HomeMy WebLinkAboutRCR BRISTOL, LLCINSURANCE NOT REQUIRED
WORK MAY PROCEED
N-2022-351
o CLERK OF THE COUNCIL
REIMBURSEMENT AND INDEMNIFICATION AGREEMENT
DWFE: BETWEEN THE CITY OF SANTA ANA AND RCR
BRISTOL, LLC FOR THE PAYMENT OF FEES AND
z COSTS RELATED TO CONTRACT ENVIRONMENTAL
AND/OR LEGAL SERVICES FOR THE RELATED
6:��AI,��� BRISTOL SPECIFIC PLAN PROJECT AT 3600 SOUTH
�*l BRISTOL STREET IN SANTA ANA
This Reimbursement and Indemnification Agreement ("Agreement") is entered
into as of ,t�i //-Ay , 2022, by and between the CITY OF SANTA ANA, a
charter city and municipal corporation, organized and existing under the Constitution
and laws of the State of California ("City"), and RCR Bristol, LLC ("Developer"), who
agree as follows:
1. Recitals. This Agreement is made with reference to the following facts
and circumstances:
A. Developer is seeking to obtain entitlements for certain real property
described as the Metro Town Square shopping center located at 3600 South Bristol
Street, in the City of Santa Ana ("Property") and described in further detail in the
attached Legal Description (Exhibit A).
B. Developer has submitted an Amendment Application (zone change) to
establish a Specific Plan (SP) to develop the Property with new commercial, new
residential, new hotel, and new senior continuum care projects (the "Project'). The
discretionary applications also consist of a Development Agreement (DA), Amendment
Application (AA) and Tentative Tract Map (TTM). Collectively, the SP, DA, AA and TTM
are referred to herein as the "Proposed Entitlements."
C. Pursuant to Section 15162 of the California Environmental Quality Act
(CEQA) Guidelines, the Proposed Entitlements require preparation of a Subsequent
Environmental Impact Report (SEIR).
D. City does not have sufficient personnel to prepare and review the
Proposed Entitlements, SEIR and other related studies, reports and analyses for the
Project that may be needed. In order for City to process the Project, City is in need of
contracting with an environmental consultant and external legal counsel for specialized
services. The work to be performed by such persons and firms in processing the
Project is collectively referred to herein as the "Services."
E. City believes it is in the public interest for Developer to pay for such
Services.
F. Developer desires to move forward with the processing of its Project
subject to the reimbursement obligations set forth herein.
2• Aareement to Pay for Services.
Developer agrees to pay for all reasonable professional costs and expenses
related to the Services as provided for in this Agreement.
3. Legal and/or Environmental Consultant Services.
A. For the purpose of conducting the environmental analysis associated with
the SEIR, the Environmental Consultant and their subcontractors will review technical
analysis prepared by the applicant, which include any studies deemed necessary by the
City and its Environmental Consultant to properly conduct the environmental analysis.
B. The Developer has submitted a draft Specific Plan and intends to submit a
tentative tract map, as well as technical studies that have yet to be specified.
C. The City has received a proposal to provide specialized legal services
from Best Best & Krieger LLP in the amount of $365 per hour. A 15-percent
administrative overhead fee will be charged to Developer for oversight of Best Best &
Krieger LLP and the Environmental Consultant.
D. The City Attorney's Office will provide Services in connection with this
Project, on an hourly basis. The City Attorney's Office hourly billing rate for
reimbursable services is Two Hundred Twenty -Five Dollars ($225.00) per hour and is
not subject to a 15-percent administrative overhead fee. Upon receipt of Developer's
written approval, City may also utilize additional external consultants, including, but not
limited to, attorneys, planning professionals and engineers, as necessary to complete
the review. Said consultants will be billed at their agreed upon rates with the City.
E. Developer has provided the City the amount of $13,000 to provide initial
funding for the Services to be provided by Best Best & Krieger LLP, the Environmental
Consultant, Planning and Building Agency, and City Attorney's Office. This amount
shall be applied to pay invoices received from Best Best & Krieger LLP the
Environmental Consultant, the Planning and Building Agency, and City Attorney's Office
for their Services.
F. City shall provide Developer with a monthly statement of draws against
the deposit described in Section 3.E., accompanied by invoices, time records, or other
reasonable back-up therefor. None of the back-up documents shall be redacted. City
agrees that all reimbursable expenses subject to this Agreement shall be reasonable
and customary.
