereof, introduced Ordinance No. 1406 and on August 7, 2007, the City Council adopted Ordinance No. 1406 approving this First Amendment. Ordinance No. 1406 became effective on September 6, 2007. 2. Revision to Section 4.1.6. Section 4.1.6 of the Development Agreement is hereby amended in its entirety to read as follows: "4.1.6 Health Clubs and Fitness Centers. No health club or fitness center shall be permitted; provided, however, one (1) health club or fitness center shall be permitted, provided such use does not exceed 6,500 square feet of leasable floor area." 3. Remainder of Development Agreement to Remain in Full Force and Effect. Except as set forth in this First Amendment, all terms and conditions of the Development Agreement shall remain in full force and effect. 44386 \1285096v 1 2 8/22/2007 3 '45 5 D. IN WITNESS WHEREOF, Developer and City Segundo have executed this First Amendment on the date first above written. ATTEST *�Zw"M, Cindy Mot-66n City Clerk APPROVED AS TO FORM: By. Mark D. Hensley, City Attorney CITY: CIT". DEVELOPER: ROSECRANS - SEPULVEDA PARTNERS, 2, LLC, a Delaware limited liability company By: CCA Sepulveda, LLC, a California limited liability company Its: Managin By: Name: ✓�i � L 20 SS t Its: V L %'/Z 2r By: 1✓ Name: Its: V1 10",e s i dew [SIGNATURES CONTINUED ON NEXT PAGE] 44386\ 1285096v I 3 8/22/2007 3 °mot 5 0. - ROSECRANS - SEPULVEDA PARTNERS, 3, LLC, a Delaware limited liability company By: CCA Sepulveda, LLC, a California limited liability company Its: Managing Memb By Name:.2�t Its: By: Name: Its: y+ ; d4✓1T- 4438611285096v 1 4 8/22/2007 September 4, 2007 STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS CITY OF EL SEGUNDO ) 3455�..�s On September 4, 2007, before me, Cathy Domann, Deputy City Clerk, personally appeared Kelly McDowell, Mayor of the City of El Segundo, personally known to me to be the person whose name is subscribed to on the within instrument, and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person, or entity upon behalf of which the persons acted, executed the instrument. Witness my hand and Official Seal Cathy Do nn, Deputy City Clerk 1455?. STATE OF CALIFORNIA ) ss: COUNTY OF LOS ANGELES ) On �2iVv�r 2�a 2007 before me,u V� V C""" (here insert name_ of the officer), Notary Public, personally appeared '?tenrt✓i 4 Eric. �!nAAf - , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s).Ware subscribed to the within instrument and acknowledged to me that he4he /they executed the same in hisAker /their authorized capacity(ies), and that by hastier /their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. rA60JAYNE D. COMAN LeCoffvrdsslon #' 1654518 Notary Public Notary Public - California Los Angeles County My Caren. Mar 27, 2010 STATE OF CALIFORNIA ) ss: COUNTY OF LOS ANGELES ) On , 2007 before me, (here insert name of the officer), Notary Public, personally appeared , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is /are subscribed to the within instrument and acknowledged to me that he /she /they executed the same in his/her /their authorized capacity(ies), and that by his/her /their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Notary Public 44386\ 1285096v 1 5 8/22/2007 STATE OF CALIFORNIA ) ss: COUNTY OF LOS ANGELES ) 2007 before met (here insert name of the officer), Notary Public, personally appeared t-2�l %►� personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(4 whose name(o'j isle subscribed to the within instrument and acknowledged to me that he/she4hey executed the same in his /he"4heir authorized capacity(ies), and that by his/h signature() on the instrument the person(s), or the entity upon behalf of which the person(A) acted, executed the instrument. WITNESS my hand and official seal. jLJ Notary Public COBIAN .