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2020/02/19 Salim Developer DEV2019-053: Newport Pointe ProjectFebruary 19,2020 Re Environmental Q uality Act ol'DEV 2019-053: Newpo rt Pointe Proiect Salim Development ("Developer") has requested that the City of Menifee C'City") consider the DEV2OI9-053: Newport Pointe Project, located on the southwest quadrant of Evans Road and Newport Road in the City of Menifee, and includes proposed commercial project will include approxim ately 84,243 square feet and approximately 493 parking stalls. ("Project"). To conduct its review and analysis ofthe Project, the City is required to conduct an environmental analysis ("CEQA Analysis") as required by the calilornia Environmental Quality Act, Public Resources Code section 21000 el seq., and its implementing guidelines found at Title l4 of the Califomia Code of Regulations section I 5000 e, seq. The City will commence to take the steps necessary. at Developers sole expense so that the City will be able to conduct and complete the CEQA Analysis. Developer has indicated that it is prepared to reimburse the City for all costs associated with the City's conduct, processing, and consideration of the CEQA Analysis including without limitation in-house staff time and resources, environmental consultant time and resources, City's legal counsel's time and resources, and other third party cost items. For example, the costs incurred by the City to engage an environmental review consultant, and any necessary sub-consultants or technical consultants, to conduct the CEQA Analysis shall be bome by Developer. This letter serves as an "Initial Deposit Agreement" by and between Developer and the City. To assist the City in underlaking their consideration of whether or not to approve the Project, Developer agrees to provide the City with an initial deposit in the amount of $96,571 ("Initial Deposit"). ]'he Initial Deposit is the estimated full amount of the costs to be incurred by the City in or in connection with the conduct, processing, review, evaluation, and action taken on the CEQA Analysis ("Analysis Costs"). The lnitial Deposit shall be deposited with the City, to the attention ofthe Finance Director, on or before February 19,2020 ("Effective Date"). The lnitial Deposit shall be used to reimburse the Analysis Costs. lf at any time the City in its sole discretion determines that the Analysis Costs will exceed the amounl of the Initial Deposit, then Developer shall, within ten ( I 0) days of receipt of written demand from the City' 6i0/0]lrl8"000ti 145981l0 2 a02/13,20 Agreement for the Deposit and Reimbursement ol' fees incurred by the City of Menifee in Conducting and Processing Analysis under the Califomia February 19,2020 Page 2 supplement the deposit amount so that the amount remaining on deposit with the City equals all remaining estimated Analysis Costs ("Deposit Supplement"). The City may from time to time repeat the process of revising the estimated Analysis Costs and requiring a revised deposit amount lrom Developer (upon ten (10) days written notice) ("Further Deposit Supplement"). If Developer fails to timely provide a Deposit Supplement or Further Deposit Supplement, the City may without further notice cease all work on the CEQA Analysis and order that all consultants, attorneys and third parties do the same ("Stop Work Order"). Developer understands and acknowledges that, even if the deposit is fully exhausted, it shall remain fully responsible for Analysis Costs incurred by the City up to the date that the City issues a Stop Work Order. Developer understands and acknowledges that City shall exercise its sole and absolute discretion in selecting and providing direction to any consultants or other third parties in connection with the CEQA Analysis. It is anticipated that the CEQA Analysis will be presented to the City of Menifee for consideration and potential action in the future. Developer and the City understand that the City is reserving the right to exercise its sole and absolute discretion as to all matters over which the City is, by [aw, entitled or required to exercise discretion. By executing this lnitial Deposit Agreement, the City is not committing or agreeing to undertake any activity requiring the subsequent discretion of the City , or any department of the City. The City's execution of this Initial Deposit Agreement is merely an agreement to allow the necessary work to be completed. at Developer's expense, to bring the CEQA Analysis forward for City consideration. Nothing in this Initial Deposit Agreement shall be deemed to constitute a commitment by the City to approve or certify the CEQA Analysis, or a prejudgment ofthe matters required to be considered as part of the decision whether or not to approve the Project. Please document Developer's concurence with these terms and limitations by signing below and retuming the originally executed letter to me, along with the Initial Deposit. Very truly yours, CITY OF MENIFEE Cheryl Kitzerow, Community Development Director APPROVED AS TO FORM: By: Je rey 680/0ltE5E-0001 145981l0 2 .02/1320 lching, City A rncy ACCEPTANCE OF INITIAL DEPOSIT AGREEMENT: SALIM DEVELOPMENT tlv Date: 680/03 t858-0001 145981 10.2 a02/13/20 February 19,2020 Page 3