ORD 561U ORDINANCE NO. 561U
AN ORDINANCE OF THE CITY OF RANCHO PALOS VERDES
APPROVING AMENDMENT NO. 15 TO THE TRUMP NATIONAL
DEVELOPMENT AGREEMENT, AUTHORIZING AN EXTENSION
TO THE DEVELOPMENT AGREEMENT TO SEPTEMBER 21, 2016,
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 an 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.
Furthermore, the City Council previously approved a fourteenth Amendment to the Ocean Trails
Agreement (the "Fourteenth Amendment") by and between the City and VH Property Corp., a
Delaware corporation, on August 7, 2012. The Development Agreement, First Amendment,
Second Amendment, Third Amendment, Fourth Amendment, Fifth Amendment, Sixth
Amendment, Seventh Amendment, Eighth Amendment, Ninth Amendment, Tenth Amendment,
Ordinance No. 561U
Page 2 of 5
Eleventh Amendment, Twelfth Amendment, Thirteenth Amendment, and Fourteenth 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, 2014 through September 21, 2016; and
WHEREAS, the City Council conducted a duly noticed public hearing on
September 16, 2014, at which time all interested parties were given an opportunity to be heard
and present evidence regarding the proposed Fifteenth Amendment.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO PALOS
VERDES DOES HEREBY ORDAIN AS FOLLOWS:
Section 1. The proposed Fifteenth Amendment to the Development
Agreement makes a minor amendment to the Development Agreement to extend its life from
September 21, 2014 through September 21, 2016. 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 Fifteenth Amendment to the Development
Agreement complies with the requirements of California Government Code Sections 65865
through 65869.5.
Section 3. The proposed Fifteenth 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. 561U
Page 3 of 5
Section 4. The proposed Fifteenth 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 66452.24 requires the extension of the life of Vesting
Tentative Tract Map No. 50666 for an additional two-year term, because the Map is consistent
with the City's General Plan, Local Coastal Plan and Zoning Ordinance, 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, 2016, 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. 561U
Page 4 of 5
proposed Fifteenth 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,
2016, unless further extended by the City Council by the adoption of another ordinance.
PASSED, APPROVED and ADOPTED this 16th day of September 2014.
OP Mayor
ATTEST:
4taZ_ 41("Lee—
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. 561 U was
duly and regularly adopted by the City Council of said City at a regular meeting thereof held on
September 16, 2014, and that the same was passed and adopted by the following roll call vote:
AYES: Brooks, Campbell, Misetich, and Mayor Pro Tem Knight
NOES: None
ABSENT: Mayor Duhovic (recused)
ABSTAINED: None 4410(___
City Clerk
Ordinance No. 561U
Page 5 of 5
j!
RANCHO 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 18, 2014, she caused to be posted the
following document entitled: ORDINANCE NO.561U, AN
ORDINANCE OF THE CITY OF RANCHO PALOS VERDES
APPROVING AMENDMENT NO. 15 TO THE TRUMP NATIONAL
DEVELOPMENT AGREEMENT, AUTHORIZING AN
EXTENSION TO THE DEVELOPMENT AGREEMENT TO
SEPTEMBER 21, 2016, 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.
c-- „,,e:IA4,4„,._
Deputy City Clerk
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Ordinance No.561U
E11172111EMibil A
Page 1 of 6
12/1812014
RECORDING REQUESTED BY AND
WHEN RECORDED RETURN TO:
*20141381339*
CITY CLERK
CITY OF RANCHO PALOS VERDES
30940 Hawthorne Boulevard
Rancho Palos Verdes,CA 90275-5391
AMENDMENT NO. 15 TO TRUMP NATIONAL DEVELOPMENT AGREEMENT
(Pursuant to California Government Code Section 65868)
THIS AMENDMENT NO. 15 TO TRUMP NATIONAL DEVELOPMENT
AGREEMENT("Fifteenth Amendment") is entered into this 16th day of September 2014 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 asfurther 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 Amendments'),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. 11 to the Ocean Trails Development Agreement(the"Eleventh"
Amendment),approved on March 15,2011;and as further amended by that certain
Ordinance No.561 U
Exhibit A
Page 2 of 6
Amendment No. 12 to the Ocean Trails 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 6,2012;and as further amended by that certain
Amendment No. 14 to the Ocean Trails Development Agreement(the"Fourteenth"
Amendment),approved on August 7,2012;(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 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.99-1934089 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 September 21,2016.
E. On September 16,2014,the City Council of City adopted Urgency Ordinance No. 561U,
approving this Fifteenth 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 the
paragraph with the following new paragraph,to read as follows:
"7. Term. 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 nineteen(19)years following the Effective Date of this Agreement."
2. 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 21,2014 through September 21,2016. Vesting Tentative Tract Map
No. 50666 is hereby extended along with the term of this Development Agreement."
3. Full Force. Except as specifically set forth herein,the Agreement shall remain in
full force and effect.
4. Counterparts. This Fifteenth 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.561 U
Exhibit A
Page 3 of 6
5. Authority. The persons executing this Fifteenth 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.
IN WITNESS WHEREOF,this Fifteenth Amendment is executed as of the date first
written above.
"DEVELOPER":
VII PROPERTY CORP.,
a Del: are corpo .tion
By: . A
Name:
Title: ._ - .. —.
40001
B
Name: I e*% , ,
Title:
THE"CITY":
CITY OF NCHO PALO VERNES
By:
ATTEST:(A,ie,C7
„a/Wit' /
City Clerk
Ordinance No.561U
Exhibit A
Page 4 of 6
STATE OF 4140112Mata OgOte.k.-
COUNTY OF sieloi rj0
On 1Qt before me,£ LtI4IAA4
Py PP /viaersonall a eared / � . ( tit we S who proved to me on
the basis of satisfactory evidence to be the person(s)whose rani (s)Ware subscribed to the
within instrument and acknowledged to me that /they executed the same in lir/their
authorized capacity(ies), and that by /their signature(s)on the instrument the person(s),or
the entity upon behalf of which the person(s)acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of ' that the
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fore oin paragraph is true and correct. 9OI
foregoing
WITNESS my hand and official seal.
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STATE OF CALIFORNIA
COUNTY OF
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personally appeared 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 he/she/they executed the same in his/her/their
authorized capacity(ies),and that by his/her/their signature(s)on the instrument the person(s),or
the entity upon behalf of which the person(s)acted,executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the
foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature (Seal)
Ordinance No.561 U
Exhibit A
Page 5 of 6
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CIVIL CODE§1189
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A notary public or other officer completing this certificate verifies only the identity of the individual who signed the
document to which this certificate is attached,and not the truthfulness,accuracy,or validity of that document.
State of California
County of
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On i (O2Lbefore me Yl' , - J t
DateHere Insert Name .nd Title of th: Officer
personally appeared Z1.vVI
Name(s)of Signer(s)
who proved to me on the basis of satisfactory evidence to be the person whose name(isl r .
subscribed to the within instrument and acknowledged to me that he/sba4eexecuted the same in
hisihetAfreirauthorized capacltyesandi that by hisihefitheif signature s 'on the instrument the person
or the entity upon behalf of which the person$acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws
of the State of California that the foregoing paragraph
is true and correct.
CARtA MORREALE
COMM.
mm.12065504 WITNESS my hand and oral seal.
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Description of Attached Document
Title or Type of Document: Document Date:
Number of Pages: Signer(s) Other Than Named Above:
Capacity(ies)Claimed by Signer(s)
Signer's Name: Signer's Name:
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Ordinance No.561 U
Exhibit A
Page 6 of 6