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D.1 - Staff Report - APU DA MOD
PUBLIC HEARING D-1 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL VIA: SERGIO GONZALEZ, CITY MANAGER FROM: JOSE D. JIMENEZ, DIRECTOR OF ECONOMIC & COMMUNITY DEVELOPMENT DATE: JUNE 2, 2025 SUBJECT: PUBLIC HEARING - CONSIDERATION OF AMENDMENT NO. 2 TO EXTEND THE EXPIRATION DATE OF THE DEVELOPMENT AGREEMENT BETWEEN AZUSA PACIFIC UNIVERSITY (APU) AND THE CITY OF AZUSA (CITY) FOR DEVELOPMENT ON THE CAMPUS OF AZUSA PACIFIC UNIVERSITY BACKGROUND: In 2005, the City Council adopted the Azusa Pacific University (APU) Specific Plan and the accompanying Development Agreement to guide the long-term development of the APU campus, including permitted land uses, development standards, and associated public benefits. In 2007, APU requested an amendment to the Development Agreement to facilitate the issuance of revenue bonds for campus improvements, including the construction of a new science building and the acquisition of the Crestview Apartments for student housing. The original Development Agreement includes a provision establishing a 20-year term, which is set to expire on September 19, 2025. APU is now requesting an amendment to extend the term by an additional 10 years to allow time to reassess the Specific Plan and propose potential modifications at a future date. RECOMMENDATIONS: Staff recommends that the City Council take the following actions: 1) Open the public hearing, receive testimony and close public hearing: and 2)Approve Amendment No. 2 between Azusa Pacific University and the City of Azusa to extend the term of the initial Development agreement by an additional five-year and allow for a new expiration date of September 19, 2030; and Approved City Council June 2, 2025 Second Amendment to Development Agreement - APU June 2, 2025 Page 2 3) Waive first reading, read by title only and introduce Ordinance No. 2025-03: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA APPROVING AND ADOPTING AN AMENDMENT TO THE DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF AZUSA AND AZUSA PACIFIC UNIVERSITY; and 2) Find that the request to extend the term of the Development Agreement complies with the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15164, which allows for the preparation of an addendum to a previously certified Environmental Impact Report (EIR) when only minor changes or additions are necessary, and no substantial changes have occurred that would require preparation of a subsequent EIR. ANALYSIS: Per Section 1.4 (Term of Agreement), the current Development Agreement remains in effect for 20 years from the effective date (September 19, 2005), expiring on September 19, 2025—unless extended or terminated. At the written request of the owner (APU), the City Council may consider extending the agreement. APU is requesting a 10-year extension, which would move the expiration date to September 19, 2035. When the Specific Plan was adopted in 2005, it was based on APU’s then-20-year strategic plan, which projected anticipated student growth and facility needs. As the end of that planning horizon approaches, APU is evaluating future needs and developing a new strategic plan. Extending the Development Agreement will allow APU, in coordination with the City and key stakeholders, to shape its long-term plans while continuing progress on entitled but incomplete portions of the Campus. This request does not include any changes to the Specific Plan itself and merely preserves the existing entitlements and conditions. The Development Agreement outlines long-term planning, including reduced uncertainty, orderly development, and timely infrastructure improvements. It also promotes consistency with the City’s General Plan and development policies. As such, extending the agreement provides both stability for APU and predictability for the surrounding community. Further, Section 7.6 of the Specific Plan anticipates that development may occur “over a period of 15 to 20 years or more,” supporting the notion that the plan may remain relevant beyond the initial 20-year term. Accordingly, it is necessary to extend the term of the Development Agreement to ensure that the Specific Plan continues to guide APU’s development while a new long-term strategic plan is formulated. This extension will provide stability and certainty for the University, while allowing time to assess the needs of the current and future student population, as well as those of the surrounding community, with input from key stakeholders. Although the applicant has requested a 10-year extension through 2035, staff is recommending a five-year extension at this time. This approach allows for a meaningful review of APU’s progress toward updating the Specific Plan at the five-year mark, rather than deferring such a review for a full decade. This interim check-in will give both the City and the University an opportunity to reassess development priorities, ensure continued alignment with community goals, and determine Second Amendment to Development Agreement - APU June 2, 2025 Page 3 whether further amendments to the Specific Plan or Development Agreement are warranted. The applicant may also return at a later date to request an additional extension, if needed. This item was considered and approved by the Planning Commission during their April 23, 2025 Meeting. In conclusion, staff recommends that the City Council adopt the proposed amendment to the existing APU Development Agreement (DA Amendment #2), with a revised term extension establishing a new expiration date of September 19, 2030. ENVIRONMENTAL CLEARANCE: The request to extend the term of the Development Agreement complies with the California Environmental Quality Act (CEQA). Under CEQA Guidelines Section 15164, an addendum to a previously certified Environmental Impact Report (EIR) is appropriate when minor changes or additions are necessary, but no substantial changes have occurred that would require preparation of a subsequent EIR. In this case, Impact Sciences conducted a comprehensive analysis and determined that the proposed extension of the Development Agreement would not result in any new or increased environmental impacts beyond those previously analyzed in the certified APU Specific Plan EIR. Furthermore, none of the conditions outlined in CEQA Guidelines Section 15162—which trigger the need for a subsequent or supplemental EIR—are present. The amendment does not propose or entitle any specific new development. All permitted projects remain consistent with those evaluated under the adopted Specific Plan, and no intensification of impacts would occur. Moreover, as noted above, the Specific Plan explicitly anticipates that development activities could occur over a period of 15 to 20 years or more, providing flexibility for a longer buildout period. Therefore, the proposed Development Agreement extension is found to be within the scope of the previously certified EIR, and no further environmental review is required. An addendum to the APU EIR is appropriate and sufficient under CEQA. FISCAL IMPACT: There is no fiscal impact associated with a request to undertake an Amendment to a previously approved Development Agreement. Prepared and Approved by: Jose D. Jimenez Director of Economic & Community Development Second Amendment to Development Agreement - APU June 2, 2025 Page 4 Reviewed and Approved: Sergio Gonzalez City Manager Attachments: 1) Exhibit A - Conditions of Approval 2) Exhibit B - APU Development Agreement (Approved) 3) Exhibit C - Draft Second Amendment to Development Agreement 4) Exhibit D - Draft Council Ordinance 5) Exhibit E - Narrative by Applicant for DA Extension Request 6) Exhibit F - CEQA Consistency Study – Impact Sciences Page 1 of 2 Exhibit "A" Conditions of Approval –Reviewed and approved by the Planning Commission on 4/23/25 Case No: Development Agreement Amendment No. 2 Address: 901 W. Alosta Avenue Project: Request to Amend the Expiration Date of the Development Agreement Between the Azusa Pacific University and the City of Azusa. These conditions of approval shall be printed on or attached to working drawings submitted to the Building Division for approval. IF APPLICABLE A. All requirements of the Planning Division shall be met, including but not limited to the following: 1. Approval of the Amendment shall be exercised within one (1) year, or said Amendment shall expire and be subject to revocation, unless an extension of time is approved in compliance with Section 88.52.040 of the Development Code. The permit shall not be deemed “exercised” until the applicant has commenced operation of the use and met all the Conditions of Approval. 2. Within Five calendar days from the date of approval the applicant/property owner shall provide the following to the Planning Division: a. Sign and return the Owners Acceptance form provided by the Planning Division. 3. The applicant shall continue to abide by the requirements of the Tax and Equity Fiscal Responsibility Act (TEFRA) Agreement that was previously entered into with the City. 4. If it becomes necessary for the City to take any legal action or commence any administrative proceedings against the applicant or any successor in interest in order to enforce any of the conditions of approval set forth herein, the City shall recover from the applicant or successor in interest reasonable attorney's fees and other reasonable costs incurred in such action or proceeding, provided that the City obtains a judgment in its favor in any portion of such action or proceeding. 5. The applicant or successor in interest shall be the real party in interest and shall assume primary responsibility for the defense of any legal action or proceeding commenced against the City to challenge the City's approval of Land Use Entitlements and/or the City's approval related to such land use approval. The applicant or successor in interest shall reimburse the City for all reasonable attorneys’ fees and other reasonable costs incurred by the City in defending such action or proceeding. 6. By accepting approval of the Land Use Entitlements subject to the conditions set forth herein, the applicant or successor in interest shall be deemed to have agreed to the terms and conditions set forth herein and the City shall have the right to enforce Page 2 of 2 in its sole discretion such terms and conditions by pursuing any and all available legal and equitable remedies. 