G. It is understood and agreed that if any consultant begins work on the
Project prior to execution and delivery of this Agreement by all parties, the fees incurred
in connection with the Project prior to such execution and delivery will be subject to
reimbursement pursuant to this Agreement upon execution and delivery of this
Agreement by all parties and the deposit of funds by Developer pursuant to Section 3.E.
4. De osit.
A. At any time that City determines in good faith that the sums then held in any
deposits made pursuant to Sections 3.E above are inadequate to pay for the projected
Services to be paid from such deposit over the succeeding two (2) month period,
Developer shall replenish the relevant deposit with the amount requested by City in
writing, which amount shall not exceed Thirteen Thousand Dollars ($13,000) for any
particular replenishment, within twenty (20) Business Days of such written request,
B. Should any deposit not be replenished within twenty (20) Business Days of
Developer's receipt of City's written request, City may direct that all Services to be paid
from the deposit applicable to such Services be halted until such time as such applicable
deposit is replenished.
C. All deposits will be placed in a non -interest bearing trust account.
Developer understands and agrees that City will not pay interest to Developer on the
deposits, and Developer will not seek interest payments from City.
D. No later than forty (40) days after the earliest to occur of (1) final action is
taken by City on the Project, (2) Developer notifies the City in writing of its withdrawal of
the Project applications, or (3) the Project is otherwise abandoned by Developer, City
will provide Developer with a final accounting of costs and expenses, accompanied by
invoices, time records or other reasonable back-up therefor, which accounting the
Developer agrees will be conclusive. Should the total reimbursement amount required
for any Services be less than the total amount deposited by Developer with respect to
such Services, City will refund any remaining deposit amount relating to such Services
to Developer within forty-five (45) days after determining the final reimbursement
amount for such Services.
E. In the event Developer fails or refuses to make any of the deposits
required herein, Developer shall be liable to City for the amount of all fees charged to
the City for Services actually provided which exceed the amount of the deposit paid by
Developer for such Services, and City shall have the right to pursue a breach of contract
action, or any other pertinent legal action available to the City, against the Developer.
Further, the prevailing party in any dispute and/or litigation necessary to enforce or
interpret this Agreement shall be entitled to seek and collect its costs and reasonable
attorney's fees from the other party.
5. Other Costs. Developer acknowledges that the cost of the Services does not
include all application, permitting, inspection, or other fees which may be charged by
City in connection with the Project. To the extent the fees ordinarily charged by City for
projects similar to the Project relate to costs that are not reimbursed under this
Agreement, such fees shall be separately paid in accordance with the relevant City fee
schedule.
6. No Guarantee of Approval. Developer acknowledges that its payments and
deposits described herein do not mean that the City will approve the Project nor that
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City staff will make a recommendation in favor of the Project. Even if the Project is not
approved, Developer shall remain liable for all costs for Services actually provided
concerning the Project.
7. Independence of Consultants.
A. Unless otherwise agreed to in writing by the City, during the Term of this
Agreement, Developer will not directly or indirectly enter or propose to enter into any
financial or business relationship with any of City's consultants that are working on the
Project.
B. Developer hereby acknowledges and agrees as follows:
i. City has sole discretion to select which of its employees or
independent contractors are assigned to work on Developer's application;
ii. City has sole discretion to determine which persons City will hire as
consultants to work on Developer's application.
iii. As between City and Developer, City has sole discretion to direct
the work and evaluate the performance of the consultants whom the City hires to work
on Developer's Project and/or application. City retains the right to terminate or replace
at any time any consultant who is assigned to work on Developer's Project and/or
application.
iv. Except as provided in this Agreement, City has sole discretion to
determine the amount of compensation paid to consultants hired by City to work on
Developer's Project and/or application.
V. City, not Developer, shall pay consultants hired or assigned by City
to work on Developer's Project and/or application from a City account under the
exclusive control of City, which is to be funded by Developer as set forth in this
Agreement.
vi. Except for those disclosures required by law, including, without
limitation, the Public Records Act, all conversations, notes, memoranda,
correspondence and other forms of communication by and between the City and its
consultants shall be, to the extent permissible by law, privileged and confidential and
not subject to disclosure to the Developer.
vii. Except for those disclosures required by law, including, without
limitation, the Public Records Act, Developer shall have no claim to, nor shall Developer
assert any right in any reports, correspondence, plans, maps, drawings, news releases
or any and all other documents or work product produced by the consultants.
C. City and Developer hereby acknowledge and agree that processing of
Developer's application is not contingent on the hiring of any specific consultant.
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D. City and Developer hereby acknowledge and agree that Developer's duty
to reimburse City is not contingent upon the approval or disapproval of the proposed
Project, or upon the result of any action of the City.
