Loading...
HomeMy WebLinkAboutItem 5g. Approval of Final Map for Tract 3089 Phases 2 and 4 of Avila Ranch Development (175 Venture Drive, FMAP-0562-2022) Item 5g Department: Community Development Cost Center: 4003 For Agenda of: 1/23/2024 Placement: Consent Estimated Time: N/A FROM: Timmi Tway, Community Development Director Prepared By: Nate Stong, Supervising Civil Engineer SUBJECT: APPROVAL OF THE FINAL MAP FOR TRACT 3089 PHASES 2 & 3, AVILA RANCH, 175 VENTURE DRIVE (FMAP-0562-2022) RECOMMENDATION Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, approving the Final Map for Tract 3089 Phase s 2 & 3, Avila Ranch, including an addendum to the Final Environmental Impact Report modifying the timing of Mitigation Measure TRANS-11, and authorizing the Mayor to execute a Subdivision Agreement in a form subject to the approval of the City Attorney (175 Venture Drive, FMAP-0562-2022).” REPORT-IN-BRIEF A vesting tentative map for Avila Ranch (Tract 3089) was approved by the City Council on September 19, 2017, by Resolution No. 10832. The Phase 1 Final Map was approved by the City Council on December 4, 2018 , by Resolution No. 10968. Phases 2 & 3 will create 121 single-family residential lots, 1 multi-family lot, and various lots for parks and open space. The City and the developer have entered into a Development Agreement (DA), adopted by City Council on October 3, 2017, by Ordinance No. 1639. A Community Facilities District (CFD) was approved by Ordinance No. 1642 for Tract 3089 to close the gap between anticipated general fund revenue to be generated by the development and projected costs to provide services to the development. Phase 2 transportation mitigation projects include the construction of two bicycle bridges over Tank Farm Creek located north and south of Buckley Road as required by the project’s Final Environmental Impact Report (FEIR) Mitigation Measure TRANS -11 and Condition of Approval #109. An Addendum to the FEIR has been prepared to address a minor change to the timing of a portion of the mitigation measure and modify the timing of the south-separated bicycle bridge from Phase 2 to Phase 4 to create consistency with the timing of the bicycle lanes that will be installed on Buckley Road in Phase 4, and to minimize construction impacts on properties to the south where a construction easement and right-of-way acquisition is needed to complete the improvements. Page 131 of 668 Item 5g A Phase 3 Affordable Housing Agreement will be recorded concurrently with the Final Map to implement the original 2017 Affordable Housing Plan adopted as Exhibit G of the Avila Ranch Development Agreement. The draft Phase 3 Affordable Hous ing Agreement includes location changes for the affordable units in the multi-family portion of the development, as explained further in the report. POLICY CONTEXT This item supports the development of 121 housing units, which directly advances a Major City Goal for additional housing needs. City Council approval is required for subdivision final maps pursuant to Government Code 66458(a)1. DISCUSSION Tract 3089 Phases 2 & 3 Avila Ranch (FMAP-0562-2022) is located at 175 Venture Drive as shown on the Vicinity Map provided as Attachment B. Background / Previous Council Action A vesting tentative map for Tract 3089 was approved by the City Council on September 19, 2017, by Resolution No. 10832 (2017 Series). The approved tentative map (Attachment C) showed a total of 429 lots consisting of 401 single-family lots, nine multi- family lots for up to 322 units, 11 park lots, two open space lots, two commercial lots, two public facilities lots, and two lots for right-of-way purposes. At that same meeting, an Ordinance to adopt a Development Agreement was introduced and a Resolution of Intention to establish the Community Facilities District (CFD) was approved. The City and the developer entered into a Development Agreement (DA), adopted by City Council on October 3, 2017, by Ordinance No. 1639 (2017 Series). The final steps to implement the CFD occurred at the November 21, 2017 Council meeting where the City Council adopted Ordinance No. 1642 (2017 Series) establishing a Special Tax for the CFD. The CFD was required to close the gap between anticipated general fund revenue to be generated by the development and projected costs to provide services to the development, such as police and fire, and to maintain the public infrastructure within Tract 3089 including parks, streets, sidewalks, parkways, open space, and storm drainage systems. The previous phase, Phase 1 final map was approved by Resolution No. 10968 (2018 Series) on December 4, 2018. Phase 1 created 179 single-family residential lots, three lots for 125 multi-family units, a lot for an interim fire station, and various lots for parks and public facilities. 1 66458(a) The legislative body shall, at the meeting at which it receives the map or, at its next regular meeting after the meeting at which it receives the map, approve the map if it conforms to all the requirements of this chapter and any local subdivision ordinance applicable at the time of approval or conditional approval of the tentative map and any rulings made thereunder. If the map does not conform, the legislative body shall disapprove the map. Page 132 of 668 Item 5g Phasing At the time of tentative map submittal, the subdivider proposed to develop the project as shown on the Phasing Plan provided as Attachment D. The conditions and mitigation measures were developed based on this phasing plan. The subdivider is not required to adhere to the phasing plan, but creating lots out of phase could result in subsequent environmental review and new or modified conditions in order to properly mitigate the impacts and provide for orderly development. The Tract 3089 Phases 2 & 3 map is creating a total of 126 lots consisting of:  121 single-family residential units (Lots 205 to 325)  One reconfigured lot for multi-family (Lot 327, a merger of Lots 185 and 188 from Phase 1)  Two public park lots (Lots 326 and 330)  One lot for public open space (Lot 329)  One lot for Creek purposes (Lot 328) Minor Corrections to Approved Tentative Map City Municipal Code Section 16.10.160 grants the Community Development Director the authority to approve minor corrections to an approved tentative map or conditions of approval if all the following are true: 1. No lots, units or building sites are added or deleted; and 2. The proposed changes are consistent with the intent and spirit of the original tentative map approval; and 3. The proposed changes are consistent with the zoning regulations, the building code, the General Plan, and the Subdivision Map Act. Under the authority listed above, the Community Development Director has approved the following minor corrections for Tract 3089: 1. Revision of the lot numbering from tentative map to final map so that the numbering would be consecutive on the final map as required by Section 16.14.040.H of the San Luis Obispo Municipal Code. Although the tentative map shows up to 723 residential units being constructed, the resolution approving the tentative map and the Development Agreement both state that only 720 residential units are approved. 2. Revision to the timing of a portion of Condition of Approval #109 which reiterates Mitigation Measure TRANS-11, discussed below. The condition and mitigation measure requires bicycle bridges on each side of Buckley Road at Tank Farm Creek. The timing for installation of the south bicycle bridge as provided in Condition of Approval #109 is modified for consistency with the FEIR Addendum to modify Mitigation Measure TRANS-11 as discussed below. Page 133 of 668 Item 5g Modification to Timing of Mitigation Measure TRANS-11 The Avila Ranch FEIR Mitigation Measure TRANS-11 and Condition of Approval #109 established an obligation for the project to install two separated bicycle bridges on each side of Buckley Road at Tank Farm Creek to improve access to safe bicycle routing along Buckley Road. These improvements were required to address a transportation policy impact related to the City’s Bicycle Transportation Plan, which identified future plans to provide continuous bicycle facilities along Buckley Road. The timing of this mitigation measure was not developed based on any quantitative threshold of significance but with the general intent to provide for orderly development and infrastructure improvements as the development builds out consistent with the Bicycle Transportation Plan. As originally approved, construction of these bridges was required prior to Phase 2 of the Avila Ranch project and was envisioned to be constructed simultaneously with the Buckley Road Extension, which was also required prior to Phase 2. Avila Ranch has since completed the Buckley Road Extension, choo sing to advance this street extension with Phase 1 of the development. Avila Ranch has also substantially completed the preliminary/conceptual design for the bicycle bridge on the south side of Buckley Road, which is being processed through San Luis Obispo County permitting review but has encountered challenges acquiring the necessary right -of-way for construction. One of the primary challenges associated with the right-of-way acquisition are concerns regarding the functionality and safety of constructing the bicycle bridge with Phase 2, when the bridge would connect back to a segment of Buckley Road with no existing bike lanes east of the bridge. Instead, there has been a request to defer construction of this bicycle bridge until Phase 4 of the Avila Ranch development, as the project is required to construct additional road widening on Buckley east of the bridge with Phase 4, which will provide 8-foot-wide shoulders/bicycle lanes further to the east. Deferral of the bicycle bridge to Phase 4 would result in a more continuous bicycle facility along this segment and limit the overall duration of construction impacts to the private property owner on the south side of the roadway. Both City and County Public Works staff have considered the Avila Ranch representative’s formal request to defer construction of the remaining bicycle bridge on the south side of Buckley Road to Phase 4 of the developmen t and concur with this request. Based on staff’s review, this modification would not result in any new or exacerbated impacts as identified in the approved project EIR and the project would retain the obligation to improve bicycle facilities on Buckley Road for consistency with the City’s adopted Bicycle Transportation Plan (now Active Transportation Plan). An Addendum to the Final EIR has been prepared to address the timing modification discussed above and is included as Attachment E of this report for Council consideration. For clarity, staff is recommending that the requirement to construct the bicycle bridge on the north side of Buckley Road remain a condition tied to Phase 2 of the development, as originally approved. Construction of this facility would not require the acquisition of off- site right-of-way. Page 134 of 668 Item 5g Community Facilities District The Community Facilities District (CFD) for Avila Ranch was established by Council Ordinance No. 1642 (2017 Series) for Tract 3089 to fund both services and infrastructure maintenance. The CFD closes the gap between anticipated general fund revenue generated by the development and projected costs to provide services to the development, such as police and fire, and to maintain the public infrastructure including parks, streets, sidewalks, parkways, open space, and storm drainage systems. Maintenance of water and sewer infrastructure in Tract 3089 will be funded the same as the rest of the citywide system via the enterprise program. This is the City’s first CFD established for the purpose of ongoing maintenance. The CFD also helps to cover the cost of City services associated with residential development such as Fire, Police, and infrastructure maintenance. A property tax exchange with the County of San Luis Obispo was established for this property when it was annexed and was based on the County’s master tax exchange agreement for commercial land. This tax exchange does not provide the City with any property tax increment as the property is developed. Therefore, the CFD ensures adequate funding is available for the City to maintain the public facilities and services that will serve this new neighborhood. The funds for the CFD will be collected by the County with the regular property tax assessments, beginning with the issuance of the building permit on each lot. The County disperses the funds to the City twice per year. Affordable Housing Within the entire Avila Ranch Development Plan area, there is a requirement to provide inclusionary housing to be met through a combination of construction of affordable units, dedication of land, and payment of in-lieu fees. In addition, the DA includes design and development strategies that serve to provide a range of additional affordable housing in excess of standard inclusionary ordinance requirements, as demonstrated in Table 1. These are contractual requirements of the Affordable and Workforce Housing Plan (Exhibit G in the Council-adopted DA). An Affordable Housing Agreement for Phases 2 & 3 will be recorded concurrently with the recording of the Phases 2 & 3 Final Map. Phase 3 includes the multi-family portion of the Avila Ranch development and contains a large portion of the project’s affordable and inclusionary housing. The original 2017 Affordable and Workforce Housing Plan (Exhibit G in the Council-adopted Development Agreement) identified the following affordable components in Phase 3:  24 lower-income for-rent units, to be constructed by an affordable housing developer  8 low-income for-rent units within the market rate apartment development  8 moderate-income two-bedroom/1-bath for-rent units within the market rate apartment development  3 moderate-income two-bedroom/1-bath for-sale units within the detached R-2 zoned area  5 workforce for-sale units within the detached R-2 zoned area Page 135 of 668 Item 5g Avila Ranch has submitted a separate application for development review (ARCH -0197- 2023) that includes a density bonus request, which will be reviewed by the Planning Commission for the development of the R-4 zoned parcels recorded with the Phase 1 Final Map. The R-4 application proposes to construct a 60-unit, 100% affordable housing project on Lot 186 located on the west side of Earthwood Lane north of Venture Drive as shown in Figure 1 below, which has been dedicated to an affordable housing developer, and 85-units on Lots 185 and 188 as the market rate development portion of the project located on the east side of Earthwood Lane opposite Lot 186. Lots 185 and 188 are proposed to be merged on the Phases 2 & 3 Final Map and renumbered as Lot 327. Figure 1: High Density (R-4) Multi-family Parcels Within Avila Ranch Lot 186: 100% Affordable Housing to be developed by Affordable Housing Developer Lots 188 & 185 (To Be Merged as Lot 327): Market Rate Apartments In compliance with the DA, the required 24 -lower income for-rent units would be developed on Lot 186 as part of the 100% affordable project on that lot. The applicant also proposes transferring the 8 low-income and 8 moderate-income for-rent units from the market rate R-4 apartment site to the affordable housing site. In exchange for providing these 16 affordable for-rent units on the affordable housing site, instead of the market rate R-4 site as originally contemplated, the applicant and the affordable ho using provider are proposing to provide an additional 19 moderate-income units (and one manager’s unit) as part of the affordable housing project on Lot 186 by utilizing Density Bonus Law. This results in a net increase in total affordable housing units i n the project compared to what was originally contemplated. Page 136 of 668 Item 5g Table 1: Avila Ranch Affordable Housing Requirements Required by Inclusionary Ordinance Required by Avila Ranch Development Agreement Provided / Currently Proposed  Dedication of parcel to affordable housing developer at no cost 1.0 acres 1.2 acres 1.2 acres (completed)  Construction of lower-income rental units on land dedicated to affordable housing developer 22 units 24 units 24 units  Construction of low-income rental units none 8 Within market rate rentals 8 On affordable housing site  Construction of moderate- income rental units 8 8 Within market rate rentals 8 On affordable housing site  Density Bonus – additional units on affordable housing site (in process) none none 19 moderate income units  Moderate-income for-sale units 45 units 27 units 27 units  Workforce for-sale units none required 25 units 25 units (some completed)  Commercial parcels - Payment of in-lieu fees or build affordable units Construct 4 units or pay in- lieu fees Construct 4 units or pay in- lieu fees Construct 4 units or pay in- lieu fees  Down payment assistance for Workforce units ($20,000 per unit) none required $500,000 provided $500,000 provided (some completed)  Local preference program none required provided provided  Range of housing sizes and types none required provided provided Total: 71 Affordable units 71 Affordable units 25 Workforce units 90 Affordable units 25 Workforce units Page 137 of 668 Item 5g Section 8.06 of the Development Agreement allows for flexibility on the provisions of the DA and minor modifications of the details of the Development Plan. City staff is in support of the proposed location change for the 16 affordable for -rent units as it would create a net benefit of an additional 19 deed-restricted affordable units within the project. This would create a substantial positive impact in meeting the City’s affordable housing goals. While the 16 affordable for-rent units will no longer be intermixed within the market rate units, the affordable and market-rate apartment buildings have been designed to match in style and quality and will present as a unified multi-family development. Timing requirements in both the Phase 1 and the draft Phase 3 Affordable Housing Agreements ensure that the for-rent affordable units will be constructed early in the project and not left to the last phase, as required by the DA. The 40 for -rent affordable units on the affordable housing site fulfill a majority of the project’s inclusionary housing requirement, and therefore, completion of these units is required to fulfill Avila Ranch’s affordable housing obligations. The draft Phase 3 Affordable Housing Agreement (Sections 5.4 and 5.5) includes