Agmt06 Eddie's Bookstores, Inc. - DBA Secrets Boutique

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SETTLEMENT AGREEMENT AND RELEASE OF CLAIMS This Settlement Agreement and Release of Claims (the "Agreement'') is made by and between Eddie's Bookstores, Inc., a California corporation doing business as Secrets Boutique (the "Adult Bookstore") and its owner David Sturman on the one ,- hand, and the City of Redwood City (the "City") on the other hand, to resolve, settle and compromise all disputes and controversies between them concerning the location of the Adult Bookstore at 739 EI Camino Real, Redwood City, California. Recitals (A) Under Article 27 of the Zoning Code of the City of Redwood City ("Article 27"), sexually oriented businesses are prohibited from operating within a residential or residential combining district or within 1,000 feet of any residential district, school, public park, church, residence or other sexually oriented business. Article 27 was amended in 2000 to provide then-existing, non-confonning sexually oriented businesses up to five years, plus one optional six-month extension, to comply with the distance restrictions. (B) The Adult Bookstore is a sexually oriented business that has operated at 739 EI Camino Real since before Article 27 was adopted and amended. The Adult Bookstore does not comply with Article 27 because it is located within a 1,000 feet of residences and a school. Under the five-year period and six-month extension, which the Adult Bookstore requested and which was granted by the City, the Adult Bookstore had until January 12, 2006, to comply with Article 27. (C) The Adult Bookstore continues to operate at 739 EI Camino Real. The Adult Bookstore alleges that Article 27 is invalid and has threatened to file a federal lawsuit to enjoin enforcement of Article 27. The City contends Article 27 is valid and fully enforceable. The parties now wish to resolve this dispute without costly litigation and to address issues that have been raised. I