� f7i # Colltornla es County t„tar27, 2010 44386 \1285096v 1 6 8/22/2007 EXHIBIT "A" PROPERTY DESCRIPTION 29.2 ACRE PROPERTY: THOSE PORTIONS OF THE SOUTHWEST QUARTER OF SECTION 18 TOWNSHIP 3 SOUTH RANGE 14 WEST IN THE RANCHO SAUSAL REDONDO, IN THE CITY OF EL SEGUNDO, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA. BEGINNING AT A POINT IN THE EASTERLY LINE OF SEPULVEDA BOULEVARD, AS DESCRIBED IN THE FINAL DECREE OF CONDEMNATION RECORDED IN BOOK 13174 AT PAGE 92, OFFICIAL RECORDS OF SAID COUNTY, SAID POINT BEING 1040 FEET NORTHERLY, MEASURED ALONG SAID EASTERLY LINE, FROM THE INTERSECTION OF SAID EASTERLY LINE WITH THE NORTHERLY LINE OF LOT 4 OF TRACT NO. 1314, AS PER MAP RECORDED IN BOOK 20, PAGE 161 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY; THENCE ALONG SAID EASTERLY LINE AS FOLLOWS: SOUTH 0 °O1' EAST A DISTANCE OF 70.16 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE TO THE WEST AND HAVING A RADIUS OF 3050.00 FEET; SOUTHERLY ALONG SAID CURVE A DISTANCE OF 292.78 FEET; SOUTH 5 °29' WEST A DISTANCE OF 389.98 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE TO THE EAST AND HAVING A RADIUS OF 2950.00 FEET; SOUTHERLY ALONG SAID CURVE A DISTANCE OF 283.18 FEET; AND SOUTH 0 °O1' EAST A DISTANCE OF 3.90 FEET TO THE NORTHERLY LINE OF AFORESAID LOT 4 OF TRACT NO. 1314; THENCE ALONG THE NORTHERLY LINE OF SAID LOT 4, SOUTH 60 °41' EAST A DISTANCE OF 5.74 FEET TO THE MOST WESTERLY CORNER OF THE LAND DESCRIBED IN THE DEED TO THE PACIFIC ELECTRIC LAND COMPANY, RECORDED IN BOOK 5839, PAGE 185 OF DEEDS, RECORDS OF SAID COUNTY; THENCE ALONG THE NORTHERLY LINE OF SAID LAND SO DESCRIBED A PORTION OF WHICH IS SHOWN ON A MAP FILED FOR RECORD WITH THE DEED RECORDED IN BOOK 6708 PAGE 304 OF SAID DEED RECORDS, SOUTH 70 04 P EAST, A DISTANCE OF 219.75 FEET TO THE BEGINNING OF A CURVE CONCAVE TO THE NORTH AND HAVING A RADIUS OF 458.59 FEET; THENCE EASTERLY ALONG SAID CURVE IN SAID NORTHERLY LINE A DISTANCE OF 475.29 FEET; THENCE CONTINUING ALONG SAID NORTHERLY LINE OF SAID LAND SO DESCRIBED, NORTH 49 °56'05" EAST A DISTANCE OF 1601.41 FEET TO AN INTERSECTION WITH A LINE WHICH IS PARALLEL WITH THE SOUTH LINE OF SAID SOUTHWEST QUARTER AND PASSES THROUGH THE POINT OF BEGINNING; THENCE NORTH 89 °59'30" WEST, A DISTANCE OF 1820.11 FEET TO THE POINT OF BEGINNING. EXCEPTING THEREFROM THAT PORTION OF SAID LAND DESCRIBED AND GRANTED IN THE DEED FROM ALLIED CORPORATION, A NEW YORK CORPORATION TO CHEVRON U.S.A., INC., A CALIFORNIA CORPORATION RECORDED OCTOBER 15, 1984, AS INSTRUMENT NO. 84- 1233577, OFFICIAL RECORDS ATTACHED THERETO A RESOLUTION OF THE CITY OF EL SEGUNDO NO. 2030 DATED FEBRUARY 11, 1983, APPROVING SAID LOT LINE ADJUSTMENT. 