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Ordinance 2836CITY OF ALAMEDA ORDINANCE NO. 2836 New Series APPROVING DEVELOPMENT AGREEMENT DA-99-01 FOR A MIXED USE DEVELOPMENT INCLUDING SINGLE-F AMILY RESIDENTIAL OFFICE , RESEA-L CH AND DEVELOPMENT , OPEN SPACE , AND LIMITED RETAIL USES AS WELL AS SITES FOR MULTIPLE FAMILY RESIDENTIAL AND A SCHOOL , LOCATED WITHIN A PROJECT ARA ENCOMP ASSING APPROXIMATELY 215 ACRES OF LAN AND WATER AT THE FORMER ALAMEDA FLEET AI'I INDUSTRIAL SUPPLY CENTER AND ANNX AND NAVAL AIR STATION (NAS) ALAMEDA EAST HOUSING BE IT ORDAIND by the City Council of the City of Alameda that: Section 1.In accordance with Subsection 30-91 of the Alameda Municipal Code Development Agreement DA-99-as shown on Exhibit "" is hereby adopted for all the real propert within the 215 acre site situated within the City of Alameda, County of Alameda, State of California, located generally south ofthe Oakland-Alameda Estuary, west of the Marner Square commercial area , north of the College of Alameda and Atlantic Avenue , and east of Main Street exclusive of the Alameda Gateway Center, U.S. Coast Guard Housing, and Miler Elementary School. Section 2.The above Development Agreement DA-99-01 shall be known as and referenced to as Development Agreement by and between the City of Alameda and the Catellus Development Corporation. Section 3.This Ordinance shall be in full force and effect from and after the expiration of thirty (30) days from the date of jts final passage subject to the signature of the development Agreement. Attest: City Clerk RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO City of Alameda 2263 Santa Clara Avenue Alameda , California 9450 Record for the Benefit of the City of Alameda Pursuant to Governent Code Section 6103 FOR RECORDER'S USE ONLY DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF ALAMEDA AND CATELLUS DEVELOPMENT CORPORATION SFRLIBI\SRD\5331869'cd(36("3HII' DOC)(IOv II) ARTICLE 1 GENERAL PROVISIONS........ ................. ....................... ........... .....,.... ......... .......... 5 1 . 1 P arti es .. . .. . .. . . . .. . . .. .. . .. .. .. . . . .. . .. .. . . . .. . . . . . . . .. .. .. . .. .. .. .. .. .. . .. . .. . .. . .. .. . .. . .. . .. . .. .. . . . .. . . .. .. . .. .. . . .. ... City.............................................................................................................. 5 Developer................... ................ ......... ........ ....... ................ ......................... 5 Property Subject to this Development Agreement.................................................. 5 Property....................... ............. ........... ............... ............... ....... ....... ............ 5 2.2 Deletions from Property.............................................................................. 5 1.2.3 Additions to Property.................................................................................. 6 Term........................................................................................................................ 6 Effective Date............. ................................................................................ 6 Term of Agreement............. ................... .................... ................................. 6 1.3.Consequence of Effective Date Occurrng After Agreement Date............. 6 Disposition and Development Agreement... .......................................................... 7 1.4.1 Cornon Terms or Provisions; Conflict............ ......................................... 7 1.4.2 DDA as Project Approval........................................................................... 7 Project Approvals.................................................................................................... 7 EIR ...................................... ....... ............ ............ ......... .......................... 7 1.5.2 General Plan Amendments......... ..... ................... ................................... 7 1.5.Amendment to the Business Watt ont Improvement Plan ...................... 1.5.4 Disposition and Development Agreement................................................. 7 Zoning Amendments................................................................................... 8 Master Plan.................................. ............................................................... 8 1.5.Governent to Governent Map and Disposition Map............................. 8 Tentative Map..................................... .................. ................................,..... 8 1.5.Development Agreement.............. .............. ...... ......... ........ ............. ........... 8 10 Subsequent Approvals ................................ .............. ............................. ..... 8 1.5.11 Joint Implementation Agreement................................................................ 8 Definitions............................................................................................................... 9 1.2 1.3 1.4 1.5 1.6 TABLE OF CONTENTS Page ARTICLE 2 PUBLIC BENEFITS................................................................................................. 9 Public Benefits............................................... ...... ................................................... 9 ARTICLE 3 DEVELOPMENT OF THE PROPERTY................................................................. 9 Proj ect Development............................................................................................... 9 3. 2 Vested Elements...................................................................................................... 93.3 Development Construction and Completion......................................................... 10 3.3.Timing of Development; Pardee Finding................................................. 10 2 No Other Requirements................................... ......................................... 10 Development Plans................................................................................... 10 Effect of Project Approvals and Applicable Rules; Future Rules ........................ Governing Rules....................................................................................... lO 3.4.2 Changes in Applicable Rules; Future Rules ............................................. 10 3.4 3.4.Changes in Regional , State or Federal Laws ............................................ 3.4.4 Expansion of Development Rights ........................................................... 12 Conflicts.................................................................................................... l2 Processing Subsequent Approvals........................................................................ 12 Processing of Subsequent Approvals........................................................ l2 FISC/East Housing Permit Processing...................................................... Project Administration Offce................................................................... l3 Development Fees , Exactions and Conditions...................................................... 15 General........................................................................................ ....... ....... 15 Processing Fees......................... ..................... ................ ....... .................... 15 Impact Fees ............................... ......... ............. ........ ................. ........... ...... 15 6.4 Conditions of Subsequent Approvals........................................................ 16 Taxes and Assessments......................................................................................... 16 Life of Project Approvals and Subdivision Maps................................................. 17 Life of Subdivision Maps....... ............. ...................................................... 17 8.2 Life of Other Project Approvals ............................................................... 17 Further CEQA Environmental Review................................................................. 17 Reliance on Project EIR...... ......................... ...... .................... ""'''''''' ....... Subsequent CEQA Review....................................................................... 17 Building Regulations """""""""""""""""""""""'''''''''''''''''''''''''''''''''''''''''''''' 18 Traffic Cap............................................................................................................ 18 ARTICLE 4 ADDITIONAL OBLIGATIONS OF THE PARTIES ............................................ 18 College of Alameda Coordination ........................................................................ 18 Conveyance of Backbone Infrastrcture and Residential Public1y- Maintained Streets....................................... ........... '''''''''''''''''''''''''''''''''''''''''''''' 19 Assessment Financing........................................................................................... 19 Eminent Domain Powers................................................. ..................................... 19 Public ImprovementslBackbone Infrastructure.. .......... .......... .............................. 19 Alameda Unified School District Coordination.................................................... 19 Housing Agreement.............................................................................................. 20 Port of Oakland..................................................................................................... 20 Compliance With Mitigation Monitoring Reporting Program ("MM" ) .......... Subsequent Actions..... . ................ ........................................................................... : 20 Acquisition and Funding Agreement.....,...... .............. ....... .................................. 20 Maps...................................................................................................................... 20 Adjustment in Boundaries....... ............ ..................... ......... ................. .................. 21 Multi-Family Housing Site ............. ............. ................. .............. ......................... 21 4.3 4.4 ARTICLE 5 ANAL REVIEW................................................................................................ 21 Anual Review...................................................................................................... 21 Commencement of Process................................................................................... 21 Master Developer Compliance Letter ...................................................................5.4 Planning Director Review.............. .............. ........ .................. ............................... 22 11. Planning Director Compliance Finding................................................................ 22 Planning Director Non-Compliance Finding .................................................... .... 22 Cure Period........................................................................................................... 22 Referral of Default to Planning Board .................................................................. Delivery of Documents....................... .,.................. ...... ...... .................................. 23 Planning Board Compliance Finding.................................................................... 23 Planning Board Non-Compliance Finding; Referral to City CounciL................. 23 Relationship to Default Provisions ....................................................................... 24 ARTICLE 6 AMENDMENTS. ..... .................... ............ ........ ...................... ...................... ..... ...... 24 Amendments to Development Agreement Legislation......................................... 24 Amendments to or Cancellation of Development Agreement.............................. 24 Operating Memoranda .... ................... ................................................. .... ...... .... .... 256.4 Amendments to Project Approvals (Including Subsequent Approvals) ............... 25 Variation Permitted by Master Plan.......................................................... 25 6.4.2 Amendments to Project Approvals (Including Subsequent Approvals).......................................................... ...................................,... 25 6.4.Administrative Amendments.... .......... ...................................................... 26 ARTICLE 7 DEFAULT , REMEDIES AND TERMINATION................................................... 26 Events of Default ............ .............................................. ..... ................................... 26 Meet and Confer...... ............................................................................................. 27 Remedies and Termination...... ............. ........................ ""'''''''''''''''''''''''''''''''''''' 27 7 .Legal Action by Parties....... ,........ ............ """'..''''''''' ,,'' ....................................... 27 Remedies..................................................................... .............................. 27 2 No Damages.............................................................................................. 28 Effects of Litigation.............................................................................................. 28 Arbitration............................................................................................................. 29 Termination........................................................................................................... 29 Expiration of Term.................................................................................... 29 Survival of Obligations.. ........... .......... .............. ........ ............... ................. 29 Termination by City....... ....................... .................... ........ ....... ""'"'''''''''' 29 ARTICLE 8 COOPERATION AN IMPLEMENTATION....................;.................................. 29 Further Actions and Instruments........................................................................... 29 Regulation by Other Public Agencies................................................................... 298.3 Other Governental Permits and Approvals........................................................ 308.4 Cooperation in the Event of Legal Challenge....................................................... 30 Revision to Project........................................................ ........................................ 30 ARTICLE 9 TRASFERS AND ASSIGNMENTS .................................................................... 30 Right to Assign ..................................................................................................... 30 Release upon Transfer................................... ......... ........ ..... ......... ............... .......... 31 Covenants Run with the Land............................................................................... 31 111. 9.4 Community Improvement Commission Exercise of Right of Reverter/Non- Transfer Under Disposition and Development Agreement ........... 3l 9.4.1 Termination; Allocation of Rights and Obligations.................................. 32 9.4.Responsibility for Additional CEQA Review and Conditions; Lin1itation on Uses.................................. .......... ........................................ 32 IV. ARTICLE 10 MORTGAGEE PROTECTION; CERTAIN RIGHTS OF CURE........................ 33 10.Mortgagee Protection............................ ....,.... ....................... ................................ 33 10.Mortgagee Not Obligated ..... ........... ............... ....................... ......... ................ ...... 33 10.Notice of Default to Mortgagee; Right of Mortgagee to Cure.............................. 33 10.No Supersedure........................................... ............. ...... ....................................... 33 10.Technical Amendments to this Aricle 10 .... ........ ........ ............................ ............ 33 ARTICLE 11 MISCELLAl'-EOUS PROVISIONS .............. ........ ................ ..... ........... ............... 34 11.Limitation on Liability .......................................................................................... II . 2 Force Majeure....................................................................................................... 34 11.3 Notices , Demands and Communications Between the Parties ............................. 35 11.4 No Joint Venture or Partnership........................................................................... 36 11.Severability........................................................................................................... 36 ll.Section Headings.................................... .............................................................. 36 11.Construction of Agreement................................................................................... 11.Entire Agreement............................ ........................ ............. ................................. 37 11.Estoppel Certificates............................................................................................. 38 ll.10 Execution and Recordation................................................................................... 38 11.11 No Waiver ...................................................................,......................................... 38 11.12 Time Is of the Essence .......................................................................................... 39 11.13 Applicable Law ...............................................................................,...............,..... 39 11.14 Attorneys ' Fees ..................................... .......... ....." ...................... ......................... 39 11.15 Third Party Beneficiaries ...................................................................................... 39 11.16 Constructive Notice and Acceptance .................................................................... 39 11.17 Counterparts........................................................ ...... ............. ............................... 39 11.18 Authority.................................................. .............. ............................................... 