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HomeMy WebLinkAbout11/07/2006 Blue Sheet Cascada Specific Plan Development Agreement TOWN COUNCIL MEETING INFORMATION TOWN OF MARANA MEETING DATE: November 7, 2006 AGENDA ITEM: J. 1. b TO: MAYOR AND COUNCIL FROM: Frank Cassidy, Town Attorney SUBJECT: Resolution No. 2006-175: Relating to Development; approving and authorizing the execution of the Cascada specific plan devel- opment agreement. DISCUSSION As of noon Thursday, November 2, when this blue sheet was prepared, the Cascada specific plan development agreement had not been finalized. However, the parties are very close to an agree- ment. The Town Attorney's August 23,2006 draft of the development agreement, with Septem- ber 26 proposed revisions from the developer's attorney, is provided with this bluesheet. The few remaining issues under discussion are the subject of the attached October 9 and October 31 email communications. Repeated requests within the last week to bring the development agreement negotiations to closure have been unsuccessful. If a final Cascada specific plan development agreement is submitted prior to the November 7 Council meeting, and the Council decides there is some compelling reason to act upon it, it should be approved only after or concurrent with the approval of the Cascada specific plan. If the Cascada Specific Plan is not approved, the Cascada specific plan development agreement should be tabled indefinitely. In all other instances, this item should be continued to a later date. RECOMMENDATION Staff recommends that this item be continued. A TT ACHMENT(S) Draft September 26 Cascada specific plan development agreement. Frank Cassidy's October 9 and October 31 emails SUGGESTED MOTION I move to continue Resolution No. 2006-175. {00002880.DOC /} FJC/cds 11/2/06 '5~f"(eM!1~ 1"/"1 2..tJ(1(, p.eA<< "5Ho~INr, (l..eVf'5I()/\J~ P2JJffJscl) Sj f)e1~UJfC,tfs. A:fr~~/ Cst. UwtaJ{$' '5~()~M--l) 1?~6? CASCADA SPECIFIC PLAN DEVELOPMENT AGREEMENT TOWN OF MARANA, ARIZONA THIS DEVELOPMENT AGREEMENT ("Agreement") is made by and between the TOWN OF MARANA, an Arizona municipal corporation (the "Town") and RED POINT DEVELOPMENT, ~., _ _ _ -( Deleted: L.L.C an Arizona corporation I~h_e_'~Q\Y~~('}. J:i!e_ T~~!1_ ~n~ _ t!1~ _Q\y~~r_ ,!r~ _c_oll~~tl'.:~ly !~(e~~~ _t~ j~ _ - - -[ Formatted: Small caps this Agreement as the "Parties," and each is sometimes individually referred to as a "Party." - - - .( Deleted: limited liability company RECITALS A. The Owner owns or controls approximately 1,476 acres of land located in the Town limits, as depicted on the map attached as Exhibit "A" and legally described in Exhibit "8" (the "Property"). The Property and its development are currently included in, and are subject to, the provisions of the Acacia Hills Specific Plan, Marana Ordinance No. 88.16, adopted July 5, 1988; or, the Northgate Specific Plan, Marana Ordinance No. 91.09, adopted May 7, 1991 (collectively, the "Current Specific Plans"). The Current Specific Plans permit the development of in excess of 10,000 units on the Property. 8. The portion of the Property covered by the Northgate Specific Plan is also the subject of the Northgate Development Agreement recorded in the Pima County Recorder's Office in Docket 9038, at Pages 353-381 (the "Northgate Development Agreement"). C. The Property is included in the various phases of development set forth in the Cascada Specific Plan (the "Cascada Plan"), which was submitted to the Town to modifY, amend and supersede the Current Specific Plans as to the Property. The Cascada Plan effectively downzones the Property and substantially reduces the number of units to be developed within the Property to a maximum of 3,805 units instead of the more than 10,000 units permitted under the Current Specific Plans. D. Upon approval of the Cascada Plan and this Agreement, the Current Specific Plans, including any and all related development agreements, shall be modified, amended and superseded as to the Property, and the Property shall be developed in phases pursuant to the Cascada Plan, as clarified and supplemental by this Development Agreement. E. The Cascada Specific Plan also includes numerous special design features and public amenities not included in the Current Specific Plans, including without limitation, special street standards and an integrated system of trails and several hundred acres of open space featuring, among other things, over 220 acres of natural undisturbed open space and wildlife habitat; approximately 100 acres of drainage ways, including undisturbed drainage bottom and wildlife corridors; more than 360 acres of open space within the area designated as Parcel 5 in the Cascada Plan; and, close to 80 acres designated as recreational open space, which will include multi-purpose recreation facilities and on-site storm water retention/detention. F. Pursuant to the Current Specific Plans, the Owner has made substantial improvements and commitments and, pursuant to the Cascada Plan and this Agreement, will continue to make {00002248.DOC / 4} 8/23/20063:07 PM CASCADA SPECIFIC PLAN DEVELOPMENT AGREEMENT - I - a substantial commitment of resources for public and private improvements during each phase of the development of the Property including without limitation, roadways, parks, public trails, open space and wildlife corridors, an open space management plan, schools, sewer and water service, other utilities, and similar or related improvements. G. The Town and the Owner further acknowledge that the development of each phase of the Property, pursuant to the Cascada Plan and this Agreement, will result in planning and economic benefits to the Town and its residents. H. The Northgate Development Agreement expressly provides, subject to specific limitations, that after the date of the development agreements applicable under the Current Specific Plans (May 7, 1991) "the Town shall not impose or enact any additional conditions, exactions, dedications, development or impact fees, rules or regulations applicable to or governing the development of the Property." This language is referred to in this Agreement