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HomeMy WebLinkAboutA- 3 Monrovia Nursery School Site and Park ConceptTO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL HONORABLE CHAIR AND MEMBERS OF THE SCHOOLBOARD FROM: RICK COLE, CITY MANAGER ROD GAETA, SUPERINTENDENT DATE: JANUARY 23, 2002 SUBJECT: MONROVIA NURSERY SCHOOL SITE AND PARK CONCEPT One of the primary features of the Monrovia Nursery Specific Plan is the K-8 school and joint use park, called "the Great Park". This school/park combination was designed to be a beginning point of the Arroyo, and the Great Park a major open space feature on the Promenade. The proposed School site is planned to be 9 acres, and the Great Park 5.5 acres. It was anticipated that the park would be in joint use with the School District. y An issue that surfaced recently pertained to the ownership of the Great Park, with City Staff desiring ownership, and entering into a Joint Use Agreement with the District. The School District Staff had the understanding that the provisions of the original MOU would be in effect, as entered into between the Developer and the District as part of the former Rosedale Plan. That MOU, copy attached, provides for the District to own the property, with use of the park shared with the City. In addition, the MOU provided for a 3.5 acre school expansion area, in the event student enrollments exceed the assumptions in the future. Monrovia Nursery, the School District Staff, and City Staff have conceptually agreed upon a compromise. In concept, the components of this compromise are as follows: 1. School Site, owned by the District: 12.5 acres to be used as follows: - 9 acre school site - 3.5 acre joint use park 2. Park site, owned by the City: 2 acres 3. If the District requires the use of the Joint Use portion of the site in the future for school expansion, Monrovia Nursery will provide a 3.2acre replacement site (the Vosburg — Monrovia Nursery offices site) to the City. This general concept is further detailed in correspondence from Peter Carlson, which is attached for your information. An illustrative sample site plan describing how the site could be laid out is attached. The City Council and School Board should discuss this matter and take appropriate action as deemed necessary. January 22, 2003 Clifford Schuster Azusa Unified School District 546 S. Citrus Avenue Azusa, California 97102 Subject: Monrovia Nursery Dear Cliff: In preparation for tomorrow night's joint City Council and School Board meeting, I want to summarize in writing the verbal agreement we reached during our meeting on January 7, 2003, which included you and Brad Frick; Rick Cole and Roy Bruckner, Miles Rosedale, Bruce Usrey, and Julie Vandermost; Jay Tittle and his team from NTD Architects; and myself. Following the joint meeting I anticipate that we will prepare and enter into an amended MOU to formalize these agreements. Before I describe our verbal agreement you should be aware that just prior to last night's City Council hearing we received strong pressure from a couple of City Council members to reduce the number of proposed dwelling units because of their concern about parking, density, and population increase. We were asked to determine how many units were absolutely necessary to keep the development feasible and saleable, without compromising the fundamental planning principles of the land plan. As you can imagine, this was a very difficult and painful process for us. Without going into too much detail, we reduced the overall proposed number of dwelling units to 1,350, which is a reduction of 225 units from the previous cap of 1,575. The proposed development plan now has substantially less than the 1,808 dwelling units planned for in the MOU associated with the Rosedale Specific Plan. The current Monrovia Nursery Specific Plan includes a 9.0 acre school site and a 5.5 acre joint use park. The area totals 14.5 acres. The following is a summary of our verbal agreement pending City Council and School District approval regarding the proposed facilities. Azusa Unified School District (AUSD) plans to operate a Kindergarten through 8a' Grade school on the proposed school site. Mr. Schuster January 22, 2003 Page 2 • The attendance boundaries for the new K-8 school would mirror the boundaries of the Monrovia Nursery Specific Plan. • AUSD would own 12.5acres of the 14.5 acre site. • The City of Azusa would own the remaining 2 acres. • AUSD agrees to locate all of its ballfield, turf, and active recreation facilities, except for hardcourt facilities, that are required to support a school, consistent with State Guidelines, on the 3.5 acres of AUSD-owned land adjacent to the Promenade Street. This would allow the 5.5 acres along the Promenade Street to function as a joint -use community park. The City agrees that the 2.0 acres owned by the City would be used for ballfield and active recreation facilities consistent with an active park. This would allow the 5.5 acres along the Promenade Street to function as a joint -use community park. The City and AUSD agree to enter into a Joint Use Agreement to share use of the ballfields, recreation facilities, and parking areas located on City and AUSD owned land. AUSD would be prohibited from expanding into its 3.5 -acre parcel located adjacent to the Promenade with school classroom facilities or other non -recreation or park uses until all school expansion opportunities on the 9.0 acre parcel are exhausted. Expansion areas will be identified and planned for on the final school design plans. • If AUSD requires additional expansion space beyond the capacity of the 9.0 acre school site due to the number of students generated within the boundaries of the Monrovia Nursery Specific Plan, the Monrovia Nursery Company agrees to dedicate at no cost its 3.24 acre parcel that houses the Nursery's offices, including the Vosburg House, to the City of Azusa for community park purposes. AUSD agrees to a designfbuild agreement with the master developer, which would allow the master developer to design and construct the school based on AUSD review and consistency with State requirements. • AUSD agrees to follow the architectural design guidelines in the Monrovia Nursery Specific Plan for the design of the school. We believe it is unlikely that the number of students generated by the proposed Monrovia Nursery Specific Plan would exceed the capacity of the 9 -acre school site. Preliminary drawings by NTD Architects revealed that the 9 -acre site could accommodate a Mr. Schuster January 22, 2003 Page 3 permanent population of 800-900 students with expansion possibilities to 1,200 — 1,500 students. During the prior Rosedale Specific Plan negotiations, AUSD's consultant, School Planning Services, indicated that the Rosedale Plan would generate .94 students per household. Based on the proposed 1,350 households, AUSD's student generation rate would yield 1,269 students. Therefore, it is highly likely that the 9 -acre school site will be sufficient to accommodate the number of students generated by the proposed development. However, if expansion is necessary, we believe the 3.5 acres near the Promenade is more than sufficient to accommodate the number of students generated by the proposed development. The MOU for the Rosedale Specific Plan includes substantial detail on how the school facilities should be phased. Generally, the concept of phasing the school