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HomeMy WebLinkAbout09 - Santa Ana Heights Annexation AgreementCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 9 April 13, 2010 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Planning Department Javier Garcia, Senior Planner 949 - 644 -3206, jgarcia @newportbeachca.gov SUBJECT: Request to amend the Annexation Agreement for Santa Ana Heights Annexation Area ISSUE: Should the City Council request that the County of Orange Board of Supervisors ( "County ") and the Orange County Development Agency ( "Agency ") amend the Annexation Agreement with the City of Newport Beach to provide that amendment of the Santa Ana Heights Specific Plan Area Regulations by the City does not require approval of the County and /or the Agency? Should the City Council direct staff to prepare a resolution deleting Council Policy K -6 which sets forth procedures for amending the Santa Ana Heights Specific Plan consistent with requirements of the Annexation Agreement between the County of Orange and the City of Newport Beach? RECOMMENDATION: Staff recommends that the City Council: 1. Authorize the Mayor to sign and submit the attached letter to the County of Orange Board of Supervisors requesting amendment of the Annexation Agreement to provide that County and /or Agency approval is not required to amend the Santa Ana Heights Specific Plan Regulations; and 2. Direct the Planning Director and the Office of the City Attorney to prepare appropriate revisions to the Annexation Agreement and obtain County and Agency approval and execution of same; and 3. Subsequent to receiving approval by the County and the Agency of the Revised Agreement, prepare a resolution for City Council adoption eliminating Council Policy K -6. Request to Amend the Annexation Agreement for Santa Ana Heights Annexation Area April 13, 2010 Page 2 DISCUSSION: Background: On September 10, 2002, the City of Newport Beach entered into a Pre - Annexation Agreement ( "Agreement ") with the County of Orange Board of Supervisors and the Orange County Development Agency that specified the terms of annexation of the area known as Santa Ana Heights (SAH) to the City of Newport Beach. In May of 2006, West Santa Ana Heights was annexed to the City of Newport Beach and continued to be subject to the Santa Ana Heights Specific Plan Area Regulations. Section 2.1 of the Agreement requires that no amendment to the Specific Plan may be approved without prior written permission of the County and the Agency. At the time of approval, the Agreement required prior County approval of amendments to the SAH Specific Plan but did not include a requirement for participation by the Santa Ana Heights Project Area Committee (PAC). City Council Policy K -6 was adopted to include participation by the PAC when the City of Newport Beach City Council subsequently proposed amending the SAH Specific Plan to establish a Fire Facility Overlay District for the fire station property. The procedural requirements for amending the specific plan set forth in Council Policy K -6 include a public meeting and an advisory vote by PAC prior to adoption of any amendment. The Santa Ana Heights Project Area Committee (PAC) was disbanded after its final meeting on February 3, 2010. The requirements of Council Policy K -6 that the PAC hold a public meeting and take an advisory vote on any proposed Specific Plan amendments are now irrelevant. Moreover, the amendment approval requirements of Policy K -6 are cumbersome, and former PAC members have told staff that they would prefer that amendment of the Specific Plan be subject to the same ordinance amendment provisions as apply throughout Newport Beach. Other provisions of the Agreement that do not relate to municipal governance commensurate with annexation by the City of Newport Beach would remain intact (Attachment No. CC 3). Amendment of the Santa Ana Heights Specific Plan will be required if the City is to license horses used for recreation as required in the Specific Plan. The City has no licensing procedures and none are contained in the Specific Plan. Prior to annexation, horses were licensed by the County pursuant to procedures adopted separately from the specific plan. Licensing of horses will need to be considered in response to a resident's complaint that a neighbor is