ORD 515U ORDINANCE NO. 515U
AN ORDINANCE OF THE CITY OF RANCHO PALOS VERDES
APPROVING AMENDMENT NO. 10 TO THE TRUMP NATIONAL
DEVELOPMENT AGREEMENT, AUTHORIZING AN EXTENSION
TO THE DEVELOPMENT AGREEMENT TO MARCH 21, 2011, AND
DECLARING THE URGENCY THEREOF.
WHEREAS, California Government Code Section 65864 et seq. authorizes cities
to enter into development agreements with private property owners; and
WHEREAS, the Rancho Palos Verdes City Council (the "City Council") previously
adopted Ordinance No. 328 approving that certain Development Agreement (the "Development
Agreement") by and between the City of Rancho Palos Verdes (the "City") and Palos Verdes
Land Holdings Company, L.P., a California limited partnership, and the Zuckerman Entities (as
defined in the Development Agreement), dated as of November 20, 1997, and recorded on
December 8, 1997, as Instrument No. 97-1929840 in the Official Records of Los Angeles County,
California; and
WHEREAS, pursuant to Government Code Section 65868, development
agreements may be amended; and
WHEREAS, the City Council previously approved an Amendment to Ocean Trails
Development Agreement (the "First Amendment"), by and between the City and Ocean Trails,
L.P., the successor in interest to Palos Verdes Land Holdings Company, L.P. and the Zuckerman
Entities, on September 18, 2001, and recorded on December 3, 2001 as Instrument No. 01-
2301342 in the Official Records of Los Angeles County, California. Additionally, the City Council
previously approved a second Amendment to the Ocean Trails Development Agreement (the
"Second Amendment"), by and between the City and VH Property Corp., a Delaware corporation,
on March 4, 2003, and recorded as Instrument No. 03-1139102. Furthermore, the City Council
previously approved a third Amendment to the Ocean Trails Agreement (the "Third Amendment")
by and between the City and VH Property Corp., a Delaware corporation, on November 20, 2007.
Furthermore, the City Council previously approved a fourth Amendment to the Ocean Trails
Agreement (the "Fourth Amendment") by and between the City and VH Property Corp., a
Delaware corporation, on March 4, 2008. Furthermore, the City Council previously approved a
fifth Amendment to the Ocean Trails Agreement (the "Fifth Amendment") by and between the City
and VH Property Corp., a Delaware corporation, on July 15, 2008. Furthermore, the City Council
previously approved a sixth Amendment to the Ocean Trails Agreement (the "Sixth Amendment")
by and between the City and VH Property Corp., a Delaware corporation, on October 21, 2008.
Furthermore, the City Council previously approved a seventh Amendment to the Ocean Trails
Agreement (the "Seventh Amendment") by and between the City and VH Property Corp., a
Delaware corporation, on January 21, 2009. Furthermore, the City Council previously approved
an eighth Amendment to the Ocean Trails Agreement (the "Eighth Amendment") by and between
the City and VH Property Corp., a Delaware corporation, on September 15, 2009. Furthermore,
the City Council previously approved a ninth Amendment to the Ocean Trails Agreement (the
"Ninth Amendment") by and between the City and VH Property Corp., a Delaware corporation, on
March 16, 2010. The Development Agreement, First Amendment, Second Amendment, Third
Amendment, Fourth Amendment, Fifth Amendment, Sixth Amendment, Seventh Amendment,
Eighth Amendment and Ninth Amendment are sometimes referred to collectively herein as the
"Agreement"; and
WHEREAS, VH Property Corp. ("Developer") is the successor in interest to Ocean
Trails, L.P; and
WHEREAS, the parties wish to extend the life of the Development Agreement from
September 21, 2010 through March 16, 2011; and
WHEREAS, the City Council conducted a duly noticed public hearing on
September 21, 2010, at which time all interested parties were given an opportunity to be heard
and present evidence regarding the proposed Seventh Amendment.
Ordinance No. 515U
Page 2 of 5
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO PALOS
VERDES DOES HEREBY ORDAIN AS FOLLOWS:
Section 1. The proposed Tenth Amendment to the Development Agreement
makes a minor amendment to the Development Agreement to extend its life from September 21,
2010 through March 16, 2011. This minor change to the Development Agreement does not make
any physical change to the Project or to the conditions of approval that were imposed on the
Project and conforms to the maps and policies of the City's General Plan. Accordingly, the
revision to the Development Agreement is consistent with all applicable provisions of the General
Plan.
Section 2. The proposed Tenth Amendment to the Development Agreement
complies with the requirements of California Government Code Sections 65865 through 65869.5.
Section 3. The proposed Tenth Amendment to the Development Agreement
will not be detrimental, or cause adverse effects, to adjacent property owners, residents, or the
general public, since the project will be constructed in accordance with the plans that were
approved previously by the City Council, including any amendments to the plans that have been
approved previously by the City Council.
