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2018/02/22 Lennar Homes of California, Inc. Model Home Complex Agreement for TR37179 Y _.. 4AENIFEE1 CITY OF MENIFEE Community Development Department Model Home Complex Agreement for Tract Map No. 37179 This agreement ("Agreement") is made this L day of V c-Vwo.� 2018, by and between the City of Menifee ("City") and Lennar Homes of California, Inc., a California Corporation, ("Developer") (collectively the "Parties") in exchange for good and valuable consideration receipt of which is hereby acknowledged. The City agrees to issue Building Permits for a model home complex and associated facilities (the "Model Home Complex") as set forth on Exhibit A to this Agreement on property located as Lots 30 through 35 within Tract No. 37179 (the "Tract" or "Tract Map") upon completion of the terms and conditions set forth in this Agreement. The Tract is within the City of Menifee and is the property of Lennar Homes of California, Inc., ("Developer"). The Tract has a General Plan designation and zoning classification of Specific Plan. Such zoning and General Plan designation allows the construction and sale of individual single family dwellings, one per recorded lot, with City approval and recordation of a Tract Map as provided under the State of California Subdivision Map Act (property subject to unrecorded Final Map Agreement). Developer has requested approval to construct four(4) model homes and associated facilities within the Model Home Complex for the display of home product types and the sale of homes ("Sales Office") in the Tract. Because the Model Home Complex will contain dwellings that possess atypical features from those of a standard home, such as office accommodations, storefront windows instead of garage door, trap fencing, grass in lieu of a finished driveway, the City agrees to allow construction and operation of such atypical features under this Agreement, for a period not to exceed three (3) years unless, extended in writing as provided herein and subject to the requirements and stipulations set forth in this Agreement. It is understood and agreed that all physical public infrastructure improvements required for the safe ingress and egress to the Model Home Complex from existing, improved and accepted public rights-of-way shall be in place to the satisfaction of the City's Engineering Department, regardless of whether such improvements have been finally approved and accepted by the City prior to opening the Model Home Complex to the public. Developer shall assure the physical safety of customers/clients that may visit the Model Home Complex approved under this Agreement. While phasing of development shall be allowed, each phase must be approved by the City and constructed in such a manner as to assure the safety of customers/clients, as well as new home owners and all construction shall be in compliance with all state and federal regulations, including without limitation, compliance with the Americans with Disabilities Act. Developer agrees to remove, amend, modify or reconstruct, or cause the removal, amendment, modification or reconstruction of the individual dwellings within the Model Home Complex to the Model Home Complex Agreement for Tract No. 37179 level and degree necessary to assure that such structures are clearly identifiable as a typical home within the surrounding neighborhood of the dwelling units upon full occupancy, but in no case more than six (6) months from the close of escrow from the last dwelling sold by Developer within Tract No. 37179, unless otherwise agreed to in writing by the City. At a minimum, Developer shall remove of any trap fencing, all signage or other displays, attraction or directional devices used to direct individuals to the Model Home Complex, remove any parking surface utilized as a parking lot for the Model Home Complex, and shall remove/modify/reconstruct the Sales Office to a standard garage, infill any access ways within or through block walls or fences to the Model Home Complex, remove any landscaping/associated irrigation and install City required driveway surfaces where needed, and remove all other ancillary items atypical of a single-family residential dwelling. The above noted removal, amendment, modification or reconstruction of the individual dwellings within the Model Home Complex shall be completed within thirty (30) days from the close of escrow of the final dwelling within the approved Tract, or by the close of escrow of any dwelling within the Model Home Complex, whichever comes first, unless otherwise mutually agreed in writing by and between the City and Developer. In no case, however, shall the modifications agreed to under this Agreement remain in place beyond three (3) years from the date of this Agreement, unless otherwise extended by mutual agreement of the Parties in writing. The location of the dwellings subject to this Agreement is lot specific and the approvals granted herein shall not be transferable between lots. This limitation, however, does not preclude the City and property owner from amending this Agreement, in writing, to establish alternative location(s) for the Model