39 EXHIBITS Exhibit A Exhibit B Exhibit C Exhbit D Exhbit E Exhbit F Exhibit G Appendix I Legal Description of the Propert Map of the Property Form of Release Public Benefits Joint Implementation Agreement Impact Fees Mitigation Monitoring and Reporting Program Definitions DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF ALAMEDA AND CATELLUS DEVELOPMENT CORPORATION THIS DEVELOPMENT AGREEMENT ("Development Agreement" or Agreement") is made and entered into this day of - (" Agreement Date ) by and between the CITY OF ALAMEDA , a municipal corporation organized and existing under the laws of the State of California ("City ), and CATELLUS DEVELOPMENT CORPORATION , a Delaware corporation ("Developer ). City and Developer are referred to individually as "Party," and collectively as the "Parties. RECITALSA. In order to strengthen the public planning process , encourage private participation in comprehensive planing and reduce the economic costs and risk of development , the Legislature of the State of California enacted Section 65864 et seq . of the GovernentCode (the "Development Agreement Legislation ) which authorizes City and a developer having a legal or equitable interest in real property to enter into a binding, long-term development agreement establishing certain development rights in the property.B. Pursuant to Governent Code Section 6S865 , City has adopted rules and regulations establishing procedures and requirements for consideration of development agreements , which procedures and requirements are contained in City Municipal Code Chapter XX , AricleVII (the "City Development Agreement Regulations ). This Development Agreement has been processed in accordance with the City Development Agreement Regulations.C. The United States Navy ("Navy ) owns in fee approximately 218 acres of real property in City, approximately 72 acres of which ("East Housing ) is a portion oftheformer Alameda Naval Air Station ("NAS Alameda ) and approximately 146 acres of which is the former Fleet Industral Supply Center ("FISC"). NAS Alameda closed in April 1997 and the FISC closed in September 1998. The Navy initiated the disposal process forNAS Alameda pursuant to the Defense Base Closure and Realignent Act of 1990, whichresulted orwil result in the economic developm.entconveyance of East Housing to the Alameda Reuse and Redevelopment Authority ("AR" Speciallegislationauthorizes the transfer oftheFISCto City independent of the NAS Alameda process. . TheNavy,AR and City negotiated the terms of the conveyance ofNAS Alameda and the FISCto .and the City, respectively. ARandtheCity wil transfer or havetransferredNASAlameda and the FISC to the Community Improvement Commission of Alameda ("CIC"). Pursuant to the Disposition and Development Agreement between CIC and Developer dated DDA"), and subject to the conditions therein , upon acquisition of NAS Alameda and the FISC from AR and the City, respectively, CIC is obligated to sell to Developer and Developer is obligated to purchase from CIC portions of the FISC and East Housing, consisting of approximately 87 acres for the residential portion of the Project and approximately 77 acres for the business park portion of the Project. In addition , portions ofthe FISC / East Housing will be sold/conveyed by the CIC or City to both the Port of Oakland ("Port") and the Alameda Unified School District ("AUSD"). An additional approximately 2. acres will be utilized by the CIC or Alameda Housing Authority for a 39-unit low income housing project ("Multi-Family Housing Site ). The boundaries of the portion of the FISC and East Housing to be conveyed to Developer depend on the boundaries of the property to be conveyed to the Port of Oakland , AUSD and used for the Multi-Family Housing Site. The boundaries of the property to be conveyed to the AUSD have been defined. The boundaries of the property to be conveyed to the Port of Oakland and the property to be used for the Multi-Family Housing Site have been tentatively set but are subject to refinement , as described in more detail in various agreements with the Port of Oakland and for the Multi- Family Housing Site and as described in more detail in this Development Agreement. The portion of the FISC and East Housing to be conveyed to Developer, to the Port of Oakland , to AUSD and to be used for the Multi-Family Housing Site are referred to herein , collectively, as the "Property." The Property is described in attached Exhibit A and shown on the map set forth in attached Exhibit B , and the portions of the Properly to be conveyed to the Port , AUSD and to be used for the Multi-Family Housing Site will be deleted from the definition of "Property," as . soon as the boundares are finally established. Approximately 1.38 acres of right-of-way is currently owned by the Union Pacific Railroad Company ("UP Right of Way ) which are planned to be acquired by the CIC. such time as this acquisition occurs , the UP Right of Way will be added to the definition of Property.D. The CIC and Developer have entered into the DDA , which provides for the following action (collectively the "Project"): financing of backbone infrastructure ("Backbone Infrastructure " as further defined in the DDA) and the demolition ("Demolition " as fuher defined in the DDA) of the existing improvements by the CIC; and purchase of the Propert by Developer to cQnstruct a.mixed use development comprised of up to 500 single-family (attached and detached) residential units , up to 1 300 000 square feet of office space and research and development space , four one-half acre mini-parks and associated infrastructure , all as set forth in more detail in the DDA. The complexity, magnitude and.1ong-range natue ofthe Project would be diffcult for Developer to undertake ifQity had not determined, through this Development Agreement, tQ inject aSllffcient degree of certainty.intl1elanduse regulatory process to justify the substantial financial investment associated with development of the Project. As a result of the execution of this. Development Agreement , both Parties .can be assured that the Projectcan proceed without disruption Gausedby a change in City planing and development policies and requirements , which assurance will therepy reduce the actual or perceived risk of planning, financing and proceeding with construction of the Project. Furthermore , while City or CIC may approve other projects after the Agreement Date which place a burden on City s infrastructure , it is the intent and agreement of the Parties that Developer s right to build and occupy the Project , as set forth in the Project Approvals (defined in Section l.5 of this Development Agreement), shall not be diminished as a result of such other projects and that Developer s cost to develop the Project shall not be increased as a result of such other projects.E. The DDA contains a schedule of performance which contains extensions for lack of market. As with other major private undertakings , the development of the Project is subject to significant economic and demographic uncertainties. These uncertainties , together with other currently unkown factors which may arise over the Term of this Development Agreement , prevent the CIC or Developer from presently predicting the precise timing for development of the facilities described in Recital D above. Nevertheless , assuming that market conditions perform as currently anticipated (such that the Property is developed at the rate anticipated in the DDA) and no force majeure events occur, it is the present intention of Developer to construct the Project during the Term ofthis Development Agreement.F. City is desirous of advancing the socio.economic interests of City and its residents by promoting the productive use of underdeveloped , former military base property and encouraging quality development and economic growth , thereby enhancing employment opportunities for residents and expanding City's property tax base. City is also desirous of gaining the Public Benefits of the Project , which are in addition to those dedications , conditions and exactions required by.laws.or regulations and asset forth in this Development Agreement and which advance the planing objectives of, and provide benefits to , City. By entering this Development Agreement , City also intends to cooperate with the CIC, and to apply City authority and powers to facilitate the implementation of the projectgoalsofthe CIC asset forth inthe DDA.G. City has determined that by entering into this Development Agreement: (a) City wil ensure the productive use. of underdeveloped , former militar base property and foster orderly growth and quality development in City; (b) development wil proceed in accordance with the goals and policies set forth in the City of Alameda General Plan ("General Plan ) and wil implement City' stated General Plan policies; (c) City willreceive substantially increased propert tax and sales. tax revenues; (d) City wil benefit from increased employment opportities for residents of City created by the Project; and (e) City wil receive Public Benefits(asdescribedinSection2.rein)providedbythe Project for the residents of City.H. Developer has applied for , and City has granted, the Project Approvals in ordertoprotect the interests of its citizens inthe quality of their community and environment. As partofthe Project Approvals , City has undertaken , pursuant to the California Environmental Quality Act (Public Resources Code 921000 et seq.hereinafter "CEQA"), the required analysis of the environmental effects which would be caused by the Project and has determined those feasible mitigation measures which will eliminate , or reduce to an acceptable level , the adverse environmental impacts of the Project. City has completed and certified an Environmental Impact Report ("EIR") in connection with the Project , including the Project Approvals. City has also adopted a mitigation monitoring program to ensure that those mitigation measures incorporated as part of, or imposed on , the Project are enforced and completed. Those mitigation measures for which Developer , the City and the CIC are responsible are incorporated into and required by the Project Approvals. City has also adopted statements of fact and findings of overrding considerations for those adverse environmental impacts of the Project that may not or cannot be mitigated to an acceptable level.1. In addition to the Project Approvals , the Project may require various additional land use and construction approvals , termed Subsequent Approvals , from City and CIC in connection with development of the Project.1. City has given the required notice of its intention to adopt this Development Agreement and has conducted public hearings thereon pursuant to Governent Code Section 6S867. As required by Governent Code Section 6S867.S, City has found that the provisions of this Development Agreement and its purposes are consistent with the goals , policies , standards and land use designations specified in City s General Plan.K. On May 13 2000 the City of Alameda Planning Board Planning Board"), the initial hearing body for purposes of Development Agreement review , recommended approval of this Development Agreement pursuant to Resolution No. PB-00-42 On , _ the City of Alameda City CounciL("City Council") adopted its Ordinance No. approving this Development Agreement and authorizing its execution.L. For the reasons recited herein, City and Developer have determined that the Project is a development for which this Development Agreement is. appropriate. This Development Agreement wil eliminate uncertainty regarding Project Approvals (including the Subsequent Approvals), thereby encouraging planning for, investment in and commitment to use and development of the Property. Continued use and devel()pment of the Propert wil in tuprovidesubstantial housing, employment and property tax benefits as well as other public benefits to City, and contrbute to the provision of needed infrastructure for area gr()wth , thereby achieving the goals and purposes for which the Development Agreement Legislation was enacted.M. The terms and conditions of this Development Agreement have undergone extensive review by City staff, its Planing Board and its City Council at publicly noticed meetings and have been found to be fair , just and reasonable and in conformance with the City General Plan, the Development Agreement Legislation , and the City Development Agreement Regulations and , further , the City Council finds that the economic interests of City s residents and the public health , safety and welfare will be best served by entering into this Development Agreement. NOW , THEREFORE , in consideration of the mutual covenants and promises set forth herein , City and Developer agree as follows: ARTICLE GENERAL PROVISIONS 1.1 Parties. . City is a California municipal corporation , with offces located at 2263 Santa Clara Avenue in the City of Alameda , California. "City," as used in this Development Agreement , shall include City and any assignee of or successor to its rights powers and responsibilities. 1.2 Developer.Developer is a Delaware corporation, with offces located at 201 Mission Street in the City and County of San Francisco , California. "Developer as used in this Development Agreement, shall include Catellus Development Corporation and any permitted assignee or successor in interest as herein provided. "Master Developer , as used in this Development Agreement shall mean "Master Developer" as defined by the DDA. 1.2 Property Subject to this Development Agreement. 1.2.Property . All of the Property, as described in Exhibit A and shown in Exhibit B , shall be subject to this Development Agreement , subject t? Section 1.2.2 below. Deletions from Property . The Paries acknowledge that CIC and/or City has entered into or intends to enter into agreements with several paries which wil result in the deletion of certain property from the Property. These.agreements include: (i) that certain Memorandum of Understanding, executed by all parties as of February 22 2000 , by and among the Alameda County Homeless Base Conversion Collaborative AR, CIC , the Alameda Housing Authority,.City,the County of Alameda, and the Alameda Point Collaborative , Inc. Housing Agreement"), which provides for the conveyance of the Mult-Family Housing Site shown in the alternative locations in the Housing Agreement , to third paries for thirt-nine (39) unts of multi-family housing ("Multi-Family Housing )that are proposed independently ofthe Project; (ii) an agreementbetweenCity and AUSD , dated March 28, 2000 , (" School Agreement") which provides fofthe conveyance of certain propert described therein to the AUSD for an approximately eight (8) acre school site ("School Site ); and (ii) an agreement between the Port of Oakland ("Port") and City dated January 18 , 2000 ("Port Agreement" whichprovides.for.aportionofthePropert.approximatelydescribed in the Port Agreement Port Propert") to be taken by the Port. At such times as the Multi-Family Housing Site is finally selected pursuant to the Housing Agreement , and the boundaries of the Port Property are finally established , the Parties shall meet and confer in good faith to revise the description of the Property contained in Exhibits A and to remove from the legal description and the map the portion of the Property that is conveyed to third parties for the Multi-Family Housing Site , the School Site and the Port Property. At the time of such deletions , the term "Property " herein shall automatically exclude such portion of the Property so deleted. Prior to conveyance by the City and/or CIC of any portion of the Property to the Port , the AUSD or to be used for the Multi- Family Housing Site pursuant to the above-described agreements , the City and Developer shall enter into a release , substantially in the form attached hereto as Exhibit C,releasing the Multi- Family Housing Site , the School Site and the Port Property from the Development Agreement. City shall cooperate with CIC to allow CIC to execute similar releases , if needed , under the DDA. Additions to Property . The Parties acknowledge that at the time the CIC acquires the UP Right of Way shown on Exhibit B and included in the Master Plan , it shall automatically become part of the "Property" herein and the City and Developer shall record documents showing the addition of the UP Right of Way to the Property. 1.3 Term Effective Date . This Development Agreement shall become effective upon the last to occur of the following ("Effective Date (a) Execution ofthis Agreement by all Parties; (b) The effectiveness of the ordinance approving this Agreement; (c) Execution by the United States Navy and the AR of a Memorandum of Agreement providing for transfer from the Navy to the AR of the EastHousing; and (d) Execution by the United States Navy and the City of a Memorandum of Agreement providing for transfer from the Navy to the City of FISC. Term of Agreement.The term ("Term ) of this Development Agreement shall commence uponthe Effective Date and shall continuein full forc e and effect until the twentieth (20th) anniversary of the Effective Date thereafter unless extended or earlier terminated as provided in this Agreement. The Term has been established by the Paries as a reasonable estimate ofthe time required to develop the Project and obtain the Public Benefits of the Project. In establishing and agreeing to such Term , City has determined that the Project Approvals (as defined in Section .1. S) (including this. Development Agreement) incorporate sufficient provisions to permit City to adequately monitor and respond to changing circumstances and conditions in granting permits and approvals and undertaking actions to carry out the Project. 1.3.Consequence of Effective Date Occurrng After Agreement Date The Project shall be subject to the Applicable Rules and Vested Elements in effectas ofthe Agreement Date and the Impact Fees that are set forth in this Development Agreement. Any changes to the Applicable Rules or Vested Elements or Impact Fees that occur after the Agreement Date shall not be applicable to the Project , except as explicitly permitted in this Development Agreement. 1.4 Disposition and Development Agreement.The Project is the subject of both this Development Agreement and the DDA. It is the intent of the Parties , to the maximum extent feasible and consistent with the documents ' respective functions , to make this Development Agreement and the DDA consistent with one another as follows: l.4.Common Terms or Provisions: Conflict.With respect to provisions or definitions so indicated , this Development Agreement adopts identical provisions or definitions in the DDA. If such provisions in the DDA are amendcd , then , unless the Parties mutually agree otherwise , the City shall adopt the same amendment to the Development Agreement at the next possible hearing date of the City Council , without imposing any other terms as a condition to such amendment. 1.4.DDA as Proiect Approval.The DDA is listed in Section l.5 as a Project Approval. To the extent that provisions of the DDAarematerial to securing to the Developer the Vested Elements set forth in Section 1.5 , the City recognizes such provisions and agrees to take those actions reasonably necessary and within its power and jurisdiction to make such provisions applicable to its regulation of the Project. 1.5 Project Approvals . Developer has applied for and obtained various environmental and land use approvals and entitlements related to the development of the Project as described below. For purposes of this Development Agreement , the term "Project Approvals shall mean all ofthe approvals described in this Section 1.5. 1.5.1 EIR . An EIR forthe Project (State Clearnghouse No. 1998112078) prepared pursuant to CEQA, recommended for certification by the Planing Board on May 13 , 2000 , by Resolution No. PB-00-, and certified with findings by the CityCouncil on , - ' by Resolution No. - l.S.General Plan Amendments . On ,2000 , following Planing Board review and recommendation , and after a duly noticed public hearng, the City Council , by Resolution No. approved amendments to the City General Plan ("General Plan Amendments ) which redesignated the Property from Federal Facilities and Medium-Density Residential to Business Park, Medium-Density Residential, PubliclIstitutionaland Parks and Open Space; deleted certain policies relatedto he operation oftheforrerNAS Alameda and FISC on the Propert; and expanded a portion of Inventory Site #1 in the Housing Element from the Propert to another locationinNASAlameda. Amendment to the Business Waterfront Improvement Plan . On , - ' following review and recommendation , and after a duly noticed public hearng, CIC, by o. --' approved an amendment ("BWI Amendment") to the Business WaterfrontImprovementPlan.BWI") to revise the Plan s land use designations to be consistent with the General Plan Amendments. ' following hearng, CIC , by 5.4 Disposition and Development Agreement. review and recommendation , and after a duly noticed public No. -' approved the DDA for the Property. 