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HomeMy WebLinkAboutContracts & Agreements_34-1985_CCv0001.pdf SETTLEMENT AGREEMENT THIS AGREEMENT is entered into this 15th day of November, 1985, by and between the CITY OF REDLANDS, a California general law city (hereinafter the "CITY" ) , and REDLANDS 496 JOINT VENTURE, a California general partnership (hereinafter "REDLANDS 496" ) . R E C I T A L S : A. REDLANDS 496 is the owner of the approximately 27 . 5 acres of real property located at the northwest corner of Kansas Street and Barton Road in the City of Redlands and more particularly described as follows : Parcel No. 1 of Parcel Map 9186, City of Redlands, County of San Bernardino, recorded in Book 98 of Parcel Maps, Pages 43-44 , Record of 5 . 03 . Said real property is hereinafter described as the "Subject Property" . B. On June 4 , 1985, the CITY approved Conditional Use Permit No. 432, being the application of REDLANDS 496 for the development of a 496-unit residential apartment project (hereinafter the "Project" ) on the Subject Property. C. Between June 4, 1985, and August 20, 1985, REDLANDS 496 secured the clearance and signatures of all of the CITY' s designated departments for the Project . The CITY' s planning department has approved the final building plans for the Project . REDLANDS 496 has tendered all of the necessary fees prerequisite to the issuance of building permits (with the exception of the disputed "School Impact Fees" referred to in Paragraphs D and E hereinbelow) and the CITY has accepted fees from REDLANDS 496 in the approximate amount of FOUR HUNDRED SEVENTY-TWO THOUSAND TWENTY-SEVEN DOLLARS AND SIXTY CENTS ( $472 , 027 . 60 ) . REDLANDS 496 (and its predecessor-in-interest ) has also tendered and the CITY has accepted, in accordance with applicable laws and regulations, security in the approximate amount of ONE HUNDRED SIXTY-TWO THOUSAND SIX HUNDRED SEVENTEEN DOLLARS ( $162, 617 .00) to secure REDLANDS 496 ' s obligations regarding the construction of public improvements and other miscellaneous matters pertaining to the Project. On August 20, 1985, the City Council of the CITY gave final approval to the development of the Project, the final prerequisite under the CITY' s procedures to the issuance of building permits. D. One of the conditions to approval of Conditional Use Permit No. 432 relates to the potential for payment by Redlands 496 to the Redlands Unified School District of certain fees (hereinafter "School Impact Fees" ) for the benefit of the School District. Said condition states that : "The Redlands Unified School District has com- pleted the presentation of its case that there is -2- impaction on the schools by future development. In the event that the City Council of the City of Redlands concurs with the alleged impact, then prior to issuance of any building permit on this project, the developer shall mitigate its impact on the facilities of the Redlands Unified School District by paying to the school district any fee or equivalent contribution then in effect in the City of Redlands and imposed by the City of Redlands ; such fee shall be no more than like fees imposed elsewhere in the school district. " E. A dispute has arisen over the interpretation and validity of the foregoing condition. The CITY contends that the condition requires Deane to mitigate the adverse effects of additional students generated by the 496 apartments proposed in the Project through payment of an appropriate School Impact Fee for the benefit of the Redlands Unified School District. As of the date of this Agreement, the CITY has not established the amount of such a fee. The Redlands Unified School District contends that the aforesaid condition is inadequate mitigation for the adverse impacts of the Project and has filed an action against the CITY and Deane Properties (a general partner in REDLANDS 496 ) in San Bernardino Superior Court (Case No. 228603 ) (hereinafter the "School District Action" ) to invalidate Conditional Use Permit No. 432 and enjoin the issuance of building permits for the -3- Project. REDLANDS 496 contends that the CITY' s approval of Conditional Use Permit No. 432 was proper, that REDLANDS 496 has complied with all requirements of the CITY, including the aforesaid condition, and that REDLANDS 496 is entitled to the issuance of building permits for the Project without payment of any School Impact Fees . F. To date, the CITY has refused to issue building permits for the Project. G. On October 17, 1985, REDLANDS 496 filed an action against the CITY in San Bernardino County Superior Court (Case No. 229999 ) (hereinafter the "Redlands 496 Action" ) , seeking a writ of mandate to compel the CITY to issue building permits for the Project, and further seeking damages for the delays caused by the CITY' s refusal to issue building permits . On October 21, 1985, REDLANDS 496 filed a claim for damages (hereinafter the "Claim" ) with the CITY arising out of the same facts and circumstances . H. On November 4, 1985, the San Bernardino County Superior Court issued a Temporary Stay Order in the School District Action which restrains the City from