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HomeMy WebLinkAboutPA2004-169_CORRESPONDENCECITY OF NEWPORT BEACH COMMUNITY DEVELOPMENT DEPARTMENT Planning Division August 26, 2011 Carol Mentor McDermott Government Solutions, Inc. 1 San Joaquin Plaza, Suite 230 Newport Beach, CA 92660 RE• Santa Barbara Condos — 900 Newport Center Drive, Newport Beach Substantial Conformance Determination Dear Ms. McDermott. On June 30, 2011, the City of Newport Beach Development Review Committee (DRC) considered a request made by Government Solution, on behalf of The New Home Company, for minor changes to the site plan and elevations that were approved by the City Council in January 2006, for the development of 79 condominiums known as the Santa Barbara Project located at 900 Newport Center Drive, in Fashion Island The minor changes are necessary as a result of 1) an agreement with the Newport Beach Country Club, and 2) minor changes necessitated by the new ownership. The proposed modifications include the following: • Project to be built in two phases: 26 units with commensurate parking in Phase I and 53 units with commensurate parking in Phase II. • Elimination of the westerly driveway entrance to the parking garage. • A slightly revised configuration of the main entrance to accommodate improved dual access into the subterranean parking with a minor shifting of the driveway to the west. • Revisions to the grading plan to accommodate the improved entry drive access, to address the proposed phases and provide for temporary use of the Phase 2 site for a modular sales office utilizing a portion of the existing on -site parking There will be a reduction in the amount of material exported from the site of approximately 9000 cubic yards. There will be no construction of any units on the Phase 2 portion of the site during Phase 1. 3300 Newport Boulevard • Post Office Box 1768 • Newport Beach, California 92658-8915 Telephone: (949) 644-3200 • Fax: (949) 644-3229 • www.newportbeachca.gov/planning Carol Mentor McDern.,utt Government Solutions, Inc. Page 2 ® Adjustment of the most westerly building (Building 3) with a slight move to the west, slight shifts and adjustments on the other.. buildings to accommodate minor revisions to the unit floor plans and modification of the subterranean parking to combine the .two structures into one parking structure with two access points from the main entry. The subterranean parking will be constructed in two phases. ® An enhanced open space/recreation area between Buildings 2 and 3. ® Improved on -site pedestrian circulation. ® Deletion of all external catwalk structures and the provision of shared elevators providing direct access between the subterranean garage and the units. ® Minor revisions to exterior elevations. The DRC found the proposed modifications are minor; do not affect the overall project design, building placement and height, development intensity, traffic and pedestrian circulation and therefore, determined the site plan is in substantial conformance with the original approval. Sincerely, R.salinh M. Ung A sociate Planner Substantial Conformance Request Santa Barbara Condos (9Oo Santa Barbara) (PA 2004-169) August 16, 2011 On behalf of the new purchaser of the tennis courts site adjacent to the Newport Beach Marriott, a determination of Substantial Conformance is being requested for minor revisions to the site plan as approved by the City Council in January, 2006, and the CDP as approved by the California Coastal Commission on September 5, 2007 with subsequent extensions through September 5, 2011. A further extension of the CDP will be requested of the Coastal Commission prior to the expiration in September. The project is an approved 79-condo project located at 90o Santa Barbara, Newport Beach on the site of the Newport Beach Marriott Tennis Courts. (PA2oo4-169) The proposed changes were reviewed by the DRC on June 30, 2011 and subsequent meetings have been held with both Traffic and Fire Departments. The minor changes are a necessary as a result of 1) an agreement with the developer and the Newport Beach Country Club, 2) minor changes necessitated by new ownership and 3) response to City staff requests. The support for the revisions from Fire and Traffic has been documented in memos directed to Rosalinh Ung. Minor project changes include the following: Project to be built in two phases• 26 units with commensurate parking in Phase I and 53 units with commensurate parking in Phase II Elimination of the westerly driveway entrance to the parking garage A slightly revised configuration of the main entrance to accommodate improved dual access into the subterranean parking with a minor shifting of the driveway to the west Revisions to the grading plan to accommodate the improved entry drive access, to address the proposed phases and provide for temporary use of the Phase 2 site for a modular sales office utilizing a portion of the existing on -site parking. There will be a reduction in the amount of material exported from the site of approximately 900o cubic yards There will be no construction of any units on the Phase 2 portion of the site during Phase 1. Adjustment of the most westerly building (Building 3) with a slight move to the west, slight shifts and adjustments on the other buildings to accommodate minor revisions to the unit floor plans and modification of the subterranean parking to combine the two structures into one parking structure with two access points from the main entry. The subterranean parking will be constructed in two phases as well. An enhanced open space/recreation area between Buildings 2 and 3 Improved on -site pedestrian circulation Deletion of all external catwalk structures and the provision of shared elevators providing direct access between the subterranean garage and the units Minor revisions to exterior elevations The plans confirm that the building heights are in substantial conformance with the previous approval and do not exceed the 65 height limit (see attached description of height calculations), the FAR will not exceed 1.9 and the changes are in conformance with the CDP as approved by the Coastal Commission. Ung, Rosalinh From: Brine, Tony Sent: Thursday, August 18, 2011 8:12 PM To: Ung, Rosalinh Cc: 'Carol McDermott'; Keely, David Subject: RE: Santa Barbara Condos - Garage Layouts Rosalinh; With the revisions, the project is in substantial conformance. Tony From: Chris Hoover [mailto:choover@mve-architects.com] Sent: Thursday, August 04, 2011 2:11 PM To: Keely, David; Brine, Tony Cc: Carol McDermott; Jean Pitts; Darin Schoolmeester Subject: RE: Santa Barbara Condos - Garage Layouts Dave, I have added the 5' dimension before the gated parking area to the garage plan per your comment. Please let me know if you have any questions. Thank you Chris Hoover Associate MVE & Partners, Inc. I Architecture + Planning + Interiors Irvine + Oakland + Honolulu 1900 Main Street, Suite 800 I Irvine, California 92614-7318 I T 949.809.3388 I www.mve-architects.com kE/7443 Please consider the environment before printing this email and/or any attachments From: Keely, David fmailto: DKeelv@newoortbeachca.govj Sent: Wednesday, August 03 2011 1:08 PM To: Chris Hoover; Brine, Tony Cc: Carol McDermott; Jean Pitts; Darin Schoolmeester Subject: RE: Santa Barbara Condos - Garage Layouts Chris, The only minor comment that I have regarding the plans provided last week is the 5 foot hammerhead area shall be provided prior to the gated parking area. See the attached pdf which includes my comments. Other than that the plans address our previous comments. Thanks Dave Keely 1 From: Chris Hoover Jmailto:choover@mve-architects.coml Sent: Tuesday, July 26, 2011 4:50 PM To: Keely, David; Brine, Tony Cc: Carol McDermott; Jean Pitts; Darin Schoolmeester Subject: Santa Barbara Condos - Garage Layouts David and Tony, Per your request, we have made the following revisions to the conceptual parking garage layout plans for the Santa Barbara Condominium project. • Aligned the two vehicular garage entries with each other • Provided space for the minimum turning requirements for a car turning right from the entry drive into the garage • Removed islands at the security gate areas • Provided and dimensioned 5' minimum turnaround areas at all dead end areas in the parking garage Please find the attached PDF showing the revised conceptual drawing. Let us know if you have any questions regarding the drawings. Thank you. Chris Hoover Associate MVE & Partners, Inc. I Architecture + Planning + Interiors Irvine + Oakland + Honolulu 1900 Main Street, Suite 800 Irvine, California 92614-7318 ( T 949.809.3388 I www.mve-architects.com IA Please consider the environment before printing this email and/or any attachments 2 Ung, Rosalinh From: Gamble, Ron Sent: Monday, August 22, 2011 8:08 AM To: Ung, Rosalinh Cc: David Oatis; 'Carol McDermott'; Stephen Jordan; Guzzetta, Susan Subject: Updated Santa Barbara Condominiums Project substantial conformance Good Morning Rosalinh, As a follow up to the DRC meeting on June 30, 2011, I met with representatives of the New Home Company and David Oatis of Fire Safe Planning Solutions, regarding the Santa Barbara Condominium project located next to the Newport Beach Marriott. 1 reviewed the previous plans, comments made by previous Fire Marshal Steve Bunting in 2008, and the responses prepared by Fire Safe Planning Solutions, the applicant and their architect. I find their request to be in substantial conformance with the previous approval by the Planning Commission and City Council. Note for the record, the Fire Department will require and the applicant has agreed to the following when the construction drawings for the project go through plan check: 1. An NFPA Full 13 automatic fire sprinkler system will be installed throughout the project. 