7. Any changes to the conditions listed above must be approved by the Planning Commission. RECORDED AT THE REQUEST OF AND WHEN RECORDED RETURN TO: City of Azusa 213 East Foothill Boulevard Azusa, CA 91702 | Exempt from filing fees pursuant. Attn: City Clerk — to Government Code § 61-031 (Space above for Recorder’s use) DEVELOPMENT AGREEMENT by and between THE CITY OF AZUSA, a California municipal corporation and AZUSA PACIFIC UNIVERSITY, a California nonprofit corporation. ORANGE\SRC\20657. ARTICLE 1 General Provisions ..ccsusoessscssssesssseuiaseessssecunsstsesseensseepensetecinssnecunnascaanenns Section 1.1 1.1 ORANGEISRC\20657 TABLE OF CONTENTS De Pn itiOns.......cecceceeceed ce eneenetneeeueceara dees cae staeeeeusn cada neeersaneseeesedreteseeouasadaenanee! Adopting Ordinance .........ccccceetsseseeencsresseendenesennssesnseeensanturreyeenecnsernages ABLOCMCNE ...cecceieereneeeneeneeeneenenernetenreaas pegeescecteseetreraneettecensebeesessrastnseeas Annual Review......... deneeuseeerseuessneneensenrs pesgnereyereasenes seseesveneesaeeneensenssetenensee Applicable RUL@S ........:cccsesesesisiseeseseeeeecsetecreteacenseeneneneneassedeenereuenrscaeacacanes ASSUMMptiONn ABTECMENE. co... ccccesesrssenseternecceesveneneateseeasateasersenecerenevaneneney Certificate of OCCUPANCY «0... ceeescesescsutseetenensceseevenreeescattensneneneneseessececes City Attorney css sscnscereenssecsseesereneasioneeararectesecnaceassesanesseeneeteneneneaes City Council acc ccccccscssscssceseecneesseesneeseccsenessvbsnnessetesessunscaeveasssaessasarversvens Design Guidelines .......c..cecesseessseseseseessessessssnssneesvonacoverarserscnessnteatenseaseennes Development or Develop........cccceccecsssecesenscartdesteentennvarseersaseessattessensenens Development Approvals .......ccccessesesesssesenenestesnessceeceneianraaenennenacrcaererees Development. Plan. ...eeecccesceccescesssnseereersansenseseeseesceasenvaaesnasneananeenrecbens DGreCtr oe ccccccceseceeseeesseersceceseeereasseececensnssssrasesianscseeeusaanaeeareresensesaeeespsensaes Effective Date ...jccccccccecsccssccsneesnecbeatesseensetsaeevacsapesurensaneceeeesenteeeeasecsaeess Existing Development Approvals | Tmpact Fees ccc cece cecssseessessneseeeesnseseecenseenenenepeaneecepseenarsstoasensesenaneenateas General Plan............ dee vaensceecerarsese seasestevessereecageaersaeuees seveeeseecaeetees aesesres weve d MOT toa ges. ceccsscecpesesverrveescescsseesesedensevenseeeebessabeseassessesedenararensees Mortgagee ..... eee eecueuuevey saaqeacnacerscanesenses havea cevevausvuecereaees neserarensees deesesens 5 OWNED .cccceseccevenccecauareeesvnserarsnesesaasceerscesssssecuatenne beeseveneaes pevnevenereegbetgeamnecens (i) 1.1.23 [1.24 Project scsccccocsssssesccesuesssscessensevensssvapisesenserassenssensnseteneotscastenneee 1.4.25 1.1.26 1.1.27 1.1.28 T Section 1.2 Section 1.3 Section 1.4 Section 1.5 Section 1.6 Section 1.7 Section 1.8 Section 1.9 Section 1.10 Section 1.11 Section 1.12 Section 1.13 Section 1.14 Section 1.15 Section 1.16 Section 1.17 Section 1.18 Section 1.19 Section 1.20 ORANGE'SRC\20657. Processing Fees: and Charges .....cccesssusssesesneessereseeuseseaseseseneeaesesansbeess PLOPEILY oc... sccecsesscesesesteeecnensessensusensennareessenstessiaaeecaeenensadeneeseniesiegaseyeee tienes Specific Plan wo... sccsesccessecssecsssesesetenseessehesenersscesseccerscessereneracensensne ney seet Subsequent Development Approvals ..ccecseecscsccsssscsseessosesssecssursapecenseesneesses Incorporation Of Recitals......ccccsecscsecrstceeeersecteneseessteeeienensnenssens Project is a Private Undertaking ........-+cssssesssssenserseeeneesneeees tees Term of Agreement peeeeeneeaeseecrescanseseere aeseanes pesvaseerersgeseeesees beaceseseanes Consistency With General Plan ...........:ccseseeee cesses seenascuasasavaceaaes see Assignment and Assumption oc. .eiseceeseesesetesseserssesssssennnersereeecscasecsees Covenants Running with the Land... lec ese cece ceceesneaseasenenesseneees Amendment to Agreement (Owner and the City) ......cccesesctesescenseennene Amendment to Agreement (Owner Transferee.and the City)... NOtices .cccecscscecessestescaeceenssecesessecssaescoeveneeceavbeney duseseeesneasbaveesvaceaseecnaniceseeees Recordation OF AQTECMEN.....eveeseecrenntesesseesensaeeseterevirsareanareeacentententanntaens Invalidity of Agreement/Severability .............6 lecooseotenenasouseeatnasns Third Patty Legal Challenge. ..........--csssssssssssseesnseessesceeceeceesseentenneaneenennen Annual REViCW......cccceccssscencececeeeseeatseeereeteeevae#coecseaiseaseceeauenssgausaasanersatiey COVEMAMIS....sccsseercereereesreeesees seeteeeenee aeigncsessness aeseneeneaspeeseeees . Constructive Notice And Acceptance... eee eesassessntesersecsaseoes Estoppel Certificates ........ccceeeereeeceecaee Time Of The Essence ...cccecescsssecccssecsscescesenssteeees servenseceneee seaeanunes Waive... severeersitereeaesenenscaes aneeetepeseetacnecetonseereaeonnbeseesees besveineens i) Applicable Law and Attomeys’ Fe@S..... cece paveteneveens aeuenedieentacsscanerensnasne D. stneees “109 10 sesereeei LO Section 1.21 Section.1.22 Section 1.23 Section 1.24. Section 2.1 Section 2.2 Section 2.3 Section 2.4 Section 2.5 Section 2.6 Section 2.7 Section 2.8 Section 2.9 Section 2.10. Séction 2.11 Section 2.12 Section 2.13 Section 2.14 Section 2.15 Section 2.16 2.16.1 Encumbrance of Owner's interest No Third Party: Beneficiaries. ........cceceeceeeeeseeeeeteeentsnneneserseecocersenaesens Entire Agreement. .....ccccesccecessnesesseenecesnesnenreresneessnsssessneepsrenessenevneeeeate! Legal Advice; Neutral Interpretation; Headings, and Table Of COMMENES. wo.ceceecrenseeccecesconsndenrerneensseeseueeedanuaspeerecunassecseqsesaneasnusegeseqanaterseg Counterparts. ......ccceccscesseesseseeersenrerereeesees essseneesensneaceresescescneeseee peseeees ARTICLE 2 Project Development....cssssesssesseeessrescrseectseseeeeneceneneeiearthinesosnsiassonateasassnanansanes Vested Right to Develop... sesneseesseeseecenes sasceseaceasseseentseeeneesenes Permitted Uses and- Development Standards. .o00...c.ceseceecrcsesenesgeeceeeeeees Subsequent Zoning Ordinance Amendment. .........0... sesseevessneeeseteneeese Minor Deviations. .......:2:ccsccssseecenssesenrsesseeneseesesstecesnesesavenceaecuenecneneenans No Conflicting Binactment. .... cece eeecseternesee secs rdeceestensersnaeneanens State and Federal Laws. .....:ccccsccscereesssesseeeesasecncveseenees eeuntecuvecensecseee Processing or Implementing. Subsequent Development ADpProvalls. ....cccessetcecneseectsepeinsesussesevuacoecoesenenaeereeanderarseneeaerensses faces idanensaes Changes and Amendments to. ADPTOVAIS. ..cscecescesecsseseesecsesseceeesecvesecnstens Genetal Provisions Regarding Community Facilities Districts and Similar Financing Mechanisms...c....ccccceeesectersccsseeneeseenseterneceesers Processing Fees and Charges .....sescseresscrecersseeessesssrsasseesnnssersarencnens No New Impact Fees... .ccccsscisseeeescereerenteneesceeeeesacseasvesnenersneenreseecans Environmental Compliance oo... seccecccaseresseneeneneetenesnensitnensaeoenes Timing of Development ...ccccecccccrescesesestsesesseseenensenenseensnedheasensessens Public Work cccccccscccssesessessesssesseveeslenearbeccnenteescataneansnesnenesesticenenetsesseenaees Owner Obligations... sessessnssecnesescaseaceusageauaneenaseeeesees pestenesees Obligations and Rights of Mortgage Lenders...:.1......csceseeeesseecneeneiens PoP ePES TPIT Seer SP reret Titre eos) beaes 10 beens 11 seane 1] 11 11 vere 12. 12. 13 13 13 13 13 i4 14 2.16.2 Obligations and Rights.....:....:cceeeeeeee sasnssgetectseasseersegenensncosasennes seseee LT ORANGEISRC\20657. (iii) 2.16.3 City Cooperation in Providing Notices to COMUMILY........: cesses ARTICLE 3. Entitlement and Permit Processing, Inspections -..........::s:sceeeeeeneesessencerssenee b Section 3:] Section 3.2 Section. 3.3 Section 3.4. ‘Section 3.5 Section 3.6. ARTICLE 4 Defatlltecccsccsccscesccccssecscssvessescsssessnsenenrseavssagssesneeareerccnceateaevessasscenasseietsesadacneeasanscees Section 4.1 ‘Section 4.2 Section 4.3 Section 4.4 Section 4.5 Séction 4.6 ARTICLE 5 Arbitration of Disputes ..........ccseccsssssesssessueserncereeshineseeesseassseariesnieseneesanecaneenneees City Approvals... cect cssenereretneeesssccusedeesnrenesssscseencaseanennennguenianeasnenanes Duty to Grant and Implement ...csscssssscecssesssssseseceeseceeessectenseeseneneerneenecies Processing Obligations........:scrsccestsscecessseaeerees segeveeseeessseaseeees werseeeeee 18 No Revocation; Disapprovals ........cecccesctsseesesensetiecnetenneeeteeaprenenatenrs toe: State, Federal or Case. Law ........... vaeudscupeensesapancecapseecusssesauevenseveeeseeeeaaness 20 Processing Cooperation ....csccccsessssscseseesstersreescreceseqracensetbaesrensnenegenesensennd General Provisions ......ccccceeecesescsceessesessenssesbesscnsbacsenessenssarcesnpnaconerenensey Default by Developer/Withholding of Building Permit.......... cece Developer Default Limited to Property/Entity; Obligations Of OWMmeTS .... ccc cesssssneneenssenscadenteneeeebeeetenersneeceserenneseress Default by City... ssc seesesvseesssssestecnssneessnsancnnsennnessonsesnsenetssnseansareasanes Cumulative Remedies of Parties ....ccecccpcsecsscessssseseensscseseseeescetnvsneneeneivaes Several Enforced Delay, Extension of Times of Performance ..,......1seeenreees 21 ARTICLE 6 Terminatione.......cceeccscsseesssteneneeeerneeanneneceesseasinsenees Suceceaceassneescesacsnsstanreecaesers 23 Section 6.1 Section 6.2 Section 6.3 ORANGE'SRC\20657. Termination Upon Completion of Development .........ccreieecnenee ad Effects Upon Termination on Developer Obligations coseeenecsseessetenanesennse Effects Upon Termination on City... ssssssssssetessvesersseteccssesssneessned (ivy LIST OF EXHIBITS Exhibit“A” Legal Description of the Property Exhibit“B” | Assumption Agreement Exhibit “C” Existing Development Approvals. 44 Let y?? o Exhibit “E” Mitigation and Monitoring Plan ORANGENSRC20657 (i) ‘Development Agreement by and between the City of Azusa and Azusa Pacific University Relative to the Development Known as the Azusa Pacific University Specific Plan This Development Agreement ("Agreement") is made and entered into this 19th day of September, 2005, by and between the CITY OF AZUSA, a political subdivision of the State of California (“City”), and AZUSA PACIFIC UNIVERSITY, a Califomia nonprofit corporation (“Owner”), pursuant to the authority of Article 2.5, Chapter 4, Division 1, Title 7 (Section 65864, et seg. of the Government Code) relating to Development Agreements. The City and Owner are hereinafter sometimes referred to individually as a “Party” and jointly as the “Parties.” RECITALS 1. In:order to strengthen the public land use planning process, to encourage private participation in the process, to reduce the economic risk of development and to reduce the waste of resources, the Législature has adopted the Development Agreement Law (Section 65864,,et seg. of the Government Code). 2. Pursuant to the Development Agreement Law, the City is-authorized to. enter into bindmg development. agreements with persons having legal or equitable interests in real property for the development of such property. 3. The City has adopted rules and regulations for consideration of development agreements pursuant to the Development Agreement Law. 4, Owner is the present Owner of the. real property described in Exhibit "A" hereto (the "Property”) that is the subject of this Agreement. 5. Development of the. Property in accordance with this Agreement will provide substantial benefits to the City, including without limitation certain fees, public dedications and public improvements which the City could not legally impose on the development of the Property, and will further important policies and goals of the City. 6. This Agreement will eliminate uncertainty in the planning process and provide. for the orderly development. of the Property, ensure progressive installation of necessary improvements, provide for public services appropriate to the development of the Property and generally serve ihe plirposes for which developments agreements are authorized pursuant to the Development.Agreement Law. 7. The City has, or by the Effective Date of this Agreement will have, approved the Azusa. Pacific University Specific Plan ("Specific Plan") for the Property pursuant to applicable City ordinances: and regulations. &, All of the réquirements of the California Environniental Quality Act (Public Resources Code §§ 21000 et seg.) ("CEQA") have been met with respect to the Specific Plan and this Agreement, and the City has previously reviewed, considered, and certified the Azusa Pacific University Specific Plan ORANGE\SRC\20657. Environmental Impact Report (SCH No. 2002121092) ("EIR") and adopted Findings and ¢ a Statement of Overriding Considerations and a Mitigation Monitoring and Reporting Plan applicable thereto. %9L Development of the Property pursuant to the terms and conditions of this Agreement, the Specific Plan, and the EIR will provide for orderly growth and development consistent with the City’s General Plan and other development policies and programs. 