consistent with actual demand is appropriate, however it should be reviewed carefully to make sure that it applies to the current development plan. Similar to the prior MOU, the amended MOU should also include provisions for a final student generation reconciliation after project buildout to determine the need for expansion beyond the 9.0 -acre school site. This would provide all three parties with certainty regarding whether or not the expansion property is necessary. Given the substantial reduction in dwelling units compared to the Rosedale Specific Plan and the apparent lack of State matching funds, the other provisions in the Rosedale MOU, such as high school and off-site improvements, are not proposed to be included in the amended MOU. We look forward to continuing our working relationship with you and District staff and to building a great new school. If you have any questions, please give me a call at (949) 489-2700 ext. 208. Sincerely, Peter Carlson Vice President cc: Rick Cole, City Manager Roy Bruckner, Community Development Director NFIU-13-2002 14:38 FROM AZUSR USD TO 93345464 P.02/11 MEMORANDUM OF UNDERSTANDING This Memorandum of Understanding ("MOU") is entered into as of the 2nd day of June, 1998, by and between MONROVIA NURSERY COMPANY, a California corporation ("MNC"), and the AZUSA UNIFIED.SCHOOL DISTRICT ("District'), with reference to the following Recitals. MNC and District are sometimes hereinafter referred to individually as a "Party" and collectively as the "Parties". A. MNC is the owner and master developer of that certain real property consisting of approximately 520 acres in the City of Azusa within the proposed Rosedale Master Planned Community ("Rosedale Development"), the land use entitlements for which have been submitted to the City of Azusa for approval. B. MNC's land use entitlement applications, as amended, currently propose that the Rosedale Development contain approximately 1,808 homes, of which approximately 1,311 shall be single family detached residences and approximately 497 shall be single family attached residences. The entitlement applications, as amended, also currently propose an approximately two acre commercial site. MNC and District recognize that the number and type residences may change and agree to incorporate in this MOU any amendments to the type and number of homes to be built in the Rosedale Development. C_ District has advised MNC that the development of the Rosedale Development, as set forth above, will generate the need for additional school facilities in the District to serve students that will reside in the Rosedale Development. D. District has determined that funding from the State of California for the additional school facilities necessary to serve the students that will reside in the Rosedale Development will be inadequate to construct such additional school facilities. District has also determined that it does not have the resources with which to construct the needed additional school facilities. E. District and MNC have conducted extensive negotiations beginning on or about 11/7/96 with respect to the nature and quantity of the additional school facilities that will be needed if the Rosedale Development is developed and the responsibility for the funding thereof. Ni JU-13-2002 14:35 FROM AZUSR USD TO 93345464 F. This MOU is intended to memorialize those matters of understandinc heretofore reached between District and MNC with respect to the schoo facility mitigation requirements that will be applicable to the Rosedale Development and the funding responsibility therefore, for the purpose of commencing the preparation of a comprehensive School Facilities Mitigation Agreement between MNC and District ("Agreement"). NOW, THEREFORE, MNC and District memorialize their understanding as to general terms that the Parties desire to include in the Agreement as follows: 1. PURPOSE AND INTENT: The purpose and intent of the Agreement shall be to identify the school facilities that will be necessary, to serve the students generated from the Rosedale Development, establish a method for financing the acquisition of land and the planning and construction of the necessary school facilities, and to provide for the full and final mitigation of MNC with respect to the school facilities impacts of the entirety of the Rosedale Development. 2. SCHOOL FACILITIES: MNC shall finance the land acquisition, planning, and the initial construction of a 600 student kindergarten through eighth grade school ("K-8 School"), which shall, based upon the projections referred to in Paragraph 5 below, be expandable, at MNC's expense, to accommodate up to 1,200 K-8 students. MNC shall finance the construction of a gymnasium at the K-8 School if, at the time Certificates of Occupancy have been issued for 60% of the approved'density of the Rosedale Development ("Projection Date"), more than 1,050 K-8 students are projected to be generated from the Rosedale Development. MNC shall finance the construction of portable classrooms and facilities at other District sites which are necessary to accommodate the number of K-8 students in excess of 1,200 but less than 1400 to be generated by the Rosedale Development. MNC shall finance the construction of additional school facilities which are necesssary to accomodate students in excess of 1400 that are projected to be generated by the Rosedale Development. The type of school facilities (portable or permanent) to accomodate students in excess of 1400 shall be determined through mutual agreement between MNC and District. The K-8 School shall contain an adequate amount of the following supporting facilities as minimally determined by California State Standards: A. Administrative offices. B. Multi-purpose/cafeteria facility with kitchen facilities.i C. Library for elementary and middle school grades. D. Science and Computer labs. E. Physical education/playground facilities P. 63/11 NUU-IS-2002 14;39 FROM RZUSR USD TO 93345464 P.04/11 F. Parking. G. Communications/technology. H. Security Systems at a level equal to that at current District School Sites. I. Locker facilities for Physical Education. li Furniture and equipment at least to the level provided in the California State Building Program, provided the parties may by mutual agreement exceed such level. The design of K-8 School will be compatible with Rosedale's architectural guidelines in terms of color and exterior style. MNC will work with AUSD and AUSD's architect in connection with the planning, design, and construction of the K-8 School. Subject to Paragraph 4 below, District shall have final decision making authority over -any design and construction issue. MNC shall fully mitigate the facility needs for all students between the 910, 1050 and 1200 expansion triggers stated in paragraph 3 below, projected to be generated by the Rosedale Development, on the Projection Date, by providing mutually acceptable portable facilities, with permanent foundation equal to the foundations that have been utilized by the District for placing Class Size reduction facilities. These facilities shall be provided at the ratio of one portable classroom for every 20 K-3 students projected to be generated and one portable classroom for every 30 4-8 students projected to be generated between the trigger amounts. (For example, if the Rosedale Development projects to generate 1010 students and the last 100 students (students in excess of 910) were 40 K-3 students and 60 4-8 students, MNC shall provide the District with 4 portable facilities.) 