2. Access gates to the rear of the building (along the golf course) will be provided for fire department and maintenance access use only. 3. Remote fire department connections will be strategically placed along the fire access roadway. 4. Way finding signage will be provided at the rear of the building access gates. 5. 5' wide fire access walkways will be provided at the rear of the building with designated fire department ground ladder access points. No residential access will be allowed on this walkway. 6. Way finding signage will also be provided throughout the project for direction to units. 7. Additional 2-hour fire barrier separation walls will be provided to isolate the building and. prevent the spread of fire. 8. Class 1 wet standpipes will be provided along the rear of the building along the golf course and be spaced a maximum of 150' apart. 9. All elevators will be able to accommodate emergency gurneys with a 3,500 lb capacity. 10. A fire department information room will be provided which will contain building floor plans, electrical plans, fire sprinkler plans, alarm panels and building keys. 11. The main access turnaround shall meet the NBFD guidelines for emergency access. 12. Fire Department shall have input on building addressing. 1 13. Other code requirements, in addition to those listed, may apply when plans are submitted. Let me know if you have any questions, Ron Gamble Newport Beach Fire Division Chief/Fire Marshal Safety, Service & Professionalism RECEIMAFTER AGENDA PRINTED:" 1-JD -06 '06 %i -) :19 HAND DELIVERED January 5, 2006 Don Webb, Mayor City of Newport Beach 3300 Newport Blvd. Newport Beach, CA 92663-3884 Re: Lennar Homes of California, Inc.("Lennar"): Proposed Santa Barbara Condominium Project Dear Mayor Webb: As you may know, Lennar has proposed a residential condominium project adjacent to the Newport Beach Country Club. The Newport Beach Country Club, Inc. ("NBCC") is the ground lessee of the real property on which the golf club operates. The purpose of this letter is to apprise you of communications between NBCC and Lennar regarding their Project. As set forth in the attachments, on November 29, 2005, representatives of Lennar and NBCC met to review the Project and to discuss NBCC's concerns regarding safety and aesthetics. That meeting was followed by an exchange of correspondence regarding these issues and the parties respective positions. Copies of letters from NBCC to Lennar dated December 6, 2005 and December 28, 2005 are attached hereto for your information. The parties were to have met on January 5, 2006 to further discuss their respective positions, but that meeting has been cancelled by Lennar. While it is NBCC's hope that the issues set forth in the attached correspondence will be addressed by Lennar and resolved to the mutual satisfaction of NBCC and Lennar, please be advised that for the reasons set forth in the attached correspondence NBCC presently opposes the Project as NEWPORT BEACH (: ) (' N T It I" C I. r 1600 East Pacific Coast Highway • Newport Beach, California 92660 • (949) 6119550 • Fax (949) 644 5057 Mtn: // vww..newoortbeachcc.com Page Two To: Mayor Don Webb currently planned. Should further meetings and/or discussions between Lennar and NBCC cause NBCC to alter this position, I will be notifying you in writing. Sincerely, Jerry Anderson President Enclosures C: David Wooten, CEO Jerry Johnson, CFO CHRISTIAN F. DURIA, JR. WRITER'S E-MAIL ADDRESS cdubia@detrlaw.com DUBIA, ERICKSON, TENERELLI & RUSSO, LLP ATTORNEYS AT LAW 2 PARK PLAZA, SUITE 300 IRVINE, CALIFORNIA 92614.8513 TELEPHONE: (949) 955-1177 FACSIMILE: (949) 833.2067 rrw.detrlaw.com OUR FILENO 16001.00 December 6, 2005 Renetta A Caya, Esq. Palmieri, Tyler, Wiener, Wilhem & Waldron, LLP 2603 Main Street, Suite 1300 Irvine, California 92614-6228 Re: The Newport Beach Country Club and Lennar Homes Dear Renetta: On behalf of Dave Wooten, Jerry Johnson, Jerry Anderson, Ted Robinson, Jr. and myself thanks again to you and your clients for meeting with us on Tuesday, November 29, 2005 to discuss Lennar Homes' ("Lennar ') proposed residential condominium project in Newport Beach adjacent to The Newport Beach Country Club ("NBCC") At that meeting, Donna Kelly and George Telles presented an overview of the proposed project and Chris Heidrrck reviewed the landscape plan. Dave Wooten reviewed with you the concerns of NBCC regarding safety issues associated with a residential development in such close proximity to the golf course. Specifically, there is a significant risk of harm posed to persons and property from errant golf balls from the golf course. A copy of an article from the Urban Land Institute entitled 'Golf Course Development and Real Estate" by Desmond Muirhead and Guy L. Rando was provided to Ms. Kelly. I have enclosed another copy of that article for your reference. The article discusses the safety issues and design standards for real estate development in proximity to golf courses. Renetta A. Caya, Esq. Palmieri, Tyler, Wiener, Wilhem & Waldron, LLP December 6, 2005 Page 2 The safety issues associated with Lennar's proposed residential project are very serious in the judgment of our golf course architect, Ted Robinson, Jr. Enclosed please find a letter from Ted Robinson, Jr. which summarizes his opinions and conclusions regarding these safety concerns as well as aesthetic issues. At the conclusion of our meeting, Donna Kelly requested that NBCC establish the design parameters and conditions which NBCC believes to be necessary for NBCC to not oppose the proposed development. Those are set forth below: 1. The current plans, presented at our meeting, contemplate a walkway/path along the perimeter of the project and adjacent to the golf course boundary with limited fencing. It was represented that the purpose of the walkway/path was for emergency access of firefighters. NBCC has significant concerns that residents and guests will utilize this walkway and increase their exposure to bodily injury from errant golf balls. NBCC would require that Lennar install fencing at a height of at least five feet to restrict access to the walkway/path to only emergency personnel and to restrict trespassing on NBCC property. 2. The current plans contemplate the construction of patios on the ground level and balconies on the upper levels of the project NBCC would require a redesign that eliminated all outside patios and balconies due to the risks associated with errant golf balls The type of glass installed in the units should be shatter proof and capable of withstanding significant blunt force without breaking. 3. The current plans contemplate an open, public area with a seating area between the first two buildings fronting the golf' course. NBCC would require that this open area be eliminated or landscaped and fenced in such a manner so as to prevent owners and guests from congregating or walking in this area. It is in very close proximity to the No. 2 green and well within the landing area of errant golf balls. 4. NBCC would require that netting be installed along No. 2 fairway/green and along No. 3 fairway in the areas affected by errant golf balls and additional landscaping, including trees, associated with such netting installed to protect against errant golf balls damaging the property or injuring persons at the project. Ted Robinson, Jr. has received a proposal from a netting subcontractor to Renetta A. Caya, Esq. Palmieri, Tyler, Wiener, Wilhem & Waldron, LLP December 6, 2005 Page 3 perform a trajectory study (which will take 3-4 weeks to perform at a cost of $3500) to determine the location and specifications of the required netting. The costs of such netting and landscaping, including consultant fees and studies, would be paid for by Lennar. We will await Lennar's written authorization before we proceed with the trajectory study. 5. To the extent that the course may be modified to reduce the potential for errant golf balls landing on the project, NBCC may consider implementing such modifications to the course to mitigate the risk. The costs associated with any course modification, including any plantings and/or landscaping, would be paid for by Lennar. 6. NBCC will require Lennar to enter into an Indemnity Agreement, in the form attached hereto, which includes a Declaration of Golf Ball Easement, along with the provision of liability insurance coverage. Lennar would be responsible for all costs associated with this Indemnity Agreement and related documents, including reimbursing NBCC for the legal expenses incurred in preparing and finalizing the agreement. In conclusion, as stated by Dave Wooten at our meeting last Tuesday, it is unfortunate that Lennar did not consult with NBCC earlier and prior to going forward with its preliminary plans. The safety issues should have been apparent to Lennar s design consultants. As you may know, NBCC has operated a golf course at its present location for over 50 years. With such an operating history, the likelihood of errant golf balls landing on Lennar's Project is a 100% certainty. Lennar's Project falls squarely within the historical landing area of these errant golf balls. Given the substantial number of rounds of golf played each year it is a certainty that hundreds of golf balls will land in the area of your residential project. Without these design parameters and conditions being met, the risk of serious bodily injury and property damage is unacceptably high. NBCC and its owner, members, guests and invitees should not be subjected to risk of lawsuits by owners, guests or third persons situated at Lennar's Project. Nor should Lennar expose itself or its contractors, subcontractors, vendors, suppliers, consultants or employees to such lawsuits or injuries while visiting or working on the Project. I am sure you would agree that our number one concern should be