Section 4. The proposed Tenth Amendment to the Development Agreement
does not alter the clear and substantial benefit to the residents of the City of the Project, since the
proposed amendment makes no substantive changes to the Project or to the Development
Agreement.
Section 5. During the ten-year term of the Development Agreement a major
landslide occurred on the property that is subject to the Development Agreement. The landslide
delayed completion of the project for several years while the landslide was being studied and
repaired. In addition, two additional landslides on the property caused geologic concerns
regarding the completion of the portion of the project that is within Tentative Tract Map No.
50666. The geologic issues were not easily resolved and required a panel of three experts to be
Ordinance No. 515U
Page 3of5
retained by the City, as requested by the Developer. Some of these issues still need to be
resolved before the development of the project can be completed. The failure to resolve these
geologic issues in a satisfactory manner could result in additional land failures on the site, which
could have an immediate and adverse impact upon the public health, safety and welfare. If the
Development Agreement is not extended to March 16, 2010, the parties will not be able to revise
its terms before it expires. This ordinance, therefore, is necessary for the immediate protection of
the public health, safety and welfare and shall take effect immediately upon adoption as an
urgency ordinance.
Section 6. For the foregoing reasons, and based on the information contained
in the staff reports, supporting documentation, minutes and other records of the proceedings, all
of which are incorporated herein by this reference, the City Council hereby approves the
proposed Tenth Amendment to the Development Agreement with VH Property Corp., which
amendment is attached hereto as Exhibit "A" and incorporated herein by this reference.
Section 7. The City Clerk shall cause this Urgency Ordinance to be posted in
three (3) public places in the City within fifteen (15) days after its passage, in accordance with the
provisions of Section 36933 of the Government Code. The City Clerk shall further certify to the
adoption and posting of this Ordinance, and shall cause this Ordinance and its certification,
together with proof of posting, to be entered in the Book of Ordinances of the Council of this City.
Section 8. This Ordinance shall go into effect and be in full force and effect
immediately upon its passage. This ordinance is effective until 11:59 p.m. on March 16, 2010,
unless further extended by the City Council by the adoption of another ordinance.
Ordinance No. 515U
Page 4 of 5
PASSED, APPROVED and ADOPTED this 21st day of September 2010.
_dagg leheeet,,,
ayor
ATTEST:
f'" „ Wa.„,eL
City Clerk
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES )ss
CITY OF RANCHO PALOS VERDES)
I, Carla Morreale, City Clerk of the City of Rancho Palos Verdes, do hereby certify that the
whole number of the members of the City Council of said City is five; that the foregoing Ordinance
No. 515U was duly and regularly adopted by the City Council of said City at a regular meeting
thereof held on September 21, 2010, and that the same was passed and adopted by the
following roll call vote:
AYES: Campbell, Misetich, Long and Wolowicz
NOES: None
ABSENT: Stern
ABSTAINED: None 2
c Ds
City Clerk
Ordinance No. 515U
Page5of5
RECORDING REQUESTED BY AND
WHEN RECORDED RETURN TO: 12/09/2011
CITY CLERK
CITY OF RANCHO PALOS VERDES *20111666427*
30940 Hawthorne Boulevard
Rancho Palos Verdes, CA 90275-5391
AMENDMENT NO. 10 TO TRUMP NATIONAL DEVELOPMENT AGREEMENT
(Pursuant to California Government e t C ode Section 65868)
THIS AMENDMENT NO. 10 TO TRUMP NATIONAL DEVELOPMENT
AGREEMENT ("Tenth Amendment")is entered into this 21St day of September 2010 by and
between VH Property Corp., a Delaware corporation("Developer"), and the City of Rancho
Palos Verdes, a municipal corporation organized under the laws of the State of California(the
"City").