Home Complex, or individual dwellings within a Model Home Complex. A surety, in a form acceptable to the City Manager of the City of Menifee, is herewith provided in the sum of (as detailed below) for the express purpose of the removal/modifications/reconstruction of the Model Home Complex as in this Agreement, shall be provided prior to and as an integral part of entering into this Agreement. The estimated cost of the removal/modifications and/or reconstruction of the homes is Forty-two Thousand, One Hundred Dollars and no cents ($42,100.00). The Developer shall notify the City of completion of any removal/modification/reconstruction undertaken pursuant to the terms of this Agreement and the City shall inspect and review the Model Home Complex within thirty (30) days of receipt of such notification. If the City determines and is satisfied that Developer has removed, amended, modified or reconstructed, or caused the removal, amendment, modification or reconstruction of the individual dwellings within the Model Home Complex to the level and degree necessary to assure to assure that such structures are clearly identifiable as typical homes within the surrounding neighborhood of the dwelling units , any surety, cash deposit or release of bonds in the possession of the City directly associated with the Model Home Complex following such removal, amendment, modification or reconstruction shall be returned to the undersigned within thirty (30) days of the written notification by the property owner or his/her representative of the completion of such work. If Developer, or a representative, or agent thereof, fails to remove, amend, modify or reconstruct, or cause the removal, amendment, modification or reconstruction of the individual dwellings within the Model Home Complex to the satisfaction of the City, the undersigned authorizes the City, its employees, representatives or agents, to enter the tract, physically remove, amend, modify or reconstruct, the dwellings within the Model Home Complex to a level and degree necessary to assure compliance with the terms of this Agreement. Any and all costs incurred by the City, Page 2 of 5 Model Home Complex Agreement for Tract No. 37179 including any fees from agencies other than the City, including attorney fees, for said removal, amendment, modification or reconstruction shall be deducted from the surety noted above and provided by Developer. Any costs incurred by the City in excess of the surety established herein and on file with the City shall be reimbursed by Developer to the City within thirty (30) days of the written notification of the completion of such work. Neither a Certificate of Occupancy nor Final Inspection shall be issued or conducted upon the dwellings subject to this Model Home Complex Agreement until such reimbursement has been provided to the City. Any excess surety, cash deposit or release of bonds still in the position of the City following any removal, amendment, modification or reconstruction of the above noted dwellings shall be returned to the undersigned within thirty (30) days of the completion of such work. No Certificate of Occupancy or Final Inspection shall be requested or granted for any individual dwelling subject to this Model Home Complex Agreement prior to the conversion of the dwellings within the Model Home Complex until such time as the dwellings are removed, amended, modified or reconstructed, as identified herein. A temporary Certificate of Occupancy may be issued to allow the furnishing, preparation of work for display, display and use as office space of the Model Homes to potential buyers. To the full extent permitted by law, Developer agrees to indemnify, defend, and hold harmless the City, its officers, employees, agents, and volunteers ("Indemnified Parties")from and against any and all actions, either judicial, administrative, arbitration, or regulatory, damages to persons or property, losses, costs, penalties, obligations, errors, omissions, or liabilities whether actual or threatened ("Claims or Liabilities") that may be asserted or claimed by any person, firm, or entity arising out of or in connection with the performance of this Agreement, operations, or activities provided herein of Developer, its officers, employees, agents, subcontractors, or invitees, or any individual or entity for which Developer is legally liable ("Indemnors"), or arising from Developer's reckless or willful misconduct, or arising from Developer's or Indemnors' negligent performance of or failure to perform any term, provision, covenant, or condition of this Agreement, and in connection therewith: Developer shall defend (with counsel selected by City) any action or actions filed in connection with any of said Claims or Liabilities and will pay all costs and expenses, including legal costs and attorneys' fees incurred in connection therewith. Developer will promptly pay any judgment rendered against City, its officers, agents, or employees for any such Claims or Liabilities arising out of or in connection with the performance of or failure to perform under this Agreement, operations or activities of Developer hereunder; and Developer agrees