10. ‘In order to provide certainty and render development of the Property more feasible-in light of the large amount of capital investment necessary to. implement the Specific Plan and the extended planning. horizon necessary to coordinate a project of this magnitude and complexity, Owner requires assurance from the City, with respect to the Property that the Specific Plan and other City permits and approvals shall, to the extent specifi ed herein, not be-changed or supplemented with inconsistent burdens and exactions. 11. The City Planning Commission, designated by the City as: the Planning Agericy for purposes of Development Agreemenit review pursuant to Government Code Section 65867, held a duly noticed public hearing on Owner's application for this Agreement and recommended that the City Council approve this Agreement. 12. On September 19, 2005, the City Council held a duly noticed public. hearing on Owner's application for this Agreement.and by Ordinance No, 05-08 approved this Agreement. 13. Having duly considered this Agreement and having held the noticed public hearings, the. City finds and declares that the provisions of this Agreement are consistent with the City’s General Plan and the Specific Pian. NOW, THEREFORE, pursuant to the authority contained in the Development Agreement Law, and in. consideration of the premises and mutual promises and covenants contained herein, and other valuable consideration the receipt and adequacy of which the Parties hereby acknowledge, the Parties hereto agree as follows: ARTICLE 1 General Provisions Section 1.1 Definitions. As used in this Agreement, except as otherwise expressly.provided or unless the context otherwise. requires, the following terms, phrases and words shall have the meanings and be interpreted as set forth in this Section. 1.1.1 Adopting Ordinance means Ordinance Number 05-08 entitled: “An ordinance of the City Couneil of the City of Azusa Approving and Authorizing Execution of a Development Agreement by and Between the City of Azusa and Azusa Pacific University”, dated October. 3, 2005 and effective November 2, 2005, which approves this Agreement as required by Government Code Section 6586715. 1.1.2 Agreement means. this Development Agreement and all amendments and modifications thereto. 1.1.3. Annual Review means the annual review process as described in Section 1.15 of this Agreement. ORANGE\SRC\20657. 1.1.4" Applicable Rules means the rules, regulations, ordinances and officially adopted policies of the City-in-force as-of the Effective Date of this Agreement, including but not limited to the City's General Plan, thé Specific Plan, and the Azusa Municipal Code. Notwithstanding the language of this Section or any other language in this Agreement, Applicable Rules. shall mean and include this Agreement. and all Impact Fees applicable to the Project in effect as of the Effective Date of this Agreement. Applicable Rules shall not include:Processing Fees and Charges. 1.1.5 Assumption Agreement means an agreement substantially in the form attached as Exhibit “B” hereto, or other agreement in.a form .approved by the City Attorney, executed by an Owner. Transferee, expressly assuming various obligations relating to the development of the Project,. or portion thereof. 1.1.6 Certificate of Occupancy means a certificate issued after inspections by City authorizing a person or petsons in possession of property to dwell or otherwise. use a specified building or dwelling unit. 1.1.7 CEQA means. the California Environmental Quality Act, Sections 21000, et seg., of the Public Resources Code of the State of California. 1.1.8 City Attorney means the City Attorney of the City of Azusa. 1.1.9 City Council means the duly elected legislative body governing the City. 1.1.10 Design Guidelines means the Design Guidelines set forth.in Section 6 of the Specific: Plan. 1.1.11 Development or Develop means the improvement of the Property for purposes of constructing and completing the structures, improvements and facilities comprising the Project, including, but not limited to: grading, the construction of infrastructure and public facilities related to the Project wheiher located within or outside the Property, the construction of buildings and structures, and. the installation of landscapirig: Development or Develop includes the operation, use and occupancy or, ‘and the right to maintain, repair, or reconstruct, any private building, structure, improvement or facility after the construction and completion thereof; provided, however, that such repair, or reconstruction takes place ‘within the Term.of this Agreement on parcels-subject to it. 1.1.12 Development Approvals means all actions which require the exercise of judgment or a discretionary decision by the City in connection with Development of the Property including: (i) General Plan amendments). Gi) Specific plans and specific plan amendments; (iii) Zoning; (iv) Tentative and final subdivision and parcel maps; (v) Conditional use permits, but only as to those conditions and requirements. pertaining ‘to the Development of the Property; ORANGE\SRCW0657, (vi) Preliminary plans, conceptual plans, design review approvals, development review approvals and precise plans; - (vii) Demolition, grading and building permits; and (viii) Any. environmental approvals. and certifications. oe < Development Approvals specifically do not include this Agreement. 1.1.13 Development Plan means the Existing. Development Approvals applicable to the Development. of the Property, as implemented, refined, modified and supplemented by Subsequent Development Approvals. 1.1.14 Director means the Director of Economic and Community Development for the City. 1.1.15 Effective Date means the date on which this Agreement js attested by the. City Clerk of the City after approval by the City Council and execution by the Mayor of the City and Owner. 4.1.16 EIR means the Final Environmental Impact Report (SCH No: 2002121092) certified by the City for the Project pursuant to the requirements of CEQA. 1.1.17 Existing Development Approvals means ‘all Development Approvals approved or issued on or before the Effective Date, including the Azusa Pacific University Specific Plan (SP-7), and the Mitigation Monitoring Plan, incorporated herein as Exhibit “C”’. 1.1.18 Impact Fees means impact fees, linkage fees, exactions, assessments or fair share charges or other similar impact fees or charges imposed on and in connection with new development by the City pursuant to rules, regulations, ofdinances and policies of the City. Impact Fees do not include Processing Fees and Charges. 1.1.19 General Plan means the General Plan of the City. 1.1.20 Mortgage shali have the meaning set forth in Section 2.16.1 hereof. 1.1.21 Mortgagee shall have the meaning set forth in Section 2.16.2 hereof. 1.1.22 Owner means Azusa Pacific University, the current Owner of the Property, and each of its successors in interest as the Owner of all or any part of the Property. 1.1.23 Processing Fees and Charges means all city-wide fees and charges duly adopted and imposed by the City to defray actual costs of processing. entitlement applications, including,’ but not limited to, fees for land use applications, project ‘permits, building permit applications, building permits, grading permits, encroachment permits, tract or parcel maps, lot line adjustments; -air right lots, street vacations, Certificates of Occupancy and other similar permits. Processing fees and charges shall not. include Impact Fees. 1.1.24 Project means the Development and use of the Property. in accordance with the Specific Plan. The Specific Plan describes the future expansion and physical development of Azusa Pacific ORANGE'SRC120657. University, a private, nonprofit, university located on approximately 100 acres. in the northeast portion of the City. As described in the Spécific Plan, the Project includes. the following elements: (1) apptoximately 1,272,000 gross square feet of academic facilities, including administrative offices and classroom space, (2) approximately 950,000 square feet of student housing, containing. approximately 3,560 beds, (3) approximately 6,500 square feet of commercial development, (4) athletic facilities, (5). parking for 3,088 cars, and (6) open space, recreational, and student dining facilities. . 1.1.25 Property means the area of approximately 100 acres‘owned by Owner within the.area encompassed by the Specific Plan which is more specifically described in Exhibit “A” attached hereto. 1.1.26 Specific Plan means the Azusa. Pacific University Specific Plan as it may be amended from time to time by the City at the written request of Owner. The Specific Pian also sets forth detartied development standards, design and an implementation plan for the Development of the Project. 1.1.27 Subsequent Development Approvals means all Development Approvals required subsequent to the Effective Date, in connection with Development of the Project on the Property, including, without limitation, subsequent tentative tract maps, design review approvals and subdivision improvement agreements which require the provision of bonds or other secunty. Subsequent Development.Approvals. include, without limitation, all excavation, grading, building, construction, demolition, encroachment or street improvement permits, conditional use permits, tree removal permits, landscaping permits, occupancy certificates, community facilities. districts or similar financing: mechanisms, utility connection authorizations, engineering design and master plan design drawings, utility plans, permits, authorizations and approvals. Development Approvals required under the conditions of approval of the Existing Development Approvals, or other permits or approvals necessary, convenient or appropriate for the grading, construction, marketing, usé and occupancy of the Project at such times.and in such sequences as Owner may choose consistent with the Development Approvals shall become part of the Applicable Rules for the Property, and the Owner shall have a “vested right,” as-that term is defined under California law, in and to such Subsequent Development Approvals by virtue of this Agreement. 1.1.28 Term means the period of time. during which this Agreement shall be in effect and ghall bind the City and Owner as described in Section. 1.4 below. Section 1.2 Incorporation of Recitals. Recitals 1 through 13. are incorporated herein, including all Exhibits referred to in said Recitals. In the event of inconsistency between the Recitals and the provisions of Articles. 