as the "Northgate Vesting Language." I. The Town questions the validity of the Northgate Vesting Language for reasons including (i) the Owner's failure to undertake substantial development in reliance on the Current Specific Plans and the Northgate Development Agreement within a reasonable time after their adoption, (ii) the absence of a reasonable time limitation on the Northgate Vesting Language, resulting in an illegal attempt to restrict future Councils' legislative authority, (iii) the absence of benefit (consideration) to the Town, and (iv) special treatment of the Owner with respect to development impact fees in violation of A.R.S. S 9-463.05, which requires that all such fees be "assessed in a non-discriminatory manner." J. The Owner contends that the Northgate Vesting Language is legally binding, enforceable and effective. K. The Parties desire to set aside their disagreement about the Northgate Vesting Language by superseding and replacing the Northgate Development Agreement as to the Property with this Agreement. L. The Town has determined that it is in the best interests of the Town and its residents to have the Property developed pursuant to the Cascada Plan, and its reduced densities and special features, and subject to the substantial additional conditions, exactions, and commitments contained in the Cascada Plan, and to the extent provided for in this Agreement. M. The Town is currently in the design process on a project to construct a new Interstate 10 interchange at Twin Peaks Road (the "Twin Peaks TI Project"), and anticipates that construction will begin in April 2008. N. The plans for the Twin Peaks TI Project include fully reconstructed roadways for Camino de Manana and Linda Vista Road adjacent to and in the vicinity of the Property. The fully reconstructed Camino de Manana and Linda Vista Road improvements as they would be constructed as part of the Twin Peaks TI Project are referred to in this Agreement as the "CdM/L V Improvements." O. To facilitate the timely development of the Cascada Plan, the Owner desires to construct limited portions of the CdM/L V Improvements before construction of the Twin Peaks TI Project begins. {00002248.DOC / 4} 8/23/20063:07 PM CASCADA SPECIFIC PLAN DEVELOPMENT AGREEMENT - 2 - P. The Parties desire to allow the Owner the flexibility to construct portions of the CdM/L V Improvements as long as the Owner's construction does not unreasonably interfere with or delay the Twin Peaks TI Project. Q. The development of the Property shall be governed by the Cascada Plan, including the Owner's design and development standards and guidelines, as clarified and supplemented by this Agreement. The Marana Development Code, including the written rules, regulations, procedures, and policies relating to development of land, adopted or approved by the Mayor and Council (collectively the "Marana Development Code") in effect on the effective date of this Agreement shall apply to the extent not covered by the Cascada Plan or this Agreement. R. This Agreement is consistent with the portions of the Town's General Plan applicable to the Property. S. The Parties understand and acknowledge that this Agreement is a "Development Agreement" within the meaning and pursuant to the terms of A.R.S. ~ 9-500.05. AGREEMENT Now, THEREFORE, in consideration of the foregoing premises and the mutual promises and agreements set forth in this Agreement, the Parties hereby agree as follows: Article 1. The Northgate Development Agreement. As of the effective date of this Agreement, the Northgate Development Agreement is superseded as to the Property and replaced by this Agreement. Article 2. Development of the Property. 2.1. Specific Plan. The Cascada Plan, as clarified and supplemented by this Agreement, is hereby incorporated into the Town's General Plan for all purposes. Development of the Property shall be in accordance with the Cascada Plan, as may be amended from time to time. Upon the approval of the Cascada Plan by the Town, the Owner shall be authorized to implement the uses, densities, and intensities set forth in the Cascada Plan, and will be accorded all approvals necessary to permit the Owner to implement the Cascada Plan, subject to the Town's review and approvals of appropriate and required applications, block and subdivision plats, development or site plans and applicable development standards and specifications. The Town and the Owner acknowledge that adjustments or amendments to the Cascada Plan may be necessary from time to time to reflect actual roadway alignments, changes in market conditions, development financing, and/or to meet the new requirements of one or more of the potential users or builders of any part of the Property. The Parties shall cooperate in good faith to agree upon and use reasonable best efforts to process any adjustments or amendments to the Cascada Plan. Subject to the limitations set forth in paragraph 4.3 below, the Town agrees to approve or issue such permits, plans, specifications and/or plats of or for the Property as may be requested by the Owner in order to implement, and which are reasonably consistent with, the Cascada Plan. The Town's failure to timely approve any permits, plans, specifications or plats, or other matters necessary to permit the Owner or any user or builder within the Property to reasonably implement the Cascada Plan, shall be in breach of this Agreement. If and when the Parties find that changes or adjustments are necessary or appropriate to be made to the Cascada Plan, they shall, unless otherwise required by law, effectuate such changes or adjustments through administrative amendments approved by the Town's Planning Director, which after execution, shall be attached as an addendum to and shall become part of the Cascada Plan, and may be {00002248DOC/4} 8/23/20063:07 PM CASCADA SPECIFIC PLAN DEVELOPMENT AGREEMENT - 3 - further changed and amended from time to time as necessary, with the approval of the Town and the Owner as provided in this paragraph. Unless otherwise required by law, no such administrative amendments shall require prior notice or hearing. Notwithstanding