a timing milestone that requires building construction to commence on the affordable site prior to of issuance of a building permit for Avila Ranch’s 500th unit, and construction of the affordable for-rent units to be substantially complete prior to the issuance of a building permit for Avila Ranch’s 550th unit. These timing requirements were developed to give the affordable housing developer enough time to acquire financing and permits for the project and to create measurable milestones to ensure the affordable development moves forward in a timely manner. Section 8.06 of the Development Agreement allows for flexibility on the provisions of the DA and minor modifications of the details of the Development Plan. City staff is in support of the proposed location change for the 16 affordable for-rent units as it would create a net benefit of an additional 19 deed-restricted affordable units within the project. This would create a substantial positive impact in meeting the City’s affordable housing goals. While the 16 affordable for-rent units will no longer be intermixed within the market-rate units, the affordable and market-rate apartment buildings have been designed to match in style and quality and will present as a unified multi-family development. Timing requirements in both Phase 1 and the draft Phase 3 Affordable Housing Agreements ensure that the for-rent affordable units will be constructed concurrently with the for-rent market rate units. The Affordable Housing Agreement is the implementation tool to record covenants and achieve the goals of the original 2017 Affordable and Workforce Housing Plan. City staff recommends that the proposed modifications to the location of the 8 low- and 8 moderate- income multi-family affordable units be approved through recordation of this agreement. A draft of the Phase 3 Affordable Housing Agreement is provided as Attachment F for Council consideration, and a finding is included in the attached resolution stating that the Phase 3 Affordable Housing Agreement is in substantial conformance with 2017 DA. Page 138 of 668 Item 5g Parks Section 7.03 of the DA requires the subdivider to dedicate land in excess of that ordinarily required by the City to construct public parks in south San Luis Obispo, an area that presently has a deficiency of park area. In particular, Tract 3089 shall provide 18.25 acres of public parkland, 1.76 acres in excess of City requirements. As shown on the Park Layout provided in Attachment G, a total of nine park lots labeled Park A through Park I are proposed in Tract 3089. The Parks and Recreation Commission (PRC) reviewed the conceptual plans for Parks A through I on January 4, 2017, and recommended approval to the Council. The PRC also reviewed and approved detailed park plans for Parks A, B, and C at that time. Parks D and E are proposed to be constructed in Phases 2 & 3. Phases 2 & 3 provide sufficient parkland and park improvements to meet City requirements based on the projected population and housing onsite, so there would be no "in-lieu" park fees needed. Project-related fees, taxes and assessments are described in Section 5.04 of the Development Agreement. Parks are not among the identified fee -generators in this section. Off-Site Transportation Improvements Per the subdivision conditions of approval, mitigation measures, and the DA, Tract 3089 is required to complete multiple off -site transportation improvements to mitigate for the increase in traffic generated by the development. Many of these improvements were constructed with Phase 1 of the tract, including construction of the Buckley Road Extension, extension of the northbound right-turn lane at the Higuera/South intersection, addition of bicycle lanes on Vachell Lane, and improvements to the S. Higuera/Tank Farm intersection. The Subdivider has also paid fair share mitigation fees with Phase 1 for additional off-site projects that are not triggered solely by this development but will ultimately be needed upon build-out of the City, including contributions towards future improvements on the Buckley Road east of Vachell and the Buckley/Highway 227 intersection. Phases 2 & 3 are subject to additional required improvements. The developer will enter into the draft Subdivision Improvement Agreement provided as Attachment H, which includes bonding requirements if the improvements are not completed at time of map recordation. The Phase 2 & 3 requirements are listed below:  Phase 2 intersection improvements to Higuera/Vachell, including installation of a permanent median and left-turn access restrictions [Condition #104]  Construction of sidewalk on the east side of South Higuera Street from Los Osos Valley Road to City Limits [Condition #111]  Buckley Road Bicycle/Pedestrian Bridges at Tank Farm Creek (Nort h bridge to be constructed with Phase 2, south bridge to be deferred to Phase 4) [Condition #109 and MM TRANS-11]  Fees: o Buckley/Vachell Fair Share Mitigation – Funds fair share contribution towards future intersection control upgrades (roundabout or signal). Fees are due with map recordation of each phase based on the percent of total unit count in that Page 139 of 668 Item 5g phase. The total for full build-out is $107,250, so the amount due with the Phase 2 & 3 map is the percent of total units included in Phases 2 & 3 multiplied by $107,250. o Citywide and Los Osos Valley Road Subarea Transportation Impact Fees (TIF). Fees are vested into the TIF rate schedule that is in effect at the time of final map recordation for each phase. Fees are paid with each building permit issuance while accounting for available fee credits remaining for eligible infrastructure improvements constructed by Avila Ranch. o The additional multi-family units added with the separate Phase 3 density bonus request will also trigger additional fair share mitigation fees for future intersection improvements at Buckley/Highway 227, Buckley/Vachell, and Buckley/Davenport. There are other improvements identified in the conditions, mitigation measures, and the DA where the Subdivider is required to pay a fee for the project’s fair share of the improvement instead of constructing the improvement. Some of these fees are for future intersection improvements along Buckley Road, the extension of the Bob Jones Trail, improvements at the S. Higuera/Los Osos Valley Road intersection, and the recent improvements to the Los Osos Valley Road interchange. Other required fair share fees have been moved into the Citywide TIF, so payment of the current Citywide TIF by the Subdivider would satisfy those requirements. Unless otherwise allowed in the project approvals, the fair share fees will be paid at map recordation. Reimbursement Agreements As outlined in the Development Agreement and the conditions of approval, some of the infrastructure improvements being constructed with Tract 3089 are eligible for reimbursement either through impact fee credits, or through payments from other developers, and in some cases, via general fund contributions. All local funding contributions towards reimbursement obligations to Avila Ranch have already been allocated in previous Financial Plans. To facilitate these reimbursements, a Public Reimbursement Agreement was approved by the City Council on December 4, 2018 by Resolution 10968, and a Private Reimbursement Agreement was approved on June 18, 2019 by Resolution 11022. Wetlands Phases 2 & 3 will not be disturbing any wetlands, therefo re no easement documents for wetlands will need to be prepared. Agricultural and Open Space Conservation To compensate for the loss of onsite agricultural lands and to meet the open space objectives of the General Plan, Section 7.04 of the Development Agreement requires Tract 3089 to dedicate at least 50 acres of on-site open space and/or agricultural land and preserve at least 50 acres of offsite open space and/or agricultural land. The Subdivider has dedicated an easement for 30 acres of on -site agricultural land with the Phase 1 map. Phases 2 & 3 will dedicate 3.6 acres of open space, located on lots 328 and 329, but will not need to dedicate any agricultural lands at this time. The balance of Page 140 of 668 Item 5g on-site agricultural lands and open space will be dedicated in future phases as shown on the approved tentative map. It should also be noted that the Avila Ranch project opted to satisfy some its open space conservation requirements through an in -lieu fee, which has been received and is paid in full. The resolution approving the final map authorizes the City Clerk to accept an offer of dedication in fee for Lots 328 and 329 for Open Space purposes and Lots 326 and 330 for Public Park Purposes with the signature of the Clerk on the Final Map. The acceptance of the fee offers will provide for all potential uses of that site, including drainage, pedestrian and bicyclist access, public utilities, and bridges. Approving the Final Map Although tentative maps typically have an initial two-year life per Municipal Code Section 16.10.150, approval of a DA allows for that lifespan to be extended pursuant to Government Code Section 66452.6(a)(1). Section 8.04 of the DA extends the life of the tentative map to the later of (i) the expiration or earlier termination of the Dev elopment Agreement or (ii) the date upon which the tentative map would expire under the laws of the State of California. According to Section 1.03.1 of the DA, the duration of the DA could extend to the year 2047. The final map for Tract 3089 Phases 2 & 3 (Attachment I) is ready to be approved. There may be minor revisions still required for technical accuracy and condition compliance, to be completed before the map records. Pursuant to Section 16.14.080 of the Municipal Code, the Public Works Director has determined that the final map is in substantial compliance with the tentative map and approved modifications thereof. California Government Code Section 66474.1 states that “a Legislative body shall not deny approval of a final or parcel map if it has previously approved a tentative map for the proposed subdivision and if it finds that the final or parcel map is in substantial compliance with the previously approved tentative map.” The approval of a final map is considered a ministerial action. Appropriate securities will be submitted prior to map recordation to guarantee completion of the required subdivision improvements as shown in the Subdivision Agreement (Attachment G). The Subdivision Agreement is still in draft form as some details still need to be confirmed with the Subdivider such as the amount and timing of fee payments, bonds, and specific language in the agreement. The resolution approving the final map also authorizes the Mayor to sign the Subdivision Agreement requiring the Subdivider to complete the subdivision improvements. Policy Context The proposed action approving the final map is consistent with the policies set forth in the previously referenced Municipal Code and California Government Code sections. Page 141 of 668 Item 5g Public Engagement Public notification for the tentative map, environmental document, and underlying entitlements occurred with the Planning Commission hearings on June 28, 2017, June 29, 2017, July 12, 2017, and August 9, 2017 and at the City Council on August 9, 2017, and September 19, 2017. Approval of the final map is considered a ministerial action, so a public hearing to approve the final map for this Phases 2 & 3 map is not required. CONCURRENCE The Director of Public Works, the Director of Parks and Recreation, the Fire Chief, and the Natural Resources Manager concur with the recommended action. ENVIRONMENTAL REVIEW The Avila Ranch Development Plan (ARCP) and associated Final Environmental Impact Report (FEIR) were approved and certified by the City Council on September 19, 2017, pursuant to Resolution No. 10832. All mitigation measures adopted as part of the ARDP FEIR that are applicable to the project are carried forward and applied to the project to effectively mitigate the impacts that were previously identified. An Addendum to the Final EIR has been prepared pursuant to CEQA Guidelines Sections 15164 and 15162. An addendum to a previously certified EIR is appropriate when minor technical changes or additions are necessary and none of the conditions described in CEQA Guidelines Section 15162 have occurred. The Addendum addresses updated timing related to the construction of the south bicycle bridge on Buckley Road. The south bicycle bridge will be constructed in Phase 4, concurrent with the bicycle lanes and road widening on Buckley (Attachment H). The FEIR and associated Addendum constitute the complete environmental determination for the project. The final map is substantially in conformance with the tentative map evaluated with this prior environmental determination. Approval of the final map is statutorily exempt under the California Environmental Quality Act (CEQA) pursuant to Section 15268(b)(3) Ministerial Projects (approval of final subdivision maps) of Title 14 of the California Code of Regulations (State CEQA Guidelines). Therefore, no further environmental review is required. FISCAL IMPACT Budgeted: Yes Budget Year: 2024-Ongoing Funding Identified: Yes Page 142 of 668 Item 5g Fiscal Analysis: Funding Sources Total Budget Available Current Funding Request Remaining Balance Annual Ongoing Cost General Fund $0 $0 $0 $0 State Federal Fees Other: CFD Total $0 $0 $0 $0 There are no fiscal impacts directly associated with the approval of the final map for Tract 3089 Phases 2 & 3. The City will eventually incur costs upon acceptance of the improvements by the City, which will occur by separate Council action once the subdivision improvements are deemed complete. The General Fund share of costs for constructing public improvements associated with Phase 2 and 3 is approximately $58,000, which represents the City’s proportionate share of costs for the installation of a new sidewalk on S. Higuera between Los Osos Valley Road and the southern City Limit. These funds were programmed for this use in the 2019 - 21 Financial Plan and carried forward into the current Financial Plan within the Capital Improvement Program budget. All other Phase 2 & 3 infrastructure improvements eligible for reimbursement will be reimbursed in the form of transportation impact fee credits and/or reimbursement from other private development projects that benefit from these infrastructure improvements. The CFD structure is designed to be revenue neutral to the City to fund the cost of services, such as police and fire, and infrastructure maintenance. The CFD is analyzed each year and taxes are levied to cover projected costs which will increase incrementally as more of the CFD-maintained services and improvements come online. An analysis of the annual costs to provide the services and infrastructure maintenance to the Avila Ranch development, including administration, is estimated to be $1.7 million at buildout. The City began collecting Special Taxes from the developed parcels within Avila Ranch and incorporated this funding into a maintenance budget for the improvements at the development. The CFD is estimated to generate $1.7 million in annual revenue at buildout, therefore there is no net fiscal impact anticipated for the City’s budget. Costs for maintenance of the new open space and public park lots included in the Phases 2 & 3 final maps will be incorporated into the CFD services budget, which is $232,761 for FY 23-24, as well as future financial plans. The CFD at Avila Ranch was established in-lieu of a Homeowners Association, and therefore the CFD funds of approximately $200 per month per unit provides the maintenance of roads, parks, and other infrastructure within the development. This cost has previously been determined to be within the City’s financial plan policy limits for total property tax burden. Page 143 of 668 Item 5g ALTERNATIVES Deny approval of the final map. Denying approval of the final map is appropriate only if findings are made that the requirements or conditions of the tentative map have not been met or performed (Section 66473 of the Subdivision Map Act) or if findings are made that the final map is not in substantial compliance with the previously approve d tentative map (Section 66474.1 of the Subdivision Map Act). Because the final map is in substantial compliance with the tentative map and all the conditions of the map will be met or securities deposited prior to map recordation, Sections 66474.1 and 664 73 of the Subdivision Map Act require that City Council approve the map. Therefore, denying approval of the final map is not a recommended alternative unless the required findings are made. ATTACHMENTS A - Draft Resolution approving the Phases 2 & 3 Final Map B - Vicinity Map C - Tentative Map (Tract 3089) D - Phasing Plan (Tract 3089) E - Addendum to the Avila Ranch Final EIR F - Draft Phase 3 Affordable Housing Agreement G - Park Layout H - Draft Subdivision Agreement Tract 3089 Phases 2 & 3 I - Draft Final Map Tract 3089 Phases 2 & 3 Page 144 of 668 R ______ RESOLUTION NO. _____ (2024 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, APPROVING THE FINAL MAP FOR TRACT 3089 PHASES 2 & 3, AVILA RANCH, INCLUDING AN ADDENDUM TO THE FINAL ENVIRONMENTAL IMPACT REPORT MODIFYING THE TIMING OF MITIGATION MEASURE TRANS-11 AND AUTHORIZING THE MAYOR TO EXECUTE A SUBDIVISION AGREEMENT IN A FORM SUBJECT TO THE APPROVAL OF THE CITY ATTORNEY (175 VENTURE DRIVE, FMAP-0562-2022) WHEREAS, the City Council made certain findings concerning the vesting tentative map for Tract 3089, as prescribed in Resolution No. 10832 (2017 Series); and WHEREAS, the City Council entered into a Development Agreement with the Subdivider of Tract 3089 with Ordinance No. 1639 (2017 Series); and WHEREAS, the Community Development Director approved minor corrections to the tentative map as allowed by the City Municipa l Code and California Government Code; and WHEREAS, the subdivider has requested that the Council approve the final map for Tract 3089 Phases 2 & 3; and WHEREAS, there are certain lots that are offered to the City in fee for public purposes; and WHEREAS, Tract 3089 is required to preserve at least 50 acres of on -site open space and/or agricultural land and preserve at least 50 acres of offsite open space and/or agricultural land by the recordation of deed restrictions, but only a portion of that i s required to be preserved with Phases 2 & 3; and WHEREAS, the subdivider will record a Phase 3 Affordable Housing Agreement in order to implement to the goals and requirements of the Avila Ranch Development Agreement for Phase 3 of the project, as outlined in the 2017 Affordable and Workforce Housing Plan (Development Agreement Exhibit G); and WHEREAS, the subdivider will be constructing certain improvements that are eligible for fee credits per the project’s development approval documents and the City’s AB1600 fee program; and WHEREAS, the subdivider will submit appropriate securities to guarantee installation of the required subdivision improvements as shown on the approved plans prior to map recordation, and the required fees will be received prior to map recordation, as prescribed in the Subdivision Agreement, the Development Agreement, and the project approvals; and Page 145 of 668 Resolution No. _____ (2024 Series) Page 2 R ______ WHEREAS, all requirements, conditions and mitigation measures required per said Council Resolution No. 10832 (2017 Series) approving the tentative map and Ordinance No. 1639 (2017 Series) approving the Development Agreement have been completed or appropriate securities will be in place to guarantee their completion prior to Phases 2 & 3 map recordation; and WHEREAS, the Avila Ranch Development Plan and associated Final Environmental Impact Report were approved and certified by the City Council on September 19, 2017, pursuant to Resolution No. 10832 (2017 Series); and WHEREAS, an Addendum to the Final Environmental Impact Report (FEIR) has been prepared as shown in Attachment H of the staff report to address modifying the timing of the construction of a bicycle bridge over Tank Farm Creek south of Buckley Road identified in Mitigation Measure TRANS-11, and under the revised timing, the south bicycle bridge will be constructed in Phase 4, concurrent with the bicycle lanes and road widening on Buckley Road, in order to create continuous bicycle routes and to minimize construction impacts to properties on the south side of Buckley Road; and WHEREAS, approval of the final map is statutorily exempt under the California Environmental Quality Act (CEQA) pursuant to Section 15268(b)(3) Ministerial Projects (approval of final subdivision maps) of Title 14 of the California Code of Regulations (State CEQA Guidelines), therefore, no further environmental review is required for approval of the Tract 3089 Phases 2 & 3 final map. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. The final map for Tract 3089 Phases 2 & 3 is found to be in substantial conformance with the tentative map. SECTION 2. Phases 2 & 3 provide sufficient parkland and park improvements to meet City requirements based on the projected population and housing o nsite, so there are no "in-lieu" park fees required. SECTION 3. The City Clerk is authorized to accept fee offers for the open space and park lots with the signing of the Final Map. SECTION 4. The draft Phase 3 Affordable Housing Agreement, provided as Attachment I of the staff report, is in substantial conformance with the 2017 Affordable and Workforce Housing Plan which was adopted as Exhibit G of the Avila Ranch Development Agreement. Page 146 of 668 Resolution No. _____ (2024 Series) Page 3 R ______ SECTION 5. Approval of the final map for Tract 3089 Phases 2 & 3 is hereby granted with the understanding that minor changes to the final map for technical accuracy and condition compliance are still needed. The Public Works Director is authorized to approve these changes and record the map when it is deemed to be complete, and all conditions and mitigation measures are complied with. SECTION 6. The Mayor is authorized to approve revisions to the Subdivision Agreement for Tract 3089 Phases 2 & 3 and execute the agreement in a form substantially the same as shown in Attachment G of the staff report. SECTION 7. Pursuant to the FEIR Addendum provided as Attachment H of the staff report, the timing of Mitigation Measure TRANS-11 for the bicycle bridge over Tank Farm Creek south of Buckley Road is modified to coincide with the widening of Buckley Road for continuous bike lanes to the east of the new bicycle bridge in Phase 4. Said modification does not trigger one of the events in Section 15162 of the CEQA Guidelines and therefore an addendum is appropriate. SECTION 8. The Public Works Director is authorized to reduce or release securities for the public improvements once the requirements for release are met and is authorized to cause the improvements to be accepted into the City’s maintenance system. SECTION 9. The Mayor and City staff are authorized to take action necessary to carry out the intent of this resolution. Page 147 of 668 Resolution No. _____ (2024 Series) Page 4 R ______ SECTION 10. Environmental Review. The Avila Ranch Development Plan (ARDP) and associated Final Environmental Impact Report, together with the FEI R Addendum, constitute the complete environmental determination for the project and are hereby approved. All mitigation measures adopted as part of the ARDP FEIR that are applicable to the project are carried forward and applied to the project to effective ly mitigate the impacts that were previously identified. The final map is substantially in conformance with the tentative map evaluated with these prior environmental determinations. Approval of the final map is statutorily exempt under the California Environmental Quality Act (CEQA) pursuant to Section 15268(b)(3) Ministerial Projects (approval of final subdivision maps) of Title 14 of the California Code of Regulations (State CEQA Guidelines). Therefore, no further environmental review is required. Upon motion of Council Member ___________, seconded by Council Member ___________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _______________ 20 24. ___________________________ Mayor Erica A. Stewart ATTEST: ___________________________ Teresa Purrington, City Clerk APPROVED AS TO FORM: ____________________________ J. Christine Dietrick, City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ______________________. ___________________________ Teresa Purrington, City Clerk Page 148 of 668 Phase 2 Vicinity Map Tract 3089 Avila Ranch Page 149 of 668 Page 150 of 668 1050 Southwood Drive San Luis Obispo, CA 93401 P 805.544.7407 F 805.544.3863 Page 151 of 668 1050 Southwood Drive San Luis Obispo, CA 93401 P 805.544.7407 F 805.544.3863 Page 152 of 668 1050 Southwood Drive San Luis Obispo, CA 93401 P 805.544.7407 F 805.544.3863 Page 153 of 668 1050 Southwood Drive San Luis Obispo, CA 93401 P 805.544.7407 F 805.544.3863 Page 154 of 668 1050 Southwood Drive San Luis Obispo, CA 93401 P 805.544.7407 F 805.544.3863 Page 155 of 668 1050 Southwood Drive San Luis Obispo, CA 93401 P 805.544.7407 F 805.544.3863 Page 156 of 668 1050 Southwood Drive San Luis Obispo, CA 93401 P 805.544.7407 F 805.544.3863 Page 157 of 668 1050 Southwood Drive San Luis Obispo, CA 93401 P 805.544.7407 F 805.544.3863 Page 158 of 668 1050 Southwood Drive San Luis Obispo, CA 93401 P 805.544.7407 F 805.544.3863 Page 159 of 668 1050 Southwood Drive San Luis Obispo, CA 93401 P 805.544.7407 F 805.544.3863 Page 160 of 668 1050 Southwood Drive San Luis Obispo, CA 93401 P 805.544.7407 F 805.544.3863 Page 161 of 668 1050 Southwood Drive San Luis Obispo, CA 93401 P 805.544.7407 F 805.544.3863 Page 162 of 668 1050 Southwood Drive San Luis Obispo, CA 93401 P 805.544.7407 F 805.544.3863 Page 163 of 668 1050 Southwood Drive San Luis Obispo, CA 93401 P 805.544.7407 F 805.544.3863 Page 164 of 668 1050 Southwood Drive San Luis Obispo, CA 93401 P 805.544.7407 F 805.544.3863 Page 165 of 668 1050 Southwood Drive San Luis Obispo, CA 93401 P 805.544.7407 F 805.544.3863 Page 166 of 668 1050 Southwood Drive San Luis Obispo, CA 93401 P 805.544.7407 F 805.544.3863 Page 167 of 668 1050 Southwood Drive San Luis Obispo, CA 93401 P 805.544.7407 F 805.544.3863 Page 168 of 668 1050 Southwood Drive San Luis Obispo, CA 93401 P 805.544.7407 F 805.544.3863 Page 169 of 668 1050 Southwood Drive San Luis Obispo, CA 93401 P 805.544.7407 F 805.544.3863 Page 170 of 668 1050 Southwood Drive San Luis Obispo, CA 93401 P 805.544.7407 F 805.544.3863 Page 171 of 668 1050 Southwood Drive San Luis Obispo, CA 93401 P 805.544.7407 F 805.544.3863 Page 172 of 668 1050 Southwood Drive San Luis Obispo, CA 93401 P 805.544.7407 F 805.544.3863 Page 173 of 668 1050 Southwood Drive San Luis Obispo, CA 93401 P 805.544.7407 F 805.544.3863 Page 174 of 668 1050 Southwood Drive San Luis Obispo, CA 93401 P 805.544.7407 F 805.544.3863 Page 175 of 668 1050 Southwood Drive San Luis Obispo, CA 93401 P 805.544.7407 F 805.544.3863 Page 176 of 668 1050 Southwood Drive San Luis Obispo, CA 93401 P 805.544.7407 F 805.544.3863 Page 177 of 668 1050 Southwood Drive San Luis Obispo, CA 93401 P 805.544.7407 F 805.544.3863 Page 178 of 668 1050 Southwood Drive San Luis Obispo, CA 93401 P 805.544.7407 F 805.544.3863 Page 179 of 668 6RXWKZRRG'ULYH 6DQ/XLV2ELVSR&$ 3) Page 180 of 668 1050 Southwood Drive San Luis Obispo, CA 93401 P 805.544.7407 F 805.544.3863 Page 181 of 668 1050 Southwood Drive San Luis Obispo, CA 93401 P 805.544.7407 F 805.544.3863 Page 182 of 668 6RXWKZRRG'ULYH 6DQ/XLV2ELVSR&$ 3) Page 183 of 668 1050 Southwood Drive San Luis Obispo, CA 93401 P 805.544.7407 F 805.544.3863 Page 184 of 668 6RXWKZRRG'ULYH 6DQ/XLV2ELVSR&$ 3) Page 185 of 668 1050 Southwood Drive San Luis Obispo, CA 93401 P 805.544.7407 F 805.544.3863 Page 186 of 668 1050 Southwood Drive San Luis Obispo, CA 93401 P 805.544.7407 F 805.544.3863 Page 187 of 668 1050 Southwood Drive San Luis Obispo, CA 93401 P 805.544.7407 F 805.544.3863 Page 188 of 668 1050 Southwood Drive San Luis Obispo, CA 93401 P 805.544.7407 F 805.544.3863 Page 189 of 668 1050 Southwood Drive San Luis Obispo, CA 93401 P 805.544.7407 F 805.544.3863 Page 190 of 668 TRACT 3089 PHASING PLAN Page 191 of 668 Page 192 of 668 Addendum to the Final Environmental Impact Report for the Avila Ranch Development Plan December 11, 2023 1. Project Title: Avila Ranch Development Plan 2. Lead Agency Name and Address: City of San Luis Obispo 990 Palm Street San Luis Obispo, CA 93401 3. Contact Person and Phone Number: Callie Taylor, Associate Planner 805-781-7016 4. Project Location: 175 Venture Drive San Luis Obispo, CA 93401 5. Project Applicant and Representative Name and address: Avila Ranch WCP Developers, LLC Dan Garson, Director of Land Development 735 Tank Farm Rd Suite 100, San Luis Obispo, CA 93401 6. General Plan Designation: Special Focus Area SP-4. Per Avila Ranch Development Plan: Low-Density Residential, Medium-Density Residential, Medium-High Density Residential, High-Density Residential, Neighborhood Commercial, Open Space, Park 7. Zoning: Per Avila Ranch Development Plan: R-1 Low-Density Residential, R-2 Medium-Density Residential, R-3 Medium-High Density Residential, R-4 High-Density Residential, C-N Neighborhood Commercial, Conservation/Open Space C/OS, PF Public Facility, Airport Area Specific Plan Page 193 of 668 8. Description of the Project: The Avila Ranch Development Plan was approved by the San Luis Obispo City Council on September 19, 2017. Project entitlements included certification of the Final EIR, approval of the Avila Ranch Development Plan, Airport Area Specific Plan Amendment, General Plan Amendment, Vesting Tentative Tract Map, Zone Change, Development Agreement, and establishment of a Community Facilities District. The project includes 720 residential units, 15,000 square feet of neighborhood commercial, open space, and parks on a 150-acre area which is to be developed within six (6) phases of development with a phased final map. 9. Project Entitlements Requested: Previously approved by the City Council on September 19, 2017. Project implementation, Final Map recordation, permits, and construction are in process. 10. Previous Environmental Review : The Avila Ranch Development Plan (ARDP) and associated Final Environmental Impact Report (EIR) were approved and certified by the City Council on September 19, 2017, pursuant to Resolution No. 10832 (2017 Series). The significance of each impact resulting from implementation of the Project was determined based on impact significance criteria and applicable CEQA Guidelines for each impact topic. The EIR found that the Project would result in significant and unavoidable construction-related and long-term impacts to air quality, construction-related noise, and long-term transportation and traffic impacts. Mitigation measures were adopted to reduce the potential impacts where feasible, and the City Council adopted CEQA findings and a Statement of Overriding Cond itions to address the identified significant and unavoidable impacts described in the Final EIR. Buildout of the project is currently underway. The Phase 1 Final Map was recorded in December 2018, and the Phase 1 residential units are currently under construction. On - and off-site improvements have been constructed as part of Phase 1, including transportation improvements to mitigate for the increase in traffic generated by the Tract 3089 development. 11. Purpose of the Addendum: Section 15164 of the State CEQA Guidelines allows a lead agency to prepare an addendum to a Final EIR when only “minor technical changes or additions” are necessary to address the effects of a minor change to the approved project since the Final EIR was certified. In addition, the lead agency is required to explain its decision not to prepare a subsequent EIR pursuant to State CEQA Guidelines Section 15162, which requires subsequent EIRs when proposed changes would require major revisions to the previous EIR “due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects.” Page 194 of 668 Subsequent to certification of the ARDP Final EIR, additional information has been identified which affects the construction timing of a portion of Mitigation Measure TRANS- 11. This mitigation measure established an obligation for the project to install two separated bicycle bridges on each side of Buckley Road at Tank Farm Creek. Off-site property acquisition and temporary construction easements are required in order to install these improvements on the south side of Buckley Road. Property negotiations are in process between the developer and the neighboring property owner to the south. Through the negotiation process, the parties have identified the need to update the timing of the south bicycle bridge to be consistent and concurrent with the installation the bicycle lanes and road widening on Buckley Road. The purpose of this Addendum is to document the revised status of the south bicycle bridge construction timing and to confirm the change of mitigation timing would not result in any new or more severe significant environmental effects not previously analyzed in the Final EIR. The evaluation below discusses the issue areas that are relevant to this Addendum and covered by the previously approved Final EIR. The evaluation concludes that no new environmental effects are created and that there is no increase in the severity of previously identified significant effects. 12. Addendum Requirements: Pursuant to Section 21166 of CEQA and Section 15162 of the State CEQA Guidelines, when a lead agency has adopted an EIR for a project, a subsequent EIR does not need to be prepared for the project unless the lead agency determines that one or more of the following conditions are met: 1. Substantial project changes are proposed that will require major revisions of the previous EIR due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; 2. Substantial changes would occur with respect to the circumstances under which the project is undertaken that require major revisions to the previous EIR due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; or 3. New information of substantial importance that was not known and could not have been known with the exercise of reasonable diligence at the time the previous EIR was adopted shows any of the following: a. The project will have one or more significant effects not discussed in the previous EIR; or b. Significant effects previously examined will be substantially more severe than identified in the previous EIR; or Page 195 of 668 c. Mitigation measures or alternatives previously found not to be feasible would in fact be feasible, and would substantially reduce one or more significant effects of the project, but the project proponent declines to adopt the mitigation measures or alternatives; or d. Mitigation measures or alternatives that are considerably different from those analyzed in the previous EIR would substantially reduce one or more significant effects on the environment, but the project proponent declines to adopt the mitigation measures or alternatives. Preparation of an Addendum to an EIR is appropriate when none of the conditions specified in Section 15162 (above) are present and some minor technical changes to the previously certified EIR are necessary to address minor changes to an approved project. Because the new information would not result in any new or more severe significant impacts, an Addendum is the appropriate CEQA document. NEW INFORMATION AND UPDATED PROJECT ELEMENTS NEWLY DISCOVERED INFORMATION The Avila Ranch Final EIR, Mitigation Measure TRANS-11, established an obligation for the project to install two separated bicycle bridges on each side of Buckley Road at Tank Farm Creek to improve access to safe bicycle routing along Buckley Road. As originally approved, construction of these bridges was required with Phase 2 of the Avila Ranch project and was envisioned to be constructed simultaneously with the Buckley Road Extension, which was also required prior to Phase 2. Avila Ranch has since completed the Buckley Road Extension, choosing to advance this street extension with Phase 1 of the development. The design for the bicycle bridge on the south side of Buckley Road is being processed through the County of San Luis Obispo permitting review, with issuance of permits pending off-site right- of-way acquisition. The project applicant has been negotiating with the property owner on the south side of Buckley Road to obtain off -site property for right-of-way purposes. One of the primary challenges associated with the right-of-way acquisition is a concern regarding the functionality and safety of constructing the bicycle bridge with Phase 2, when the bridge would connect back to a segment of Buckley Road with no existing bike lanes east of the bridge. The Avila Ranch project is required to construct additional road widening on Buckley east of the bridge with Phase 4, which will provide 8-foot-wide shoulders/bicycle lanes further to the