8.1 ACRE PROPERTY: THOSE PORTIONS OF THE SOUTHWEST QUARTER OF SECTION 18 TOWNSHIP 3 SOUTH RANGE 14 WEST IN THE RANCHO SAUSAL REDONDO, IN THE CITY OF EL SEGUNDO, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA. BEGINNING AT THE INTERSECTION OF THE NORTHWESTERLY LINE OF THE LAND DESCRIBED IN DEED TO THE PACIFIC ELECTRIC LAND COMPANY RECORDED IN BOOK 5839, PAGE 185 OF DEEDS, WITH A LINE PARALLEL WITH THE SOUTHERLY LINE OF THE SOUTHWEST QUARTER OF SAID SECTION 18, WHICH PASSES THROUGH A POINT IN THE EASTERLY LINE OF SEPULVEDA BOULEVARD, AS DESCRIBED IN THE FINAL DECREE OF CONDEMNATION RECORDED IN BOOK 13174, PAGE 92, OFFICIAL RECORDS, SAID POINT BEING 1040 FEET NORTHERLY, MEASURED ALONG SAID EASTERLY LINE FROM THE INTERSECTION OF SAID EASTERLY LINE WITH THE 44386 \1285096v1 Exhibit A 8/22/2007 Page 1 NORTHERLY LINE OF LOT 4 OF TRACT NO. 1314, AS PER MAP RECORDED IN BOOK 20, PAGE 161 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY; THENCE ALONG THE ABOVE MENTIONED NORTHWESTERLY LINE SOUTH 49 056'05" WEST A DISTANCE OF 1601.41 FEET TO THE BEGINNING OF A TANGENT CURVE IN SAID NORTHWESTERLY LINE CONCAVE NORTHERLY AND HAVING A RADIUS OF 458.59 FEET; THENCE WESTERLY ALONG SAID CURVE, A DISTANCE OF 347.79 FEET TO THE NORTHERLY LINE OF THE LAND DESCRIBED IN THE DEED RECORDED IN BOOK 6706, PAGE 304, OF DEEDS; THENCE ALONG THE NORTHERLY LINE OF SAID LAST MENTIONED LAND THE FOLLOWING COURSES AND DISTANCES; SOUTH 68 °48'25" EAST 98.98 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE NORTHERLY AND HAVING A RADIUS OF 421.07 FEET; THENCE EASTERLY ALONG SAID CURVE 390.17 FEET; THENCE TANGENT TO SAID CURVE AT ITS POINT OF ENDING NORTH 58 006'05" EAST 172.86 FEET; THENCE NORTH 49 °56'05" EAST A DISTANCE OF 1388.71 FEET TO A POINT WHICH BEARS SOUTH 40 003'55" EAST FROM THE POINT OF BEGINNING; THENCE LEAVING SAID NORTHERLY LINE, NORTH 40 °03'55" WEST 200 FEET TO THE POINT OF BEGINNING. 4.7 ACRE PROPERTY PARCEL 1, IN THE CITY OF EL SEGUNDO, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, OF PARCEL MAP NO. 17911, AS PER MAP FILED IN BOOK 269 PAGES 82 THROUGH 84, INCLUSIVE OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. 44386 \1285096vl Exhibit A 8/22/2007 Page 2 DEFINITIONS 3455 a Section CEQAGuidelines ......................................................................................... ............................... 1.7 City............................................................................... ............................... ...................Introduction Developer..................................................................... ............................... ...................Introduction DevelopmentAgreement .............................................................................. ............................... 1.1 FirstAmendment ......................................................... ............................... ...................Introduction OperatingMemorandum No. 1 ..................................................................... ............................... 1.5 RSP............................................................................................................... ............................... 1.1 RSP2 ........................................................................... ............................... ...................Introduction RSP2 Assignment ........................................................................................ ............................... 1.3 RSP3 ........................................................................... ............................... ...................Introduction RSP3 Assignment ........................................................................................ ............................... 1.4 Party /Parties ................................................................. ............................... ...................Introduction 44386\ 1285096v I Definitions 8/22/2007