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2018/11/15 Project Royal, LP TM 37067CITY OF MENIFEE Community Development Department Building Agreement for Unrecorded Tract Map (Tract No. 37067) THE FOLLOWING IS AGREED TO IN CONSIDERATION FOR ISSUING MODEL HOME BUILDING PERMITS FOR THE DWELLINGS LISTED BELOW, WHICH ARE DWELLINGS TO BE BUILT WITHIN A MODEL HOME COMPLEX PRIOR TO THE FORMAL RECORDATION OF TRACT NO. 37067 The property is located within APNs 360-860-003 through 360-860-008 at the northwest corner of La Piedra Road and Great Oak Road and has a Land Use and zoning designation of Specific Plan (The Town Center Specific Plan). The property is within the City of Menifee and is the property of PROJECT ROYAL, LP. (Developer). Such zoning and General Plan designation allows the construction of one (1) single-family dwelling per recorded lot, with a subordinate accessory dwelling unit under the provisions of "Accessory Dwelling Units" as defined by Menifee Municipal Code, Chapter 9.43. The Developer is proposing to construct five (5) model homes and associated facilities for the display of home product type and the sale of homes (sales office use) in the, as yet unrecorded Tract No. 37067. Developer agrees to remove all of the model homes on, or before November 9, 2019 if Tract Map No. 37067 is not recorded by said date. However, if prior to November 9, 2019, the Developer obtains all City approvals, including approval and recordation of the final tract map, to convert the model homes into single-family dwellings with accompanying accessory dwelling units, as permitted by the Menifee Municipal Code, the Developer may continue to use the model homes. A surety, in a form acceptable to the City Manager of the City of Menifee, is herewith provided in the sum of $50,000.00 (amount at $10,000.00 per model home to be removed), which is provided, and Developer authorizes the City of Menifee, its employees, representatives or agents, to enter the property/tract, physically demolish and remove all model homes per recorded lot if Tract Map No. 37067 is not recorded on or before November 9, 2019, if Developer has not already caused such removal by this date or Developer has not obtained all appropriate approvals to have the model homes converted into single family dwellings and/or accompanying accessory dwelling units. Any and all costs, including any fees from agencies other than the City, including attorney fees, for said demolition which exceed the $50,000.00 surety shall be reimbursed by the Developer to the City of Menifee within thirty (30) days of such demolition. No Certificate of Occupancy, nor Final Inspection shall be issued or conducted upon the dwelling and accessory dwelling unit until such reimbursement has been provided to the City. Any excess surety, cash deposit or release of bonds still in the possession of the City following any removal for the above noted buildings shall be returned to Developer within thirty (30) days of the demolition noted. Any surety, cash deposit or release of bonds in the possession of the City following the recordation of Tract Map No. 37067 shall be returned to Developer within thirty (30) days of the date the City receives written verification of said recordation. It is understood and agreed that all physical public infrastructure improvements required for the safe ingress and egress to the model homes 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 homes to the public. Developer shall assure the physical safety of customers/clients that may visit the model homes approved under this Agreement. While construction 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. No Certificate of Occupancy shall be requested or granted prior to recordation of the map. A temporary Certificate of Occupancy may be issued to allow the furnishing, preparation work for display and display 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 ("Indemnitors"), or arising from Developer's reckless or willful misconduct, or arising from Developer's or Indemnitors' 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. This Agreement is in reference to the lots listed below within the yet to be recorded Tract 37067. Lot Nos. 51/52 - Temporary model home parking lot Lot No. 53 - Plan 2B "Cottage" Lot No. 54 - Plan 5E "Tuscan" Lot No. 55 - Plan 4C "Spanish" Lot No. 56 - Plan 3A "Bungalow" Lot No. 57 - Plan 1 B "Cottage" PROJECT ROYAL, LP ("Developer") Dated: //3-// By .. (Signature for President or other Category 1 Officer) (Print Name) / 1 I (Title) Dated: By (Signature for Secretary or other Category 2 Officer) (Print Name) (Title) CITY OF MENIFEE ("City") Dated: By Cheryl itzero �j Community Development Director Approved as to Form: r Jeffrey T. Melching City Attorney