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HomeMy WebLinkAbout11B - MACARTHUR PLACE AND GRAND PLANORDINANCE NO. NS-XX)CX AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AMENDING THE MACARTHUR PLACE SOUTH MIXED USE SPECIFIC DEVELOPMENT DISTRICT (SD-76) (ZOA NO. 2009-04) THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES ORDAIN AS FOLLOWS: Section 1. The City Council of the City of Santa Ana does hereby find, determine and declare as follows: A. The Applicant is requesting approval of an Addendum to the Final Environmental Impact Report No. 2004-02 and approve the mitigation monitoring program; Zoning Ordinance Amendment No. 2009-04; an Amendment to the Development Agreement No. 2005-02; Conditional Use Permit No. 2009-08 and Variance No. 2. 009-02 to allow a hotel at 6 East MacArthur Place. B. On April 13, 2009, the Planning Commission Chairperson declared an impasse after a series of motions failed to achieve a majority vote. The Applicant has requested the items be denied by the Planning Commission to allow them to move forward to the City Council for a final decision. The items before the Planning Commission were as follows: 1. Adopt a resolution approving the Addendum to the Final Environmental Impact Report No. 2004-02 and approve the mitigation monitoring program. 2. Adopt an ordinance approving Zoning Ordinance Amendment No. 2009-04. 3. Adopt an ordinance approving the Amendment to Development Agreement No. 2005-02. 4. Adopt a resolution approving Conditional Use Permit No. 2009-08 as conditioned. 5. Adopt a resolution approving Variance No. 2009-02 as conditioned. C. On May 4, 2009 the City Council of the City of Santa Ana held a duly noticed public hearing and at that time considered all testimony, written and oral. D. Zoning Ordinance Amendment No. 2009-04 has been filed with the City of Santa Ana to amend the MacArthur Place South Mixed Use Specific Development District (SD-76) to allow hotels as a conditionally permitted use in Zone 2. 11 B-1 1. Amendment Application No. 2009-04 is consistent with the General Plan, including but not limited to its goals and policies to: a. Promote the balance of land uses to address basic community needs. Land Use Element Goal No. 1.0. b. Promote land uses which enhance the City's economic and fiscal viability. Land Use Element Goal No. 2.0. c. Support developments that create a business environment that is safe and attractive. Land Use Element Policy No. 2.8. d. Enhance development sites and districts which are unique community assets that enhance the quality of life. Land Use Element Goal No. 4.0. 2. The City Council has weighed and balanced the general plan's policies and has determined that based upon this balancing that the MacArthur Place South project is consistent with the purpose of the general plan. 3. The City Council also adopts as findings all facts presented in the Requests for Council Action dated May 4, 2009 accompanying this matter. 4. For these reasons, and each of them, Zoning Ordinance Amendment No. 2009-04 is hereby found and determined to be consistent with the General Plan of the City of Santa Ana and otherwise justified by the public necessity, convenience, and general welfare. E. -This resolution incorporates by reference, as though fully set forth herein, the Final Environmental Impact Report No. 2004-02, the Mitigation Monitoring Program, and the Statement of Overriding Considerations and ordinance and resolutions which came before the City Council on June 20, 2005; and the Addendum to the Final Environmental Impact Report No. 2004-02 and the mitigation monitoring program which was adopted by Resolution by the City Council on May 4, 2009 for this project. Section 2. MacArthur Place South Mixed Use Specific Development District (SD-76) is amended as set forth in Exhibit "A", attached hereto and incorporated as though fully set forth herein. All provisions of the Specific Development District which are repeated herein are repeated solely in order to comply with the provisions of section 418 of the Charter of the City of Santa Ana. Any such restatement of existing provisions is not intended, nor shall it be interpreted, as constituting a new action or decision of the City Council, but rather such provisions are repeated for tracking purposes only in conformance with the Charter. Section 3. If any section, subsection, sentence, clause, phrase or portion of this ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of Santa Ana