the foregoing, the following matters shall not be considered administrative changes or amendments, but shall be considered substantive amendments which shall be reviewed by the Planning and Zoning Commission and approved by the Town Council: 2.1.1. Alteration of the permitted uses ofthe Property; 2.1.2. Increase in the density or intensity of use or number of dwelling units (except as allowed in connection with the transfer of specific density and intensity requirements between individual parcels as provided in the Cascada Plan and this Agreement); 2.1.3. Increase in the maximum height and size of permitted buildings (except as allowed in connection with the transfer of specific building height and size limitations between individual parcels within the Property as provided in the Cascada Plan and this Agreement); and, 2.1.4. Deletion of a requirement for the reservation or dedication of land for public purposes, except for minor boundary adjustments approved by the Planning Director. 2.2. Current Specific Plan and Other Development Review. Each phase of the Property shall be developed in a manner consistent with the Development Regulations and the Cascada Plan, as clarified by this Agreement. The Cascada Plan establishes the basic land uses, the densities and intensities of such uses, whereas this Agreement quantifies the exactions and the development regulations applicable to the development of the Property. Upon the Owner's compliance with the applicable development review and approval procedures and the substantive requirements of the development regulations that now apply to the Property, the Town agrees to timely process all submittals for any portion of the Property and to timely approve such block plats, any subdivision or other plats and any building or other permit applications consistent with the Cascada Plan and applicable development regulations and to timely issue such permits or similar approvals for the Property. 2.3. Zoning and Plat Conditions. The Owner agrees to fulfill all related conditions of the Cascada Plan and other applicable development regulations. The Cascada Plan, as clarified and supplemented by this Agreement, supersedes the existing subdivision plats within the Property. Subject to compliance with any applicable statutory requirements (for example, A.R.S. ~ 9-407 or A.R.S. ~ 28-7203), any road or other dedication in favor of the Town contained in or conveyed pursuant to any such plat is abandoned effective upon the recording of a new or amended plat covering the land area with the particular road or other dedication in favor of the Town. 2.4. Archaeological/Historic Resources. Development of each phase of the Property shall meet all Town requirements set forth in Title 2 and Title 20 of the Marana Development Code related to Archeological and Historic Resources. 2.5. Residential Design Guidelines. All residential construction on any portion of the Property shall be constructed in accordance with the design standards and guidelines contained in the Cascada Plan. The Parties acknowledge and agree that the residential guidelines contained in the Cascada Plan fall within the exception for specific plan-tailored design standards found at {00002248.DOC / 4} 8/23/20063 :07 PM CASCADA SPECIFIC PLAN DEVELOPMENT AGREEMENT - 4 - Section 8.06.02(B) of the Marana Land Development Code; consequently, the Town's residential guidelines as adopted in Marana Ordinance No. 2005.18 shall not apply to the Property. 2.6. No Manufactured Housing. No manufactured housing shall be permitted on any portion ofthe Property. 2.7. Management of Open Space. Owner shall cause to be prepared, at Owner's cost, a management plan for the proper management and maintenance of the open space areas included in the Cascada Plan. 2.8. Alignment of Roadwavs and Adjustments. The Parties acknowledge that the locations and alignments of major roadways set forth in the Cascada Plan are based on current conceptual designs and traffic projections. The actual design and improvement of the major roadways within the Property, including Camino de Manana and Linda Vista, will necessarily require adjustments from existing roadway alignments and corresponding parcel boundaries. Upon completion of the design and actual construction of the major roadways within the Property, the boundaries of the parcels established by the Cascada Plan shall be adjusted to correspond to the actual alignment of the roadways, as constructed, through the submittal of a revised plat or similar submittal permitted by paragraph 2.9 of this Agreement. In such submittal, Owner shall have the right to adjust the permitted uses and densities of land located along the actual roadway alignment to preserve the overall percentage or ratio of each such use and density classification within the Property permitted under the Cascada Plan. 2.9. Revised Plat. The Owner may submit and the Town shall approve revised block plats, subdivision plats, development plans or similar submittals for portions of the Property which may vary from the Cascada Plan, provided that the revisions in any such submittal are substantially consistent with the general development concept contained in the Cascada Plan, or the provisions of this Agreement, without the necessity of amending the Cascada Plan or this Agreement. The determination of consistency shall be made by the Town's Planning Director, and appeals may be taken to the Town's board of adjustment in a manner consistent with other zoning interpretation appeals. 2.10. Timing. The Town and Owner acknowledge the necessity of prompt review by the Town of all plans, applications, and other materials submitted by the Owner ("Submitted Materials") pursuant to the Cascada Plan, this Agreement, or any zoning, permit, or other similar procedure pertaining to the development of the Property. The Town agrees to use its best efforts to accomplish such prompt and expeditious review of all such Submitted Materials whenever possible. Article 3. Utilities and On-Site Infrastructure. 