3. ACREAGE OF K-8 SCHOOL: The K-8 School will be located on a nine (9) usable acre site within the Rosedale Development. The K-8 School shall additionally own and share an adjacent five and one-half (5 1/2) acres of park with the City of Azusa pursuant to a Joint Use Agreement so that the total area used by the K-8 School shall be fourteen and one-half (14.5) usable acres. The five and one-half (5 1/2) acres of joint use park shall be credited, in full, to MNC's park obligations in the Rosedale Development. In the event that more than 910, but less than 1051, K-8 students are projected to be generated from the Rosedale Development on the Projection Date, MNC shall increase,the size of the school by two (2) acres to a total of sixteen and one-half (16.5) usable acres. In the event that more than 1,050 K-8 students are projected as of the Projection Date, MNC shall increase the size of the school by an additional one and one-half (1.5) acres to a total of eighteen (18) usable acres. 1i4;�S F -RUM HZUSH USD TO 93.345464 P.05i11 STANDARDS FOR SCHOOL FACILITIES: All school facilities will be built to State standards and costs, however, MNC and District may exceed State efficiency requirements by utilizing cost savers school type/high efficiency design criteria in order to optimize cost savings that will be shared as set forth in Paragraph 9 below. The parties may exceed State standards and costs with the written agreement from both parties or unilaterally if the costs in excess of State standards and costs are assumed soley by the District. S. PROJECTIONS: The Parties agree to project the total actual number of K-8 students generated by the Rosedale Development on the Projection Date. The projections shall be based on actual K-8 students generated by the Rosedale Development on the Projection Date and shall not include any pre -kindergarten or high school (grades 9-12) data. Projections shall be based upon actual generation rates of detached residential dwelling units and attached residential dwelling units within the Rosedale Development. On the Projection Date, MNC and District shall determine the final number of students projected to be generated by the Rosedale Development by totaling the number of projected students from attached housing and the number of projected students from detached housing. The projected number of students in attached housing In the Rosedale Development shall be determined by adding the actual number of students generated by the attached housing in the Rosedale Development to a number equal to the number of students generated by attached housing in the Rosedale Development divided by the number of attached housing units on the Projection Date for which Certificates of Occupancy have been issued, multiplied by the remaining number of attached housing units in the approved Rosedale Development that have not yet been occupied. (For example, if 400 of 800 attached housing units are occupied and generating 400 K-8 students, the student projection shall be 400+(400/400x400=400) for a total of 800 students.) The projected number of students in detached housing in the Rosedale Development shall be determined by adding the actual number of students generated by detached housing in the Rosedale Development to a number equal to the number of students generated by the detached housing divided by the number of detached housing units on the Projection Date for which Certificates of Occupancy have been issued, multiplied by the remaining number of detached housing units in the approved Rosedale Development that have not yet been occupied. (For example, if 400 of 800 detached housing units are occupied and generating 400 K-8 students, the student projection shall be 400+(400/400x400=400) for a total of 800 students.) 4 Ni.PJ-l.i-G�J✓_�L 14 39 FROM HZUSH USD TO 53345464 P.06/11 Except for MNC's obligation to finance the 600 student K-8 School as set forth above. the remainder of MNC's obligations hereunder shall be dependent solely upon the number of. K-8 students projected to be generated from the Rosedale Development on the Projection Date. MNC's additional obligations hereunder shall be fixed as of the Projection Date, irrespective of whether, subsequently, more or less K-8 students than projected are actually generated by the Rosedale Development. District, upon MNC providing addresses of Certificates of Occupancy, shall report to MNC annually, in writing, the number of K-8 students generated by the Rosedale Development attending District schools. Additionally, District and MNC shall meet and confer, for tentative planning purposes, at the time of the issuance of 35% and 50% of the total number of certificates of occupancy for the Rosedale Development. In the event that on the Projection Date, there are less than 200 occupied attached housing units, the parties, at MNC's expense., shall conduct a mutually acceptable survey based upon the actual student generation rate of the attached and detached housing units in the District, excluding Rosedale, in order to determine what percentage of the detached housing student generation rate is being generated by attached housing units in the District. The percentage, as determined by the above survey, shall be applied to the detached housing student generation rate for the Rosedale Development to determine the student generation rate of the remaining unoccupied attached housing units for student projection purposes. 6. OPENING OF K-8 SCHOOL: The K-8 School shall be opened and commence operations no later than 6 months or the September after the 460th K-8 student in attendance in district schools is generated by the Rosedale Development. At anytime after the 180th K-8 student is generated by the Rosedale Development, MNC may request the District to open the school, however, MNC shall pay $200,000 annually (subject to a pro rata reduction if students from outside the Rosedale Development attend the K-8 School during this period) towards the annual incremental operating costs incurred by District due to the opening of the K-8 School until such time as the K-8 School has an enrollment of 300 students. (For example, if there are 285 students in the K-8 School in a given year, of which 240 are generated by the Rosedale Development, MNC shall pay 240/285 of the $200,000 annual payment.) The.District, upon receiving the request from MNC to open the school, shall open the school no later than 6 months from the request or on the September following the request at the discretion of the District. In no event shall MNC be required to pay more than $200,000 in any given year. To the extent that the 300th K-8 student is generated during any particular school year, such subsidy shall be prorated. MNC shall pay $100,000 (subject to a pro rata reduction if students from outside the Rosedale Development attend the K-8 School during this period) towards the annual NIU-1_;-l00G 14:40 FROM HZUSH USD TO 53345464 P. 07x11 incremental operating costs incurred by District due to the opening of the K-8 School while the K-8 School has an enrollment of more than 300 but less than 460 students. (For example, if there are 350 students in the K-8 School in a given year, of which 300 are generated by the Rosedale Development, MNC shall pay 300/350 of the $100,000 annual payment.) To