safety. For that reason NBCC cannot support and will actively oppose your development unless these design parameters and conditions are met. • Renato A. Caya, Esq. Palmieri, Tyler, Wiener, Wilhem & Waldron, LLP December 6, 2005 Page 4 After receipt of Lennar s written authorization and completion of the trajectory study, and review by Ted Robinson, Jr., we will forward additional information to you regarding the location, specifications and costs associated with the netting and associated landscaping. We hope this information satisfies your request. Should you have further questions or wish additional information, please contact me at your convenience. CFD:sd Enclosures 16001.00/cfdcayaltr.doc Very truly yours, Go f Course eVe opment acid Rea Estate Desmond Muirhead and Guy. L. Rando the Urban Land Institute The view from the third floor of the Princess. Hotel in Scottsdale, Arizona, illustrates the course's visual access. Prime Golf and Water Frontage MU Golf Fairway Frontage PA Open Space Golf Access O Interior Lot A A typical diagram used for analyzing real estate premiums. Source: Demand Afuirhead, inc. ferred. This combination provides the preferred length for the golf course with moderate flexibility in operations and maintenance and maximum golf frontage for real estate development. Land use plans that are designed • merely to maximize golf frontage do not necessarily maximize overall real estate values. A number of other factors must be considered when integrating golf and real estate. The single -fairway, returning nines configuration for an 18-hole golf course is ideal for maxi- mizing golf frontage and therefore maximizing the opportunity to en- e hence real estate values. In some cases --a hotel resort or high -density development, for example —where real estate values are enhanced by views of the golf course from a high- rise building rather than actual front - u age, a core course might provide greater advantages. Whatever strategy isusedto place a value on golf -oriented real estate, valuation must consider local market factors. Comparative marketability studies can aid in determining real es- tate values and which pricing strate- gies yield the best results in a particu- lar location. Safety in the Golf Corridor One of the most significant factors to consider in delineating the golf corri- dor is safety. Like many sports, golf is not inherently safe. A well -hit golf ball can reach an initial velocity of 250 feet per second or over 170 miles per hour, and a range of 250 yards or more. The golf ball thus has the poten- tial for greater speed and range than a bullet from a shotgun, and the poten- tial for injury can be considerable. This factor is augmented by the wide range of physical and psychological variables inherent in any golf course and the range of players' abilities. Golf is not easily mastered, and even the most accomplished players can hit a ball poorly. People have been seriously, even fatally, injured by errant golf balls, golf clubs, and golf cars. Being on a golf course during an electrical storm has resulted in many players' be- ing struck by lightning. And the threats are not confined to golfers: pedestri- 47 This relationship between fair vay and lot should be avo ded, because most golfers are right-handed and tend to slice the ball to the right. Source: DesmondMuirhead, ine. Thg preferred relationship between fairway and lot allows holes to "slice" into each other rather than into houses. Source: DesmondMuirhead, lne. ans and motorists walking or driving by a course have been struck by errant .golf balls. Golf, like life, is a challenge with risks. Thus, safety is a critical concern to anyone involved in the de- sign, development, construction, main- tenance, and operation of a golf course, or to anyone charged with responsibil- ity for the safety of people on or near the course, or to anyone who could be injured or suffer damages from golf. To design a totally risk -free, "safe" golf course is impossible, because nu- merous factors simply are beyond the control of the designer: the climate, the weather, the ability and skill of in- dividual players. Even if a list of safety criteria could be determined for the design of a totally "safe" golf course, the cost of building such a course would be prohibitive. It is possible, however, to anticipate a few factors that can present an undue hazard. And it is possible to find economically feasible ways to mitigate the danger. No hard and fast rules can be asso- ciated with safety in golf course design simply because the range of variables from course to course, hole to hole, and even player to player is so vast. The increasing integration of golf courses with adjacent real estate re- sults in conflicts in land use, and safety becomes a greater concern. To- day, all areas of the golf course indus- try, including owners, developers, de- sign professionals, operations and maintenance personnel, managers, material suppliers, equipment manu- facturers, and individual players, must address it. Further, technical ad- vances in the design of golf balls and golf clubs have translated into greater speed and distances, with the atten- dant greater potential for danger from poorly hit balls or slices, hooks, and shanks. All of these factors have influ- enced the way golf courses are designed today, and a prudent developer would keep the following points in mind: • Recognize and understand that land planning and the design of golf courses are intricately related to each other.The potential impact of one on the other can significantly enhance or diminish the value of a golf -oriented real estate development. ■ The developer or its agent is in- volved as a key member in planning and design.The integration of vari- ous disciplines is ultimately the de- veloper's responsibility. • Regular safety reviews are part of the planningprocess.Additional re- views are required after any major change. Safety reviews should be - made part of standard operating procedures, and they should involve all members of the design team. • Recognize that safety is ongoing. In- clude allowances for fine-tuning play of the course in the budget to address any unanticipated issues af- ter the course is put into play. "Golf course safety" is a relative term, requiring judgment based on some mutually agreed criteria. The fol- lowing brief overview summarizes a few basic, common-sense criteria for safety in designing golf courses.' The design standards developed from these criteria or from the consensus of experienced designers and developers serve only as guidelines and must be weighed case by case for specific sites. • Golfers must use reasonable care commensurate with the known haz- ards inherent in the game? ■ Golfers assume reasonable risk.3 • The design of the golf course should reflect standards that do not expose golfers to undue risk.4 ■ The public has a right to free and unmolested use of the highways. Golf balls landing on or across a highway render the owner liable for maintaining a public nuisance that resulted in injuries from the hazard- ous condifion.s • A golf ball in flight beyond the perime- ter of the golf course is the same as 48 an object falling from a structure, and the liability is comparable 6 • A pivotal standard cited in many court cases renders a Liability if the possibility of an accident was clear to the ordinarily prudent eye.? ■ Golf -related restrictions on adjacent private property are justifiable for reasons of safety. It is therefore rea- sonable to restrict the use of private property (building setback lines and so on) adjacent to a golf course. ■ Owners of houses and other real es- tate fronting a golf course assume more risk than the public on a high- way but less risk than golfers. The homeowner's uninformed and un- suspecting guests are not included, however. is Spectators at a golf tournament as- sume more risk than homeowners but less risk than golfers. J Fgal terms like "reasonable care," "reasonable" or "undue" risk, "fore- seeable" hazards, and "ordinarily pru- dent eye" provide criteria for defining and judging safety and for allocating liability. Beyond these legal concepts, however, no measurable design stan- dards can be applied in a blanket for- mula that satisfies legally defined cri- teria for safety. The standard 300-foot through - the -green width that became a rule of thumb in design of a single -fairway layout during the 1960s and 1970s is seriously outdated in terms of current safety concerns. It was rationalized by two concepts: ■ The average golfer who hit a ball poorly (did not follow the ideal path as reflected by the centerline) did not hit the ball as forcefully as pos- sible; therefore, the ball would not travel as fast and as far as it might. • The farther away from the center- line, the less force powering the ball, and therefore the ball will travel even less distance. In the double -fairway layout, the rule of thumb was that, where possible, the parallel centerlines should be no fewer than 200 feet apart. These dimen- sional standards are now outdated, however, with the advent of new tech- nology and new designs for golf equip- ment (particularly golf clubs) to gain more distance and the desire of many golfers to "smack the ball" as far as they can without regard for safety. 