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3425- This page is part of your document - DO NOT DISCARD 3425 , z 051060188 TITLE(S) : .............. FEE FEE $28 F COO E wk. FED. Code 20 CODE 19 CODE 9 RECORDED/FILED IN OFFICIAL RECORDS RECORDER'S OFFICE LOS ANGELES COUNTY CALIFORNIA 05/05/05 AT 08:00am D.T.T. v Assessor's Identification Number (AIN) To be completed by Examiner OR Title Company in black ink. Number of AIN's Shown A THIS FORM IS NOT TO BE DUPLICATED RECORDING REQUESTED BY Kilroy Realty Finance Partnership, LP 12200 W Olympic Blvd. Los Angeles, CA 90064 Attention: Legal Department AND WHEN RECORDED MAIL TO: CITY CLERK CITY OF EL SEGUNDO 350 Main Street El Segundo, California 90245 515/05 3 4 2 5 y 05 1060188 (Space Above For Recorder's Use) COVENANT RESTRICTING USE OF PROPERTY This Covenant Restricting Use of Property ( "Covenant ") is entered into this 28 day of April, 2005 by and between the City of El Segundo, a general law city and municipal corporation ( "City ") and Kilroy Realty Finance Partnership, L.P., a Delaware limited partnership ( "Owner ") with respect to that certain real property commonly known as 2260 East El Segundo Boulevard, El Segundo, California and which has the legal description described in Exhibit A attached hereto ( "Property "). The parties enter into this Covenant with reference to the following facts and objectives: 1. In connection with a lease entered into between Owner and AboveNet Communications, Inc. (which lease has since been terminated), the Owner filed an application with the City, pursuant to City's General Plan ( "ESGP ") Land Use Element Light Industrial Designation and El Segundo Municipal Code ( "ESMC ") Section 20.40.020, for, and received, a permit (the "Permit ") for the construction and use of an additional building on the Property (the "Expansion Building "); 2. ESMC Section 20.40.060 F. requires that the allowable floor area ratio ( "FAR ") for the Property does not exceed 0.6:1; 3. The Property (a) currently has a lot area of 191,200 square feet, pursuant to that Area Summary prepared by Skidmore, Owings, & Merrill, LLP dated April 19, 2000, and (b) originally had one (1) structure erected on it which caused the Property to have a total of 92,109 square feet of total floor area and 74,410 square feet of net floor area ( "NFA" as defined by ESMC section 20.08.420) (the "Existing Building "); 4. The Owner has constructed the Expansion Building consisting of 42,108 of total floor area and 38,997 square feet of net floor area on the Property in accordance with the Permit; 575722.01 /wla 888888- 740/7- 8 -04/kl l rt ,. x;25 . 5. The total square feet of floor area of both the Existing Building and the Expansion Building is 134,217 ( "Total Final Space ") and the combined net square feet of the Existing Building and the Expansion Building is 113,407 ( "Total Net Square Feet "); 6. Pursuant to the FAR, the allowable net floor area of the Property is 114,720 net square feet; 7. Resolution No. 2487 of the City's Planning Commission requires the Owner to record an agreement acceptable to the City Attorney prohibiting the conversion of 19,497 square feet in the Total Final Space from equipment or storage rooms to usable floor area before the City will issue a certificate of occupancy for the Expansion Building; 8. The Owner