boarding horses in violation of the recreational horse licensing requirements of the Specific Plan. Proposed Amendment to Agreement: Section 2.1 of the Agreement reads, in part, as follows Request to Amend the Annexation Agreement for Santa Ana Heights Annexation Area April 13, 2010 Page 3 "After the CITY's annexation of the Annex Area, the CITY shall not amend its General Plan as it pertains to the Annex Area or the Specific Plan without the prior written consent of the COUNTY and the AGENCY..." Section 6.2 of the Agreement reads as follows: "No alteration or variation of the terms of this Agreement shall be valid unless made in writing and signed by both parties; no oral understanding or agreement not incorporated herein shall be binding on either of the parties" The City proposes to amend the Agreement by eliminating the requirement for a PAC public meeting and vote, and by deleting the need for written permission from the County and from the Agency prior to amendment of the Specific Plan. After amendment of the Agreement, the Planning Department would process all future amendments to the SAH Specific Plan Regulations through the normal public notice and public hearing process as applies t o all Municipal Code amendments. A copy of the Annexation Agreement is attached and includes highlighting of sections that are subject to deletion or revision. All other aspects and provisions of the Annexation Agreement will remain unchanged and in force. Environmental Review: Environmental Review is not required for this Council action. Public Notice: This agenda item requires standard Brown Act notice. Mailed notice was provided to each member of the former Santa Ana Heights Project Area Committee. The subsequent amendment to the Santa Ana Heights Specific Plan Regulations will be an Ordinance that will be processed after permission from the County Board of Supervisors is obtained. Alternatives: Should the County Board of Supervisors choose not to allow the City to amend the Annexation Agreement, the alternative would be to pursue the amendment to the Santa Ana Heights Specific Plan Regulations as currently specified by the Annexation Agreement, Council Policy K -6, and obtain written permission prior to setting the matter for introduction and public hearing. 5 , Prepared by: er S Garcia 9 Senior Planner ' Request to Amend the Annexation Agreement for Santa Ana Heights Annexation Area April 13, 2010 Page 4 Submitted by: David Lepo Planning Director Attachments: CC1 Draft of Letter to the County and Agency CC2 Copy of City Council Policy K -6 CC3 Copy of Current Annexation Agreement with highlights of sections subject to revision. q Attachment No. CC 1 Draft Letter to the County and Agency I DRAFT LETTER April _, 2010 Hon. Chairman and Members of the Board of Supervisors County of Orange 333 W. Santa Ana Blvd., Room 465 P.O. Box 687 Santa Ana, CA 92702 -0687 Orange County Development Agency c/o County of Orange Planning Director 333 W. Santa Ana Blvd., Room 465 P.O. Box 687 Santa Ana, CA 92702 -0687 RE: Request for Consideration of an Amendment to the Annexation Agreement related to the Santa Ana Heights Specific Plan Area Dear Board of Supervisors and Agency Members: The City of Newport Beach requests your approval to amend the Pre - Annexation Agreement ( "Agreement') entered into between the City and the County on September 10, 2002, pursuant to Section 6.2 of the Agreement. Pursuant to Section 6.2 of the Agreement, signatures of both parties, the County and the City, are required to validate alteration or variation of the terms of the Agreement. The City at this time wishes to alter the Agreement to eliminate the requirement that necessitates the review and written consent of amendments to the Santa Ana Heights Specific Plan (and the General Plan that pertains to the Annexation Area or the Specific Plan) by the County and the Development Agency. The proposed changes are highlighted in the attached document. The remainder of the Agreement will remain in force. In order to facilitate the timely processing of the proposed change to the Agreement, the City respectfully requests that you provide us with written authorization to proceed by Friday, G Letter to Board and Agency April 13, 2010 Page 2 , 2010. During your review we are available to answer your questions, if any, regarding the