457 Saw_ _—. Minimum Sete $oWack wr w 35'BDense Carer Emua,Co SO Iftbrirect&k4Cw. or brwv Outdated 1970s singlefairwaystandards. Courtesy: Patrick Shane Mulligan. The standards of the 1960s and 1970s were coupled with caveats to consider such factors as topography, vegetation, elevation, temperature, hu- midity, wind, location of hazards, and elevated features like tees and greens. They are still critical, but safety is not a cookie -cutter process. Defining pa- rameters for safety on a golf course could be a major issue confronting to- day's golf course developers, and any member of the team could make a de- cision that would directly affect safety. Golf integrated with real estate devel- opment requires the establishment of a team to review every stage of plan- ning and design. The temptation to encroach on the safety perimeter for the golf course to gain frontage for real estate, enhance real estate values, or economize on the golf course is al- ways considerable, and it is height- ened by the fact that contemporary golf courses require substantially larger areas of land to accommodate safety in an age of high-tech equip- ment. Golf course architects and land planners must work with the develop- ment team to resolve the problems in- volved in siting a golf course next to real estate. The professional expertise, knowledge, and experience of every member of the design team must be applied toward ensuring that the pub- lic is not exposed to undue risk. In a society prone to litigation, it is in the best interests of any development pro- ject to establish the best standards and criteria for safety. Because design and construction often span long peri- ods of time, the intent of the design` and safety considerations developed during the planning process should be carefully documented to ensure that it is not compromised by later decisions. The Safety Perimeter Defining the safety corridor for a golf course is not necessarily synonymous with establishing the boundary of the golf course, although the two can be related. The following definitions are used in this text. The golf course boundary is the legal description of the property boundary for that area of land dedicated to the golf course and its facilities. If the operation were to be sold, this legal description would be used to describe the property in the sales documents. The golf course safety corridor is that area of land re- quired to play the game plus the area of land that can be affected or threat- ened by golfing such that limits are placed on the use of that area. For ex- ample, the golf course safety corridor might include the area within the golf course boundary plus an area around that boundary where construction of any buildings is restricted (often called a building setback line or build- ing restriction line). The restrictions on use within the setback area must be clearly stated in legal documents ( (covenants, for example) describing the affected properties. Largely because of legal implica- tions, professionals and their atten- dant organizations have been reluc- tant to adopt any specific written criteria for golf course safety corri- dors. The official approach of the American Society of Golf Course Ar- chitects (ASGCA) is verbal and very general, and strongly emphasizes site - specific criteria. The prudent course of action is to contract with an experi- enced, reputable golf course architect early during the planning process. The following dimensions for the golf course safety corridor are provided solely to illustrate this discussion; they are not to be applied arbitrarily. The dimensions are based on an unre- stricted flat site, and they must be ad- justed to accommodate site -specific features like topography, vegetation, and elevation. Applicable local building and land use regulations could pre - elude the use of any dimension used in the illustrations, and this informa- tion is not a substitute for consultation 49 1501 Mlnlmum clearance between the green and the next tee. Minimum clearance between adjacent tees and greens. Building Setback Line Minimum dimensions for a single -fairway golf corridor. .......... Minimum dimenslons for a double -fairway golf corridor. Minimum safety guidelines for a windless site on flat topography. Other conditions re- quire additional clearances. - - Source: Nicklaus Design. with a qualified, experienced golf course architect. ■ Minimum horizontal clearance be- tween the green and the next tee is 150 feet. If the adjacent green and tees are separated by a change in elevation, the distance might be greater or less. ■ Minimum clearance between adja- cent tees and greens is 150 feet. ■ Adjacent landing areas should be no less than 200 to 250 feet apart (from centerline to centerline). ■ The centerline of a golf hole should be no less than 150 feet from any road right-of-way or boundary. ■ The centerline of a golf hole should be no less than 175 feet from any boundary with adjacent develop- ment. A setback of no less than 35 feet from the boundary line should also be added. ■ The minimum safety corridor for a single -fairway course with develop- ment on both sides of the fairway is 420 feet between any building in the landing and greens areas. The mini- mum safety corridor for a course with surrounding development in other than the landing and greens areas is 370 feet, which allows for a 300-foot corridor with 35-foot building setbacks on either side. ■ On a double -fairway course, the cen- terlines of parallel fairways should be no less than 200 to 225 feet apart in wooded areas (where vegetation is present between the fairways) and no less than 250 feet apart in open areas (no buffering vegetation be- tween fairways). Adding a mini- mum of 150 feet from each center- line to the property line yields a minimum corridor of 500 to 550 feet for a double -fairway course. If the course is surrounded by develop- ment, a building setback of 35 feet from the property line on either side yields a total minimum safety corri- dor of 570 to 620 feet. The safety corridor can be narrower in the area between the green and the next tee — approximately 400 feet (a 100-foot buffer off the center point of the tee, a 150-foot minimum on the green's centerline, and 150 feet between the green and the next tee).8 50 • ROBINSON GOLF, INC. 361 FOREST AVENUE, SUITE LAGUNA BEACH, CA 92651 TELEPHONE (949) 376-7002 FASCIMILE (949) 376-7029 December 1, 2005 Mr. Jerry Anderson Newport Beach Country Club 1600 East Pacific Coast Highway Newport Beach, CA 92660 Re: Meeting with Lennar Dear Jerry, In an effort to follow up on the recent meeting with Lennar, I thought I'd write for the purpose of sharing some general observations. Overall, I believethere are two main issues with the development as presently proposed: safety and aesthetics. I will consider each of these topics separately. Safety The principal issue with the proposed development is safety. Newport Beach Country Club was built over fifty years ago, well before today's safety guidelines were quantified. Despite equipment changes, it has continued to operate safely as a result of' its focus on minimizing the potential of someone being hit by an errant golf ball. However, the Lennar proposal will place a greater number of people at risk due to its close proximity to the golf course. At the number two green, the edge of the building is only 90 feet off center line, Less than half the 210 foot recommended setback in most similar situations. Buildings along the third fairway also do not meet current setback requirements. As such, it is inevitable the structures will be repeatedly hit by errant golf balls on a regular basis. Of course, the.buildings are not the real issue —a golf ball hitting concrete and steel is a nuisance, but does not cause injury. I'he real issues are the pathways running along the golf course, the open balconies facing the golf course, and the outdoor use of the central patio area, _Each of these areas invites people to use and congregate in areas of a known hazard. Lennar asked if there weren't ways of moderating those risks through design change. Certainly, I would agree that fencing the pathway, eliminating the balconies and changing the use of the patio area will help, but are not in and of themselves, sufficient to fully mitigate the hazard. The glass would have to be shatter proof, the fences high enough to discourage access, and the maintenance of the common area adjacent to the Lennar Meeting December 1, 2005 Page 2 course assumed by the club to insure only its people are working in those areas. Even then, the hardened surfaces of the buildings will cause the ball to ricochet into other areas of the project in unpredictable ways. I do not believe there is any ability to fully eliminate the risk of golf balls entering the site other than by fencing. Aesthetics Although not nearly as important as safety, aesthetics are also a concern. The four story buildings located along the third fairway will create a rather imposing mass — at almost 60 feet, their position 20 feet above the fairway will feel like an eightstory building directly next to anyone playing the hole. However the three story building next to the second green is of greater concern. Given its location 90 feet off centerline and the fact it angles into the green, the building cannot help but create an overwhelmingly intrusive impact on the hole. While plantings might mute the impact a little, I cannot help but feel the hole will seem squeezed and very uncomfortable under any circumstance. All of these buildings are simply too large and too close — they cannot avoid visually degrading the experience of playing the holes. Another factor you should consider is the fact this development will make the golf course easier to play. At the moment, any ball hit to the right is out of bounds and lost to play. With construction of the buildings, many of the balls hit to the right will ricochet back into the fairway, a new version of pinball golf. Obviously, that situation is less than desirable and further warrants the need to fence and/or landscape the perimeter. As to the issue of fencing, we have contacted a local manufacturer in regards to completing a trajectory study — the approximate time frame to complete the study will be three to four weeks at a cost of $3,500. Give us a call if you would like to