and the City recognize that the intent of this Covenant is to allow for the construction of the Expansion Building on the Property while ensuring that the structures on the Property do not exceed the FAR for the Property. NOW THEREFORE the parties do hereby agree, covenant and warrant as follows: 1. RESTRICTIONS ON USE OF PROPERTY. The Owner must designate and maintain 19,497 square feet of the Total Final Space exclusively for use as equipment or storage rooms ( "Minimum Equipment Area "). All other uses of the Minimum Equipment Area is prohibited unless (a) the Owner removes, or causes to be removed, the Expansion Building and restores that portion of the Property on which the Expansion Building is located to substantially the same condition as existed before constructing the Expansion Building, ordinary wear and tear excepted, (b) the City specifically allows such other uses, or (c) such other uses become allowable pursuant to changes in applicable City codes. Under the circumstances in (a), (b) or (c), the Owner will not be further bound by this Covenant (i.e., the Minimum Equipment Area can be used without restriction), and the Owner and the City will reasonably cooperate to execute documents needed to terminate this Covenant. 2. REDUCTION IN MINIMUM USE AREA. The actual Minimum Equipment Area (i.e., 19,497) can be reduced in the event (a) the Building is altered (in compliance with all City requirements) such that the overall Total Final Space is reduced or (b) the City regulations regarding FAR are modified such that more of the Total Final Space may be used for other uses. 3. ALLOWABLE NET FLOOR AREA. The Owner is permitted to construct additional space consisting of up to 1,313 net square feet on the Property without violating or exceeding the FAR (i.e., allowable net floor area 114,720 minus Total Net Square Feet 113,407). 4. REMEDIES. If the Owner uses the Minimum Equipment Area in violation of paragraph No. 1 above, in addition to all other remedies available to the City at law or equity, the City is entitled to specific performance of this Covenant, including without limitation injunctive relief to prevent the use of the Property in violation of this Covenant. The Owner acknowledges that monetary damages would not remedy all of the harms that would be incurred by the City in the event of such a violation. 575722.01/wla 05 1060188 888888- 740/7- 8- 04/kll -2- al l0 425 5. BINDING ON SUCCESSORS AND ASSIGNS. This covenant runs with the Property and is for the benefit of, and be binding on, the successors in interest, assigns, and heirs of the parties. 6. ENTIRE AGREEMENT. This Covenant is the complete and final expression of the parties and supersedes all prior written and/or oral agreements or understandings of the parties with respect to the subject matter hereof. IN WITNESS WHEREOF, this Covenant has been executed as of the day and year first written above. CITY OF E"T Q EG DO By: Name: of enn Its: City Manager KILROY REALTY FINANCE PARTNERSHIP, L.P., a Delaware limited partnership By: KILROY REALTY FINANCE, INC., General PartNs-,-- By: JEFF EY C. NAWKEN Title: PRESIDENT Title: 575722.01/wla 888888 - 740/7- 8- 04/kll -3- ASSET !