hereby declares that 11 B-2 it would have adopted this ordinance and each section, subsection, sentence, clause, phrase or portion thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional ADOPTED this day of May, 2009. Miguel A. Pulido Mayor APPROVED AS TO FORM: Joseph W. Fletcher City Attomey By: Kylee O. Otto Assistant City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, PATRICIA E. HEALY, Clerk of the attached Ordinance No. NS- to Council of the City of Santa Ana on _ Council, do hereby attest to and certify the be the original ordinance adopted by the City and that said ordinance was 11 B-3 published in accordance with the Charter of the City of Santa Ana. Date: Clerk of the Council City of Santa Ana 11 B-4 MacArthur Place South Mixed Use Specific Development District (SD-76) TABLE OF CONTENTS SECTION 1. Applicability of Ordinance SECTION 2. Purpose SECTION 3. Objectives and Policies SECTION 4. Permitted Improvements SECTION 5. Permitted Uses SECTION 6. Conditionally Permitted Uses SECTION 7. Development Standards 1. Maximum Density 2. Minimum Parcel Size 3. Overall Project a. General Requirements b. Building Setbacks c. Building Height d. Screening 4. Parking a. General Requirements b. Residential Components c. Other Uses 5. Building Elevations SECTION 8. Miscellaneous Standards 1. Landscaping 2. Signage 3. Common Areas 4. Public Art EXHIBIT A 11 B-5 MacArthur Place South Mixed Use Specific Development District (SD-76) SECTION 1 APPLICABILITY OF ORDINANCE The specific development zoning district, as authorized by Chapter 41, Division 26, of the Santa Ana Municipal Code, is specifically subject to the regulations contained in this ordinance for the express purpose of establishing use district regulations. All other applicable chapters, articles and sections of the Santa Ana Municipal Code shall apply unless expressly waived or superseded by this ordinance. Use district regulations established in Chapter 41, Article III, of the Santa Ana Municipal Code for zoning districts other than the SD zoning district may be incorporated herein by reference. The boundaries of the MacArthur Place South MacArthur Place SouthMixed Use Specific Development District shall be defined pursuant to Exhibit A (attached hereto and incorporated as though fully set forth herein). MacArthur Place South Mixed Use Specific Development District shall have two zones, Zone 1 and Zone 2, as depicted in Exhibit A. SECTION 2 PURPOSE The Specific Development No. 76 (SD-76) use district regulations are hereby established for the express purpose of protecting the health, safety and general welfare of the City by encouraging the use of innovative planning concepts and principles, promoting and enhancing the value of properties, and encouraging orderly development. This district is intended to provide standards for areas located in a District Center and adjacent to high capacity arterial streets. SECTION 3 OBJECTIVES AND POLICIES The MacArthur Place South Mixed Use Specific Development District is located within the southeastern area of the City. The MacArthur Place South Mixed Use Specific Development District encompasses a mixture of office, restaurant, retail, hotel and residential land uses. The following site development policies are designed to encourage greater convenience, efficiency, excellence of design and visual appeal than is typically achieved with usual residential and commercial development. The policies of the MacArthur Place South Mixed Use Specific Development District include the following: • Uses shall be integrated within the overall MacArthur Place South campus in terms of architecture, pedestrian orientation and circulation, vehicular circulation, landscape and urban design. 11 B-6 • Internal circulation shall separate customer traffic from loading, delivering, and pedestrian traffic. • Access to and from the adjacent arterial streets and highways shall be limited, in order to ensure efficient and safe vehicular circulation. • Adequate open spaces and landscaping shall be provided for all uses and shall be integrated with building and parking areas. • Awell-planned system of pedestrian linkages, enhanced with water features, seating areas, and other pedestrian amenities, shall be developed for convenient access between all uses developed on the site. • Walkways, parking and open spaces shall be provided with adequate lighting for safe and convenient nighttime use. SECTION 4 PERMITTED USES IN ZONE 1 The permitted land uses within Zone 1 shall be as follows: 1. Professional, business and administrative offices. 