proceed. In almost all circumstances, it has been the general goal of our firm to effect positive solutions between golf and surrounding uses. In this instance, however, I'm not sure the current proposal cannot help but have a detrimental impact on the course and the joy of playing it. Please let me know if we can be of further service. Sincerely yours, Theodore G Robinson Jr. c.c. Chris Dubia INDEMNIFICATION AGREEMENT This Indemnification Agreement (this "Agreement") is made and entered into as of December , 2005, by and between Lennar Homes and its subsidiary, Lennar Homes of California (collectively, the ' Company"), and the Newport Beach Country Club, Inc. (the "Indemnitee"). RECITALS WHEREAS, the Company is the owner of certain realproperty situated in Newport Beach, California, which is adjacent to and adjoining the Indemnitee's real property (the "Property"). WHEREAS, the Indemnitee, the ground lessee of certain real property adjacent to and adjoining land of the Company, has owned and operated in its current location for over fifty years a private golf course known as The Newport Beach Country Club (the "Golf Course"); WHEREAS, the Company has submitted an application to the City Council for the City of Newport Beach to affirm the decision of the Newport Beach Planning Commission approving plans for the construction of certain residential units on the Company's Property subject to certain enumerated conditions (the "Project"); WHEREAS, one of the enumerated conditions for the approval of the Project pertains to the Company working with the Indemnitee to develop notification mechanisms for the owners/occupants and guests of the Project of the potential harm to persons and damage to property related to errant golf balls from the Golf Course. These may include, but are not limited to, notification through sales disclosures and the CC&R's, additional insurance provided and paid for by the Company, and agreements by the Company to defend and indemnify the Indemnitee from any such. claims; WHEREAS, the Company desires to address the liability concerns of the Indemnitee, provide adequate notice to owners/occupants/guests, provide additional insurance to Indemnitee, and obtain consent of the Newport Beach City Council for the Project; WHEREAS, the Indemnitee desires to obtain full and complete indemnity from the Company for any and all claims arising from errant golf balls that may. cause bodily injury to persons and/or property damage during the development, construction, pre -sale and post sale of the residential units of the Project to contractors, subcontractors, individual homeowners, occupants, visitors and guests; WHEREAS, in recognition of the Indemnitee's need for substantial protection against personal liability, the Company wishes to provide in this Agreement for the indemnification of and the advancement of defense expenses to the Indemnitee as set forth in this Agreement; for the maintenance of coverage of the Indemnitee under the Company's liability insurance policies as an additional insured; for an Easement for Golf Balls from the Company and for the recordation of a Declaration of Easement for Golf Balls NOW, THEREFORE, in consideration of the foregoing promises, the mutual covenants and agreements contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged the parties hereto agree as follows: 1. Indemnification. The Company shall hold harmless and indemnify the Indemnitee, and its successors, assigns, officers, directors, shareholders, employees, members, guests, invitees and ground lessors, against any and all expenses, liabilities and losses (including, without limitation,. investigation expenses and expert witnesses' and attorneys' fees and expenses judgments, penalties, fines and amounts paid or to be paid in settlement) actually incurred by the Indemnitee (net of any related insurance proceeds or other amounts received by the Indemnitee or paid by or on behalf of the Company on the Indemnitee's behalf) in connection with any action, suit, arbitration or proceeding (or any inquiry or investigation, whether brought by or in the right of the Company or otherwise that the Indemnitee in good faith believes might lead to the institution of any such action, suit arbitration or proceeding), whether civil, criminal, administrative or investigative, or any appeal therefrom, in which the Indemnitee is a party, is threatened to be made a party, is a witness or is participating (a Proceeding") based upon, arising from relating to or by reason of the fact of errant golf balls from the Golf Course landing on the adjacent and adjoining Property of the Company on which the Project has been or will be constructed. In providing the foregoing indemnification, the Company shall, with respect to a Proceeding, hold harmless, defend and indemnify the Indemnitee to the fullest extent permitted by California law. 2. Liability Insurance. In addition to the foregoing, the Company shall purchase and maintain liability insurance on behalf of the Indemnitee insuring against any liability asserted against it as a result of errant golf balls from the Golf Course landing on the adjacent and adjoining Property of the Company and/or striking any persons thereon on which the Project has been or will be constructed. The type and amount of such insurance shall be as set forth in Exhibit "A". The purchase, establishment and maintenance of any such liability insurance shall not in any way limit or affect the rights and obligations of the Company or of the lndemnitee under this Agreement except as expressly provided herein. 3. Defense Costs. The Company shall pay on behalf of the Indemnitee any and all expenses, including without limitation, investigation expenses, expert witness expenses, attorneys' fees and costs incurred by the Indemnitee in connection with the defense of any Proceeding ("Defense Costs' ). • Indemnitee shall promptly submit any invoices it receives relating to Defense Costs and the Company agrees to use its best efforts promptly to pay, or cause to be paid, all such Defense Costs. 4. Notice and Defense of Claim. The Indemnitee agrees promptly to notify the Company in writing upon being served with any summons, citation, subpoenas, complaint, indictment, information or other document relating to any Proceeding or matter that may be subject to indemnification or advancement of expenses covered hereunder. The Company shall be entitled to assume the defense thereof, with counsel reasonably satisfactory to the Indemnitee. After notice from the Company to Indemnitee of its election to so assume the defense thereof, the Company shall not be liable to Indemnitee under this Agreement for any legal or other expenses subsequently incurred by Indemnitee in connection with the defense thereof other than reasonable costs of investigation or as otherwise provided below. Indemnitee shall have the right to employ its own counsel in such Proceeding or matter, but the fees and expenses of such counsel incurred after notice from the Company of itsassumption of the defense thereof shall be at the expense of Indemnitee unless (i) the employment of counsel has been authorized by the Company; (ii) Indemnitee shall have reasonably concluded that there may be a conflict of interest between the Company and Indemnitee in the conduct of the defense of such action; or (ni) the Company shall not in fact have employed counsel reasonably satisfactory to Indemnitee to assume the defense of such Proceeding or matter, in each of which cases the fees and expenses of counsel shall be the expense of the Company. The Company shall not be entitled to assume the defense of any Proceeding or matter brought by or on behalf of the Company or as to which Indemnitee shall have made the conclusion provided for in (ii) above. The Company shall not be liable to indemnify Indemnitee under this Agreement for any amounts paid in settlement of any Proceeding or matter affected without its prior written consent. The Company shall not settle any Proceeding or matter in any manner that would impose any penalty or limitation on Indemnitee without Indemnitee's written consent. Neither the Company nor the Indemnitee will unreasonably withhold their consent to any proposed settlement. 5. Agreement of Easement for Golf Balls; Declaration of Easement for Golf Balls. In addition to the foregoing, the Company shall establish for the benefit of the Indemnitee and its successors, assigns officers, directors, shareholders, employees, members, guests, invitees and ground lessors a non-exclusive easement (the "Easement") over and across, and in the air space above, all of the Company's Property on which the Project shall be built for the purpose of the flight of golf balls through the air over the Company's Property and the entry of golf balls upon and/or across the Company's Property on which the Project shall be built in the future. The Easement shall be recorded in the Orange County Recorders office in the form attached hereto as Exhibit "B. The Declaration of Easement for Golf Balls and Easement shall not in any way limit or affect the rights and obligations of the Company or of the Indemnitee under this Agreement except as expressly provided herein. 6. Successors; Binding Agreement. This Agreement shall be binding on and shall inure to the benefit of and be enforceable by and against the Company's successors and assigns and by the Indemmtee s successors, assigns, officers, directors, shareholders, employees members, guests, invitees and ground lessors. The Company shall require any successor or assignee (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company, by written agreement in form and substance reasonably satisfactory to the Company and to the Indemnitee, expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform if no such succession or assignment had taken place. 