E. Neither Developer nor its officers, employees or agents, shall
communicate with the Environmental Consultant, or any of the City's consultants, during
the term of this Agreement without prior approval of the City, unless such
communication is initiated by the Environmental Consultant, or any of the City's
consultants, to obtain information about the Project which is needed to prepare the
Environmental Document.
8. Term and Termination. Absent a formal withdrawal of the Project
application(s), Developer shall not be entitled to terminate this Agreement. If Developer
does formally withdraw the Project application(s), Developer shall remain liable for all
costs for the Services incurred through the date of said withdrawal (subject to the terms
of the Agreement). The Term of this Agreement shall commence upon the execution
and delivery of this Agreement by all parties hereto and shall terminate on the earliest to
occur of: (a) the City taking final action on the Project; or (b) Developer formally
withdrawing its Project applications. The provisions of Sections 6 through 9 and 11
through 23 (inclusive) shall survive termination of this Agreement.
9• Developer Default.
A. Should Developer fail to perform any of its obligations under this
Agreement, then City may, at its option, pursue any or all of the remedies available to it
under this Agreement, at law or in equity.
B. Without limiting any other remedy which may be available to it, if
Developer fails to perform any of its obligations under this Agreement, City may cease
performing its obligations under this Agreement.
C. If any amounts remain owing to City for Services actually performed prior
to termination of this Agreement, City may bring an action to recover all costs and
expenses incurred by the City in completing such Services, together with interest
thereon from the date incurred at the rate of ten percent (10%) per annum, or at the
maximum legal rate, whichever is greater.
D. City may refuse to take the Project forward for consideration of
discretionary actions unless and until all fees are paid. If any amounts remain owing to
City pursuant to this Agreement for Services actually performed prior to termination of
this Agreement, City may withhold consideration of discretionary actions, permits and/or
certificates of occupancy until all such amounts are paid.
10. Indemnification. Developer further agrees that to the fullest extent
permitted by law, the Developer shall defend, indemnify, protect, and hold harmless, the
City of Santa Ana and its constituent public agency members, officers, employees,
volunteers, attorneys, consultants and agents (in the aggregate, the "City Indemnitees")
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from any and all liability, demand, claim, action, or proceeding, whether actual, alleged,
or threatened, including by way of example but not exclusion, proceedings of an
administrative or regulatory nature and proceedings that may be associated with
alternative dispute resolution (an "Indemnified Claim") brought by third parties against
any City Indemnities (including any advisory agency of the City), to attack, set aside,
void, annul, or challenge the validity of any approvals granted for the Project, the
Environmental Document concerning the Project, or seeking damages which may arise
from the Environmental Document concerning the Project, or this Agreement.
In any defense of any City Indemnitees, City shall have the absolute right to
unilaterally select the legal counsel for such City Indemnitees (with the intention of using
one law firm to defend all City Indemnitees unless conflicts of interest preclude such
joint representation), and any experts or consultants deemed necessary by City in an
exercise of City's sole discretion. City shall work cooperatively with Developer's
attorney to avoid duplication of efforts, Developer shall reimburse City for one hundred
percent (100%) of the City's actual fees and costs in connection with the Litigation
("Fees and Costs"), Such Fees and Costs shall include, but not be limited to, all
reasonable court costs and attorneys' fees, including other City staff time, consultants or
experts, spent in regard to defense of an Indemnified Claim.
City shall render notice to the Developer of the existence of the Indemnified
Claim (a "Notice") and Developer shall reimburse City for one hundred percent (100%)
of the City's actual Fees and Costs. City shall cooperate fully with Developer in the
defense of any Indemnified Claim. In any Notice, City shall estimate the cost of its
defense, which shall include, but not be limited to, actual attorney fees, court costs,
expert witnesses and consultant fees, and all other costs that may arise out of, or be
incurred by City in the defense of an Indemnified Claim. Upon such Notice, Developer
shall promptly deposit funds equal to the first three (3) months of the Estimated Cost
with the City and shall make additional deposits as and when required to fund the
further costs of defending the City Indemnitees for such Indemnified Claim. Failure of
Developer to deposit such funds shall be deemed a material breach of this Agreement.
City shall refund, without interest, any unused portion of the deposits once litigation is
finally concluded or a dispute is resolved regarding an Indemnified Claim.
Developer's obligation under this Section 10 shall terminate upon the expiration
of all statutes of limitation challenging the City's approval of the Project if no litigation is
filed concerning the Project's Environmental Document or this agreement.