east. There has been a request by the property owner to the south, who owns the land on which the bicycle bridge will be constructed once right-of-way is acquired, to defer construction of this bicycle bridge until Phase 4 of the Avila Ranch development . Deferral of the bicycle bridge to Phase 4 would result in a continuous bicycle facility along this segment and limit the overall duration of construction impacts to the private property owner on the south side of the roadway. Page 196 of 668 CHANGED BASELINE CONDITIONS AND UPDATED PROJECT ELEMENTS The 2017 Final EIR identified project impacts under TRANS-11, which states that the project development would increase demand for bicycle facilities in an underserved area and would potentially conflict with the City’s Bicycle Transportation Plan regulations and General Plan thresholds. Mitigation Measure TRANS-11 was identified in order to mitigate this impact. The revised timing of construction of the south separated bicycle bridge, identified in Mitigation Measure TRANS-11, is being evaluated in this Addendum. The following mitigation measure was adopted in the 2017 Final EIR to provide continuous bicycle facilities along Buckley Road and reduce transportation related impacts to the greatest extent feasible: MM TRANS-11 The Applicant shall construct two (2) separated bicycle bridges on each side of Buckley Road at Tank Farm Creek and provide connections to Buckley Road so as to provide continuous and safe bicycle routing along Buckley Road. These sections of roadway and creek crossings are under the jurisdiction of the County and would need to meet both City and County design standards to the greatest extent feasible and are subject to approval of the City’s Public Works Director. Plan Requirements and Timing. Prior to recordation of the final VTM for Phase 2, the Applicant shall submit a Public Improvement Plan for the Buckley Road Class II bicycle lanes and the separated bicycle bridges across Tank Farm Creek. These improvements shall occur concurrently with the extension of Buckley Road to South Higuera Street during Phase 2. Monitoring. The City shall verify that the Applicant has modified the Project design to be in accordance with the BTP and the AASP. These improvements were required to address a transportation policy impact related to the City’s Bicycle Transportation Plan, which identified future plans to provide continuous bicycle facilities along Buckley Road. The timing of this mitigation measure was not developed based on any quantitative threshold of significance or number of units, but rather was developed with the general intent to provide for orderly development and infrastructure improvements as the development builds out. In addition, Mitigation Measure TRANS-11 was also proposed to partially address Air Quality Impact AQ-4, which was a significant but mitigable impact. AQ-4 states that construction and operation of the Project would result in impacts to global climate change from the emissi ons of Greenhouse Gases and would be potentially inconsistent with the City’s Climate Action Plan. Mitigation Measure TRANS-11 requires bicycle bridges to facility alternative transportation, which would in turn serve to lower GHGs. Mitigation Measure TRANS-11, including the north and south separate bicycle bridges, was originally intended to coincide with the Buckley Road Extension in Phase 2. However, the Page 197 of 668 developer completed the Buckley Road extension ahead of schedule, prior to Phase 1 of the development. Road widening and 8-foot-wide shoulders/bicycle lanes on Buckley Road are required to be installed during Phase 4 of the development, as identified in Tentative Tract Map Condition of Approval #107. Staff from the City of San Luis Obispo and the County of San Luis Obispo have met with the Avila Ranch project developer and the neighboring property to south who owns the area needed for road widening and installation of the bicycle bridge. The neighboring property owner has brought up concerns with installing the bicycle facilities in a piecemeal fashion. There are also concerns that installing the bicycle bridges near the South Higuera intersection in close proximity to the Bob Jones Trail will attract bicyclists and pedestrians for recreational use on Buckley Road; however, road widening and continuous bicycle lanes to the east of the bridge would not be installed until Phase 4. A Phase 2 bridge installation would thereby create an interim time period where bicycle facilities are sporadic and non-continuous. As a result of this newly discovered information and the change in conditions described above, the proposed timing of the construction of the south bicycle bridge is being modified to create concurrent construction timing with the rest of the bicycle route on Buckley Road during Phase 4. Both City and County Public Works staff have considered the Avila Ranch representative’s formal request to defer construction of the bicycle bridge on the south side of Buckley Road to Phase 4 of the development and concur with this request. Based on staff’s review, this modification would not result in any new or exacerbated impacts as identified in the approved project EIR and the project would retain the obligation to improve bicycle facilit ies on Buckley Road for consistency with the City’s adopted Bicycle Transportation Plan (now Active Transportation Plan). Concurrent Phase 4 installation will address the safety concerns of the non-continuous segments of bike paths. It will meet the intent of the mitigation measure to create continuous bicycle facilities on Buckley Road and implement the goals of the Active Transportation Plan. Concurrent construction in Phase 4 will also minimize construction related impacts on the property owner to south, who Avila Ranch is currently working with to acquire off- site property for the bicycle improvements. Based on the EIR analysis, the timing of the bridges had no bearing on the conclusion that the impact was significant. The impacts analyzed in TRANS-11 of the 2017 EIR will still be mitigated by the mitigation measure in its modified form with revised timing. The revised timing of the bicycle bridge installation will serve the original intention of creating continuous bicycle lanes on Buckley Road and providing alternative transportation methods upon completion of construction. Impacts identified in TRANS-11 and AQ-4 will be mitigated as originally intended by constructing the bicycle bridges concurrently with the bicycle lanes on Buckley Road. For clarity, the requirement to construct the bicycle bridge on the north side of Buckley Road will remain a condition tied to Phase 2 of the development, as originally required by Mitigation Measure TRANS-11. Construction of the north bridge facility would not require acquisition of off- Page 198 of 668 site right-of-way, and it would be located further to the north and connected to the Class 1 bicycle facilities within Avila Ranch. MINOR TECHNICAL CHANGES TO THE FINAL EIR The project timing revisions noted above would result in minor changes to the approved project and Final EIR and are therefore evaluated in this Addendum, below. Transportation. The Final EIR determined that impacts to Transportation under TRANS-11 are significant but mitigable. Implementation of several required mitigation measures would reduce Transportation impacts to the greatest extent feasible. Mitigation Measure TRANS-11 requires the installation of separated bicycle facilities on both the north and south side of Buckley Road in order to create continuous bicycle routes on Buckley Road along the project frontage. The improvements will be designed and installed as originally required, however, the timing will be modified to be tied to other adjacent bicycle facility improvements in the area. The north bridge over Tank Farm Creek, which is connected to the Class 1 path within Avila Ranch, will be installed during Phase 2, as required by the original mitigation measure. The south bridge ov er Tank Farm Creek will be installed in Phase 4, concurrent with Buckley Road widening and installation of bicycle lanes on Buckley Road, thereby creating continuous bicycle routes on Buckley Road as was intended by the original mitigation measure. Therefore, no new or more severe impacts would occur beyond what was previously analyzed in the Final EIR. Mitigation Measure TRANS-11 as updated would be consistent with the City of San Luis Obispo’s Active Transportation Plan. With implementation of Mitigation Measure TRANS-11, the project would continue to reduce impacts identified under TRANS-11 and AQ-4 to the greatest extent feasible. Implementation of revised timing of a portion of Mitigation Measure TRANS-11 would not change the environmental determination of the identified impacts or other resource sections in the Final EIR. Therefore, no new or more severe impacts would occur beyond what was previously analyzed in the Final EIR. DETERMINATION In accordance with Section 15164 of the State CEQA Guidelines, the City of San Luis Obispo has determined that this Addendum to the certified Final EIR is necessary to document changes or additions that have occurred since the Final EIR was originally certified. The changes proposed are relatively minor in nature and, as documented above, would not result in any new significant environmental effects or a substantial increase in the severity of previously identified significant effects. Additionally, no new information of substantial importance that was not known and could not have been known with the exercise of reasonable diligence at the time the previous Final EIR was adopted has been identified. The preparation of a subsequent environmental document is not necessary because: 1. None of the circumstances included in Section 15162 of the CEQA Guidelines have occurred which require a subsequent environmental document: Page 199 of 668 a. The project changes do not result in new or substantially more severe environmental impacts. b. The circumstances under which the project is undertaken will not require major changes to the IS/MND. c. The modified project does not require any substantive changes to previously approved mitigation measures. 2. The changes are consistent with City General Plan goals and polices that promote provision of additional housing within the City. The City has reviewed and considered the information contained in this Addendum and finds that the preparation of subsequent CEQA analysis that would require public circula tion is not necessary. This Addendum does not require circulation because it does not provide significant new information that changes the adopted Final EIR in a way that deprives the public of a meaningful opportunity to comment upon a substantial adverse environmental effect of the project or a feasible way to mitigate or avoid such an effect. The City shall consider this Addendum with the certified Final EIR as part of the basis for potential approval of on- and off- site subdivision improvements for the Avila Ranch Project. Page 200 of 668 1076\80\3661235.1 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of San Luis Obispo Community Development Department 919 Palm Street San Luis Obispo, CA 93401-3249 Attn: Community Development Director No fee for recording pursuant to (Space above for Recorder's Use) Government Code Section 27383 AVILA RANCH PHASE 3 AFFORDABLE HOUSING AGREEMENT AND DECLARATION OF RESTRICTIVE COVENANTS (For-Sale Moderate-Income Units, WHIP Units, and R-4 For-Rent Affordable Units) This AVILA RANCH PHASE 3 AFFORDABLE HOUSING AGREEMENT AND DECLARATION OF RESTRICTIVE COVENANTS (“Agreement”) is made and entered into on _________________, by and among the City of San Luis Obispo, a California charter city and municipal corporation (the “City”), Avila Ranch Developers, Inc., a California corporation (“ARD”) and FG2 Holdings, LLC, a California limited liability company; Avila Ranch EA, LLC, a California limited liability company; and, CJ Holdings, LP, a California limited partnership (collectively Adjoining Landowners”), and Avila Ranch LP, a California limited partnership (the “Affordable Housing Provider”). The City, ARD, Adjoining Landowners and Affordable Housing Provider are sometimes referred to herein collectively as the “Parties” and individually as a “Party”. RECITALS A. On September 19, 2017, the City Council of the City of San Luis Obispo (“City Council”) adopted Resolution No. 10832 approving the Development Plan and Vesting Tentative Tract Map 3089 (“Vesting Tentative Tract Map”) relating to the Avila Ranch Development Plan consisting of 720 residential units across Phases 1 through 6 (the “Project”). B. On October 3, 2017, the City Council adopted Ordinance No. 1639 approving that certain Development Agreement dated November 2, 2017, and later, on April 2, 2019, adopted Ordinance No. 1662 to amend said agreement (the “Development Agreement”). The Development Agreement sets forth certain terms and conditions regarding the development of Project. C. The Vesting Tentative Tract Map and Development Agreement, collectively, constitute the “Avila Ranch Project Approvals.” D. Pursuant to the Development Agreement, the City, ARD and the Adjoining Landowners agree that the affordable housing requirements for the Project will be satisfied by Page 201 of 668 Phase 3 of Avila Ranch, Affordable Housing Agreement 2 1076\80\3661235.1 providing 24 rental units to Lower-Income Households, 8 two-bedroom/1-bath “rental” units to Low-Income Households, 35 Moderate-Income Units including (27) “for-sale” (“Moderate- Income For-Sale Units”) and (8) two-bedroom/1-bath “rental” units (“Moderate-Income For- Rent Units”), and 25 for-sale Workforce Housing Incentive Program units (“WHIP Units”) in the Project. E. The Development Agreement requires the developer of Avila Ranch, currently Avila Ranch Developers, Inc., (“ARD”), to dedicate Vesting Tentative Tract Map Lot 300 to an affordable housing provider, for the purpose of constructing and managing twenty-four (24) lower- income rental units (the “R-4 Affordable Component”). In addition, the Development Agreement requires ARD to construct and manage eight (8) two-bedroom/1-bath low-income rental units and eight (8) two-bedroom/1-bath moderate-income rental units (“ARD’s R-4 Affordable Units”) in conjunction with ARD’s 85 market rate R-4 units (“ARD’s R-4 Market Units”) on Vesting Tentative Tract Map Lot No. 301 (now Lot 327 Phase 2&3 Final Map) (“R-4 Market Rate Property”). F. On December 1, 2022, ARD dedicated Lot 186 commonly referred to as 165 Cessna Court, San Luis Obispo, CA, more particularly described in attached Exhibit A incorporated herein by this reference (the “R-4 Affordable Property”) to Avila Ranch, LP to construct and manage the R-4 Affordable Housing Component. G. ARD requested and the City has agreed that ARD’s R-4 Affordable Units can and should be constructed and managed by the Affordable Housing Provider on the R-4 Affordable Property, in addition to the R-4 Affordable Component, finding that with a density bonus on the R-4 Affordable Property to provide an additional 19 moderate-income units (“Density Bonus Units”), the transfer of the ARD’s R-4 Affordable Units to the R-4 Affordable Property is consistent with the intent of the Avila Ranch Project Approvals and making the development of the R-4 Affordable Property as affordable housing project more feasible. H. Density Bonus Law requires the City to ensure continued affordability of the units that qualify an applicant for the density bonus. To satisfy ARD’s Phase 1 and Phase 3 low and moderate rental inclusionary housing requirements established by the Development Agreement and to satisfy the requirements of Density Bonus Law, the Parties have agreed that the Affordable Housing Provider will be required by separate agreement to rent the R-4 Affordable Component, Density Bonus Units and ARD’s R-4 Affordable Units subject to certain affordability restrictions and as generally outlined in these Recitals (“R-4 Affordable Housing Agreement”). I. ARD is currently under option to purchase the real property that encompasses Phases 2 & 3 Tract Map 3089. J. ARD and Adjoining Landowners are processing a final map known as “Tract Map No. 3089 Phase 2 & 3” which includes phase 3 of the Project (“Phase 3”). K. Adjoining Landowners are the owners of that certain real property identified herein as the “Moderate Income For-Sale Units” and “WHIP Units” more particularly described in Exhibit A, attached hereto, and incorporated herein and are sometimes collectively referred to herein individually as the “Moderate-Income Lots” and the “WHIP Lots” and collectively as the Page 202 of 668 Phase 3 of Avila Ranch, Affordable Housing Agreement 3 1076\80\3661235.1 “Affordable Lots.” The specific locations of the Affordable Lots are more particularly depicted in Exhibit B, attached hereto, and incorporated herein. L. Consistent with the affordable housing requirements found in the Development Agreement, the City and ARD have agreed that in conjunction with Phase 3, ARD will construct and sell, three (3) Moderate-Income Units to Moderate Income Households, in conformance with the sales prices and income limits set forth in the City's “Below Market Rate Housing Standards” published by the City's Community Development Department to implement the Inclusionary Housing Ordinance pursuant to Title 17 of the City’s Municipal Code Chapter 17.138 at the time of sale of each unit. Additionally, the Parties have further agreed that Phase 3 will include ARD’s construction and sale of five (5) WHIP Units to be sold to Workforce Income Households, in conformance with the sales prices and income limits set forth in Article 4 of this Agreement. M. The Development Agreement and the Below Market Rate Housing Standards require the Moderate-Income Units first be sold to, and occupied by, buyers from Moderate Income Households (as defined in this Agreement), and the Development Agreement requires the WHIP Units first be sold to, and occupied by, buyers from Workforce Income Households (as defined in this Agreement). N. Pursuant to the Inclusionary Housing Ordinance, there are different approaches to maintaining long-term affordability of required affordable units, including the property owner agreeing to participate in a Shared Equity Purchase Program (defined below in Section 1.1(aa)). O. ARD and Adjoining Landowners are electing to proceed under the Shared Equity Purchase Program with respect to the Moderate-Income Units constructed