3.1. Water Utilities. The Owner has entered into a Water Service Agreement with the Town for potable and non-potable systems which sets forth the various agreements of the Parties relating to, among other things, the interconnection and main extension from the existing water system, and the development, construction, dedication, ownership, and design of the water system. 3.2. Fire Protection. Before a certificate of occupancy is issued for any dwelling unit on the Property, the Owner shall have completed or shall provide evidence to the Town that Owner has made a diligent effort to complete the process of having the Property annexed into a fire district. {00002248.DOC / 4} 8/23/20063:07 PM CASCADA SPECIFIC PLAN DEVELOPMENT AGREEMENT - 5 - 3.3. Compliance with State and Federal Laws and Regulations. Owner expressly acknowledges that no approval, permit or authorization of the Town authorizes the Owner to violate any applicable federal or state laws or regulations, or relieves the Owner from the independent responsibility to ensure compliance with all applicable federal and state laws and regulations, including but not limited to the Endangered Species Act and Clean Water Act. Article 4. Owner's Contributions for Roadway Improvements, Public Schools, and Public Parks and Trails 4.1. Cascada Plan Roadways. The Owner shall construct all interior subdivision streets and roads within the Property as set forth in the Cascada Plan in connection with the development of the various phases ofthe Property under the Cascada Plan. 4.2. Rights-of-Way for Adiacent Regional Roadways. The Owner shall dedicate all rights-of- way needed from the Property for any portion of the Adjacent Regional Roadways on the later of the following dates: 4.2.1. Ninety days after the effective date of this Agreement; or 4.2.2. Sixty days after the completion of 90% plans for the roadway that is the subject of the requested portion of right-of-way. 4.3. Concurrency of On site Development and the Twin Peaks T1 Proiect. The Owner shall be permitted to construct improvements on the Property before and during the construction of the Twin Peaks TI Project, provided that construction. activities on the Property and on adjacent roadways shall not unreasonably interfere with the construction of the Twin Peaks TI Project. 4.4. Owner's Construction of Portions of the CdM/L V Improvements. The Owner shall be permitted to construct portions of the CdM/L V Improvements to the extent they are necessary for the Cascada Development so long as the Owner's construction begins not later than eight months before and is contractually obligated to finish not later than the date of the then-anticipated start of construction of the Twin Peaks TI Project. Owner shall receive development impact fee credits (see Article 6 below) against the Marana South Transportation Development Impact Fee for its actual cost to construct portions of the CdM/LV Improvements. 4.5. Public Parks and Public Trails. The Property is subject to the Town-Wide Park Development Impact Fee adopted by Ordinance No. 2005.11, as amended from time to time (the "Park Impact Fee"). Owner shall receive development impact fee credits (see Article 6 below) against the Park Impact Fee for all land dedicated for public parks or public access trails, whether by the grant of fee title or a public access easement, and all costs incurred by Owner in the construction or improvement of the regional park and other public access parks or trails included in the Cascada Plan. 4.6. School Land. Developer shall elect to either dedicate land designated as school sites on the Cascada Plan to the Town in trust for public school use or shall pay Marana Unified School District a fee in lieu of the land dedication. This land is referred to as the "School Land." Until ownership of the School Land is transferred to a public school entity for the construction of a public school, the Town may use the School Land for public park purposes. The Town shall be obligated to transfer ownership of the School Land to a public school entity if the public school entity requests it and proves to the Town's satisfaction that actual construction ofa public school will begin on the School Land within a reasonable period of time. If ownership of the School Land is not transferred to a public school entity within 15 years of the date of this Agreement, (OOOO2248.DOC/4) 8/23/20063:07 PM CASCADA SPECIFIC PLAN DEVELOPMENT AGREEMENT - 6 - the School Land may be used by the Town of Marana for public recreation purposes. The School Land shall be delineated at the time of Town approval of the Preliminary Plat, based on feedback by the Marana Unified School District, the Town's Parks and Recreation Director, and the Town's Planning Director. In lieu of the dedication of the School Land, Developer may contribute a School Improvement Contribution Fee of $1,200 per residential lot, payable to the Marana Unified School District. The School Improvement Contribution Fee shall be due and payable at the issuance of the building permit for each residential unit. Article 5. Cooperation and Alternative Dispute Resolution. 5.1. Appointment of Representatives. To further the commitment of the Parties to cooperate in the progress of the Development, the Town and the Owner each shall designate and appoint a representative to act as a liaison between the Town and its various departments and the Owner. The initial representative for the Town (the "Town Representative") shall be the Planning Director, and the initial representative for the Owner shall be Cheryl Hall.o~ ~ !~RI~~e!l]~n_t _t2 _b~ _ _ _ - -{ Deleted: Jack Richter selected by the Owner. The representatives shall be available at all reasonable times to discuss and review the performance of the Parties to this Agreement and the development of the Property . 