ORD 537UORDINANCE NO. 5370
AN ORDINANCE OF THE CITY OF RANCHO PALOS VERDES
APPROVING AMENDMENT NO. 14 TO THE TRUMP NATIONAL
DEVELOPMENT AGREEMENT, AUTHORIZING AN EXTENSION
TO THE DEVELOPMENT AGREEMENT TO SEPTEMBER 21, 2014,
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. Furthermore, the City Council previously approved a tenth Amendment to the
Ocean Trails Agreement (the "Tenth Amendment ") by and between the City and VH Property
Corp., a Delaware corporation, on September 21, 2010. Furthermore, the City Council previously
approved a eleventh Amendment to the Ocean Trails Agreement (the "Eleventh Amendment ") by
and between the City and VH Property Corp., a Delaware corporation, on March 15, 2011.
Furthermore, the City Council previously approved a twelfth Amendment to the Ocean Trails
Agreement (the "Twelfth Amendment ") by and between the City and VH Property Corp., a
Delaware corporation, on September 20, 2011. Furthermore, the City Council previously
approved a thirteenth Amendment to the Ocean Trails Agreement (the "Thirteenth Amendment ")
by and between the City and VH Property Corp., a Delaware corporation, on March 6, 2012. The
Development Agreement, First Amendment, Second Amendment, Third Amendment, Fourth
Amendment, Fifth Amendment, Sixth Amendment, Seventh Amendment, Eighth Amendment,
Ordinance No. 537U
Page 2 of 5
Ninth Amendment, Tenth Amendment, Eleventh Amendment, Twelfth Amendment, and
Thirteenth 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, 2012 through September 21, 2014; and
WHEREAS, the City Council conducted a duly noticed public hearing on August 7,
2012, at which time all interested parties were given an opportunity to be heard and present
evidence regarding the proposed Fourteenth Amendment.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO PALOS
VERDES DOES HEREBY ORDAIN AS FOLLOWS:
Section 1. The proposed Fourteenth Amendment to the Development
Agreement makes a minor amendment to the Development Agreement to extend its life from
September 21, 2012 through September 21, 2014. 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 Fourteenth Amendment to the Development
Agreement complies with the requirements of California Government Code Sections 65865
through 65869.5.
Section 3. The proposed Fourteenth 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.
Ordinance No. 5370
Page 3of5
Section 4. The proposed Fourteenth 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
retained by the City, as requested by the Developer. 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. Furthermore,
California Government Code Section 66452.33 automatically extended the life of Vesting
Tentative Tract Map No. 50666 for an additional two -year term and said Map is a portion of the
"Development Plan" that said Development Agreement assures the Developer to be able to
complete. If the Development Agreement is not extended to September 21, 2014, the Vesting
Tentative Tract Map No. 50666 would continue to be in effect without the benefit of the
Development Agreement to govern various provisions of the "Development Plan ". Further, the
Development Agreement needs to be revised to consider amendments over the past years and if
it expires, 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
Ordinance No. 537U
Page 4 of 5
proposed Fourteenth 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 September 21,
2014, unless further extended by the City Council by the adoption of another ordinance.
PASSED, APPROVED and ADOPTED this 7th day of August 2012.
�ayor
ATTEST:
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 numbers of the City Council of said City is five; that the foregoing Ordinance No. 537U was
duly and regularly adopted by the City Council of said City at a regular meeting thereof held on
August 7, 2012 by the following vote:
AYES: Brooks, Campbell, Knight and Mayor Misetich
NOES: None
ABSENT: Duhovic (recused)
ABSTAINED: None
City Click
Ordinance No. 537U
Page 5of5
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES )SS
CITY OF RANCHO PALOS VERDES)
RANCHO PALOS VERDES
AFFIDAVIT OF POSTING
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 August 9, 2012, she caused to be posted the following
document entitled: ORDINANCE NO. 537U, AN ORDINANCE OF
THE CITY OF RANCHO PALOS VERDES APPROVING
AMENDMENT NO. 14 TO THE TRUMP NATIONAL
DEVELOPMENT AGREEMENT, AUTHORIZING AN EXTENSION
TO THE DEVELOPMENT AGREEMENT TO SEPTEMBER 21,
20141 AND DECLARING THE URGENCY THEREOF, a copy of
which is attached hereto, in the following locations:
City Hall
30940 Hawthorne Blvd.
Rancho Palos Verdes
Hesse Park
29301 Hawthorne Blvd.
Rancho Palos Verdes
Ladera Linda Community Center
32201 Forrestal Drive
Rancho Palos Verdes
certify under penalty of perjury that the foregoing is a true and correct affidavit of
posting.
