RecDoc 2026-002924 Development Agreement 901 El Camino Real

Browse Search

ARTICLE 2. COMMUNITY BENEFITS Section 2.1 Community Benefits Obligations. In consideration of the rights and benefits conferred by City to Developer under this Agreement, Developer shall perform and provide the specific Community Benefits described in the Project Approvals, Recital P, and in this Article 2, some of which may exceed the dedications, conditions, and exactions that City may impose under applicable law, but which the Parties expressly agree were negotiated at arm's length in consideration of the rights and benefits conferred by City to Developer under this Agreement. In the event of any inconsistencies with respect to Community Benefits, this Article 2 of this Agreement shall control. Section 2.2 Affordable Housing. A. Affordable Housing Project as a Community Benefit. To satisfy the requirements under the City's Affordable housing Ordinance, as an alternative to paying the impact fee otherwise due under the Affordable Housing Ordinance ("Affordable Housing Impact Fee") and prior to or concurrently with the issuance of the first vertical building permit (including but not limited to, permits for foundation and/or core/shell and excludes stand-alone grading permits, demolition permits or other similar horizontal permits necessary for the relocation of Franklin Street or recordation of the final map that is necessary to create the final Property) ("Vertical Building Permit") for the 901 EI Camino Real Project, the Developer has agreed to donate the Affordable Site to the Affordable Housing Partner for the development of the Affordable Housing Project, pursuant to the terms of the Affordable Housing Land Donation Agreement (attached as Exhibit F and made a part hereof) and Affordable Housing Plan submitted as part of the consideration for the 901 EI Camino Real Project Approvals. As provided in the Project Approvals, the appraised value of the Affordable Site is Ten Million Dollars ($10,000,000), which is currently Two Million, Seven Hundred Twelve Thousand, Two Hundred Twenty -Six Dollars ($2,712,226) greater than the Seven Million, Two Hundred Eighty -Seven Thousand, Seven Hundred Seventy -Four ($7,287,774) Affordable Housing Impact Fee (calculated under the current fee schedule) required to be paid pursuant to the Affordable Housing Ordinance. In addition, the number of affordable units to be constructed will result in sixty-eight (68) more units than required under the Affordable Housing Ordinance. Accordingly, to the extent the Affordable Housing Project exceeds what is required under the City's Affordable Housing Ordinance, the Affordable Housing Project is determined to be a Community Benefit under this Agreement. 1. If the Developer is not in default under the Land Donation Agreement, but is unable to donate the Affordable Site to the Affordable Housing Partner pursuant to the terms of this Agreement and the Affordable Land Donation Agreement (e.g., it refusal or inability of the Affordable Housing Partner to close escrow when the Developer is ready, willing and able to close escrow), the Developer agrees to take the following steps in the following order, after written notice to the City and good faith cooperation, to meet its affordable housing obligations under this Section 2.2, prior to the issuance of the Vertical Building Permit for the 901 EI Camino Real Project: a. Make commercially reasonable and good faith efforts, not to exceed six (6) months from the date of the notice to the City, to substitute the Affordable Site and Affordable Housing Project pursuant to Section 2.2.D of this Agreement and, if applicable, seek AT FY/AGR/2025.085-901 EL CAM I NO REAL DA REV: 08-01-25 VR Page 8 of 48