and sold on the Affordable Lots pursuant to this Agreement. AGREEMENT NOW, THEREFORE, the Parties agree and acknowledge that the foregoing Recitals are true and accurate, and are incorporated into this Agreement by this reference, and the Parties mutually acknowledge and agree as follows: ARTICLE 1. DEFINITIONS AND EXHIBITS Section 1.1. Definitions. In addition to terms defined in the Recitals and elsewhere in this Agreement, for purposes of this Agreement, the following terms have the following meanings: (a) “Administrator” means Below Market Rate Program Administrator, whose tasks are described in Section 7.3, which may either be the City itself or a third-party administrator engaged by and acting as an agent for the City in connection with management of the City's Below Market Rate program pursuant to an Agreement entered into between the City and the Administrator, as such Agreement may be amended or replaced from time to time. (b) “Affordable Sales Price” means (i) the maximum allowable sales price for a Moderate-Income For-Sale Unit in effect at the time of its sale to an Eligible Household, which Page 203 of 668 Phase 3 of Avila Ranch, Affordable Housing Agreement 4 1076\80\3661235.1 is to be calculated in accordance with the formula provided in the Below Market Rate Housing Standards for Moderate Income Households, and (ii) with respect to WHIP Units, such price as is calculated in accordance with the terms set forth in Article 4. (c) “Affordable Units” means collectively the Moderate-Income For-Sale Units and the WHIP Units to be constructed in Phase 3, which are required by this Agreement to be sold to Eligible Households at an Affordable Sales Price. (d) “Area Median Income” shall mean the median gross yearly income adjusted for assumed Household Size, in San Luis Obispo County, California, as published and periodically updated by the State Department of Housing and Community Development (HCD), or in the event that such income determinations are no longer published or are not updated for a period of at least eighteen (18) months, the median gross yearly income adjusted for assumed Household Size, in San Luis Obispo County, California as published and periodically updated by the Department of Housing and Urban Development (HUD). (e) “ARD’s R-4 Market Units” is described in Recital E. (f) “BMR Underwriter” whose tasks are described in Section 7.4, means Peoples Self Help Housing Corporation, or other similar entity engaged by ARD with the consent of City. (g) “Director” means the Community Development Director of the City or successor position. (h) “Down Payment Assistance Program” is described in Section 4.1.3. (i) “Eligible Household” means a household which has been determined by the BMR Underwriter to be a Moderate-Income Household eligible to purchase a Moderate- Income Unit in compliance with Article 3 of this Agreement, and for the purposes of the WHIP Units, a Workforce Income Household eligible to purchase a WHIP Unit in accordance with the terms detailed in Article 4 of this Agreement. (j) “Eligibility Screening” is defined as the process of determining eligibility in accordance with the City’s Below Market Rate Housing Standards and Below Market Rate Purchase Guidelines. (k) “Homebuyer/City Deed of Trust” means the Purchase Money Deed of Trust, Deed of Trust Covenants, Assignment of Rents, Security Agreement and Fixture Filing in substantially the form provided in Exhibit D executed by each Initial Eligible Household that secures the Initial Eligible Household’s performance under the Homebuyer/City Note. (l) “Homebuyer/City Note” means the Occupancy, Resale, and Refinancing Restriction Agreement, with Option to Purchase and Promissory Note Secured by Deed of Trust, in substantially the form provided in Exhibit C and executed by each Initial Eligible Household. (m) “Household Income” means the combined gross, pre-tax income of all adult occupants of the applicant household. Page 204 of 668 Phase 3 of Avila Ranch, Affordable Housing Agreement 5 1076\80\3661235.1 (n) “Household Size” shall mean the actual number of persons residing within the applicable household. (o) “Income Certification” means an initial Eligible Household income certification/certificate of resident eligibility, and includes all sources used in verifying income and assets (including, but not limited to, third party verification, checking and savings accounts, pay stubs, verification of assets). (p) “Initial Eligible Household” means the initial purchaser of an Affordable Unit. (q) “Low Income Household” is defined in the City of San Luis Obispo's Below Market Rate Housing Standards and means a household with a Household Income that equals or exceeds fifty percent (50%) and does not exceed eighty percent (80%) of the Area Median Income. (r) “Lower-Income Household” is defined in the City of San Luis Obispo's Below Market Rate Housing Standards and means a household with a Household Income that equals or exceeds zero percent (0%) and does not exceed eighty percent (80%) of the Area Median Income. (s) “Marketing” or “Market” is defined as a service in which the Owner, with respect to new Affordable Units, or the Administrator, with respect to existing Affordable Units will advertise the availability of such Affordable Units. Marketing may utilize social media and in-person outreach as well as the listing of the unit on Multiple Listing Services (MLS) and the Administrator’s website. (t) “Moderate Income Household” is defined in the City of San Luis Obispo's Below Market Rate Housing Standards and means a household with a Household Income that equals or exceeds eighty percent (80%) and does not exceed one-hundred and twenty percent (120%) of the Area Median Income. (u) “Moderate-Income For-Rent Unit” means those deed restricted units described in Article 5 which are constructed and rented to Moderate Income Households. (v) “Moderate-Income For-Sale Unit” means those deed restricted units described in Article 3 which are constructed and sold to Moderate Income Buyers. (w) “Moderate-Income Unit Affordability Period” means, subject to the Shared Equity Program, a period of forty-five (45) years from the date of sale to the Initial Eligible Household. (x) “Multiple Listing Services (MLS)” is a database established by cooperating real estate brokers to provide data about properties for sale. An MLS allows brokers to see one another's listings of properties for sale with the goal of connecting Homebuyers to sellers. Page 205 of 668 Phase 3 of Avila Ranch, Affordable Housing Agreement 6 1076\80\3661235.1 (y) “Opportunity Drawing” is defined as the process in which interested households are put into an interest list for a specific Affordable Unit that is being marketed. This list is ordered based on the preferences set by the Development Agreement and the City’s Below Market Rate Housing Purchase Guidelines. (z) “Owner” means ARD and/or Adjoining Landowners, as their respective interests may exist. Whenever the term “Owner” is used in this Agreement, such term shall include any other successors and assigns as herein provided. (aa) "R-4 Affordable Housing Project" is defined as the development consisting of the R-4 Affordable Component, together with ARD's R-4 Affordable Units and the Density Bonus Units on the R-4 Affordable Property, consisting of fifty-nine (59) Affordable Units and one manager’s unit. (bb) R-4 Market Rate Property” is described in Recital E. (cc) “Shared Equity Agreement” means the Shared Equity Agreement and Lien, in substantially the form provided in Exhibit C, executed by ARD with respect to each Moderate-Income Unit that secures the performance of ARD and an Initial Eligible Household under the Shared Equity Share Purchase Program provisions stated in Inclusionary Housing Ordinance Section 17.138.100. (dd) “Shared Equity Purchase Program” means City’s Shared Equity Purchase Program pursuant to Section 17.138.100 of Inclusionary Housing Ordinance. (ee) “Transfer” is defined in Section 7.10. (ff) “WHIP Unit Affordability Period” means the period described below in Section 4.1.2. (gg) “Workforce Housing Incentive Program Unit” or “WHIP Unit” means those deed restricted units provided to families in the Workforce Income Household. (hh) “Workforce Income Household” is defined in Article 4 and means a household with a Household Income that equals or exceeds one-hundred and twenty percent (120%) but does not exceed one-hundred and sixty percent (160%) of the Area Median Income. Section 1.2 Exhibits. The following exhibits are attached to this Agreement and incorporated herein by this reference (Exhibits C through H, are provide as templates and may be amended to reflect consistency with the Development Agreement): Exhibit A Legal Description of the Property Exhibit B Map Showing Location of Affordable Units and the R-4 Affordable Housing Project Exhibit C Form of Shared Equity Agreement Exhibit D Form of Homebuyer/City Note Page 206 of 668 Phase 3 of Avila Ranch, Affordable Housing Agreement 7 1076\80\3661235.1 Exhibit E Form of Homebuyer/City Deed of Trust Exhibit F Down Payment Assistance (DPA) Guidelines Exhibit G Form of WHIP Homebuyer/City Note Exhibit H Form of WHIP Homebuyer/City Deed of Trust ARTICLE 2. CONSTRUCTION OF PROJECT AND AFFORDABLE UNITS Section 2.1. Construction of Affordable Units. ARD and City have agreed that in Phase 3, ARD will construct and sell on the Moderate-Income Lots, the Moderate-Income Units, consisting of one (1) home with two bedrooms/one bath and two (2) homes with three bedrooms/two baths in the approximate location shown and described on Exhibit B in conformance with the provisions of Article 3 herein. Further, ARD and City have agreed that in Phase 3, ARD will construct and sell on the WHIP Lots, the WHIP Units, consisting of two (2) homes with two bedrooms/one bath and three (3) homes with three bedrooms/two baths in the approximate location shown and described on Exhibit B in conformance with the provisions of Article 4 herein. Section 2.2. Construction of R-4 Affordable Housing Project. The Parties have agreed that the Affordable Housing Provider will construct the R-4 Affordable Housing Project, consisting of thirty-two (32) rental units to Lower-Income Households (including, without limitation, eight (8) two-bedroom/1-bath rental units to Low-Income Households), twenty-seven (27) rental units to Moderate-Income Households (including, without limitation, eight (8) two- bedroom/1-bath rental units to Moderate-Income Households), and one (1) manager’s unit, for a total of sixty (60) rental units, in the approximate location shown and described on Exhibit B in conformance with the provisions of Article 5 herein. Section 2.3. Construction Timing. The Affordable Units will be constructed together with the construction of adjacent units in the Project and will be shown on all planning applications and may be identified on construction documents prior to building permit issuance. No certificates of occupancy or final inspections will be issued for any units in the Project unless the Affordable Units are constructed concurrently with the closest geographic proximity market rate units. Section 2.4. Design and Appearance of Affordable Units. The design, bedroom count, appearance, and general quality of the Affordable Units will be of the same character as the Project as a whole. If, after recordation of this Agreement, the Owner propose to change the bedroom size or affordability level of any Affordable Unit within the Project, the Owner shall submit a written request for such change to the Director, who shall have sole discretion to approve or deny such request (amendments shall comply with Section 6.16 of this Agreement). Homeowners of the Affordable Units shall have equal access to and enjoyment of all common facilities of the Project. Section 2.5. Use of Affordable Units. The Affordable Units will be sold only to Initial Eligible Households to be occupied in accordance with the relevant Exhibits applicable to such Affordable Units, and City’s Inclusionary Housing Ordinance. Page 207 of 668 Phase 3 of Avila Ranch, Affordable Housing Agreement 8 1076\80\3661235.1 ARTICLE 3. SALE OF MODERATE-INCOME UNITS The provisions of this Article 3 will apply to the Moderate-Income Lots described in Exhibit “B”: Section 3.1. Sale of Moderate-Income Units by ARD to Eligible Households. (a) ARD will sell the three (3) Moderate-Income Units to Initial Eligible Households at an Affordable Sales Price as determined by the City’s Below Market Rate Housing Standards and the Development Agreement, respectively. The Affordable Sales Price will be the absolute maximum price that ARD or any other seller may receive as compensation for the sale of a Moderate-Income Unit to an Initial Eligible Household. (b) ARD will actively market the Moderate-Income Units, openly and in the same general manner as the Project as a whole, allow prospective buyers to view the Moderate- Income Units, model units or floor plans, disclosure documents, and any other relevant sales materials, as may be available. ARD's sales agents will provide the same general quality of customer service to the Moderate-Income Units buyers as provided to market-rate buyers, will display information about the availability of the Moderate-Income Units in a readily noticeable manner in the sales office and/or Project sales website, will disclose the restrictions associated with each unit type to any prospective buyers in a timely manner and request that potential purchasers submit eligibility applications to determine if they qualify as Eligible Households. Marketing and sale of the Moderate-Income Units will be subject to the “SLO Workers First” local preference program set forth in “Exhibit G” to the Development Agreement. (c) Prior to ARD entering into a contract with an Initial Eligible Household to purchase an Affordable Unit, the Initial Eligible Household shall be certified as an Eligible Household by the BMR Underwriter. The Owner shall not self-select buyers nor conduct initial eligibility screenings. (d) ARD agrees to work with the Administrator, as reasonably necessary, but at no additional cost to ARD (excluding reasonable time and resources), for the effective management of the City’s Below Market Rate program as it relates to the Below Market Rate Units contemplated in this Agreement. (e) Once certified, Eligible Households will submit any purchase offers directly to ARD, and ARD will accept offers to purchase in the order received, provided that such offers include a letter from the BMR Underwriter, that the buyer is an Eligible Household, a valid check for the required good faith deposit, and a preliminary first mortgage loan approval. ARD will conduct any additional screening of applicants deemed necessary and not in violation of fair housing laws. (f) Selected Eligible Households will be responsible for obtaining their own financing for their purchase of a Moderate-Income Unit. Page 208 of 668 Phase 3 of Avila Ranch, Affordable Housing Agreement 9 1076\80\3661235.1 (g) Selected Eligible Households will enter into a Shared Equity Agreement in substantially the form attached hereto as Exhibit C, whereby the agreement is recorded on title against the Moderate-Income Unit, securing and stating City’s Equity Share in the subject unit, and requiring compliance with City’s Shared Equity Purchase Program. (h) Purchase contracts between ARD and Eligible Households will include requirements that each buyer execute the documents for the benefit of the City as described in Section 3.3 below. (i) The escrow instructions for the sale of an Moderate-Income Unit will stipulate that the Homebuyer/City Note, Homebuyer/City Deed of Trust, and the Shared Equity Agreement, will be recorded against the Unit at close of escrow on the sale to the Eligible Household; and that the Homebuyer/City Note, Homebuyer/City Deed of Trust and the Shared Equity Agreement, will be recorded junior only to the lien of the deed of trust securing the Eligible Household's first purchase money mortgage loan, or to a second mortgage loan only if such loan is provided by a public agency which requires such subordination, or as otherwise approved in writing by the City. (j) A Request for Notice of Default and Sale for the benefit of the City will be recorded for each deed of trust recorded at close of escrow. (k) Within five (5) days following the sale of any Moderate-Income Unit by ARD to an Initial Eligible Household, ARD will forward, or will cause escrow officer to forward to the City, copies of the buyer's and seller's settlement statement and all closing documents, including the Homebuyer/City Note, the Homebuyer/City Deed of Trust, and the Shared Equity Agreement executed in connection with the sale. (l) If ARD has not received any purchase offer from an Eligible Household for a Moderate-Income Unit within one hundred eighty (180) days after such unit has been offered for sale, ARD shall provide a one hundred eighty (180) days' notice to the City and shall satisfy any further conditions that may be reasonably required by the City, including but not limited to, further efforts to find an Eligible Household and/or additional marketing by ARD to attract an offer to purchase from an Eligible Household. If escrow has not closed on the Moderate-Income Unit sale within an additional sixty (60) days from date of ARD's acceptance of such an offer under this sub- section, if the City consents in writing, ARD may sell the Moderate-Income Unit at its fair market value and pay to the City an amount equal to the difference between the actual contract sales price and the Affordable Sales Price. As an alternative, if the parties mutually agree, ARD may sell the Moderate-Income Unit to the City or the City's designee for the Affordable Sales Price to satisfy ARD's obligations under this Agreement with respect to such Affordable Unit. Section 3.2. Moderate-Income For-Sale Unit Affordability Period. Subject to the Shared Equity provisions contained below in Section 3.3, the Moderate-Income Units shall be occupied by a Moderate-Income Household for a minimum of forty-five (45) years. If the owner of a Moderate-Income Unit sells that Unit within the initial 45 years, the Unit shall be sold to another Moderate-Income Income Household and subject to a new 45-year deed restriction. After the initial sale of a Moderate-Income Unit, the deed restriction and occupancy of Moderate-Income Page 209 of 668 Phase 3 of Avila Ranch, Affordable Housing Agreement 10 1076\80\3661235.1 