`dihNAMIENT 05 1060188 May 2, 2005 STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) CITY OF EL SEGUNDO ) SS 3425 On April 28, 2005, before Cathy Domann, Deputy City Clerk, personally appeared Mary Strenn, City Manager 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 she executed the same in her authorized capacity, and that by her signature on the instrument the person, or entity upon behalf of which the persons acted, executed the instrument. Witness my hand and Official Seal �" i�zmdvo�t Cathy DomShn, Deputy City Clerk C:forms \certsig 05 1050188 l��UJ ACKNOWLEDGMENT STATE OF CALIFORNIA ) )SS COUNTY OF LOS ANGELES) On March 31, 2005 , before me, Judy LaCoss , a Notary Public, personally appeared Jeffrey C. Hawken and John T. Fucci , personally known to me (or pr-eve to mo vii ia. e u*' basis of satis f *„n. evidenee) to be the person(s) whose name(s) i-s /are subscribed to the within instrument and acknowledged to me that he/she /they executed the same in hisAw/their authorized capacity(ies), and that by his,1 /their signature(s) on the instrument, the person(s), or the entity(ies) upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. JUDY LACOSS t COMM. #1329985 m N r ai ,o Notary Public- California N W , LOS ANGELES COUNTY -� My Comm. Exp. Nov 13, 2005 [Seal] 05 1060188 EXHIBIT A LEGAL DESCRIPTION All that certain real property situated in the City of El Segundo, County of Los Angeles, State of California, described as follows: PARCEL A: PARCEL 1, IN THE CITY OF EL SEGUNDO, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS SHOWN ON PARCEL MAP NO. 14364, FILED IN BOOK 113 PAGES 23 AND 24 OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, EXCEPT ALL OIL, GAS, ASPHALTUM AND OTHER MROCARBON AND OTHER MINERALS, WHETHER SIMILAR TO HEREIN SPECIFIED OR NOT, WITHIN OR THAT MAY BE PRODUCED FROM SAID LAND; PROVIDED HOWEVER, THAT THE SURFACE OF SAID LAND SHALL NEVER BE USED FOR THE EXPLORATION, DEVELOPMENT, EXTRACTION, REMOVAL OR STORAGE OF SAID OIL, GAS, ASPHALTOM AND OTHER HYDROCARBON AND OTHER MINERALS AND FURTHER PROVIDED THAT NO INSTALLATION CONSTRUCTED THEREON SHALL BE DISTURBED IN ANY MANNER IN EXTRACTING SAID RESERVED MINERALS, AS RESERVED IN THE DEED FROM STANDARD OIL COMPANY OF CALIFORNIA, RECORDED DECEMBER 20, 1960, AS INSTRUMENT NO, 1622 IN BOOK D -1069 PAGE 896, OFFICIAL RECORDS. PARCEL B: THE NON - EXCLUSIVE, PERPETUAL RIGHTS AND EASEMENTS APPURTENANT TO AND FOR THE BENEFIT OF PARCEL 1 CREATED AND ESTABLISHED BY THE DECLARATION DATED (THE "DECLARATION ") DATED JUNE 20, 1996, EXECUTED BY KILROY- FREEHOLD INDUSTRIAL DEVELOPMENT ORGANIZATION, A CALIFORNIA GENERAL PARTNERSHIP ( "K- FIDO ") AND FILED FOR RECORD JUNE 21, 1996 AS INSTRUMENT NO. 96- 986628, IN THE OFFICE OF THE COUNTY RECORDER OF LOS ANGELES COUNTY, INCLUDING, WITHOUT LIMITATON: (A) THE NON- EXCLUSIVE, PERPETUAL RIGHTS AND EASEMENTS TO UTILIZE (INCLUDING ANY AND ALL PARKING PERMITS, PARKING CARS OR OTHER ITEMS REQUIRED TO EVIDENCE THE SAME) SIXTY -EIGHT (68) PARKING SPACES (THE "PARKING STRUCTURE SPACES ") LOCATED :AITHIN THE PARKING STRUCTURE ( "PARKING STRUCTURE ") SITUATED UPON THE FOLLOWING DESCRIBED REAL PROPERTY: PARCEL 2, IN TEE CITY OF EL SEGUNDO, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS SHOWN ON PARCEL MAP NO, 14364, FILED IN BOOK 143 PAGES 23 AND 24 OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF LOS ANGELES COUNTY; TO PARK MOTOR VEHICLES; (S) THE NON - EXCLUSIVE, PERPETUAL RIGHTS AND EASEMENTS TO UTILIZE ANY OR ALL OF THE PARKING STRUCTURE (INCLUDING, WITHOUT LIMITATION, ALL ELEVATORS THEREIN) REASONABLY NECESSARY FOR VEHICULAR AND PEDESTRIAN INGRESS TO AND EGRESS FROM THE PARKING STRUCTURE SPACES; AND EXHIBIT A -1- 05 1060183 z ► ► AKINg �.