to save and hold City, its officers, agents, and employees harmless therefrom. In the event City, its officers, agents, or employees is made a party to any action or proceeding filed or prosecuted against Developer for such damages or other claims arising out of or in connection with the performance of or failure to perform the Agreement, operation or activities of Developer hereunder, Developer agrees to pay to City, its officers, agents, or employees, any and all costs and expenses incurred by City, its officers, agents, or employees in such action or proceeding, including but not limited to, legal costs and attorneys' fees. This Agreement shall be binding upon the heirs, executors, administrators, successors, and assigns of the Parties. Page 3 of 5 Model Home Complex Agreement for Tract No. 37179 This Agreement is in reference to the lots, and dwellings constructed thereon, listed below within Tract No. 37179. Lot No. 30-31 Plan No. (N/A) Parking Lot Lot No. 32— Plan 1AL Lot No. 33—Plan 2CL Lot No. 34—Plan 4DR Lot No. 35—Plan 3BL Itemized list of removal, amendment, modification or reconstruction required by this Agreement and associated anticipated costs for surety purposes. 1. Removal of plantings and irrigation within the driveways of the remaining units ($1,250 E per house); $5000 2. Installation of driveways ($1,000 per house); $4,000.00 3. Removal of all model home signage; $300.00-$500.00 4. Removal of parking lots; $5,000.00 5. Clean up of any painted curbs; $100.00 k 6. Removal of sales office; $10,000.00 (per sales office) 7. Replacement of storefront windows on garage for standard garage door; $2,500.00 8. Removal of all other ancillary items not incidental of a typical single-family resident unit. $15,000.00 Total: $42,100.00 Deposit(Returnable upon proof of completion of all items listed) This Agreement represents the full and entire agreement of the parties and shall be effective as of the date first set forth above. LENNAR HOMES OF CALIFORNIA, INC. ("Developer') Dated: By ��— Geoffrey Smith (Print Name) Vice President (Title) Dated: By �— (Signature for Secretary or other Category 2 Officer) Mark Torres (Print Name) Vice President Page 4of5 Model Home Complex Agreement for Tract No. 37179 CITY OF MENIFEE ("City") Dated: 1 La By Cheryl Kitzerow Community-Development Director A7 as to Form: J,eff�e�/l' Melching City At{orney Page 5 of 5 CALIFORNIA ALL PURPOSE ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document,to which this certificate is attached, and not the truthfulness, accuracy,or validity of that document. STATE OF CALIFORNIA } COUNTY OF Riverside } On February 21, 2018 before me, Amy R.Williams Notary Date Insert Name and Title of the officer Public, personally appeared Geoffrey Smith Name(s)of Signer(s) who proved to me on the basis of satisfactory evidence to be the person( whose name(9) is/ate subscribed to the within instrument and acknowledged to me that helOyOrAhtq executed the same in hisffi& Wr authorized capacity(iL-s), and that by his/#d'rjt iY, signature(x) on the instrument the person(g,),or the entity upon behalf of which the person(y)acted,executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. / a •.;� rk, '� AMYR. Nlw lws C@nnission 20643 97 z Notary Public•California z 4 zRivers County m Signature: Comm. ires A r 13.2018 -------------------------------------------------------------OPTIONAL------------------------------------------------------------- Though this section is optional, completing this information can deter alteration of the document or fraudulent attachment of this form to an unintended document. Description of Attached Document Title or Type of Document: Document Date: Number of Pages: Signer(s) Other Than Named Above: Capacity(ies)Claimed by Signer(s) Signers Name: Signers Name: ❑ Corporate Officer—Title(s) ❑ Corporate Officer—Title(s) ❑ Partner-❑ Limited ❑ General ❑ Partner-❑ Limited ❑General ❑ Individual ❑Attorney in Fact ❑ Individual ❑Attorney in Fact ❑Trustee ❑Guardian or Conservator ❑Trustee ❑Guardian or Conservator ❑ Other: ❑ Other: Signer is Representing: Signer is Representing: CALIFORNIA ALL PURPOSE ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document,to which this certificate is attached,and not the truthfulness,accuracy,or validity of that document. STATE OF CALIFORNIA } COUNTY OF Riverside } On February 21, 2018 before me, Amy R. Williams Notary Date Insert Name and Title of the officer Public, personally appeared Mark Torres Names)of Signer(s) who proved to me on the basis of satisfactory evidence to be the persona) whose nameN) is/mw subscribed to the within instrument and acknowledged to me that heAqheftbwW executed the same in hisAh W0tr authorized capacityV", and that by his/idFA4TLXx signatureM on the instrument the persona or the entity upon behalf of which the personM acted,executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. ;.