HomeMy WebLinkAboutContracts & Agreements_126-2002SETTLEMENT AGREEMENT AND MUTUAL RELEASE
This Settlement Agreement and Mutual Release ("Agreement") is executed and entered into
on August 6,., , 2002 between REDLANDBRS FOR INFORMED DEVELOPMENT
("RID"), CITY OF REDLANDS (the "City") and CITY COUNCIL OF THE CITY OF
REDLANDS (the "City Council"), and PETER A. MIKO ("Miko"), with reference to the following
facts and circumstances.
Recitals
A. The Chiesman Irrevocable Family Trust (the "Trust"), for which Miko serves as a
trustee, is the owner of a certain 28.72 acre parcel of real property situated in the R-A (Residential
Estate) District and the A-1 (Agricultural) District located west of Terracina Boulevard and
Smiley Heights Drive and northeast of San Timoteo Canyon Road in the City of Redlands (the
"Subj ect Property").
B. Miko, on behalf of the Trust, made application to the City and, on July 17, 2001
the City Council approved, Tentative Tract No. 16042, Conditional Use Permit No. 714, and
Variance No. 612 and an associated Mitigated Negative Declaration for seven (7) single family
residential lots, three (3) lettered lots, and a remainder parcel on the Subject Property (collectively,
the "Project Approvals").
C. RID is an unincorporated associated composed of persons -- including but not
limited to William E Cunningham, Lester Mohr, and Walter Johnson -- residing and/or owning real
property in the vicinity of the Subject Property and concerned with the Project Approvals.
D. On August 17, 2001, RID, as Petitioner/Plaintiff, filed a Petition for Writ of
Mandate and Complaint for Declaratory and Injunctive Relief in the San Bernardino County
Superior Court, bearing Case No. SCVSS 080668 (the "Action"), naming the City and the City
130/021319-0001
251121.08 PM02
Council as Respondents/Defendants, and naming Miko as Real Party in Interest. in the Action was
Peter A. Miko ("Miko"). The Action petitions the court for the issuance for a writ of mandate and
for declaratory and injunctive relief challenging the Project Approvals.
E. The City, the City Council and Miko filed answers denying the material allegations
and asserting several affirmative defenses.
F. The parties now consider it in their best interest to resolve and settle the Action on
the terns and conditions set forth herein in order to avoid the cost, inconvenience, uncertainty, and
distraction of burdensome and protracted litigation.
Agreement
Now, therefore, in consideration of the promises, tennis, conditions, promises, covenants,
and agreements contained herein, it is agreed by and between the parties as follows:
1. The foregoing recitals are incorporated herein and made a part of this Agreement
by this reference.
2. Miko, on behalf of the Trust, agrees to submit to the City, and the City agrees to
process and to submit to the City Council for consideration and action, the following revisions to
the Project Approvals:
a. Lot C, the private street providing access to the Subject Property from
Smiley Heights Drive shall be relocated between Lots 6 and 7, with the boundaries of Lot 7 then
relocated southerly toward the tract boundary, as generally depicted on Exhibit A attached hereto
and incorporated herein by this reference. The parties recognize and acknowledge that these
realignments shall result in the elimination of Condition 12 previously made part of the Project
Approvals relating to the maintenance of a twenty (20) foot landscaped setback.
130/021319-0001
251121.08 PM02
-2-
b. The terminus of Lot C shall be extended northerly toward the tract
boundary, as generally depicted on Exhibit A attached hereto and incorporated herein by this
reference.
c. The existing irrigation line situated on the Subject Property serving the
real property northerly of the Subject Property shall be reconstructed and relocated to flow at
grade, as generally depicted on Exhibit A attached hereto and incorporated herein by this
reference, subject to review and approval by the West Redlands Water Company, which is not a
party to this Agreement. Additionally, it is understood that the irrigation line serves as a main
line for West Redlands Water Company, and that the line also serves properties other than the
Cunningham Property. The parties understand that West Redlands Water Company may require
full unrestricted access to the line for maintenance and repair, and that a separate easement may
need to be negotiated by Miko with West Redlands Water Company in connection with the
development process for the Subject Property.
d. Condition 10 previously made part of the Project Approvals relating to the
maintenance and preservation of an arroyo area shall be clarified to ensure that its landscaping is
maintained In this regard, the CC&Rs for the project shall designate Walter Johnson (and his
successors and assigns), the'oowner of the adjoin r'g real property, as a beneficiary for purposes of
the maintenance obligations and the enforcement thereof. In reciprocity, Mr. Johnson (and his
successors and assigns) shall agree to maintain to the same standard the landscaping in the
portion of the arroyo area situated on his property, and Miko (and his successors and assigns)
shall be designated as a beneficiary for purposes of such maintenance obligation and the
enforcement thereof.