1 through 5, the-provisions of Articles 1 through 5 shall prevail. Section 1.3 Project is a Private Undertaking. It is agreed among the Parties that the Project is a private development and that the City has.no interest therein except as authorized in the. exercise of its governmental functions. Section 1.4 Term of Agreement. This Agreement shall commence upon the. Effective Date and. shall continue in force for a period of twenty (20) years, unless extended or terminated .as provided herein. At the Owner’s-written request, the City Council may consider an extension of the term of this Agreement. Following the expiration of the Term or extension thereof, or if sooner terminated, this Agreement shall have no force-and effect, subject, however, to post-termination obligations of Owner or the City as described herein, including, but not limited to payment of the Fiscal Impact Fee set forth below. ORANGE\SRC\20657. Section 1.5 Consistency: With Genera] Plan. As set forth in greater detail in the ordinance adopting the Specific Plan, the City Council expressly. found that the approval of the Specific Plan -is consistent with the General Plan. The City Council further finds that this Agreement is also consistent with the General Plan.. Section 1.6 Assignment and Assumption. Owner shall have the right to sell, assign, or transfer this Agreement with all the rights, title and interests herein to any person, firm or corporation at any time. during the term of this Agreement. If Owner transfers all or any portion of the Property ("Transferred. Property") to any person or entity (a "Transferee"), the Transferee shall succeed to all-of Owner's rights and obligations under this Agreement regarding the Transferred Property. To the éxtent that this Agreement. states that a right shall be exercised by Owner at its "sole election" or in its “sole discretion", Owner: shall have the right in its sole discretion to determine whether such right shall be transferred in whole or in part. to. a Transferee. A written assignment and assumption agreement ("Assumption Agreement") substantially in the form attached hereto.as Exhibit "B" shall be executed by the Transferee, and a copy provided to the City. Thereafter, a default under this Agreement by Owner regarding. that portion of the Property other than’ the Transferred Property (the "Remaining Property") shall not be considered or acted upon by the City as a default by the Transferee regarding the Transferred Property and shalt not-affect: the Transferee's rights or obligations regarding the Transferred Property. Likewise, a default by a Transferee relating to the Transferred Property shall not be cofisidered or acted upon by the City as:a default by Owner regarding the Remaining Property and. shall not affect the Owner's nghts and obligations regarding the Remaining Property. Section.1.7 Covenants Running with the Land. Each and every Transferee shall be obligated and bound by the terms and conditions of this Agreement, and shall be. the beneficiary thereof and a party thereto with respect to the Transferred Property: Any such Transferee sh all observe and fully perform all of the duties and obligations contained in this Agreement, as such duties. and. obligations pertain. to the Transferred Property. Section 1.8 Amendment to Agreemeat (Owner and the City). This Agreement may be. amended by mutual consent of the Parties.in writing, in accordance with the provisions. of Government Code. Section 65868, provided that: a major amendment which relates to the term, permitted uses, density, intensity of use, height and size of proposed buildings, or provisions for reservation and dedication of land shall require a public hearing before the Parties may execute an amendment. Unless otherwise provided by law, all other amendments may be executed without a noticed public hearing. In addition, within the limits. of the authority granted to him or her, the Director may, with the consent of Owner, make the following minor modifications to this. Agreement without the neéd for formal. action by the City’s Planning Commission or City Council: 1.81. Minor Project modifications such as are permitted under the Specific Plan; 1.8.2 Minor modifications of schematic plans previously approved by the City; 1.8.3 Minor modifications’ ‘including extension of the Term of this Agreement as. provided in Section 1.4, the permitted uses, density or intensity of uses, the maximum height or size of buildings, provisions for reservations or Dedication of land, conditions, terms, restrictions and requirements relating to Subsequent Development Approvals, and. motietary contributions by the.Owner. ORANGE'SRCW20657, Section 1.9 Amendment to Agreement (Owner Transferee and the City). This Agreement may also be amended, subject to the provisions of Government Code Section 65868 and Section 1.8 above, between an Owner Transferee who has acquired ’a portion of thé Property from Owner and the. City as to the Transferred Property. . Section 1.10 Notices. Amy notice or communication required hereunder between the City and. Owner must be in writing, and may be given either personally, by registered or certified mail, return receipt. requested, by overnight delivery, or by facsimile transmission. if given by tegistered or certified mail, the. same shall be deemed to have been given and received on the first to occur of (i) actual receipt by any of the addressees designated below as the Party to whom notices aré to be'sent, or (ii) five days after a registered or certified letter containing such notice, properly addressed, with. postage prepaid, is deposited in the United States mail. If personally delivered, a notice shall be deemed to have been given when delivered to the Party: to whom it is. addressed. If delivered by facsimile transmission, a notice shall be deemed to have been given on the date of delivery by facsimile transmission. Any Party hereto may at any time, by giving ten days’ written notice to the other Party hereto, designate any other address in-substitution of the address, or any additional address, to which such notice or communication shall be given. Such notices or communications: shall be given to the Parties at their addresses set forth below: If to the City: with copies to: City Manager Azusa City Attorney City of Azusa c/o City Clerk . 213 East Foothill Boulevard City of Azusa Azusa, CA 91702. 213 East Foothill Boulevard Facsimile: (626).334-6358 Azusa, California 91702. Facsimile: (626) 334-6358 If to Owner: with copies to: Azusa Pacific University Allen Matkins Leck Gamble & Mallory LLP 901 Alosta Avenue. 1900 Main Street, 5” Floor Azusa, California 91702 Irvine, California Attn: Mark Dickerson Attn: William R. Devine, Esq. Facsimile: (626) 815-2046 Faésimile: (949) 553-8354 Section 1.11 Recordation of Agreement. The City Clerk of the City shall, within ten days after the Effective Date, record a copy. of this Agreement with the County Recorder of the County of Los Angeles. Section 1.12. Applicable Law and Attorneys’ Fees. This Agreement shall be construed and enforced in accordance with the laws of the State of ‘California, and ‘the venue for any legal actions brought by any Party with respect to this Agreement shall be the County of Los Angeles, State of California for state actions and the Central District of California for any federal actions. If any legal action is commenced by either Party for breach of this Agreement to test. the validity hereof, or to ‘enforce any provision, the ORANGE'SRC\20657. prevailing party shall be entitled to reasonable attomeys’ fees, court costs, expert witness fees, and such other costs as may be fixed by the court. Section 1.13° Invalidity of Agreement/Severability. If this Agreement in its entirety is ‘determined by a court of competent jurisdiction to be invalid or unenforceable, this Agreement shall automatically terminate as of the date of final entry of judgment: If any provision of this Agreement shall be. determined by a court to be invalid and unenforceable, or if any provision of this Agreement is rendered invalid or unenforceable according to the terms of any statute of the State of California which became effective after the Effective Date, the remaining provisions shall continue in full force and effect. Provided, however, notwithstanding the foregoing, if Owner determines such provision or provisions are material to its entering into this Agreement, then Owner, in its sole and absolute discretion, may ‘elect to. terminate this Agreement by giving written notice to the City. Section 1.14 Third Party Legal Challenge. Jn the event that any legal action or special ptoceeding is commenced by any persoti or entity other than a Party or a Owner Transferee, challenging this Agreement or any provision herein, the Parties and any Owner Transferee. agree to:cooperate. with each other in good faith to defend said lawsuit, each party and any Owner Transferee to. be liable for its own legal expenses and costs. Notwithstanding the foregoing, the City may elect to tender the defense of any lawsuit. filed by a third person or entity to Owner and/or Owner Transferee(s) (to the extent applicable thereto), and, in such event, Owner and/or such Owner Transferée(s) shall hold the City harmless from and. defend the City from all costs and expenses incurred in the defense of such lawsuit, including, but not limited to, attorneys’ fees and expenses of litigation awarded to the-prevailing party or parties in‘such litigation. Section 1.15 Annual Review. The City shall, at least every twelve months during the Term of this Agreement, review the extent of good faith substantial compliance by Owner and any Transferee with the terms of this Agreement. Such periodic review shail be limited in. scopé to compliance with the terms of this Agreement pursuant to California Government Code Section 65865.1. Said review shall be completed within sixty days of the first meeting of the Planning Commission at which such review is undertaken, unless said period is extended by mutual consent of City and Owner. Failure to complete. said review within the prescribed period shall be deemed a finding.of good faith substantial compliance. Notice of such Annual Review shail include the statement that any review may result in amendment or termination of this Agreement. A finding by the City of good faith compliance by Owner and any Transferee with the terms of the Agreement shall conclusively determine said issue up to and including the date of said review. The City shali deposit in the mail to Owner and/or any Transferee a copy of all staff reports and, to the extent practical, related exhibits concerning contract performance at least ten calendar days prior to such Annual Review. Owner and any Transferee shall be permitted an opportunity to be heard orally or in writing regarding its performance under this Agreement before the Planning Commission and, if the matter is reférred to the City-Council, before said Council. Section 1.16 Covenants. The provisions of this Agreement shall constitute covenants: which shall run with the land comprising the Property for the benefit thereof, and the ‘burdens ‘and benefits hereof shall bind and inure to the benefit of all assignees, transferees, and successors to the Parties hereto. Section 1.17 Constructive Notice And Acceptance. Every person who now or hereafter owns or acquires any right, title, interest in or to any portion. of the Property, is and shall be. conclusively deemed ORANGEISRC\20657. to have consented and agreed to every provision contained herein, whether or not any reference