1.5.Zoning Amendments . On , following Planning Board review and recommendation , and after a duly noticed public hearing, the City Council , by Ordinance No. -' approved an amendment to the City of Alameda Zoning Ordinance Zoning Amendments ) which changed the zoning designation of the Property from M- General Industrial Manufacturing District with a Special Governent Combining Overlay (G) and R-G, Neighborhood Residential with a Special Governent Combining Overlay (G) to , Mixed Use Planned Development. 1.5.Master Plan . On , following Planning Boardreview and recommendation , and after a duly noticed public hearing, the City Council , by OrdinanceNo. , approved a Master Plan for the Project ("Master Plan ), a copy of which is attached hereto as Exhibit C 1.S.Disposition (Parcel) Map . On , - ' following Planing Board review and recommendation , and after a duly noticed public hearing, the City Council , by Resolution No. -' approved a Parcel Map ("Disposition Map ) for the Project. Tentative Map . On , - ' following Planing Board review and recommendation , and after a duly noticed public hearng, the City Council , by Resolution No. -' approved a Tentative Map for the residential portion ofthe Project Tentative Map Development Agreement.On following Planning Board review and recommendation , and after a duly noticed public hearing, the City Council , by Ordinance No. , approved this Development Agreement and authorized its execution. 10 Subsequent Approvals . The Parties agree that in order to develop the Project (including the Demolition and the Backbone Infrastructure) as contemplated in this Development Agreement , the Proj ect may require additional entitlements , development permits and use and/or construction approvals other than those listed in Sections 1.5.1.5.9 andl. herein , which may include , without limitation: development plans , amendments to applicable redevelopment plans , conditional use permits , variances, the "Acquisition and Funding Agreement" (as defined by the DDA) and amendments thereto , subdivision approvals , street abandonments , design review approvals , improvement agreements , infrastructure agreements grading permits , building permits , right-of-way permits , lot line adjustments , .site plans , sewer and water connection permits , certificates of occupancy, parcel maps , lot splits , landscaping plans , master sign programs , transportation systems management programs and encroachment permits (collectively, "Subsequent Approvals ). At such time as any Subsequent Approval is approved by the City and/or the CIC as applicable , such Subsequent Approvalshallbecome subject to all the terms andconditionsofthisDevelopment Agreement applicable to Project Approvals and shall be treated as a "Proj ect Approval" under this Development Agreement. ll Joint Implementation Agreement. On , CIC and City entered into the Joint Implementation Agreement Between the City of Alameda and the Community Improvement Commission of the City of Alameda Related to the Implementation of the Catellus Mixed-Use Development ("Joint Implementation Agreement"), setting forth inter alia , processing procedures for the Subsequent Approvals and various actions to be undertaken by CIC and/or City to implement the Project. Definitions . The capitalized terms used in this Development Agreement shall have the meanings set forth in Appendix I attached hereto. ARTICLE 2 PUBLIC BENEFITS Public Benefits . In consideration of, and in reliance on , City agreeing to the provisions of this Development Agreement , Developer wil provide the public benefits ("Public Benefits ) described in Exhibit D , which are over and above those dedications , conditions and exactions required by laws or regulations. ARTICLE 3 DEVELOPMENT OF THE PROPERTY Project Development.Subject to the provisions of this Agreement and the DDA, Developer shall have the right to develop the Project on the Property, in accordance with the Vested Elements. Developer shall be entitled to all the rights under this Development Agreement during any time period in which it owns or has the right to own the Property under the DDA, except where the rights are limited to the Master Developer in which case Master Developer shall be entitled to the rights under the Development Agreement. Vested Elements . The permitted uses ofthe Property, the maximum density and/or number of residential units , the intensity of use, the maximum height and sizeofthe proposed buildings, provisions for reservation or dedication of land for public purposes , the provisions for public improvements and financing of public improvements , and the other terms and conditions of development applicable to the Property are as set forth in: (a) The General Plan of City on the Agreement Date , including the General Plan Amendments ("Applicable General Plan (b) The Zoning Ordinance of City on the Agreement Date , including the Zoning Amendments ("Applicable Zoning Ordinance (c) Other rules , regulations , ordinances and policies of City applicable to developmentofthe Propert on the Agreement Date (collectively, together with the Applicable General Plan and Applicable Zoning Ordinance , the "Applicable Rules ); and (d) The Proj ect Approvals (including,inter alia , this Development Agreement and the Subsequent Approvals), as they maybe amended from time to time upon Developer s consent , such consent to be granted at the sole discretion of Developer) and City (and/or CIC's) approval of the amendment in accordance with Section 6.4.2 ofthis Agreement; and are hereby vested in Developer, subject to and as provided in the provisions of this Development Agreement ("Vested Elements ). City hereby agrees to be bound with respect to the Vested Elements , subject to Developer s compliance with the terms and conditions of this Development Agreement. The intent of this Section 3.2 is to cause all development rights which may be required to develop the Project in accordance with the Project Approvals to be deemed vested in Developer. Development Construction and Completion Timing of Development: Pardee Finding . The DDA sets forth Developer s rights and obligations with respect to the timing of development of the Property and also contains certain phasing plans which form the basis of financial provisions relating to CIC' funding obligations for Backbone Infrastructure and Demolition. The California Supreme Court held in Pardee Construction Co. v. City of Camarilo 37 Ca1.3d 465 (1984), that the failure the parties therein to provide for the timing.of development resulted in a later adopted initiative restricting the timing of development and controlling the parties ' agreement. To. avoid the result reached in Pardee , the Paries agree that the provisions of the DDA with respect to the timing of development constitute provisions relating to the timing of development for purposes of Pardee supra. No Other Requirements . Nothing in this Development Agreement is intended to create any affirmative development obligations to develop the Project or develop the Project in any particular order or maner , or liability in Developer under this Development Agreement if the development fails to occur. The DDA sets forth Developer ' s obligations regarding development of the Project , and any default under the DDA (including failure to develop in accordance with the timing provisions of the DDA) does not constitute a default under this Development Agreement. Such DDA obligations are not subject to the annual review process set forth in ARTICLE 5 herein but default under the DDAmaYTesultin termination of Developer s rights to acquire all or part of the Property as provided intheDDA. Such termination under the DDAmay result in terminationofthis Agreement with Tespectto such land as provided in Section 9.4 herein. Development Plans . NotWithstanding the terms of Section 30- 20(i) ofthe City Zoning Ordinance (the MX , Mixed Use Planned Development District), Section 7.2 of the DDA provides , and the City agrees , that Developer shall have the right to submit to the City for approval , and the City shall have the right to approve , Development Plans relating to proposed Improvements to be developed in a later phase ofthe Project prior to the substantial construction of the Improvements described in the previously approved Development Plan for the Project. 3.4 Effect of project Approvals and Applicable Rules; Future Rules. 3.4.1 Governing Rules . Except as otherwise explicitly provided in this Development Agreement, development ofthe Property shall be subjectto (i) the Project Approvals , and (ii) the Applicable Rules. 3.4.2 Changes in Applicable Rules; Future Rules (a) To the extent any changes in the Applicable Rules , or any provisions of future General Plans , Specific Plans , Zoning Ordinances or other rules , regulations 10. ordinances or policies (collectively, "Future Rules ) (whether adopted by means of ordinance initiative , referenda, resolution , policy, order or moratorium , adopted by the City Council Planning Board , or any other Board , Commission or Department of City or any offcer or employee thereof, or by the electorate) are not in conflict with the Vested Elements , such changes or Future Rules shall be applicable to the Project. For purposes of this Section 3.4.2(a), the word "conflict" means changes in the Applicable Rules or the provisions ofthe Future Rules that would (i) alter the Vested Elements , or (ii) frustrate in a more than insignificant way the intent or purpose ofthe Vested Elements in relation to the Project , or (iii) materially increase the cost of performance of or preclude compliance with any provision of the Vested Elements , or (iv) delay in a more than insignificant way development of the Project , or (v) limit or restrict the availability of Backbone Infrastructure , or (vi) impose limits or controls in the timing, phasing or sequencing of development of the Project , or (vii) increase the permitted "Impact Fees " or add new Impact Fees. To the extent that changes in the Applicable Rules or the provisions .of the Future Rules (whether adopted by means of ordinance , initiative , referenda , resolution , policy, order or moratorium , adopted by the City Council , Planning Board , or any other Board Commission or Deparment of City or any officer or employee thereof, or by the electorate) conflict with the Vested Elements , they shall not apply to the Project and the Vested Elements shall apply to the Project except as provided in Section 3.4.2(b) herein. (b) A change in the Applicable Rules or a provision of a Future Rule which conflcts with the Vested Elements.shall nonetheless apply to the Property if, and only if (i) consented to in writing by Developer; (ii) it is determined by City and evidenced through findings adopted by the City Council that the change or provision is reasonably required in order to prevent a condition dangerous to the public health or safety; (ii)required by changes in State or Federal law as set forth in Section 3.4.3 below; .(iv) consists of changes in or. new fees permitted by Section 3.6; (v) consists of revisions to or new Building Regulations permitted by Section 3.10; or (vi) is otherwise expressly permitted by this Agreement. (c) . The Paries have prepared two (2) sets of the Project Approvals and Applicable Rules , one (1) set for City and one (1) set for Developer. Ifit becomes necessar in the future to referto any of the Project Approvals or Applicable Rules , the contents of these sets are presumed for all purosesofthis Development Agreement , absent clear clerical error or similar mistake , to constitute the Project Approvals and Applicable Rules. 3.4.Changes in Regional. State or Federal Laws . A change in the Applicable Rules or a provision of a Futue Rule which conflcts with the Vested Elements shall nonetheless apply to the Propert if such change or Futue Rule is mandated or reasonably necessar to comply with or carr out regional, laws or regulations ("Regional Law ).. state and federallaws , regulations or binding policies ("Federal Law ' and "State Law ), t g into consideration, among other things the assurances provided to Developer under this. Development Agreement and the purose and intent oftheVested Elements. In the event ofthe application of such a change in law , the Parties shall meet in good faith to determine the feasibility of any modification or suspension that may be necessary to comply with such new law or regulation and to determine the effect such modification or suspension would have on the puroses and intent of this Development Agreement and the Vested Elements. Following the meeting between the Parties , the provisions of this Development Agreement may, to the extent feasible , and upon mutual agreement of the Parties , be modified or suspended but only to the minimum extent 11. necessary to comply with such new law or regulation. In such an event, this Development Agreement together with any required modifications shall continue in full force and effect. the event that the change in Federal Law , State Law or Regional Law operates to frustrate irremediably and materially the vesting of development rights to the Project as set forth in this Agreement , Developer may terminate this Agreement. In addition , Developer shall have the right to challenge (by any method , including litigation) the Regional Law , State Law or Federal Law preventing compliance with or performance of the terms of this Development Agreement and, in the event that such challenge is successful , this Development Agreement shaH remain unmodified and in full force and effect , unless the Paries mutually agree otherwise , except that if the Term of this Development Agreement would otherwise terminate during the period of any such challenge and Developer has not commenced with the development ofthe Project in accordance with this Development Agreement as a result of such challenge , the Term shall be extended for the period of any such challenge. 3.4.4 Expansion of Development Rights . If any future local , Regional Law , State Law or Federal Law expands , extends , enlarges or broadens Developer ' srights to develop the Project , then , (i)if such law is mandatory, the provisions of this Development Agreement shall be modified as may be necessary to comply or conform with such new law , and (ii) if such law is permissive , the provisions of this Development Agreement shall be modified upon the mutual agreement of Developer and City, as may be necessary to comply or conform with such new law. Immediately after enactment of any such new law , the Parties shall meet and confer in good faith fora period not exceeding sixty (60)days (unless such period is extended by mutual wrtten consentofthe Parties) to prepare such modification. Developer shall have the right to challenge City s refusal to apply any new law mandating expansion of Developer s rights under this Development Agreement , and in the event such challenge is successful , this Development Agreement shall be modified to comply or conform with the new law. 3.4.Conflcts . In the event of an irreconcilable conflict between the provisions ofthe Project Approvals (on the one hand) and the Applicable Rules (on the other hand), the provisions ofthe Project Approvals shall apply; provided however , that as set forth in Section 6.4 , as Project Approvals are amended as provided in this Development Agreement, the Vested Elements as defined.inthis Development Agreement are deemed.hereby to be automatically amended to reflect such amendments. In the event of a conflct betweenthe Project Approvals (on the one hand) and the Development Agreement , in particular , (on the other hand), the provisions of the Development Agreement shall control. Processing Subsequent Approvals Processing of Subsequent Approvals . Inconsideration of Developer entering into this Development Agreement, City agrees thatit will accept , make completeness determinations , and process , promptly and diligently, all applications for Subsequent Approvals , in accordance with the terms of this Development Agreementand the Joint Implementation Agreement , notwithstanding any changes to processing procedures as a result of Future Rules. City and Developer agree that the procedures applicable to amendments of the Master Plan or Development Plans shall be as set forth in the Development Agreement the Joint Implementation Agreement and the Applicable Zoning Ordinance for the MX Mixed Use Planned Development District , notwithstanding any subsequent changes by Future l2. Rules to the Applicable Zoning Ordinance for the MX , Mixed Use Planned Development District , unless the Parties agree otherwise in writing. City will use its best efforts to anticipate and communicate to Developer issues and concerns that may arise in connection with any application prior to the application submittal if possible and as early as feasible in the permit process. Developer will use its best efforts to keep City informed of development applications as they mature , and anticipate and communicate issues of mutual concern prior to submittal of permit applications. City agrees that the scope of the review of applications for Subsequent Approvals shall be limited to a review of substantial conformity with the Vested Elements and the Applicable Rules (except as otherwise provided by Section 3.4), and compliance with CEQA. Where such substantial conformity/compliance exists , City shall not deny an application for a Subsequent Approval. 