proposed changes to the Agreement. Thank you for your consideration of the proposed alteration of the document. Sincerely, Keith D. Curry Mayor Enclosures. cc: David Kiff, City Manager David Lepo, Planning Director Leonie Mulvihill, Assistant City Attorney F: \Users \PLN \Shared \PA's \PAs - 2009 \PA2009 - 081 \County Letter on Mayor Ltrhead 03- 31- 2010.docx Attachment No. CC 2 Copy of Council Policy K -6 I a Changes to the Santa Ana Heights Specific Plan or to aspects of the General Plan that relate to the Santa Ana Heights Specific Plan Purpose: The purpose of this Policy is to establish a process for City staff and others to follow when staff, community groups, or residents propose a change to the Santa Ana Heights Specific Plan. A Pre- Annexation Agreement dated September 10, 2002 between the City and the County of Orange (its Board of Supervisors and the Orange County Development Agency) generally directs that written consent of the County be obtained before an amendment to the Santa Ana Heights Specific Area Plan or any changes to the City's General Plan that relate to the Santa Ana Heights Specific Plan can become effective. Policy: It is the policy of the City that this process be followed when considering any amendment to the Santa Ana Heights Specific Plan or any amendment to the City's General Plan that may relate to the Santa Ana Heights.Specific Plan: 1. The proponent of the amendment (City staff, City Council, the Santa Ana Heights Project Advisory Committee [PAC], or individual residents) shall request consideration of the specific amendment in writing with a letter addressed to the City, the PAC and to the Orange County Board of Supervisors. 2. If requested by the County, the PAC shall hold a public meeting to discuss the proposed amendment. Following the public discussion, PAC shall conduct an advisory vote on the proposed amendment. 3. The County shall be requested to offer its position on the proposed amendment in any formal, public manner that the County sees fit. 4. If approved by the County, the City Council shall consider the proposed amendment during a regular session of the City Council. The Council's consideration of the proposed amendment shall comply with the Newport Beach Municipal Code and the City Charter as they relate to the adoption of ordinances or General Plan amendments. Nothing in this Policy obligates the City Council to approve any proposed amendment approved by PAC or the County. 5. In the Coastal Zone, no amendment to the certified Local Coastal Program shall become effective until adopted by the California Coastal Commission, pursuant to the provisions of the California Public Resources Code and the California Coastal Commission Administrative Regulations. i aL Attachment No. CC 3 Copy of Annexation Agreement with highlighted sections that are relevant and /or subject to revision 13 !H 1 2 3 4 5 6 7 8 9. 10 11 i 12 oz 13 Y $`0 14 � �f 15 00 ,u t 16 c 17 18 19 20 21 22 23 24 25 26 27 91 PR&ANNEXATION AGREEMENT THIS AGREEMENT, is entered into the 0 t day of . ' �, I' 2002 by and between the COUNTY OF ORANGE, a political subdivision of the State of California, hereinafter referred to as "COUNTY ", the ORANGE COUNTY DEVELOPMENT AGENCY, a public body corporate and politic, hereinafter referred to as the "AGENCY ", and the CITY OF NEWPORT BE a charter city, hereinafter referred to as "CITY ". RECITALS: WHEREAS, the Board of Supervisors of the COUNTY acting pursuant to the Community Redevelopment Law ( "CRL ") has adopted a redevelopment plan (the "Redevelopment Plan") for a portion of the unincorporated territory of the COUNTY known as Santa Ana Heights ( the unincorporated territory governed by the Redevelopment Plan is referred to in this Agreement as the "Project Area "); and WHEREAS, under.the CRL, the AGENCY is responsible for implementing and administering the Redevelopment'Plan; and WHEREAS, the COUNTY has adopted the Santa Ana Heights Specific Plan to regulate land u and zoning within the Project Area (the "Specific Plan"); and WHEREAS, the Redevelopment Plan specifies that the land uses permitted in the Project Area will be those set out in the Specific Plan; and WHEREAS, in August 2000 the CITY amended its General Plan to include the Specific Plan; I WHEREAS, the AGENCY and COUNTY desire that the land use and zoning regulations of