to this. Agreement is contained in the instrament by which such person acquired an interest in the Property. Section 1.18 Estoppel Certificates. Either Party may, at any time, deliver written notice to: the other Party requesting ‘such Party to certify in writing that, to the best knowledge of the. certifying Party, G) this Agreement is in full force and effect and a binding obligation of the Parties, (ii) this Agreement has not been amended or modified either orally or in writing, and if so amended, identifying the amendments, and (iit) the requesting Party is not.m default in the performance of its obligation set forth in this Agreement or, if in default, to describe therein the nature and amount of any such defaults. A Party receiving a request hereunder shall execute and return such certificate within thirty days following the receipt thereof. Any third Party including a Mortgagee shall be entitled to rely on the certificate. Any attorney's fees and costs associated with the preparation, review and execution ‘of such certificate shall be paid by. the Party requesting the certificate. Section 1.19 Time Of The Essence. Time is of the essence for each provision of this Agreement of which time is an element. Section 1.20 Waiver. No waiver of any provision. of this Agreement shall be effective. unless in: writing and signed by.a duly authorized representative of the Party against whom enforcement of a:waiver is. sought and refers expressly to this Section. No waiver of any right or remedy in respect of any occurrence’ or event shall be deemed a waiver of any right or remedy in respect of any other occurrence or event. Section 1.21 No Third Party Beneficiaries. The only Parties to this Agreement are the City and Owner and their successors-in-interest. There aré no third party beneficiaries, and this Agreement. is: not intended; and shall not be construed to be for the benefit of; or be. enforceable by, any other person whatsoever. Section 1.22 Entire Agreement. This Agreement sets forth and contains the entire understandings and agreemenits of the Parties and there are no oral or written representations, understandings or ancillary covenants, undertakings or agreements which are not contained or expressly referred. to herein and no testimony or evidence of any such representations, understandings, or covenants shall be admissible ii any proceedings of any kind or nature to interpret or determine the provisions ot conditions of this Agreement. . . Section 1.23 Legal Advice; Neutral Interpretation; Headings, and Table Of Contents. Each Party has received independent legal advice from its attormeys with respect to the advisability of executing this Agreement and the meaning of the provisions hereof. The provisions of this Agreement shall be construed as to. their fair meaning, and not for or against any Party based upon any attribution to such Party as'the source of the language in question. The headings and table of contents, used.in this Agreement are for the convenience of reference only and shail not be used in construing this Agreement. Section 1.24 Counterparts. This Agreement may be executed in duplicate originals, each of which will be deemed to be an original. ORANGE\SRC\20657. Article.2 Project Development Section 2.1 Vested Right to. Develop. Owner shall have the vested right to develop the Property in accordance with the terms and conditions of the Existing Development Approvals and the Applicable Rules. Section 2.2 Permitted Uses and Development Standards. The permitted uses, the density and intensity of use, the maximum height and size of proposed buildings, provisions for reservation and dedication of land or payment of fees in li eu.of dedication for public purposes, the construction, installation and-extension.of public improvements, development guidelines and standards, implementation program for processing of subsequent entitlements and other conditions of Development for the:Property shall be those set forth in the Existing Development Approvals and the Applicable Rules. The Parties hereto intend that this Agreement, together with the Existing Development Approvals and the-Applicable Rules, shall serve as the definitive and controlling documents for all subsequent actions, discretionary or ministerial, relating to. the Development and occupancy of the Project. Section 2.3. Subsequent Zoning Ordinance Amendment. If the Azusa Municipal Codé is. amended. after the Effective Date to authorizé greater densities and intensity of use or greater maximum height and size of buildings, the amended provisions shall apply to the development of the Property. Section 2:4 Minor Deviations. Minor deviations from the approved exhibits may be approved in accordance with the provisions of the Specific ‘Plan and. shall not require an amendment to this Agreement. Similarly, administrative changes to the Specific Plan made in accordance with the provisions of Section 7.8.1 thereof shall not require an amendment to this Agreement but shall automatically be. deemed incorporated herein. Section 2.5 No Conflicting Enactments. Neither the City nor any agency of the City shall enact any ordinance, resolution, or other measure ‘that relates to the rate, timing or sequencing: of the development or construction of the-Property on, all or any part of the Property that is in conflict. with this Agreement as amended, or that reduces the development tights provided by this Agreement. Without limiting the foregoing general statement, and for all purposes pursuant to this Agreement. generally, and this séction specifically, an ordinance, resolution or other measure shall be deemed to conflict with this Agreement if the ordmance, resolution, or measure seeks to accomplish any one or more of the following results, either with specific reference to the Property or as part of a general enactment that applies to the Property: 2.3.1 Limiting or reducing the density or intensity of Development on the Property; 2.5.2 Limiting the timing of the Development of the Property in any manner; 2.5.3 Applying to the Property any law, ordinance, regulation, or rule otherwise allowed by this. Agreement that is not uniformly applied on a City-wide basis to all substantially similar types of : uses, whether already:constructed, or as yet to be constructed. ORANGE'SRC\W20657. Notwithstanding any provision of this Agreement to the contrary, the City shall have the tight, to the extent mandated by law, to enact ordinances necessary to protect the citizens of the City from an immediate adverse:health or safety risk. Except as necessary to. protect the. citizens of the City from an immediate adverse risk to health or safety, if an ordinance, resolution or other measure is enacted, whether by action of the City, by initiative, by referendum, or otherwise, that relates to any aspect of the. development of the Property,. including, without. limitation, the type, building standards, rate, timing or sequencing of such development, the City agrees that such ordinance, resolution or other measure shall not apply to the Property. or the Development of the improvements related thereto. Without limiting the. foregoing, except as otherwise provided in the Specific Plan and the Applicable Rules, the City agrees that no moratorum (whether relating directly to the building of imiprovements, the ability to connect to water, sewer or other services or indirectly impairing the vested right to develop under this Agreement) or other limitation (whether relating to the rate, timing or sequencing of development) affecting subdivision maps, building permits or other entitlements that are approved or are to be approved, issued or granted. within the City, or portions of the. City, shall apply to the Property or the Development of the Project. To the maximum extent permitted by law, the City agrees to use. its best, efforts to prevent any such ordinarce, measure, moratorium, or other limitation from invalidating or prevailing over all or any part of this Agreement, and the City agrees to cooperate with Owner in a reasonable manner in order to keep this Agreement in full force and effect. The City shall not support or adopt atiy initiative, referendum, moratorium, ordinance, or policy, or take any other action, 1f such support, adoption, or other action would violate the intent of this Agreement. Owner reserves the nght io challenge any such ordinance or other measure in a court of law should it become necessary to protect the development rights vested in the Property pursuant to this Agreement. Section 2.6 State and Federal Laws. As provided in California Government Code Section 65869.5, and notwithstanding any other provisions of this Agreement, this Agreement.shall not preclude the application to the Property of changes in the City laws, regulations, plans or policies, to. the extent that such changes in the City laws, regulations, plans or policies are specifically mandated and. required to be applied to the Property by changes in state or federal laws or re gulations. Section 2.7 Processing or Implementing Subsequent Development Approvals. The City shall retain its discretionary powers in conducting hearings, and reviewing and acting on applications for Subsequent Development Approvals (other than ministerial determinations, including approval of the substantial conformance maps for tentative tract maps) for the Project not yet granted on the Effective Date, and imposing. reasonable conditions in connection with such Subsequent Development Approvals, provided that the reviews shall be applied.in a manner that is-consistent with this Agreement, the Specific Plan and the Applicable Rules and provided that any such Subsequent Development Approvals and the conditions thereto do not materially delay, impede, interfere with, or place burdensome or restrictive measures in connection with, the Development of the Project or any portion thereof or the land uses, densities or intensities of use, the timing of any requirements to dedicate land, or other matters covered by this Agreement, and provided further that such conditions shall not impose additional obligations to dedicate land or infrastructure and public improvement requirements, fees or other Project development exactions in excess of those identified in this Agreement. The City shall promptly consider and adopt or grant the necessary Subsequent Development Approvals for the Project which are a logical evolution of and which will accomplish ‘the goals, objectives, policies and plans of the Project, including, without limitation, grading plans, engineering plans, utility plans, and architectural and design plans. The City shall not impose any conditions, items, restrictions or requirements upon the Subsequent Development Approvals which are inconsisterit with this ORANGE\SRC120657. Agreement or which will, directly or indirectly, prevent, impede or hinder development of the Project. Owner applying for any Subsequent Development Approval may protest any conditions; dedications, development exactions or fees while continuing: with the development of the Property while. satisfying the protested item, and such a protest shall not delay or stop the issuance of building permits or Certificates of Occupancy. Section 2.8 Changes and Amendments to Approvals. Throughout the Term of this Agreement, Owner shall have the right, at its election and without risk to any tight that is vested pursuant to this. Agreement, to