Units will be monitored, controlled, and enforced by the City. Section 3.3. Shared Equity Homebuyer Documents and Security Instruments. Prior to the sale of each Moderate-Income Unit, ARD will ensure that: (a) The Initial Eligible Household signs a Shared Equity Agreement in substantially the form shown as Exhibit C. (b) The Initial Eligible Household and the City execute a Homebuyer/City Note in substantially the form shown as Exhibit D. (c) The Initial Eligible Household signs a Homebuyer/City Deed of Trust in substantially the form shown as Exhibit E. ARTICLE 4 SALE OF WHIP UNITS The provisions of this Article 4 will apply to the WHIP Lots described in Exhibit “B”: Section 4.1 Workforce Housing Incentive Program (WHIP). (a) In Phase 3, ARD agrees to construct and sell five (5) WHIP Units to families in the Workforce Income Households at prices limited to no more than that required to achieve an Index of Affordability (“Index”) of 31% (cost of housing including mortgage principal, mortgage interest, taxes and insurance divided b y 140% of the Area Median Income). The maximum purchase price would be equal to 5.65 times (140% of 4.05 multiplier) the median income for each household size. Marketing and sale of the WHIP Units will be subject to the “SLO Workers First” local preference program set forth in “Exhibit G” to the Development Agreement. The Affordable Sales Price shall be the absolute maximum price that ARD or any other seller may receive as compensation for the sale of a WHIP Unit to an Initial Eligible Household. (b) ARD will actively market the WHIP Units, openly and in the same general manner as the Project as a whole, allow prospective buyers to view the WHIP Units, model units or floor plans, disclosure documents, and any other relevant sales materials, as may be available. ARD's sales agents will provide the same general quality of customer service to the WHIP Units buyers as provided to market-rate buyers, will display information about the availability of the WHIP Units in a readily noticeable manner in the sales office and/or Project sales website, will disclose the restrictions associated with each unit type to any prospective buyers in a timely manner and request that potential purchasers submit eligibility applications to determine if they qualify as Eligible Households. Marketing and sale of the WHIP Units will be subject to the “SLO Workers First” local preference program set forth in “Exhibit G” to the Development Agreement. (c) Prior to entering ARD into a contract with an Initial Eligible Household to purchase an Affordable Unit, the Initial Eligible Household shall be certified as an Eligible Household by the BMR Underwriter. The Owner shall not self-select buyers nor conduct initial eligibility screenings. Page 210 of 668 Phase 3 of Avila Ranch, Affordable Housing Agreement 11 1076\80\3661235.1 (d) ARD agrees to work with the Administrator, as reasonably necessary, but at no additional cost to ARD (excluding reasonable time and resources), for the effective management of the City’s Below Market Rate program as it relates to the Below Market Rate Units contemplated in this Agreement. (e) Once certified, Eligible Households will submit any purchase offers directly to ARD, and ARD will accept offers to purchase in the order received, provided that such offers include a letter from the BMR Underwriter, that the buyer is an Eligible Household, a valid check for the required good faith deposit, and a preliminary first mortgage loan approval. ARD will conduct any additional screening of applicants deemed necessary and not in violation of fair housing laws. (f) Selected Eligible Households will be responsible for obtaining their own financing for their purchase of a WHIP Unit. (g) Selected Eligible Households will enter into a WHIP Homebuyer/Deed of Trust in substantially the form attached hereto as Exhibit H, whereby the Deed of Trust is recorded on title against the WHIP Unit, securing and stating Down Payment Assistance for the subject unit (if applicable), in compliance with City’s Down Payment Assistance Guidelines, Exhibit F. (h) Purchase contracts between ARD and Eligible Households will include requirements that each buyer execute the documents for the benefit of the City as described in Section 4.4 below. (i) The escrow instructions for the sale of a WHIP Unit will stipulate that the WHIP Homebuyer/City Note, and WHIP Homebuyer/City Deed of Trust will be recorded against the Unit at close of escrow on the sale to the Eligible Household; and that the WHIP Homebuyer/City Note and WHIP Homebuyer/City Deed of Trust will be recorded junior only to the lien of the deed of trust securing the Eligible Household's first purchase money mortgage loan, or to a second mortgage loan only if such loan is provided by a public agency which requires such subordination, or as otherwise approved in writing by the City. (j) A Request for Notice of Default and Sale for the benefit of the City will be recorded for each deed of trust recorded at close of escrow. (k) Within five (5) days following the sale of any WHIP Unit by ARD to an Initial Eligible Household, ARD will forward, or will cause escrow officer to forward to the City, copies of the buyer's and seller's settlement statement and all closing documents, including the WHIP Homebuyer/City Note and the WHIP Homebuyer/City Deed of Trust executed in connection with the sale. (l) If ARD has not received any purchase offer from an Eligible Household for a WHIP Unit within one hundred eighty (180) days after such unit has been offered for sale, ARD shall provide a one hundred eighty (180) days' notice to the City and shall satisfy any further conditions that may be reasonably required by the City, including but not limited to, further efforts to find an Eligible Household and/or additional marketing by ARD to attract an offer to purchase from an Eligible Household. If escrow has not closed on the WHIP Unit sale within an additional sixty (60) days from date of ARD's acceptance of such an offer under Page 211 of 668 Phase 3 of Avila Ranch, Affordable Housing Agreement 12 1076\80\3661235.1 this sub-section, if the City consents in writing, ARD may sell the WHIP Unit at its fair market value and pay to the City an amount equal to the difference between the actual contract sales price and the Affordable Sales Price. As an alternative, if the parties mutually agree, ARD may sell the WHIP Unit to the City or the City's designee for the Affordable Sales Price to satisfy ARD's obligations under this Agreement with respect to such Affordable Unit. Section 4.2. WHIP Unit Affordability Period. The WHIP Units must be occupied by a Workforce Income Household for a minimum of ten (10) years. If the owner of a WHIP Unit sells that Unit within the initial 10 years, the Unit must be sold to another Workforce Income Household and subject to a new 10-year deed restriction. After the initial sale of a WHIP Unit, the deed restriction and occupancy of WHIP Units will be monitored, controlled, and enforced by the City. Section 4.3. Down Payment Assistance. Prior to the initial Closing of each WHIP Unit, ARD agrees to contribute a sum equal to five (5%) percent of the purchase price of the Workforce home, not to exceed $20,000 to the City’s Down Payment Assistance Program Fund (“DPA Funds”). The parties agree that once paid, this contribution by ARD constitutes compliance with ARD’s down payment assistance obligations under Exhibit G of the Development Agreement. ARD may alternatively make a lump-sum contribution to City for all covered WHIP Units to satisfy ARD’s down payment assistance obligations under Exhibit G of the Development Agreement. The City agrees to utilize said DPA Funds to assist the buyer of such WHIP unit with the purchase of that WHIP unit, including but not limited to, contributing said funds to buyer’s down payment as a loan consistent with the City's DPA program. ARD acknowledges that the DPA Funds will be subject to an interest-bearing promissory note, secured by a deed of trust in favor of the City and when said DPA Funds are recouped by the City, in keeping with the terms of the Development Agreement, City will utilize these recouped DPA Funds to assist any income qualifying household who purchases a home in Avila Ranch. Notwithstanding the foregoing, City may utilize said recouped DPA Funds in City’s discretion in conjunction with affordable housing assistance throughout the City of San Luis Obispo. Section 4.4. Homebuyer Documents and Security Instruments. Prior to the sale of each WHIP Unit, ARD will ensure that: (a) The Initial Eligible Household and the City execute a WHIP Homebuyer/City Note in substantially the form shown as Exhibit G. (b) The Initial Eligible Household signs a WHIP Homebuyer/City Deed of Trust in substantially the form shown as Exhibit H. ARTICLE 5. CONSTRUCTION OF R-4 FOR-RENT AFFORDABLE UNITS The provision of this Article 5 shall apply to the R-4 Affordable Property: Section 5.1. Requirement of Development Agreement. Pursuant to the requirements in Exhibit G to the Development Agreement, on December 1, 2022, ARD dedicated the R-4 Page 212 of 668 Phase 3 of Avila Ranch, Affordable Housing Agreement 13 1076\80\3661235.1 Affordable Property to Affordable Housing Provider, to construct and manage the R-4 Affordable Housing Component. Affordable Housing Provider, in turn, plans to construct the R-4 Affordable Housing Project. Subject to an allocation of low-income housing tax credits and tax credit syndication Affordable Housing Provider shall construct the R-4 Affordable Housing Project on the R-4 Affordable Property, and the Affordable Housing Provider shall enter into the R-4 Affordable Housing Agreement, restricting the R-4 Affordable Property for a period of time consistent with the applicable provisions of Government Code Sections 65915 through 65918, inclusive. Section 5.2. Affordable Housing Rental Site. Affordable Housing Agreement and Declaration of Restrictive Covenants (Document No. 2021083395) for Phase 1 of Avila Ranch identified Lot 188 as the Land Dedication for an affordable housing provider to construct 24 Lower-Income Units. The City, the Adjoining Landowners, and ARD agree to change the Land Dedication from Lot 188 to the R-4 Affordable Property, to accommodate a larger affordable housing project that will consist of at least 59 affordable housing units. The Phase 1 Affordable Housing Agreement will be amended by separate document to accurately reflect the foregoing change. In addition to the 24 Lower-Income Units that are required to be constructed by ARD, the City and ARD agree to transfer the eight (8) Low-Income 2-bedroom/1-bath units and eight (8) Moderate Income 2-bedroom/1-bath units from ARD’s market rate apartment development to the R-4 Affordable Property in recognition of the Affordable Housing Provider’s commitment to develop and construct the R-4 Affordable Housing Project. Section 5.3. Restrictive Covenant. To ensure ARD’s and Adjoining Landowners’ obligation to provide the R-4 Affordable Component and ARD’s R-4 Affordable Units, and to ensure the Affordable Housing Provider completes construction of the R-4 Affordable Housing Project, the Parties agree this Agreement shall act as a restrictive covenant burdening the R-4 Affordable Housing Property with the conditions of this Article 5.Once the City and the Affordable Housing Provider reach agreement on the terms of the R-4 Affordable Housing Agreement and such agreement is recorded against the R-4 Affordable Property, the terms of the R-4 Affordable Housing Agreement will supersede this Agreement and in the event of conflict or inconsistency, the terms of the R-4 Affordable Housing Agreement will prevail over this Agreement with respect to the R-4 Affordable Property and the R-4 Affordable Housing Project. The City, ARD and Adjoining Landowners agree to reasonably cooperate with Affordable Housing Developer to prepare and execute any documentation necessary to release the encumbrance of this Agreement from the R-4 Affordable Property effective at the time of or subsequent to issuance of certificate of occupancy related to the R-4 Affordable Housing Project. Section 5.4. Default by Affordable Housing Provider. ARD and the City acknowledge that Exhibit “G” of the Development Agreement provides, “should an affordable housing provider fail to construct the units, the obligation to provide for the 24 deed-restricted low income affordable housing units on the lot remains with Avila Ranch to complete.” In addition, Exhibit “G” requires ARD to construct eight (8) Low Income 2- bedroom/ 1- bath and eight (8) Moderate Income 2- bedroom/ 1- bath units. ARD has proposed and City agrees to permit these units to be included in the R-4 Affordable Housing Project along with the 24 deed-restricted low income affordable units. ARD and the City further acknowledge that the Development Agreement does not specifically call out the timing for completion of the R-4 Affordable Project but contemplates that the R-4 Page 213 of 668 Phase 3 of Avila Ranch, Affordable Housing Agreement 14 1076\80\3661235.1 Affordable Housing Project will be completed “early in the Project, rather than leaving them to the end.” If the Affordable Housing Provider does not timely develop and construct the R -4 Affordable Housing Project, ARD and Affordable Housing Provider will meet to discuss the actions required for ARD to step in and take over as necessary to allow the R-4 Affordable Housing Project to be constructed. In the event Affordable Housing Provider elects not to complete the R- 4 Affordable Housing Project or fails to do so following receipt of written notice by ARD to R -4 Affordable Housing Provider of its intent to complete R-4 Affordable Housing Project and Affordable Housing Provider fails thereafter to diligently and continuously process to completion construction of the R-4 Affordable Housing Project, ARD acknowledges it has or will have the right to step in and take over work necessary to complete the R-4 Affordable Housing Project by delivering written notice to Affordable Housing Provider. Section 5.5 Construction Timing of Affordable Housing Project. For purposes of this Agreement, the term “Commence Construction” means issuance by the City of a “ready to issue” letter for a building permit for the R-4 Affordable Housing Project, the only condition for which is the payment of City fees. For purposes of this Agreement, the term “Substantially Complete Construction” means completion of seventy-five percent (75%) of the construction of the R-4 Affordable Housing Project as demonstrated by the construction budget attached to the first lender construction loan documents for the R-4 Affordable Housing Project and draw requests approved by the first lender. In order to ensure that the Affordable Housing Project is completed earlier in the Project, as opposed to the last phase of the Project, the City reserves the right to withhold the issuance of building permits to ARD if the Affordable Housing Provider has not Commenced Construction by the issuance of a building permit for ARD’s 500th unit, and/or if the Affordable Housing Provider has not Substantially Completed Construction by the issuance of a building permit for ARD’s 550th unit. ARTICLE 6. ENFORCEMENT Section 6.1. Covenants Running with the Land. The requirements of this Agreement shall be covenants running with the land as defined in California Civil Code Section 1460, and shall apply to the parcels as described in Exhibit A and graphically depicted in Exhibit B. Pursuant to Civil Code Section 1468, which governs such covenants, the provisions of this Agreement shall be binding upon all Parties having any right, title, or interest in any of the properties described herein, or any portion thereof and on their heirs, successors in interest and assigns for the periods set forth below: (a) Moderate-Income Units for the Moderate-Income Affordability Period as defined in Section 3.2. (b) WHIP Units for the WHIP Unit Affordability Period defined above in 4.2. The Parties agree that all future deeds or transfers of interest regarding the properties will show the restrictions of this Agreement for as long as the Agreement is in effect. This Agreement, Page 214 of 668 Phase 3 of Avila Ranch, Affordable Housing Agreement 15 1076\80\3661235.1 and the covenants running therewith, will terminate as to the Moderate Units at the expiration of the Moderate-Income Affordability Period, unless previously terminated as to a particular Moderate-Income Unit by and through the Shared Equity Program and the WHIP Units at the expiration of the WHIP Unit Affordability Period. Section 6.2. Default. Failure of ARD and/or Adjoining Landowners to satisfy any of the obligations under the terms of this Agreement within ninety (90) days after the delivery of a notice of default to the defaulting Party from the City will constitute a default under this Agreement and a violation of the Inclusionary Housing Ordinance (“Default”). In addition to remedies for breach of this Agreement, the City may exercise any and all remedies available to it under the Inclusionary Housing Ordinance or other any other provision of law or equity, including, but not limited to: (a) withholding, conditioning, suspending, or revoking any approvals for the Project, including without limitation final inspections for occupancy and/or the issuance of any certificates of occupancy; (b) instituting against ARD and/or Adjoining Landowners, or other parties, a civil action for declaratory relief, injunction or any other equitable relief, or relief at law, including without limitation an action to rescind a transaction and/or to require repayment of any funds received in connection with such a violation; (c) where one or more persons have received financial benefit as a result of violation of this Agreement, the City may assess, and institute legal action to recover as necessary, a penalty in any amount up to and including the amount of financial benefit received, in addition to recovery of the benefit received; and (d) requiring ARD or its successors in interest to the Property to pay the City payment received by the ARD for the unauthorized sale of the Affordable Units. Section 6.3. Attorney's Fees and Costs. If either Party takes or commences any actions or proceedings, including litigation or arbitration, against the other by reason of any breach or claimed breach of any provision of, or in any way connected with, this Agreement, or seeks a judicial declaration