the extent that the 460th K-8 student is generated during any particular school year, such subsidy shall be prorated. In no event shall MNC be required to pay more than $100,000 in any given year after the 300th K-8 student is generated from the Rosedale Development. At the time of the opening of the K-8 School and, thereafter until the Rosedale Development is completed, so long as at least eighty (80) grade 6-8 students are generated from the Rosedale Development, District shall operate classes at the 6-8 grade level at the K-8 School. MNC shall locate and pay for the lease of mutually acceptable portable facilities or provide mutually acceptable portable facilities to temporarily mitigate all impacts of K-8 students generated by the Rosedale Development until the new K-8 school is opened. This mitigation shall include but not be limited to providing temporary portable classroom facilities at existing District elementary and middle schools in sufficient numbers to fully accommodate the number of students generated by the Rosedale Development. The determination of necessary portables shall be based upon the need for 1 (ane) portable classroom for every 20 students in grades K-3 and 1 (one) portable classroom for every 30 students in grades 4-8. All calculations regarding the number of portables necessary shall be rounded up to facilitate the availability of a portable classroom for all students in grades K-8. MNC's obligation to pay all or part of the annual operating costs, as defined by this section, shall be limited to four (4) years from the first student day of the new school. The annual incremental operating costs incurred by District due to the opening of the K-8 School shall include but not be limited to the costs of; a. School Principal b. School Secretary C. School Clerk d. Day Custodian e. Night Custodian I. Health Aide 9. Psychologist h. Cafeteria Worker i. Computer Lab Aide 1. Noon Time Aide k. RSP Teacher 1. Instrumental Music Teacher 141JV-1-5-2NNG 14:40 FROM HZOSH I_ItiU TO 93345454 P.08i11 MNC shall pay 50% of the amount required pursuant to this section to the District on or before December 31 of each school year, and shall pay the remainder on or before June 30 of each school year. 7. FINANCING OF SCHOOL FACILITIES: District and MNC shall use best efforts to apply for and obtain the maximum State funding for all aspects of the K-8 School and, thereafter, any additional school facilities required by District to accommodate the K-8 students generated by the Rosedale Development. The K-8 School shall have the highest priority for new school construction funding applications to the State. MNC and District understand that as of the date of this MOU the District does not qualify for state funding under the State Building Program. To the extent that state funding is not available, MNC will finance the land acquisition, planning, and construction of the K-8 school and the expansion thereof as may be .required on the Projection Date, as well as the planning and providing and/or constructing of any additional classrooms to be located at other District facilities. The land at other District facilities on which the classrooms will be located shall be provided by district at no expense to MNC. MNC's financing responsibility shall be accomplished, in the sole and absolute discretion of MNC, by payments of a cash amount at a time or times agreed upon by MNC and District, land dedication, issuance of Mello Roos Community Facilities District bonds ("CFD") or other bonds, the construction of facilities, as approved by District, by MNC, or by a combination of the foregoing. In the event MNC chooses to utilize a CFD for financing the school facilities described herein, it may include non - school related infrastructure and services, provided that there shall, in no event, be recourse to District. MNC agrees to indemnify and hold harmless District from any and all damages, claims and/or judgments as a result of the use of CFD for non -school related infrastructure and services. 8. ATTENDANCE POLICY: District shall adopt a priority access policy for students residing within the CFD which finances the K-8 School. The degree of priority shall reflect the proportion of the K-8 School's financing provided through the CFD_ If the CFD is not utilized, the K-8 School shall be a neighborhood school. SHARING OF COST SAVINGS/STATE FUNDS: To the extent that the K- 8 School is constructed at a cost of less than that allowed by the State for the facility being constructed, MNC shall contribute to District 25% of such cost savings. Additionally, to the extent that State funding is received by District for any portion of the K-8 School thus lowering the amount of financing to be provided by MNC hereunder, MNC shall contribute 12.5% thereof to District. In no event, however, shall the District's share of cost savings, share of the percentage of State funding to be contributed by MNC, the land incentives referred to in paragraph 11 below, and the lump sum payments for High School mitigation JSee number 10 below) exceed $1,000,000. The District's share of the aforementioned funds shall be utilized by District for recreational facilities for which MNC shall receive I1� Ili -1 _�-LN�IG 10. 11 14:4N FF1UII HZ1ISH ISI) TI_I 53345464 park credit to its park obligations for the Rosedale Development, if needed. The District's allocation of cost savings, State funding, land incentives pursuant to paragraph 11 below, and lump sum for High School mitigation ISee number 10 below) shall be deposited by MNC within thirty (30) days after receipt of all State funding allocated for the K-8 School, or any expansion increment, and within ninety (90) days of the final inspection and issuance of a certificate of completion for the K-8 School, or any expansion increment, by the State Architect and City of Azusa, whichever occurs last. All funds referenced above, shall be released by MNC at such time that the K-8 School has opened and District has assumed full financial responsibility for the operations of the K-8 School. HIGH SCHOOL MITIGATION: MNC will mitigate high school impact as follows: a. For the first 250 high school students generated by the Rosedale Development (whether the final number of high school student generation is 1 or 250), MNC will pay to the District $125,000 or provide 5 portable classrooms. Such amount shall be paid at the time set forth in paragraph 9 above. b. For each high school student projected to be generated by the Rosedale Development over 250, MNC will pay to the District $1,000 per student or provide 1 portable classroom for every 30 high school students generated. OPTIONS: MNC and the District agree to the following mitigation options to be exercised at the sole discretion of the District: a. MNC will pay the District $125,000 for each acre of land the District is initially entitled under this Agreement or becomes entitled under this Agreement on the Projection Date in which the District does not use but relinquishes to MNC for residential construction. Such amount shall be paid at the time set forth in paragraph 9 above. 