2. Museums, libraries and galleries. 3. Retail and Service Uses. 4. Restaurants, cafes, and eating establishments, other than those specified in section 41-365.5. 5. Coffee houses, tea houses, and bakeries. SECTION 5 CONDITIONALLY PERMITTED USES IN ZONE 1 The following uses are permitted within Zone 1 upon the approval of a conditional use permit in accordance with the Santa Ana Municipal Code: 1. Theaters. 2. Hotels. 3. Child care facilities. 4. Nightclubs, bars and indoor entertainment uses whether freestanding or part of another permitted or conditionally permitted use. Adult entertainment businesses shall not be permitted within Zone 1. 5. Establishments selling or serving alcoholic beverages. 11 B-7 6. Banquet facilities, subject to development standards set forth in section 41-199.1. 7. Uses open between the hours of 12:00 midnight and 5:00 a.m. 8. Health Clubs. SECTION 6 PERMITTED USES IN ZONE 2 The permitted land uses within Zone 2 shall be as follows: Professional, business and administrative offices. 2. Museums, libraries and galleries. SECTION 7 CONDITIONALLY PERMITTED USES IN ZONE 2 The following uses are permitted within Zone 2 upon the approval of a conditional use permit in accordance with the Santa Ana Municipal Code: Nightclubs, bars and indoor entertainment uses whether freestanding or part of another permitted or conditionally permitted use. Adult entertainment businesses shall not be permitted within Zone 2. 2. Establishments selling or serving alcoholic beverages. 3. Banquet facilities, subject to development standards set forth in section 41-199.1. 4. Uses open between the hours of 12:00 midnight and 5:00 a.m. 5. Multi-family residential uses. 6. Live/work communities in compliance with the following standards: a. Residential use is permitted only in combination with individual work space in a manner which provides an integrated working and living environment. b. Alive/work unit shall be at least nine hundred (900) square feet in size. c. The residential component of a live/work unit shall meet the following standards: i. It shall have access to separate bathroom facilities, including a water closet, a wash basin, and a bathtub or shower. ii. It shall have separate kitchen facilities including a kitchen sink, cooking appliances and refrigerator. All such 11 B-8 facilities shall have a clear working space of at least thirty (30) inches in front. iii. It shall comply with all Housing Code requirements as modified by section 8-2700 of this Code. iv. In-unit laundry facilities shall be required. v. No residential component shall be permitted on the ground floor of the live/work unit. 7. Outdoor Farmers Markets. 8. Full service cafes and restaurants, which may include incidental take-0ut service. Full service cafes and restaurants shall be limited to those that provide sit down dining areas and exclusive table service for ordering and delivering meals and beverages. 9. Coffee houses, tea houses, and bakeries. 10. Health Clubs. 11. Retail and service uses. 12. Hotels SECTION 8 DEVELOPMENT STANDARDS IN ZONE 2 The following general development standards are applicable to this project: 1. Maximum Development Intensity Consistent with the General Plan, the maximum residential density allowed for the site shall be 90 dwelling units per acre within SD-76. The maximum floor area ratio for other permitted uses shall be 1.0. 2. Minimum Parcel Size The minimum parcel size shall be 2.5 acres. 3. Overall Project The development plans and material samples shall be submitted to and approved by the Planning Commission pursuant to Section 41- 593.4 prior to issuance of any building permits. a. Building Setbacks Setbacks are established to enhance pedestrian space throughout the district, create compatible relationships between existing and future building elevations, and recognize opportunities to create new open spaces such as plazas, pedestrian 11 B-9 ways and landscaped areas. Major setback conditions are discussed below by street: i. Main Street: All projects shall maintain a building setback of 15 feet. Entry steps to residential units may encroach into this setback area in order to provide a transition between public and private spaces. ii. MacArthur Boulevard: All residential projects shall maintain a building setback of 15 feet. Entry steps to residential units may encroach into this setback area in order to provide