« ► (C) THE NON - EXCLUSIVE,' PERPETUAL RIGHTS AND EASEMENTS TO UTILIZE ALL OF THE COMMON AREAS (AS DEFINED IN THE DECLARATION) AS EXIST FROM TIME TO TIME UPON: PARCEL 2 OR PARCEL 3, IN THE CITY OF £L SEGUNDO, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS SHOWN ON PARCEL MAP N0, 14364, FILED IN HOOK 143 PAGES 23 AND 24 OF PARCEL MAPS, IN THE OFFICE OF -THE COUNTY RECORDER OF LOS ANGELES COUNTY; FOR ALL PURPOSES ASSOCIATED WITH SUCK COMMON AREAS, SPECIFICALLY INCLUDING, WIHTOUT LIMITATION, ACCESS, INGRESS AND EGRESS FOR VEHICLES AND PEDESTRIANS OVER THOSE PORTIONS OF PARCELS 2 AND 3 OF PARCEL MAP NO. 14364, IN THE CITY OF EL GEGUNDO, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP FILED IN BOOK 143 PAGES 23 AND 24 OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF 'LAS ANGELES COUNTY, DESCRIBED AS FOLLOWS: (1) A STRIP OF LAND 24.00 FEET WIDE, LYING 12.00 FEET ON EACH SIDE OF THE FOLLOWING DESCRIBED CENTERLINE: BEGINNING AT THE NORTHEAST CORNER OF SAID PARCEL 2; THENCE ALONG THE NORTH LINE OF SAID PARCEL AND ITS WESTERLY PROLONGATION NORTH 89 DEGREES 56 MINUTES 08 SECONDS WEST 328.00 FEET. (2) A STRIP OF LAND 24.00 FEET WIDE, LYING 12.00 FEET ON EACH SIDE OF THE FOLLOWING DESCRIBED CENTERLINE: "GINNING AT THE NORTHEAST CORNER OF SAID PARCEL 2; THENCE ALONG THE NORTH LINE CF SAID PARCEL AND ITS WESTERLY PROLONGATION NORTH 89 DEGREES 56 MINUTES OB SECONDS WEST 316.60 FEET; THENCE SOUTH 00 DEGREES 03 MINUTES 07 SECONDS WEST 12.00 FEET TO THE TRUE POINT OF BEGINNING; SECONDS WEST 93.00 FEET. THENCE SOUTH 0 DEGREES 03 MINUTES 07 (3) A STRIP OF LAND 24.00 FEET WIDE, LYING 12.00 FEET ON EACH SIDE OF THE FOLLOWING DESCRIBED CENTERLINE: BEGINNING AT THE MOST WESTERLY CORNER OF SAID PARCEL 3; THENCE ALONG THE S0trfM ESTYRLY AND SOUTHERLY LINES OF SAID PARCEL 3, SOUTH 48 DEGREES 48 MINUTES 41 SECONDS EAST 73.00 FEET AND SOUTH 89 DEGREES 55 MINUTES 25 SECONDS EAST 112.00 FEET TO POINT "A• FOR PURPOSES OF THIS DESCRIPTION; THENCE ALONG THE WEST LINE OF SAID PARCEL 3 AND ITS SOUTHERLY PROLONGATION SOUTH 00 DEGREES 03 MINUTES 52 SECONDS WEST 369.92 FEET TO AN INTERSECTION WITH THE WESTERLY pROLONGATI0 OF TEE NORTH LINE OF PARCEL 2 OF SAID PARCEL MAP SAVING A BEARING AND DISTANCE OF NORTH 89 DEGREES 56 MINUTES 08 SECONDS WEST 147.02 FEET; EXCEPT THE SOUTHERLY 12.00 FEET. EXHIBIT A 05 1060188 -2- X42 5 . LEGAL DESCRIPTION (CONIMTp) (i THE SIDE LINES OF SAID STRIP SHALL BE PROLONGED OR SHORTENED TO TERMINATE NORTHERLY IN THE NORTHERLY LINE OF SAID PARCEL 3 AND TO MEET AT ANGLE POINTS. (3) A STRIP OF LAND 16.00 FEET WIDE, LYING 8.00 FEET ON EACH SIDE OF THE FOLLOWING DESCRIBED CENTERLINE: B- GINNING AT HEREMBOVE DESCRIBED POINT "A "; THENCE NORTH 00 DEGREES 03 MINUTES 52 SECONDS EAST 6.00 FEET ALONG THE NORTHERLY PROLONGATION OF THE WEST LINE OF SAID PARCEL 3; THENCE LEAVING SAID LINE NORTH 31 DEGREES 56 MINUTES 39 SECONDS EAST 49.45 FEET TO TEE NORTHERLY LINE OF SAID PARCEL 3. THE SIDELINES OF SAID STRIP SHALL BE PROLONGED OR SHORTENED SO AS TO TERMINATE NORTHERLY IN SAID NORTHERLY LINE OF PARCEL 3 AND TO MEET AT ANGLE POINTS. EXHI 05 1060188 -3- -