130/021319-0001
251121.08 PM02
-3-
3. The City agrees to waives all filing and processing fees associated with the
revisions to the Project Approvals described above in Section 2.
4. With respect to the extension of Lot C described above in Section 2.b, Miko
agrees to convey to William E Cunningham and Beverley R. Cunningham (the
"Cunninghams"), the owners of the real property northerly of the Subject Property (the
"Cunningham Property"), or their successors and assigns, an easement for access purposes in the
event that the Cunningham Property, or a portion thereof, hereafter is approved by the City for
residential development not to exceed four (4) dwelling units taking access to or from Lot C. In
such event, Miko agrees to cause the recordation of an appropriate easement deed, in a form
satisfactory to the Cunninghams or their successors and assigns (see Exhibit B attached hereto),
prior to or concurrent with the recordation of the final map for the approved subdivision.
a. Prior to any City approval of such development, Lot C shall be a cul-de-
sac terminating within the tract boundary, as generally depicted in Exhibit A attached hereto and
incorporated by this reference, and the Cunninghams or their successors and assigns shall not
have any right to use Lot C for regular access purposes. Miko agrees that the City shall be
provided access across Lot C for emergency purposes involving the Cunningham Property.
b. In the event the City approves such development, the cul-de-sac at the
teiuiinus of Lot C shall, at the sole cost and expense of the Cunninghams or their successors and
assigns, be removed, replaced with the alignment generally depicted in Exhibit A attached hereto
and incorporated herein by this reference, and extended to the Cunningham Property.
c. In the event the City approves such development, the Cunninghams or
their successors and assigns shall pay to Miko a sum equal to the percentage of the total
depreciated cost and expense of planning, designing, engineering, and constructing Lot C
130/021319-0001
251121.08 PM02
-4-
represented by the number of residential lots on that portion of the Cunningham Property
accessed by Lot C divided by the number of residential lots on both the Subject Property and
those taking access to or from the Cunningham Property via Lot C. (For example, if seven (7)
residential lots are created on the Subject Property and three (3) residential lots are created on the
portion of the Cunningham Property that take access to or from Lot C, then the Cunninghams or
their successors and assigns shall be responsible for thirty percent (30%) of the depreciated cost
and expense.) Such sum shall be due and payable to Miko within twenty (20) business days
following the recordation of a subdivision map for the Cunningham Property.
d. In the event the City approves such development. and should Lot C as
extended remain a private street, then the Cunninghams or their successors and assigns shall
thereafter be responsible for a percentage of the subsequent costs and expenses associated with
maintenance, repair, and/or reconstruction of the street and similar improvements situated within
the Subject Property in accordance with the percentage set forth above in Section 4.c.
5. RID, on behalf of itself and its members (including but not limited to the
signatories below), agrees not to oppose and to support the revisions to the Project Approvals
described above in Section 2.
6. In the event that the City Council approves the revisions to, the Project Approvals
described above in Section 2, RID, on behalf of itself and its members (including but not limited
to the signatories below), agrees (a) not to file any legal action challenging such revisions, and
(b) not to encourage, finance or otherwise participate in or support any such legal action. In any
event, this Agreement shall be terminated and be of no further force and effect in the event of
any legal action challenging any City -approved revisions to the Project Approvals, in which case
Miko reserves the right to withdraw the application for the revisions.
130/021319-0001
251121.08 PM02
7. Concurrently with the execution of this Agreement, and subject to the approval of
the Court, the parties agree to hold the Action in abeyance while Miko's application for a revised
tract map is being processed. In the event that the City Council approves a revised tentative tract
map in substantial conformance with the terms and conditions set forth in Section 2 of this
Agreement, then RID, within five (5) business days of the City Council's approval, shall file a
Request for Dismissal, dismissing the entire Action with prejudice.. In the event that the City
Council fails to approve a revised tentative tract map in substantial conformance with the terms
and conditions set forth in Section 2 of this Agreement, or in the event Miko determines to
withdraw the application for a revised tentative tract map, then RID reserves the right to proceed
with the Action.
8. This Agreement is and shall be binding upon and shall inure to the benefit of the
predecessors, successors, parents, subsidiaries, affiliates, associates, representatives, assigns,
directors, officers, agents, attorneys, and employees of each party.