the Specific Plan continue in effect in order to encourage development in the Project Area that will generate sufficient tax increment revenues to repay the redevelopment bonds issued by the AGENCY to finance :apital projects in the Santa Ana Heights Project Area, and meet the AGENCY's obligation to contribute o the repayment of the COUNTY'S bankruptcy recovery bonds in accordance with the provisions of 3ealth and Safety Code Sections 33670.9 and 33670.95; and I175MM160800.4 _ L 15 1 0 3 4 5 6, 7 8 9 WHEREAS, after annexation, the CITY desires that the AGENCY cooperate with the CITY in acquiring land for and constructing a fire station in the Project Area; and WHEREAS, the COUNTY and the CITY intend that, upon the effective date of the annexation of the Annex Area to the CITY, and the CITY providing local municipal services to the Annex Area, the property tax sharing between the COUNTY and the CITY shall be 70% of the current COUNTY General Fund share of the 1% basic property tax levy to the CITY, and 30% to the COUNTY during the time the AGENCY continues to receive tax increment from the Annexed Area pursuant to Health and Safety Code Section 33670, and, once the AGENCY is no longer receiving tax increment from the Project Area, the COUNTY and CITY shall thereafter share the property tax that the COUNTY would have received if the annexation had not occurred, based on the allocation set out in the Master Property Tax Agreement between the CITY and the COUNTY, to wit: 51.9378% to the CITY and 48.0622% to the COUNTY. In addition to the above, the CITY shall receive 100% of the property tax revenues from the Annexed Area that, absent annexation, would have been apportioned to the Orange County Library District and the Orange County Fire Authority; and WHEREAS, AGENCY is desirous of purchasing a parcel of improved real property in the Project Area, for purposes of a community center, which property will be turned over to the CITY upon the completion of the annexation of the Annex Area by the CITY; and WHEREAS, the CITY is proposing to annex and/or reorganize currently unincorporated territories adjacent to or within the CITY'S western and northern sphere of influence, including a portion of the Project Area (the portion of the Project Area proposed to be annexed to the CITY is referred to in this Agreement as the "Annex Area'); and WHEREAS, if the Annex Area is annexed to the CITY, the COUNTY and the AGENCY desire assurances from the CITY that the land use regulation applicable to the Annex Area will remain as specified in the Specific 10 11 u 12 z 0 oz 13 ,0 o0 14 u� o9 15 16 0 17 18 19 20 21 22 23 24 25 26 27 28. ii758 \08`,6°80.4 1 2 3 4 5 6 7 8 9 10 11 N 12 Z 08 13 �° 14 $o ms ag 15 16 0 17 18 19 20 21 22 WHEREAS, CITY agrees to accept title to the property that AGENCY acquires for a c center, and thereafter use and maintain the property as a community center, and, upon CITY's acceptance of title, CITY shall pay all use and maintenance costs connected therewith. NOW THEREFORE, in consideration of the above recitals and of the mutual covenants and for other good and valuable consideration, the receipt and sufficiency of which is acknowledged, the COUNTY, AGENCY and CITY agree as follows: 1. OBJECTIVES AND INTENT. I.I. Objectives. The objectives of this Agreement are: 11.,3 w �nst�tha[ �# ertj, eann�xat�on` ofe�anexP�rea {b3+#�ey�tty,theJan�s�eand; e°?cos� Yrtdythe EN'y ' 1.1.2. Preserve the AGENCY'S tax increment revenues from the Annex Area after its annexation by the CITY in order to repay the AGENCY'S redevelopment bonds issued to finance Project Area capital projects and contribute to the repayment of the COUNTY'S bankruptcy recovery bonds. 1.1.3 Provide AGENCY cooperation and contribute AGENCY funding for the acquisition of land, (or provide AGENCY land, if suitable), for, and construction of, a fire station in the, Annex Area after its annexation to the CITY. 1.14 To provide the Santa Ana Heights and Newport Beach residents with a suitable community center to use for community activities and programs. 23 1.2. Intent. The COUNTY, AGENCY and CITY, through this Agreement, intend to 24 1 establish the rights, obligations and duties of each of them after the CITY'S annexation of the Annex 25 Area in order to accomplishment the objectives of this Agreement. 26 27 h .fez G 7581081180800.4 rg .. 