of rights under this Agreement, the Party prevailing in such action or proceeding shall be entitled to recover from the other Party the prevailing Party's reasonable attorney's fees and costs, including, but not limited to, all expert witness fees, other witness fees and associated expenses, whether or not the proceeding or action proceeds to judgment. ARTICLE 7 GENERAL PROVISIONS Section 7.1. Appointment of Other Agencies. At its sole discretion, the City may designate, appoint, or contract with any other public agency, for-profit or non-profit organization to perform some or all of the City's obligations under this Agreement. Section 7.2. Records. ARD and/or Adjoining Landowners shall retain all records related to compliance with obligations under this Agreement for a period not less than five (5) years from Page 215 of 668 Phase 3 of Avila Ranch, Affordable Housing Agreement 16 1076\80\3661235.1 the date of origination of such records and make the records available to City employees or others designated by the City for inspection and copying upon five (5) business days' written notice. The City shall be entitled to monitor compliance with this Agreement, and the Owner shall cooperate with City monitoring, including obtaining Eligible Household verification upon request of the City. Section 7.3. Services by Administrator. In order to maintain compliance with the City’s Below Market Rate Housing Program and reporting requirements, ARD shall utilize the City’s Administrator. The Administrator’s services include but are not limited to Management of the City’s Below Market Rate program. Marketing plans are subject to the City’s approval and will require, at a minimum, that Affordable Units are advertised through the Multiple Listing Service. Section 7.4. Services by BMR Underwriter. Pursuant to separate agreements between ARD and the BMR Underwriter and City and the BMR Underwriter, the BMR Underwriter will provide eligibility screening and certification of Initial Eligible Households. In the event either of the foregoing agreements is terminated, ARD and City agree to cooperate in the designation of a replacement BMR Underwriter. Section 7.5 Residential Use. None of the Affordable Units in the Project will at any time be utilized on a transient basis or will ever be used as a hotel, motel, vacation rental, homestay, dormitory, fraternity house, sorority house, rooming house, nursing home, hospital, sanitarium, or trailer court or park, nor shall the Affordable Units be used as a place of business except as may otherwise be allowed by applicable law. Section 7.6. Nondiscrimination. All of the Affordable Units shall be available to members of the general public who are income eligible. There shall be no discrimination against or segregation of any person or group of persons, on account of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, family status, sex, gender, gender identity, gender expression, age, sexual orientation, source of income, veteran or military status, or on any other basis protected by applicable law in the sale, transferring, use, occupancy, or enjoyment of any Affordable Units, nor shall ARD and/or Adjoining Landowners or any person claiming under or through ARD and/or Adjoining Landowners, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy, of purchasers of any Affordable Unit or in connection with the employment of persons for the operation and management of the Project. Section 7.7. Housing Voucher Certificate Holders. In prequalifying Initial Eligible Households, ARD and/or Adjoining Landowners will require its preferred lender to accept as buyers, on the same basis as all other prospective buyers, persons who are recipients of federal certificates for mortgage subsidies pursuant to the existing housing program under Section 8 of the United States Housing Act, or its successor, or similar any other programs in which lawful, verifiable income is paid to an Eligible Household or to a housing provider on behalf of an Eligible Household. The Owner shall not apply selection criteria to holders of Section 8 certificate or similar certificates or vouchers that is more burdensome than criteria applied to all other prospective buyers, nor shall the Owner apply or permit the application of management policies or lease provisions with respect to the Project which have the effect of precluding occupancy of Page 216 of 668 Phase 3 of Avila Ranch, Affordable Housing Agreement 17 1076\80\3661235.1 units by such prospective buyers. Section 7.8. Hold Harmless. ARD and/or Adjoining Landowners shall indemnify and hold harmless (without limit as to amount) City and its elected and appointed officials, officers, employees and agents in their official capacity (hereinafter collectively referred to as “Indemnitees”), and any of them, from and against all loss, all risk of loss and all damage (including expenses and attorney's fees) sustained or incurred because of or by reason of any and all claims, demands, suits, actions, judgments and executions for damages of any and every kind and by whomever and whenever made or obtained, allegedly caused by, arising out of or relating in any manner to ARD's performance or non-performance under this Agreement, including claims pursuant to California Labor Code Section 1720 et seq. In the event Indemnitees are made a party to any action, lawsuit or other adversarial proceeding arising from Owner’s performance of this Agreement, Owner shall provide a defense to the City Indemnitees or at the City’s option, reimburse the City Indemnitees their costs of defense, including reasonable legal fees, incurred in defense of such claims. The provisions of this Section shall survive expiration or other termination of this Agreement or any release of part or all of the Property from the burdens of this Agreement, and the provisions of this Section shall remain in full force and effect. Section 7.9. Notices. All notices required pursuant to this Agreement shall be in writing and may be given by personal delivery or by registered or certified mail, return receipt requested, to the Party to receive such notice at the addressed set forth below: TO THE CITY: City of San Luis Obispo Community Development Department 919 Palm Street San Luis Obispo, CA 93401-3249 Attn: Community Development Director WITH COPY TO: City of San Luis Obispo 990 Palm Street San Luis Obispo, CA 93401 Attn: City Attorney TO ARD: Avila Ranch Developers, Inc. 2505 Alluvial Avenue Clovis, CA 93611 Attn: Joshua Peterson, President TO ADJOINING LANDOWNERS: FG2 Holdings, LLC 1396 W. Herndon Avenue Page 217 of 668 Phase 3 of Avila Ranch, Affordable Housing Agreement 18 1076\80\3661235.1 Fresno, CA 93711 Attn: John Bezmalinovic TO AFFORDABLE HOUSING PROVIDER: Avila Ranch LP c/o OHDC Avila Ranch LLC 414 E. Chapman Avenue Orange, California 92866 Attention: Eunice Bobert Email: OHDC@ohdcorp.com AND C & C Development Co., LLC 14211 Yorba Street, Suite 200 Tustin, California 92780 Attention: Todd Cottle Email: todd@c-cdev.com WITH A COPY TO: Goldfarb & Lipman LLP Attention: Lynn Hutchins 1300 Clay Street, 11th Floor Oakland, California 94612 Email: lhutchins@goldfarblipman.com Any notice will be deemed delivered on the first business day that delivery is attempted or upon receipt, whichever is sooner. As used herein, “business day” means any day other than a Saturday, Sunday, or any state or federal holiday on which financial institutions in San Luis Obispo County are authorized or required to close for observance thereof. Any Party may change the address to which notices are to be sent by notifying the other Parties of the new address, in the manner set forth above. Section 7.10. Transfers. For purposes of this Agreement, "Transfer" means any sale, assignment, or transfer, whether voluntary or involuntary, of: (i) any rights and/or duties under the Deed of Trust and this Agreement; and/or (ii) any interest in the Affordable Units, including (but not limited to) a fee simple interest, a joint tenancy interest, a life estate, a partnership interest, a leasehold interest, a security interest, or an interest evidenced by a land contract by which possession of the Affordable Units are transferred and Owner retains title. (a) Future Transfers of Affordable Units shall ensure that (i) the Transfer does not affect the timing and/or number of Affordable Units provided within the Project and as described by this Agreement. (b) In the event of a proposed Transfer, Owner agrees to provide City at least thirty Page 218 of 668 Phase 3 of Avila Ranch, Affordable Housing Agreement 19 1076\80\3661235.1 (30) days written notice of such proposed assignment prior to the proposed Transfer and shall provide satisfactory evidence that the assignee will assume in writing, through an assignment and assumption agreement, all obligations of ARD and/or Adjoining Landowners under this Agreement. Notwithstanding the foregoing: (i) the terms, covenants and conditions of this Agreement shall be binding upon any transferee whether or not such an assignment and assumption agreement is signed by the assignee; and (ii) no such transfer shall relieve the Owner (“Transferor”) of any obligations under this Agreement absent express written consent of the City. (c) For all proposed Transfers, ARD and/or Adjoining Landowners shall provide to City an assignment and assumption agreement a form reasonably satisfactory to the City Attorney. All of the terms, covenants and conditions of this Agreement shall inure to the benefit of the City and its successors and assigns and shall be binding upon the Transferor and any successors in interest to ARD and/or Adjoining Landowner’s interest in this Agreement, the Affordable Units or any part thereof. The covenants shall run in favor of the City and its successors and assigns for the entire period of the Term. The City and its successor and assigns, in the event of any breach of any such covenants, shall have the right to exercise all of the rights and remedies, and to maintain any actions at law or suits in equity or other proper proceedings to enforce the curing of such breach. Section 7.11. Integrated Agreement. This Agreement sets forth the full and entire understanding of the Parties regarding the matter set forth herein. Any other prior or existing understandings or agreements by the Parties, whether formal or informal, regarding any matters addressed within this Agreement are hereby superseded or terminated in their entirety. To the extent that there are any inconsistencies between this Agreement and the Development Agreement, Development Plan and/or applicable City Ordinances, this Agreement will control unless otherwise required by applicable law. Section 7.12. Each Party's Role in Drafting the Agreement. Each Party to this Agreement has had an opportunity to review the Agreement, confer with legal counsel regarding the meaning of the Agreement, and negotiate revisions to the Agreement. Accordingly, neither Party will rely upon Civil Code Section 1654 in order to interpret any uncertainty in the meaning of the Agreement. Section 7.13. Amendment of Agreement. No changes, amendments, or alterations to this Agreement shall be effective unless in writing and signed by all Parties hereto. Amendments to this Agreement may be approved by the Director unless the Development Agreement requires approval by another person/entity. Upon approval, a new Agreement containing the amendments will be executed and recorded. Section 7.14. Applicable Law. This Agreement will be governed by California law. Venue will be the County of San Luis Obispo. Section 7.15. Waivers. Any waiver by the City of any obligation or condition in this Agreement must be in writing. No waiver will be implied from any delay or failure by the City to act on any breach or default of ARD or the Adjoining Landowners or to pursue any remedy allowed Page 219 of 668 Phase 3 of Avila Ranch, Affordable Housing Agreement 20 1076\80\3661235.1 under this Agreement or applicable law. Any extension of time granted to ARD or the Adjoining Landowners to perform any obligation under this Agreement shall not operate as a waiver or release from any of its obligations under this Agreement. Consent by the City to any act or omission by ARD or the Adjoining Landowners will not be construed to be a consent to any other or subsequent act or omission or to waive the requirement for the City's written consent to future waivers. Section 7.16. Title of Parts and Sections. Any titles of the sections, subsections, or subparagraphs of this Agreement are inserted for convenience of reference only and will be disregarded in interpreting any part of the Agreement's provisions. Section 7.17. Multiple Originals; Counterpart. This Agreement may be executed in multiple originals, each of which is deemed to be an original, and may be signed in counterparts. Section 7.18. Recording of Agreement. This Agreement will be recorded against the Property in the Official Records of the County of San Luis Obispo. Section 7.19. Severability. In the event any limitation, condition, restriction, covenant, or provision contained in this Agreement is to be held invalid, void, or unenforceable by any court of competent jurisdiction, the remaining portions of this Agreement shall nevertheless be and remain in full force and effect. Page 220 of 668 Phase 3 of Avila Ranch, Affordable Housing Agreement [Signature Page to Below Market Rate Housing Agreement and Declaration of Restrictive Covenants (Affordable Units for Phase 2 of Avila Ranch)] 1076\80\3661235.1 IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed as of the day and year first above written. ARD: Avila Ranch Developers, Inc., a California corporation By: ______________________________ Joshua E. Peterson, President ADJOINING LANDOWNERS: FG2 HOLDINGS, LLC, a California limited liability company By: _________________________ Neema Assemi, Manager AVILA RANCH EA, LLC, a California limited liability company By: _________________________ Neema Assemi, Manager By: _________________________ Nader Assemi, Manager CJ HOLDINGS, LP, a California limited partnership By: Spyglass Real Estate, Inc., a California corporation, Its General Partner By: _________________________ Joshua Peterson, President AVILA RANCH LP, a California limited partnership By: OHDC Avila Ranch LLC, a California limited liability company, its managing general partner By: Orange Housing Development Corporation, a California nonprofit public benefit corporation, its sole member and manager Page 221 of 668 Phase 3 of Avila Ranch, Affordable Housing Agreement [Signature Page to Below Market Rate Housing Agreement and Declaration of Restrictive Covenants (Affordable Units for Phase 2 of Avila Ranch)] 1076\80\3661235.1 By: ___________________________ Eunice Bobert Chief Executive Officer By: C & C Development Co., LLC a California limited liability company, its developer general partner By: ___________________________ Todd R. Cottle, Trustee of the 2007 Todd R. Cottle and Jennifer N. Cottle Revocable Trust, member Date: _________ __, 2023 CITY: City of San Luis Obispo, a California charter city and municipal corporation By: ______________________________________________ Timothea Tway, Community Development Director APPROVED AS TO FORM AND LEGAL EFFECT: By: _______________________________ Christine Dietrick, City Attorney Page 222 of 668 Phase 3 of Avila Ranch, Affordable Housing Agreement 1076\80\3661235.1 STATE OF CALIFORNIA ) ) COUNTY OF ) On , before me, , Notary Public, 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 of Notary Public (SEAL ABOVE) 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. Page 223 of 668 Phase 3 of Avila Ranch, Affordable Housing Agreement 1076\80\3661235.1 STATE OF CALIFORNIA ) ) COUNTY OF ) On , before me, , Notary Public, 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 of Notary Public (SEAL ABOVE) 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. Page 224 of 668 Phase 3 of Avila Ranch, Affordable Housing Agreement 1076\80\3661235.1 EXHIBIT A LEGAL DESCRIPTION OF THE PROPERTY Affordable Lots: MODERATE-INCOME LOTS Lots 290, 307 and 321 of Final Map 3089 Phase 2 & 3 as said map was filed and recorded ______________, 2021 at Book ____ of Maps at pages ___ through ___, inclusive, in the office of the San Luis Obispo Recorder WHIP LOTS Lots 246, 247, 297, 308, 322 of Final Map 3089 Phase 2 & 3 as said map was filed and recorded ______________, 2021 at Book ____ of Maps at pages ___ through ___, inclusive, in the office of the San Luis Obispo Recorder. THE R-4 AFFORDABLE PROPERTY Lot 186 of Final Map 3089 as said map was filed and recorded December 23, 2021 at Book 41 of Maps at pages 48 through 62, inclusive, in the office of the San Luis Obispo County Recorder. Page 225 of 668 Phase 3 of Avila Ranch, Affordable Housing Agreement 1076\80\3661235.1 EXHIBIT B MAP SHOWING LOCATION OF AFFORDABLE UNITS AND R-4 AFFORDABLE HOUSING PROJECT Unit Number Square Footage Bedroom Count Affordability Lot 290 2-bed Moderate Lot 307 3-bed Moderate Lot 321 3-bed Moderate Lot 246 2-bed Workforce Lot 247 2-bed Workforce Lot 297 3-bed Workforce Lot 308 3-bed Workforce Lot 322 3-bed Workforce Page 226 of 668 Phase 3 of Avila Ranch, Affordable Housing Agreement 1076\80\3661235.1 EXHIBIT C FORM OF SHARED EQUITY AGREEMENT Page 227 of 668 Phase 3 of Avila Ranch, Affordable Housing Agreement 1076\80\3661235.1 EXHIBIT D FORM OF HOMEBUYER/CITY NOTE Page 228 of 668 Phase 3 of Avila Ranch, Affordable Housing Agreement 1076\80\3661235.1 EXHIBIT E FORM OF HOMEBUYER/CITY DEED OF TRUST Page 229 of 668 Phase 3 of Avila Ranch, Affordable Housing Agreement 1076\80\3661235.1 EXHIBIT F DOWN PAYMENT ASSISTANCE GUIDELINES Page 230 of 668 Phase 3 of Avila Ranch, Affordable Housing Agreement 1076\80\3661235.1 EXHIBIT G FORM OF WHIP HOMEBUYER/CITY NOTE Page 231 of 668 Phase 3 of Avila Ranch, Affordable Housing Agreement 1076\80\3661235.1 EXHIBIT H FORM OF WHIP HOMEBUYER/CITY DEED OF TRUST Page 232 of 668 AVILA RANCH PARK LAYOUT PHASE 2-3 PARKS Lot Number on Tract Map Acreage presented to PRC Acreage shown on tract map Park E 326 0.81 0.82 Park D 330 0.38 0.99 Total 1.19 1.81 Other parks shown on exhibit are in phases other than 2-3. PRC = Parks and Recreation Commission Page 233 of 668 Page 234 of 668 Subdivision Agreement - Tract 3089, Phase 2 & 3 1 SUBDIVISION AGREEMENT – TRACT 3089 PHASES 2 & 3 THIS AGREEMENT is dated this ______ day of _________________ 202___ by and between Avila Ranch Developers, Inc., a California Corporation, herein referred to as "Subdivider," with the consent of Avila Ranch Developers, Inc., a California Corporation; FG2 HOLDINGS, LLC, a California limited liability company; AVILA RANCH EA, LLC, a California limited liability company; and, CJ HOLDINGS, LP a California limited partnership herein collectively referred to as “Owners” and the CITY OF SAN LUIS OBISPO, herein referred to as the "City." RECITALS REFERENCE IS HEREBY MADE to that certain proposed subdivision of real property in the City of San Luis Obispo, County of San Luis Obispo, State of California, a description of which is shown on the Final Map of Tract 3089 Phases 2 & 3, City of San Luis Obispo, California, as approved by the City Council on the ____ day of _______________, 202___, with the consent of Owners who own said real property. The Subdivider desires that said Tract 3089 Phases 2 & 3 be accepted and approved as a Final Map pursuant to the Subdivision Regulations of the City of San Luis Obispo (Title 16 of the San Luis Obispo Municipal Code), and It is a condition of said regulations that the Subdivider agree to install the improvements as set forth on the plans therefore. TERMS AND CONDITIONS: In consideration of the foregoing, the Subdivider does hereby agree to construct and install the following subdivision improvements (collectively “improvements”) in accordance with said subdivision regulations, and in accordance with approved plans and Page 235 of 668 Subdivision Agreement - Tract 3089, Phase 2 & 3 2 specifications on file in the office of the City Engineer, City of San Luis Obispo, (“Subdivision Improvement Plans and Specifications”) to wit: 1. CURB, GUTTERS AND SIDEWALKS 2. STREET BASE AND SURFACING 3. WATER MAINS and SEWER MAINS, including sewer laterals to the property line and water services to the curb stop. 4. LANDSCAPING 5. DRAINAGE STRUCTURES 6. STREET LIGHTS 7. ELECTRIC, GAS, TELEPHONE AND CABLE TELEVISION: In addition to the inspection and approval of such facilities by the City, each public utility shall be required to file a letter stating that the developer has properly installed all facilities to be provided by him, and that the said utility is prepared to provide service to residents upon request. 