11. Compliance with Law. Developer will, at its sole cost and expense,
comply with all of the requirements of all federal, state, and local laws now in force, or
which may hereafter be in force, pertaining to this Agreement.
12. Waiver of Breach. Any express or implied waiver of a breach of any term
of this Agreement will not constitute a waiver of any further breach of the same or any
other term of this Agreement.
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13. Notices. Except as otherwise expressly provided by law, all notices or
other communications required or permitted by this Agreement or by law to be served
on or given to either party to this Agreement by the other party shall be in writing and
will be deemed received on: (i) the day of delivery if delivered by hand, e-mail (with
confirmation of receiving party) and fax (both email and fax required for notices
delivered by email or fax), or overnight courier service, during regular business hours; or
(ii) on the third business day following deposit, with postage prepaid, in the United
States Postal Service and addressed to the contracting parties. Name, address,
telephone numbers, and e-mail addresses of the Parties are as follows:
City: City of Santa Ana
Attention: Minh Thai, Planning and Building Agency Executive
Director
20 Civic Center Plaza (M-20)
Santa Ana, CA 92701
Telephone: (714) 667-2706
Fax: (714) 973-1461
E-mail: MThaina santa-ana org
A Copy to: Sonia Carvalho
City Attorney, City of Santa Ana
20 Civic Center Plaza (M-29)
Santa Ana, CA 92701
Telephone: (714) 647-5203
Fax: (714) 647-6549
E-mail: SCarvalho@santa-ana.org
Developer: RCR Bristol, LLC
C/O Steven Oh
18201 Von Karman Avenue, Suite 900
Irvine, CA 92612
Telephone: (949) 293-8499
Fax: N/A
E-mail: Steven.Oh@related.com
A copy to: Sean Matsler, Esq.
Cox, Castle & Nicholson LLP
3121 Michelson Drive, Suite 200
Irvine, CA 92612
Telephone; 949,260.4600
Fax: N/A
E-mail: SMatsler@coxcastle.com
Either party may change its address for the purpose of this Section by giving written
notice of the change to the other party.
14. Interpretation. This Agreement is deemed to have been prepared by all of
the parties hereto, and any uncertainty or ambiguity herein shall not be interpreted
against the drafter, but rather, if such ambiguity or uncertainty exists, shall be
interpreted according to the applicable rules of interpretation of contracts under the law
of the State of California.
15. Business Day. For purposes of this Agreement, "Business Day" means any
day other than a Saturday, Sunday, a federal holiday, or a day on which City Hall for the
City of Santa Ana is closed for the conduct of regular business.
16. Successors, This Agreement shall be binding on and inure to the benefit of
the successors and assigns of the respective parties. hereto. However, this Agreement
shall not be assigned by Developer in whole or in part without the prior written consent of
City.
17, Governing Law. This Agreement has been made in and will be construed
in accordance with the laws of the State of California, and exclusive venue for any
action involving or arising out of this Agreement will be in Orange County,
18. Attorneys' Fees If a Party hereto files any action or brings any action or
proceeding against another Party arising out of this Agreement, then the prevailing Party
shall be entitled to recover as an element of its costs of suit, and not as damages, its
reasonable attorneys' foes as fixed by the court, in such action or proceeding or in a
separate action or proceeding brought to recover such attorneys' fees. For the purposes
hereof the words "reasonable attorneys' fees" mean and include, in the case of the City,
salaries (or fees) and expenses of the lawyers employed by the City (allocated on an
hourly basis) who may provide legal services in connection with the representation of the
City in any such matter.
19. Severability. Should any provision of this Agreement be held by a court of
competent jurisdiction to be either invalid or unenforceable, the remaining provisions of
this Agreement will remain in effect, unimpaired by the holding.
20. Integration. This instrument constitutes the sole agreement between City
and Developer respecting the above matters, and correctly sets forth the obligations of
City and Developer. Any Agreements or representations by City to Developer not
expressly set forth in this instrument are void.
21. Construction. The language of each part of this Agreement will be
construed simply and according to its fair meaning, and this Agreement will never be
construed either for or against either party, whether or not that party drafted all or a
portion hereof.
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22. No Prior Agreements and No Oral Modifications. This Agreement
represents the entire understanding of City and Developer with respect to the subject
matter hereof and supersedes all other prior or contemporaneous written or oral
agreements pertaining to the subject matter of this Agreement. This Agreement may be
modified, only in writing signed by the authorized representatives of City and Developer.