12. EQUAL TREATMENT: District acknowledges that, pursuant to the terms herein, MNC is mitigating fully all known impacts of the Rosedale Development on the District. To the extent that District does not require other new residential development within the.District which consists of 66 or more homes ("New Development"), likewise, to mitigate fully its impacts on the District, MNC may be at a competitive disadvantage in the marketing and sale of the homes within the Rosedale Development. Accordingly, District agrees as follows: a. Until such time as all of the homes approved for the Rosedale Development are built and sold, District shall 141 J()- 14 41. FROM AZI ISA USD TO 93345464 P.10i11. require New Development to fully mitigate all impacts upon the District by paying school fees in an amount which is equal to or greater than that anticipated to be paid by MNC hereunder. This amount shall be determined by the parties in the Agreement. b. Until such time as all the homes approved -for the Rosedale Development are built and sold, District shall require commercial and industrial development within the District to pay the full amount of school fees that may be charged by District under Governing Board Policies. The District shall seek to increase school fees to the maximum allowed by law and supportable by District facts, as soon as is practicable. C. Provided that District has received timely notice from the City of Azusa and/or MNC prior to official action by the City Council of the City of Azusa regarding final approval of land use entitlement for any New Development that would require mitigation action by the District under this Agreement, failure by the District to collect or initiate a collection of mitigation fees as set forth in this paragraph, after receiving timely notice from the City of Azusa or MNC as stated above, shall result in the District's waiver of all rights to any incentive money in this Agreement, and any incentive money received shall be repaid to MNC within sixty (60) days pf MNC's demand. Nothing in this paragraph shall be read to forfeit the District's right to receive the expansion of the K-8 school as provided in this agreement. d. Notwithstanding the obligations imposed upon the District in this paragraph, if a court of competent jurisdiction determines that District may only charge school fees of a lesser amount, District shall be in compliance herewith by charging such lesser amount. e. In the event that students generated by the New Development or any Development of 5 or more units, attends the school constructed in the Rosedale Development, District shall require that the New Development reimburse MNC for each student in the amount equal to the total fees paid, per student, by MNC. 13. AGREEMENT TO BE CONDITIONED UPON LAND USE ENTITLEMENTS AND COMMENCEMENT OF CONSTRUCTION: The Agreement entered into by MNC and District shall be conditioned upon (i) MNC obtaining all necessary land use entitlements for the Rosedale Development, including a development agreement vesting in MNC's right to build an agreed upon number of units, all of which shall be acceptable N I1LIJJH UJ U `J.S.i454b4 to MNC in its sole and absolute discretion, and (ii) the commencement of construction of residential units within Rosedale. 14. OTHER CONDITIONS: MNC and District acknowledge that all provisions of this MOU providing MNC with park credit is conditioned upon the District's ability to enter an agreement with the City of Azusa concerning joint use of the 5 112 acre park and the authority of the District to deliver park credit to MNC. 15. REOPENER: District may reopen any portion of this Agreement and initiate negotiations with MNC on any issues resulting from the changes in the Rosedale Development as a result of MNC's approval process with the City of Azusa_ 16. NON-BINDING NATURE OF THIS MOU: The Parties acknowledge that this MOU is of no legal force or effect and merely memorializes the conceptual and tentative understandings of MNC and District as to the mitigation of school facilities impacts for the Rosedale Development. Neither MNC nor District shall be legally bound to the other until such time that an Agreement has been approved by their respective Boards and executed by District and MNC. District and MNC hereby execute this Memorandum of Understanding as of the 2nd day of June, 1998. "MNG" "District" MNC NURSERY COMPANY, AZUSA UNIFIED SCHOOL DISTRICT A California corporation By 7 0,-_ By. Name: L_ L Name: d TSS Title: J — P Title: 8aae� rirE�� 10 TOTAL P.11 NOV-13-2002 14:38 FROM RZUSR USD TO 93345464 P.02/11 MEMORANDUM OF UNDERSTANDING This Memorandum of Understanding ("MOU") is entered into as of the 2nd day of June, 1998, by and between MONROVIA NURSERY COMPANY, a California corporation ("MNC"), and the AZUSA UNIFIED.SCHOOL DISTRICT ("District"), with reference to the following Recitals. MNC and District are sometimes hereinafter referred to individually as a "Party" and collectively as the "Parties". IA4qj-1D K-9 A. MNC is the owner and master developer of that certain real property consisting of approximately 520 acres in the City of Azusa within the proposed Rosedale Master Planned Community ("Rosedale Development"), the land use entitlements for which have been submitted to the City of Azusa for approval. B. MNC's land use entitlement applications, as amended, currently propose that the Rosedale Development contain approximately 1,808 homes, of which approximately 1,311 shall be single family detached residences and approximately 497 shall be single family attached residences. The entitlement applications, as amended, also currently propose an approximately two acre commercial site. MNC and District recognize that the number and type residences may change and agree to incorporate in this MOU any amendments to the type and number of homes to be built in the Rosedale Development. C. District has advised MNC that the development of the Rosedale Development, as set forth above, will generate the need for additional school facilities in the District to serve students that will reside in the Rosedale Development. D. District has determined that funding from the State of California for the additional school facilities necessary to serve the students that will reside in the Rosedale Development will be inadequate to construct such additional school facilities. District has also determined that it does not have the resources with which to construct the needed additional school facilities. E. District and MNC have conducted extensive negotiations beginning on or about 11!7196 with respect to the nature and quantity of the additional school facilities that will be needed if the Rosedale Development is developed and the responsibility for the funding thereof. NOV-13-2002 14:38 FROM RZUSA USD TO 93345464 P.03/11 F. This MOU is intended to memorialize those matters of understanding heretofore reached between District and MNC with respect to the school facility mitigation requirements that will be applicable to the Rosedale Development and the funding responsibility therefore, for the purpose of commencing the preparation of a comprehensive School Facilities Mitigation Agreement between MNC and District ("Agreement"). NOW, THEREFORE, MNC and District memorialize their understanding as to general terms that the Parties desire to include in the Agreement as follows: PURPOSE AND INTENT: The purpose and intent of the Agreement shall be to identify the school facilities that will be necessary, to serve the students generated from the Rosedale Development, establish a method for financing the acquisition of land and the planning and construction of the necessary school facilities, and to provide for the full and final mitigation of MNC with respect to the school facilities impacts of the entirety of the Rosedale Development. 