apply to the City. for modifications to the Specific Plan and Subsequent Developmient Approvals. Upon application by Owner for a Subsequent Development Approval to effectuate such change, the City shall. act on such application in accordance with the Applicable. Rules, provided, however, that a Subsequent Development Approval shall not be required for minor amendments (as specified in Section 1.8 above). The: processing, review and approval by the City of any such modifications shall proceed in accordance. with Section 2.7 above. The approval or conditional approval of any such tnodification shall not requiré an amendment. to this Agreement, provided that, in addition to any other findings that may be required in order to approve. or conditionally approve the modification, a finding is made ‘that the modification is consistent with this Agreement. If approved, ‘any such change in the Existing Development Approvals or the Subsequent Development Approvals. shall be incorporated as an addendum to Exhibit “C” (Existing Development Approvals), and may be further changed from time to time as provided in this Section 2.8: Section 2.9 [Intentionally Omitted.] Section 2.10 Processing Fees and Charges. Processing Fees arid Charges that are revised during.the Term of this Agreement shall apply to the development pursnant to this Agreement provided that (a) such.revised féés. apply to- all private projects or works within City, (b) the application of such fees to development of the Property is prospective only, atid (c) the application to development of the Property would not conflict with the terms, spirit and intent of this Agreement, nor frustrate implementation or require an amendment of any of the exhibits incorporated herein. Section 2.11 No New Impact Fees. Except.as expressly provided in Sections 2.6 and 2.7 of this Agreement, neither Owner nor its successor(s) in interest shall have any obligation to participate in, pay, contribute, or otherwise provide as a condition or exaction of any subsequent approval by the City, any new Impact Fees, however described or defined, imposed by the City after the Effective Date. Section 2.12 Environmental Compliance. After consideration of the potential ‘adverse. environmental impacts associated with the Project, the City has imposed mitigation measures in accordance with CEQA, as specified 1 in the Mitigation Monitoring Plan attached as Exhibit “E” to the fullest extent the City considers: feasible and necessary. The. City has determined that the Development of the Project in the manner contemplated by the Development Approvals and this Agreement will provide the mitigation meastres needed to alleviate short-run and long-run potential adverse environmental impacts created by the Project, and that the public benefits to be derived from the Development of the Project-override any potential adverse environmental impacts which may arise from the Development of the Project. Therefore, the City agrees that no subsequent or supplemental EIR shall be required by the City for the Subsequent Development Approvals. implementing the Development of the Project pursuant to the. Development Plan unless required pursuant to California Public Resources Code Section 21166. and Title 14 Califomia Code of Regulations, Section 15162. For purposes of this analysis, the term “new information” does. not mean ORANGENSRCW0657. discovery that probabilities of adverse (or beneficial} results considered in the approval of this Agreement, the Existing Development Approvals or the. EIR may prove incorrect, or that such probabilities are or are not becoming, or have or have not become; realities; but instead, “new information” requires. that the: actual quantitative or qualitative extent ‘of the underlying issues were not considered and could not have been considered in the environmental analysis associated with the approval of the Existmg Development Approvals, this Agreement and the EIR. Section 2:13. Timing of Development. The Parties acknowledge that the most efficient and economic development of the Property depends upon numerous factors, such as market orentation and. demand, interest rates, competition, and similar factors, and that generally it will be most economically beneficial to have the rate of development determined by Owner. Because the California Supreme Court held in Pardee Construction Co. v. City of Camarillo (1984) 37 Cal.3d 465, that the failure. of the parties therein to provide for the timing of development permitted a later adopted initiative to restrict the timing of development to control the parties' agreement, it is the intent of Owner and the City to hereby acknowledge and provide for the right of Owner to develop the Project in such order and at ‘such rate and times as Owner deems appropriate within the exercise of its sole and subjective business judgment. The City acknowledges that such a right is consistent with the intent, purpose and understanding of the Parties to-this Agreement. Accordingly, the timing, sequencing, and phasing of the Development is solely the responsibility of Owner, and the City shall not impose; by ordinance, resolution, initiative or otherwise, any restrictions on such timing, sequencing or phasing of Development within the Property. Section 2.14 Public Works. Owner ‘is required by this Agreement. to construct certain public work facilities which will be dedicated to the City or other public agencies upon completion. Unless required by law to do so, Owner.shall not be required to perform work in the same.manner and subject to the sarne requirements as would be applicable.to the City or such other public agency should it have undertaken such construction, including, without limitation, the payment of prevailing wages pursuant to. Labor Code Section 1770 et. seq. Section 2.15 Owner Obligations. In consideration for the City entering into this Agreement, and as an inducement for the City to obligate itself to carry out. the covenants and coriditions set forth in this ‘Agreement, and in ordér to effectuate the premises, purposes and intentions set forth in this Agreement, Owner héreby agrees to the following : 2.15.1 Owner’s Obligations. Owner agrees: to complete ail mitigation measures in the EIR, including the Mitigation Monitoring Program: In particular, Owner agrees to do the following: m Owner agrees to complete improvements to the following intersections and/or pay the fair share costs (in the percentages noted) as valued at the time the improvements are made. The estimated. deadline for each improvement and the current estimated costs of each improvement are noted below: ® Calera Avenue & Alosta Avenue: Restriping, new/widened pavement, signal change. Estimated cost - $60,000. Fair share cost percentage - 100%. Estimated deadline.- When new entrance is built. ORANGE'SRCW20657. Citrus Avenue & Foothill Boulevard.. North left turn pocket. Estimated cost. - $35,000. Fair share. cost percentage - 100%. Estimated deadline - Issuance of building permit for first parking structure on either campus. Citrus Avenue & Alosta Avenue: Signal change. Estimated cost - $35,000. Fair share cost percentage - 100%. Estimated deadline - When Foothill Shopping Center is developed or a new traffic study is prepared. Citrus Avenue & Mauna Loa Avenue: New traffic signal. Estimated cost - $135,000. Fair share cost percentage - 42%. Estimated deadline - When Foothill Shopping Center is developed or a new traffic study is prepared. Citrus Avenue & Baseline Road: Restriping, new/widened pavement. Estimated cost - $60,000. Fair sharé cost percentage - 100%. Estimated deadline - When Foothill Shopping Center is developed or a new traffic study is prepared. Cerritos Avenue & Fe cothill Boulevard: Striping, restriping. Estimated cost - $25,000. Fair share.cost percentage - 100%. Estimated deadline - ‘When new interior road is constructed. Pasadena Avenue& Foothill Boulevard: Signal change. Estimated cost - $35,000. Fair share cost percentage - 100%.. Estimated deadline — When first dorm is built on West Campus. Azusa Avene & Foothill Boulevard: Striping, “No Parking” signs. Estimated cost - $15,000. Fair share cost percentage - 100%, Estimated deadline - When first dorm is built on West Campus. Azusa Avenue & I” Street: Signal change. Estimated cost - $35,000. Fair share cost percentage - 100%. Estimated deadline — When first dorm is built on West Campus. San Gabriel Avenue & Foothill Boulevard: Restriping, new/widened pavement. Estimated cost - $60,000. Fair share cost percentage - 37%. Estimated deadline — When first dorm is built-on West Campus. Owner agrees to retain the Azusa Foothill Drive-in-sign in its current location, provide up to $50,000 to renovate the sign, and maintain the exterior of the:sign during the term of this Agreement. " Owner agrees to follow. the City parking regulations-that are in effect.on the Effective Date of this Agreement to determine the required parking supply during the implementation of the Specific Plan. Each October, Owner will provide the City of Azusa’s Economic and Community Development Director with the official number of undergraduate and graduate students taking classes at its Azusa campuses, the current number of faculty members and staff members, and verification of the number: ORANGE\SRE\20657. and location of parking spaces on the Azusa campuses to accommodate the student enrollment, faculty, and staff. " Owner agrees to pay to the City of Azusa, beginning with the first utility billing cycle that ‘occurs on or after the Effective Date of this Agreement, a Fiscal Impact fee calculated as follows: re) an amount equal to six (6) percent of all charges invoiced by Azusa Light and Water for electricity and water for all such utilities provided to Owner via utility meters registered in the name of Owner for service to Owner’s properties. If on or after the Effective Date of this Agreement, City amends.a General Tax. as defined by Proposition 218 that existed as of the Efféctive Date or adopts a new Gerieral Tax making such taxes applicable to Owner the Fiscal Impact Fee set forth and required by this subsection shall be reduced by the same amount: as Owner remits to City as required by the. amended or new General Tax. Furthermore, should Owner cause new retail or commercial development to be constructed and should as a:direct result of such construction and operation City receives at least $25,000 or more in new General Taxés or sales taxes then the Fiscal Impact Fee set forth and required by this subsection shall be reduced by the same amount as City receives from these new operations. 