RECITALS
A. Palos Verdes Land Holdings Company, L.P., a California limited partnership, and
the Zuckerman Entities (as defined in the Agreement), as predecessors in interest
to Developer, and City entered into that certain Development Agreement(the
"Original Agreement")dated as of November 20, 1997, and recorded on
December 8, 1997, as Instrument No. 97-1929840 in the Official Records of Los
Angeles County, California, as amended by that certain Amendment to Ocean
Trails Development Agreement(the"First Amendment"), dated as of September
18, 2001, and recorded on December 3, 2001 as Instrument No. 01-2301342 in
the Official Records of Los Angeles County, California; and as further amended
by that certain Amendment No. 2 to Ocean Trails Development Agreement(the
"Second Amendment"), dated as of March 4, 2003, and recorded as Instrument
No. 03-1139102 in the Official Records of Los Angeles County, California; and
as further amended by that certain Amendment No. 3 to the Ocean Trails
Development Agreement(the"Third Amendment"), approved on November 20,
2007; and as further amended by that certain Amendment No. 4 to the Ocean
Trails Development Agreement(the"Fourth Amendment"), approved on March
4, 2008; and as further amended by that certain Amendment No. 5 to the Ocean
Trails Development Agreement(the"Fifth Amendment"), approved on July 15,
2008; and as further amended by that certain Amendment No. 6 to the Ocean
Trails Development Agreement(the"Sixth"Amendment), approved on October
21, 2008; and as further amended by that certain Amendment No. 7 to the Ocean
Trails Development Agreement(the"Seventh"Amendment), approved on
January 21, 2009; and as further amended by that certain Amendment No. 8 to the
Ocean Trails Development Agreement(the"Eighth"Amendment), approved on
Ordinance No. 515U
Exhibit "A"
Page 1 of 3
3
September 15, 2009; and as further amended by that certain Amendment No. 9 to
the Ocean Trails Development Agreement(the"Ninth"Amendment), approved
on March 16, 2010; (referred to collectively with the Original Agreement, as the
"Agreement"),pursuant to which Developer has certain vested rights to develop
that certain real property described and/or depicted on Exhibit A attached hereto
(the"Property"). Except as expressly stated to the contrary, all capitalized terms
set forth herein shall have the same meaning as set forth in the Agreement.
B. City previously approved Tentative Tract Map No. 50666 and Tentative Tract
Map No. 50667 regarding the Property and subsequently approved certain
amendments thereto.
C. Final Tract Map No. 50667 was previously recorded as Instrument No. 99-
1934089 in the Office of the County Recorder of Los Angeles County, California,
on October 12, 1999.
D. Both parties wish to extend the Development Agreement to March 21, 2011.
E. On September 21, 2010, the City Council of City adopted Urgency Ordinance
No. U, approving this Tenth Amendment. Developer and City desire to amend
the Agreement to reflect the foregoing.
AGREEMENT
NOW, THEREFORE, in consideration of the foregoing recitals, and the mutual
promises and agreements contained herein, and for other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, it is agreed as follows:
1. Section 7 of the Agreement, entitled Term, is hereby amended by
replacing paragraph 7.2 at the end of that Section 7 with the following new paragraph 7.2, to read
as follows:
"7.2 Extension of Development Agreement. This Development
Agreement is hereby extended from September 21, 2010 through March 16, 2011. Vesting
Tentative Tract Map No. 50666 is hereby extended along with the term of this Development
Agreement."
2. Full Force. Except as specifically set forth herein, the Agreement shall
remain in full force and effect.
3. Counterparts. This Tenth Amendment may be executed in one or more
counterparts, each of which shall be deemed an original,but all of which shall constitute one and
the same instrument. A facsimile signature shall be deemed an original signature.
4. Authority. The persons executing this Tenth Amendment on behalf of
Developer and City represent and warrant that they are duly authorized so as to fully and legally
bind Developer and City, respectively.
Ordinance No. 515U
Exhibit "A"
Page 2of3
IN WITNESS WHEREOF, this Ninth Amendment is executed as of the date first
written above.
"DEVELOPER":
STATE OF NEW YORK )
COUNTY OF NEW YORK )
s s: VH P' *PER Y CORP.,
a Dela are c I •oration
Subscribed to before me by
"Developer" on the 22nd day of November 2011
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THE "CITY":
CITY 0► ' A At O PALOS VE' Vir
By:
VIP
ayor
ATTEST:aiat,
City Clerk
Ordinance No. 515U
Exhibit "A"
Page 3of3
O
AN C H PALOS VERDES
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS AFFIDAVIT OF POSTING
CITY OF RANCHO PALOS VERDES)
The undersigned, being first duly sworn, deposes and says:
That at all times herein mentioned, she was and now is the appointed City Clerk
of the City of Rancho Palos Verdes;
That on September 24, 2010, she caused to be posted the
following document entitled: ORDINANCE NO. 515U - AN
ORDINANCE OF THE CITY OF RANCHO PALOS VERDES
APPROVING AMENDMENT NO. 10 TO THE TRUMP NATIONAL
DEVELOPMENT AGREEMENT,AUTHORIZING AN EXTENSION
TO THE DEVELOPMENT AGREEMENT TO MARCH 21, 2011,
AND DECLARING THE URGENCY THEREOF, a copy of which is
attached hereto, in the following locations:
City Hall Ladera Linda Community Center
30940 Hawthorne Blvd. 32201 Forrestal Drive
Rancho Palos Verdes Rancho Palos Verdes
Hesse Park
29301 Hawthorne Blvd.
Rancho Palos Verdes
I certify under penalty of perjury that the foregoing is a true and correct affidavit of
posting.
Ociet& ii /x i
City Clerk
W:\FORMS\Form 150 Archived Affidavits(old)\Form 150-Affidavit of Posting Ordinance No.515U.doc