8. ANY & ALL OTHER IMPROVEMENTS shown on plans or required by project approvals. All of the above facilities shall be installed in the locations designated and to the plans and specifications on file and approved by said City Engineer. The lines and grades for all of said improvements shall be established by the Subdivider in accordance with said approved plans and specifications. The Subdivider agrees that the work of installing the above improvements shall begin within thirty (30) days from the date of recording of the final map, and that the work shall be completed within twenty-four (24) months of said recording date, unless an extension has been granted by the City, provided that if completion of said work is delayed by acts of God or labor disputes resulting in strike action, the Subdivider shall have an Page 236 of 668 Subdivision Agreement - Tract 3089, Phase 2 & 3 3 additional period of time equivalent to such period of delay in which to complete such work. Any extension of time hereunder shall not operate to release the surety on the Improvement Security (“Improvement Security shall mean, collectively, the Performance Credit/Bond, Materials Bond, and/or Warranty Bond”) filed pursuant to this agreement. In this connection, the surety waives the provisions of Section 2819 of the Civil Code of the State of California. No building permits will be issued nor occupancy granted after the expiration date of the agreement, taking into account any authorized extensions, until completion and acceptance of all subdivision improvements unless specifically approved by the City. The Subdivider does also agree to comply with the conditions established by the City Council and has paid the necessary fees as indicated on the attached Exhibits 1 and 2. Setting of new survey monuments or resetting of disturbed monuments shall be in accordance with Article 5, paragraph 8771 et seq., of the Professional Land Surveyors Act, Chapter 15 of the Business and Professions Code of the State of California. The Subdivider attaches hereto, as an integral part hereof, and as security for the performance of this agreement, instrument(s) of credit or bond approved by and in favor of the City of San Luis Obispo, and conditional upon the faithful performance of this agreement (“Performance Credit/Bond”). Said instrument(s) of credit or bond is/are in the amount(s) shown in Exhibit 2, which is the amount of the estimated cost of said improvements. Subdivider agrees to remedy any defects in the improvements arising from faulty workmanship or materials or defective construction of said improvements occurring within Page 237 of 668 Subdivision Agreement - Tract 3089, Phase 2 & 3 4 twelve (12) months after acceptance thereof (“Warranty Period”). In accordance with Sections 66499.7 and 66499.9 of the Government Code of the State of California, upon final completion and acceptance of the work, City will release all but 10% of the improvement security in the form acceptable to the City as a warranty bond (“Warranty Bond”), with that amount being deemed sufficient to guarantee faithful performance by the Subdivider of his obligation to remedy any defects in the improvements arising within a period of one year following the completion and acceptance thereof. The Subdivider shall submit a formal request to the City at the end of the warranty period and City shall provide Subdivider with a comprehensive list of any outstanding defects to be remedied by Subdivider. City shall release the warranty bond upon re-inspection and confirmation of the completion of listed repairs. Completion of the work shall be deemed to have occurred on the date which the City Council shall, by resolution duly passed and adopted, accept said improvements according to said plans and specifications, and any approved modifications thereto. Neither periodic nor progress inspections or approvals shall bind the City to accept said improvements or waive any defects in the same or any breach of this agreement. “AS-BUILT” record drawings are to be submitted within four weeks of completion of construction and prior to City acceptance of the public improvements. If the Subdivider fails to complete the work within the prescribed time, the Subdivider agrees that City may, at its option, declare the instrument of credit or bond which has been posted by Subdivider to guarantee faithful performance, forfeited and utilize the proceeds to complete said improvements, or city may complete said improvements and recover the full cost and expense thereof from the Subdivider or his surety. Page 238 of 668 Subdivision Agreement - Tract 3089, Phase 2 & 3 5 The Subdivider has deposited with the City a labor and materials surety or sureties in the amount of 50% of the above described subdivision improvements in accordance with State law (“Materials Bond”). Said Subdivider shall pay an inspection fee for City to inspect the installation of said subdivision improvements, and to verify that they have been completed in accordance with the plans and specifications. If off-site dedication of property is necessary to facilitate the construction of the required subdivision improvements, the Subdivider and City shall adhere to the requirements of Section 6.04 of the Development Agreement adopted by the City Council on October 3, 2017 by Ordinance No. 1639 (2017 Series) with regards to acquiring said off-site dedication. Title 16 of the San Luis Obispo Municipal Code, entitled "Subdivision," all plans and specifications on file with said City Engineer as a part of said Subdivision Map, and all other documents filed with the City by the Subdivider and approved by the City Engineer are hereby referred to for further particulars in interpreting and defining the obligations of the Subdivider under this agreement. Pursuant to Government Code Section 66474.9(b), the subdivider shall defend, indemnify and hold harmless the City and/or its agents, officers and employees from any claim, action or proceeding against the City and/or its agents, officers or employees to attack, set aside, void or annul, the approval by the City of this subdivision, and all actions relating thereto, including but not limited to environmental review (“Indemnified Claims”). The City shall promptly notify the subdivider of any Indemnified Claim upon being presented with the Indemnified Claim and City shall fully cooperate in the defense against an Indemnified Claim. Page 239 of 668 Subdivision Agreement - Tract 3089, Phase 2 & 3 6 It is understood and agreed by and between the Subdivider and the City hereto that this agreement shall bind the heirs, executors, administrators, successors and assigns of the respective Parties to this agreement. [signatures on following page] Page 240 of 668 Subdivision Agreement - Tract 3089, Phase 2 & 3 7 IN WITNESS WHEREOF, this agreement has been executed by: SUBDIVIDER Avila Ranch Developers, Inc. a California Corporation By:____________________________ Josh Peterson, President OWNERS The undersigned Owners hereby consent to Avila Ranch Developers, Inc., entering into this Subdivision Agreement FG2 HOLDINGS, LLC a California limited liability company By:____________________________ Neema Assemi, Manager AVILA RANCH EA, LLC a California limited liability company By:____________________________ Neema Assemi, Manager By:____________________________ Nader Assemi, Manager CJ HOLDINGS, LP a California limited partnership By:____________________________ Josh Peterson, President CITY OF SAN LUIS OBISPO See next page Page 241 of 668 Subdivision Agreement - Tract 3089, Phase 2 & 3 8 CITY OF SAN LUIS OBISPO MAYOR MAYOR Erica A. Stewart ATTEST: CITY CLERK Teresa Purrington APPROVED AS TO FORM: CITY ATTORNEY Christine Dietrick Page 242 of 668 Subdivision Agreement - Tract 3089, Phase 2 & 3 9 EXHIBIT 1 TRACT 3089 PHASES 2 & 3 SUBDIVISION AGREEMENT 1. The Subdivider has deposited a monumentation security in the amount of $80,000 to guarantee the installation of survey monuments in accordance with the approved map and payment for same. Said guarantee will be released once the installation of monuments has been verified and that existing monuments have not been disturbed, and upon receipt by the City of a letter from the Surveyor indicating that they have completed the work and have been paid. Subdivider shall adhere to the requirements of California Business and Professions Code Section 8771 with regards to monument preservation. The monumentation security also guarantees the replacement of any monuments that were disturbed during construction, along with filing of Records of Survey or Corner Records required by said Section 8771. 2. Phases 2 & 3 provide sufficient parkland and park improvements to meet City requirements based on the projected population and housing onsite, so there are no "in-lieu" park fees required. The subdivision improvement bonds include the requirement to pay for a biological, archeological and Native American monitor per the mitigation measures. 3. Water Impact Fees for irrigation water meters shown on the subdivision improvement plans shall be paid prior to subdivision improvement plan approval per Condition #59. 4. The Subdivider has elected to pay a roadway maintenance fee to satisfy the Conditions of Approval. The fee of $10,000 was approved by the City Engineer in accordance with City Engineering Standards and guidelines. 5. The Subdivider shall comply with all requirements of Council Resolution No. 10832 (2017 Series) approving the tentative map and Ordinance No. 1639 (2017 Series) approving the Development Agreement. 6. Condition 104 S.Higuera and Vachell (Phase 2) start construction prior to issuance of building permits. 7. Condition 109 Bike/Ped bridges over Tank Farm Creek a. South of Buckley Rd: modify timing per FEIR Addendum to Phase 4 b. North of Buckley Rd: Completion of construction prior to occupancy of the 30th unit in Phases 2 & 3. 8. Condition 111 install sidewalk from LOVR to City; Design and construction of improvements between Los Osos Valley Road and the City limit shall be initiated prior to issuance of building permits for Phase 2 development. Improvements shall be completed prior to issuance of an occupancy permit for Phase 2 development. 9. Condition 116.g Buckley -Vachel fair share mitigation fee re traffic sign Page 243 of 668 Subdivision Agreement - Tract 3089, Phase 2 & 3 10 EXHIBIT 2 TRACT 3089 PHASES 2 & 3 - FEE AND BOND LIST 175 VENTURE Amount Form Date Received Bond Release Status Bonds and Guarantees: On-Site Faithful Performance: Can be released upon City Council acceptance of improvements, deposit of one-year warranty surety, and approval of record drawings. Subdivision Improvements (FMAP-0488-2022) Includes all Parks $ 11,579,800 Bond Bold = confirmed (typ.) Off-Site Faithful Performance: Can be released upon Public Works Director acceptance of improvements, deposit of one-year warranty surety, and approval of record drawings. S. Higuera at Vachell Phase 2 Improvements (FMAP-1537-2018) $165,700 Bond Bicycle Bridge over Tank Farm Creek North of Buckley Road $TBD Bond South Higuera Sidewalks; COA 111; (FMAP-0479-2021) $79,000 Bond Labor & Materials (50% of cost of each of the above improvements) Can be released 90 days after acceptance of improvements, if no claims. (Civil Code Section 8412) Subdivision Improvements (FMAP-0488-2022) Includes all Parks $ 11,579,800/2 =$ 5,789,900 Bond Off-Site Labor & Materials: Can be released upon Public Works Director acceptance of improvements, deposit of one-year warranty surety, and approval of record drawings. S. Higuera at Vachell Phase 2 Improvements (FMAP-1537-2018) $165,700/2 =$ 82,850 Bond South Higuera Sidewalks Vachell to South City Limits $79,000/2 = $39,500 Bond Bicycle Bridge over Tank Farm Creek North of Buckley Road $TBD Bond Monument Guarantee $80,000 CD or Letter of Credit Can be released upon verification that monuments have been set and surveyor has been paid. 10% Warranty 10% of On-Site Faithful Performance above To be collected prior to release of Faithful Performance Bonds Can be released one-year after acceptance of improvements. Page 244 of 668 Subdivision Agreement - Tract 3089, Phase 2 & 3 11 Fees: Plan and Map Check Fees: Map Check Fee FMAP-0562-2022 Balance Due $40,969.48 0 Check date Paid in Full Improvement Plancheck Base Fee: FMAP‐0488‐2022 Balance Due IT surcharge Total Improvement Plancheck Remainder Fee: FMAP‐0488‐2022 Bicycle Bridge over Tank Farm Creek North of Buckley Road Plan Check Fees Construction Inspection Fees $90,308.86 $2,764.51 $93,073.37 $12,712.71 $387.74 $13,100.45 Check Check Check Oct 2023 Oct 2023 Oct 2023 Paid in Full Paid in Full Paid in Full Construction Inspection Fees Construction Inspection Fee: FMAP‐0488‐2022 Balance Due IT surcharge: N/A $290,722.91 Check Oct 2023 Paid in Full Construction Inspection Fee: FMAP‐0636‐2022 S. Higuera at Vachell Phase 2 Improvements Balance Due IT surcharge: N/A $22,186.75 Amount determined by approved FMAP-1537-2018 plan set and engineers estimate Impact Fees Roadway Maintenance Fee $10,000 Check To be deposited in Acct # 40050300- 90346953 Streets Reconstruction and Resurfacing Master per Matt Horn Water Impact Fees for irrigation meters Parkway, 1” meter fee $29,312.41 Calculated at current schedule 7/5/23 Park, 1” meter fee $29,312.41 Calculated at current schedule 7/5/23 Page 245 of 668 Subdivision Agreement - Tract 3089, Phase 2 & 3 12 Ad Hoc and Mitigation Fees Highway 227/Buckley Fair Share Mitigation $TBD Portion was paid this at Phase 1 map recordation but need to be an additional increment with Phase 2-3 map recordation for the additional units/traffic generated. Buckley/Vachell Fair Share Mitigation $18,651.16 Due with map recordation of each phase based on % of total unit count in that phase. Portion of $107,250. Buckley Road Corridor Improvements (at Davenport) $TBD Portion was paid this at Phase 1 map recordation but need to be an additional increment with Phase 2-3 map recordation for the additional units/traffic generated. Other Ad Hoc and Mitigation Fees Paid with Phase 1 Avila Ranch Affordable Housing Requirements See Affordable Housing Agreement Water Impact Fee1 To be collected with building permit Wastewater Impact Fee1 To be collected with building permit Transportation Impact Fee1 To be collected with building permit To be collected with building permit 1 All Impact Fees are adjusted annually (July 1) based on CPI. Credit given for demolished units. Page 246 of 668 Page 247 of 668 Page 248 of 668 Page 249 of 668 Page 250 of 668 Page 251 of 668 Page 252 of 668 Page 253 of 668 Page 254 of 668 Page 255 of 668 Page 256 of 668 Page 257 of 668 Page 258 of 668 Page 259 of 668 Page 260 of 668 Avila Ranch FMAP-0562-2022 and FEIR Addendum Guidelines §15162 No subsequent document shall be prepared unless the lead agency determines: •Involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; or •New information of substantial importance shows the project will have significant effects not already discussed, or significant effects previously examined will be substantially more severe. Guidelines §15164 •An addendum to a previously certified EIR may be prepared if some changes or additions are necessary but none of the conditions described in Section 15162 calling for the preparation of a subsequent EIR have occurred. •The decision making body shall consider the addendum with the adopted FEIR prior to making a decision on the project. Minor Technical Changes (FEIR Addendum pg. 7) •The Final EIR determined that impacts to Transportation under TRANS-11 are significant but mitigable. •Mitigation Measure TRANS-11 requires the installation of separated bicycle facilities to create continuous bicycle routes on Buckley Road along the project frontage. •The improvements will be designed and installed as originally required. The timing will be modified to be tied to other adjacent bicycle facility improvements in the area, improving safety, orderly development, and logical connection objectives. Determination Evaluation of impact areas indicates that the proposed modifications: •Are not associated with new significant impacts •Are not associated with a substantial increase in severity of potential impacts None of the conditions for preparation of a subsequent EIR have occurred An Addendum to the 2017 FEIR is appropriate under CEQA FMAP-0562-2022 and FEIR Addendum