issuing building permits for the Project pending a hearing on an Order to Show Cause which is scheduled to be heard by said court on November 22, 1985 . I . The CITY and REDLANDS 496 desire to enter into this Settlement Agreement in order to ( 1 ) permit REDLANDS 496 to obtain building permits and proceed with construction of the Project at -4- such time as the Temporary Stay Order in the School District Action (and any other court order preventing issuance of building permits ) is lifted, ( 2 ) memorialize REDLANDS 496 ' s obligation and agreement to pay such School Impact Fees, if any, which may ultimately be finally determined to be applicable to the Project, and ( 3 ) settle all issues between the CITY and REDLANDS 496 arising out of the Redlands 496 Action, the Claim, and the CITY' s position in the School District Action. NOW, THEREFORE, the CITY and REDLANDS 496 agree as follows : A G R E E M E N T: 1. The foregoing Recitals are true and correct. 2 . REDLANDS 496 shall promptly pay to the CITY, on behalf of the Redlands Unified School District, the School Impact Fees, if any, chargeable to the Project upon a "final deter- mination" of the amount, if any, of such fees that are due . As used herein, the term "final determination" of the School Impact Fee dispute shall mean one of the following : (i ) The final judgment of the court in Case No. 228603 or such other case which may hereafter be filed which judgment either determines the amount of the School Impact Fee, if any, chargeable to the Project or upholds the CITY' s determination with respect thereto. -5- (ii ) An agreement approved by the CITY, REDLANDS 496, and the Redlands Unified School District with respect to the amount of School impact Fees , if any, chargeable to the Project. (iii ) CITY' s establishment of a School Impact Fee for the Project and REDLANDS 496 ' s notification to the CITY that it agrees to pay such fees . 3 . In consideration of REDLANDS 496s agreement under Paragraph 2 above, the CITY agrees to issue building permits for the Project immediately after the Temporary Stay Order in the School District Action (and any other court order preventing issuance of building permits ) is lifted. 4 . REDLANDS 496 shall dismiss with prejudice the REDLANDS 496 Action either (i ) immediately upon the CITY' s issuance of building permits for the Project or (ii ) within thirty ( 30 ) days after the CITY notifies REDLANDS 496 in writing that it is prepared and legally free to issue such permits, whichever is earlier. 5. The Claim heretofore filed by REDLANDS 496 shall be deemed to be dismissed and withdrawn either ( i ) immediately upon the CITY' s issuance of building permits for the Project or (ii ) within thirty (30 ) days after the CITY notifies REDLANDS 496 in writing that it is prepared and legally free to issue such permits, whichever is earlier . -6- 6. In further consideration of this Agreement, the CITY agrees not to take action in the School District Action or otherwise in support of any attempt or request by the Redlands Unified School District to enjoin or prevent the issuance of building permits for the Project or REDLANDS 496 ' s development and construction of the Project. 7 . The CITY and REDLANDS 496 hereby agree to release and forever discharge each other, their partners , officers, employees , agents, successors and assigns from any and all liability, manner of actions, causes of action, suits, claims, and demands of any nature whatsoever, in law or in equity, which they ever had, now have, or which they or their successors might hereafter have accruing on or before the date of this Agreement in any way related to the facts set forth herein, conditioned only upon the other party' s performance of its obligations hereunder. The parties hereto understand that Section 1542 of the Civil Code of California is as follows : "Section 1542 . Certain claims not affected by a general release. A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor . " -7- The parties hereby specifically waive the provisions of Civil Code Section 1542 . 8. This settlement is a compromise of the above- mentioned disputed claims between the parties hereto and shall never be treated as an admission of liability or wrongdoing by any party for any purpose. This settlement is not intended to prevent the CITY from taking the position, in litigation or otherwise, that REDLANDS 496 is required to pay School Impact Fees for the Project; nor shall this settlement be treated as an admission by REDLANDS 496 that any such fees are required. 9 . The CITY and REDLANDS 496 shall each bear their respective costs and attorneys fees incurred with respect to one another on the REDLANDS 496 Action. 10 . In the event that any litigation arises out of this Agreement, the prevailing party shall be entitled to reasonable costs and attorney ' s fees in addition to any other relief to which it may be entitled. 11. This Agreement is binding on and for the benefit of the parties hereto and their partners, officers, employees, agents, successors and assigns . CITY OF REDLANDS Ito By Of 4011 REDLANDS 496 J VENTURE U By DEANE TI S, Gener411 1 Pa ane �y -8-