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2021/03/22 KB Home Coastal, Inc. TM 29835-2 Model Home Complex AgreementCITY OF MENIFEE Gommunity Development Department Model Home Complex Agreement for Tract Map No. 29835-2 This agreement ("Agreement") is made this LLP aay ot 2021 , by and between the City of Menifee ("City") and KB Home Costal lnc., a California Corporation, ("Develope/') (collectively the "Parties") in exchange for good and valuable mnsideration 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 L of Plot Plan No. PLN21-OO27 to this Agreement on property located as Lots 4 & 5 (Models) and Lot 3 (Temporary Parking) of lndigo within the Undenayood Development (APN 333-070-030), within approved tentative map 29835-2 (the "Tract" or "Tract Map") upon completion of the terms and conditions set forth in this Agreement. The project site is part of a Planned Residential Development (PDO-l). The Property's land use designation under the General Plan is 2.1-5 duiac Residential (2.1-5 R) and Rural Residential 5 Acre Minimum (RRS). 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 asprovided under the State of California Subdivision Map Act. Developer has requested approval to construct two (2) 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 customersiclients, 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. DocuSign Envelope ID: 48330432-C192-4226-ACC4-3B07513407E0 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 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. 29835-2, unless otherwise agreed to in writing by the City. At a minimum, Developer shall remove 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 lotforthe Model Home Complex, and shall remove/modify/reconstruct the Sales Office to a standard garage, infill any a6ess 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 finaldwelling 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. ln 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 otheMise extended by mutual agreement of the Parties in writing. The location of the dwellings subject to this Model Home Complex Agreement is lot specific and theapprovals 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 sumof 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. Developer shall notify the City of completion of any removal/modiflcation/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. lf the City determines and is satisfied that Developer has removed, amended, modified or reconstructed, or caused the removal, amendment, modificalion or reconstruction of the individual dwellings within the Model Home Complex to the level and degree necessary 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. lf Developer, or a representative, or agent thereof, fails to remove, amend, modify or reconstruct, or cause the removal, amendment, modification or reconstruction of the indlvidual 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 lerms of this Agreement. Any and all costs incurred by the City, 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 Page 2 of 5 Model Home Complex Agreement for Tract No. 29835-2 DocuSign Envelope ID: 48330432-C192-4226-ACC4-3B07513407E0 Certificate of Occupancy nor Final lnspection shall be issued or conducted upon the dwellings subject tothis Model Home Complex Agreement until such reimbursement has been provided to th; City. Any excess surety, cash deposit or release of bonds still in the position of the City following any removai,amendment, modification or reconstruction of the above noted dwellings shatt be returned to theundersigned within thirty (30) days of the completion of such work. No Certificate of Occupancy or Final lnspection 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 ModelHome Complex until such time as the dwellings are removed, amended, modified o; 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 ("lndemnified Parties") from and against any and jll 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 legallyliable ("lndemnors"), or arising from Developer's reckless or willful misconduct, or arising iromDeveloper's or lndemnors' 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' feei incurred in connection therewith. Model Home Complex Agreement for Tract No. 2SBgb-2 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 mnnection 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. ln 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 theperformance 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, and dwellings constructed thereon, listed below within Tract No. 29835-1. Lot No. 5 - Plan 3C Lot No. 4 - Plan 28 Lot No. 3 - Plan No. (N/A) Temporary Parking Page 3 of 5 DocuSign Envelope ID: 48330432-C192-4226-ACC4-3B07513407E0 Model Home Complex Agreement for Tract No. 29835-2 Itemized list of removal, amendment, modification or reconstruction required by this Agreement andassociated anticipated costs for surety purposes. 1 . Remove Plants/lrrigation $2,500.002. Removal of all model home signage; $500.003. Removal of driveways and parking lot; g5,0OO.O04. Clean up ofany painted curbs; 95005, Removal of sales office; $10,000.00 (per sales office)6. Removal Miscellaneous ltems 95,000.00 Total: $23,500.00 Deposit (Returnable upon proof of completion of all items listed) Page 4 of 5 DocuSign Envelope ID: 48330432-C192-4226-ACC4-3B07513407E0 Model Home Complex Agreement for Tract No. 2gB3S.2 This Agreement represents the full and entire agreement of the parties and shall be effective as of the date first set forth above. KB Home Costal lnc. ("Developer") Dated By rg re for President or other Category 1 Officer) (Print Name) U (Title Dated: j '2_l Byb nature for Secretary or other ory 2 Officer) Vev^r<ll W,lli c,lm-) (Print Name) Drf. trcv ro Plonnrrug (Title) (Title) CITY OF MENIFEE ("city") Dated:By Cheryl Community ment Director Approved as to Form: Jeffrey T. Melching City Attorney c Page 5 of 5 d DocuSign Envelope ID: 48330432-C192-4226-ACC4-3B07513407E0