5.2. Default: Remedies. If either Party defaults (the "Defaulting Party") with respect to any of that Party's obligations under this Agreement, the other Party (the "Non-Defaulting Party") shall be entitled to give written notice in the manner prescribed in paragraph Article 8 to the Defaulting Party, which notice shall state the nature ofthe default claimed and make demand that such default be corrected. The Defaulting Party shall then have (i) twenty days from the date of the notice within which to correct the default if it can reasonably be corrected by the payment of money, or (ii) thirty days from the date of the notice to cure the default if action other than the payment of money is reasonably required, or if the non-monetary default cannot reasonably be cured within sixty days, then such longer period as may be reasonably required, provided and so long as the cure is promptly commenced within sixty days and thereafter diligently prosecuted to completion. If any default is not cured within the applicable time period set forth in this paragraph, then the Non-Defaulting Party shall be entitled to begin the mediation and arbitration proceedings set forth in this Article. The Parties agree that due to the size, nature and scope of the Development, and due to the fact that it may not be practical or possible to restore the Property to its condition prior to Owner's development and improvement work, once implementation of this Agreement has begun, money damages and remedies at law willlikely be inadequate and that specific performance will likely be appropriate for the enforcement of this Agreement. This paragraph shall not limit any other rights, remedies, or causes of action that either Party may have at law or in equity. 5.3. Mediation. If there is a dispute under this Agreement which the Parties cannot resolve between themselves, the Parties agree that there shall be a forty-five day moratorium on arbitration during which time the Parties agree to attempt to settle the dispute by nonbinding mediation before commencement of arbitration. The mediation shall be held under the commercial mediation rules of the American Arbitration Association. The matter in dispute shall be submitted to a mediator mutually selected by Owner and the Town. If the Parties cannot agree upon the selection of a mediator within seven days, then within three days thereafter the Town and the Owner shall request the presiding judge of the Superior Court in and for the County of Pima, State of Arizona, to appoint an independent mediator. The mediator selected shall have at least five years' experience in mediating or arbitrating disputes relating to real estate {00OO2248.DOC/4} 8/23/20063:07 PM CASCADA SPECIFIC PLAN DEVELOPMENT AGREEMENT - 7 - development. The cost of any such mediation shall be divided equally between the Town and the Owner. The results of the mediation shall be nonbinding on the Parties, and any Party shall be free to initiate arbitration after the moratorium. 5.4. Arbitration. After mediation, as provided for in this Article, any dispute, controversy, claim or cause of action arising out of or relating to this Agreement shall be settled by submission ofthe matter by both Parties to binding arbitration in accordance with the rules of the American Arbitration Association and the Arizona Uniform Arbitration Act, A.R.S. ~ 12-501 el seq., and judgment upon the award rendered by the arbitrator(s) may be entered in a court having jurisdiction. Article 6. Future Development Impact Fees 6.1. Credits. If the Town adopts a development impact fee for the same infrastructure for which the Owner has contributed land or made improvements or paid a voluntary fee pursuant to this Agreement, the Owner shall be entitled to a credit for such contributions as set forth in A.R.S. ~ 9-463.05. 6.2. Value of Dedicated Property. The portions of the Property dedicated for public use ("Dedicated Property") and for which Owner is entitled to receive a development impact fee credit shall be valued based on property values used to establish the applicable development impact fee. As currently in effect, the Marana South Transportation Development Impact Fee was established without including any anticipated costs for right-of-way acquisition. Consequently, to the extent dedication of right-of-way easements could be properly required for the Cascada Development, no development impact fee credit will be granted for right-of-way dedicated for improvements funded by the Marana South Transportation Development Impact Fee unless it is amended to include right-of-way costs or unless the Town adopts some other roadway development impact fee against which the right-of-way may be creditable. Nothing contained herein waives Owner's rights conferred by A.R.S. & 9-500.12. Article 7. Protected Development Rights 7.1. General. To ensure reasonable certainty, stability and fairness to the Owner and the Town for a reasonable period of time, the land use designations, uses, and densities that now apply to the Property, as amended by this Agreement, shall remain in effect and shall not be changed without the consent of the Owner as follows: 7.1.1. For a period of seven years after the effective date of this Agreement. 7.1.2. For an additional seven-year period if within the seven-year period referenced in paragraph 7.1.1 above the Owner has accomplished the following: 7.1.2.1. ,Construction of the sewer outfall line intended to serve the Cascada Development south of Lambert Lane: construction of a reservoir addition, approximately 6,500 gallons in size, augmenting the existing Hartman Vistas Reservoir: construction of a 16-inch water main intended to serve the Cascada Development; and obtaining active permits and undertaking grading, paving, and other infrastructure improvements, including roadways, ultimately to be dedicated to the public. 7.1.3. For an additional six-year period if within the seven-year period referenced in paragraph 7.1.2 above the Owner has accomplished the following: {OOOO2248.DOC /4} 8123/20063 :07 PM CASCADA SPECIFIC PLAN DEVELOPMENT AGREEMENT - 8 - -. Deleted: [Insert a list of specific items: rooftop benchmarks, square footage of commercial. construction of onsite public infrastructure, etc., presumably tracked to the "phases" mentioned in the recitals, that the Owner anticipates completing within the applicable period that justifies the additional vesting period.] 