2. SCHOOL FACILITIES: MNC shall finance the land acquisition, planning, and the initial construction of a 600 student kindergarten through eighth grade school ("K-8 School"), which shall, based upon the projections referred to in Paragraph 5 below, be expandable, at MNC's expense, to accommodate up to 1,200 K-8 students. MNC shall finance the construction of a gymnasium at the K-8 School if, at the time Certificates of Occupancy have been issued for.60% of the approved density of the Rosedale Development ("Projection Date"), more than 1,050 K-8 students are projected to be generated from the Rosedale Development. MNG shall finance the construction of portable classrooms and facilities at other District sites which are necessary to accommodate the number of K-8 students in excess of 1,200 but less than 1400 to be generated by the Rosedale Development. MNC shall finance the construction of additional school facilities which are necesssary to accomodate students in excess of 1400 that are projected to be generated by the Rosedale Development. The type of school facilities (portable or permanent) to accomodate students in excess of 1400 shall be determined through mutual agreement between MNC and District. The K-8 School shall contain an adequate amount of the following supporting facilities as minimally determined by California State Standards: A. Administrative offices. B. Multi-purpose/cafeteria facility with kitchen facilities C. Library for elementary and middle school grades. D. Science and Computer labs. E. Physical education/playground facilities. 2 NOV-13-2002 1439 FROM RZUSR USD TO 93345464 P.04/11 F. Parking. G. Communications/technology. H. Security Systems at a level equal to that at current District School Sites. L Locker facilities for Physical Education. li. Furniture and equipment at least to the level provided in the California State Building Program, provided the parties may by mutual agreement exceed such level. The design of K-8 School will be compatible with Rosedale's architectural guidelines in terms of color and exterior style. MNC will work with AUSD and AUSD's architect in connection with the planning, design, and construction of the K-8 School. Subject to Paragraph 4 below, District shall have final decision making authority over any design and construction issue. MNC shall fully mitigate the facility needs for all students between the 910, 1050 and 1200 expansion triggers stated in paragraph 3 below, projected to be generated by the Rosedale Development, on the Projection Date, by providing mutually acceptable portable facilities, with permanent foundation equal to the foundations that have been utilized by the District for placing Class Size reduction facilities_ These facilities shall be provided at the ratio of one portable classroom for every 20 K-3 students projected to be generated and one portable classroom for every 30 4-8 students projected to be generated between the trigger amounts. (For example, if the Rosedale Development projects to generate 1010 students and the last 100 students (students in excess of 910) were 40 K-3 students and 60 4-8 students, MNC shall provide the District with 4 portable facilities.) 3. ACREAGE OF K-8 SCHOOL: The K-8 School will be located on a nine (9) usable acre site within the Rosedale Development. The K-8 School shall additionally own and share an adjacent five and one-half (5 1/2) acres of park with the City of Azusa pursuant to a Joint Use Agreement so that the total area used by the K-8 School shall be fourteen and one-half (14.5) usable acres. The five and one-half (5 1/2) acres of joint use park shall be credited, in full, to MNC's park obligations in the Rosedale Development. In the event that more than 910, but less than 1051, K-8 students are projected to be generated from the Rosedale Development on the Projection Date, MNC shall increase the size of the school by two (2) acres to a total of sixteen and one-half (16.5) usable acres. In the event that more than 1,050 K-8 students are projected as of the Projection Date, MNC shall increase the size of the school by an additional one and one-half (1.5) acres to a total of eighteen (18) usable acres. NOV-13-2002 14:39 FROM RZUSR USD TO 93345464 P.05/11 4. STANDARDS FOR SCHOOL FACILITIES: All school facilities will be built to State standards and costs, however, MNC and District may exceed State efficiency requirements by utilizing cost savers school type/high efficiency design criteria in order to optimize cost savings that will be shared as set forth in Paragraph 9 below. The parties may exceed State standards and costs with the written agreement from both parties or unilaterally if the costs in excess of State standards and costs are assumed soley by the District. S. PROJECTIONS: The Parties agree to project the total actual number of K-8 students generated by the Rosedale Development on the Projection Date. The projections shall be based on actual K-8 students generated by the Rosedale Development on the Projection Date and shall not include any pre -kindergarten or high school (grades 9-12) data. Projections shall be based upon actual generation rates of detached residential dwelling units and attached residential dwelling units within the Rosedale Development. On the Projection Date, MNC and District shall determine the final number of students projected to be generated by the Rosedale Development by totaling the number of projected students from attached housing and the number of projected students from detached housing. The projected number of students in attached housing in the Rosedale Development shall be determined by adding the actual number of students generated by the attached housing in the Rosedale Development to a number equal to the number of students generated by attached housing in the Rosedale Development divided by the number of attached housing units on the Projection Date for which Certificates of Occupancy have been Issued, multiplied by the remaining number of attached housing units in the approved Rosedale Development that have not yet been occupied_ (For example, if 400 of 800 attached housing units are occupied and generating 400 K-8 students, the student projection shall be 400+(400/400x400=400) for a total of 800 students.) The projected number of students in detached housing in the Rosedale Development shall be determined by adding the actual number of students generated by detached housing in the Rosedale Development to a number equal to the number of students generated by the detached housing divided by the number of detached housing units on the Projection Date for which Certificates of Occupancy have been issued, multiplied by the remaining number of detached housing units in the approved Rosedale Development that have not yet been occupied. (For example, if 400 of 800 detached housing units are occupied and generating 400 K-8 students, the student projection shall be 400+(400/400x400=400) for a total of 800 students.) NOU-13-2002 14:39 FROM AZUSA USD TO 93345464 P.06/11 Except for MNC's obligation to finance the 600 student K-8 School as set forth above, the remainder of MNC's obligations hereunder shall be dependent solely upon the number of K-8 students projected to be generated from the Rosedale Development on the Projection Date. MNC's