a transition between public and private spaces. iii. Sandpointe Avenue: All projects shall maintain a building setback of 10 feet. Entry steps to residential units may encroach into this setback area in order to provide a transition between public and private spaces. iv. Hutton Center Drive: All projects shall maintain a building setback of 10 feet. b. Building Height The building height of a project shall not be approved where the Federal Aviation Administration (FAA) has determined such height to be a hazard to air navigation. c. Screening All appurtenances shall be located outside any required setback and shall be screened from view. 4. Parking a. General Requirements i. Parking shall not encroach into required setbacks at grade. Parking structures below residential buildings shall not encroach within required setbacks along Main Street or MacArthur Boulevard. 11 B-10 ii. Parking structures that incorporate trash enclosures shall maintain sufficient vertical clearances to facilitate trash truck access. iii. Glare from the parking structure lighting shall not be visible from any public right-of-way. iv. The ceiling of all parking levels shall be painted white and be maintained to improve illumination and enhance safety within the parking structure. v. The parking structure shall comply with the Santa Ana Municipal Code sections pertaining to the Police Department's Security requirements, including parking lot lighting levels. vi. The parking structure shall comply with the Santa Ana Police Department's parking structure design guidelines. b. All uses shall comply with the parking provisions outlined in Chapter 41 of the Santa Ana Municipal Code (SAMC). 5. Landscaping Prior to issuance of any building permit, a detailed Landscape Plan shall be submitted to and be approved by the Planning Commission. 6. Si na e a. All signage shall comply with the Santa Ana Municipal Code. b. Prior to issuance of any sign permits or certificates of occupancy for any building or portion thereof, a comprehensive sign program for the entire site, including directional signs and graphics for the parking structure, shall be submitted to and be approved by the Planning Commission. 7. Public Areas Prior to issuance of any building permits, a detailed plan of the public areas shall be submitted to and approved by the Planning Commission. a. Exterior kiosks, carts or other temporary outdoor uses are not allowed unless specifically submitted to and approved by the Planning Commission. 11 B-11 b. The public areas shall incorporate seating, benches, street furniture and landscaping to provide visual interest and additional amenities within the public areas. All seating, benches, street furniture surfaces, pedestrian-level walls and similar amenities shall be made of a durable material such as concrete or painted iron and be designed to minimize effects from vandalism, skateboarding and weather and incorporate graffiti resistant coatings. c. Pedestrian amenities shall be provided such as lighting, planters, drinking fountains, unit pavers, and bicycle racks. d. Trash receptacles should be located in high-activity areas, such as plazas and other public open spaces. The style shall be compatible with other public areas' furnishings. e. The property shall be maintained free of graffiti. All graffiti shall be removed within 48-hours of occurrence. 11 B-12 ORDINANCE NO. NS - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING AN AMENDMENT TO THE DEVELOPMENT AGREEMENT BETWEEN THE CITY OF SANTA ANA AND GRAND PLAN 2, LLC THE CITY COUNCIL OF THE CITY OF SANTA ANA ORDAINS AS FOLLOWS: SECTION 1: The City Council hereby finds, determines and declares as follows: A. The City is authorized pursuant to Government Code Sections 65864 through 65869.5 to enter into development agreements with persons having legal or equitable interests in real property for the purpose of establishing certainty for both City and owner in the development process. B. The City enters into this Amendment to Development Agreement pursuant to the provisions of the Government Code and applicable City policies. C. The Planning Commission has, following a duly noticed public hearing, on April 13, 2009, tied 3-3 on whether to recommend approval of this Amendment to Development Agreement. D. Entering into this Amendment to Development Agreement would provide the City with extraordinary and significant benefits that are of regional significance, relate to existing deficiencies in public