7.1.3. I. In addition to the foregoing, the Owner wiIl have completed construction of a second 16-inch weIl site to be dedicated to the Town or applicable water company and further engaged in grading, paving. sewer and water instaIlations in furtherance of the development specified in the Cascada Specific Plan and infrastructure improvements required by the Town of Marana. 7.1.4. To the extent market conditions or other unforeseen events impede the completion- - - - . of development within 21 years. and to the extent there is not an over-riding public need to modifY the Cascada Specific Plan, the Town of Marana and Owner agree to resolve. in good faith, the balancing of rights and further obligations against the public good in order to fulfiIl the obiectives ofthe Cascada Specific Plan. Article 8. Notices and Filings. 8.1. Manner of Serving. AIl notices, filings, consents, approvals and other communications provided for in or given in connection with this Agreement shaIl be validly given, filed, made, transmitted or served if in writing and delivered personaIly or sent by registered or certified United States mail, postage prepaid, if to (or to such other addresses as any Party may from time to time designate in writing and deliver in a like manner): To the Town: Town Manager Town of Marana Marana Municipal Complex 11555 West Civic Center Drive, A3 Marana, AZ 85653 Red Point Development, Inc. 8710 North Thornydale Road, #120 Tucson, AZ 85742 Article 9. General Terms and Conditions. 9.1. Term. This Agreement shaIl become effective upon its execution by all the Parties and the effective date of the resolution or action of the Town Council approving this Agreement (the "Effective Date"). The term of this Agreement shaIl begin on the Effective Date and, unless sooner terminated by the mutual consent of the Parties, shaIl automaticaIly terminate and shaIl thereafter be void for all purposes on the twentieth anniversary of the Effective Date. If the Parties determine that a longer period is necessary for any reason, the term of this Agreement may be extended by written agreement of the Parties. The Developer shaIl be entitled to terminate this Agreement if the Town materiaIly impairs the development entitlements on the Property granted by this Agreement. To Owner: 9.2. Waiver. No delay in exercising any right or remedy shaIl constitute a waiver of that right or remedy, and no waiver by the Town or the Owner of the breach of any covenant of this Agreement shaIl be construed as a waiver of any preceding or succeeding breach of the same or any other covenant or condition of this Agreement. 9.3. Attorney's Fees. If any Party brings a lawsuit against any other Party to enforce any of the terms, covenants or conditions of this Agreement, or by reason of any breach or default of this Agreement, the prevailing Party shaIl be paid all reasonable costs and reasonable attorneys' fees by the other Party, in an amount determined by the court and not by the jury. Nothing in the {00002248.DOC /4} 8/23120063:07 PM CASCADA SPECIFIC PLAN DEVELOPMENT AGREEMENT - 9 - ~ -' Deleted: [Insert a list of specific items: rooftop benchmarks, square footage of commercial, construction of on site public infrastructure, etc., presumably tracked to the "phases" mentioned in the recitals. that the Owner anticipates completing within the applicable period that justifies the additional vesting period.] Formatted: Bullets and Numbering use of the word "lawsuit" in the preceding sentence shall constitute a waiver of paragraph 5.4 above, requiring disputes to be resolved by binding arbitration. 9.4. Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. The signature pages from one or more counterparts may be removed from such counterparts and such signature pages all attached to a single instrument so that the signatures of all Parties may be physically attached to a single document. 9.5. Headings. The descriptive headings of this Agreement are intended to be used to assist in interpreting the meaning and construction of the provisions ofthis Agreement. 9.6. Recitals. The Recitals set forth at the beginning of this Agreement are hereby acknowledged, confirmed to be accurate and incorporated here by reference. 9.7. Exhibits. Any exhibit attached to this Agreement shall be deemed to have been incorporated in this Agreement by reference with the same force and effect as if fully set forth in the body of this Agreement. 9.8. Further Acts. Each of the Parties shall execute and deliver all documents and perform all acts as reasonably necessary, from time to time, to carry out the matter contemplated by this Agreement. Without limiting the generality of the foregoing, the Town shall cooperate in good faith and process promptly any requests and applications for plat or permit approvals or revisions, and other necessary approvals relating to the development of the Property by the Owner and its successors. 9.9. Future Effect. 9.9.1. Time Essence and Successors. Time is of the essence of this Agreement. All of the provisions of this Agreement shall inure to the benefit of and be binding upon the successors, assigns and legal representative of the Parties, except as provided in paragraph 9.9.2 below. Notwithstanding the foregoing, to the extent permitted by law, the Owner's rights under this Agreement as to all or any phase or portion of the Cascada Plan or the Property may only be assigned by a written instrument, agreed to by all of the Parties and recorded in the Official Records of Pima County, Arizona, expressly assigning such rights, and no obligation of the Owner under this Agreement shall be binding upon anyone owning any right, title or interest in the Property unless such obligation has been specifically assumed in writing or unless otherwise required by law. The Town understands that the Owner may create one or more entities or subsidiaries wholly owned or controlled by the Owner for purposes of carrying out the development of the Property as contemplated in this Agreement, and the Town's consent to the Owner's assignment of its rights under this Agreement to such entities or subsidiaries shall not be withheld. In the event of a complete assignment by Owner of all rights and obligations of Owner under this Agreement, or as to any phase or portion of the Cascada Plan or the Property, Owner's liability under this Agreement shall terminate, as to the phase or portion of the Property assigned, effective upon the assumption of those liabilities by Owner's assignee, provided that the Town has approved the assignment to such assignee, which approval shall not unreasonably be withheld. 