2.15.2 Revised Proposal Concerning the Fiseal Impact Fee: Notwithstanding anything herein to the contrary, including the Term of this Agreement, Owner agrees to continue making the Fiscal Impact Fee payment to the City of Azusa for so long as the City’s existing Utility Users Tax (UUT) , as set forth in the City’s Municipal Code as of the Effective Date of this Agreement, remains in-effect, unless any of the following events occur: a) the City Council and its voters amend the UUT so as to require payment by all non-profits in the City; or: b) Owner requests that.a firm of recognized experts in fiscal impact analysis that is mutually agreeable to Owner and the City perform a fiscal impact ‘analysis of taxes, intergovernmental transfers, in- lieu payments, assessments, license fees and other. similar revenues generated by Owner and the result of said analysis demonstrates that such revenues received by ihe City exceeds the total sum of the Fiscal Impact. Fee payments made to the City in‘the City’s previous Fiscal Year (giving Owner ctedit. for the offsets: provided in section.2.15.1 above). The fiscal impact analysis contemplated by this subsection shall not:be. performed prior to one year before the expiration of the Agreement; however, the analysis may be performed within one year of the expiration of the Agreement and every five years thereafter. The expenses incurred in. completing the fiscal impact analysis shalt be shared equally by Owner and City; or c) Owner sells more than twenty-five percent. of the Property which is ‘subject to this Agreement to a for profit entity or individual for the purpose of commercial. development and the said purchaser agrees on its behalf and on behalf of its successors not to apply for a property tax exemption. This subsection regarding the Fiscal Impact Fee-shall continue in full force and effect past the termination of this Agreement. ORANGE\SRE 20657, 2.15.3 APU Scholarship to AUSD Graduates: ° Owner agrees to continue to award five (5) scholarships of five thousand dollars ($5,000) each year as described herein. Owner has in existence an Azusa Scholars Program that provides $5,000 scholarships for study at Azusa Pacific University to up to five graduates of Azusa Unified School District high schools each year. Scholarship. recipients must meet Owner’s eligibility requirements to receive the scholarships and Owner. will grant five new scholarships each year unless fewer than five eligible high school graduates apply and accept the scholarship. A recipient of an Azusa Scholars scholarship. will continue to receive the scholarship for four years of study at Azusa Pacific University provided that the recipient continues‘to meet the Azusa Scholars Program eligibility requirements. As a result, Owner may have as many:as 20 Azusa Scholarships outstanding during a given academic year. Owner agrees to continue the Azusa Scholars Program during the term of this Agreement. 2.15.4 Other Owner’s Obligations » Owner agrees to cooperate: in facilitating public art opportunities within the. City (e.g., painting murals on walls in downtown Azusa). City will determine locations for public art. opportunities. Owner will determine the extent to which it devotes its resources to the development of such public art opportunities. » Owner agrees to charge and theri remit to City a charge of fifty cents (SO¢) on each and every ticket sold for entry to the Azusa Pacific University Event Center or proposed performing arts facility, provided, however, that such obligation to ‘charge and remit such ticket charges shall not. apply to (1) Owner’s regular season sporting events, (2) events featuring APU. faculty and/or students, including drama and musical performances; (3) meals, (4) events held by non-profit charitable organizations which use Owner’s event facilities free of charge and donate all proceeds to a charitable organization, and (4) events held by the City of Azusa. Section 2.16 Obligations and Rights of Mortgage Lenders. 2.16.1 Encumbrance of Owner's Interest. Qwner shall have.the right to encumber and/or collaterally assign or grant a security interest in Owner's right, title and interest in, to and. under this Agreement and the Property. pursuant to one or more mortgages, deeds of trust, or other security atrangement with respect to the Property or any portion thereof (each a "Mortgage"), provided that each such Mortgage is given for the purpose of securing finds to be used. for financing the acquisition of the Property or any portion thereof, the. construction of the Project thereon, and any other expenditures reasonably necessary and appropriate to develop the Project in accordance with this Agreement. 2.16.2 Obligations and Rights. The older of any Mortgage (a "Mortgagee") shall not be obligated under this Agreement to construct or con plete improvements or to guarantee.such construction or completion, but shall otherwise be bound by all of the terms and. conditions of this Agreement which pertain. to the Property or such portion thereof. in which it holds an interest. Any Mortgagee who comes into possession of the Property, or any portion thereof, pursuant to-a foreclosure of a Mortgage ot deed in lieu of such foreclosure, shall take the Property, or such portion thereof, subject to any pro rata claims. for payments or charges against the Property, or such portion thereof, which accrue. prior to the time such Mortgagee comes into possession. Nothing in this Agreement shall be deemed or construed to permit or authorize any Mortgagee to devote the. Property, or any portion thereof, to any uses, or to. construct any improvements ORANGE\SRCW20657. thereon, other than.those uses.and improvements provided for or authorized by this Agreement, subject to all of the terms and conditions of this Agreement. Section 2.17 City Cooperation in Providing Notices to Community. Owner may from time to time, request that City-include notice and: promotion materials prepared by Owner within City’s mailings to residents by the City and Azusa Light and Water. City agrees to cooperate with Owner in including Owner’s notices and promotional materials in those instances. where such materials seek to promote Owner programs and events which arejointly sponsored by at least Owner and City. ARTICLE 3 Entitlement and Permit Processing, Inspections Section 3.1 City Approvals. The City is bound to permit the uses on the Property that are permitted by the Specific Plan and the Applicable Rules. The City agrees to grant and implement the land use and building approvals, including, but not limited to, building plans and permits, specifications, landscape plans, grading plans and permits, use permits and Certificates of Occupancy reasonably necessary or desirable to accomplish the goals, ‘objectives, policies and plans described in the Specific Plan (collectively “City Approvals”). City Approvals shall include any applications, permits and approvals required to complete the infrastructure and improvemenis necessary to develop the Property m accordance with the. Specific Plan (collectively, the “Improvements”, including, without limitation, those related to (i) clearing the Property, (ii) grading the Property, (ii) construction of roads, storm drainage facilities, sewer facilities, and other utility facilities and connections, and (iv) constniction of ail institutional and residential structures and all structures and facilities accessory thereto, subject. to the limitations set forth in the Specific Plan and Applicable Rules. Section 3.2 Duty to Grant and Implement. The City’s obligation to grant and implement the City Approvals set forth above shai] not infringe upon the City’s right to withhold such City Approvals for failure to conform. to the Specific Plan or Applicable Rules. If the City rejects an application for a City Approval, it shall. provide, in. good faith, a specific list of reasons why the application was rejected, along with a description of specific and reasonable. measures (“Measures to Correct") to correct each basis for rejection. Such Measure to Correct shall take into account the. economic ability of Owner to implement such Measures to Correct. If Owner resubmits its application incorporating all the Measures to Cortect, the City shall approve ‘Owner’s application. If Owner deems the City’s. Measures to Correct to be unreasonable or submiited in bad faith, it may submit such Measures to Correct to ‘binding arbitration pursuant to Articlé 5. below, and such arbitrators shall have authority to delete any unreasonable or bad faith Measures to Correct from the list. Section 3.3 Processing Obligations. The City hereby agrees that it will accept from thie Owner for processing and review all applications for Subsequent Development Approvals, provided that said applications are submitted in accordance with the Applicable Rules. To the fullest extent allowed by law, the-City shall process ail applications filed in connection with the Development of ORANGEISRC120657. the Project as’ expeditiously as possible and. shall complete at the. earliest, possible time all steps necessary for the implementation. of this Agreement and the D evelopment of the Project, including, but not limited to, the following: 3.3.1 The processing of applications for and the issuance of ali Development Approvals requiring the exercise of judgment -and deliberation by the City, including without limitation, the Subsequent Development Approvals, 3.3.2. The retention, upon the Owner’s request, of outside-plan check consultants to assist in processing of applications and. plans (including infrastructure and storm drain plans), at the Owner’s cost;. 3.3.3 The holding of any required public hearings; 3.3.4 The processing of applications for and the issuance of al] ministerial approvals requiring the determination of conformance with the Applicable Rules, including, without limitation, conformarice maps for tentative tract maps, determinations of compliance with the conditions of approval of the Development Approvals, site plans, prading plans, improvement plans, building plans and specifications, and ministerial issuance. of one or more final maps, zoning clearances, grading permits, improvement permits, wall permits, building permits, lot line adjustments, encroachment permits; temporary use permits, , certificates of use and occupancy and approvals and entitlements and related matters as necessary for the completion of the Development of the Property within thirty (30) days after application is made therefore or the City shall deliver written notice within said thirty (30)-day period specifically identifying why the requested ministerial approval is not consistent with this Agreement; 3.3.5, The convening of regular progress meetings; with City and Owner, as needed to coordinate the preparation and review of drawings, plans and related documents and informal consultation between City staff and Owner as frequently as is necessary to ensure that the formal submittal of any documents to the City can receive prompt and speedy attention, 3.3.6 City assumption of responsibility for the processing of all infrastructure and flood control plans and shall nof utilize Los Angeles County personnel for any such processing; 3.3.7 City processing and approval of all building permit applications within forty-five days of submission by Owner of completed plans and City itiforming Owner, upon Owner's request, of the necessary submission requirements for each application fora building permit or other entitlement for use in advance and review of said application and scheduling the application for review by the appropriate authority within the times set forth in this Article, and 3.3.8 City performance of all required inspections called for by Owner ‘within: two (2) working days following the request for inspection by Owner. Section 3.4 No. Revocation; Disapprovals. No plan, permit, approval or Subsequent Development Approval for the Development of the Project or the Property shall bé revoked or subsequently disapproved once issued by the City, provided that the Development of the Project or ORANGE'SRCW20657. the Property is consistent with such approval and provided: that issuance of the original.approval was not obtained by fraud or deceit by the Owner. Any