�.:., AMY R. WILLIAMS Commission#r 2064397 z Notary Public-California Riverside County / My Comm.E ires Apr 13 201 Signature: -------------------------------------------------------------OPTIONAL------------------------------------------------------------- Though this section is optional, completing this information can deter alteration of the document or fraudulent attachment of this form to an unintended document. Description of Attached Document Title or Type of Document: Document Date: Number of Pages: Signer(s) Other Than Named Above: Capacity(ies)Claimed by Signer(s) Signers Name: Signers Name: ❑ Corporate Officer—Title(s) ❑ Corporate Officer—Title(s) ❑ Partner-❑ Limited ❑General ❑ Partner-❑ Limited ❑General ❑ Individual ❑Attorney in Fact ❑ Individual ❑Attorney in Fact ❑Trustee ❑Guardian or Conservator ❑Trustee ❑Guardian or Conservator ❑ Other: ❑ Other: Signer is Representing: Signer is Representing: Community Development Department FAITHFUL PERFORMANCE BOND FOR MODEL HOME COMPLEX AGREEMENT CITY OF MENIFEE, STATE OF CALIFORNIA (Government Code Section 66499.1) Tract/Parcel Map 37179 Total $ 42,100.00 Bond No. 30027941 Premium: $158.00/annum The Village DA4 (Menifee Town Center), Lots 32-35 Surety The Continental Insurance Company Principal Lennar Homes of California, Inc. Address 333 South Wabash Avenue Address 980 Montecito Drive, Suite 302 City/State Chicago, IL City/State Corona, CA Zip code 60604 Zip 92879 Phone (312) 822-5000 WHEREAS,the City of Menifee, State of California, and, Lennar Homes of California, Inc. (hereinafter designated as "principal") have entered into, or are about to enter into, the attached agreement(s) whereby principal agrees to install and complete the above designated landscape project, related to (Tract/Parcel)37179, which agreement(s)is/are hereby referred to and made a part hereof; and, WHEREAS, said principal is required under the terms of said agreement(s) to furnish bond(s) for the faithful performance of said agreement(s); NOW,THEREFORE,we the principal and The Continental Insurance Company , as surety, are held and firmly bound unto the City of Menifee in the penal sum of Forty Two Thousand One Hundred Dollars and Zero Cents. ($42,100.00) lawful money of the United States,for the payment of which sum will and truly be made,we bind ourselves, our heirs,successors,executors and administrators,jointly and severally,firmly by these presents. The condition of this obligation is such that if the above bonded principal, his or Its heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions and provisions in the said agreement and any alteration thereof made as therein provided, on his or their part,to be kept and performed at the time and in the manner therein specified, and in all respects according to their true intent and meaning, and shall indemnify and save harmless the City of Menifee, its officers, agents and employees, as therein stipulated, then this obligation shall become null and void; otherwise; it shall remain in full force and effect. As a part of the obligation secured hereby and in addition to the face amount specified therefore,there shall be included costs and reasonable expenses and fees, including reasonable attorney's fees, incurred by the City in successfully enforcing such obligation, all to be taxed as costs and included In any judgment rendered. tee._ FAITHFUL PERFORMANCE BOND FOR MODEL HOME AGREEMENT The surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the terns of this agreement or to the work to be performed there under or the specifications accompanying the same shall in anywise affect its obligation on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition. Surety further stipulates and agrees that the provisions of Section 2845 of the Civil Code and commencement of construction are not conditions precedent to surety's obligations hereunder and are hereby waived by surety. IN WITNESS WHEREOF, this instrument has been duly executed by the principal and surety above named, on February 16 , 2018 NAME OF PRINCIPAL: Lennar Homes of California, Inc., a California corporation AUTHORIZED SIGNATURE(S): By: Name: Clea" Smrtk Title: Vice �r2Sid2n ' (IF CORPORATION,AFFIX SEAL) NAME OF SURETY: The Continental Insurance Compa y AUTHORIZED SIGNATURE: Mechelle Larkin Its Attorney-in-Fact Title (IF CORPORATION,AFFIX SEAL) ATTACH NOTARIAL ACKNOWLEDGMENT OF SIGNATURES OF PRINCIPAL AND ATTORNEY-IN-FACT. CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California ) County of Orange ) On FEB 16 2018 before me, Kathy R. Mair, Notary Public DATE (Name of Notary Public and Title"Notary Public"] personally appeared Mechelle Larkin - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - (Name(s)of Signer(s)] who proved to me on the basis of satisfactory evidence to be the person(}whose names} is/aye subscribed to the within instrument and acknowledged to me that he/she/they executed the same in #is/her/thei-r authorized capacity0e64, and that by his/her/theif signature(( on the instrument the person(s-}, or the entity upon behalf of which the person(-} acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. a S �'\ KATHY R.hIAIR =�y Notary Puolic-CaVornia Ora ngeCounty L -- Commission=2.tv \� 66 P;IyComm.ExDi,es 2 May 2.20� Signa ure of tary Public Place Notary Seal Above ---------------------------------------------- OPTIONAL --------------------------------------------- Though this section is