9.9.2. Termination Upon Sale to End Purchaser or User. This Agreement shall terminate without the execution or recordation of any further document or instrument as to any lot which has been finally subdivided and individually (and not in "bulk") leased (for a period of {00002248.DOC / 4} 8/23/20063 :07 PM CASCADA SPECIFIC PLAN DEVELOPMENT AGREEMENT - 10- longer than one year) or sold to the end purchaser or user and thereupon such lot shall be released from and no longer be subject to or burdened by the provisions of this Agreement. 9.10. No Partnership and Third Parties. It is not intended by this Agreement to, and nothing contained in this Agreement shall, create any partnership, joint venture or other arrangement between the Owner and the Town. No term or provision of this Agreement is intended to, or shall be for the benefit of any person, firm, organization or corporation not a party to this Agreement, and no such other person, firm, organization or corporation shall have any right or cause of action under this Agreement. 9.11. Other Instruments. Each Party shall, promptly upon the request of the other, have acknowledged and delivered to the other any and all further instruments and assurances reasonably request or appropriate to evidence or give effect to the provisions of this Agreement. 9.12. Imposition of Duty by Law. This Agreement does not relieve any Party of any obligation or responsibility imposed upon it by law. 9.13. Entire Agreement. This Agreement constitutes the entire agreement between the Parties pertaining to the subject matter of this Agreement. All prior and contemporaneous agreements, representation and understanding of the Parties, oral or written, are hereby superseded and merged in this Agreement. 9.14. Amendments to Agreement. No change or addition shall be made to this Agreement except by a written amendment executed by the Parties. The Parties agree to cooperate and in good faith pursue any amendments to this Agreement that are reasonably necessary to accomplish the goals expressed in the Final Plats or Development Plans governing the Property and Cascada Plan as amended by this Agreement. Within ten days after any amendment to this Agreement, it shall be recorded in the office of the Pima County Recorder by and at the expense of the Party requesting the amendment. 9.15. Names and Plans. The Owner shall be the sole owner of all names, titles, plans, drawings, specifications, ideas, programs, ideas, designs, and work products of every nature at any time developed, formulated or prepared by or at the instance of the Owner in connection with the Property or any plans; provided, however, that in connection with any conveyance of portions of the infrastructure as provided in this Agreement such rights pertaining to the portions of the infrastructure so conveyed shall be assigned to the extent that such rights are assignable, to the appropriate governmental authority. 9.16. Good Standing; Authority. The Owner represents and warrants to the Town that it is duly formed and validly existing under the laws of Arizona and is authorized to do business in the state of Arizona. The Town represents and warrants to the Owner that it is an Arizona municipal corporation with authority to enter into this Agreement under applicable state laws. Each Party represents and warrants that the individual executing this Agreement on its behalf is authorized and empowered to bind the Party on whose behalf each such individual is signing. 9.17. Severability. If any provision of this Agreement is declared void or unenforceable, it shall be severed from the remainder of this Agreement, which shall otherwise remain in full force and effect. If a law or court order prohibits or excuses the Town from undertaking any contractual commitment to perform any act under this Agreement, this Agreement shall remain in full force and effect, but the provision requiring the act shall be deemed to permit the Town to {00002248.DOC /4} 8/23/20063:07 PM CASCADA SPECIFIC PLAN DEVELOPMENT AGREEMENT - 11 - act at its discretion, and if the Town fails to act, the Owner shall be entitled to tenninate this Agreement. 9.18. Governing Law. This Agreement is entered into in Arizona and shall be construed and interpreted under the laws of Arizona, and the Parties agree that any litigation or arbitration shall take place in Pima County, Arizona. Nothing in the use of the word "litigation" in the preceding sentence shall constitute a waiver of paragraph 5.4 above, requiring disputes to be resolved by binding arbitration. 9.19. Interpretation. This Agreement has been negotiated by the Town and the Owner, and no Party shall be deemed to have drafted this Agreement for purposes of construing any portion of this Agreement for or against any Party. 9.20. Recordation. The Town shall record this Agreement in its entirety in the office of the Pima County Recorder no later than ten days after it has been executed by the Town and the Owner. 9.21. No Owner Representations. Except as specifically set forth in this Agreement, nothing contained in this Agreement shall be deemed to obligate the Town or the Owner to complete any part or all ofthe development of the Property. 9.22. Approval. If any Party is required pursuant to this Agreement to give its prior written approval, consent or pennission, such approval, consent or pennission shall not be unreasonably withheld or delayed. 