7. Enforcement. In the event the Indemnitee is required to bring any action to enforce its rights or to collect monies due under this Agreement and is successful in such action, the Company shall reimburse the Indemnitee for all of the Indemnitee's costs, including but not limited to attorneys' fees and expenses in bringing and pursuing such action. 8. Severability. Each of the provisions of this Agreement is a separate and distinct agreement independent of the others, so that if any provision hereof shall be held to be invalid or unenforceable for any reason, such invalidity or unenforceability shall not affect the validity or enforceability of the other provisions hereof, which other provisions shall remain in full force and effect, and, to the fullest extent possible, the provisions of this Agreement (including, without limitation, each portion of any section of this Agreement containing any such provision held to be invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested by the provision held illegal, invalid or unenforceable. 9. Miscellaneous. No provisions of this Agreement may be modified, waived or discharged unless such modification, waiver or discharge is agreed to in writing signed by the Indemnitee and either the President and Chief Executive Officer of the Company or another officer of the Company specifically designated by its board of directors No waiver by either party at any time of any breach by the other party of, or of compliance with, . any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same time or at any prior or subsequent times. No agreements or representations, oral or otherwise, express or implied, with respect to the subject matter hereof have been made by either party that are not set forth expressly in this Agreement. The validity, interpretation, construction and performance of this Agreement shall by governed by the laws of the State of California, without giving effect to the principles of conflicts of laws thereof.. All the terms and words used in this Agreement (including personal pronouns) regardless of gender shall be deemed and construed to include any other gender as the context shall require. 10. Notices. For the purposes of this Agreement, notices and all other communications provided for in this Agreement shall be in writing and shall be deemed to have been duly given when delivered or mailed by United States registered mail, return receipt requested, postage prepaid, as follows: If to the Indemnitee: If to the Company: The Newport Beach Country Club 1600 East Pacific Coast Highway Newport Beach, California 92660 Attention: President Lennar Homes Lennar Homes of California 25 Enterprise, Suite 300 Aliso Viejo, California 92656 Attention: President 11. Counterparts. This Agreement may be executed in one or more counterparts, .each of which shall be deemed to be an original but all of which together shall constitute one and the same instrument. 12. Effectiveness. This Agreement shall be effective as of the date first above written. IN WITNESS WHEREOF, the undersigned have caused this Agreement to be executed as of the day and year first above written. LENNAR HOMES By: Its LENNAR HOMES OF CALIFORNIA By: Its THE NEWPORT BEACH COUNTRY CLUB, INC. By: Its Exhibit "A" INSURANCE REQUIREMENTS [To Be Determined] Exhibit "B" RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: Lennar Homes of California 25 Enterprise, Suite 300 Aliso Viejo, California 92656 DECLARATION OF EASEMENT FOR GOLF BALLS THIS DECLARATION OF EASEMENT FOR GOLF BALLS ("Declaration") i made as of , 2005, by LENNAR HOMES OF CALIFORNIA, a California corporation (the "Company"). RECITALS A. The Company is the fee owner of certain real property located in Orange County, California (the "Property") a legal description and depiction of which is attached hereto as Exhibit "A" which is adjacent to The Newport Beach Country Club (the "Golf Course') a legal description and depiction of which is attached hereto as Exhibit `B". B. The Company intends to develop the Property into a multi -unit, residential condominium project for sale toindividual homeowners (the "Project"). In connection with the Project, the Company intends to form a homeowners' association which will ultimately own certain portions of the Property and Project known as the Common Areas. (The Property, the Project and the Common Areas, as described herein, shall be collectively referred to as "the Servient Lots"). C. The Company desires that prior to the purchase or acquisition of any right, title or interest in any Servient Lot (together with the condominium unit thereon, if any) or the Common Area on the Property as described in the Project the potential buyer or other owner have notice of the possibility of errant golf balls from the Golf Course over such Servient Lot or Lots and in acquiring such Servient Lot, such buyer or other owner agrees to waive claims and indemnify for injuries from errant golf balls, as provided herein. NOW, THEREFORE, the Company hereby establishes the. following: 1. Reservation of Golf Ball Easement. The Company hereby establishes for the benefit of the Golf Course a non- exclusive easement (the "Easement") over and across, and in the entire airspace above, all of the Property and/or Servient Lots, for the purpose of' the flight of golf balls through the air over the Property and/or Servient Lots and the entry of golf balls upon and/or across the Property and/or Servient Lots and any improvements constructed, or to be constructed, upon the Property. and/or Servient Lots. 2. Character of Easement. The Easement shall be appurtenant to the Golf Course and the Golf Course shall be the dominant tenement, and each. and every legal parcel or lot on the Property and/or in the Servient Lots shall be the servient tenement, 3. Use of Easement. (a) Limited Purpose. The Easement shall be used only for the purposes set forth in paragraph 1 above. Nothing herein shall be construed to (i) permit entry upon the Servient Lots by any individual for any purpose, including but not limited to, the retrieval of golf balls, or (ii) limit the construction of improvements on the Servient Lots. (b) Limited Use. The Easement shall be specifically limited to use by the owner(s) and operator(s) of the Golf Course and their licensees, invitees, employees and agents. The rights reserved and created hereunder are for the benefit of the Parties (as that term is defined below) and each of them. 4. Term. The term of the Easement shall be from the date of recordation of this Declaration in the Official Records of Orange County California, to and until such time as no portion of the Golf Course has been operated as a golf course for a period of' at least thirty six (36) consecutive calendar months, which 36-month period may not include any time the Golf Course is under construction or closed for refurbishment, redesign or other similar reasons. Waiver and Indemnification. The Company, the owner(s), operator(s) and designer(s) of the Golf Course, and all of their respective divisions, subsidiaries and affiliated companies, and all of their respective officers, directors, shareholders, agents, representatives, employees and professional consultants, and all of their respective successors and assigns (collectively, the "Parties"), and each of them, shall not be liable for any cost, expense (including actual attorneys' fees), loss, damage, injury (including death) or claim of any kind or character, including, but not limited to, causes of action for negligence, nuisance trespass, assault or battery, to any person or property arising from or related to any use of the Easement. All persons holding any right, title or interest in any portion of the Servient Lots (an `Owner") shall hold such interest subject to the terms and conditions of this Declaration, and each such Owner hereby waives any and all claims and demandsagainst the Parties arising from or related to any such cost, expense, loss, damage, injury or claim. Furthermore, each such Owner shall indemnify, defend and hold harmless the Parties, and each of them, from and against any and all claims, demands, actions, suits, losses, liabilities, damages, costs and expenses (including actual attorneys' fees) arising from or related in any way whatsoever to any use of the Easement over, above across or in such Owner's Servient Lot, whether made or incurred by such Owner, any member of such Owner's family, any invitee of' such Owner or any other person. Payment shall not be a condition precedent to recovery under the foregoing indemnification, and the obligation of each Owner to defend the Parties as set forth above shall be the obligation to defend with counsel approved by the indemnified Party. The obligations of such Owners hereunder shall run with the Servient Lots for the benefit of the. Golf Course and shall be binding on all successive owners of any portion of' the Servient Lots. Notwithstanding anything to the contrary herein, (a) nothing contained in this paragraph shall operate to relieve any Party for any loss, damage, injury or claim which is determined by a court of competent jurisdiction to have been solely and proximately caused by the intentional misconduct or gross negligence of such Party, and (b) the waiver and indemnification provisions of this paragraph shall not extend to the individual responsible for placing the golf ball in flight if such flight is the sole and proximatecause of the personal injury or property damage. When more than one person is the Owner of any Servient Lot such persons shall be jointly and severally liable hereunder as the Owner of such Servient Lot. The term "Owner" shall not include any person holding an interest in a Servient Lot merely as security for the performance of an obligation. 