facilities, require the owner of MacArthur Place South to contribute a greater percentage of benefits than would otherwise be required, and represent benefits which would not otherwise be required as part of the development process. E. The City Council has held a noticed public hearing on this Ordinance, and has considered all testimony presented thereto. F. The previously adopted and certified Final Environmental Impact Report (EIR) for the Nexus Project, No. ER 2004-02, and its Addendum have been approved and certified by this Council by resolution simultaneously with the introduction of this ordinance. G. The proposed project will not adversely affect the General Plan, as is expressly set forth in the Request for Council Action dated May 4, 2009, together with Ordinance No. NS- Page 1 11 B-13 all supporting documents, including but not limited to proposed resolutions, which are incorporated herein by this reference. SECTION 2: The Amendment to Development Agreement, a true and correct copy of which is attached hereto as Exhibit 1, is hereby approved, and the City Manager and Clerk of the Council are authorized to execute it on behalf of the City with such nonsubstantive changes as may be authorized by the City Manager and City Attorney. The Clerk of the City is hereby authorized and directed to cause this Development Agreement to be recorded with the County Recorder's Office. SECTION 3: This ordinance shall not be effective unless and until Resolution No. 2009-XXX is adopted and become effective. If said resolution is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, or otherwise do not go into effect for any reason, then this ordinance shall be null and void and have no further force and effect. SECTION 4: If any section, subsection, sentence, clause, phrase or portion of this ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of Santa Ana hereby declares that it would have adopted this ordinance and each section, subsection, sentence, clause, phrase or portion thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional. ADOPTED this day of , 2009. Miguel A. Pulido Mayor Ordinance No. NS- Page 2 11 B-14 APPROVED AS TO FORM: Joseph W. Fletcher, City Attorney By: Benjamin Kaufman Chief Assistant City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, PATRICIA E. HEALY, Clerk of the Council, do hereby attest to and certify that the attached Ordinance No. NS-XXX to be the original ordinance adopted by the City Council of the City of Santa Ana on ,and that said ordinance was published in accordance with the Charter of the City of Santa Ana. Date: Clerk of the Council City of Santa Ana Ordinance No. NS- Page 3 11 B-15 EXHIBIT 1 (replace with separate Word file called "3rd amendment to Development Agreement Hotel 2") Ordinance No. NS- Page 4 11 B-16 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: Clerk of the Council City of Santa Ana 20 Civic Center Plaza M-30 P.O. Box 1988 Santa Ana, California 92702 FREE RECORDING GOVERNMENT CODE § 6103 THIRD AMENDMENT TO DEVELOPMENT AGREEMENT by and between THE CITY OF SANTA ANA and THE GRAND PLAN 2, LLC Dated: , 2009 Ordinance No. NS- EXHIBIT 1 11 B-17 THIRD AMENDMENT TO DEVELOPMENT AGREEMENT BETWEEN THE CITY OF SANTA ANA, and THE GRAND PLAN 2, LLC This THIRD AMENDMENT TO DEVELOPMENT AGREEMENT ("Third Amendment") is entered into between THE CITY OF SANTA ANA, a charter city and municipal corporation duly authorized under the Constitution and laws of the State of California ("City"), and THE GRAND PLAN 2, LLC, a California limited liability company ("GP2"). 1. Reference to Facts. This Third Amendment is entered into with reference to the following facts: 1.1 Capitalized terms not defined herein shall have the meaning set forth in the Development Agreement. 1.2 The Grand Plan 1, LLC, a California limited liability company ("GP1") and The Grand Plan 2, LLC, a California limited liability company ("GP2"), on the one hand, and City, on the other hand, entered into that certain Development Agreement dated August 4, 2005 and recorded in the Orange County Official Records on July 21, 2005 as Instrument No. 2005000565108 (as amended, the "Development Agreement") pursuant to which, among other things, Owner (as defined in the Development Agreement) was granted the vested right to develop a mixed use Project with residential condominiums and office/commercial/retail uses, as more particularly described therein. GP2's current rights and obligations under the Development Agreement include the Condo/Office Project and Retail Project Elements of the Project, which are the subject of this Third Amendment. 