5.2 FISC/East Housing Permit Processing . City and CIC have entered into the JointImplementationAgreement, attached hereto as Exhibit F . The Joint Implementation Agreement is deemed a Project Approval. The Joint Implementation Agreement provides for centralized review , sets forth normative time frames for all major permits for the Project (including the Demolition and the Backbone Infrastructure), and provides for the commitment of the financial resources and personnel necessary to achieve and maintain the time frames through establishment ofa "Project Administration Offce " (as definedintheJoint Implementation Agreement). City covenants that it shall cause the timely. performance of all necessary City agencies to fulfill their obligations under the Joint Implementation Agreement. City acknowledges and agrees that the Joint Implementation Agreement is entered into for the benefit of City and CIC and for the express benefit of Developer, that Developeris entitled to rely on the Joint Implementation Agreement , receive benefits conferred by the Joint Implementation Agreement and enforce any provision ofthe Joint Implementation Agreement against any par to the extent that such provision may impact Developer, the Project (including the Demolition and the Backbone Infrastructure) or the Project Approvals. City agrees that Developer shall be a third party beneficiary to the JointImplementation Agreement and that City shall not amend the Joint Implementation Agreement without the prior wrtten consent of Master Developer, not to be umeasonably withheld. Terminationofthe Joint Implementation Agreement shall not affectthe Term or the continuing validity of the Development Agreement. Project Administration Office . City agrees to establish and maintain the Project Administration Offce under the terms ofthe Joint Implementation Agreement. At the election of Developer , either: (a) Developer shall pay City expedited processing fees . (asset forth in Section 3 .2 herein) in processing Subsequent Approvals; or (b) City or CIC may charge and collect from Developer fuds sufficient for reimbursement for the actual and reasonable costs incurred by the CIC Project Administration Offce (excluding any and all costs of the Project Administration Offce itself identified in Section 3.5.3(i)) in processing Subsequent Approvals (excluding Demolition and Backbone Infrastrctue) for the Project. The tenus for such reimbursement shall be set forth in detail in a Joint Implementation Agreement Operating Memorandum ("JIAOperating Memorandum ), as described further in the Joint Implementation Agreement , to be entered into and executed no later than sixty (60) days after the Agreement Date , the terms of which must be reasonably acceptable to City, CIC and Developer and shall include the following concepts: 13. (i) Reimbursement for services performed and costs incurred by the Project Administration Office in processing Subsequent Approvals for the Project (but not for the Demolition or the Backbone Infrastructure) shall be computed based upon the terms set forth in the JointImplementation Agreement and shall in all cases reflect the City s or CIC's actual cost , with no surcharge or premium assessed to Developer by City or CIC; provided , however Developer shall not be responsible for reimbursement of any services performed or associated with the establishment , staffng and operation of the Project Administration Office but shall be responsible for reimbursement for services performed by staff members of other City deparments and by outside consultants in connection with review of Subsequent Approvals (excluding Backbone Infrastructure and Demolition) at the rates to be set forth in the JIA Operating Memorandum. (ii) Reimbursement for such eligible services performed shall be paid to City or CIC by Developer after receipt and approval by Developer of invoices setting forth in detail the services performed , the bilable time spent , and theidentityofthe responsible staff person or outside consultant. No more than thirty (30) calendar days after receipt of the invoice from City or CIC , Developer shall transmit its approval , partial approval or disapproval of said invoice to City or CIC. Developer shall only disapprove of said invoice or any portion thereof if there is amaterial item in dispute. Developer shall have thirty (30) calendar days after approval of the invoice to transmit payment of said invoice to City or CIC. Developer shall not be obligated to pay any disputed portion until the dispute is resolved and the Project Administration Office will continue to ensure that Subsequent Approvals are processed in accordance with the terms ofthe Joint Implementation Agreement during the pendency of the resolution of the dispute. (iii) Records shall be established and maintained by City or CICwith respect to its costs associated with processing all Subsequent Approvals , on terms to be agreed upon in the JIA Operating Memorandum. (iv) Developer shall be permitted to audit and examine all cost records relating to the City s or CIC's invoices for reimbursement by Developer under this Section , on terms to be agreed upon in the JIA Operating Memorandum. (v) Ifany audit reveals inaccuracies in the City s or CIC's billngs , the necessary adjustments to correct the inaccuracy shall be made promptly, and payment .of those portions of the bil as to which inaccuracies have been revealed shall be withheld durng the period necessar to correct the inaccuracies , on terms to be agreed upon in the JIA Operating Memorandum. (vi) Payment by peveloper of undisputed amounts within the periods described above shall constitute a precondition to continued processing of Subsequent Approvals by the Project Administration Offce but shall not constitute a default under the Development Agreement and shall not be subject to anual review under Aricle S herein. 14. Development Fees , Exactions and Conditions General.All fees , exactions , dedications , reservations or other impositions to which the Project would be subject , but for this Development Agreement , are referred to in this Development Agreement either as "Processing Fees " or "Impact Fees. Processing Fees . " Processing Fees " mean fees charged to the Project to cover thc cost of City review of applications for any permit or other revicw by City departments. Applications for Subsequent Approvals shall be charged Processing Fees to allow the Project Administration Office to recover its actual and reasonable costs of processing Developer s Subsequent Approvals (excluding costs of any Subsequent Approvals for Backbone Infrastructure and Demolition) with respect to the Project , as set forth in Section 3. Alternatively, with respect to any element of City review of the Project , Developer may choose at its sole election, instead to pay City "Expedited Processing Fees " which shall he the then- applicable current Processing Fees applicable throughout City for expedited processing (including the cost of retaining a consultant or extra-hire staff and cities customary overhead costs) and shall not , in any event at any time , be more than Expedited Processing Fees required for similar expedited approvals , permits and entitlements in City. Notwithstanding any election by Developer to pay City Expedited Processing Fees in lieu ofthe actual and reasonable costs of the Project Administration Offce in processing Subsequent Approvals pursuant to Section 3.5. Subsequent Approvals shall stil be processed through the Project Administration Office. Notwithstanding anything to the contrary herein, Developer shall not be charged for (or required to advance and seek reimbursement of) any costs of processing for the Demolition and Backbone Infrastructure. Impact Fees . " Impact Fees " meansmonetarfees , exactions dedications , reservations or impositions , other than taxes or assessments , whether established for or imposed upontheProjectindividually or as par of a class of projects , that are imposed by City and/or CIC on the Projectinconnection with any Project Approval (inc1udingSubsequent Approvals) for the Project for any purpose, including, without limitation, defraying all or a portion of the cost of public services and/or facilities construction, improvement, operation and maintenance attbutable to the burden created by the Project. Any fee, exaction , dedication, reservation orimpositionimposed.on the Project which is nota Processing Fee is an Impact Fee. No Impact Fees shall he applicable to the Project except as provided in this Development Agreement. City understands that long-term assurances by City concernng Impact Fees were a material consideration for Developer agreeing to. develop theProj ect, to pay the Impact Fees set forth in Exhibit F ofthis DevelopmentAgreement and 10 provide the Public Benefits described in this Development Agreement. (a) Only the specific Impact Fe s listed in Exhibit F shall apply to the Project, except as otherwise explicitly permittedhy this Section 3.6.3(a). No change to an Impact Fee in Exhibit F (other than by the inflator , if any, permitted therein). resultng in an increase in dollar amounts charged to the Projectthatis adopted after the Agreement Date shall apply to the Project. If, afterthe Agreement Date , City decreases the rate of any of its Impact Fees existing as of the Agreement Date , Developer shall pay the reduced ImpactFee in effect at the time of payment. No Impact Fee other than those listed in Exhibit F may be imposed on the Project unless it is a fee which meets all of the following criteria: (a) the fee is imposed citywide l5. on all single-family residential projects or offce/research and development projects or retail projects (in which case the fee would be applicable only to the residential or offce/research and development or retail portions of the Project , respectively) on all new projects on a nondiscriminatory basis; (b) the fee is not used , directly or indirectly, for new or replacement transportation infrastructure , utility infrastructure , park facilities or open space acquisition educational facilities , housing, art or police or fire facilities; (c) the fee meets all nexus tests and other legal requirements; and (d) the fee is adopted by ordinance by the City or resolution by the CIC pursuant to a nexus study which , in addition to other legal requirements , calculates the fee on new development based on a spread ofthe cost ofthe subject facility or facilities or to the entire population creating the need for or benefitting from the facility, whether that population is existing or new due to the development , and calculates the fee on new development based solely on the new development's fair share of such cost spread. City acknowledges that no new fee may impose on new development the fair share of a facility or repair attributable to or benefitting the existing population , but City must instead charge such costs to the existing population through other fiscal devices or find alternative funding sources for such existing population s fair share. (b) Developer retains all rights set forth in Governent Code 9 66020. Nothing in this Development Agreement shall diminish or eliminate any of Developer s rights set forth in such section. 6.4 Conditions of Subsequent Approvals . No conditions imposed on Subsequent Approvals shall require public infrastructure or public improvements beyond those already included in the DDA , the Tentative Map, the Disposition Map, the Master.Plan andthe MMRP unless expressly permitted by Section 3.4.2(b). In addition , any and all conditions imposed on Subsequent Approvals must comply with Sections 3.2 and 3.3 herein. In addition to the above , City agrees that the only conditions it shall impose as conditions on parcel maps for the Projectare: (l)conditions which it would otherwise have the authority to impose on lot line adjustments underthe Applicable Rules; or (2) conditions which ensurethe10ts are adequately configured to provide adequate frontage , internal circulation, cross-easements and common area maintenance. Taxes and Assessments . Subject to the provisions of Section 3.6 above, City may impose new taxes and assessments , other than Impact Fees , onthe Property in accordance with the then-applicable laws , but only if such taxes or assessments. are adopted by or after cityide voter or citywide landowner approval of such taxes or. assessments and are equally imposed on other land andprojectsofthesame category (i., all single-family residential projects or office/research and development projects or retail projects , in which .case the tax or assessment would be applicable only to the residential or offcelresearch and development or retail portion ofthe Project , respectively) within the jurisdiction of City, and, as to assessments only ifthe impactthereof does not fall disproportionately onthe Propert vis-a-vis the other land and projects within City s jurisdiction or the portion of City s jurisdiction subject to the assessment. Nothing herein shall be construed so as to limit Developer from exercising whatever rights it may otherwise have in connection with protesting or otherwise objecting to the imposition oftaxes or assessments on the Property. 16. Life of Project Approvals and Subdivision Maps Life of Subdivision Maps . The terms of any tentative map in the Project , any amendment or reconfiguration thereto , or any subsequent tentative map, shall be automatically extended such that such tentative maps remain in effect for a period of time coterminous with the term of this Development Agreement. Life of Other Project Approvals . The term of all otherProject Approvals (with the exception of design review , use permits , building permits , variances , the DDA and the Joint Implementation Agreement) shall be automatically extended such that these Project Approvals remain in effect for a period of time at least aslong as the term of this Development Agreement. The.terms of use permits , design review , building permits and varances shall be the longer of one year or the time period permitted by the Applicable Rules or Future Rules. The term of the DDA shall be the term specified therein. The term ofthe Joint Implementation Agreement shall be the term specified therein. Further CEQA Environmental Review 9.1 Reliance on Project EIR.The Project EIR, which has been certified by City as being in compliance with CEQA , addresses the potential environmental impacts ofthe entire Project , as it is described in the Project Approvals. Nothing in this Development Agreement shall be construed to require CEQA review of ministerial Subsequent Approvals. . It .is agreed that , in acting on any discretionar Subsequent Approvals , City will rely on the ProjectEIRtosatisfytherequirements ofCEQA to the fullest extent permissible by CEQA and City wil not require anne\V initialstudy, negative declaration or subsequent or supplemental EIR unless required by law. Subsequent CEQA Review . Illthe eventthat any additional CEQA documentation is legally required for any discretionary Subsequent Approval (other than any additionalCEQA documentation thatis required as a result of the reverter/non-transfer of any portion oftheProperty pursuant to the DDA, which .is addn;:ssed in Section 9.4 herein), then the scope of such documentation shall be focused to the extent possible consistent with CEQA on the specific subj ect matter of the Subsequent Approval ,. and the City shall conduct such CEQA review as expeditiously as possible. The. cost and implementation of any additional mitigation measures .or conditions requiring public improvementsandlorpublic infrastrcture may be imposed onthe Subsequent Approvals as . a result of such CEQAprocess only to the extent otherwise permitted by Section 3.6 of this PevelopfientAgreement. Inthe eventthat CEQAreviewofaSubsequent Approval pursuant to this Section 3.2.identifiesanyadditional mitigation measures or conditions that are not permitted by Section3.60fthisDevelopment Agreement, then City or CIC , atitselection shalleither: (a) .implement such mitigation measures or conditions at no cost and expense to Developer and in an expeditious maner; or (b) to the extent permitted by law , approve the Subsequent Approval without such mitigation measures or conditions being required (where such approval creates the requirement for preparation of an environmental impact report and the adoption of a statement of overrding considerations , City shall prepare such documentation at no cost and expense to Developer and in an expeditious manner). City agrees that , if City is not permitted to impose the cost of mitigation measures or conditions pursuant to Section 3., it shall not instead impose taxes or l7. assessments on the Property to cover any portion of the cost of such mitigation measures or conditions , unless such taxes or assessments are permitted pursuant to Section 3. 3.1 0 Building Regulations . " Building Regulations " consist ofthe City Building, Fire , Plumbing and Mechanical Codes and any ordinances which interpret these codes where such ordinances establish construction standards that are intended to be applied ministerially to the construction of improvements on private property (and public infrastructure). Building Regulations applicable to building and construction throughout the City at the time Developer applies for the applicable permits for construction of any portion of the Project shall be applicable to the building and construction authorized by such permit, exceptif such Building Regulations conflict in any manner with the Vested Elements (as conflctisdefinedin Section 3.4.2 herein). In the event of such conflict , the paricular Building Regulationwhich is in conflct with the Vested Elements shall not apply to or govern development or construction of the Project unless it is determined by City to be required by the most current Uniform Building Code. In the event of a dispute as to whether or not the paricular Building Regulation in conflict with the Vested Elements is required by the most current Uniform Building Code , Developer shall have the right to have the City Council hear such dispute and make a determination evidenced through findings of fact based onsubstantial evidence as to whether such Building Regulation is so required by the current applicable Uniform Building Code. 11 Traffc Cap . The EIR for the Project identifies , as a mitigation measure for cumulative traffic impacts , the imposition of a "traffc cap " to ensure that the traffic generated by the Project and other cumulative traffc growth does notcausetrafficinthe Webster/Posey Tubes ("Tubes ) to exceed level of service (LOS) E.. Implementation of the traffc cap would require development applications for developments other thanthe Project to be reviewed for the number of peak hour trips that they would generate through the Tubes and development would only be approved if it would not exceed the capacity in the Tubes , when added on top .of existing and approved traffc. The Parties agree that, (i) based upon the data in the certified EIR , the traffc anticipated to be generated by the Project at fuUbuild out , when added on top of other existing and approved traffic , is within the traffic cap; (ii) the Project shall notbe required , in connection With any applications for Subsequent Approvals , to demonstrate compliance with the traffc cap; (iii) in considering applications for other developments from and after the Agreement Date. City shall administer the traffic cap such that , regardless of the approval of subsequent development , the traffic cap shall not be applied so as to reduce or diminish the Vested Elements for the Project; and (iv) Developer s obligation to pay Impact Fees shall not be increased despite the increased burden offuture approved development on public facilties. As an example of such administration , but not by way of limitation , City may treat the entire amount oftrafficprojected in the Project EIR to be generated by the Project as approved traffic , regardless of whether the full build out of the Project has occurred atthetimeof subsequent applications for developments other than the Project. ARTICLE 4 ADDITIONAL OBLIGATIONS OF THE PARTIES College of Alameda Coordination.City agrees to use its best efforts to (i) reach agreement with the College of Alameda ("College ) to abandon the College s current access off of West Campus Drive and to have the College instead take access off of 5th Street; l8. and (ii) to coordinate with the College regarding any and all public improvements required in connection with the Project (including without limitation improvements to the intersection of Atlantic Avenue and Webster Street) and/or the Tinker Avenue Extension that may affect property owned or controlled by the College , including without limitation coordinating any necessary right-of-way acquisition from the College with the College and CIC. Conveyance of Backbone Infrastructure and Residential Publicly- Maintained Streets . Upon completion of any and all Backbone Infrastructure and those streets denominated as Streets A , BandT on the Tentative Map ("Residential Publicly-Maintained Streets ), Developer wil convey to City, and City shall accept from Developer, the completed Backbone Infrastructure and Residential Publicly-Maintained Streets , and thereafter City shall maintain the Backbone Infrastructure and Residential Publicly-Maintained Streets. Assessment Financing . To the extent that any assessment districts or community facilities districts are formed to fund the design and construction of the Backbone Infrastructure or the Demolition , Developer shall not be responsible for the paymentof any such assessment or special tax obligations , unless otherwise agreed to by Developer in writing. City or CIC shall be responsible for such payments , unless the Parties mutually agree otherwise in wrting. City agrees to cooperate with Developer in the formation of any assessment districts and/or community facilities districts related to the Project as and when so requested by Developer. 