optional, completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document. Description of Attached Document Title or Type of Document: Document Date: Number of Pages: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer(s) Signer's Name: Mechelle Larkin Signer's Name: ❑ Corporate Officer—Title(s): ❑ Corporate Officer—Title(s): ❑ Partner— ❑ Limited ❑ General ❑ Partner— ❑ Limited ❑ General ❑ Individual ® Attorney-in-Fact ❑ Individual ❑ Attorney-in-Fact ❑ Trustee ❑ Guardian or Conservator ❑ Trustee ❑ Guardian or Conservator ❑ Other: ❑ Other: Signer Is Representing: Signer is Representing: POWER OF ATTORNEY APPOINTING INDIVIDUAL ATTORNEY-IN-FACT Know All Men By These Presents,That The Continental Insurance Company,a Pennsylvania insurance company,is a duly organized and existing insurance company having its principal office in the City of Chicago,and State of Illinois,and that it does by virtue of the signature and seal herein affixed hereby make,constitute and appoint Kathy R Mair,Mechelle Larkin,Individually of Irvine,CA,its true and lawful Attomey(s)-in-Fact with full power and authority hereby conferred to sign,seal and execute for and on its behalf bonds, undertakings and other obligatory instruments of similar nature -In Unlimited Amounts- and to bind them thereby as fully and to the same extent as if such instruments were signed by a duly authorized officer of the insurance company and all the acts of said Attorney,pursuant to the authority hereby given is hereby ratified and confirmed. This Power of Attorney is made and executed pursuant to and by authority of the By-Law and Resolutions,printed on the reverse hereof,duly adopted,as indicated,by the Board of Directors of the insurance company. In Witness Whereof,The Continental Insurance Company has caused these presents to be signed by its Vice President and its corporate seal to be hereto affixed on this 28th day of July,2017. •'" The Continental Insurance Company ,;��,�;trts�,�•., _ C% SEA low n • �-odd@* � Paul .B Ar Vice President State of South Dakota,County of Minnehaha,ss: On this 28th day of July,2017,before me personally came Paul T.Bruflat to me known,who,being by me duly sworn,did depose and say: that he resides in the City of Sioux Falls,State of South Dakota;that he is a Vice President of The Continental Insurance Company,a Pennsylvania insurance company,described in and which executed the above instrument;that he knows the seal of said insurance company;that the seal affixed to the said instrument is such corporate seal;that it was so affixed pursuant to authority given by the Board of Directors of said insurance company and that he signed his name thereto pursuant to like authority,and acknowledges same to be the act and deed of said insurance company. J.MOHR �woraavvuwc SIX1TH 64NOTA SEA My Commission Expires June 23,2021 J.Mohr Notary Public CERTIFICATE I,D.Johnson,Assistant Secretary of The Continental Insurance Company,a Pennsylvania insurance company,do hereby certify that the Power of Attorney herein above set forth is still in force,and further certify that the By-Law and Resolution of the Board of Directors of the insurance company printed on the reverse hereof is still in force. In testimony whereof I have hereunto subscribed my name and affixed the seal of the said insurance company this day of Fig 16 2018 ��y �k• The Continental Insurance Company iNs Cti S won CQ 10 rr b• 1; •��"�•"Ow• D.Johnson Assistant Secretary Form F6850-4/2012 CALL. FORMA ALL PURPOSE ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document,to which this certificate is attached,and not the truthfulness, accuracy,or validity of that document. STATE OF CALIFORNIA } COUNTY OF Riverside } On February 21,2018 before me, Amy R.Williams Notary Date Insert Name and Title of the officer Public, personally appeared Geoffrey Smith Name(s)of Signer(s) who proved to me on the basis of satisfactory evidence to be the person(-q whose name() is/aDa subscribed to the within instrument and acknowledged to me that he/Oy'-ANC executed the same in his `fytMr authorized capacity(ies), and that by his/+Wr-jt i1( signature(s) on the instrument the person(M,or the entity upon behalf of which the person(Y)acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. ! ` ; APAY R. WILLIAMS a' Commission ;,2064397 Notary)Public-California z z�7 i Riverside County 'l P.ry Comm.Enoires Apr 13,2018 Signature: / V .J -------------------------------------------------------------OPTIONAL------------------------------------------------------------- Though this section is optional, completing this information can deter alteration of the document or fraudulent attachment of this form to an unintended document. Description of Attached Document Title or Type of Document: Document Date: Number of Pages: Signer(s) Other Than Named Above: Capacity(ies)Claimed by Signer(s) Signers Name: Signers Name: ❑ Corporate Officer—Titles) ❑ Corporate Officer—Title(s) ❑ Partner-❑ Limited ❑ General ❑ Partner-❑ Limited ❑General ❑ Individual ❑Attorney in Fact ❑ Individual ❑Attorney in Fact ❑Trustee ❑Guardian or Conservator ❑Trustee ❑Guardian or Conservator ❑ Other: ❑ Other: Signer is Representing: Signer is Representing: