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HomeMy WebLinkAbout2017-2271 2 3 4 5 6 7 s 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2s RESOLUTION NO. 2017-227 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING A DEVELOPMENT IMPACT FEE CREDIT AGREEMENT WITH RIDGE DEVELOPMENT COMPANY, LLC, FOR THE RIDGE SAN BERNARDINO ONE PROJECT AT PALM AVENUE AND CAJON BOULEVARD FOR PUBLIC IMPROVEMENTS TO CAJON BOULEVARD ADJACENT TO THE PALM AVENUE AND BNSF GRADE SEPARATION WHEREAS, Ridge Development Company, LLC, ("Developer") owns approximately 38.4 acres of real property located within the City of San Bernardino at the intersection of Palm Avenue and Cajon Boulevard adjacent to the Palm Avenue/BNSF Grade Separation Project ("Property"); and WHEREAS, Developer has requested from City certain entitlements and/or permits for the construction of improvements on the Property, including the establishment and operation of two (2) industrial buildings containing approximately 392,983 square feet (Building 1) and approximately 326,199 square feet (Building 2) along with the construction of the required on- site and off-site improvements, on two (2) separate parcels containing a combined total of approximately 38.4 acres ("Project"); and WHEREAS, City requires Developer to pay certain development impact fees ("DIF") for the purpose of defraying all or a portion of the cost of public improvements, public services, and community amenities related to the Project; and WHEREAS, under Section 3.27.140 of the San Bernardino Municipal Code the Mayor and City Council may issue DIF credits to the Developer who constructs or donates certain public improvements to reduce Developer's DIF obligation; and WHEREAS, under Section 3.27.150 of the San Bernardino Municipal Code the Mayor and City Council may authorize the reimbursement to the Developer if the Developer constructs public improvements that, among other things, benefits the public generally rather than Developer's property; and WHEREAS, Developer desires to construct certain public improvements that would be funded by the DIF Program ("DIF Improvements") and obtain DIF credits or reimbursements from the City; and WHEREAS, the DIF Improvements, described generally as street, curb and gutter, sidewalk, street lights, and utility improvements to Cajon Boulevard, adjacent to the Palm Avenue/BNSF Grade Separation Project, along the frontage of the BNSF Transcontinental Railway and Metropolitan Water District of Southern California properties is necessary to provide basic services to the entire City by improving regional circulation at the Palm Avenue/BNSF Grade Separation and does not directly serve the Project. 1 1 2 3 4 5 6 7 s 9 10 11 12 13 14 15 16 17 1s 19 20 21 22 23 24 25 26 27 2s NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AS FOLLOWS: SECTION 1. The City Manager is hereby authorized and directed to execute on behalf of the City the Development Impact Fee Credit Agreement ("Agreement") attached hereto as Attachment "1" and incorporated herein by this reference as though set forth in full. SECTION 2. The City Manager is hereby authorized to execute on behalf of the City a DIF Reimbursement Agreement on the form set forth in Exhibit "D" to the Agreement if the requirements of Sections 14.2 and 14.4 of the Agreement and Section 3.27.150 of the San Bernardino Municipal Code are met. SECTION 3. The authorization described in Section 1 of this Resolution shall expire and be of no further effect if the Agreement is not fully executed by all parties and returned to the Office of the City Clerk within sixty (60) days of the passage of this Resolution. SECTION 4. The authorization described in Section 2 of this Resolution shall expire and be of no further effect if the DIF Reimbursement Agreement is not fully executed by all parties and returned to the Office of the City Clerk within ninety (90) days of the Developer recording the Notice of Completion pursuant to Section 14.3 of the Agreement. 2 1 2 3 4 5 6 7 e 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2s RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING A DEVELOPMENT IMPACT FEE CREDIT AGREEMENT WITH RIDGE DEVELOPMENT COMPANY, LLC, FOR THE RIDGE SAN BERNARDINO ONE PROJECT AT PALM AVENUE AND CAJON BOULEVARD FOR PUBLIC IMPROVEMENTS TO CAJON BOULEVARD ADJACENT TO THE PALM AVENUE AND BNSF GRADE SEPARATION I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and City Council of the City of San Bernardino at a Joint Regular Meeting thereof, held on the 15th day of November 2017, by the following vote, to wit: Council Members: AYES MARQUEZ X BARRIOS X VALDIVIA X(M) SHORETT X(S) NICKEL X RICHARD X MULVIHILL X NAYS ABSTAIN ABSENT George Hanna, CMU, City Clerk The foregoing Resolution is hereby approved this 15'�' day of November 2 17. R. Carey D• vis, Mayor City of W Bernardino Approved as to form: Gary D. Saenz, City Attorney 11 RESOLUTION NO.2016-063-D/ERC A RESOLUTION OF THE DEVELOPMENT AND ENVIRONMENTAL REVIEW COMMITTEE OF THE CITY OF SAN BERNARDINO, CALIFORNIA ADOPTING THE ADDENDUM TO THE ENVIRONMENTAL IMPACT REPORT (CALIFORNIA STATE CLEARINGHOUSE NO. 90020908) AND APPROVING DEVELOPMENT PERMIT TYPE -D 16-19 TO ALLOW THE DEVELOPMENT, ESTABLISHMENT, AND OPERATION OF TWO (2) INDUSTRIAL BUILDINGS CONTAINING APPROXIMATELY 325,920 SQUARE FEET (BUILDING 1) AND APPROXIMATELY 392,273 SQUARE FEET (BUILDING 2), ALONG WITH THE CONSTRUCTION OF THE REQUIRED ON-SITE AND OFF-SITE IMPROVEMENTS, ON TWO (2) SEPARATE PARCELS CONTAINING A COMBINED TOTAL OF APPROXIMATELY 38.4 ACRES LOCATED AT THE INTERSECTION OF CAJON BOULEVARD AND PALM AVENUE (APN: 0262-051- 41 AND 42) WITHIN THE CALMAT CAJON CREEK SPECIFIC PLAN (SP -CC). WHEREAS, on September 15, 2016, pursuant to the requirements of § 19.44.020 of the City of San Bernardino Development Code, an application for Development Permit Type -D 16- 19 was duly submitted by: Property Owner: CalMart Company 500 N. Brand Boulevard, Suite 500 Glendale, CA 91203 Project Applicant: Ridge Development Company 2211 Michelson Drive, Suite 650 Irvine, CA 92612 Parcel Address: Intersection of Cajon Boulevard and Palm Avenue APN'S: 0262-051-41 and 42 Lot Area: 38.4 acres WHEREAS, Development Permit Type -D, 16-19 is a request to allow the development, establishment and operation of two (2) industrial buildings containing approximately 325,920 square feet (Building 1) and approximately 392,273 square feet (Building 2), along with the construction of the required on-site and off-site improvements, on two (2) separate parcels containing a combined total of approximately 38.4 acres (attached herein as EXHIBIT "A"); and WHEREAS, the Planning Division of the Community Development Department has reviewed Development Permit Type -D 16-19 for consistency with the City of San Bernardino General Plan and compliance with the City of San Bernardino Development Code and the CalMat Cajon Creek Specific Plan; and WHEREAS, on May 10, 1993, the Mayor and Common Council of the City of San Bernardino adopted Resolution No. 93-140 certifying the Final Environmental Impact Report (California State Clearinghouse No. 90020908) and adopting the Findings of Fact, Statement of Overriding Considerations and Mitigation Monitoring and Reporting Program for the CalMat Cajon Creek Specific Plan (incorporated herein by reference); and WHEREAS, pursuant to requirements of §15063 of the California Environmental Quality Act, the Planning Division of the Community Development Department accepted the Initial Study/Addendum to Final Environmental Impact Report (California State Clearinghouse No. 90020908) prepared by LSA Associates, Inc. and submitted by the applicant for Development Permit Type -D 16-19 due to the fact that: 1) there are no substantial changes in the proposed project that would require major revisions of the previous Final Environmental Impact Report due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; 2) there are no substantial changes that have occurred with respect to the circumstances under which the proposed project is undertaking which will require major revisions of the previous Final Environmental Impact Report due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; and, 3) there is no new information of substantial importance which was not known and could not have been known with the exercise of reasonable diligence at the time that the previous Final Environmental Impact Report was certified; and WHEREAS, on November 25, 2016, pursuant to the requirements of §19.52.020 of the City of San Bernardino Development Code, the City gave public notice by advertising in the San Bernardino Sun, a newspaper of general circulation within the City of San Bernardino, and by mailing notices to the property owners within 500 feet of the subject property of the holding of a public hearing at which the Environmental Determination (Addendum to Final Environmental Impact Report) and Development Permit Type -D 16-19 would be considered; and WHEREAS, on December 8, 2016, pursuant to the requirements of §19.52.040 of the City of San Bernardino Development Code, the Development and Environmental Review Committee held the duly advertised public hearing at which interested persons had an opportunity to testify in support of, or opposition to the Environmental Determination (Addendum to Final Environmental Impact Report) and Development Permit Type -D 16-19, and at which meeting the Development and Environmental Review Committee considered the Environmental Determination (Addendum to Final Environmental Impact Report) and Development Permit Type -D 16-19; and WHEREAS, pursuant to the requirements of Chapter 19.44 of the City of San Bernardino Development Code, the Development and Environmental Review Committee has the authority to take action on the Environmental Determination (Addendum to Final Environmental Impact Report) and Development Permit Type -D 16-19. NOW THEREFORE, the Development and Environmental Review Committee of the City of San Bernardino does hereby resolve, determine, find, and order as follows: SECTION 1. ENVIRONMENTAL DETERMINATION: In accordance with § 15063 of the California Environmental Quality Act (CEQA), the applicant submitted and the Planning Division of the City of San Bernardino accepted an Initial Study/ Addendum to Final Environmental Impact Report (California State Clearinghouse No. 90020908) prepared by LSA Associates, Inc. in connection with Development Permit Type -D 16-19 for the development, establishment and operation of two (2) industrial buildings containing approximately 325,920 square feet (Building 1) and approximately 392,273 square feet (Building 2), along with the construction of the required on-site and off-site improvements, 2 on two (2) separate parcels containing a combined total of approximately 38.4 acres due to the fact that: 1) there are no substantial changes in the proposed project that would require major revisions of the previous Final Environmental Impact Report due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; 2) there are no substantial changes that have occurred with respect to the circumstances under which the proposed project is undertaking which will require major revisions of the previous Final Environmental Impact Report due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; and, 3) there is no new information of substantial importance which was not known and could not have been known with the exercise of reasonable diligence at the time that the previous Final Environmental Impact Report was certified. Accordingly, pursuant to § 15164 of CEQA, a Notice of Intent to Adopt an Addendum to Final Environmental Impact Report (California State Clearinghouse No. 90020908) for Development Permit Type -D 16-19 was posted on November 25, 2016 for the CEQA-mandated ten (10) day public review and comment period. In accordance with §15074 of CEQA, on December 8, 2016, during a duly advertised public hearing, the Development and Environmental Review Committee adopted the Addendum to Final Environmental Impact Report (California State Clearinghouse No. 90020908) for the approval of Development Permit Type -D 16-19. SECTION 2. FINDINGS FOR DEVELOPMENT PERMIT TYPE -D 16-19: Section 19.44.040 of the City of San Bernardino Development Code requires that Development Permit applications meet certain findings prior to the approval by the Development and Environment Review Committee. Accordingly, the following findings are provided in support of the approval of Development Permit Type -D 16-19: Finding No. 1: The proposed development is permitted in the subject zoning district and complies with all applicable provisions of the Development Code, including prescribed site development standards and applicable design guidelines. Finding of Fact: The proposed the development, establishment and operation of two (2) industrial buildings containing approximately 325,920 square feet (Building 1) and approximately 392,273 square feet (Building 2), along with the construction of the required on-site and off-site improvements, on two (2) separate parcels containing a combined total of approximately 38.4 acres are permitted uses within the CalMat Cajon Creek Specific Plan, subject to the approval of a Development Permit Type -D application with the appropriate Conditions of Approval and CEQA determination. The proposal under Development Permit Type- D 16-19 will be developed in compliance with all of the applicable provisions of the City of San Bernardino Development Code and CalMat Cajon Creek Specific Plan, including development standards and applicable design guidelines. Additionally, the, possible variety intended industrial uses, such as light manufacturing, assembly uses, warehouse and distribution, administrative offices, and similar uses, are permitted within the CalMat Cajon Creek Specific Plan area. Therefore, the proposal would not impair the integrity and character of the subject land use district. Finding No. 2: The proposed development is consistent with the General Plan. Finding of Fact: General Plan Land Use Policy 4.5.1 encourages a "focus on developing the export -oriented economic capacity of the City, which includes `production business' (i.e., manufacturing and service firms). Getleral Plan Goal 4.1 encourages economic activity that capitalizes on the transportation and locational strengths of San Bernardino. The proposed development of two (2) industrial buildings will provide additional economic development opportunities within the City, consistent with the General Plan goal and policy cited above. The CaIMat Cajon Creek Specific Plan also lists the intended uses, and permits a variety of uses including light manufacturing, assembly uses, warehouse and distribution, administrative offices, and other similar uses. Additionally, the proposed development, establishment and operation of two (2) industrial buildings containing approximately 325,920 square feet (Building 1) and approximately 392,273 square feet (Building 2), along with the construction of the required on-site and off-site improvements, on two (2) separate parcels containing a combined total of approximately 38.4 acres is permitted within the CalMat Cajon Creek Specific Plan, subject to the approval of a Development Permit Type -D application with the appropriate Conditions of Approval and CEQA determination, and the CalMat Cajon Creek Specific Plan is consistent with the land use designation set forth by the General Plan Land Use Map. Finding No. 3 The proposed development would be harmonious and compatible with existing and future developments within the land use district and general area, as well as with the land uses presently on the subject property, Finding of Fact: The proposed development, establishment and operation of two (2) industrial buildings containing approximately 325,920 square feet (Building 1) and approximately 392,273 square feet (Building 2), along with the construction of the required on-site and off-site improvements, on two (2) separate parcels containing a combined total of approximately 38.4 acres will be harmonious and compatible with existing and future developments within the CalMat Cajon Creek Specific Plan and the surrounding area. The scale and density of the proposed development is similar to that of the existing industrial development in the area and it conforms to the development standards of the CalMat Cajon Creek Specific Plan. Since the proposal is consistent with the General Plan, Development Code and CalMat Cajon Creek Specific Plan, no land use conflict is expected to result from the construction of the proposed project. Finding No. 4 Approval of the Development Permit for the proposed development is in compliance with the requirements of the California Environmental Quality Act and Section 19.20.030(6) of the Development Code. Finding of Fact: In accordance with §15063 of the California Environmental Quality Act, the Planning Division of the Community Development Department accepted the Initial Study/Addendum to Final Environmental Impact 4 Report (California State Clearinghouse No. 90020908) prepared by LSA Associates, Inc. and submitted by the applicant for Development Permit Type -D 16-19 due to the fact that: 1) there are no substantial changes in the proposed project that would require major revisions of the previous Final Environmental Impact Report due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; 2) there are no substantial changes that have occurred with respect to the circumstances under which the proposed project is undertaking which will require major revisions of the previous Final Environmental Impact Report due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; and, 3) there is no new information of substantial importance which was not known and could not have been known with the exercise of reasonable diligence at the time that the previous Final Environmental Impact Report was certified. Finding No. 5: There will be no potential significant negative impacts upon environmental quality and natural resources that could not be properly mitigated and monitored. Finding of Fact: In accordance with §15063 of the California Environmental Quality Act (CEQA), an Initial Study/Addendum to Final Environmental Impact Report (California State Clearinghouse No. 90020908) was prepared in connection with Development Permit Type -D 16-19 for the development, establishment and operation of two (2) industrial buildings containing approximately 325,920 square feet (Building 1) and approximately 392,273 square feet (Building 2), along with the construction of the required on-site and off-site improvements, on two (2) separate parcels containing a combined total of approximately 38.4 acres. The Addendum to Final Environmental Impact Report (California State Clearinghouse No. 90020908) has been accepted by the Planning Division of the Community Development Department due to the fact that: 1) there are no substantial changes in the proposed project that would require major revisions of the previous Final Environmental Impact Report due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; 2) there are no substantial changes that have occurred with respect to the circumstances under which the proposed project is undertaking which will require major revisions of the previous Final Environmental Impact Report due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; and, 3) there is no new information of substantial importance which was not known and could not have been known with the exercise of reasonable diligence at the time that the previous Final Environmental Impact Report was certified. Therefore, the proposed project under Development Permit Type -D 16-19 will be completed in a manner so that it is consistent with the surrounding neighborhood, and no significant negative impacts on the environment are anticipated. 5 Finding No. 6: The subject site is physically suitable for the type and density/intensity of use being proposed. Finding of Fact: The proposed development, establishment and operation of two (2) industrial buildings containing approximately 325,920 square feet (Building 1) and approximately 392,273 square feet (Building 2), along with the construction of the required on-site and off-site improvements, on two (2) separate parcels containing a combined total of approximately 38.4 acres is a permitted use within the Ca1Mat Cajon Creek Specific Plan, subject to the approval of a Development Permit Type -D application with the appropriate Conditions of Approval and CEQA determination. The subject site as industrial buildings is sufficient in size to accommodate the proposal under Development Permit Type -D 16-19 as required by the City of San Bernardino Development Code. Therefore, the subject site is physically suitable for the proposal. Finding No. 7 There are adequate provisions for public access, water, sanitation, and public utilities and services to ensure that the proposed use would not be detrimental to public health and safety. Finding of Fact: There are adequate provisions for public access, public utilities, and public services for the proposed development, establishment and operation of two (2) industrial buildings containing approximately 325,920 square feet (Building 1) and approximately 392,273 square feet (Building 2), along with the construction of the required on-site and off-site improvements, on two (2) separate parcels containing a combined total of approximately 38.4 acres. The existing parcels are located adjacent to and already served by existing public streets and a full range of public utilities and services. All applicable Codes will apply to the proposed development. Therefore, subject to the Conditions of Approval, the proposed development of two (2) industrial buildings under Development Permit Type -D 16-19 will not be detrimental to public services or public health and safety. Finding No. 8 The location, size, design and operating characteristics of the proposed development would not be detrimental to the public interest, health, safety, convenience or welfare of the City. Finding of Fact: The proposed development, establishment and operation of two (2) industrial buildings containing approximately 325,920 square feet (Building 1) and approximately 392,273 square feet (Building 2), along with the construction of the required on-site and off-site improvements, on two (2) separate parcels containing a combined total of approximately 38.4 acres conforms to all applicable development standards and land use regulations of the CalMat Cajon Creek Specific Plan. Therefore, the design of the project, in conjunction with the recommended Conditions of Approval, will ensure that the proposal will not create significant noise, traffic, or other conditions or situations that may be objectionable or detrimental to other permitted uses in the vicinity of the site, nor will it be adverse to the public interest, health, safety, convenience or welfare of the 6 City. The location, size, design and character of the proposed development will enhance the neighborhood to the benefit of the public interest and general welfare of the City. SECTION 3. CONDITIONS OF APPROVAL: The approval of Development Permit Type -D 16-19 shall be subject to the following Conditions of Approval: This approval is to allow the development, establishment and operation of two (2) industrial buildings containing approximately 325,920 square feet (Building 1) and approximately 392,273 square feet (Building 2), along with the construction of the required on-site and off-site improvements, on two (2) separate parcels containing a combined total of approximately 38.4 acres, within the CalMat Cajon Creek Specific Plan. 2. The project site shall be developed and maintained in accordance with the plans stamped December 8, 2016 (EXHIBIT "A"), approved by the City, which includes site plans, floor plans and exterior elevations, on file in the Planning Division; the Conditions of Approval contained herein; and, the City's Municipal Code regulations. 3. The project shall be subject to all of the mitigation measures contained in the Mitigation Monitoring and Reporting Program contained within the certified Final Environmental Impact Report (California State Clearinghouse No. 90020908) and incorporated herein by reference as Conditions of Approval. 4. Without limiting the effect of any other Condition of Approval contained herein, this approval shall automatically become null and void in the event Applicant fails to acquire record title to the real property which is the subject matter of the application, by December 30, 2016. 5. Within two (2) years of the Development Permit approval, commencement of construction shall have occurred or the permit/approval shall become null and void. In addition, if after commencement of construction, work is discontinued for a period of one year, then the permit/approval shall become null and void. However, approval of the Development Permit does not authorize commencement of construction. All necessary permits must be obtained prior to commencement of specified construction activities included in the Conditions of Approval. EXPIRATION DATE: December 8, 2018 6. The review authority may grant a time extension, for good cause, not to exceed twelve (12) months. The applicant must file an application, the processing fees, and all required submittal items, thirty (30) days prior to the expiration date. The review authority shall ensure that the project complies with all Development Code provisions in effect at the time of the requested extension. 7. In the event this approval is legally challenged, the City will promptly notify the applicant of any claim, action or proceeding and will cooperate fully in the defense of this 7 matter. Once notified, the applicant agrees to defend, indemnify and hold harmless the City of San Bernardino (City), any departments, agencies, divisions, boards or commission of the City as well as predecessors, successors, assigns, agents, directors, elected officials, officers, employees, representatives and attorneys of the City from any claim, action or proceeding against any of the foregoing persons or entities. The applicant further agrees to reimburse the City for any costs and attorneys' fees which the City may be required by a court to pay as a result of such action, but such participation shall not relieve applicant of his or her obligation under this condition. The costs, salaries, and expenses of the City Attorney and employees of his office shall be considered as "Attorney's fees" for the purpose of this condition. As part of the consideration for issuing this Development Permit, this condition shall remain in effect if the Development Permit is rescinded or revoked, whether or not at the request of applicant. 8. Any determination or action taken by the Development and Environmental Review Committee may only be appealed to the Planning Commission. In a similar manner, any action taken by the Planning Commission to approve or disapprove an application may be appealed to the Mayor and Common Council. 9. All appeals shall be submitted to the Community Development Department on a City application form, and shall specifically state the basis of the appeal. An appeal of a Development and Environmental Review Committee action shall be filed with the Community Development Department within fifteen (15) days following the final date of action for which an appeal is made. An appeal of a Planning Commission decision shall be filed with the Community Development Department within fifteen (15) days following the final date of action for which an appeal is made. 10. The required setbacks shall be landscaped using an Opaque Scree, Type A, pursuant to §19.28.040(3)(A). The landscaping shall be planted more densely along the northern property line to provide additional screening from the loading docks facing San Bernardino Avenue. 11 If the colors of the buildings or other exterior finish materials are to be modified beyond the current proposal and improvement requirements, the revised color scheme and/or finish materials shall be reviewed and approved by the Planning Division prior to commencement of work. 12. The property owner(s), facility operator and property management will be responsible for regular maintenance of the site. Vandalism, graffiti, trash and other debris must be removed within 24 hours of being reported. 13. Signs are not approved as a part of this permit. Prior to establishing signs, the applicant must submit an application for approval by the Planning Division. Banners, flags, pennant, and similar signs are prohibited unless a Temporary Sign Permit is obtained. 14. The applicantlowner shall maintain all existing landscaping in the parking lot and setbacks in a weed and disease free condition at all times and any dead or missing vegetation must be promptly replaced. 8 15. Construction -related activities may not occur between the hours of 8:00 pm and 7:00 am. No construction vehicles, equipment, or employees may be delivered to, or arrive at the construction site before 7:00 am or leave the site after 8:00 pm. Construction activities may only occur Monday through Friday. 16. The project shall comply with all applicable requirements of the City of San Bernardino Community Development Department, Land Development and Building & Safety Divisions, Police Department, Municipal Water Department, Public Works Department, and the City Clerk's Office/Business Registration Division, and the County of San Bernardino Fire Department, 17. Submittal requirements for permit applications with the Building and Safety Division shall include all Conditions of Approval issued with this approval, printed on the plan sheets. 18. A Certificate of Occupancy shall not be issued until all Conditions of Approval have been completed. Land Development Division 19. Drainage and Flood Control a) All necessary drainage and flood control measures shall be subject to requirements of the Building Official, which may be based in part on the recommendations of the San Bernardino County Department of Transportation and Flood Control. The developer's Engineer shall furnish all necessary data relating to drainage and flood control. b) A permit will be required from the San Bernardino County Department of Transportation and Flood Control, if any work is required within the Flood Control District's right-of-way. c) A local drainage study will be required for the project. Any drainage improvements, structures or storm drains needed to mitigate downstream impacts or protect the development shall be designed and constructed at the developer's expense, and right-of-way dedicated as necessary. d) The detention basin shall be designed in accordance with "Detention Basin Design Criteria for San Bernardino County." Retention basins are not acceptable. e) A maintenance agreement for the existing basin East of Institution Road shall be worked out with Public Works Department prior to grading permit issuance. f) The development is located within Zone X of the Federal Insurance Rate Maps on booklet #06071 C7940H with year 08/28/2008. g) All drainage from the development shall be directed to an approved public drainage facility. If not feasible, proper drainage facilities and easements shall be provided to the satisfaction of the City Engineer. 6 h) If site drainage is to be outletted into the public street, the drainage shall be conveyed through a parkway culvert constructed in accordance with City Standard No. 400. Conveyance of site drainage over the Driveway approaches will not be permitted. i) A Final Full Categorical Water Quality Management Plan (WQMP) and a Storm Water Pollution Prevention Plan (SWPPP) is required for this project. The applicant is directed to the County of San Bernardino Flood Control web page for the WQMP Technical Guidance Document and template. The Land Development Division, prior to issuance of any permit, shall approve the WQMP and the SWPPP. A CD copy of the approved WQMP and SWPPP are required prior to Occupancy. j) A "Notice of Intent (NOI)" shall be filed with the State Water Quality Control Board for construction disturbing 1 acre or more of land (including the project area, construction yards, storage areas, etc.). A WDID number issued by the State of California is required prior to the issuance of grading permit. k) The Land Development Division, prior to grading plan approval, shall approve an Erosion Control Plan. The plan shall be designed to control erosion due to water and wind, including blowing dust, during all phases of construction, including graded areas which are not proposed to be immediately built upon. 20. Grading- and Landscaping, a. The grading and on-site improvement plan shall be signed by a Registered Civil Engineer and a grading permit will be required. The grading plan shall be prepared in strict accordance with the City's "Grading Policies and Procedures" and the City's "Standard Drawings", unless otherwise approved by the Building Official. b. If more than 5,000 cubic yards of earthwork is proposed, the grading shall be supervised in accordance with Section 3317.2 of the California Building Code. c. The applicant must post a grading bond prior to issuance of a grading permit. The amount of the bond is to be determined by the Building Official. d. If the grading plan indicates export or import, the source of the import material or the site for the deposition of the export shall be noted on the grading plan. Permit numbers shall be noted if the source or destination is in the City of San Bernardino. e. If more than 50 cubic yards of earth is to be hauled on City Streets then a special hauling permit shall be obtained from the City Engineer. Additional conditions, such as truck route approval, traffic controls, bonding, covering of loads, street cleaning, etc. may be required by the City Engineer. f. A liquefaction evaluation is required for the site. This evaluation must be submitted and approved prior to issuance of a grading permit. Any grading requirements recommended by the approved liquefaction evaluation shall be incorporated in the grading plan. 10 g. Wheel stops are not permitted by the Development Code, except at designated accessible parking spaces. Therefore, continuous 6" high curb shall be used around planter areas and areas where head in parking is adjacent to walkways. The parking spaces may be 16.5' deep and may overhang the Iandscaping or walkway by 2.5'. Overhang into the setback area or into an ADA path of travel (minimum 4' wide) is not permitted. h. The refuse enclosure(s) shall be constructed in accordance with City Standard Drawing No. 508 with modification to provide ADA access. The minimum size of the refuse enclosure shall be 8 feet x 15 feet, unless the Public Services Department, Refuse Division, approves a smaller size, in writing. Where a refuse enclosure is proposed to be constructed adjacent to spaces for parking passenger vehicles, a 3' wide by 6 " high concrete planter shall be provided to separate the enclosure from the adjacent parking. The placement of the enclosure and design of the planter shall preclude the enclosure doors from opening into drive aisles or impacting against adjacent parked cars. The number and placement of refuse enclosures shall conform to the location and number shown on the site plan as approved by the Development Review Committee, Planning Commission or City Council. i. Retaining walls, block walls and all on-site fencing shall be designed and detailed on the on-site improvement Plan. This work shall be part of the on-site improvement permit issued by the Building Official. All masonry walls shall be constructed of decorative block with architectural features acceptable to the City Planner. j. This project is located in the high wind zone. All walls and fences shall be designed to meet current CBC requirements. All construction details shall be included on the appropriate plan. Structural calculations shall be provided for City review. k. No construction on a site shall begin before a temporary/security fence is in place and approved by the Building Official or his designee. Temporary/security fencing may not be removed until approved by the Building Official or his designee. The owner or owner's agent shall immediately remove the temporary/security fencing upon the approval of the Building Official or his designee. Sites that contain multiple buildings shall maintain the temporary/security fencing around the portion of the site and buildings under construction as determined by the Building Official or his designee. All temporary/security fencing for construction sites shall include screening, emergency identification and safety identification and shall be kept in neat and undamaged condition. 1. The on-site improvement plan shall include details of on-site lighting, including light location, type of poles and fixtures, foundation design with structural calculations, conduit location, material and size, and Photometric plot shall be provided which show that the proposed on-site lighting design will provide: • 1 foot-candle of illumination uniformly distributed over the surface of the parking lot during hours of operation, and • 0.25 foot-candles security lighting during all other hours. 11 m. The design of on-site improvements shall also comply with all requirements of The California Building Code, Title 24, relating to accessible parking and accessibility, including retrofitting of existing building access points for accessibility, if applicable. n. An accessible path of travel shall be provided from the public way to the building entrance. All pathways shall be paved and shall provide a minimum clear width of 4 feet. Where parking overhangs the pathway, the minimum paved width shall be 6.5 feet. o. The project Landscape Plan shall be reviewed and approved by the Land Development Division prior to issuance of a grading permit. Submit 3 copies to the Land Development Division for Checking. p. Prior to occupancy of any building, the developer shall post a bond to guarantee the maintenance and survival of project landscaping for a period of one year. q. The public right-of-way, between the property line and top of curb (also known as "parkway") along adjoining streets shall be landscaped by the developer and maintained in perpetuity by the property owner. Details of the parkway landscaping shall be included in the project's on-site landscape plan. r. All electrical transformers located outdoors on the site, shall be screened from view with a solid wall or landscaping and shall not be located in any setback/right-of-way area. If the transformer cannot be screened, it shall be located in an underground vault unless approved by the City Engineer pursuant to Section 19.30.110. 21. Utilities a. Design and construct all public utilities to serve the site in accordance with City Code, City Standards and requirements of the serving utility, including gas, electric, telephone, water, sewer and cable TV (Cable TV optional for commercial, industrial, or institutional uses). b. Each parcel shall be provided with separate water and sewer facilities so the City or the agency providing such services in the area can serve it. c. Backflow preventers shall be installed for any building with the finished floor elevation below the rim elevation of the nearest upstream manhole. d. This project is located in the sewer service area maintained by the City of San Bernardino. Direct connection to the existing 18" sewer main on Cajon l3oulevard shall not be allowed. Any necessary sewer main construction to connect with the existing 18" main line shall be designed and constructed in accordance with the City's "Sewer Policy and Procedures" and City Standard Drawings at Developer's expense. e. Utility services shall be placed underground and easements provided as required. f. All existing overhead utilities adjacent to or traversing the site on either side of the street shall be placed underground in accordance with Section 19.20.030 of the Development Code. g. Existing Utilities which interfere with new construction shall be relocated at the Developer's expense as directed by the City Engineer. 12 h. Sewers within private streets or private parking lots will not be maintained by the City but shall be designed and constructed to City Standards and inspected under a City On -Site Construction Permit. A private sewer plan designed by the Developer's Engineer and approved by the City Engineer will be required. This plan can be incorporated in the grading plan, where practical. 22. Street Improvement and Dedications a. For the streets listed below, dedication of adequate street right-of-way (R.W.) to provide the distance from street centerline to property line and placement of the curb line (C.L.) in relation to the street centerline shall be as follows: Street Name Right of Way ffeeti Cajon Blvd. Institution Road b. Cajon Boulevard: 50 (5' Dedication Required) 44 (Required) Curb Line (feet 40 (Required) 33 (May varies along curvature) i. Construct 8" Curb and Gutter per City Standard No. 200 adjacent to the site. Widen pavement adjacent to the site to match new curb and gutter. Construct approach and departure transitions for traffic safety and drainage as approved by the City Engineer. ii. Construct sidewalk adjacent to the site in accordance with City Standard No. 202; Case "A" (6' wide adjacent to curb). iii. A radius type Driveway Approach is proposed in lieu of the standard drive approach. A truck turning radius shall be provided to Public Works to verify the final radius. The throat of the driveway shall be paved in colored textured concrete. iv. The street shall be rehabilitated and the structural street section shall be designed on the "R" value of the subgrade as determined by soils testing and the traffic Index. v. Install 2' x 2' California US 66 pavers in the public sidewalk. Pavers shall be set in the center of the sidewalk at each corner of the project and at equal intervals not exceeding 25 feet on center along the frontage of the project. Approved pavers are available for purchase at cost, from the City of San Bernardino, Development Services Department, or directly from Wausau Tile Company. vi. Install California US 66 wall mounted plaque on the new building facing California US Route 66 at a location approved by the Deputy Director/City Planner. Approved wall plaques are available for purchase 13 at cost from the City of San Bernardino, Development Services Department, or directly from Wausau Tile Company. c. Institutional Road: i. Construct 8" Curb and Gutter per City Standard No. 200 from Institution Road & Palm Ave to the railroad overpass. Widen pavement adjacent to the site to match new curb and gutter. Construct approach and departure transitions for traffic safety and drainage as approved by the City Engineer. ii. A radius type Driveway Approach is proposed in lieu of the standard drive approach. A truck turning radius shall be provided to Public Works to verify the final radius. The throat of the driveway shall be paved in colored textured concrete. iii. The street shall be rehabilitated and the structural street section shall be designed on the "R" value of the subgrade as determined by soils testing and the traffic Index. d. At all curb returns within and adjacent to the project site, construct accessible curb ramps in accordance with Caltrans Standards to comply with current ADA accessibility requirements. Dedicate sufficient right-of-way at the corner to accommodate the ramp. e. Street Lights are required for this project, install Street Lights adjacent to the site in accordance with City Standard Nos. SL -1 and SL -2. Also, a separate light plan shall be submitted in accordance with the City of San Bernardino Street Lighting Design Policies. f. Curb returns at the intersection of Cajon Blvd and Institutional Road shall be constructed with a 35 -foot radius. g. A street cut permit, issued by the City Engineer, will be required for utility cuts into existing streets. The required method shall include a slurry coat along the frontage of the project site to center line. If trenching crosses both sides of the street than both sides of the street shall have a slurry coat and stripping along the frontage of the project site. h. A County and Railraod Permit shall be required for any work proposed within each respective agency right-of-way. 23. Phasin a. If the project is to proposed to be developed in phases, each individual phase shall be designed to provide maximum public safety, convenience for public service vehicles, and proper traffic circulation 24. Rc�ouired Eng ineerim Plans a. A complete submittal for plan checking shall consist of: ■ street improvement plans (may include street lights or street lighting may be separate plan), 14 ■ sewer plans (Private sewers may be shown on on-site improvement plan; public sewers must be on a separate plan with profile), ■ storm drain plans (Private storm drains may be shown on on-site improvement plans; public storm drains must be on a separate plan with profile), ■ traffic signal plans, ■ signing and striping plan (may be on sheets included in street improvement plan), ■ lighting (on-site lighting may be included in on-site improvement plan or may be on a separate stand-alone plan), ■ grading (may be incorporated with on-site improvement plan), ■ on-site improvement plans and on-site landscaping and irrigation, ■ water plans (shall be submitted to San Bernardino Municipal Water Department), ■ other plans as required. Piecemeal submittal of various types of plans for the same project will not be allowed. ■ All required supporting calculations, studies and reports must be included in the initial submittal (including but not limited to drainage studies, soils reports, structural calculations) b. All off-site improvement plans submitted for plan check shall be prepared on the City's standard 24" x 36" sheets. A signature block satisfactory to the City Engineer or his designee shall be provided. c. After completion of plan checking, final mylar drawings, stamped and signed by the Registered Civil Engineer in charge, shall be submitted to the City Engineer and/or Building Official for approval. d. Copies of the City's design policies and procedures and standard drawings are available at the Public Works Counter for the cost of reproduction. They are also available at no charge at the Public Works Web Site at hM://www.sbcit" 25. Re,::uired Engineering Permits a. Grading permit. b. On-site improvements construction permit (except buildings - see Development Services -Building Division), including landscaping. c. Off-site improvement construction permit. 26. Ar�r�licable Eneineerinu Fees a. All plan check, permit, inspection, and impact fees are outlined on the Public Works Fee Schedule. A deposit in the amount of 100% of the estimated checking fee for each set of plans will be required at time of application for plan check. The amount of the fee is subject to adjustment if the construction cost estimate varies more than 10% from the estimate submitted with the application for plan checking. 15 b. The current fee schedule is available at the Public Works Counter and at hU://www.sbcity.gig 27. Traffic Requirements a. All Traffic mitigation measures shall be implemented according to the recommendations of the City Traffic Engineer. The project shall be conditioned to comply with all of the mitigation measures identified in the revised Traffic Impact Study report, November 8, 2016, and the updated evaluation letter, dated November 14, 2016. Building and Safety Division 28. Refer to Section 105 of the California Building Code 2013 for all required permits. 29. Address the requirements of the California Green Code 2013 for all debris. Check the VOC forms per code. 30. Review Chapter 3 of the California Building Code 2013 for the Occupancy Requirements and Chapter 4 for the Special Use Requirements. 31. Formal submittals to the Building Division shall include all required documents. This includes a Soil Report per Chapter 18 of the California Building Code 2013. 32. The Building Permit plans shall include the location of all existing fire hydrants. A separate set of plans shall be submitted to the Fire Department, 33. Refer to Chapter 11B of the California building Code 2013 for ADA requirements. Fire Department 34. The developer shall comply with all Building, Fire Codes and Fire Department Standards requirements based on occupancy classification. 35. Any changes to this proposal shall require new Fire Department condition letter. 36. Any changes to the approved life safety system shall require plans to be submitted to the Fire Department prior to construction including the following: fire sprinklers, fire alarms, underground water supply for fire protection, cooking appliances and hood protections. 37. Knox Box/Key Box is required, and shall be provided and installed in accordance with CFC and Fire Department Standards. 38. Required fire flow for this project shall meet the minimum requirements established in the California Fire Code. 39. An approved on-site fire protection water system, in accordance with Fire Department Standard is required. The system is required to be in place and serviceable prior to building construction. 40. An approved water supply system, complete with street fire hydrants complying with Fire Department Standard, shall be in place prior to any combustible construction. 41. Provide a complete on-site fire protection plan to the FD which indicates the location of all required fire protection appliances (FDC's, PIV's, DDC's, proposed and existing fire hydrants, etc.). 16 42. Fencing, walls or car ports shall not obstruct Fire Department access to fire hydrants and property. 43. Paved access from two (2) points shall be required for completion and occupancy. 44. All access gates shall require mechanical means for opening in event of power failure, shall not impinge on required clear width when fully open, and shall be equipped with Knox Box lock actuation devices. 45. Interior/exterior Fire Department access roadways/fire lanes shall be required per Fire Department Standard. If gates installed, must comply with Fire Department Standards. 46. Storage containers may not block Fire Department access. 47. shall Provide the following FD notes on the site utility plan: a. A separate permit is required by the Fire Department for installation of on-site water systems. No work may begin until the permit has been obtained. A permit application may be obtained from Fire Prevention. b. All hydrants shall have a blue reflective dot placed in the drive lane adjacent to the hydrants per Fire Department Standard. c. Paint curbs red, 15' to either side of fire hydrant and FDC. d. Fire Department Connection required within 50 feet of a hydrant. e. Bollards (crash posts) may be required at time of final inspection (to protect the fire hydrants and FDC from vehicular traffic). f. Public fire hydrants are required along streets at intervals not to exceed 300 feet for commercial and 500 for residential areas. 48. Paved access from two (2) points are required to be 30 feet in width 3 or more stories in height or over 300,000 square feet. 49. Premise and Building identification and addressing shall be a minimum of 12 inch in height. 50. All fire access roads in to this project shall meet San Bernardino County standards and CFC codes. 51. If warehouse will be used for storage the sprinkler design will comply with the requirements of NFPA for heights and commodity. All spec buildings shall be designed to a minimum of .6/3000 sprinkler design. 52. Fire Control Room is required all warehouse over 300,000. See standard: S1 for construction requirements. 53. High -piled storage plans shall be submitted prior to any storage or approval of racks within the warehouse. Contact (909) 918-2201 for information. 54. Fire extinguishers are required throughout. All spacing shall meet the California Fire Code for spacing and size. 55. All exiting shall comply with the California Fire Code and Building Code for travel distance, lineal feet, and width. 17 SECTION 4. DEVELOPMENT AND ENVIRONMENTAL REVIEW COMMITTEE ACTION: The Development and Environmental Review Committee hereby takes the following action: 1. Adoption of Development and Environmental Review Committee Resolution No. 2016- 063-D/ERC: a. Adopts the Addendum to Final Environmental Impact Report (California State Clearinghouse No. 90020908) for Development Permit Type -D 16-19, in accordance with § 15074 of the California Environmental Quality Act; and b. Approves Development Permit Type -D 16-19, subject to the aforementioned Conditions of Approval. PASSED, APPROVED AND ADOPTED this 81h day of December 2016. ATTEST: City of San Bernardino, California 18 San Bernard and iittee CERTIFICATION: I, Melina Perez -Ramirez, Recording Secretary of the Development and Environmental Review Committee of the City of San Bernardino, California, do hereby certify that the foregoing Resolution, No. 2016-063-D/ERC, was duly adopted by the Development and Environmental Review Committee of the City of San Bernardino, California, at a regular meeting thereof held on the 8th day of December 2016, by the following vote, to wit: AYES: Johnson, Morris, Akers, Cotarigco, Sepulveda, Khodr, Brunson, Castro, and Pearson NOES: None ABSENT: None ABSTAIN: None Melina Perez-RYinirez, City of San Bernardino, EXHIBIT "A" APPROVED PLANS 20 d�'ONIq>MJai30lvtle A.Un 'Nisi 9nelet 173fObd $f� ��1€ a�5 �::�_ ❑ D Y t iii . P ei' e e jtq€axa € 1€ F � ��.: lE }fi g U11111,1 fY6t t � a 1 1 '11!ell, �� E i X 4 5 11gol?n j€� G y 'i1 i p pill! 11110 a< I - 0 r Q €1i( 1�1€11 ie 1 w a VJ'ONNNiVN88 NV6 d0 WO 1V11 vilans 161 173fOUd e V® r O8 11,5 J LL = J YLi.she Q F j 5` 3 F p $° 111'.111411.111 let1311111.10 !.50 to rxEs I �tfsnHIS ii3te¢�4I I aHOW HIM 4LJUVLJU O j ' 1 1J 1 I I I I I 1 1 1 I s 1---�- � 1 I I 1 1 1 I 1 1 1 1 1 1 I 1 1 I s i ; i E tQ F Q !■� �, pg �i.EPp �� Q +7 P4 oa 61e Rf PSG Qj' ip Qy tit x 6 S P 6�yaPn g 4 � x Ej � E Q■ ,3 � p� ��Q1e (1111511. fill yEi i i i �F 6g` p�p e�{@pi e V® r O8 11,5 J LL = J YLi.she Q F j 5` 3 F p $° 111'.111411.111 let1311111.10 !.50 to rxEs I �tfsnHIS ii3te¢�4I I aHOW HIM 4LJUVLJU O j ' 1 1J 1 I I I I I 1 1 1 I s 1---�- � 1 I I 1 1 1 I 1 1 1 1 1 1 I 1 1 I V D'ONX MiNN39 NYS d0 u10 wumens Lot 1mmlld za CV so QCo JLL @@ r y S4e 4 ! } s 1 � � l � k�i�tl d 0� io�.E �'��t ReE i Igpqqe }a _ �$d . @tl!e:} Cai° �4i a i[`+'�} t ar°aL r.lipp�@44glFRe•s eg' artaydixg�s l/ pet Eii .teg RM clt� tit fe��.}E9aa��$ty�x�8€F$9 f{ �fQ[$ {� 't +xt¢ ���69 Ai3 @9i9 I`1� I �- liy EFi� Ft a `2 f xs7 9 tlP?Ch 6P�IiN :--! 3$i� egg iFi 1 - --� �- I -�- II 1 1 1 1 I I I I I 1 I 1 1 1 I I I I I I I I I I I I I I I I I I I I I I I I I I i l l I l i l l l l l l l l l l l 1 1 1 I I I I I I I I I I I I I I II I 1 1 1 1 1 1 1 1 I I 1 1 vo'oanoavxnss Nvs do A= wumans isi Ix r Ego M J m � V3'MOWNtl38 NVS AO ALJ ivutWeOS ASL imrona xq`.l 6 N " QN Z�ooy < M m� w Q DIF CREDIT AGREEMENT Ridge San Bernardino One This DIF CREDIT AGREEMENT ("Agreement") is entered into this 15th day of November 2017, by and between the CITY OF SAN BERNARDINO, a California municipal corporation ("CITY"), and Ridge Development Company, LLC, ("DEVELOPER"). CITY and DEVELOPER are sometimes hereinafter referred to individually as "Party" and collectively as "Parties." RECITALS WHEREAS, DEVELOPER owns approximately 38.4 acres of real property located within the CITY which is more specifically described in the legal description set forth in Exhibit "A", attached hereto and incorporated herein by this reference ("Property"); WHEREAS, DEVELOPER has requested from CITY certain entitlements and/or permits for the construction of improvements on the Property, which are more particularly described as the establishment and operation of two (2) industrial buildings containing approximately 392,983 square feet (Building 1) and approximately 326,199 square feet (Building 2) along with the construction of the required on-site and off-site improvements, on two (2) separate parcels containing a combined total of approximately 38.4 acres ("Project"); WHEREAS, CITY requires DEVELOPER to pay certain development impact fees for the purpose of defraying all or a portion of the cost of public improvements, public services, and community amenities related to the Project ("DIF"); WHEREAS, the estimated Local Circulation System Impact Fee under Section 3.27.050 of the Municipal Code for Building 1 is $59,733.42 and for Building 2 is $49,975.05; and WHEREAS, the estimated and the Regional Circulation System Impact Fee under Section 3.27.060 of the Municipal Code for Building 1 is $625,235.95 and for Building 2 is $523,044.16; WHEREAS, section 3.27.140 of the San Bernardino Municipal Code authorizes the CITY to issue DIF credits to a DEVELOPER who constructs or donates certain public improvements to reduce their DIF obligation; WHEREAS, section 3.27.150 of the San Bernardino Municipal Code authorizes the CITY to reimburse a DEVELOPER who constructs public improvements that, among other things, benefits the public generally rather than Developer's property; 1 DIF CREDIT AGREEMENT Ridge San Bernardino One WHEREAS, DEVELOPER desires to construct certain public improvements that would be funded by the DIF Program ("DIF Improvements") and obtain DIF credits or reimbursements from the CITY; and, WHEREAS, CITY and DEVELOPER now desire to enter into this Agreement for the following purposes: (1) to provide for the timely delivery of the DIF Improvements, (2) to ensure that delivery of the DIF Improvements is undertaken as if the DIF Improvements were constructed under the direction and authority of the CITY, (3) to provide a means by which the DEVELOPER's costs for project delivery of the DIF Improvements are offset against DEVELOPER's obligation to pay the applicable DIF for the Project, and (4) to provide a means for DEVELOPER to be reimbursed to the extent allowable under the San Bernardino Municipal Code. NOW, THEREFORE, for the purposes set forth herein, and for good and valuable consideration, the adequacy of which is hereby acknowledged, DEVELOPER and CITY hereby agree as follows: "M 1.0 Incorporation of Recitals. The Parties hereby affirm the facts set forth in the Recitals above and agree to the incorporation of the Recitals as though fully set forth herein. 2.1 Construction of DIF Improvements. DEVELOPER shall construct or have constructed at its own cost, expense, and liability certain DIF Improvements generally described as the construction of public improvements in the form of street, curb and gutter, sidewalk, street light, and utility improvements along (1) the frontage of the BNSF transcontinental mainline and (2) the frontage of the MWD property, in proximity to the regional Palm Avenue and BNSF grade separation project, and as shown more specifically on the plans, profiles, and specifications which have been prepared by or on behalf of DEVELOPER and approved by CITY and which are incorporated herein by this reference. Construction of the DIF Improvements shall include any transitions and/or other incidental work deemed necessary for drainage or public safety. DEVELOPER shall be responsible for the replacement, relocation, or removal of any component of any existing public or private improvement in conflict with the construction or installation of the DIF Improvements. Such replacement, relocation, or removal shall be performed to the complete satisfaction of CITY and the owner of such improvement. DEVELOPER further promises and agrees to provide all equipment, tools, materials, labor, tests, design work, and engineering services necessary to fully and adequately complete the DIF Improvements. 2.2 Pre -approval of Plans and Specifications. DEVELOPER is prohibited from commencing work on any portion of the DIF Improvements until all plans and 2 DIF CREDIT AGREEMENT Ridge San Bernardino One specifications for the DIF Improvements have been submitted to and approved by CITY. Approval by CITY shall not relieve DEVELOPER from ensuring that all DIF Improvements conform with all other requirements and standards set forth in this Agreement. 2.3 Permits and Notices. Prior to commencing any work, DEVELOPER shall, at its sole cost, expense, and liability, obtain all necessary permits and licenses and give all necessary and incidental notices required for the lawful construction of the DIF Improvements and performance of DEVELOPER's obligations under this Agreement. DEVELOPER shall conduct the work in full compliance with the regulations, rules, and other requirements contained in any permit or license issued to DEVELOPER. 2.4 Public Works Requirements. In order to insure that the DIF Improvements will be constructed as if they had been constructed under the direction and supervision, or under the authority of, CITY, DEVELOPER shall comply with all of the following requirements with respect to the construction of the DIF Improvements: (a) DEVELOPER shall obtain bids for the construction of the DIF Improvements, in conformance with the standard procedures and requirements of CITY with respect to its public works projects, or in a manner which is approved by the Public Works Department. (b) The contract or contracts for the construction of the DIF Improvements shall be awarded to the responsible bidder(s) submitting the lowest responsive bid(s) for the construction of the DIF Improvements. (c) DEVELOPER shall require, and the specifications and bid and contract documents shall require, all such contractors to pay prevailing wages (in accordance with Articles 1 and 2 of Chapter 1, Part 7, Division 2 of the Labor Code) and to otherwise comply with applicable provisions of the Labor Code, the Government Code and the Public Contract Code relating to public works projects of cities and as required by the Charter of the City of San Bernardino, the San Bernardino Municipal Code, and the procedures and standards of CITY with respect to the construction of its public works projects or as otherwise directed by the Public Works Department. Notwithstanding the foregoing, DEVELOPER shall have the right to request a determination from the Public Works Department that (a) the Project is not subject to prevailing wages based on Labor Code Section 1720(c)(3), and therefore, (b) not required to carry out the Project as a public works project. A request for determination shall be 3 DIF CREDIT AGREEMENT Ridge San Bernardino One made in writing by DEVELOPER to the CITY Public Works Director and the CITY Public Works Director, or his or her designee, shall use his or her best efforts to make a determination within five (5) calendar days of receipt of a written request for a determination from DEVELOPER. In the event that the Public Works Department makes the determinations requested by Developer, then this Subsection 2.4(c) shall not apply to this Project. (d) All such contractors shall be required to provide proof of insurance coverage throughout the term of the construction of the DIF Improvements which they will construct in conformance with CITY's standard procedures and requirements. (e) DEVELOPER and all such contractors shall comply with such other requirements relating to the construction of the DIF Improvements which CITY may impose by written notification delivered to DEVELOPER and each such contractor at any time, either prior to the receipt of bids by DEVELOPER for the construction of the DIF Improvements, or, to the extent required as a result of changes in applicable laws, during the progress of construction thereof. DEVELOPER shall provide proof to CITY, at such intervals and in such form as CITY may require that the foregoing requirements have been satisfied. 2.5 Quality of Work; Compliance With Laws and Codes. The construction plans and specifications for the DIF Improvements shall be prepared in accordance with all applicable federal, state and local laws, ordinances, regulations, codes, standards, and other requirements. The DIF Improvements shall be completed in accordance with all approved maps, plans, specifications, standard drawings, and special amendments thereto on file with CITY, as well as all applicable federal, state, and local laws, ordinances, regulations, codes, standards, and other requirements applicable at the time work is actually commenced. 2.6 Standard of Performance. DEVELOPER and its contractors, if any, shall perform all work required, constructing the DIF Improvements in a skillful and workmanlike manner, and consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. DEVELOPER represents and maintains that it or its contractors shall be skilled in the professional calling necessary to perform the work. DEVELOPER warrants that all of its employees and contractors shall have sufficient skill and experience to perform the work assigned to them, and that they shall have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the work, and that such licenses, permits, qualifications and approvals shall be maintained throughout the term of this Agreement. 4 DIF CREDIT AGREEMENT Ridge San Bernardino One 2.7 Alterations to DIF Improvements. All work shall be done and the DIF Improvements completed as shown on approved plans and specifications, and any subsequent alterations thereto. If during the course of construction and installation it is determined that the public interest requires alterations in the DIF Improvements, DEVELOPER shall undertake such design and construction changes as may be reasonably required by CITY. Any and all alterations in the plans and specifications and the DIF Improvements to be completed may be accomplished without first giving prior notice thereof to DEVELOPER's surety for this Agreement. 3.0 Maintenance of DIF Improvements. CITY shall not be responsible or liable for the maintenance or care of the DIF Improvements until CITY approves and accepts them. CITY shall exercise no control over the DIF Improvements until accepted. Any use by any person of the DIF Improvements, or any portion thereof, shall be at the sole and exclusive risk of DEVELOPER at all times prior to CITY's acceptance of the DIF Improvements. DEVELOPER shall maintain all of the DIF Improvements in a state of good repair until they are completed by DEVELOPER and approved and accepted by CITY, and until the security for the performance of this Agreement is released. It shall be DEVELOPER's responsibility to initiate all maintenance work, but if it shall fail to do so, it shall promptly perform such maintenance work when notified to do so by CITY. If DEVELOPER fails to properly prosecute its maintenance obligation under this section, CITY may do all work necessary for such maintenance and the cost thereof shall be the responsibility of DEVELOPER and its surety under this Agreement. CITY shall not be responsible or liable for any damages or injury of any nature in any way related to or caused by the DIF Improvements or their condition prior to acceptance. 4.0 Fees and Charges. DEVELOPER shall, at its sole cost, expense, and liability, pay all fees, charges, and taxes arising out of the construction of the DIF Improvements, including, but not limited to, all plan check, design review, engineering, inspection, sewer treatment connection fees, and other service fees established by CITY. 5.0 CITY Inspection of DIF Improvements. DEVELOPER shall, at its sole cost, expense, and liability, and at all times during construction of the DIF Improvements, maintain reasonable and safe facilities and provide safe access for inspection by CITY of the DIF Improvements and areas where construction of the DIF Improvements is occurring or will occur. 6.0 Liens. Upon the expiration of the time for the recording of claims of liens as prescribed by Sections 8412 and 8414 of the Civil Code with respect to the DIF Improvements, DEVELOPER shall provide to CITY such evidence or proof as CITY shall require that all persons, firms and corporations supplying work, labor, 5 DIF CREDIT AGREEMENT Ridge San Bernardino One materials, supplies and equipment to the construction of the DIF Improvements, have been paid, and that no claims of liens have been recorded by or on behalf of any such person, firm or corporation. Rather than await the expiration of the said time for the recording of claims of liens, DEVELOPER may elect to provide to CITY a title insurance policy or other security acceptable to CITY guaranteeing that no such claims of liens will be recorded or become a lien upon any of the Property. 7.0 Acceptance ' of DIF Improvements; As -Built or Record Drawings. If the DIF Improvements are properly completed by DEVELOPER and approved by CITY, and if they comply with all applicable federal, state and local laws, ordinances, regulations, codes, standards, and other requirements, CITY shall be authorized to accept the DIF Improvements. CITY may, in its sole and absolute discretion, accept fully completed portions of the DIF Improvements prior to such time as all of the DIF Improvements are complete, which shall not release or modify DEVELOPER's obligation to complete the remainder of the DIF Improvements. Upon the total or partial acceptance of the DIF Improvements by CITY, DEVELOPER shall file with the Recorder's Office of the County of San Bernardino a notice of completion for the accepted DIF Improvements in accordance with California Civil Code sections 8182, 8184, 9204, and 9208 ("Notice of Completion"), at which time the accepted DIF Improvements shall become the sole and exclusive property of CITY without any payment therefore. Notwithstanding the foregoing, CITY may not accept any DIF Improvements unless and until DEVELOPER provides one (1) set of "as -built" or record drawings or plans to the CITY for all such DIF Improvements. The drawings shall be certified and shall reflect the condition of the DIF Improvements as constructed, with all changes incorporated therein. 8.0 Warranty and Guarantee. DEVELOPER hereby warrants and guarantees all the DIF Improvements against any defective work or labor done, or defective materials furnished in the performance of this Agreement, including the maintenance of the DIF Improvements, for a period of one (1) year following completion of the work and acceptance by CITY ("Warranty"). During the Warranty, DEVELOPER shall repair, replace, or reconstruct any defective or otherwise unsatisfactory portion of the DIF Improvements, in accordance with the current ordinances, resolutions, regulations, codes, standards, or other requirements of CITY, and to the approval of CITY. All repairs, replacements, or reconstruction during the Warranty shall be at the sole cost, expense, and liability of DEVELOPER and its surety. As to any DIF Improvements which have been repaired, replaced, or reconstructed during the Warranty, DEVELOPER and its surety hereby agree to extend the Warranty for an additional one (1) year period following CITY's acceptance of the repaired, replaced, or reconstructed DIF Improvements. Nothing herein shall relieve DEVELOPER from any other liability it may have under federal, state, or local law to repair, replace, or reconstruct any DIF Improvement following expiration of the Warranty or any extension thereof. DEVELOPER's 6 DIF CREDIT AGREEMENT Ridge San Bernardino One warranty obligation under this section shall survive the expiration or termination of this Agreement. 9.0 Administrative Costs. If DEVELOPER fails to construct and install all or any part of the DIF Improvements, or if DEVELOPER fails to comply with any other obligation contained herein, DEVELOPER and its surety shall be jointly and severally liable to CITY for all administrative expenses, fees, and costs, including reasonable attorney's fees and costs, incurred in obtaining compliance with this Agreement or in processing any legal action or for any other remedies permitted by law. 10.1 Default; Notice; Remedies. 10.2 Notice. If DEVELOPER neglects, refuses, or fails to fulfill or timely complete any obligation, term, or condition of this Agreement, or if CITY determines there is a violation of any federal, state, or local law, ordinance, regulation, code, standard, or other requirement, CITY may at any time thereafter declare DEVELOPER to be in default or violation of this Agreement and make written demand upon DEVELOPER or its surety, or both, to immediately remedy the default or violation ("Notice"). DEVELOPER shall substantially commence the work required to remedy the default or violation within ten (10) days of the Notice. If the default or violation constitutes an immediate threat to the public health, safety, or welfare, CITY may provide the Notice verbally, and DEVELOPER shall substantially commence the required work within twenty-four (24) hours thereof. Immediately upon CITY's issuance of the Notice, DEVELOPER and its surety shall be liable to CITY for all costs of construction and installation of the DIF Improvements and all other administrative costs or expenses as provided for in this Section 10.0 of this Agreement. 10.3 Failure to Remedy; CITY Action. If the work required to remedy the noticed default or violation is not diligently prosecuted to a completion acceptable to CITY within the time frame contained in the Notice, CITY may complete all remaining work, arrange for the completion of all remaining work, and/or conduct such remedial activity as in its sole and absolute discretion it believes is required to remedy the default or violation. All such work or remedial activity shall be at the sole and absolute cost, expense, and liability of DEVELOPER and its surety, without the necessity of giving any further notice to DEVELOPER or surety. CITY's right to take such actions shall in no way be limited by the fact that DEVELOPER or its surety may have constructed any of the DIF Improvements at the time of CITY's demand for performance. In the event CITY elects to complete or arrange for completion of the remaining work and the DIF Improvements, CITY may require all work by DEVELOPER or its surety to cease in order to allow adequate coordination by CITY. 7 DIF CREDIT AGREEMENT Ridge San Bernardino One 10.4 Other Remedies. No action by CITY pursuant to this Section 10.0 et seq. of this Agreement shall prohibit CITY from exercising any other right or pursuing any other legal or equitable remedy available under this Agreement or any federal, state, or local law. CITY may exercise its rights and remedies independently or cumulatively, and CITY may pursue inconsistent remedies. CITY may institute an action for damages, injunctive relief, or specific performance. 11.1 Security; Surety Bonds. Prior to the commencement of any work on the DIF Improvements, DEVELOPER or its contractor shall provide CITY with surety bonds in the amounts and under the terms set forth below ("Security"). The amount of the Security shall be based on the estimated actual costs to construct the DIF Improvements, as determined by CITY after DEVELOPER has awarded a contract for construction of the DIF Improvements to the lowest responsive and responsible bidder in accordance with this Agreement ("Estimated Costs"). If CITY determines, in its sole and absolute discretion, that the Estimated Costs have changed, DEVELOPER or its contractor shall adjust the Security in the amount requested by CITY. DEVELOPER's compliance with this Section 11.0 et seq. of this Agreement shall in no way limit or modify DEVELOPER's indemnification obligation provided in Section 12.0 of this Agreement. 11.2 Performance Bond. To guarantee the faithful performance of the DIF Improvements and all the provisions of this Agreement, to protect CITY if DEVELOPER is in default as set forth in Section 10.0 et seq. of this Agreement, and to secure the one-year guarantee and warranty of the DIF Improvements, DEVELOPER or its contractor shall provide CITY a faithful performance bond in an amount which sum shall be not less than one hundred percent (100%) of the Estimated Costs. The CITY may, in its sole and absolute discretion, partially release a portion or portions of the security provided under this section as the DIF Improvements are accepted by CITY, provided that DEVELOPER is not in default on any provision of this Agreement and the total remaining security is not less than fifty percent (50%) of the Estimated Costs. All security provided under this section shall be released at the end of the Warranty period, or any extension thereof as provided in Section 11.0 of this Agreement, provided that DEVELOPER is not in default on any provision of this Agreement. 11.3 Labor & Material Bond. To secure payment to the contractors, subcontractors, laborers, materialmen, and other persons furnishing labor, materials, or equipment for performance of the DIF Improvements and this Agreement, DEVELOPER or its contractor shall provide CITY a labor and materials bond in an amount which sum shall not be less than one hundred percent (100%) of the Estimated Costs. The security provided under this section may be released by written authorization of CITY after six (6) months from the date CITY accepts the DIF Improvements. The amount of such security shall be reduced by the total of all stop notice or mechanic's lien claims of which CITY is aware, plus an 8 DIF CREDIT AGREEMENT Ridge San Bernardino One amount equal to twenty percent (20%) of such claims for reimbursement of CITY's anticipated administrative and legal expenses arising out of such claims. 11.4 Additional Requirements. The surety for any surety bonds provided as Security shall have a current A.M. Best rating of at least "A" and FSC -VIII, shall be licensed to do business in California, shall have a physical office within one hundred (100) miles of the city limits, and shall be satisfactory to CITY. As part of the obligation secured by the Security and in addition to the face amount of the Security, DEVELOPER, its contractor or the surety shall secure the costs and reasonable expenses and fees, including reasonable attorney's fees and costs, incurred by CITY in enforcing the obligations of this Agreement. DEVELOPER, its contractor and the surety shall stipulate and agree that no change, extension of time, alteration, or addition to the terms of this Agreement, the DIF Improvements, or the plans and specifications for the DIF Improvements shall in any way affect its obligation on the Security. 11.5 Evidence and Incorporation of Security. Evidence of the Security shall be provided on the forms set forth in Exhibit `B", unless other forms are deemed acceptable by the CITY, and when such forms are completed to the satisfaction of CITY, the forms and evidence of the Security shall be attached hereto as Exhibit "B" and incorporated herein by this reference. 12.0 Indemnification. The DEVELOPER agrees to defend, indemnify, and hold harmless the CITY, its officers, elected and appointed officials, employees, agents, and volunteers (each, an "Indemnified Party") from and against any and all claims, damages, losses, expenses, fines, penalties, judgments, demands, and actual, direct, documented and reasonable out -of pocket defense costs and expenses (including, without limitation, amounts paid in compromise or settlement and reasonable outside legal fees arising from litigation of every nature or liability of any kind or nature including civil, criminal, administrative or investigative) arising out of or in any way related to or caused by the DIF Improvements or their condition prior to CITY's approval and acceptance of the DIF Improvements, except as to such loss or damage which was caused by the sole negligence or willful misconduct of an Indemnified Party. DEVELOPER hereby waives any and all rights to any types of express or implied indemnity against any of the Indemnified Parties arising out of the above referenced conduct. The policy limits of any insurance of the DEVELOPER, its affiliates or other parties are not a limitation upon the obligation of the DEVELOPER, including without limitation, the amount of indemnification to be provided by the DEVELOPER. The provisions of this section shall survive the termination of this Agreement. 13.1 Insurance. 9 DIF CREDIT AGREEMENT Ridge San Bernardino One 13.2 Types; Amounts. DEVELOPER shall procure and maintain, and shall require its contractors to procure and maintain, during performance of this Agreement, insurance of the types and in the amounts described below ("Required Insurance"). If any of the Required Insurance contains a general aggregate limit, such insurance shall apply separately to this Agreement or be no less than two times the specified occurrence limit. (a) General Liability. Occurrence version general liability insurance, or equivalent form, with a combined single limit of not less than Two Million Dollars ($2,000,000) per occurrence for bodily injury, personal injury, and property damage. (b) Automobile Liability. Automobile liability insurance with a combined single limit of not less than One Million Dollars ($1,000,000) per occurrence. Such insurance shall include coverage for the ownership, operation, maintenance, use, loading, or unloading of any auto owned, leased, hired, or borrowed by the insured or for which the insured is responsible. (c) Workers' Compensation. Workers' compensation insurance with limits as required by the Labor Code of the State of California and employers' liability insurance with limits of not less than One Million Dollars ($1,000,000) per occurrence, at all times during which insured retains employees. (d) Professional Liability. For any consultant or other professional who will engineer or design the DIF Improvements, liability insurance for errors and omissions with limits not less than Two Million Dollars ($2,000,000) per occurrence, shall be procured and maintained for a period of five (5) years following completion of the DIF Improvements. Such insurance shall be endorsed to include contractual liability. 13.3 Deductibles. Any deductibles or self-insured retentions must be declared to and approved by CITY. At the option of CITY, either: (a) the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects CITY, its elected officials, officers, employees, agents, and volunteers; or (b) DEVELOPER and its contractors shall provide a financial guarantee satisfactory to CITY guaranteeing payment of losses and related investigation costs, claims, and administrative and defense expenses. 13.4 Additional Insured; Separation of Insureds. The Required Insurance shall name CITY, its elected officials, officers, employees, and agents as additional insureds with respect to work performed by or on behalf of DEVELOPER or its contractors, including any materials, parts, or equipment furnished in connection 10 DIF CREDIT AGREEMENT Ridge San Bernardino One therewith. The Required Insurance shall contain standard separation of insureds provisions, and shall contain no special limitations on the scope of its protection to CITY, its elected officials, officers, employees, or agents. 13.5 Primary Insurance; Waiver of Subrogation. The Required Insurance shall be primary with respect to any insurance or self-insurance programs covering CITY, its elected officials, officers, employees, or agents. The policy required for workers' compensation insurance shall provide that the insurance company waives all right of recovery by way of subrogation against CITY in connection with any damage or harm covered by such policy. 13.6 Certificates; Verification. DEVELOPER and its contractors shall furnish CITY with original certificates of insurance and endorsements effecting coverage for the Required Insurance. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf. All certificates and endorsements must be received and approved by CITY before work pursuant to this Agreement can begin. CITY reserves the right to require complete, certified copies of all required insurance policies, at any time. 13.7 Term; Cancellation Notice. DEVELOPER and its contractors shall maintain the Required Insurance for the term of this Agreement and shall replace any certificate, policy, or endorsement which will expire prior to that date. All policies shall be endorsed to provide that the Required Insurance shall not be suspended, voided, reduced, canceled, or allowed to expire except on thirty (30) days' prior written notice to CITY. 13.8 Insurer Rating. Unless approved in writing by CITY, all Required Insurance shall be placed with insurers licensed to do business in the State of California and with a current A.M. Best rating of at least "A" and FSC -VIII. 14 DIF Credits. 14.1 DEVELOPER's DIF Obligation. DEVELOPER hereby agrees and accepts that as of the date of this Agreement, the amount DEVELOPER is obligated to pay to CITY as part of the DIF Program for the Local Circulation DIF and Regional Circulation DIF is ONE MILLION TWO HUNDRED FIFTY SEVEN NINE HUNDRED EIGHTY EIGHT DOLLARS AND FIFTY EIGHT CENTS ($1,257,988.58) ("DIF Obligation"). This DIF Obligation has been initially determined under the nexus study and fee schedule in effect for the CITY at the time of this Agreement. This DIF Obligation does not have to be paid until the Certificate of Occupancy is obtained. In the event that the amount of the DIF Credit has not been determined at the time DEVELOPER requests a Certificate of Occupancy, the Parties agree to determine in 11 DIF CREDIT AGREEMENT Ridge San Bernardino One good faith an estimate of the DIF Credit and the DIF Obligation will offset accordingly, based on the estimated DIF Credit. Once the actual DIF Credit is determined, the CITY will reconcile it with the estimated DIF Credit used in determining the DEVELOPER'S DIF Obligation and either the CITY will reimburse the DEVELOPER or the DEVELOPER will reimburse the CITY, as the case may be, for any overage or underage in the payment DEVELOPER made against the DIF Obligation. Notwithstanding the foregoing, DEVELOPER agrees that this Agreement shall not estop CITY from adjusting the DIF. 14.2 Credit Offset Against DIF Obligation. Pursuant to section 3.27.140 of the San Bernardino Municipal Code and in consideration for DEVELOPER's obligation under this Agreement for the delivery of DIF Improvements, credit shall be applied by CITY to offset the DIF Obligation subject to adjustment and reconciliation under Section 14.4 of this Agreement ("DIF Credit"). DEVELOPER agrees that the dollar amount of the DIF Credit shall be equal to the lesser of (A) the total actual costs incurred by DEVELOPER in securing the DIF Improvements covered under this Agreement ("DIF Verified Costs"); or (B) the estimated cost of the DIF Improvements as identified in the DIF study in effect at the time of the issuance of a building permit for the project ("DIF Unit Cost Assumptions"). The DIF Verified Costs and the DIF Unit Cost Assumptions shall hereafter be collectively referred to as "DIF Estimated Credit". At no time will the DIF Credit exceed the DEVELOPER's DIF Obligation. If the dollar amount of the DIF Estimated Credit exceeds the dollar amount of the DIF Obligation, DEVELOPER will be deemed to have completely satisfied its DIF Obligation for the Project and may apply for a reimbursement agreement, to the extent applicable, as provided in Section 14.5 of this Agreement. CITY shall provide DEVELOPER written notice of the determinations that CITY makes pursuant to this section, including how the DIF Credit is applied to offset the DIF Obligation as described above. 14.3 Verified Cost of the DIF Improvements. Upon recordation of the Notice of Completion for the DIF Improvements and acceptance of the DIF Improvements by CITY, DEVELOPER shall submit to the CITY Public Works Director the applicable information set forth in the attached Exhibit "C". The CITY Public Works Director, or his or her designee, shall use the information provided by DEVELOPER to calculate the DIF Verified Costs. The CITY Public Works Director will use his or her best efforts to determine the amount of the DIF Verified Costs and provide DEVELOPER written notice thereof within thirty (30) calendar days of receipt of all the required information from DEVELOPER. 14.4 Reconciliation, Final Credit Offset Against DIF Obligations. The DEVELOPER is aware of and accepts the fact that credits are speculative and conceptual in nature. The actual amount of DIF Credit that shall be applied by CITY to offset the DIF Obligation shall be equal to the lesser of. (A) the DIF 12 DIF CREDIT AGREEMENT Ridge San Bernardino One Verified Costs or (B) the DIF Unit Cost Assumptions as determined in accordance with Section 14.2 of this Agreement ("Actual DIF Credit"). No Actual DIF Credit will be awarded until the DIF Verified Costs are determined through the reconciliation process. Please be advised that while a DEVELOPER may use an engineer's estimate in order to estimate DIF Credits for project planning purposes, the Actual DIF Credit awarded will only be determined by the reconciliation process. (a) DIF Balance. If the dollar amount of the Actual DIF Credit is less than the dollar amount of the DIF Obligation, the CITY Public Works Director shall provide written notice to DEVELOPER of the amount of the difference owed ("DIF Balance") and DEVELOPER shall pay the DIF Balance to fully satisfy the DIF Obligation. (b) DIF Reimbursement. If the dollar amount of the Actual DIF Credit exceeds the DIF Obligation, DEVELOPER will be deemed to have fully satisfied the DIF Obligation for the Project and may apply for a reimbursement agreement, to the extent applicable, as provided in Section 14.5 of this Agreement. CITY shall provide DEVELOPER written notice of the determinations that CITY makes pursuant to this section. (c) DIF Overpayment. If the dollar amount of the Actual DIF Credit exceeds the Estimated Credit, but is less than the DIF Obligation, but the Actual Credit plus additional monies collected by CITY from DEVELOPER for the DIF Obligation exceed the DIF Obligation ("DIF Overpayment"), DEVELOPER will be deemed to have fully satisfied the DIF Obligation for the Project and may be entitled to a refund. 14.5 Reimbursement Agreement. If authorized under either Section 14.2 or Section 14.4 DEVELOPER may apply to CITY for a reimbursement agreement for the amount by which the Actual DIF Credit exceeds the DIF Obligation, as determined pursuant to Section 14.4 of this Agreement, section 3.27.150 of the San Bernardino Municipal Code, and any policies adopted by the CITY's regarding development impact fee credits or reimbursement ("Reimbursement Agreement"). If CITY agrees, in its reasonable discretion, to a Reimbursement Agreement with DEVELOPER, the Reimbursement Agreement shall be executed on the form set forth in Exhibit "D," and shall contain the terms and conditions set forth therein. The Parties agree that the Reimbursement Agreement shall be subject to all terms and conditions of this Agreement, and that upon execution, an executed copy of the Reimbursement Agreement shall be attached hereto and shall be incorporated herein as a material part of this Agreement as though fully set forth herein. 15.1 Miscellaneous. 13 DIF CREDIT AGREEMENT Ridge San Bernardino One 15.2 Assignment. DEVELOPER may assign all or a portion of its rights pursuant to this Agreement to a purchaser of a portion or portions of the Property ("Assignment"). DEVELOPER and such purchaser and assignee ("Assignee") shall provide to CITY such reasonable proof as it may require that Assignee is the purchaser of such portions of the Property. Any assignment pursuant to this section shall not be effective unless and until DEVELOPER and Assignee have executed an assignment agreement with CITY in a form reasonably acceptable to CITY, whereby DEVELOPER and Assignee agree, except as may be otherwise specifically provided therein, to the following: (1) that Assignee shall receive all or a portion of DEVELOPER's rights pursuant to this Agreement, including such credit as is determined to be applicable to the portion of the Property purchased by Assignee pursuant to Section 14.0 et seq. of this Agreement, and (2) that Assignee shall be bound by all applicable provisions of this Agreement. 15.3 Relationship Between the Parties. The Parties hereby mutually agree that this Agreement shall not operate to create the relationship of partnership, joint venture, or CITY between CITY and DEVELOPER. DEVELOPER's contractors are exclusively and solely under the control and dominion of DEVELOPER. Nothing herein shall be deemed to make DEVELOPER or its contractors an agent or contractor of CITY. 15.4 Warranty as to Property Ownership; Authority to Enter Agreement. DEVELOPER hereby warrants that it owns fee title to the Property and that it has the legal capacity to enter into this Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right, and authority make this Agreement and bind each respective Party. 15.5 Prohibited Interests. DEVELOPER warrants that it has not employed or retained any company or person, other than a bona fide employee working solely for DEVELOPER, to solicit or secure this Agreement. DEVELOPER also warrants that it has not paid or agreed to pay any company or person, other than a bona fide employee working solely for DEVELOPER, any fee, commission, percentage, brokerage fee, gift, or other consideration contingent upon the making of this Agreement. For breach of this warranty, CITY shall have the right to rescind this Agreement without liability. 15.6 Notices. All notices, demands, invoices, and written communications shall be in writing and delivered to the following addresses or such other addresses as the Parties may designate by written notice: To CITY: City of San Bernardino Attn: Public Works Director 290 North "D" Street 14 DIF CREDIT AGREEMENT Ridge San Bernardino One San Bernardino, CA 92401 To DEVELOPER: Ridge Development Company, LLC Attn: Dennis Rice, Executive Vice President 7777 Center Avenue, Suite 690 Huntington Beach, CA 92647 Depending upon the method of transmittal, notice shall be deemed received as follows: by messenger, as of the date delivered; and by U.S. Mail first class postage prepaid, as of 72 hours after deposit in the U.S. Mail. 15.7 Cooperation; Further Acts. The Parties shall fully cooperate with one another, and shall take any additional acts or sign any additional documents as may be necessary, appropriate, or convenient to attain the purposes of this Agreement. 15.8 Construction; References; Captions. It being agreed the Parties or their agents have participated in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. Any term referencing time, days, or period for performance shall be deemed calendar days and not work days. All references to DEVELOPER include all personnel, employees, agents, and contractors of DEVELOPER, except as otherwise specified in this Agreement. All references to CITY include its elected officials, officers, employees, agents, and volunteers except as otherwise specified in this Agreement. The captions of the various articles and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement. 15.9 Amendment; Modification. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties. 15.10 Waiver. No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual right by custom, estoppel, or otherwise. 15.11 Binding Effect. Each and all of the covenants and conditions shall be binding on and shall inure to the benefit of the Parties, and their successors, heirs, personal representatives, or assigns. This section shall not be construed as an authorization for any Party to assign any right or obligation. 15.12 No Third Party Beneficiaries. There are no intended third party beneficiaries of any right or obligation assumed by the Parties. 15 DIF CREDIT AGREEMENT Ridge San Bernardino One 15.13 Invalidity; Severability. If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect. 15.14 Consent to Jurisdiction and Venue. This Agreement shall be construed in accordance with and governed by the laws of the State of California. Any legal action or proceeding brought to interpret or enforce this Agreement, or which in any way arises out of the Parties' activities undertaken pursuant to this Agreement, shall be filed and prosecuted in the appropriate California State Court in the County of San Bernardino, California. Each Party waives the benefit of any provision of state or federal law providing for a change of venue to any other court or jurisdiction including, without limitation, a change of venue based on the fact that a governmental entity is a party to the action or proceeding, or that a federal right or question is involved or alleged to be involved in the action or proceeding. Without limiting the generality of the foregoing waiver, DEVELOPER expressly waives any right to have venue transferred pursuant to California Code of Civil Procedure Section 394. 15.15 Time is of the Essence. Time is of the essence in this Agreement, and the Parties agree to execute all documents and proceed with due diligence to complete all covenants and conditions. 15.16 Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original and which collectively shall constitute one instrument. 