9.23. Force Maieure. If any Party shall be unable to observe or perfonn any covenant or condition of this Agreement by reason of "force majeure," then the failure to observe or perfonn such covenant or condition shall not constitute a default under this Agreement so long as such Party shall use its best effort to remedy with all reasonable dispatch the event or condition causing such inability and such event or condition can be cured within a reasonable amount of time. "Force majeure," as used in this paragraph, means any condition or event not reasonably within the control of such Party, including without limitation, "acts of God," strikes, lock-outs, or other disturbances of employer/employee relations; acts of public enemies; orders or restraints of any kind of government of the United States or any state thereof or any of their departments, agencies, or officials, or of any civil or military authority; insurrection; civil disturbances; riots; epidemics; landslides; lightning; earthquakes; subsidence; fires; hurricanes; stonns; droughts; floods; arrests, restraints of government and of people; explosions; and partial or entire failure of utilities. Failure to settle strikes, lock-outs and other disturbances of employer/employee relations or to settle legal or administrative proceedings by acceding to the demands of the opposing Party or Parties, in either case when such course is in the judgment of and unfavorable to a Party shall not constitute failure to use its best efforts to remedy such a condition. 9.24. Conflict of Interest. This Agreement is subject to A.R.S. S 38-511, which provides for cancellation of contracts in certain instances involving conflicts of interest. {00002248.DOC / 4} 8/23/20063 :07 PM CASCADA SPECIFIC PLAN DEVELOPMENT AGREEMENT - 12 - IN WITNESS WHEREOF, the Parties have executed this Agreement as of the last date set forth below their respective signatures. TOWN: OWNER: THE TOWN OF MARANA, an Arizona municipal corporation RED POINT DEVELOPMENT, ,lliS;;..1. ~~ !\riz_op~ _ ~ _ -. Deleted: L.L.C .,corporation _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Formatted: Small caps Deleted: limited liability company By: Laurence C. Leung, President Date: By: Ed Honea, Mayor Date: [NAME] A TIEST: Jocelyn C. Bronson, Clerk By: [Title] Date: ApPROVED AS TO FORM: Frank Cassidy, Town Attorney STATE OF ARIZONA) SS County of Pima The foregoing instrument was acknowledged before me on by [Name], [Title] of [OWNER NAME], an Arizona corporation, on behalf of the corporation. My commission expires: Notary Public STATE OF ARIZONA) ss County of Pima The foregoing instrument was acknowledged before me on by [Name], [Title] of [OWNER NAME], an Arizona corporation, on behalf of the corporation. My commission expires: Notary Public {00002248. DOC / 4} 8/23/20063:07 PM CASCADA SPECIFIC PLAN DEVELOPMENT AGREEMENT - 13 - Frank Cassidy From: Sent: To: Cc: Subject: Frank Cassidy Monday, October 09, 2006 3:33 PM 'G. Lawrence Schubart - Stubbs & Schubart, P.C.' Mike Reuwsaat; Gilbert Davidson; Keith Brann; Barbara Berlin; Fernando Prol; Kevin Thornton Cascada DA Revised Draft Larry: I have reviewed the draft Cascada Specific Plan DA you sent to me on September 26. We are generally pleased with it. After speaking to the Town Manager and staff, we believe the following relatively minor revisions are needed: o Paragraph 2.7 of the draft DA, which involves management of open space, will need to be modified to add specificity (does your client plan to put ownership in a HOA?) and to allow third party enforcement (in other words, enforcement by the Town) if the party specified for enforcement in the management plan (presumably the HOA) fails to enforce. o Paragraph 3.2 needs to be modified to specify Northwest Fire District. o Paragraph 4.6 needs to be at MUSD's option. The words "elect to" should be deleted and replaced with "at the option of Marana Unified School District." o Because of the timing of this DA relative to the election, we need to add a provision to address the possible effects of Proposition 207, acknowledging that this is a voluntary downzoning for which no compensation is required. I look forward to hearing from you. If we can turn these last few revisions around prompdy, we should be able to place this on the Council's November 7 agenda for adoption. -- Frank 1 Page 1 of 1 Frank Cassidy From: Frank Cassidy Sent: Tuesday, October 31, 200612:42 PM To: 'G. Lawrence Schubart - Stubbs & Schubart, P.C.' Cc: Barbara Berlin Subject: URGENT: Cascada DA Attachments: Cascada DA Revised Draft Larry: I need the "fmal" version of the Cascada DA, with exhibits, as soon as possible for inclusion in the Council packets. Otherwise we will have a difficult time getting the Council to approve it at next Tuesday's meeting. We will also need to have in hand not later than the start of next Tuesday's meeting a fully executed copy of the DA, with exhibits. The last version of the DA I've seen is the PDF redline you emailed me on September 26. To date, I have not seen a revision that addresses my comments sent to you via email on October 9 (a copy of that email is attached). Not mentioned in that email but obvious upon reading the DA is the need to replace bracketed language' (for example, "[Name]" and "[fitle]") and to provide the correct entity names. In your draft, you've revised the principal's name, but you have not added the title owners. According to the Pima County Assessor's records, some of this land is held in the name of Fidelity National Title under Trust No. 10789 and some is held in the name of Pacific International Properties LLP, both of whom (along with any other title owner of any portion of the land covered by the Specific Plan and DA) need to be added into the introductory paragraph of the agreement (and there included in the term "Owner") AND as signers to the agreement (my original form had room for one additional signer - thus the "[Name]" and "[fitle]" discussion above). If you have not already made the requested revisions, please either make them at this time for my review or send me the Word version of the document so that I can revise it accordingly. I will begin getting major flak from the Clerk's office if I do not have the document in hand by close of business tomorrow, and the Council will begin complaining if the agenda materials, with the fmal version of the DA, are not in their hands by Thursday evening. I look forward to hearing from you at your earliest convenience. --Frank 11/2/2006