1 2 3 4 5 6 7 9 submitted to COUNTY and AGENCY foc,reyiew:and approval. 11 3. VARIATION FROM MASTER PROPERTY TAX AGREEMENT. z 12 3.1. The provisions of the Master Property Tax Agreement between the COUNTY and the Boo 13 CITY notwithstanding: og° .14 (a) The COUNTY and the CITY agree that, upon the effective date of the annexation 15 of the Annex Area to the CITY, and the CITY providing local municipal services to the Annex Area, to. 16 the property tax sharing between the COUNTY and the CITY shall be 70% of the current 0 17 (preannexation) COUNTY General Fund share of the 1% basic property tax levy to the CITY, and 18 30% to the COUNTY during the time the AGENCY continues to receive tax increment from the 19 Annexed Area pursuant to Health and Safety Code Section 33670,x"' -' .1k 1ft ei n the vent 4�e' , 21 23 °,,3te�I�4�'sr6 prop;ert� talc levy to the CTi'I' atid70`to tfie�OIIIVTY. > =' 24 (b) Once the AGENCY is no longer receiving tax increment from the Project Area, the 25 COUNTY and CITY shall thereafter share the property tax that the COUNTY would have received if 26 the annexation had not occurred, based on the allocation set out in the Master Property Tax Agreement 27 between the CITY and the COUNTY, to wit: 51.9378% to the CITY and 48.0622% to'the COUNTY, 28 OtOW Ap#&y bt n „the ev8grffthe CTd Y, iruzolagonyoi Section 2 t ,^a t nds tts {�gFail? a p 768W8 \760800.4. � 1 2 3 5 .6 7 8 9 10 11 12 8° Z 13 Fa Z9g 14 wr oa 15 aU 16 0 17 18 19 20 21 22 23 24 25 26 27 28 (c) I", Itt adiIibAtr`t a above, the CITY shall receive 100% of the property tax revenues from the Annexed Area that, absent annexation, would have been apportioned to the Orange County Library District and the Orange County Fire Authority. (d) COUNTY and AGENCY agree, from the effective date of this Agreement forward, AGENCY shall not issue redevelopment bonds backed by tax increment revenue from territory that includes the Annex Area unless the bonds terminate before 2036. The CTTY recognizes and acknowledges that so long as the AGENCY receives tax increment pursuant to Health and Safety Code Section 33670, the forgoing allocation of property taxes between the COUNTY and CITY applies only to those property taxes allocable to the COUNTY and CITY pursuant to subsection (a) of Health and Safety Code Section 33670 and that the balance of the property taxes form the Annex Area will be allocated to the AGENCY as tax increment pursuant to subsection (b) of Health and Safety Code Section 33670. 4. AGENCY COOPERATION TO ACQUIRE AND CONSTRUCT A FIRE STATION IN SANTA ANA HEIGHTS. 4.1. After the annexation of the Annex Area by the City, the AGENCY shall cooperate with and assist the CITY in locating and financing the acquisition of suitable land for a fire station to serve Santa Ana Heights, adjacent unincorporated areas (via mutual and automatic aid), and John Wayne Airport. 4.2. After annexation of the Annex Area by the CITY, the AGENCY shall cooperate and assist the CITY in financing the construction of a fire station to serve Santa Ana Heights, adjacent unincorporated areas (via mutual and automatic aid), and John Wayne Airport.. After its construction, the CITY, at its sole cost, will equip and operate the fire station. 4.3. The parties understand and agree that the AGENCY's financing of the costs of the land For and construction of the fire station is subject to and will require public hearings and the making of 75MV60800.4 Iq 1 2 3 4 5 6 7 8 9 10 11 12 8� 13 �o 8a 14 TO 15 d0 16 0 17 18 19 20 21 22 23 24 25 26 .27 28 findings pursuant to Health and Safety Code Sections 33445 and 33679 and that they will cooperate to hold the requisite hearings and make the findings before the Board of Supervisors of the COUNTY and City Council of the CITY so as to satisfy the requirements of Health and Safety Code Section 33445 an, 33679. 5. AGENCY COOPERATION TO PROVIDE LAND FOR COMMUNITY CENTER 5.1. After the annexation of the Annex Area by the CITY, the AGENCY shall cooperate with and assist the CITY in locating and financing the acquisition of suitable land for a community center to serve the Annex Area as well as the balance of the Project Area. 5.2. Once the property for the community center property has been identified, acquired by the AGENCY and conveyed to the CITY, the CITY will, at the CITY's sole cost, make all improvements to that property necessary for its use as a community center and shall operate the property as a community center. The AGENCY deed of the property to the CITY shall contain a right of reverter giving the AGENCY the right to revest title to the property in the AGENCY in the event the CITY fails to operate the property as a community center for a period of at least six consecutive months. 