additional obligations hereunder shall be fixed as of the Projection Date, irrespective of whether, subsequently, more or less K-8 students than projected are actually generated by the Rosedale Development. District, upon MNC providing addresses of Certificates of Occupancy, shall report to MNC annually, in writing, the number of K-8 students generated by the Rosedale Development attending District schools_ Additionally, District and MNC shall meet and confer, for tentative planning purposes, at the time of the issuance of 35% and 50% of the total number of certificates of occupancy for the Rosedale Development. In the event that on the Projection Date, there are less than 200 occupied attached housing units, the parties, at MNC's expense, shall conduct a mutually acceptable survey based upon the actual student generation rate of the attached and detached housing units in the District, excluding Rosedale, in order to determine what percentage of the detached housing student generation rate is being generated by attached housing units in the District. The percentage, as determined by the above survey, shall be applied to the detached housing student generation rate for the Rosedale Development to determine the student generation rate of the remaining unoccupied attached housing units for student projection purposes. 6. OPENING OF K-8 SCHOOL_ The K-8 School shall be opened and commence operations no later than 6 months or the September after the 460th K-8 student in attendance in district schools is generated by the Rosedale Development. At anytime after the 180th K-8 student is generated by the Rosedale Development, MNC may request the District to open the school, however, MNC shall pay $200,000 annually (subject to a pro rata reduction if students from outside the Rosedale Development attend the K-8 School during this period) towards the annual incremental operating costs incurred by District due to the opening of the K-8 School until such time as the K-8 School has an enrollment of 300 students. (For example, if there are 285 students in the K-8 School in a given year, of which 240 are generated by the Rosedale Development, MNC shall pay 240/285 of the $200,000 annual payment.) The District, upon receiving the request from MNC to open the school, shall open the school.no later than 6 months from the request or on the September following the request at the discretion of the District. In no event shall MNC be required to pay more than $200,000 in any given year. To the extent that the 300th K-8 student is generated during any particular school year, such subsidy shall be prorated. MNC shall pay $100,000 (subject to a pro rata reduction if students from outside the Rosedale Development attend the K-8 School during this period) towards the annual 5 NOV-13-2002 14:40 FROM RZUSR USD TO 93345464 P.07i11 incremental operating costs incurred by District due to the opening of the K-8 School while the K-8 School has an enrollment of more than 300 but less than 460 students. (For example, if there are 350 students in the K-8 School in a given year, of which 300 are generated by the Rosedale Development, MNC shall pay 300/350 of the $100,000 annual payment.) To the extent that the 460th K-8 student is generated during any particular school year, such subsidy shall be prorated. In no event shall MNC be required to pay more than $100,000 in any given year after the 300th K-8 student is generated from the Rosedale Development. At the time of the opening of the K-8 School and, thereafter until the Rosedale Development is completed, so long as at least eighty (80) grade 6-8 students are generated from the Rosedale Development, District shall operate classes at the 6-8 grade level at the K-8 School. MNC shall locate and pay for the lease of mutually acceptable portable facilities or provide mutually acceptable portable facilities to temporarily mitigate all impacts of K-8 students generated by the Rosedale Development until the new K-8 school is opened. This mitigation shall include but not be limited to providing temporary portable classroom facilities at existing District elementary and middle schools in sufficient numbers to fully accommodate the number of students generated by the Rosedale Development. The determination of necessary portables shall be based upon the need for 1 (one) portable classroom for every 20 students in grades K-3 and 1 (one) portable classroom for every 30 students in grades 4-8. All calculations regarding the number of portables necessary shall be rounded up to facilitate the availability of a portable classroom for all students in grades K-8. MNC's obligation to pay all or part of the annual operating costs, as defined by this section, shall be limited to four (4) years from the first student day of the new school. The annual incremental operating costs incurred by District due to the opening of the K-8 School shall include but not be limited to the costs of: a. School Principal b. School Secretary C. School Clerk d. Day Custodian e. Night Custodian I. Health Aide g. Psychologist h. Cafeteria Worker L Computer Lab Aide j. Noon Time Aide k. RSP Teacher I. Instrumental Music Teacher NOV-13-2002 14:40 FROM RZUSR USD TO 93345464 P.09/11 MNC shall pay 50% of the amount required pursuant to this section to the District on or before December 31 of each school year, and shall pay the remainder on or before June 30 of each school year. 7. FINANCING OF SCHOOL FACILITIES: District and MNC shall use best efforts to apply for and obtain the maximum State funding for all aspects of the K-8 School and, thereafter, any additional school facilities required by District to accommodate the K-8 students generated by the Rosedale Development. The K-8 School shall have the highest priority for new school construction funding applications to the State. MNC and District understand that as of the date of this MOU the District does not qualify for state funding under the State Building Program. To the extent that state funding is not available, MNC will finance the land acquisition, planning, and construction of the K-8 school and the expansion thereof as may be required on the Projection Date, as well as the planning and providing and/or constructing of any additional classrooms to be located at other District facilities. The land at other District facilities on which the classrooms will be located shall be provided by district at no expense to MNC. MNC's financing responsibility shall be accomplished, in the sole and absolute discretion of MNC, by payments of a cash amount at a time or times agreed upon by MNC and District, land dedication, issuance of Mello Roos Community Facilities District bonds ("CFD") or other bonds, the construction of facilities, as approved by District, by MNC, or by a combination of the foregoing. In the event MNC chooses to utilize a CFD for financing the school facilities described herein, it may include non - school related infrastructure and services, provided that there shall, in no event, be recourse to District. MNC agrees to indemnify and hold harmless District from any and all damages, claims and/or judgments as a result of the use of CFD for non -school related infrastructure and services. 8. ATTENDANCE POLICY: District shall adopt a priority access policy for Students residing within the CFD which finances the K-8 School. The degree of priority shall reflect the proportion of the K-8 School's financing provided through the CFD. If the CFD is not utilized, the K-8 School shall be a neighborhood school. 