CONTRACT 5288 Reimbursement Agreement CLOSED Agreement No. 5288
REIMBURSEMENT AGREEMENT
This Reimbursement Agreement("Agreement") is entered into as of February I� , 2017
by and between the City of El Segundo, a general law city and municipal corporation
("City"), and Segundo Restaurant Partnership, LP, a California Limited Partnership
("Applicant/Developer"), who agree as follows:
1. 1�ecitals. This Agreement is made with reference to the following facts and
circumstances:
a. The Applicant/Developer has filed an application to demolish an existing
19,500 square foot restaurant building, and construct a new ±55,000
square-foot, four-story hotel and an underground parking garage, on
property located at 703 and 739 N. Sepulveda Boulevard (APN 4139-018-
001 &-002) (the "Project").
b. Such Project requires environmental review and preparation of
environmental technical reports under the California Environmental
Quality Act("CEQA").
C. Applicant/Developer is seeking to merge the two lots into one lot or seek
to use "air right" from the property at 755 N. Sepulveda Boulevard, and
construct a ±55,000 square-foot, four-story hotel with subterranean
parking below, consisting of 114 rooms (keys), a lobby, a gym for hotel
guests, laundry facility and an employee break room. To accommodate
the proposed Project, a total of ±20,000 cubic yards of grading will be
conducted, consisting of±20,000 cubic yards of cut/export and no fill.
d. In order for Applicant/Developer 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, building code compliance, analysis of
technical studies, preparation of staff reports, development of potential
mitigation measures and conditions, and project management duties
associated with the processing of the applications (collectively,
"Services") which will exceed the capacity of the current City staff.
C. City believes it is in the public interest for Applicant/Developer to pay for
such Services.
2. "ptv ltemntbursenient. City has estimated the costs and expenses of completing the
Services as being approximately $40,000. However, the Applicant/Developer
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 Applicant/Developer agrees to reimburse the City for the full
amount of such actual costs and expenses in the manner provided in this
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Agreement No. 5288
Agreement. Upon completion of the Services, City will provide
Applicant/Developer with an accounting of those costs and expenses, which
accounting the Applicant/Developer 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,
Applicant/Developer agrees to deposit with City $40,000 ("Deposit
Amount") which represents one-hundred percent (100%) of the estimated
Reimbursement Amount. Should the actual Reimbursement Amount
exceed the Deposit Amount, Applicant/Developer agrees to promptly pay
City any difference. Should the Reimbursement Amount be less than the
Deposit Amount, City will refund Applicant/Developer any remaining
Deposit Amount to Applicant/Developer within thirty (30) days after
determining the Reimbursement Amount.
K The Deposit Amount will be placed in a non-interest bearing trust account
established by the City Manager. Applicant/Developer understands and
agrees that City will not pay interest to Applicant/Developer on the
Deposit Amount and Applicant/Developer will not seek such interest
payments from City. Costs associated with the Services will be charged
against the Deposit Amount. The City will request the Applicant/Developer
to replenish the trust account should the balance fall below $5,000. The
Applicant/Developer must submit the amount requested by the City within
30-days of the City's request.
4. (.1ty Administrative Costs. Administrative costs incurred by City, including,
without limitation, staff time, legal costs, fees and services, must be reimbursed
on a time and materials basis based on current City reimbursement rates. As
described in Section 2 above, it is currently estimated that such administrative
costs will total $40,000. Applicant/Developer acknowledges that such amount is
an estimate only and that the actual administrative costs may be more or less than
such amount. Such costs will be deducted by City from the Deposit Amount on a
monthly basis. Applicant/Developer also acknowledges that the estimated
amount does not include the cost for preparing the appropriate environmental
documents required under the California Environmental Quality Act (CEQA), and
that additional deposit(s) will be necessary to cover the City's consultant costs
associated with the preparation of the environmental documents.
5 A l� qII/Ieveloper l)cfault. Should Applicant/Developer 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/Developer fails to perform any of its obligations under this Agreement,
City may cease performing its obligations under this Agreement and may bring an
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Agreement No. 5288
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, Applicant/Developer 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 Brcacli. 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. Receive.'::
Agreement No. 5288
IN WITNESS WHEREOF the parties hereto have executed this Agreement the
day and year first hereinabove written.
City of El Segundo, Corporation or•4:wOmpany...na ne ,
a InUl ° . l l c oratioi : a('"aliloni
.............
Greg pest City Manager �' N mie,, , KweA
T'tle
ATTEST:
f� IVr1, City Cl ,.,,. 0
APPROVED AS TO FORM:
PI- D. Hensley, i't' A ttor iey
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