Z�
City Clerk
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Ordinance No. 5370
Exhibit A
Page 1 of 5
RECORDING REQUESTED BY AND
WB EN RECORDED RETURN TO:
CITY CLERK
CITY OF RANCHO PALOS VERDES
30940 Hawthorne Boulevard
Rancho Palos Verdes, CA 90275 -5391
AMENDMENT NO, 14 TO TRUMP NATIONAL DEVELOPMENT AGREEMENT
(Pursuant to California Government Cole Section 65868)
THIS AMENDMENT NO. 14 TO TRUMP NATIONAL DEVELOPMENT
AGREEMENT (``Fourteenth Amendment') is entered into this 7` i day of August 2412 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 an 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 Yecorded on December 3, 2001 as
Instrument Nu. 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- 11391.02 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 " FiM 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 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; and as further amended by that certain
Amendment No. 10 to the Ocean Trails Development Agreement (the "Tenth"
Amendment), approved on September 21, 2010; and as further amended by that certain
Amendment No. 1 I to the Ocean Trails Development Agreement (the ` ♦Eleventb"
Amendment), approved on March 15, 2011; and as further amended by that certain
Ordinance No. 5370
Exhibit A
Page 2 of 5
r-
Amendment No. 12 to the Ocean Tails Development Agreement (the "Twelfth"
Amendment), approved on September 20, 2011; and as further amended by that certain
Amendment No. 13 to the Ocean Trails Development Agreement (the "Thirteenth"
Amendment), approved on March b, 2012; (referred to collectively with the Original
Agreement, as the "Agreement'% pursuant to which Developer bas certain vested rights
to develop that certain real prop" described and/or depicted on Exhibit A attached
hereto (the "Property "). Except as expressly stated to the contrary, all capitalized teem
set forth herein shall have the same meaning as set forth in the Agreement.
B. City previously approved Vesting Tentative Tract Map No. 50666 and Vesting 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- 1934459 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 September 21, 2014.
E. On August 7, 2012, the City Council of City adopted Urgency Ordinance No. 537U,
approving this Fourteenth Amendment. Developer and City desire to amend the
Agreement to reflect the foregoing.
AGREEMEN7
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:
i . Section 7 of the Agreement, entitled Term, is hereby amended by replacing the
paragraph with the following new paragraph, to read as follows:
" 7. ei- . The term of this Agreement shall commence upon the Effective
Date and shall continue until all building permits required to complete the development of the Project as
contemplated by the Development Plan have been issued, provided that in no event shall such term
exceed seventeen (17) years following the Effective Date of this Agreement."
2. Section 7 of the Agreement, entitled Tom, 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 Devetment AMement This Development Agreement is
hereby extended from September 21, 2012 through September 21, 2014. Vesting Tentative Tract leap
No. 50666 is hereby extended along with the term of this Development Agreement."
3. Ful . Forcc. Except as specifically set forth herein, the Agreement shall remain in
full force and effect.
4. CountgMarts. This Fourteenth 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.
Ordinance No. 537U
Exhibit A
Page 3 of 5
9
5. Authotity. The persons executing this Fourteenth Amendment on behalf of
Developer and City represent and warrant that they are duly authorized so as to fully and leplly bind
Developer and City, respectively.
IN WITNESS WHEREOF, this Fourteenth Amendment is executed as of the date furst
written above.
i °DEVELOPER ":
VH OPERT,Y ORP.,
a De ware tion
By: WW or
Name: '
Title:
By:
Name: '` �.
Title
THE ddaTY'!:
CITY O O PA
By:
May r
Ordinance No. 537U
Exhibit A
Page 4 of 5
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,4tw ARK
STATE OF 6AL%W0RM6**
COUNTY OF dao-W yaxK
On Q'~ 6 — l oZ before me, 14, r.NAX4 009aw. EYEn rr-N E I. r i
personally appeared Qcy4A&D--X 1M&MP 0 A who proved to me on
the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the
within instrument and acknowledged to me that hrJshelthey executed the same in his/her/their
authorized capacity(ies ), and that by lusher /their signature(s) on the instrument the persons ), or
the entity upon behalf of which the person(s) acted, executed the insriument.
I certify tinder PENALTY OF PERJURY under the laws of the State of California that the
foregoing paragraph is true and correct.
WITNESS any hand and official seal.
Signature
fVV
STATE OF NVaORMQ16 4 E*1 YoCVwo
COUNTY OF VIEW ycim
MICfi a COH York
N PubC +c, state 637349
po. 02CO of Now
Qustified in New Yc 21,2013
Commasion Expires November
(Seal)
6 r lo? before me / I�+ �l V �i. CDUA%L
=4 . __. r 1
personally appeared _ , _�a4��1 ,�. CTA AK who proved to me on
the basis of satisfactory evidence to be the person(s) whose narne(s) is/are subscribed to the
within inst rment and acknowledged to me that helshelthey executed the same in hislherltheir
authorized capacity(ies), and that by his/her /their signature(s) on the instrument the person(s), or
the entity upon behalf of'which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laves of die State of California that the
foregoing paragraph is true and correct.
WITNESS my hand and official seal.
MICHAEL COHEN York
Notary Pub'l 06137349
-No. o2C
Cauaiified in New York Coutriy
Signature Commission Expires November 21, 2013 (Seal)
Ordinance No. 537U
Exhibit A
Page 5 of 5
(7