5.3. The parties understand and agree that the AGENCY's financing of the costs of the land for the community center is subject to and will require the making of findings pursuant to Health and Safety Code Section 33445 and that th ey will cooperate to facilitate the making of the requisite findings before the Board of Supervisors of the COUNTY and City Council of the CITY so as to satisfy the requirements of Health and Safety Code Section 33445. 6. MISCELLANEOUS PROVISIONS 6.1. Entire Agreement. This Agreement constitutes the entire Agreement between the parties with respect to the Matters stated herein. All previous proposals, offers, discussions, preliminary understandings, and other ,ommunications relative to this Agreement, oral or written, are hereby superseded, except to the extent hat they have incorporated into this Agreement No exceptions, alternatives or substitutes of any of the erms, conditions and/or provisions of this Agreement shall be considered valid unless specifically agree o in writing by both parties. 758\08\160800.4 2 ? 2j 3 4 5 6 7 8 9 10 11 12 z u °z 13 ?a �m 14 a m a� °F 15 u° m E 16 0 171 18 19 20 21 22 23 24 25 26 27 28 ,. f �ment�tnenfs..ri 1�Yo 2lteratton orYanafroia of the terms o this Ag[eemen? hall be valydrtess made gad srgned°tiy2he parq no oral understanding or agreement not incorporated herein shall be binding on either of the parties. 6.3. Consent To Breach Not Waiver. No term or provision of this Agreement shall be deemed waived and no breach excused, unless such waiver or consent shall be in writing and signed by the party claimed to have waived or consented. Any consent by any party to, or waiver of, a breach by the other, whether express or implied, shall not constitute consent to, waiver of, or excuse for any other different or subsequent breach. 6.4. Specific Performance. The parties acknowledge that monetary damages would be inadequate to remedy any breach of this Agreement by either party. Accordingly, the parties agree that any breach of this Agreement shall entitle the non - breaching party to file an action for specific performance in a court of competent jurisdiction. In no event shall either party be liable for monetary damages in the event of a breach of this Agreement. 6.5. Counterparts. This Agreement may be executed by the parties in counterparts, which counterparts shall be construed together and have the same affect as if all of the parties had executed the same instrument. 6.6. Further Actions and Instruments. Each of the parties shall cooperate with and provide reasonable assistance to the other to the extent contemplated by this Agreement to achieve the objectives of this Agreement... Upon the request of either parry at any time, the other party shall promptly execute, with acknowledgement or affidavit if reasonably required, and file or record instruments and writing. The parties shall also take my action as may be reasonably necessary under the terms of this Agreement to carry out the intent and o achieve the objectives of this Agreement. 6.7. Indemnification: 758\08\1 60800.4 .... . .. . .... .. . ... .. i i I CITY shall defend, indemnify, and hold harmless the COUNTY, the AGENCY, and its i 2 officers, employees and agents with respect to any claim, damage, loss, cause of action, lawsuit or 3 proceeding that arises out of or is in any way related to any act or omission by CITY or its officers, i 4 employees or agents in the performance or non - performance of any duty or obligation pursuant to this 5 Agreement. COUNTY and AGENCY shall defend, indemnify, and hold harmless the CITY and its i 6 officers, employees and agents with respect to any claim, damage, loss, cause of action, lawsuit or i 7 proceeding that arises out of or is in any way related to any act or omission by COUNTY, AGENCY or i 8 its officers, employees, or agents in the performance or non - performance of any duty or obligation E 9 pursuant to this Agreement. 