9. SHARING OF COST SAVINGS/STATE FUNDS: To the extent that the K- 8 School is constructed at a cost of less than that allowed by the State for the facility being constructed, MNC shall contribute to District 25% of such cost savings. Additionally, to the extent that State funding is received by District for any portion of the K-8 School thus lowering the amount of financing to be provided by MNC hereunder, MNC shall contribute 12.5% thereof to District. In no event, however, shall the District's share of cost savings, share of the percentage of State funding to be contributed by MNC, the land incentives referred to in paragraph 11 below, and the lump sum payments for High School mitigation (See number 10 below) exceed $1,000,000. The District's share of the aforementioned funds shall be utilized by District for recreational facilities for which MNC shall receive NOV-13-2002 14:40 FROM RZUSR USD TO 93345464 P.09/11 park credit to its park obligations for the Rosedale Development, if needed. The District's allocation of cost savings, State funding, land incentives pursuant to paragraph 11 below, and lump sum for High School mitigation (See number 10 below) shall be deposited by MNC within thirty (30) days after receipt of all State funding allocated for the K-8 School, or any expansion increment, and within ninety (90) days of the final inspection and issuance of a certificate of completion for the K-8 School, or any expansion increment, by the State Architect and City of Azusa, whichever occurs last. All funds referenced above, shall be released by MNC at such time that the K-8 School has opened and District has assumed full financial responsibility for the operations of the K-8 School. 10. HIGH SCHOOL MITIGATION: MNC will mitigate high school impact as follows: a. For the first 250 high school students generated by the Rosedale Development (whether the final number of high school student generation is 1 or 250), MNC will pay to the District $125,000 or provide 5 portable classrooms. Such amount shall be paid at the time set forth in paragraph 9 above. b. For each high school student projected to be generated by the Rosedale Development over 250, MNC will pay to the District $1,000 per student or provide 1 portable classroom for every 30 high school students generated. 11. OPTIONS: MNC and the District agree to the following mitigation options to be exercised at the sole discretion of the District: MNC will pay the District $125,000 for each acre of land the District is initially entitled under this Agreement or becomes entitled under this Agreement on the Projection Date in which the District does not use but relinquishes to MNC for residential construction. Such amount shall be paid at the time set forth in paragraph 9 above. 12. EQUAL TREATMENT: District acknowledges that, pursuant to the terms herein, MNC is mitigating fully all known impacts of the Rosedale Development on the District. To the extent that District does not require other new residential development within the.District which consists of 66 or more homes ("New Development"), likewise, to mitigate fully its impacts on the District, MNC may be at a competitive disadvantage in the marketing and sale of the homes within the Rosedale Development. Accordingly, District agrees as follows: a. Until such time as all of the homes approved for the Rosedale Development are built and sold. District shall NOU-13-2002 14:41 FROM RZUSR USD TO 93345464 P.10i11 require New Development to fully mitigate all impacts upon the District by paying school fees in an amount which is equal to or greater than that anticipated to be paid by MNC hereunder. This amount shall be determined by the parties in the Agreement. Until such time as all the homes approved for the Rosedale Development are built and sold, District shall require commercial and industrial development within the District to pay the full amount of school fees that may be charged by District under Governing Board Policies. The District shall seek to increase school fees to the maximum allowed by law and supportable by District facts, as soon as is practicable. C. Provided that District has received timely notice from the City of Azusa and/or MNC prior to official action by the City Council of the City of Azusa regarding final approval of land use entitlement for any New Development that would require mitigation action by the District under this Agreement, failure by the District to collect or initiate a collection of mitigation fees as set forth in this paragraph, after receiving timely notice from the City of Azusa or MNC as stated above, shall result in the District's waiver of all rights to any incentive money in this Agreement, and any incentive money received shall be repaid to MNC within sixty (60) days of MNC's demand. Nothing in this paragraph shall be read to forfeit the District's right to receive the expansion of the K -B school as provided in this agreement. d. Notwithstanding the obligations imposed upon the District in this paragraph, if a court of competent jurisdiction determines that District may only charge school fees of a lesser amount, District shall be in compliance herewith by charging such lesser amount. e. In the event that students generated by the New Development or any Development of 5 or more units, attends the school constructed in the Rosedale Development, District shall require that the New Development reimburse MNC for each student in the amount equal to the total fees paid, per student, by MNC. 13. AGREEMENT TO BE CONDITIONED UPON LAND USE ENTITLEMENTS AND COMMENCEMENT OF CONSTRUCTION: The Agreement entered into by MNC and District shall be conditioned upon (i) MNC obtaining all necessary land use entitlements for the Rosedale Development, including a development agreement vesting in MNC's right to build an agreed upon number of units, all of which shall be acceptable R2 NOV-13-2002 14=41 FROM AZUSA USD TO 93345464 to MNC in its sole and absolute discretion, and (ii) the commencement of construction of residential units within Rosedale. 14. OTHER CONDITIONS: MNC and District acknowledge that all provisions of this MOU providing MNC with park credit is conditioned upon the District's ability to enter an agreement With.the City of Azusa concerning joint use of the 5 112 acre park and the authority of the District to deliver park credit to MNC. 15. REOPENER: District may reopen any portion of this Agreement and initiate negotiations with MNC on any issues resulting from the changes in the Rosedale Development as a result of MNC's approval process with the City of Azusa_ 16. NON-BINDING NATURE OF THIS MOU: The Parties acknowledge that this MOU is of no legal force or effect and merely memorializes the conceptual and tentative understandings of MNC and District as to the mitigation of school facilities impacts for the Rosedale Development. Neither MNC nor District shall be legally bound to the other until such time that an Agreement has been approved by their respective Boards and executed by District and MNC. District and MNC hereby execute this Memorandum of Understanding as of the 2nd day of June, 1998. "MNC" "District" MNC NURSERY COMPANY, AZUSA UNIFIED SCHOOL DISTRICT A California corporation Name: Ive-V 1A L_ Le�tr�pc� Title: 0 — 10 Name: jo;le TOTAL P.11 Yil