1.3 A First Amendment to the Development Agreement by and between the City, GP2, NDC Skyline Associates, LLC and Integral Communities I, Inc. (the latter two being assignees of GP1 and GP2 as applicable) was executed on or about July 7, 2008 and recorded in the Orange County Official Records on July 22, 2005 as Instrument No. 2008000349227. Simultaneous with its consideration of this Third Amendment, the City Council of the City of Santa Ana is considering a proposed Second Amendment to the Development Agreement, which is concerned solely with consideration of separate requests for the City to approve rental use (as opposed to for-sale condominiums) of the Lake Tower Element and Integral Project Element of the Project. 1.4 The original Development Agreement and Entitlements (i) described the Condo/Office Project Element of the Project as consisting of a six (6) story tower consisting of fifteen (15) for-sale residential units on four (4) floors and approximately ten thousand (10,000) square feet of office use on two (2) floors, and (ii) described the Retail Project Element of the Project as consisting of approximately thirteen thousand eight hundred seventy-one (13,871) square feet of commercial space, including approximately eight thousand five hundred eighty (8,580) square feet of restaurant and approximately five thousand two hundred ninety (5,290) square feet of retai 1. 1.5 In lieu of the Condo/Office Project and Retail Project, which Elements are no longer part of the Project, GP2 seeks approval of a Hotel Project. For purposes of this Third 3rd amendment to development agreement hotel3.doc 5/27/2009 7:02 AM 2 11 B-18 Amendment, the "Hotel Project" shall consist of a new 185 room, 100,000 square foot, four-story (approximately 57.3 feet above grade) hotel to be located on the corner of MacArthur Place and MacArthur Boulevard served by 133 surface parking spaces, and GP2's right to park in the parking structure located on Orange County Assessor's Parcel No. 411-081-22 (also known as the Teacher's parking structure) during certain specified hours of the week. 1.6 Approval of the Hotel Project will result in the need to relocate the Cinema Tower, which is also owned and developed by GP2. The City and GP2 agree and acknowledge that development of the Cinema Tower will require GP2 to submit a new application to the City for site plan review for the proposed new location of the Cinema Tower, which must be reviewed and approved by the City's Planning Commission. 1.7 In connection with the foregoing, GP2 and the City now desire to amend the Development Agreement to provide GP2 with approval of the Hotel Project subject to the terms and conditions of the Development Agreement, as amended. 2. Hotel Project. GP2 and the City hereby acknowledge and agree that GP2 has the right under this Third Amendment to construct and operate the Hotel Project, as hereinafter defined. 3. Modification of Certain Provisions. The Development Agreement is hereby amended and supplemented in the following particulars: 3.1 Section 1.1(1). The phrase "office/commercial/retail uses" appearing in Section l.l(1) of the Development Agreement is hereby amended and restated to read as "hotel uses with ancillary retail/restaurant uses." 3.2 Section 2.13. The entire section is deleted and replaced with the word "Reserved." 3.3 Section 2.23. The entire section is deleted and replaced with the word "Reserved." as follows: 3.4 Section 2.25A. A new section is added between Section 2.25 and 2.26 to read "'Hotel Project' is defined in Section 2.43." 3.5 Section 2.21. This section is hereby supplemented by adding the following after the first sentence appearing therein: "The Project also includes a new 185 room, approximately 100,097 square foot, four-story (approximately 57.3 feet above grade) hotel to be located on the corner of MacArthur Place and MacArthur Boulevard served by 133 surface parking spaces, and GP2's parking rights in structure located on Orange County Assessor's Parcel No. 411-081-22 (also known as the Teacher's parking structure) during certain specified hours of the week, as set forth in detail in City approvals for Development Permit No. 2008-8, Zoning Ordinance Amendment No. 2009-04, Conditional Use Permit No. 2009-08, Variance No. 2009-02, Environmental Review No. 2008-235 (including the Addendum to the Final Environmental Impact Report for Environmental Review No. 2004-02). Entitlements shall also include the City approvals for the Hotel Project set forth in detail in City approvals for Development Permit No. 2008-8, Zoning Ordinance Amendment No. 2009-04, Conditional Use Permit No. 2009-08, Variance No. 2009-02, Environmental Review 3rd amendment to development agreement hotel3.doc 5/27/2009 7:02 AM 3 11 B-19 No. 2008-235 (including the Addendum to the Final Environmental Impact Report for Environmental Review No. 2004-02). 