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7.1.F. - Page 1 <br /> REPORT <br /> To the Honorable Mayor and City Council <br /> From the City Manager <br /> April 7, 2014 <br /> SUBJECT <br /> Standstill Agreement Regarding Laurel Way Joint Venture <br /> RECOMMENDATION <br /> By Motion, Authorize City Attorney to Execute Standstill Agreement between Laurel <br /> Way Joint Venture and the City of Redwood City. <br /> BACKGROUND <br /> On September 24, 2013, the City Council heard cross appeals of the certification of the <br /> Revised Final Environmental Impact Report and approval of a Planned Development <br /> Permit for the Laurel Way Joint Venture project. On January 13, 2014, the City Council <br /> adopted a resolution denying the appeal filed by Laurel Way Joint Venture (LWJV) and <br /> partially denying and partially granting the appeal filed by Save Laurel Way. <br /> ANALYSIS <br /> Both City and LWJV have been made parties to litigation brought by an unincorporated <br /> association named Save Laurel Way ("SLW") filed in San Mateo Superior Court, No. <br /> 526753 (the "Action"). The Action challenges the validity of both the PD Permit and the <br /> El R. <br /> Pursuant to City municipal code requirements and project conditions of approval, LWJV <br /> has the duty to defend and indemnify the City against third party actions contesting the <br /> City decisions. However, LWJV contends that the conditions imposed by the City on the <br /> PD Permit as to house size are so onerous as to constitute a "taking" under federal and <br /> state constitutions and the doctrine of inverse condemnation, and that the City is <br /> required to compensate LWJV and the property owners who comprise LWJV <br /> (collectively, the "Lot Owners") for the "taking." <br /> However, if SLW should prevail in the Action, LWJV's claim for a "taking" may be found <br /> not "ripe" for determination and, therefore, may be procedurally invalid, causing a <br /> multiplicity of litigation. Accordingly, the City and LWJV believe it is in their best interests <br /> to enter into an agreement to avoid asserting, prosecuting, or defending claims against <br /> one another during the term of this Agreement and to preserve the validity of their <br /> respective claims as specified herein pending termination of this Agreement. <br /> Accordingly, if the proposed agreement is approved, the City and LWJV agree to toll <br /> time related defenses that may apply to any action or claim that may be brought by <br /> LWJV or by any of the Lot Owners, or any of their successors-in-interest, against the <br />