23. No Partnership or Joint Entity. This Agreement is not intended to and
does not create a partnership or any other form of single or joint entity or any sort
comprised of the Parties and/or their attorneys.
24. Authority/Modification Each party represents and warrants that all
necessary action has been taken by such party to authorize the undersigned to execute
this Agreement on behalf of such party and to engage in the actions of such party
described herein. This Agreement may be modified solely by written amendment signed
by both City and Developer. City's City Manager, or designee, may execute any such
amendment on behalf of City.
25. Counterparts. This Agreement may be executed in any number of
counterparts, each of which will be an original, but all of which together will constitute
one instrument executed on the same date.
{Signatures on following page}
E
N-2022-351
IN WITNESS WHEREOF the parties hereto have executed this Agreement as of the
day and year first hereinabove written.
CITY OF SANTA ANA
Kristin6 R
idge, City Manager
ATTEST:
By: / y
Xr'Clerk of the Council
APPROVED AS TO FORM:
Sonia R. Carvalho, City Attorney
By. -
John M. Funk
Chief Assistant City Attorney
DEVELOPER
By: RCR Bristol, LLC
Name:_ &EVC-4 nH au�
Title:
Date: it,
Signature:
��
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Order No. 00606073-988-CIO-DN1
1*40311/,
LEGAL DESCRIPTION
THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF SANTA ANA, IN THE COUNTY
OF ORANGE, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS:
PARCEL 1:
PARCELS 1 AND 2, IN THE CITY OF SANTA ANA, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS
SHOWN ON A MAP FILED IN BOOK 40, PAGES 5 AND 6 OF PARCEL MAPS, IN THE OFFICE OF THE
COUNTY RECORDER OF SAID COUNTY, CALIFORNIA.
EXCEPTING FROM SAID PARCEL 2 THAT PORTION THEREOF CONVEYED TO THE CITY OF SANTA ANA
BY DEED RECORDED MAY 17, 1972 IN BOOK 10130, PAGE 417, OF OFFICIAL RECORDS, DESCRIBED AS
FOLLOWS:
BEGINNING AT THE WESTERLY TERMINUS OF THAT CERTAIN COURSE IN THE NORTHERLY
BOUNDARY OF PARCEL 2 OF SAID MAP THAT READS NORTH 890 03' 58" WEST 74.47 FEET; THENCE
CONTINUING ALONG SAID NORTHERLY BOUNDARY NORTH 86' 12' 27" WEST 75.11 FEET TO A POINT
ON A NON -TANGENT CURVE CONCAVE SOUTHEASTERLY HAVING A RADIUS OF 30.00 FEET, A RADIAL
AT SAID POINT BEARS NORTH 390 01' 25" WEST; THENCE CONTINUING ALONG SAID NORTHERLY
BOUNDARY SOUTHWESTERLY 5.30 FEET ALONG THE ARC OF SAID CURVE THROUGH A. CENTRAL
ANGLE OF 10' 07' 33" TO A POINT ON A LINE PARALLEL WITH AND 59.00 FEET SOUTHERLY FROM THE
CENTERLINE OF MAC ARTHUR BOULEVARD AS SHOWN ON SAID MAP, A RADIAL AT SAID POINT BEARS
NORTH 490 08' S8" WEST; THENCE LEAVING SAID CURVE ALONG SAID PARALLEL LINE SOUTH 89' 03'
58" EAST A DISTANCE OF 78.76 FEET TO THE POINT OF BEGINNING.
PARCEL2:
PARCELS 1, 2, 3 AND 4 IN THE CITY OF SANTA ANA, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS
SHOWN ON A MAP FILED IN BOOK 79, PAGES 19 AND 20 OF PARCEL MAPS, IN THE OFFICE OF THE
COUNTY RECORDER OF SAID COUNTY.
APN(s):412-131-12, 412-131-13, 412-131-14, 412-131-16, 412-131-17, 412-131-22, 412-131-24, 412-131-25
AND 412-131-26
This page is only a part of a 2016 ALTA* Commitment for Title Insurance issued by Chicago Title Insurance Company. This Commitment is
not valid without the Notice; the Commitment to Issue Policy, the Commitment Conditions; Schedule A; Schedule B, Part I —Requirements;
and Schedule B, Part II —Exceptions; and a counter -signature by the Company or its issuing agent that may be in electronic form.
72C165 Commitment for Title Insure
Copyright American Land Title Association. All rights reserved. The use of this Form is restricted to ALTA licensees and ALTA
members in good standing as of the date of use. All other uses are prohibited. Reprinted under license from the American Land 1ANO T'T"
Title Association. "`�""