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CONTRACT 4121 CLOSEDIIU � " *.. REIMBURSEMENT AGREEMENT This Reimbursement Agreement ( "Agreement ") is entered into as of January 18, 2011 by and between the City of El Segundo, a general law city and municipal corporation ( "City "), and L.A. Ice Venture Company, LLC, a Delaware limited liability company (Owner), who agree as follows: 1. Recitals. This Agreement is made with reference to the following facts and circumstances: a. Owner owns real properties generally located at 555 North Nash Street in City's jurisdiction, as described on Exhibit A which is incorporated by reference. b. Owner is seeking to develop its property and convert an existing covered outdoor in -line skating rink into a 15,579 square foot indoor ice skating rink. C. In order for Owner to accomplish such development, City must assign certain City staff or consultants to complete a number of tasks including environmental review,, zoning review, plans review for compliance with City standards, analysis of technical studies and project management duties (collectively, "Services ") which will exceed the capacity of the current City Staff. d. City believes it is in the public interest for Owner to pay for such Services 2. City Reimbursement. City has estimated the costs and expenses of completing the Services as being approximately $6,120 (of which $5,100 is estimated for traffic consulting services and $1,020 is estimated for contract administration services). However, the Owner acknowledges that the actual amount of such costs and expenses may be different. Nonetheless, even though the actual amount of such costs and expenses may be different, the Owner agrees to reimburse the Citror the full amount of such actual costs and expenses in the manner provided in this Agreement. Upon completion of the Services, City will provide Owner with an accounting of those costs and expenses, which accounting the Owner agrees will be conclusive, in the absence of manifest error. The total of the costs and expenses, as disclosed by the accounting, is called the "Reimbursement Amount." 3. Method of Reimbursement. a. Except as provided below, upon execution of this Agreement, Owner agrees to deposit with City $6,120 ( "Deposit Amount ") which represents one hundred percent (100 %) of the estimated Reimbursement Amount. Should the actual Reimbursement Amount exceed the Deposit Amount, Owner agrees to promptly pay City any difference. Should the Reimbursement Amount be less than the Deposit Amount, City will refund Owner any remaining Deposit Amount to Owner within thirty (30) days after determining the Reimbursement Amount. b. The Deposit Amount will be placed in a non - interest bearing trust account established by the City Manager. Owner understands and agrees that City will not pay interest to Owner on the Deposit Amount and Owner will not seek such interest payments from City. Costs associated with the Activities will be charged against the deposit amount. 4. City Administrative Costs. Administrative costs incurred by City, including, without limitation, staff time, fees and services, must be reimbursed on a time and materials basis based on current City reimbursement rates. Owner agrees that it will pay for such costs on a monthly basis within thirty (30) days of receiving an invoice from City. 5 Owner Default. Should Owner 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 Owner 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. 6. Compliance with Law. Owner 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. 7. 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. Insolvency; Receiver. Either the appointment of a receiver to take possession of all or substantially all of the assets of Owner, or a general assignment by Owner for the benefit of creditors, or any action takers or offered by Owner under any insolvency or bankruptcy action, will constitute a breach of this Agreement by Owner, and in such event this Agreement will automatically cease and terminate. 9. 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: r Owner at: Timothy J. Leiweke, President L.A. Ice Venture Company, LLC 555 North Nash Street El Segundo, CA 90245 City at: City of El Segundo Attn: Director of Planning and Building Safety 350 Main Street El Segundo, CA 90245 Either party may change its address for the purpose of this Section by giving written notice of the change to the other party. 10. Acceptance of Facsimile 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 facsimile transmission. Such facsimile signature will be treated in all respects as having the same effect as an original signature. 11. Governing Law. This Agreement has been 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. 12, 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. 13. Integration, This instrument and its attachments constitute the sole agreement between City and Owner respecting the matters above and correctly sets forth the obligations of City and Owner. Any Agreement or representations respecting the Property or its licensing by City to Owner not expressly set forth in this instrument are void. 14. 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. 15. 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. City's city manager, or designee, may execute any such amendment on behalf of City. 16. Counterparts. 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. 41 42 IN WITNESS WHEREOF the parties hereto have executed this contract the day and year first hereinabove written. City of El Segundo, a municipal corporation. Corpor "one J yt, City Cdr° ATTEST: APPROVED AS MARK D. IJ M;l' ity N$qri rt. i- erger, Assistant City A. L.A. Ice Venture Company, LLC, a Delaware linimted liability corn . By: _ Name: Its: �.... _. �r. PTlanning & Building Stw,lblyyl 'i ning - Old \Consultant Ping Services \Env iron mental Consultants \Reimbursement Agreements \Toyota Sports Center \Toyota Sports Center Rink Expansion.doc EKHIBIT A � Order Number: NCS- 470270 -LA2 Page Number: 8 LEGAL DESCRIPTION Real property in the City of El Segundo, County of Los Angeles, State of California, described as follows: LOT 2 OF TRACT NO. 52427, IN THE CITY OF EL SEGUNDO, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA AS PER MAP RECORDED IN BOOK 1229 AT PAGES 42 -44 OF MAPS IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. EXCEPT THE SOUTH 5.00 FEET AS PER CERTIFICATE OF COMPLIANCE RECORDED JULY 30, 1998 AS INSTRUMENT NO. 98- 1324357 APN: 4138 - 028 -015 First American Title Insurance Company