3.6 Section 2.43(2). The section is deleted and replaced by the following: "A new 185 room, approximately 100,097 square foot, four-story (approximately 57.3 feet above grade) hotel to be located on the corner of MacArthur Place and MacArthur Boulevard served by 133 surface parking spaces, and GP2's parking rights in the structure located on Orange County Assessor's Parcel No. 411-081-22 (also known as the Teacher's parking structure) during certain specified hours of the week (the `Hotel Project')." 3.7 Section 2.43(4). The entire section is deleted and replaced with the word "Reserved." 3.8 Section 2.43 (senerally~. The final sentence appearing in this section (i.e., the sentence beginning with the phrase "Each of the Lake Towers ... ") is deleted and replaced with the following: "The Lake Towers, the Cinema Tower, the Hotel Project, and the Integral Project are each an `Element."' 3.9 Section 2.52. The entire section is deleted and replaced with the word "Reserved." 3.10 Section 2.55. The following is added to this section: "The City and GP2 agree and acknowledge that the final location of the relocated Cinema Tower has not been determined. This is other issues related to its relocation shall be resolved by submission of an application by GP2 for Development Project Plan Approval pursuant to Division 3 of Article V of Chapter 41 of the City's Municipal Code, which shall be processed pursuant to said Division and Section 41-593 et seq. of the City's Municipal Code." 3.11 Section 5.1.11. The phrase "Restaurant Portion" appearing in Section 5.1.11 of the Development Agreement is hereby amended and restated to read as "Hotel Project." 3.12 Exhibit B (Public Art Plan). The second to last sentence of paragraph 2 of Exhibit B of the Development Agreement, as previously amended in the First Amendment to the Development Agreement (beginning with the phrase "Owner shall have committed..."), is deleted and replaced with the following: "Owner shall have committed, by written contract, to expend not less than One Hundred Twenty-Five Thousand Dollars ($125,000) in connection with the Public Art upon the issuance of a certificate of occupancy for each of the following: (i) Lake Towers, (ii) Cinema 3rd amendment to development agreement hotel3.doc 5/27/2009 7:02 AM 4 11 B-20 Towers, (iii) Integral Project, and (iv) Hotel Project, but in no event exceeding an aggregate of Five Hundred Thousand Dollars ($500,000)." Full Force and Effect; Countemarts. Except as amended herein the Development Agreement shall remain in full force and effect in accordance with its terms. This Third Amendment may be executed in any number of counterparts, all of which shall constitute one and the same instrument. IN WITNESS WHEREOF, this Third Amendment has been executed by the City of Santa Ana and The Grand Plan 2, LLC. Dated this day of , 2009. "CITY" THE CITY OF SANTA ANA, a charter city and municipal corporation duly authorized under the Constitution and laws of the State of California By DAVID N. REAM City Manager ATTEST: PATRICIA E. HEALY Clerk of the Council Approved as to Form: By JOSEPH W.FLETCHER City Attorney 3rd amendment to development agreement hotel3.doc 5/27/2009 7:02 AM 5 11 B-21 "GP2" 5/27/2009 7:02 AM 3rd amendment to development agreement hotel3.doc THE GRAND PLAN 2, LLC, a California limited liability company By - Name Its 11 B-22 STATE OF CALIFORNIA COUNTY OF ss. On before me, ,Notary Public, personally appeared ,who proved to me on the basis of satisfactory evidence to be the person(s) whose names(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal SIGNATURE OF NOTARY PUBLIC STATE OF CALIFORNIA COUNTY OF ss. On before me, ,Notary Public, personally appeared ,who proved to me on the basis of satisfactory evidence to be the person(s) whose names(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal SIGNATURE OF NOTARY PUBLIC 3rd amendment to development agreement hotel3.doc 5/27/2009 7:02 AM 7 11 B-23 11 B-24