4.4 Eminent Domain Powers . City agrees to cooperate with Developer in implementing aU of the conditions of all Project Approvals (including Subsequent Approvals), including but not limited to consideration of the use of its eminent domain powers in connection with public rights-of-way and public improvements; provided however that the use of eminent domain shall be in the sole and absolute discretion of City and subject to all applicable legal requirements. Public ImprovementslBackbone Infrastructure . City shall use its best efforts to work with CIC and Developer to ensure that all Backbone Infrastructure in connection with the Project that is funded , designed and constructed by or on behalf of the CIC is designed and constrcted in accordance with all applicable City standards , is reviewed and accepted by City in the most expeditious fashion possible and is maintained by City after acceptance including, without limitation, maintenance of the public parks shown in the MasterPlan. City and/or CIC (or their contractor(s)) shallbe responsible for obtaining all permits and approvals necessar for development of the Backbone Infrastrctue. Alameda Unifed School District Coordination . City agrees (i) to implement, in a maner so as to cause no adverse impacts on Developer, the School Agreement (regarding the conveyance of a portion oftheProperttoAUSD for use by AUSD as an elementar school and the payment by City to AUSD of fees for use in constrcting such school to the extent that such fees exceed the fees to be paid by Developer pursuant to the Sterling Act); (ii) to use its best efforts to cause AUSD to implement the obligations identified in the MMRP as obligations of AUSD; (iii) to perform , in a manner so as to cause no adverse impacts on Developer , all of City s obligations pursuant to the School Agreement; and (iv) to ensure that City and/or CIC pays all fees required under the School Agreement in excess of amounts 19. required by the Sterling Act. City agrees not to change the location of the School Site from that set forth in the School Agreementor otherwise modify any other term therein which could have an adverse impact on Developer without the prior written consent of Master Developer (such consent to be at the reasonable discretion of Master Developer). Housing Agreement . City agrees: (i) to implement, in a manner so as to cause no adverse impacts on Developer , the Housing Agreement (regarding the conveyance of the Multi-Family Housing Site , the construction by the Alameda Housing Authority of the thirty- nine (39) units of very low income housing on such property, and the payment by City and/or CIC and the Alameda Point Collaborative of the costs of construction of such units in excess of the fees paid by Developer for very low income housing pursuant to Section 3.3); (ii) to perform , in a manner so as to cause no adverse impacts on Developer , all of City s obligations pursuant to the Housing Agreement; and (iii) not to change the location of the Multi-Family Housing Site from those locations identified in the Housing Agreement or otherwise modify any term in the Housing Agreement which could have an adverse impact on Developer without the prior written consent of Master Developer (such consent to be at the reasonable discretion of Master Developer). Port of Oakland . City agrees to implement , in a manner so as to. cause no adverse impacts on Developer , the Port Agreement (regarding the amount and location of FISC land and/or facilities to be acquired by the Port in connection with its turing basin project); (ii) to use its best efforts to obtain the Port's agreement that the Port will coordinate construction ofthe turning basin with Developer in order to avoid interference with the development of the Proj ect to the maximum extent feasible; and (iii) not to change the location of the Port Property from that set forth in the Port Agreement or otherwise modify any term in the Port Agreement which could have an adverse impact on Developer without the prior written consent of Master Developer (such consent to beat the reasonable discretion of Master Developer). Compliance With Mitigation Monitoring Reporting Program ("MMRP" City shall comply with its obligations identified inthe MMRP,attachedhereto as Exhibit G 10 Subsequent Actions . City covenants that it wil undertake , or cause CIC to undertake and diligently complete: (a) all actions or proceedings necessary or appropriate to the continued fulfillment ofthe objectives of the Alameda Point Improvement Plan ("APIP" BWIP and Project Approvals; and (b) any and all amendments to the General Plan , APIP , and BWIP necessar to ensure on-going consistency among the General Plan , APIP , BWI and the Project Approvals (including, but not limited to , adjustments resulting from the operation of Sections 1.2., 1.2.3 and 3.11 herein). 11 Acquisition and Funding Agreement.City covenants that it shall undertake to enter into the Acquisition and Funding Agreement with Developer and CIC described in the DDA. 12 Maps . City shall file and record , or shall cause CIC to fie and record within the times set forth in the DDA: the Disposition Map that is a condition precedent to Developer s acceptance of Business Park Conveyance Parcell pursuant to Section 4.12.8 of the 20. DDA; and the Tentative Map and the Final Map that is a condition precedent to Developer acceptance of Residential Conveyance Parcell pursuant to Section 4.1l.8 of the DDA. 13 Adjustment in Boundaries.Developer shall have the right to adjust the boundaries of the Conveyance Parcels (as defined in the DDA) at any time through a lot line adjustment in accordance with Section 2.1.1 and 2.1 ofthe DDA. 14 Multi-Family Housing Site . If, pursuant to the Housing Agreement the Multi-Family Housing Site is relocated to the Alternative Multi-Family Housing, the City shall diligently undertake , at the CIC's or the City s expense , all actions or proceedings necessary to issue or obtain aU entitlements including, but not limited to , a General Plan Amendment , that are necessary to include the former Multi-Family Housing Site in the Business Park. Upon the re-entitlement of the former Multi-Family Housing Site as provided above , the former Multi-Family Housing Site shall be added to the Business Park Land and Developer shall have the right to acquire such Multi-Family Housing Site in accordance with the DDA. Developer does not acquire the former Multi-Family Housing Site , then neitherthe CIC nor the City shall use or permit the former Multi-Family Housing Site to be used for land uses that are inconsistent with the Business Park and the Residential Project. ARTICLE 5 ANNUAL REVIEW Annual Review . The annual review required by California GovernentCode Section 6586S.1 and Section 30-95.1 of the Alameda Municipal CodeshaUbe conducted for the puroses and in the maner stated inthose laws as further provided herein. . As par ofthat review , City, Master Developer and any other Developer shall have a reasonable opportunity to assert action(s) which either Party believes have notbeen undertaken in accordance with this Development Agreement , to explain the basis for such assertion , and to receive from the other Par ajustification for the other Party s position with respect to such action(s), and to take such actions as permitted by law. Theproceduresetforth in this article shall be used by Master Developer, any other Developer and Cityin.complyingwiththe anual review requirement. City and Developer agree that as between MasterDeveloper and any other Developer that Master Developer shall be responsible for taking the lead in coordinating submission of documents required pursuant to this Aricle 5 but.that the anual review process is intended to review compliance by Master Developer and any other Developer and City with the obligations under the Development Agreement. The City.and Developeragreethatthe anual review process shall review compliance by Master Developer and anypther Developer and City with the obligations under the Development Agreementbut shall not review compliance with other Project Approvals. A default by any Developer (including Master Developer) under this Development Agreement shall not constitute a default by any other Developer (including MasterDeveloper) and shall notresult in: (a) any remedies imposed against any Developer not in default under this Development Agreement; or (b) termination of this Development Agreement against portions of the Propert to which the default under this Development Agreement does not apply. . 5.Commencement of Process.The Joint Implementation Agreement provides that the Project Administration Offce shall commence the annual review process by notifying 21. City and Master Developer in writing at least forty-five (45) days prior to the anniversary of the Effective Date each year that the annual review process shall commence as specified in Section l. The Project Administration Offce notice shall be deemed to fulfill the applicant's responsibility as stated in Section 30-95.1(a) of the Alameda Municipal Code. Failure of the Project Administration Office to send such notification shall be deemed to. extend the time period in which annual review is required until at least. forty-five (45) days after such notice is provided. Master Developer Compliance Letter . Not less than thirty (30) days aftcr receipt of the Project Administration Offce s notice pursuantto Section 5., Master Developer shall submit a letter to the Director of City s Department of Planning ("Planning Director demonstrating Master Developer s and any other Developer s good faith compliance with the material terms and conditions of this Development Agreement (but not the. other Project Approvals) and shall include in the letter a statement that the letter is being submitted to City pursuant to the requirements of Govemment Code Section 6586S.1. 5.4 Planning Director Review . Within thirty (30) days after the receipt of Master Developer s letter, the Planning Director shall review Master Developer s submission and determine whether Master Developer and any other Developer have , for the year under review , demonstrated good faith compliance with the material terms and conditions of this Development Agreement. Planning Director Compliance Finding . If the Planning Director finds that Master Developer and any other Developer have so complied , the Planning Director shall schedule the anual.review for the next available meeting of the Planing :Board and shall prepare a staff report to the Planning Board which shall include, in addition to Master Developer s letter, (i). a demonstration of City s good faith compliance with the material terms and .conditions ofthis Development Agreement; and (ii) the Planning Director s recommendation that the Planng Board. find Master Developer and any other Developer to be in good faith compliance with the material terms and conditions of this Development Agreement. Planning Director Non-Compliance Finding . IfthePlaning Director (or the Planing Board , on review ofthePlanningDirector srecommendationpursuantto Sec- tion 5.5) finds and determines that there is substantial evidence that Master Developer or any other Developer has not complied in good faith with the material terms and conditions ofthis DevelopmentAgreement and that Master Developer or any other Developer is in material breach of this Development Agreement for the year under review, the Planng Director shalLissueand deliver to the paricular entity allegedly in default (with a copy to Master Developer if Master Developer is not the entity allegedly in defalllt) a wrtten "Notice of I)efault" specifying in detail the grounds therefor, the identity ofthe paricular Developer which is not in compliance and all facts demonstrating substantial evidence of material noncompliance on apoint-by-point basis. In the event that the material breach is an Event of Default pursuant to Aricle? herein , the Paries shall be entitled to their respective rights and obligations. under both Aricles S. and 7 herein except that the particular entity allegedly in default shall be accorded only one of the 60-day cure periods referred to in Sections 5.7 and 7.1 herein. Cure Period . If the Planning Director finds that Master Developer or any other Developer is not in compliance it shall grant a reasonable period of time for the particular 22. entity allegedly in default to cure the alleged default or , at the sole election of the Master Developer , for the Master Developer to cure the alleged default of any other Developer. The Planning Director shall grant a cure period of at least sixty (60) days and shall extend the sixty (60) day period if the particular Developer allegedly in default is proceeding in good faith to cure the noncompliance and additional time is reasonably needed. At the conclusion of the cure period , the Planning Director may either (a) find that Master Developer and any other Developer is in compliance and refer the matter to the Planning Board as specified in Section S.5; or (b) find that a particular Developer is not in compliance and refer the matter to the Planning Board as specified in Section 5. Referral of Default to Planning Board . The Planing Director shall refer the alleged default to the Planning Board if the particular Developer allegedly in default fails.to cure the alleged default to the Planning Director s reasonable satisfaction during the prescribed cure period and any extensions thereto. The Planning Director shall refer. the alleged default to the Planing Board if the particular Developer allegedly in default requests a hearng before the Planing Board. The Planning Director shall prepare a staff report.to .the Planing Board which shall include , in addition to Master Developer s letter , (a) demonstration of City's good faith compliance with the terms and conditions ofthisDevelopment Agreement; (b) the Notice of Default; and (c) a description of any cure undertaken by the particular Developer allegedly in default during the cure period. Delivery of Documents . At least five (5) days prior to any City hearing regarding Master Developer or any other Developer s compliance with this Development Agreement , City shall deliver to Master Developer staff reports and all other relevant documents pertaining to.the hearing on the Project. 10 Planning Board Compliance Finding . If the Planing Board , following a noticed public hearngpursuantto SectionS.S or S., determines that Master Developer and any other Developer are incompliance with the material terms and conditions of this Development Agreement , and that determination is. not appealed to the City Council ,. the anual review shall be deemed concluded. City shall , at Master Developer s request , issue and have recorded a Certificate.of Compliance indicating Master Developer and any other Developer compliance with the termsofthisDevelopment Agreement. 11 Planning Board Non-Compliance Finding; Referralto City Council Ifthe Planng Board, at a properly noticed public hearng pursuantto Section S.50r 5., finds and determnes , on the basis of substantial evidence , that Master Developer or .any other Developer has not complied ingoodfaith with the materialterms or conditions of this Development Agreement and that .aparicular. Developer is in material breach .of this Development Agreement , the paricular Developer in allegeddefaultshallhave areasonable time determined by the Planing Board to meet the reasonable terms of compliance approved by the Planing Board, which time. shall he not less than fifteen (l5)days. If the paricular Developer allegedly in default does not complete the terms of compliance within the time specified , the Planing Board shall forward its recommendations to the City Council and the City Council shall hold a public hearing regarding termination or modification of this Development Agreement with respect to the particular Developer in default. Notification of intention to modify or terminate this Development Agreement with respect to such particular Developer in 23. default shall be delivered to Master Developer and the particular Developer in default (if other than Master Developer) by certified mail containing: (i) the time and place of the City Council hearing; (ii) a statement as to whether City proposes to terminate Of modify this Development Agreement with respect to the particular Developer in default and the terms of any proposed modification; and (iii) any other information reasonably necessary to inform Master Developer and the particular Developer in default (if other than Master Developer) of the nature of the proceedings. At the time of the hearing, Master Developer and the particular Developer in default (if other than Master Developer) shall be given an opportunity to be heard. The City Council may impose conditions to the action it takes as necessary to protect the interests of City; provided that any modification or termination of this Development Agreement pursuant to this provision shall be proportional in severity to the magnitude of the alleged breach and in no event shall termination be permitted exceptin accordance with Aricle 7 herein. 12 Relationship to Default Provisions . The above procedures .shall supplement and shall not replace that provision of Section 7.4 of this Development Agreement whereby either City or Developermay, at any time , assert matters which either Party believes have not been undertaken in accordance with this Development Agreement by delivering a written Notice of Default and following the procedures set forth in said Section 7.4. ARTICLE 6 AMENDMENTS Amendments to Development Agreement Legislation . This Development Agreement has been entered into in reliance upon the provisions oftheDevelopment Agreement Legislation as those provisions existed at the Agreement Date of this Development Agreement. No amendment or addition to those provisions which would materially adversely affect the interpretation or enforceability of this Development Agreement or. would prevent or preclude compliance with one or more provisions of this Development Agreement shall be applicable to this Development Agreement unless such amendment or addition is specifically required by the change in law , or is mandated by a court of competent jurisdiction. In the event of the application of such a change in law , the Paries shallmeetin good faith to determine the feasibility of any modification Of suspension that may be necessar to comply with such new law or regulation and to determine the effect such modification or suspension would have on the puroses and intent of this Development Agreement and the Vested Elements. Following the meeting between the Parties , the provisions of this DevelopmentAgreement may, to the extent feasible, and upon mutual. agreement of the Parties , be modified or suspended but only to the minimurextentnecessar to comply with such new law or regulation. If such amendment or change is permissive (as opposed to mandatory), this Development Agreement shall not be affected by same unless the Paries mutually agree in wrting to amend this Development Agreementto permit such applicability. Amendments to or Cancellation of Development Agreement.This Development Agreement may be amended from time to time or canceled in whole or in part by mutual consent of both Paries or their successors-in-interest or assigns in writing in accordance with the provisions ofthe Development Agreement Legislation and the City Development Agreement Regulations. Review and approval of an amendment to this Development Agreement shall be strictly limited to consideration of only those provisions to be added or modified. No 24. amendment , modification , waiver or change to this Development Agreement or any provision hereof shall be effective for any purpose unless specifically set forth in a writing which expressly refers to this Development Agreement and is signed by the duly authorized representatives of both Parties , their successors or assigns. All amendments to this Developmcnt Agrcement shall automatically become part of the Project Approvals. Operating Memoranda . The provisions of this Development Agreement require a close degree of cooperation between City and Developer and development of the Property hereunder may demonstrate that refinements and clarifications are appropriate with respect to the details of performance of City and Developer. If and when , from time to time during the term of this Development Agreement , City and Developer agree that such clarifications are necessary or appropriate , City and Developer shall effectuate such clarifications through operating memoranda approved by City and Developer, which , after execution , shall be attached hereto as addenda and become a part hereof, and may be further clarified from time to time as necessary withfuture.approval by City and Developer. No such operating memoranda shall constitute an amendment to this Development Agreementrequiring public notice or hearing. The City Manager , in consultation with the City Attorney, shall make the determination on behalf of City whether a requested clarification may be effectuated pursuant to this Section 6.3 or whether the requested clarification is of such a character to constitute an amendment hereof pursuant to Section 6.2 above. The City Manager shall be authorized to execute any operating memoranda hereunder on behalf of City. 6.4 Amendments to Project Approvals (Including Subsequent Approvals) Notwithstanding any other provision of this Development Agreement , Developer may seek and City may review and grant amendments or modifications to the Project Approvals (including the Subsequent Approvals) subject to the following ( except thattheprocedures for amendment of this Development Agreementare set forth in Section 6.2 herein , and the procedures for amendment ofthe DDA are set forth in the DDA): 6.4.Variation Permitted by Master Plan . Upon written application by Developer, the Planing Director or the Director ofthe City of Alameda Departent of Public Works ("Public Works Director ) may agree to certain modifications in the Project , including without limitation varations in configuration , location , use and sequencing, in accordance with the procedures in the Master Plan. City acknowledges that the modifications permitted by the Master Plan subject to the approval ofthe PlaningDirector or the Public Works Director are consistent with the Master Plan and do not constitute an iamend.entto this Development Agreement, the Vested Elements or the Project Approvals. 