9. In executing this Agreement, the parties acknowledge that they have consulted
with and had the advice of attorneys of their own choice duly licensed to practice law in all
California courts, and that they have executed this Agreement after independent investigation
and without fraud, duress or undue influence. All parties acknowledge that they have waived
certain rights in this Agreement and, in consultation with counsel of their own choice, have
consciously and voluntarily have given an informed waiver those rights by entering into this
Agreement.
10. Each of the parties agree that upon the City Council's approval of a revised
tentative tract map in substantial conformance with the teitris and conditions set forth in Section
2 of this Agreement, and RTD's filing of a Request for Dismissal as provided in Section 7, the
130/021319-0001
251121.08 PM02
-6-
other parties shall be released from any and all claims, demands, causes of action, rights, liens,
losses, damages, obligations, and liabilities of any kind or character, whatsoever (whether
known, unknown, or suspected or not suspected), at law or in equity or otherwise, which either
party may now have or claim to have or to have acquired, against any released party, by reason
of any matter, thing, event, condition, fact, circumstance or transaction relating to the Action.
11. In connection with such release, each of the parties expressly waives and
relinquishes all the rights and benefits which it might otherwise have or claim to have under the
provisions of Civil Code section 1542, which provides as follows:
"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."
12. This Agreement may be executed in counterparts with each party executing a
separate, but identical, copy.
13. Each of the parties hereto represents and warrants that it has not assigned or
otherwise transferred (voluntarily, involuntarily or by operation of law) any right, title or interest
in any claim which it has, may have, or may have had which is the subject of this Agreement
except as described herein. Each of the parties hereto agrees to defend, indemnify, save and hold
forever harmless the entities and persons released by such party under this Agreement from any
claims, liabilities, demands, damages, costs and expenses, including attorneys' fees, incurred as a
result of any person or entity asserting any such claim pursuant to such assignment or transfer. It
is the intention of the parties hereto that this indemnity does not require payment as a condition
precedent to recovery.
130/021319-0001
251121.08 PM02
-7-
14. Each of the parties hereto understands and acknowledges that this Agreement and
the consideration transferred hereunder are being made solely for the purpose of avoiding the
expense and the inconvenience of further litigation and it shall not be construed as an admission
of any wrongful conduct or liability whatsoever.
15. No promise or inducement of any nature has been made other than those set forth
in this Agreement. This Agreement constitutes the entire agreement between the parties with
respect to the subject matter hereof. This Agreement may not be amended or modified except by
a written instrument executed by all of the parties hereto.
16. Each of the parties hereto agrees to promptly prepare and execute all documents
and pleadings necessary to consummate the settlement set forth in this Agreement.
17. Each of the parties hereto executing this Agreement represent and warrant that
he/she is authorized and empowered to execute this Agreement individually or in any capacity
set forth in this Agreement.
18. Each of the parties hereto shall bear all of their own costs, expenses and attorneys'
fees incurred in connection with the Action, the claims settled by this Agreement, and the
preparation of this Agreement.
19. This Agreement has been negotiated at arms' length between persons
knowledgeable in the matter dealt with herein. In addition, each party has been represented by
experienced and knowledgeable legal counsel. Accordingly, any rule of law, including but not
limited to, Section 1654 of the California Civil Code or any legal decision that would require
interpretation of any ambiguities in this agreement against the parties that drafted it, is of no
application and is hereby expressly waived. The provisions of this Agreement shall be
interpreted in a reasonable manner to effect the intentions of the parties and of this Agreement.
130/021319-0001
251121.08 PM02
-8-
20. The validity of this Agreement and of any of its terms or provisions, as well as the
rights and duties of the parties hereunder, shall be governed by the laws of the State of
California.
21. If any provision of this Agreement is found, detennined and/or adjudicated to be
illegal, invalid or unenforceable, then the same shall in no way affect the legality, validity, or
enforceability of any other provision of this Agreement.
NOW, THEREFORE, the parties hereto have signed this Agreement as of the date first
hereinabove set forth.