15.17 Entire Agreement. This Agreement contains the entire agreement between CITY and DEVELOPER and supersedes any prior oral or written statements or agreements between CITY and DEVELOPER. [Signature Page Follows] 16 DIF CREDIT AGREEMENT Ridge San Bernardino One IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the day and year first above written. CITY OF SAN BERNARDINO Andrea M. Miller, City Manager Approved as to Legal Form= Gary D. Saenz, City Attorney By,, A1'1'E. T Georgeann Hanna, CMC, City Clerk: DEVELOPER � By: < 17 DIF CREDIT AGREEMENT Ridge San Bernardino One EXHIBIT "A' LEGAL DESCRIPTION OF PROPERTY EXHIBIT A-1 R896-000 -- 3069579.3 EXHIBIT " W FORMS FOR SECURITY EXHIBIT B-1 R896-000 -- 3069579.3 i•1I • INITIAL PREMIUM: SUBJECT TO RENEWAL PERFORMANCE BOND WHEREAS, the City of San Bernardino ("CITY") has executed an agreement with [Developer] (hereinafter "DEVELOPER"), requiring DEVELOPER to perform certain work consisting of but not limited to, furnishing all labor, materials, tools, equipment, services, and incidentals for the construction of street and transportation system improvements (hereinafter the "Work"); WHEREAS, the Work to be performed by DEVELOPER is more particularly set forth in that certain DIF Credit Agreement dated [date] (hereinafter the "Agreement"); and WHEREAS, the Agreement is hereby referred to and incorporated herein by this reference; and WHEREAS, DEVELOPER or its contractor is required by the Agreement to provide a good and sufficient bond for performance of the Agreement, and to guarantee and warranty the Work constructed thereunder. NOW, THEREFORE, we the undersigned, [Developer], as Principal and [Surety], a corporation organized and existing under the laws of the State of [state] and duly authorized to transact business under the laws of the State of California, as Surety, are held and firmly bound unto the CITYin the sum of [Amount] W, said sum being not less than one hundred percent (100%) of the total cost of the Work as set forth in the Agreement, we bind ourselves, our heirs, executors and administrators, successors and assigns, jointly and severally, firmly by these presents. THE CONDITION OF THIS OBLIGATION is such, that if DEVELOPER and its contractors, or their heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions, agreements, guarantees, and warranties in the Agreement and any alteration thereof made as therein provided, to be kept and performed at the time and in the manner therein specified and in all respects according to their intent and meaning, and to indemnify and save harmless CITY, its officers, employees, and agents, as stipulated in the Agreement, then this obligation shall become null and void; otherwise it shall be and remain in full force and effect. EXHIBIT B-2 R896-000 -- 3069579.3 As part of the obligation secured hereby, and in addition to the face amount specified therefor, there shall be included costs and reasonable expenses and fees, including reasonable attorney's fees, incurred by CITY in successfully enforcing such obligation, all to be taxed as costs and included in any judgment rendered. The said Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration or additions to the terms of the said Agreement or to the Work to be performed thereunder or the specification accompanying the same shall in any way affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the Agreement or to the Work. IN WITNESS WHEREOF, we have hereto set our hands and seals this [number] day of [month], 2017. Principal By: Its: Surety Attorney- in- Fact EXHIBIT B-3 R896-000 -- 3069579.3 BOND NO. INITIAL PREMIUM SUBJECT TO RENEWAL LABOR & MATERIAL BOND WHEREAS, the City of San Bernardino ("CITY") has executed an agreement with [Developer] (hereinafter "DEVELOPER"), requiring DEVELOPER to perform certain work consisting of but not limited to, furnishing all labor, materials, tools, equipment, services, and incidentals for the construction of street and transportation system improvements (hereinafter "Work"); WHEREAS, the Work to be performed by DEVELOPER is more particularly set forth in that certain DIF Credit Agreement dated [date] (hereinafter the "Agreement"); and WHEREAS, DEVELOPER or its contractor is required to furnish a bond in connection with the Agreement providing that if DEVELOPER or any of his or its contractors shall fail to pay for any materials, provisions, or other supplies, or terms used in, upon, for or about the performance of the Work contracted to be done, or for any work or labor done thereon of any kind, or for amounts due under the provisions of 3248 of the California Civil Code, with respect to such work or labor, that the Surety on this bond will pay the same together with a reasonable attorney's fee in case suit is brought on the bond. NOW, THEREFORE, we the undersigned, [Developer], as Principal and [Surety], a corporation organized and existing under the laws of the State of [State] and duly authorized to transact business under the laws of the State of California, as Surety, are held and firmly bound unto the CITY and to any and all material men, persons, companies or corporations furnishing materials, provisions, and other supplies used in, upon, for or about the performance of the said Work, and all persons, companies or corporations renting or hiring teams, or implements or machinery, for or contributing to said Work to be done, and all persons performing work or labor upon the same and all persons supplying both work and materials as aforesaid, the sum of [amount] ($), said sum being not less than 100% of the total amount payable by DEVELOPER under the terms of the Agreement, for which payment well and truly to be made, we bind ourselves, our heirs, executors and administrators, successors and assigns jointly and severally, firmly by these presents. THE CONDITION OF THIS OBLIGATION IS SUCH that if DEVELOPER or its contractors, or their heirs, executors, administrators, successors, or assigns, EXHIBIT B-4 R896-000 -- 3069579.3 shall fail to pay for any materials, provisions, or other supplies or machinery used in, upon, for or about the performance of the Work contracted to be done, or for work or labor thereon of any kind, or fail to pay any of the persons named in California Civil Code Section 9100, or amounts due under the Unemployment Insurance Code with respect to work or labor performed by any such claimant, or for any amounts required to be deducted, withheld, and paid over to the Employment Development Department from the wages of employees of the contractor and his subcontractors pursuant to Section 13020 of the Unemployment Insurance Code with respect to such work and labor, and all other applicable laws of the State of California and rules and regulations of its agencies, then said Surety will pay the same in or to an amount not exceeding the sum specified herein. In case legal action is required to enforce the provisions of this bond, the prevailing party shall be entitled to recover reasonable attorneys' fees in addition to court costs, necessary disbursements and other consequential damages. In addition to the provisions hereinabove, it is agreed that this bond will inure to the benefit of any and all persons, companies and corporations entitled to make claims under Sections 8024, 8400, 8402, 8404, 8430, 9100 of the California Civil Code, so as to give a right of action to them or their assigns in any suit brought upon this bond. The said Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration or additions to the terms of the Agreement or to the Work to be performed thereunder or the specification accompanying the same shall in any way affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the Agreement or to the Work. IN WITNESS WHEREOF, we have hereto set our hands and seals this [number] day of [month], 2017. Principal By: Its: Surety Attorney- in- Fact EXHIBIT B-5 R896-000 - 3069579.3 EXHIBIT "C" DOCUMENTATION TO BE PROVIDED TO CITY BY DEVELOPER FOR DETERMINATION OF CONSTRUCTION COSTS To assist CITY in determining the Construction Costs for a completed DIF Improvement, DEVELOPER shall provide the following documents to CITY= 1. Plans, specifications and DEVELOPER's civil engineer's cost estimate; 2. List of bidders from whom bids were requested; 3. Construction schedules and progress reports; 4. Contracts, insurance certificates and change orders with each contractor or vendor; 5. Invoices received from all vendors; 6. Canceled checks for payments made to contractors and vendors (copy both front and back of canceled checks); 7. Spreadsheet showing total costs incurred in and related to the construction of each DIF Improvement and the check number for each item of cost and invoice; 8. Final lien releases from each contractor and vendor; and 9. Such further documentation as may be reasonably required by CITY to evidence the completion of construction and the payment of each item of cost and invoice. EXHIBIT C-1 8896-000 -- 3069579.3 EXHIBIT "D" REIMBURSEMENT AGREEMENT THIS REIMBURSEMENT AGREEMENT ("Agreement") is entered into this [day] day of [month], 2017, by and between the CITY OF SAN BERNARDINO, a California municipal corporation ("CITY"), and [Entity], a California [INSERT TYPE OF ENTITY - corporation, partnership, sole proprietorship or other legal entity], ("DEVELOPER"). CITY and DEVELOPER are sometimes hereinafter referred to individually as "Party" and collectively as "Parties." RECITALS WHEREAS, CITY and DEVELOPER are parties to an agreement dated [date], entitled "DIF Credit Agreement" (hereinafter "Credit Agreement"); WHEREAS, Sections 14.1 through 14.4 of the Credit Agreement provide that DEVELOPER is obligated to pay CITY the DIF Obligation, as defined therein, but shall receive credit to offset the DIF Obligation if DEVELOPER constructs and CITY accepts the DIF Improvements in accordance with the Credit Agreement; WHEREAS, Section 14.5 of the Credit Agreement provides that if the dollar amount of the DIF credit to which DEVELOPER is entitled under the Credit Agreement exceeds the dollar amount of the DIF Obligation, DEVELOPER may apply to CITY for a reimbursement agreement for the amount by which the DIF credit exceeds the DIF Obligation; WHEREAS, Section 14.5 additionally provides that a reimbursement agreement executed pursuant to the Credit Agreement (i) shall be executed on the form attached to the Credit Agreement, (ii) shall contain the terms and conditions set forth therein, (iii) shall be subject to all terms and conditions of the Credit Agreement, and (iv) shall be attached upon execution to the Credit Agreement and incorporated therein as a material part of the Credit Agreement as though fully set forth therein. NOW, THEREFORE, for the purposes set forth herein, and for good and valuable consideration, the adequacy of which is hereby acknowledged, the Parties hereby agree as follows: TERMS 1.0 Incorporation of Recitals. The Parties hereby affirm the facts set forth in the Recitals above and agree to the incorporation of the Recitals as though fully set forth herein. EXHIBIT D-1 R896-000 -- 3069579.3 2.0 Effectiveness. This Agreement shall not be effective unless and until the Credit Agreement is effective and in full force in accordance with its terms. 3.0 Definitions. Terms not otherwise expressly defined in this Agreement, shall have the meaning and intent set forth in the Credit Agreement. 4.0 Amount of DIF Reimbursement. Subject to the terms, conditions, and limitations set forth in this Agreement, the Parties hereby agree that DEVELOPER is entitled to receive the dollar amount by which the Actual DIF Credit exceeds the dollar amount of the DIF Obligation as determined pursuant to the Credit Agreement, section 3.27.150 of the San Bernardino Municipal Code, and CITY policies related to DIF credits and reimbursements ("DIF Reimbursement"). The DIF Reimbursement shall be subject to verification by CITY and DEVELOPER shall provide any and all documentation reasonably necessary for CITY to verify the amount of the DIF Reimbursement. The DIF Reimbursement shall be in an amount not exceeding [INSERT DOLLAR AMOUNT] ($) ("DIF Reimbursement Amount"). In no event shall the dollar amount of the DIF Reimbursement exceed the difference between the dollar amount of all credit applied to offset the DIF Obligation pursuant to Sections 15.2, 15.3, and 15.4 of the Credit Agreement, and one hundred (100%) of the construction costs of the DIF Improvement identified in the DIF Study in effect at the time of the issuance of a building permit for the Project. 5.1 Payment of DIF Reimbursement; Funding Contingency. The payment of the DIF Reimbursement Amount shall be subject to the following conditions: 5.2 DEVELOPER shall have no right to receive payment of the DIF Reimbursement unless and until (i) the DIF Improvements are completed and accepted by CITY in accordance with the Credit Agreement, and (ii) CITY has funds available and appropriated for payment of the DIF Reimbursement Amount. 5.3 DEVELOPER shall not be entitled to any interest or other cost adjustment for any delay between the time when the dollar amount of the DIF Reimbursement is determined and the time when payment of the DIF Reimbursement is made to DEVELOPER by CITY. The DIF Reimbursement shall be due and payable within ten (10) days following (a) execution of this Agreement and (b) satisfaction of the conditions in Section 5.2. 6.0 Affirmation of Credit Agreement. CITY and DEVELOPER represent and warrant to each other that there have been no written or oral modifications or amendments of the Credit Agreement, except by this Agreement. CITY and EXHIBIT D-2 R896-000 -- 3069579.3 DEVELOPER ratify and reaffirm each and every one of their respective rights and obligations arising under the Credit Agreement. CITY and DEVELOPER represent and warrant that the Credit Agreement is currently an effective, valid, and binding obligation. 7.0 Incorporation Into Credit Agreement. Upon execution of this Agreement, an executed original of this Agreement shall be attached as Exhibit "D" to the Credit Agreement and shall be incorporated therein as a material part of the Credit Agreement as though fully set forth therein. 8.0 Terms of Credit Agreement Controlling. Each Party hereby affirms that all provisions of the Credit Agreement are in full force and effect and shall govern the actions of the Parties under this Agreement as though fully set forth herein and made specifically applicable hereto, including without limitation, the following sections of the Credit Agreement: Sections 10.0 through 10.3, Section 12.0, Sections 13.0 through 13.7, and Sections 14.0 through 14.5. [Signature Page Follows] EXHIBIT D-3 R896-000 -- 30695793 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the day and year first above written. CITY OF SAN BERNARDINO DEVELOPER Andrea M. Miller, City Manager Approved as to Legal Form: Gary D. Saenz, City Attorney LON ATTEST Georgeann Hanna, CMC, City Clerk: Ra By: Its: EXHIBIT D-4 R996-000 -- 3069579.3