6.4.Amendments to.Project.Approvals.(lncluding Subsequent Approvals)ProjectApprovals (except for this Development Agreement the amendment process for which is set forth in Section 6.2) maybe amended or modified from time to time , but only at the written request of Developer or with the written consent of Developer (at its sole discretion) and in accordance with Section 3.4. All amendments to the Project Approvals shall automatically become part ofthe Project Approvals. The permitted uses of the Property, the maximum density andlornumber of residential units , the intensity of use , the maximum height and size of the proposed buildings , provisions for reservation or dedication of land for public purposes , the provisions for public improvements and financing of public improvements , and the 25. terms and conditions of all such amendments shall be automatically vested pursuant to this Development Agreement , without requiring an amendment to this Development Agreement. Amendments to the Project Approvals shall be governed by the Project Approvals (including the Joint Implementation Agreement) and the Applicable Rules , subject to Section 3.4. 6.4.Administrative Amendments . Upon the request of Developer for an amendment or modification of any Project Approval , the Planning Director or his/her designee shall determine: (i) whether the requested amendment or modification is minor when considered in light of the Project as a whole; and (ii) whether the requested amendment or modification substantially conforms with the material terms of this Development Agreement. the Planning Directororhis/her designee finds thattherequested amendment or modification is both minor and substantially conforms with the material terms of this Development Agreement and with the approved Development Plan (except if itis the Development Plan which.is subject to the amendment), if applicable , the amendment or modification shall be determined to be an Administrative Amendment " and the Planning Director or his/herdesignee may approve the Administrative Amendment , providing the same public notice required for a public hearing and action but may take action administratively without holding a public hearing. . In those instances where the Planning Director believes an application for administrative amendment wil. generate significant public interest or significant policy issues , the Planning Directormay refer the application to the Planning Board for review and action. Each decision made by the Planing Director pursuant to delegated authority in accordance with this.Sectionshall be placed .as an information item on the Planning Board agenda together with a summary of the Administrative Amendment. Ifthe Planning Director receives a written request fora Planning Board public hearing and action by the Planning Board any time during the review process but no later than ten (1 0) days after the action of the Planning Director , or at the Planning Board meeting for which the information item is on the agenda , then the Administrative Amendment shall be set for Planing Board public hearing and action. Without limiting the generality of the foregoing, lot line adjustments , substitution of comparable landscaping for any landscaping shown on any development plan or landscape plan , variations in the location or installation of utilities and other infrastructure connections and facilities that do not substantially alter design concepts of the Project , amendments to the master sign program , and minor adjustments to the Tentative Map or Disposition Map or the Property legal description shallbe deemed to be minor amendments or modifications. ARTICLE 7 DEFAULT,REMEDIES. AND TERMINATION Events of Default . Subject to any extensions of time by mutual consent of the Paries in wrting, and subj ectto the provisions of Section 11.2 hereof regarding permitted delays and a mortgagee s right to cure pursuantto Section 10.3 hereof, any failure by either Pary to perform any material term or provision of this Development Agreement (not including any failure by Developer to perform any term or provision of any other Project Approvals) shall constitute an "Event of Default ". (i) if such defaulting Party does not cure such failure within sixty (60) days (such sixty (60) day period is not in addition to any (60) day cure period under Section S., if Section 5.7 is applicable) following written notice of default from the other Party, where such failure is of a nature that can be cured within such sixty (60) day period , or (ii) if such failure is not of a nature which can be cured within such sixty (60) day period , the 26. defaulting Party does not within such sixty (60) day period commence substantial efforts to cure such failure , or thereafter does not within a reasonable time prosecute to completion with diligence and continuity the curing of such failure. Any notice of default given hereunder shall specify in detail the nature of the failures in performance which the noticing Party claims constitutes the Event of Default and the manner in which such failure may be satisfactorily cured in accordance with the terms and conditions of this Development Agreement. Any notice of default sentby City to any Developer other than Master Developer shall also be copied to Master Developer. During the time periods herein specified for cure of a failure of performance , the Pary charged therewith shall not be considered to be in default for purposes of (a) termination of this Development Agreement , (b). institution of legal proceedings with respect thereto , or (c) issuance of any approval with respect to the Project. The waiver by either Party of any default under this Development Agreement shall not operate as a waiver of any subsequent breach of the same or any other provision of this Development Agreement. Meet and Confer.During the time periods specified in Section 7.1 for cure of a failure of performance, the Parties shall meet and confer in a timely and responsive maner to attempt to resolve any matters prior to litigation or other action being taken , including without limitation any action in law or equity; provided , however, nothing herein shall be construed to extend the time period for this meet and confer obligation beyond the 60-day cure period referred to in Section 7 .2 (even if the 60-day cure period itself is extended pursuant to Section 7.1 (ii)) unless the Parties agree otherwise in writing. Remedies and Termination . If after notice and expiration of the cure periods and procedures set forth in Sections 7.1 and 7., the alleged Event of Default is not cured, the non-defaulting Pary, at its option , may institute legal or arbitration proceedings pursuant to Sections 7.4 or 7.6 of this Development Agreement and/or terminate this Development Agreement pursuant to Section 7.7 herein. In the event that this Development Agreement is terminated pursuant.to Section 7.7 herein and litigation, mediation or arbitration is instituted which results in a final decision that such termination was improper, then this Development Agreement shall immediately be reinstated as though it had never been terminated. A defaultby any Developer (including Master Developer) under this Development Agreement shall not constitute adefaulfby any other Developer (inc1udingMasterDeveloper) and shall not result in: (a) remedies imposed against any Developer not in default; or (b) termination of the Development Agreement.against portions of the Property to which the default does not apply. Master Developer shall have the right but not the obligation to cure defaults by any other Developer hereunder. Legal Action by Parties 7.4.Remedies . Either Par may, in addition to any other rights or remedies , institute legal action to cure , correct or remedy any default enforce any covenantor agreement herein , enjoin any threatened or attempted violation thereof, enforce by specific performance the obligations and rights of the Parties hereto or to obtain any remedies consistent with the purpose of this Development Agreement. All remedies shall be cumulative and not exclusive of one another, and the exercise of anyone or more of these remedies shall not constitute a waiver or election with respect to any other available remedy. Without limiting the foregoing, Developer reserves the right to challenge in court any change to the Applicable Rules 27. or provision of Future Rules that would conflct with the Vested Elements or the Subsequent Approvals or reduce the development rights provided by the Project Approvals. 7.4.No Damages . In no event shall either Party, or its boards commissions , officers , agents or employees , be liable in damages for any default under this Development Agreement , it being expressly understood and agreed that the sole legal remedy available to either Party for a breach or violation ofthis Development Agreement by the other Party shall be an action in mandamus , specific performance or other injunctive or declaratory relief to enforce the provisions of this Development Agreement by the other Party, or to terminate this Development Agreement. This limitation on damages shall not preclude actions by a Party to enforce payments of monies or the performance of obligations requiring an obligation of money from the other Party under the terms of this Development Agreement including, but not limited to obligations to pay attorneys ' fees and obligations to advance monies or reimburse monies. In connection with the foregoing provisions , each Party acknowledges warrants and represents that it has been fully informed with respect to , and represented by counsel of such Party s choice in connection with, the rights and remedies of such Party hereunder and the waivers herein contained, and after such advice and consultation has presently and actually intended, with full knowledge of such Party s rights and remedies otherwise available atlaworinequity, to waive and relinquish such rights and remedies to the extent specified herein, and to rely to the extent herein specified solely on the remedies provided for herein with respect to any breach of this Development Agreement by the other Party. Effects of Litigation . In the event that litigation is timely instituted , and a final judgment is obtained , which invalidates in its entirety this Development Agreement, then Developer shall have no obligations 'Whatsoever under this Development Agreement. In the event that any payment(s) have been made by or on behalf of Developer to City pursuantto the obligations contained in Section 3., City shall give to Developer a refund of the monies remaining in any segregated City account into which such payment(s) were depQsited, if any, along with interest which has accrued , if any. To theextentthe payment(s) made by or on behalf of Developer were not deposited , or no longer are , in the segregated City account , City shall give Developer a credit for the amount of said payment(s) as determined pursuantto this Section 7. along with interest , if any, that has accrued , which credit may be applied by Developer to any costs or fees imposed by City on Developer in connection with construction or development within or outside the Property. Developer shall be entitled to use all or any portion of the credit at its own discretion until such time. as . the credit has been depleted. Any credits due to Developer pursuant to this Section 7.5 may, at Developer s own discretion, be transferred by Developer to a third party for application by said third party to any costs or fees imposed by City on the third pary in connection with constrction or the development of propert within City, whether or not related to the Project. In the event that Developer has already developed or is developing a portion ofthe Project atthe time of any invalidation of the Development Agreement , then any such refund or credit shall be limited to the amount paid by Developer which exceeds , on a pro rata basis , the proportion and uses of the Property retained by Developer to the entire Property. This Section 7.5 shall survive the termination of this Development Agreement. 28. Arbitration . Upon the mutual agreement by both Parties , any legal action shall be submitted to non-binding arbitration in accordance with rules to be mutually agreed upon by the Parties. 7 Termination. Expiration of Term . Except as otherwise provided in this Development Agreement , this Development Agreement shall be deemed terminated and of no further effect upon the expiration of the Term of this Development Agreement as set forth in Section 1.3. Survival of Obligations . Upon the termination of this Development Agreement as provided herein , neither Party. shall have any fuher right obligation with respecttothe Property under this Development Agreement except with respect to any obligation which is specifically set forth as surviving this Development Agreement. The termination of this Development Agreement shall not affect the validity of the Project Approvals (other than this Development Agreement) or Subsequent Approvals. Termination by City . Notwithstanding any other provision ofthis Development Agreement(except for the release of the Multi-Family Housing Site , the School Site and the Port Propertypursuantto Section 1.2.2 herein), City shall not have the right to terminate this Development Agreement with respect to all or any portion of the Property before the expiration of its Term unless City complies with all termination procedures set forth in the Development Agreement.Legislation and either: (a). there is. an alleged Event of Default by Developer and such Event of Default is not cured pursuant to Aricle 5 herein or this Aricle 7 and Developer has first been afforded an opportunity to be heard regarding the alleged default before the City Council and the Development Agreement is terminated only with respect to that portion ofthe Property to which the default applies; or (b) termination occurs pursuant to Section 9.4 herein. ARTICLE 8 COOPERATION AND IMPLEMENTATION Further Actions and Instruments . The Paries to this Development Agreement shall cooperate with and provide reasonable assistance to the other Part and take all actions necessar to ensurethatthePariesreceive the benefits of this Development Agreement subject to satisfaction ofthe conditions ofthisDevelopmentAgreement. Upontherequest of any Par, the other Par shall promptly execute , with aCknowledgmentor affidavitif reasonably required, .and file or record such required instrents and writings and take any actions as may be reasonably necessarunderthetenns ofthisDevelopment Agreement to car out the intent and to fulfill the provisions of this Development Agreement or to evidence or consummate the transactions contemplated by this Development Agreement. Regulation by Other Public Agencies.It is acknowledged by the Parties that other public agencies not within the .cntrol of City may possess authority to regulate aspects of the development of the Property separately from or jointly with City, and this Development Agreement does not limit the authority of such other public agencies. Nevertheless , City shall be 29. bound by, and shall abide by, its covenants and obligations under this Development Agreement in all respects when dealing with any such agency regarding the Property. Other Governmental Permits and Approvals . Developer or City (whichever is appropriate) shall apply in a timely manner for the permits and approvals which may be required from other governental or quasi-governental agencies having jurisdiction over the Project as may be required for the development of, or. provision of services to , the Project. City shall cooperate with Developer in its endeavors to obtain such permits and approvals and shall , from time to time , at the request of Developer , attempt with due diligence and in good faith to enter into binding agreements with any such entity to ensure the availability of such permits and approvals , or services , at each stage of the development of the Project. 