REDLANDERS FOR INFORMED DEVELOPMENT
By
By
'seer Mohr
alter Johnson
CITY OF REDLANDS and CITY COUNCIL OF THE CITY OF REDLANDS
By: --71/1"
7
Attest:
Mayor
130/021319-0001
251121.08 PM02
-9-
08/01/2002 10:22 FAX 909 788 5785 BUREE,WILLIAMS,SORENSEN
ia002
PElER A. MIKO
By:
Peter A. Miko
approved as to form:
Burke, Williams & Sorensen
Attorneys for Petitioner/P. laintiff
Redlanders for informed Development
Daniel J. McHugh
City Attorney, City of Redlands
.Attorney for Respondents/Defendants
City of Redlands and City Council of the City of Redland
Philip D. Kohn
Rutan & Tucker, LLP
Attorneys for Real Party in interest
Peter A. Miko
1301021319-0001
251121.07 AlL102
-10-
08/01/2002 10:25 FAX 909 788 5785
uvul-uc luwal rm.-ruin' laAkR,LLF
BURKE , I LI, _AMS , SORENSEN a 004
714-54E-3035 T- P.02/62 F-726
PETER. A. MIECO
By:
Peter A. I'vrOto
aipproviali ass to zis;' srrst;
Burkt:Wilian & Sorensen
Astarneys for Pztitictr4=-Cilaintiff
Redlaaders far Informed lacycicipricat
Daztiel J. McHugh.
City Attorney, CO of 144414n43
Attorney far TcespontlenrsineforKiantg
Cit ofRe lands d City Council or the City- of RerThind
PhiJjr Kant
Rutan & Tucker, LIP
Attorneys for Real Puny i.rt luterest
Perk Mko
I ZOiatil
44411
-10-
Received !Lug -DI -CZ OS:04:01 Frete-5a5 9E5 0E65
Tu-RUTAN 4 TtCAIR.LLF Page gl
RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
William E. and Beverley R. Cunningham
421 San Timoteo Canyon Road
Redlands, CA 92373
(Space Above This Line for Recorder's Office Use Only)
EASEMENT AGREEMENT
THIS EASEMENT AGREEMENT ("Agreement") is entered into this day of
, 2002, by and between THE CHII-SMAN IRREVOCABLE FAMILY TRUST
("Grantor"), and WILLIAM AND BEVERLY CUNNINGHAM., a married couple
(collectively, "Grantee").
RECITALS
A. The Trust, for which Grantor serves as a Trustee, owns fee title to a certain
28.72 acre parcel located in the City of Redlands, County of San Bernardino, State of
California legally described as Tract No. 16042 pursuant to the map recorded in the official
records of the County of San Bernardino, California, on in Book
pages(s) (the "Trust Property").
B. Grantee owns in fee title that certain real property located adjacent to the Trust
Property commonly known as 421 San Timoteo Canyon Road, City of Redlands, County of
San Bernardino, State of California, the legal description for which is set forth in Exhibit "A"
attached hereto_(the "Cunningham Property").
C. A private road identified as "Lot C" in the map attached hereto and
incorporated herein by this reference as Exhibit `B" is located entirely on the Trust Property
and provides access to a public right-of-way commonly known as Smiley Heights Drive. In
consideration for the settlement of claims by and between Redlanders for Infoiuied
Development, the City of Redlands, the City Council of Redlands, and Peter Miko and
pursuant to the teams of the "Settlement Agreement and Mutual Release" dated
, Grantor intends to grant to Grantee (their successors and
assigns) a non-exclusive easement over and across Lot C for the purposes of ingress, egress,
and access to the Cunningham Property in the event of an approved subdivision of the
Cunningham Property, or a portion thereof, for four (4) or fewer residential units taking
access to or from Lot C.
NOW, THEREFORE, for good and valuable consideration, the receipt of which
is hereby acknowledged, the parties hereby agree as follows:
1068/021319-0001
285935.06 PM02
1. Access Easement. Pursuant to the recordation of the final map for the duly -
approved subdivision of the Cunningham Property into not more than four (4) residential
units taking access to or from Lot C, Grantor agrees to convey to Grantee and their
respective agents, employees, invitees, tenants, successors and assigns, an easement for the
purposes of ingress, egress, and access over and across Lot C (the "Access Easement"). The
Access Easement shall become effective upon the recordanon of the final map for said
subdivision subject to the following conditions -
(a) Extension of Lot C: Upon the approval of the City of Redlands of the
subdivision of the Cunningham Property, or portion thereof, into not more
than four (4) residential units taking access to or from Lot C, and the
recordation of the final map therefor, the cul-de-sac at the terminus of Lot C
may, at the sole cost and expense of the Grantee or their respective successors
and assigns, be removed and replaced with the alignment generally depicted in
Exhibit "C" attached hereto and incorporated herein by this reference, and
extended to the Cunningham Property for those units talmng access to or form
Lot C.