6. Buffers . Without limiting the generality of the foregoing paragraphs of this Declaration, each Owner understands and agrees that the owner(s), operator(s) and designer(s) of the Golf' Course cannot necessarily install fences, trees and other buffers, or reconfigure or remodel the Golf Course, to hinder errant golf balls from entering such Owner's specific Lot as such installations, reconfigurations and remodeling may diminish the enjoyment of the Lots or other Owners or other property. Nothing contained herein shall be deemed to establish or grant a view easement or any other similar easement or right in favor of any Owner or any owner of other property near the Golf Course, and the owner(s) .and operator(s) of the Golf Course may install fences, trees and other improvements on the Golf Course and remodel or reconfigure the Golf Course as and when they so desire. 7. Miscellaneous. (a) Successors and Assigns. The provisions of this Declaration shall bind all parties now having or hereafter obtaining any beneficial interest in the Servient Lots and their successors and assigns, and shall inure to the benefit of all of the Parties and all parties now having or hereafter obtaining any beneficial interest in the Golf Course and their successors and assigns. (b) No Rights in Public. Nothing contained herein shall be deemed to be a gift or dedication of any portion of the Servient Lots to or for the general public or for any public purpose whatsoever, it being the intention of the undersigned that the Easement shall be strictly limited to and for the purposes herein expressed. (c) Attorneys' Fees. In the event of any controversy, claim, action, dispute or proceeding, including any arbitration proceeding, relating to this Declaration, or the breach hereof, then the unsuccessful party in such action or proceeding shall reimburse the successful party therein for all costs and expenses (including court costs and actual attorneys' fees) incurred therein by such successful party. (d) Governing Law. This Declaration shall be governed by and construed in accordance with the laws of the State of California. If any term, provision or condition contained in this Declaration (or the application of any such term, provision or condition) shall to any extent be invalid or unenforceable, the remainder of this Declaration shall be valid and enforceable to the fullest extent permitted by law. IN WITNESS WHEREOF, the Company has executed this Declaration the day and year first above written. LENNAR HOMES OF CALIFORNIA By: Its STATE OF CALIFORNIA ) ss. COUNTY OF ORANGE On , 2000, before me, , a Notary Public in and for said State, personally appeared and personally known to me (or 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. (SEAL) WITNESS my hand and official seal. Notary Public in and for said State -10- EXHIBIT "A" LEGAL DESCRIPTION OF THE PROPERTY That certain real property located in the County of Orange, State of California, more particularly described as follows: 11- EXHIBIT "B" LEGAL DESCRIPTION OF GOLF COURSE That certain real property located in the County of Orange, State of California, more particularly described as follows: 16001.00IindemnificationagmtNBCC -12- CHRISTIAN F. DUBIA, JR. WRITER'S E-MAIL ADDRESS cdubia@detrlaw.com DUBIA, ERICKSON, TENERELLI & RUSSO, LLP ATTORNEYS AT LAW 2 PARK PLAZA, SUITE 300 IRVINE, CALIFORNIA 92614-8513 TELEPHONE: (949) 955-1177 FACSIMILE: (949) 833-2067 www.detrlaw.com, OUR FILENO. 16001.00 December 28, 2005 Renetta A. Caya, Esq. Palmieri, Tyler, Wiener, Wilhem & Waldron, LLP 2603 Main Street, Suite 1300 Irvine, California 92614-6228 Re: The Newport Beach Country Club and Lennar Homes Dear Renetta: This letter is written in response to your letter dated December 9, 2005 which responded to my letter to you dated December 6, 2005. My letter of December 6, 2005 set forth the design parameters and conditions which my client, The Newport Beach Country Club, Inc. ("NBCC") believes to be necessary for NBCC to not oppose the proposed Santa Barbara condominiums ("Project") by your client, Lennar Homes of California, Inc ("Lennar"). At our meeting on November 29, 2005 at your offices, Dave Wooten reviewed with you the concerns of NBCC regarding safety issues associated with a residential development in such close proximity to the golf course. You also were provided a copy of an article fiom the Urban Land Institute entitled "Golf Course Development and Real Estate ' which discusses these safety issues and design standards for real estate development in proximity to golf courses. In my letter dated December 6, I provided you with a letter from Ted Robinson, Jr , NBCC's golf course architect, which summarizes his opinions and conclusions regarding these safety concerns as well as aesthetic issues. Your letter dated December 9 sets forth your responses to NBCC's design parameters and conditions in order for NBCC to not oppose the Pioject. Renetta A. Caya, Esq. Palmieri, Tyler, Wiener, Wiihem & Waldron, LLP December 28, 2005 Page 2 Below is NBCC's Reply to Lennar's Responses to NBCC's Conditions For purposes of clarity NBCC's original design parameters and conditions set forth in its December 6 letter ("NBCC Conditions") are restated along with Lennar's response set forth in your letter dated December 9 ("Lennar Response") and NBCC's reply thereto ("NBCC Reply"): 1. NBCC Condition: The current plans, presented at our meeting, contemplate a walkway/path along the perimeter of the project and adjacent to the golf course boundary with limited fencing. It was represented that the purpose of the walkway/path was for emergency access of firefighters. NBCC has significant concerns that residents and guests will utilize this walkway and increase their exposure to bodily injury from errant golf balls. NBCC would require that Lennar install fencing at a height of at least five feet to restrict access to the walkway/path to only emergency personnel and to restrict trespassing on NBCC property. Lennar Response: Lennar will construct locked gates at the entry to this emergency access drive to restrict trespassing onto NBCC property in accordance with the Fire Department requirements Lennar cannot, however, restrict access from the emergency access drive to the Project buildings as this would defeat the purpose of the drive by preventing emergency vehicles from accessing these buildings. NBCC Reply: NBCC requires that Lennar install fencing along the property line to prevent trespassing on NBCC property and the attendant risks of being hit by a golf ball. 2. NBCC Condition: The current plans contemplate the construction of patios on the ground level and balconies on the upper levels of the project. NBCC would require a redesign that eliminated all outside patios and balconies due to the risks associated with errant golf balls. The type of glass installed in the units should be shatter proof and capable of withstanding significant blunt force without breaking. Lennar Response: Due to the height of the first floor balconies and patios, owners would have to jump off these balconies down several feet in order to access the golf course. The height of these balconies above finished grade is a large obstacle to homeowners trespassing on the golf course. Renetta A, Caya, Esq. Patinier', Tyler, Wiener, Wilhem & Waldron, LLP December 28, 2005 Page 3 Lennar will also be proactive in discouraging its homeowners and others from trespassing on the course, by including a provision in the disclosure documents to homebuyers and adopting homeowners' association rules. Lennar's current building plans contemplate the installation of safety -tempered glass at windows facing the golf course. NBCC Reply: Lennar's reponse is unacceptable and fails to address NBCC's concern that people on balconies on the upper floors and on patios on the ground floor are at a considerable risk of being hit by golf balls. Access to patios and balconies should not be allowed It is unclear to NBCC whether "safety -tempered" glass at windows facing the golf course are shatter proof and capable of withstanding blunt force without breaking. 3. NBCC Condition: The current plans contemplate an open, public area with a seating area between the first two buildings fronting the golf course. NBCC would require that this open area be eliminated or landscaped and fenced in such a manner so as to prevent owners and guests from congregating or walking in this area. It is in very close proximity to the No. 2 green and well within the landing area of errant golf balls. Lennar Response: NBCC requested that the open area "either be eliminated or landscaped and fenced in such a manner so as to prevent owners and guests from congregating or walking in this area." First, the open public area does not provide for a stairway (or any pathway) down to the golf course and is several feet above the natural grade. It would likely cause a person great harm to jump down from this common area to access the golf course. Further, NBCC's concern that the common area is "well within the area of errant golf balls" is quite troublesome Lennar has noted that currently only tennis courts 5, 6 7 and only a portion of 8 are surrounded by protective netting Therefore, Lennar can only conclude that NBCC did not install netting along courts 1 through 4 because golf balls currently do not pose a risk to the guests playing on these courts. The location of the common area is within the realm of courts 1 and 3, the area that is not presently protected by netting. As such, your request to eliminate or redesign the common area appears incompatible with the location of the current safety measures along the tennis courts. Renetta A. Caya, Esq. Palmieri, Tyler, Wiener, Wilhem & Waldron, LLP December 28, 2005 Page 4 NBCC Reply. Lennar misses the point. The issue is not pedestrian access but safety. Ted Robinson's