8.4 Cooperation in the Event of Legal Challenge . In the event of any legal action instituted by a third party challenging the validity of any provision ofthis Development Agreement , the procedures leading to its adoption , or the issuance of Project Approvals (including the Subsequent Approvals) for the Project , Developer andiCity each shall have the right , in its sole discretion , to elect whether or not to defend such action, to select its own counsel (and pay for such counsel at its own expense), and to control its paricipation and conduct in the litigation in all respects permitted by law. If both Parties elect to defend, the Parties hereby agree to affrmatively cooperate in defending said action and to executeajointdefense and confidentiality agreement in order to share and protect information , under thejoint defense privilege recognized under applicable law. As part of the cooperation in defending an action City and Developer shall coordinate their defense in order to make the most effcient use of legal counsel andto share and protect information. Developer and City shall each have sole discretion to terminate its defense at any time. City retains the option to select and employ independent defense counsel at its own expense. If, in the exercise of its sole discretion , . Developer agrees to pay for defense counsel for City, Developer shall jointly participate in the selection of such counsel. Notwithstanding the provisions of California GovernmentCode Section 66474. City shall not require , as a condition for a tentative map application or approval , or any other applications for Project Approvals , that Developer defend , indemnify or hold harmless the City from any claim , action or proceeding against the City to attck, set aside , void or annul a City approval concerning a subdivision. Revision to Project . In the event of a court order issued as a result of a successful legal challenge , City shall , to the extent permitted bylaw or court order , in good faith seek to comply with the court order in such a manner as wil maintain the integrty oftheProject Approvals (including the Development Agreement and the Subsequent Approvals)and avoid or minimize to the greatest extentpossible (i) any impact to the development ofthe Project as provideci for in , and contemplated by, the Vested Elements , or (ii) any conflct with the Vested Elements or frstrationofthe intent or purpose oftheVested Elements. ARTICLE 9 TRANSFERS AND ASSIGNMENTS Right to Assign . Developer shall have the right to sell , assign or transfer in whole or in part its rights , duties and obligations under this Development Agreement , to any person or entity at any time during the term ofthis Development Agreement without the consent 30. of City; provided that those rights and obligations set forth herein as rights and obligations of the Master Developer may not be so sold , assigned or transferred , except as permitted by the DDA for assignment by Master Developer of its rights and obligations; provided , however, in no event shall the rights , duties and obligations conferred upon Developer pursuant to this Development Agreement be at anytime so transferred or assigned except through a transfer of the Property in accordance with the DDA. In the event of a transfer of a portion of the Property, Developer shall have the right to transfer its rights , duties and obligations under this Development Agreement which are applicable to the transferred portion , and to retain all rights , duties and obligations applicable to the retained portions ofthe Property. Release upon Transfer . Upon the sale , transfer or assignment of Developer s rights and interests under this Development Agreement pursuant to Section 9. Developer shall be released. from its obligations and liabilities under this Development Agreement with respectto that portion of the Property sold , transferred or assigned and any subsequent default or breach with respect to the transferred or assigned rights and/or obligations shall not constitute a default or breach with respect to the retained rights and/or obligations under this Development Agreement , provided that (a) Developer has provided to City notice of such transfer, and (b) the transferee executes and delivers to City a wrtten agreement in which (i) the name and address of the transferee is set forth and (ii) the transferee expressly and unconditionally assumes all of the obligations of Developer under this Development Agreement with respect to that portion of the Property sold, transferred or assigned. Failure to deliver a wrtten assumption agreement hereunder shall not affect the running of any covenants herein withthe land, as provided in Section 9.3 below , nor shall such failure negate , modify or otherwise affect the liability of any transferee pursuant to the provisions of this Development Agreement. Covenants Run with the Land . All of the provisions , agreements , rights powers , standards , terms , covenants and obligations contained in this Development Agreement shall be binding upon the Paries and their respective successors (by merger, consolidation , or otherwise) and assigns , administrators , representatives , lessees , and all of the persons or entities acquiring the Property or any portion thereof, or any interest therein, whether by operation of law or in any m.aner whatsoever, and shall inure to the benefit ofthe Paries and their respective successors (by merger, consolidation or otherwise) and assigns. All of the provisions of this Development Agreement shallbeenforceable as equitable servitudes and constitute covenants rung with the landpursuanttoapplicable law , including but notlimited to , Section1468of the Civil Code ofthe. State of California. .. Each. covenant to do or refrain from doing some act on the Property hereunder (a ) is for the benefitofsuch Propert and is. a burden upon such Propert, (b) ruswithsllchPropert, (c)is binding upon each Par and each successive owner during its ownership of such Propert or any portion thereof, and (d) each person or entity having any interesttherein derived in any maner through any owner of such Propert, or any portion thereof, and shall benefit the Property hereunder, and each other person or entity succeeding to an interest in such Property. 9.4 Community Improvement Commission Exercise of Right of Reverter/Non-Transfer Under Disposition and Development Agreement. 31. 9.4.Termination: Allocation of Rights and Obligations . In certain circumstances identified in the DDA: (i) the CIC has aright to terminate the DDA and cease to transfer certain untransferred portions of the Property to Developer; (ii) Developer has the right to terminate the DDA and cease acquisition of certain untransferred portions of the Property; or (iii) the CIC has a right of reverter with respect to certain portions of the Property that have been purchased by Developer and a right not to transfer certain remaining portions of the Property that have not been purchased by Developer at the time of exercise of the right. In certain circumstances , the DDA grants Developer a right offirst negotiation to repurchase/purchase certain portions of the Property. In the event that the CIC or Developer terminates the DDA with respect to any portion of the Property or the CIC exercises its right of reverter/non-transfer with respect to any portion of the Property, and Developer does not repurchase/purchase such portion of the Property to the extent that Developer has such rights undertheDDA , then (a) this Development Agreement shall terminate as to such portion of the Property as to Which the DDA was terminated, and (b) City and Developer shall cooperate in good faith to allocate the rights and obligations of Developer under the Project Approvals (including this Development Agreement and Subsequent Approvals).to the portions of the Property retained by Developer (or which Developer has the right to acquire) based.on the proportion that the size and uses of the Property retained by Developer (or which Developer has the right to acquire) bear to. the entire Property. In the event that Developer does repurchase/purchase portions of the Property (to the extent Developer has such rights under the DDA) and anew Disposition and Development Agreement is entered into for such portions of the Property, then this Agreement is not terminated as to such portions of the Property, but the Parties. shall meet and confer to determine if amendments to this Agreement are necessary in light ofthe new Disposition and Development Agreement in order to preserve the concepts agreed upon in this Agreement. 9.4.Responsibility for Additional CEQA Review and Conditions: Limitation on Uses.The Parties acknowledge that , if(i)CICexercisesitsrightofreverter/non- transfer astoanyportionoftheProperty, (ii) Developer does not repurchase/purchase such portionoftheProperty ,and (iii) City subsequently approves development of the reverted/non- transferred portion ofthe Property by City or any third party,itis possible that such approval could constitute a changeimcircumstances that would trigger additional CEQA review of discretionar Subsequent Approvals , which could result in the imposition of additional mitigation measures or conditions on the Project. In the eventthattheCity s approval of development of the reverted/non-transferred Property triggers additional CEQA review of discretionary Subsequent Approvals , then (a) City shall undertake the preparation oftheCEQA documentation and either CityorCIC shall bear the fulLcost of preparation and review of such CEQA documentation; (b) the scope of such documentation shan be focused , to the extent possible consistentwithCEQA on the specific subject matter of the changed circumstance; (c) City or CICshall be responsible (or shallfind.another entity, not Developer, who shall be responsible) for the full cost and implementation of any mitigation measures or conditions imposed on the Subsequent Approval as a result of such CEQAprocess or inthealtemative City, to the extent permitted by law , shall approve the Subsequent Approval without such mitigation measures or conditions being required (where such approval creates the requirement for preparationofafull environmental impact report and the adoption ofa statement of overrding considerations , City orCIC shall prepare such documentation atno cost and expense to Developer and in an expeditious manner); and (d) neither City nor CIC shall designate the 32. reverted portion of the Property for any land uses which are incompatible with the Project on the portions of the Property which Developer owns or has the right to own. ARTICLE 10 MORTGAGEE PROTECTION; CERTAIN RIGHTS OF CURE 10.1 Mortgagee Protection . This Development Agreement shall be superior and senior to any lien placed upon the Property or any portion thereof after the date of recording this Development Agreement , including the lien of any deed of trust or mortgage ("Mortgage Notwithstanding the foregoing, no breach hereof shall defeat , render invalid , diminish or impair the lien of any Mortgage made in good faith and for value , but all of the terms and conditions contained in this Development Agreement shall be binding upon and effective against and inure to the benefit of any person or entity, including any deed of trust beneficiar or mortgagee Mortgagee ) who acquires title to the Property, or any portion thereof, by foreclosure , trustee sale , deed in lieu of foreclosure , or otherwise; provided , however , prior to the issuance of a Certificate of Completion " under the DDA with respect to such portion of the Property, the Mortgagee must be a permitted mortgagee under the DDA. 10.Mortgagee Not Obligated . Notwithstanding the provisions of Section 10.1 above , no Mortgagee shall have any obligation or duty under this Development Agreement to perform Developer s obligations or other affrmative covenants of Developer hereunder; provided , however, that a Mortgagee shall not be entitled to devote the Property to any uses or to constrct any improvements thereon other than those uses or improvements provided for or authorized by this Development Agreement .orby the Project Approvals (including the Subsequent Approvals) and Applicable Rules. 10.Notice of Default to Mortgagee; Right of Mortgagee to Cure . IfCity receives a notice from a Mortgagee requesting a copy of any Notice of Default given to Developer hereunder and specifying the address for service thereof, then City shall deliver to such Mortgagee, concurrently with service thereon to Developer , any notice given to Developer with respect to..any claim by City that Developer has committed a default, and if City makes a determination of noncompliance hereunder , City shall likewise serve notice of such noncompliance on such Mortgagee concurrently with service thereof on Developer. Each Mortgagee shall have the right (but not the obligation) durng the same period available to Developer to cure or remedy, ofto commence to cure or remedy, the Event of Default claimed or the areas of noncompliance set forth in City s notice. 10.4 No Supersedure . Nothing in this Aricle 10 shall he deemed to supersede or release a Mortgagee or modify a Mortgagee ' s obligations under any subdivision improvement agreement.or other obligation incurred with respect to the Project outside this Devel()pment Agreement , nor shall any provision of this Aricle 1 o constitute an obligation of City to such Mortgagee , except as to the notice requirements of Section 10. 10.Technical Amendments to this Article 10.City agrees to reasonably consider and approve technical amendments to the provisions of this Aricle. 1 0 which are required by lenders for the acquisition and construction of the improvements on the Property or 33. any refinancing thereof and to otherwise cooperate in good faith to facilitate Developer negotiations with lenders. ARTICLE MISCELLANEOUS PROVISIONS 11.1 Limitation on Liabilty . Notwithstanding anything to the contrary contained in this Development Agreement , in no event shall: (a) any parner , offcer, director member, shareholder, employee or agent of Developer or any general partner of Developer or its general parners be personally liable for any breach of this Development Agreement by Developer, or for any amount which may become due to City under the terms .ofthis Development Agreement; or (b) any member, offcer , agent or employee of City be personally liable for any breach of this Development Agreement by City or for any amount which may become due to Developer under the terms of this Development Agreement. 1l.2 Force Majeure . The Term of this Development Agreement and the time within which Developer shall be required to perform any act under this Development Agreement shall be extended by a period of time equal to the number of days during which performance of such act is delayed unavoidably and beyond the reasonablecontrolofthe Pary seeking the delay by strikes , lock-outs , Acts of God , inclement weather, failure or inability to secure materials or labor by reason of priority orsimilarregulations or order of any governental or regulatory body, changes in local , state or federal laws or regulations , enemy action , civil disturbances , fire unavoidable casualties , or any other cause beyond the reasonable control of Developer which substantially interferes with canyingout the development of the Project. Such extension(s) of time shall not constitute an Event of Default and shall occur aUhe request of any Party. addition , the Term of this Development Agreement and any subdivision map or any of the other Project Approvals shall not include any period of time during which (i) a development moratorium including, but not limited to , a water or sewer moratorium , is in .effect; (ii) the actions of public agencies that regulate land use , development or the provision of services to the Property prevent , prohibit or delay either the construction , funding or development of the Project or the conveyance of the Property to Developer in accordance with the DDA; (iii) the CIC fails to fund Demolition or the Backbone Infrastructurein accordance with the DDA , or to perform its obligations pursuant to the terms of the DDA orthe Cityandlorthe CIC fails to perform their obligations under the Joint Implementation Agreement; or (iv) there is any mediation , arbitration litigation or other administrativeorjudicialproceeding pending involving the Vested Elements , . or Project Approvals (including the Subsequent Approvals). The Term ofthe Proj ect Approvals (including the Development Agreement) shall therefore be extended by the length of any development moratorium or similar action; the amount oftimeany actions of public agencies prevent , prohibit or delay the construction , funding or developmentofthe Project or the conveyance of the Property to Developer in accordance with the DDA;theamount oftimeany failure by CIC to perform its obligations under theDDA or failure by the City andlorthe CIC to perform their obligations under the Joint Implementation Agreement prevents , prohibits or delays the construction , funding or development of the Project or the conveyance of the Property to the Developer in accordance with the DDA; or the amount of time to finally resolve any mediation , arbitration , liigation or other administrative or judicial proceeding involving the Vested Elements , or Project Approvals (including the Subsequent Approvals). Furthermore , in the event the issuance of a building permit for any part of the Project is delayed as a result of 34. Developer s or City s or CIC's inability to obtain any other required permit or approval , then the Term of this Development Agreement shall be extended by the period of any such delay. 11.Notices. Demands and Communications Between the Parties . Formal written notices , demands , correspondence and communications between City and Developer shall be suffciently given if delivered personally (including delivery by private courier), dispatched by certified mail , postage prepaid and return receipt requested , or delivered by nationally recognized overnight courier service , or by electronic facsimile transmission followed by delivery of a "hard" copy to the offces of City and Developer indicated below. Such written notices , demands , correspondence and communications may be sent in the same manner to such persons and addresses as either Party may from time-to-time designate in writing at least fifteen (IS) days prior to the name and/or address change and as provided in this Section 11.3. City:City of Alameda 2263 Santa Clara Avenue Alameda , CA 94S0 Attn: City Manager with copies to:City of Alameda 2263 Santa Clara Avenue Alameda , CA 94501 Attn: City Attorney City of Alameda 2263 Santa Clara Avenue Alameda , CA 94S01 Attn: Planing Director City of Alameda 2263 Santa Clara Avenue Alameda , CA 94501 Attn: Proj ect. Administration Developer:Catellus Development Corporation 201. Mission Street San Francisco, CA. 94105 Attn:.. General Counsel . with copies to:Catellus Residential Group 4000 Westerly Place Newport Beach CA 92660 Attn: Timothy Unger, Executive Vice-President Catellus Commercial Group 201 Mission Street San Francisco , CA 94105 Attn: Don Little 35. Brobeck , Phleger & Harrson LLP One Market , Spear Street Tower San Francisco , CA 94105 Attn: Susan R.Diamond , Esq. If Developer is any entity other than Master Developer , a copy of all notices to Developer shall also be delivered to Master Developer at the following address: Catellus Development Corporation 201 Mission Street San Francisco , CA 94105 Attn: General Counsel Notices personally delivered shall be deemed to have been received upon delivery. Notices delivered by certified mail , as provided above , shall be deemed to have been given and received on the first to occur of (i) actual receipt by any ofthe addresses designated above as the Party to whom notices are to be sent , or (ii) within five (5) days after a certified letter containing such notice , properly addressed , with postage prepaid , is deposited in the United States mail. Notices delivered by overnight courier service as provided above shall be deemed to have been received twenty-four (24) hours after the date of deposit. Notices delivered by electronic facsimile transmission shall be deemed received upon receipt of sender of electronic confirmation of delivery, provided that a "hard" copy is delivered as provided above. 11.4 No Joint Venture or Partnership . Nothing contained in this Development Agreement or in any document executed in connection with this Development Agreement shall be construed as making City and Developer joint venturers or partners. 