10 6.8. General Law and Venue. 11 This AGREEMENT has been negotiated and executed in the state of California and shall d 12 be governed by and construed under the laws of the state of California. In the event of any legal action `; 13 to enforce or interpret this AGREEMENT, the sole and exclusive venue shall be a court of competent `o0 14 jurisdiction located in Orange County, California, and the parties hereto agree to and do hereby submit W� F15 to the jurisdiction of such court, notwithstanding Code of Civil Procedure Section 394. Furthermore, di 16 parties specifically agree to waive any and all rights to request that an action be transferred for trial to 17 another county. 18 6.9. Waiver of Jury. 19 Each party acknowledges that it is aware of and has had the opportunity to seek advice of 20 counsel of its choice with respect to its rights to trial by jury, and each party, for itself and its successors, 21 creditors, and assigns, does hereby expressly and knowingly waive and release all such rights to trial by 22 jury in any action, proceeding or counterclaim brought by any party hereto against the other (and/or 23 against its officers, directors, employees, agents, or subsidiary or affiliated entities) on or with regard to 24 any matters whatsoever arising out of or in any way connected with this Agreement and/or any other , 25 claim of injury or damage. 26 6.10. Heading/Severability. 27 28 �sswe,rsosao.a 1 2 3 4 5 6 7 8 9 10 11 12 z a 13 rZ ,o o0 14 uo- ^� 15 oo' u° 16 a 17 18 19 20 21 22 23 24 25 26 27 , 28.t The various headings and numbers herein, the grouping of provisions of this Agreement into separate clauses and paragraphs, and the organization hereof are for the purpose of convenience only and shall not limit or otherwise affect the meaning hereof. If any term, covenant, condition or provision of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the provisions hereof shall remain in full force and effect and shall in no way be affected, impaired or invalidated thereby. 6.11. Interpretation. This Agreement has been negotiated at arm's length and between persons sophisticated and knowledgeable in the matters dealt with in this Agreement. In addition, each party had been represented by experienced and knowledgeable independent legal counsel of their own choosing or has knowingly declined to seek such counsel despite being encouraged and given the opportunity to do so. Each party further acknowledges that they have not been influenced to any extent whatsoever in executing this Agreement by any other party hereto or by any person representing them, or both. Accordingly, any mile or law (including California Civil Code Section 1654) or legal decision that wouh require interpretation of any ambiguities in this Agreement against the party that has drafted it is not applicable and is waived. The provisions of this Agreement shall be interpreted in a reasonable manner to effect the purpose of the parties and this Agreement. 6.12. Authority. The parties to this Agreement represent and warrant that this Agreement has been duly authorized and executed and constitutes the legally binding obligation of their respective organization or entity, enforceable in accordance with its terms. Y / / / r 1I 758\081760800.4 a3 1 2 3 4 5 6 7 8 9 10 11 12 a 13 1z 5 ooO 14 p0 w 15 o� � 16 0 17 18 19 20 21 22 23 24 25 26 27 28 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year dated below. DATED: !D 2002 COUNTY OF ORANGE, a political subdivision of the State of California By ji� f azr of Its Board opervisors "COUNTY and DATEQ,:— . / d , 2002 ORANGE COUNTY DEVELOPMENT AGENCY, a public body corporate and politic By�t�G+ Chair of Its Board of Supervisors, Acting as the chair of the Board of the Orange County Development Agency "AGENCY" SIGNED AND CERTIFIED THAT A COPY OF THIS DOCUMENT HAS BEEN DELIVERED TO THE CHAIR OF THE BOARD AND THE CHAIR OF THE BOARD ACTING AS THE ORANGE COUNTY DEVELOPMENT AGENCY DARLENE J. BLOOM Clerk of the Board of Supervisor County of Orange, California APPROVED AS TO FORM: COUNTY COUNSEL By Robert \L. Austin, Deputy DATED: DATED: % 2002 1175WW60800.4 CITY OF NEWPORT BEACH By � aW i 1 2 3 4 5 6 -7 8 9 10 11 12 z a �z 13 za 80 14 15 wu 16 0 17 18 19 .20 21 22 23 24 25 26 27 28 Mayor of the City of Newport Beach APPROD AS TO FORM: r58W8\180800.4 a5