(b) Payment for Depreciated Costs; Expenses: Upon the approval of the
City of Redlands of the subdivision of the Cunningham Property, or portion
thereof, into not more than four (4) residential units taking access to or from
Lot C, the recordation of the final map therefor, and the election of Grantee or
their respective successors and assigns to extend Lot C as described above,
Grantee or their successors and assigns shall pay to Grantor (or it successors
and assigns) a sum equal to the percentage of the total depreciated cost and
expense of planning, designing, engineering, and constructing Lot C
represented by the number of residential lots on that portion of the
Cunningham Property accessed by Lot C divided by the number of residential
lots on both the Trust Property and those taking access to or from the
Cunningham Property via Lot C. (For example, if seven (7) residential lots are
created on the Trust Property and three (3) residential lots are created on the
Cunningham Property, then Grantee or their respective agents, employees,
invitees and tenants, successors and assigns, shall be responsible for thirty
percent (30%) of the depreciated cost and expense.) Such sum shall be due
and payable to Grantor within twenty (20) business days following the
recordation of an applicable subdivision map for the Cunningham Property.
(c) )'nor to Final Map Recordation; No General Access Easement:
Grantee and their respective successors and assigns shall not have any right to
use Lot C for regular access purposes anytime prior to the approval and
recordation of a final map for the subdivision of four (4) or fewer residential
units upon the Cunningham Property as described above.
(d) No Parking Easement: Nothing contained in this Agreement shall
entitle the Grantee (or its successors, assigns employees, agents, licensees, or
1 ODV 2 t 319-0001
285935.06 aOt us!U2
-2-
invitees) to park any vehicles on Lot C or any other portion of the Trust
Property.
(e) Further Subdivision. Upon the approval by the City of Redlands of a
subdivision of the Cunningham Property, or a portion thereof, into not more
than four (4) residential units taking access to or from Lot C, Grantee (or their
successors and assigns) shall not thereafter further subdivide the Property in
any manner that will result in the creation of more than a total of four (4)
residential units upon the Cunningham Property taking access to or from Lot
C.
(f) Maintenance Costs: Upon the approval of the City of Redlands of the
subdivision of the Cunningham Property, or a portion thereof, into not more
than four (4) residential units taking access to or from Lot C, the recordation
of the final map therefor, and the election of Grantee or their respective
successors and assigns to extend Lot C as described above, Lot C as extended
shall remain a private street, and Grantee (or its successors and assigns) shall
thereafter be responsible for a percentage of the subsequent costs and expenses
associated with maintenance, repair, and/or reconstruction of Lot C in
accordance with the formula set forth above in paragraph (b).
2. Indemnity Grantee (and its successors and assigns) hereby agrees to
indemnify, protect, save, defend and hold Grantor (and it successors and assigns) hatiiiless
from any and all loss, damage, liability or expense, including court costs and reasonable
attorneys' fees, which Grantor may sustain, incur or become liable for, including loss of or
damage to property or injury to or death of persons and fines arising in any manner out of or
in connection with (i) the use of the Access Easement by Grantee (or their successors,
assigns, employees, officers, agents, licensees, or invitees); or (ii) the negligence or willful
misconduct of Grantee (or their successors, assigns, employees, officers, agents, licensees, or
invitees) in, on, or about the Access Easement.
3. Priority of Agreement. This Access Easement shall be subject to (i) all general
and special real property taxes, assessments and bonds, not delinquent; and (ii) all covenants,
conditions, restrictions, reservations, rights, rights of way, easements and other matters of
record, existing as of the date this Agreement is recorded in the San Bernardino County
Recorder's Office.
4. Breach Does Not Invalidate Mortgage. Breach of the Access Easement shall
not defeat or render invalid the lien of any mortgage or deed of trust made in good faith and
for value as to the Trust Property, or any part thereof or interest therein, whether or not said
mortgage or deed of trust is subordinated to this Agreement; but, unless otherwise herein
provided, the terms, conditions, covenants, restrictions and reservations of this Agreement
shall be binding and effective against the holder of any such mortgage or deed of trust and
any owner of the Trust Property or any part thereof whose title thereto is acquired by
foreclosure, trustee's sale, or otherwise.
1068/021319-0001
285935.06 PM02
-3-
1068/021319-0001
285935.06 PM02
EXHIBIT "A"
LEGAL DESCRIPTION OF CUNNINGHAM PROPERTY
EXHIBIT "C"
TO EASEMENT AGREEMENT
EXHIBIT "C"
DEPICTION OF PROPOSED EXTENSION OF LOT C UPON APPROVAL OF THE
CUNNNGHAM PROPERTY SUBDIVISION
1068/021319-0001
285935.06 PMO2
-3-