11.5 Severabilty . If any terms or provision( s) of this Development Agreement or the application of any term( s) or provision( s) of this Development Agreement to a particular situation , is (are) held by a court of competent jurisdiction to be invalid , void or unenforceable the remainder of this Development Agreementor the application of this Development Agreement to other situations , shall remain in full force and. effect unless amended or modified by mutual consent of the Parties; provided that , if the invalidation , voiding or enforceability would deprive either City or Developer of material benefits derived from this Development Agreement , or make performance under this Development Agreement unreasonably difficult , then City and Developer shall meet and confer and shall make good faith efforts to amend or modify this Development Agreement in a maner thatismutuallyacceptable to City and Developer. Notwithstanding the foregoing, if any material provision of this Development Agreement , or the application of such provision to a paricular situation , is held to he invalid , void or unenforceable , Developer (in its sole and absolute discretion) may terminate this Development Agreement by providing written notice of such termination to City. 11.Section Headings . Aricle and Section headings in this Development Agreement are for convenience only and are not intended to be used in interpreting or construing the terms , covenants or conditions of this Development Agreement. 36. 11. 7 Construction of Agreement.This Development Agreement has been reviewed and revised by legal counsel for both Developer and City, and no presumption or rule that ambiguities shall be construed against the drafting Party shall apply to the interpretation or enforcement of this Development Agreement. 11.8 Entire Agreement.This Development Agreement is executed in duplicate originals , each of which is deemed to be an original. This Development Agreement consists of pages including the Recitals , and exhibits and U appendices , attached hereto and incorporated by reference herein , which , together with the Project Approvals , constitute the entire understanding and agreement of the Parties and supercedes all negotiations or previous agreements between the Paries with respect to all or any part of the subject matter hereof. The exhibits and appendices are as follows: 37. Exhibit A Legal Description of the Property Exhibit B Map of the Property Exhibit C Form of Release Exhibit D Public Benefits Exhibit E Joint Implementation Agreement Exhibit F Impact Fees Exhibit G Mitigation Monitoring and Reporting Program Appendix I Definitions 11.9 Estoppel Certifcates . Either Pary may, at any time during the Term of this Development Agreement , and from time to time , deliver written notice to the other Party requesting such Party to certify in writing that , to the knowledge ofthe certifying Pary, (a) this Development Agreement is in full force and effect and a binding obligation of the Paries (b) this Development Agreement has not been amended or modified either orally or in writing, or if amended , identifying the amendments , and (c) the requesting Pary is not in default in the performance of its obligations under this Development Agreement , or if in default , to describe therein the nature and amount of any such defaults. The Pary receiving a request hereunder shall execute and return such certificate or give a written, detailed response explaining why it will not do so within twenty (20) days following the receipt thereof. The failure of either Party to provide the requested certificate within such twenty (20) day period shall constitute a confirmation that no default exists. Either the City Manager or the Planning Director shall have the right to execute any certificate requested by Developer hereunder. City acknowledges that a certificate hereunder may be relied upon by transferees and Mortgagees. 11.10 Execution and Recordation . Pursuant to California Governent Code Section 65868., within ten (10) days after the Effective Date, the City Manager shall execute this Development Agreement on behalf of City and the City Clerk shall record this Development Agreement with the Alameda County Recorder. Thereafter, if this Development Agreement is terminated , modified or amended pursuant to Aricle 1 , Aricle 5 , Aricle 6 , Aricle 7 or Section 9.4 of this Development Agreement , the City Clerk shall record notice of such action with the Alameda County Recorder. 11.11 No Waiver . No delay or omission by either Par in exercising any right or power accruing upon non-compliance or failure to perform by the other Party under any of the provisions of this Development Agreement shall impair any such right or power or be construed to be a waiver thereof. A waiver by either Party of any of the covenants or conditions to be performed by the other Party shall be in writing and signed by a duly authorized representative of the Par against whom enforcement of a waiver is sought , and any such waiver shall not be construed as a waiver of any succeeding breach or non-performance ofthe same or other covenants and conditions hereof. 38. 11.12 Time Is of the Essence . Time is of the essence for each provision of this Development Agreement for which time is an element. 11.13 Applicable Law . This Development Agreement shall be construed and enforced in accordance with the laws of the State of California. 11.14 Attorneys ' Fees . Should any legal action be brought by either Party because of a breach ofthis Development Agreement or to enforce any provision of this Development Agreement , the prevailing party shall be entitled to reasonable attorney s fees and such other costs as may be found by the court or arbitrator. 11.15 Third Party Beneficiaries . Except as otherwise provided herein , City and Developer hereby renounce the existence of any third party beneficiary to this Development Agreement and agree that nothing contained herein shall be construed as giving any other person or entity third party beneficiary status. Notwithstanding the above , City and Developer agree that Developer is a third party beneficiary of the Joint Implementation Agreement. 11.16 Constructive Notice and Acceptance . Every person who now or hereafter owns or acquires any right , title or interest in or to any portion of the Property is and shall be conclusively deemed to have consented and agreed to every provision contained herein whether or not any reference to this Development Agreement is contained in the instrument by which such person acquired an interest in the Property. 11.17 Counterparts . This Development Agreement may be executed by each part on a separate signature page , and when the executed signature pages are combined , shall constitute one single instrument. 11.18 Authority . The persons signing below represent and warrant that they have the authority to bind their respective Party and that all necessar board of directors ' , shareholders , partners ' , city councils , redevelopment agencies ' or other approvals have been obtained. 39. IN WITNESS WHEREOF , City and Developer have executed this Development Agreement as of the date first set forth above. Developer CATELLUS DEVELOPMENT CORPORATION, a Delaware corporation By: Name: Its: By: Name: Its: City" CITY OF ALAMEDA, a California corporation By: Name: Its: ATTESTATION: By: APPROVED AS TO FORM: , City Clerk By:, City Attorney 40. STATE OF CALIFORNIA COUNTY OF ) ss.On , - ' before me Notary Public , personally appeared , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her authorized capacity and that by his/her signature on the instrument the person , or the entity upon behalf of which the person acted , executed the instrument. WITNESS my hand and offcial seal. Signature (SEAL) COUNTY OF ) ss. STATE OF CALIFORNA On ' before me Notar Public , personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrment and acknowledged to me that he/she executed the same in his/her authorized capacity and that by his/her signature on the instrument the person, or the entity upon behalf of which the person acted , executed the instrent. WITNSS my hand and offcial seal. Signature (SEAL) 41. STATE OF CALIFORNIA COUNTY OF ) ss.On , - ' before me Notary Public , personally appeared , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in hislher authorized capacity and that by his/her signature on the instrument the person , or the entity upon behalf of which the person acted, executed the instrument. WITNESS my hand and offcial seal. Signature (SEAL J 42. EXHIBIT A LEGAL DESCRIPTION OF THE PROPERTY REAL PROPERTY lying in the County of Alameda, described as follows: EXHIBIT B MAP OF THE PROPERTY EXHIBIT C FORM OF RELEASE RECORDING REQUESTED AND WHEN RECORDED MAIL TO: FOR RECORDER'S USE ONLY City Clerk City of Alameda 2263 Santa Clara Avenue Alameda , CA 94501 Recorded for the Benefit of The City of Alameda Pursuant to Governent Code Section 6103 RELEASE This Release is entered into by and among Catellus Development Corpor tion, a Delaware corporation ("Developer ), the City of Alameda , a municipal corporation organized under the laws of the State of California (the "City ), and the Community Improvement Commission of the City of Alameda, a public body, corporate and politic (the "CIC"), to the following facts: A. Developer and the City entered into a Development Agreement dated as of (the "DA"), recorded as in the Official Records of the Alameda County Recorder , relating to certain real property as described more paricularly therein (the Propert" B. Developer and the CIC entered into a Disposition and Development Agreement datedas of (the "DDA"), recorded as in the Official Records of the Alameda County Recorder, for the disposition by the CIC and acquisition by Developer ofthe Propert; C. Under the terms of the DAand the DDA , upon the occurrence of certain events , the paries agreed to release certain portions of the Propert from the effect of the DA and the DDA; NOW THEREFORE, for good and valuable consideration, the paries agree as follows:1. Pursuant to Section of the DA and Section of the DDA, Developer the City and the CIC agree to release the portion ofthe Propert described in Exhibit A, attached hereto , from the effect ofthe DA and the DDA.2. Except as modified by this Release , the DA and the DDA shall continue in full force and effect. IN WITNESS WHEREOF , the undersigned have executed this Release as of the date first above written. Dated:DEVELOPER" CATELLUS DEVELOPMENT CORPORATION , a Delaware corporation By: Name: Title: By: Name: Title: Dated:CIC" Secretary COMMUNTY IMPROVEMENT COMMISSION OF THE CITY OF ALAMEDA, a public body, corporate and politic ATTESTATION: By: By: APPROVED AS TO FORM:Executive Director By:By: General Counsel Secretary Dated:CITY" ATTESTATION:CITY OF ALAMEDA, a California municipal corporation By: City Clerk By: Name: Title: APPROVED AS TO FORM:By: Name: Title: By: EXHIBIT D PUBLIC BENEFITS The Public Benefits of the Project are as follows: Eliminating blighting influences and correcting environmental deficiencies in the Project area , including, but not limited to , abandoned buildings , incompatible land uses depreciated or stagnant property values , and inadequate or deteriorated public improvements , facilities , and utilities. Replanning, redesigning, and developing undeveloped and underdeveloped areas that are improperly utilized to achieve a balanced mix of land uses and create a vibrant new neighborhood in City. Expanding and improving the community s supply of housing through the installation of needed site improvements and the construction of up to 500 market-rate units , with inclusionar housing, consistent with the existing density and character of City and with existing City policies and standards. Providing diversity in housing opportunities through compliance with Community Improvement Commission inclusionary housing policy. Strengthening the economic base of the Project area and the community by adding approximately 1.3 millon gross square feet of business park and supporting retail space. Achieving job creation and economic development. Actively seeking and promoting business and light industries that provide significant sustainable employment , including a mix of light industres emphasizing opportnities for technology research and development (R&D) and technology transfer. Facilitating the emergence of commercial-industrial sectors , including those expected to emerge or expand due to their proximity to the new business park site, through improvement of transportation access to commercial and industral areas , improvement of safety within the Project area, and the installation of needed site improvements to stimulate new commercial and industral expansion , employment, and economic growth. Maximizing tax increment and developing other fuding mechanisms in order to pay for the public investment in infrastructure required for economic development in the Project area. Emphasizing employment and a mix of economic development opportunities that complement economic development strategies in other pars of City and promoting a jobs-housing balance to the extent practicable. Seamlessly integrating the Project site into City by: emphasizing Mixed Use development; ensuring land use compatibility within and surrounding the Project site; creating the same "small town " character on the Project site which is highly valued by the existing community; achieving the same human-scale , tree-lined character of neighborhood walkable streets found throughout the existing City; reflecting the grid street pattern that is characteristic of the existing City; minimizing through-traffic on minor residential streets. Reducing the impact of the automobile and energy consumption by: (1) facilitating public transit opportunities to and within the Project area to the extent feasible; and (2) providing a system of bikeways , parks , and pedestrian paths to facilitate access to parks recreational areas and the waterfront from all parts of western Alameda. Protecting and improving the waterfront by enhancing views of water and public access to the waterfront in all development and creatively encouraging the usage of the waterfront. Providing adequate vehicular access to and within the Project site without significant adverse effects on access to existing areas of City. Providing a school site to further educational opportunities in the former NAS Alameda and FISC site and coordinating educational plans and development with existing educational organizations including the College of Alameda and the Alameda Unified School District. Providing parks within the Project site to service the needs of the residents of this primarly residential district. Promoting energy effciency in facility development , utilizing recycled materials to the extent feasible , and applying low water demand techniques in all new development including all landscape development. EXHIBIT E JOINT IMPLEMENTATION AGREEMENT EXHIBIT F IMPACT FEES The following Impact Fees shall apply to the Project as provided in Section 3.3 of the Development Agreement: TSM Pro ram:$ 0.19 per square foot of offce or research and development space as provided in Condition of the Master Plan Resolution. Public : As provided in Condition of the Master Plan Resolution. School Fee : The Sterling Act School Impact Fee: (a) Residential: $1.93 per square foot; (b) Office/R&D: $ 0.31 per square foot. Affordable Housin Fees : (a) Residential: $6000.00 per residential unit (DDA section 7.2); (b) Retail: $l.50 per square foot; (c) Office/Research and Development: $3.00 per square foot. Construction Improvement Tax : One percent (1 %) of construction cost of all uses. DwellinE Unit Tax : $ 1092.00 per residential unit. Sewer Connection Fee : $ 670.00 per structure for Residential or Office/R&D. Police and Fire : (a) Residential: $ 0.155 per square foot; (b) Offce/R&D: .15 per square foot. Commencing on January 1st of the year after the Effective Date of the Development Agreement , if the City of Alameda Master Fee resolution ("Master Fee Resolution ) has been revised since the Effective Date , then the above fees (excepting the School Fee Public Ar Fee , the Residential Affordable Housing Fee and the Construction Improvement Tax) will increase by the lesser of the percentage increase reflected in the Bay Area Consumer Price Index for the period between the Effective Date and that January 1st or the increase for such fees provided in the most recently adopted Master Fee Resolution , if applicable. Each January 1st thereafter , ifthe Master Fee Resolution was revised during the prior year , then the above fees (excepting the School Fee , the Residential Affordable Housing Fee , Public Ar Fee and the Construction Improvement Tax) wil increase by the lesser of the percentage increase reflected in the Bay Area Consumer Price Index for that year or the increase provided in the Master Fee Resolution for such fees adopted during the prior year. If the Master Fee Resolution is adopted or amended less frequently than annually, then the above fees (excepting the School Fee , the Residential Affordable Housing Fee , the Public Ar Fee and the Construction Improvement Tax) will only increase on the January 1st of the years immediately after the Master Fee Resolution was revised and by an amount equal to the lesser of the increase provided in the Master Fee Resolution for such fees or the cumulative percentage increase in the Bay Area Consumer Price Index since the last increase in the above fees (except the School Fee , the Residential Affordable Housing Fee , the Public Ar Fee and the Construction Improvement Tax). The Sterling Act School Impact Fee will not increase by the Bay Area Consumer Price Index , and instead will increase by the amount provided for in said Act or subsequently by the State Legislature. The Residential Affordable Housing Fees will escalate by the Engineering News Record rate as provided in Section 7.2 of the DDA. EXHIBIT G MITIGATION MONITORING AND REPORTING PROGRA APPENDIX I DEFINITIONS Acquisition and Funding Agreement Section 1.5. Administrative Amendment Section 6.4. Agreement Page 1 Agreement Date Page 1 APIP Section 1.S. Applicable General Plan Section 3. Applicable Rules Section 3. Applicable Zoning Ordinance Section 3. AR - Recital C AUSD Recital C Backbone Infrastrcture Recital D Building Regulations Section 3. BWI Section l.S.3 BWI Amendments Section 1.S. CEQA Recital H CIC Recital C City Section 1. City Council Recital K City Development Agreement Regulations Recital B College Section 4. DDA Recital C Demolition Recital D Developer Section 1. Development Agreement Page 1 Development Agreement Legislation Recital A Development Agreement Regulations Recital B Disposition Map Section 1.S. East Housing Recital C Effective Date Section 1. EIR Recital H Enacting Ordinance Recital K Event of Default Section 7. Federal Law Section 3.4. FISC Recital C Future Rules Section 3.4.2 General Plan Recital G General Plan Amendments Section 1. Governent to Governent Map Section 1.5. Housing Agreement Section 1.2. Impact Fees Section 3. Joint Implementation Agreement Section 1.S. Master Developer Section l. Master Plan Section 1.5. MMRP Section 4. Mortgage Section 10. Mortgagee Section 10. Multi-Family Housing Section 1.2. Multi-Family Housing Site Section 1.2. NAS Alameda Recital C Navy Recital C Notice of Default Section 5. Paries Page 1 Party Page 1 Planning Board Recital K Planning Director Section S. Port Recital C Port Agreement Section 1. Port Property Section 1. Processing Fees Section 3. Project Recital D Project Administration Office Section 3. Project Approvals Section 1.5 Propert Recital C Public Benefits Section 2. Public Works Director Section 6.4. Residential Publidy-Maintained Streets .- Section 4.2 School Agreement Section 1. School Site Section 1.1. State Law Section 3.4.3 Subsequent Approvals Section 1.5. Tentative Map Section 1.5. Term Section 1.3. Tubes Section 3. UP Right of Way Recital C Vested Elements Section 3. Zoning Amendments Section 1. ***** , the undersigned, hereby certify that the foregoing Ordinance was duly and regularly adopted and passed by the Council ofthe City of Alameda in special meeting assembled on the 6th day of June , 2000 , by the following vote to wit: AYES:Councilmembers Daysog, DeWitt , Johnson and Kerr - 4. NOES:None. ABSENT:Mayor Appezzato - l. ABSTENTIONS:None. IN WITNESS , WHEREOF , I have hereunto set my hand and affxed the official seal of said City this 7th day of June , 2000. Di e Felsch , City Clei'k City of Alameda