Exhibits 2a and 3a clearly show the area in question, where Lennar proposes putting in a parklike assembly area, and it is well within the hazard area for errant golf balls. That area is currently a grass area in front of the tennis clubhouse and is not protected by fencing because it is hardly ever used. The tennis court nearest the Marriott Tower his notbeen a problem because it is largely protected by trees and vegetation. NBCC requires that this open area be eliminated or landscaped and fenced in such a manner so as to prevent owners and guests from congregating or walking in this area. 4. NBCC Condition: NBCC would require that netting be installed along No. 2 fairway/green and along No 3 fairway in the areas affected by errant golf balls and additional landscaping, including trees, associated with such netting installed to protect against errant golf balls damaging the property or injuring persons at the project. Ted Robinson, Jr. has received a proposal from a netting subcontractor to perform a trajectory study (which will take 3-4 weeks to perform at a cost of $3500) to determine the location and specifications of the required netting. The costs of such netting and landscaping, including consultant fees and studies, would be paid for by Lennar. We will await Lennar's written authorization before we proceed with the trajectory study. Lennar Response: As recommended by NBCC, the installation of netting appears to be the solution that best mitigates the safety risks posed by errant golf balls. Lennar will choose an independent subcontractor/consultant to prepare a trajectory study of the errant golf balls. Based upon the recommendations of this trajectory study, Lennar will consult with NBCC to determine the location and specifications of the netting and other recommended remedies to address the safety concerns NBCC Reply: NBCC wants Lennar to do more than promise to "consult" with it on the location and specifications of such netting. NBCC requires that it, not Lennar, engage a netting subcontractor to perform the trajectory study and that Lennar agree, in advance, to pay for such netting and associated landscaping, including consultant fees and studies. Renetta A. Caya, Esq. Palmieri, Tyler, Wiener, Wilhem & Waldron, LLP December 28, 2005 Page 5 5. NBCC Condition: To the extent that the course may be modified to reduce the potential for errant golf balls landing on the project, NBCC may consider implementing such modifications to the course to mitigate the risk. The costs associated with any course modification, including any plantings and/or landscaping, would be paid for by Lennar. Lennar Responses Lennar requests that NBCC seriously consider certain modifications to the No 2 and No. 3 fairways and provide Lennar with a list of such modifications that could be implemented to mitigate the errant golf ball risks and perhaps s'multaneously enhance the aesthetics or functionality of the course to its members. If these modifications are identified and are cost effective, Lennar would be prepared to contribute financially toward them. Lennar is convinced that simple changes in the fairway design, like the addition of screening trees along the fairway, would dramatically reduce the number of errant golf balls landing on the Project boundaries. Further if the course modifications reduce the need for screening, Lennar would consider contributing an allocated portion toward the cost of such netting or other screening material. NBCC Reply: Lennar must agree in advance to pay for any and all consultant fees associated with preparing proposed modifications to the course. Moreover, it is not enough for Lennar to "consider contributing an allocated portion toward the cost of such netting or other screening material." Lennar must agree in advance to pay for all such screening and/or landscaping. 6. NBCC Condition: NBCC will require Lennar to enter into an Indemnity Agreement, in tl e form attached hereto, which includes a Declaration of Golf Ball Easement, along with the provision of liability insurance coverage. Lennar would be responsible for all costs associated with this Indemnity Agreement and related documents, including reimbursing NBCC for the legal expenses incurred in preparing and finalizing the agreement. Lennar Response: Lennar has reviewed the Declaration and indemnity agreements and has several comments as shown on the attached redline. We have redlined only the Declaration as that document shall incorporate all the necessary indemnity, waiver and release provisions that affect Lennar's future Renetta A. Caya, Esq. Palmieri, Tyler, Wiener, Withem & Waldron, LLP December 28, 2005 Page 6 homeowners. As you can see, much of the language from the indemnity agreement has been incorporated into the Declaration. As, set forth in the Declaration, Lennar will disclose to each homebuyer the additional risks of living adjacent to a golf course, including not only errant golf balls, but also fertilizer overspray, the potential of obstructed view due to the installation of netting and/oi landscaping, traffic, noise and other impacts arising from the use and operation of the golf course. Lennar is presently researching additional homeowner association insurance coverage to insure against the liability of errant golf balls on the Project and reserves the right to modify this provision once Lennar has further information on coverage. Condominiums within the Project will be developed and sold to the homebuying public; any improvements the Condominium Buildings and the common areas will ultimately be owned and maintained by a non-profit mutual benefit corporation or homeowner's association ("Association"). Lennar will not own, maintain or be responsible for any portion of the Project once Lennar has sold all of the Condominimus within the Project. For this reason, Lennar cannot indemnify for the acts of others on property it no longer owns or controls. Instead. Lennar would be prepared to agree that the Association and the future Owners will acknowledge and accept the risks of errant golf balls, waive and release NBCC from associated liabilities from these claims. These changes are noted on the enclosed redline to the Declaration. NBCC Reply: Lennar must remain responsible to NBCC for the liability it has created th lough the development of the Project. Your Draft Declaration of Covenants, Conditions and Restrictions and Grant of Easement for Golf Balls ("Declaration') simply shifts the responsibility for indemnification to the homeowner's association, if and when it is formed. Thus, while you acknowledge the safety issues and the potential for harm to property and persons, Lennar simply puts the profits of the Project in its pocket and walks away from the harm it has created without any residual liability. This is unacceptable to NBCC. NBCC will require Lennar to enter into an Indemnity Agreement, in the form attached to its letter dated December 6. Lennar must agree that it will he responsible for all costs associated with this Indemnity Agreement and related documents, including reimbursing NBCC for the legal expenses incurred in preparing and finalizing the agreement. As for the Declaration, it must be modified to protect and indemnify NBCC's owners, operators, designers, and their respective divisions, subsidiaries and affiliated Renetta A. Caya, Esq. Palmieri, Tyler, Wiener, Wilhem & Waldron, LLP December 28, 2005 Page 7 companies, and all of their respective officers, directors, shareholders, agents, representatives, employees and professional consultants, and all of their respective successors and assigns, as well as its members, guests and invitees in accordance with paragraph 5 of the Indemnification Agreement. In conclusion, as set forth in our letter dated December 6, NBCC has operated a golf course at its present location for over 50 years. With such an operating history, the likelihood of errant golf balls landing on Lennar's Project is a certainty. Lennar's Project falls squarely within the historical landing area of these errant golf balls. Given the substantial number of rounds of golf played each year, it is a certainty that hundreds of golf balls will land in the area of the Project. Without NBCC's design parameters and conditions being met, it is a certainty that someone will sustain serious bodily injury and/or property damage from errant golf balls. NBCC and its owner, members, guests and invitees should not be subjected to risk of lawsuits by contractors, owners, guests or third persons because of Lennar's Project. Based on these undisputed facts, Lennar must remain responsible to NBCC for the liability it will create through the development of the Project. At the outset of your December 9 letter you state that "Lennar appreciates and understands the risks to persons and property posed by errant golf balls" and declares a desire to "mitigate these safety risks." If this is really true and you really mean to `mitigate these safety risks" then you should have no problem agreeing to NBCC's design parameters and conditions Moreover, it is Lennar, not NBCC, that stands to profit handsomely from this Project. Part of your development costs should not be born by NBCC, but rather falls squarely on Lennar's shoulders. It is unreasonable for Lennar not to agree, in advance, to pay for these necessary safety and design features which the Project is imposing on NBCC. Without such agreement, NBCC cannot support and will actively oppose, the Project. We are currently scheduled to meet at my office on Thursday, January 5, 2006 at 2:00 p.m. to discuss this matter further. Please confirm such meeting on receipt of this letter. Very truly yours, Renetta A. Caya, Esq. Palmieri, Tyler, Wiener, Wilhem & Waldron, LLP December 28, 2005 Page 8 Christian F. Dubia, Jr. CFD:sd Enclosures 16001.00/efdcayal tr.doc