disapproval by the City shali state in writing the reasons for such disapproval and the suggested actions to be taken in order for approval to be granted, Section 3.5 State, Federal or Casé Law. Where any state, federal or case law allows.the.City to éxercise any discretion or to take any action with respect to that law, the City shall, in an expeditious and timely manner, at the earliest possible time, (i) exercise its discretion in such a way as to be consistent with, and carty out the terms. of, this Agreement and (ii) take such other actions as may. be necessary to carry out in good faith the terms of this Agreement. Section 3.6 Processing Cooperation. To the extent permitted by law, the City shall cooperate with and actively assist Owner in. securing any and all entitlements, authorizations, permits or approvals which may be required by or from any other governmental or quasi-governmental entity in connection with the Development of the Projéct and. the Property. ARTICLE 4 Default Section 4.1 General Provisions. Subject to extensions of time by mutual consent in writing, failure or delay by either Party or Owner Transferee not released from this Agreement to perform any term or provision of this Agreement shall constitute a default. In the event of alleged defauit or breach of any terms or conditions of this Agreement, the Party alieging such default or breach shall give the other Patty or Owner Transferee not less than thirty days notice in‘writing specifying the nature of the alleged default and the manner in which said default may be cured. During any such thirty day period, the Party or Owner Transferee charged. shall not be considered in default for purposes of termination or institution of legal ‘proceedings. After notice and. expiration of the thirty day period, if such default has not been cured or is.not being diligently cured in the:manner set forth inthe notice, the other Party or Owner Transferee to this Agreement. may, at its option, institute legal proceedings pursuant to this Agreement or give notice of its intent to terminate this Agreement pursuant to California Goverment Code Section 65868 and any re gulations of the City implementing said Government Code.Section. Following notice of intent to terminate, the matter shall be scheduled for consideration and review in the manner ‘set forth in Government Code Sections 65365, 65867, and 65868 and City regulations implementing said sections by the City within thirty calendar days. Following consideration of the evidence presented in said review before the City, either Party: alleging the default by the other Party or Owner Transferee may give written notice.of termination of this Agreement to the other Party; provided, however, an Owner Transferee may only give such notice with respect to such portion of the Property in which such Owner Transferee owns an interest. Evidence of default may also arise in the course of a regularly scheduled Annual Review of this Agreeinent pursuant to Government Code Section 65865. Ifa Party or Owner Transferee determines that a Party or Owner Transferee is in default following the completion of the normally scheduled periodic review, said Party or Owner. Transferee may give written notice of termination of this Agreement specifying in said notice the alleged nature of the default, and potential actions to cure said default where appropriate. If the. ORANGE\SRC\20657. _.alleged default is not cured in thirty days or within such longer period specified im the notice, or the defaultinig Party. or Owner Transferee waives its right to cure such alleged default, this Agreement may be terminated by the City as to Owner or Owner Transferee and the Property or portion thereof in which Owner or the Owner Transferee owns-an interest. Section 4.2. Default by Developer/Withholding of Building Permit. The City may, at its discretion, refuse to issue a building permit for any. structure within the geographical confines of the Property as the same is defined at the time.of said application, if Owner or Owner Transferee has failed and refuses to complete any requirement enumerated therefore in accordance with the terms of this Agreement. No building permit shall be issued or building permit application accepted for the building shell. of any structure on the Property if the permit applicant owns or controls any property subject to this Agreement, and if such applicant or any entity or person controlling such applicant is in default of the terms and conditions of this Agreement as determined pursuant to Section 4.1. Section 4.3. Developer Default Limited to Property/Entity; Several Obligations of Owners. Notwithstanding anything to the contrary herein contained, no default hereunder in performance of a covenant or obligation with respect to a particular portion of the Property shall constitute a default. applicable to any other portion of the Property, and any remedy arising by reason of such default shali. be: applicable solely to the portion of Property where the default has occurred. Similarly, the obligations of Owner and Owner Transferee shall be several, and no default hereunder in performance of a covenant or obligation by any one of them shall constitute a default applicable to any other Owner who is not affiliated with such defaulting Owner, and any remedy arising by reason of such. defauit shall be solely applicable to the defaulting Owner and the.portion of the Property owned thereby. Section 4.4 Default by City. In the event that the City does not accept, review, approve or issue necessary development permits or entitlements. for use in a timely fashion as defined by this Agreement, or as otherwise agreed to by the Parties, or the City otherwise. defaults under the terms of this Agreement, the City agrees that Owner or an Owner Transferee shall not be obligated. to procéed with or complete. the Project or any phases thereof, nor shall resulting delays in Owner's performance constitute grounds for termination or cancellation of this Agreement. Section 4.5 Cumulative Remedies of Parties, In addition to any other rights or remedies, the City; Owner and any Owner Transferee: may institute legal or equitable proceedings to cure, correct or remedy any default, to specifically enforce any covenant or agreement herein (including, without limitation, the timely processing and approval of any City Approvals), to enjom any threatened or attempted violation of the provisions of this Agreement or to seek damages from any éther Party as a result.of any breach or alleged breach of‘such Party’s obli gations hereunder. Section 4.6 Enforced Delay, Extension of Times of Performance. In addition to specific provisions of this Agreement, performance by either Party or Owner Transferee hereunder shall not be deemed to. be in default where delays or defaults are due to war, insurrections, strikes, walkouts, riots, floods, earthquakes, fires, casualties, acts of God, governinental réstrictions imposed or mandated by governmental entities. other than the City, enactment of conflicting state or federal laws or regulations, new or supplementary environmental regulation enacted by the state or federal government, or litigation. An extension of time for such cause shall be granted ‘in ‘writing by the City for the period of the enforced delay or longer, as may be mutually agreed upon. ORANGE\SRCOW0657. ARTICLE 5 Arbitration of Disputes Any controversy arising out of this Agreement or its breach, which is not resolved by the parties within thirty days of written notice from one party to the other of such alleged controversy or breach, shall be submitted to binding arbitration in the City of Los. Angeles, Los Angeles County, California (or such other location that ‘may be agreed to by the Parttes), in accordance with California Code of Civil Procedure Sections 12380-1294.2. Such arbitration shall be conducted bya single arbitrator, unless the Parties agree to a greater number. All notices relating to such arbitration, including any notices under Code of Civil Procedure 1290.4, shall be given as provided in Section 1.10 hereof. NOTICE: BY INITIALING IN THE:SPACE BELOW YOU ARE AGREEING TO HAVE ANY DISPUTE ARISING OUT OF THE MATTERS INCLUDED IN THE ARBITRATION OF DISPUTES’ PROVISION DECIDED BY NEUTRAL ARBITRATION AS PROVIDED BY CALIFORNIA LAW AND YOU ARE GIVING UP ANY RIGHTS YOU MIGHT POSSESS TO HAVE THE DISPUTE LITIGATED IN A COURT OR JURY TRIAL. BY INITIALING IN THE SPACE BELOW YOU ARE GIVING UP YOUR JUDICIAL RIGHTS TO DISCOVERY AND APPEAL, UNLESS THOSE RIGHTS ARE SPECIFICALLY INCLUDED IN THE ‘ARBITRATION OF DISPUTES’ PROVISION. IF YOU REFUSE TO SUBMIT TO ARBITRATION AFTER AGREEING TO THIS PROVISION, YOU. MAY BE COMPELLED TO ARBITRATE UNDER THE AUTHORITY OF THE CALIFORNIA CODE OF CIVIL PROCEDURE. YOUR AGREEMENT TO THIS ARBITRATION PROVISION IS VOLUNTARY. WE HAVE READ AND UNDERSTAND THE FOREGOING AND AGREE TO SUBMIT DISPUTES ARISING OUT OF THE MATTERS INCLUDED IN THE ‘ARBITRATION OF DISPUTES’ PROVISION TO NEUTRAL ARBITRATION. City’s Initials Owner’s Initials ARTICLE 6 Termination Section 6.1 Termination Upon Completion of Development. This Agreement shall terminate upon the. expiration of the Term or when the Property has been fully developed and all of Owner’s obligations in connection therewith are satisfied as determined by the City. Upon termination of this Agreement, the City shall record a notice of such termination in a form satisfactory to the City Attommey that. the Agreement has been terminated. Section 6.2 Effects Upon Termination on Developer Obligations. Termination of this Agreement shall not‘affect any of Owner’s obligations to comply with the City's General Plan, the Specific. Plan, and the terms and conditions of any applicable zoning, or other land use entitlements approved with respect to the Property, nor shall it affect any other covenants of any other development specified in this. Agreement to cofitinue after the termination of this Agreement. ORANGE\SRC\20657. Section 6.3 Effects Upon Termination on City. Upon any termination of this Agreement, the entitlements, conditions of development, limitations on fees and all other terms and conditions of this Agreement shall no longer be vested hereby with respect to the Property affected by such termination (provided vesting of such entitlements, conditions or fees may then be established for such property pursuant to then existing planning and zoning law), and the City shall no longer be limited, by this Agreement, to make any changes or modifications to such entitlements, conditions or fees applicable to such property. [SIGNATURES ON NEXT PAGE] IN WITNESS WHEREOF, this Agreement was executed by the parties thereto on the dates set forth below. CITY OF AZUSA, a political subdivision of AZUSA,“ PACIFIC UNIVERSITY, a the State of California California nof = corporation A ~ ’ By: | | Urns LUN. nan ‘ Mayor, City of Azusa ) ATTEST? ° ‘a ee a - wie r OD GME City Clerk Le APPROVED AS TO FORM: Lom R. Coury City Attorney ORANGE\SRC\20657. Legal Description of the Property “ Azusa Pacific University Legal Address: East Campus 901 B. Alosta Ave. University Park 1000 E. Alosta Ave. Bowles 1150/1160/1170 E..Alosta Ave. ‘West Campus 701 E. Foothill Blvd. Drive-in 675 E. Foothill Blvd: Admin. West. 568 E. Foothill Blvd. Azusa Square 635 E. Foothill Blvd, Map, Page, Parcel 8628-002-008 8628-002-007 8628-003-009 8628-003-015 8628-004-024 8628-004-040 8625-004-006 8608-030-013 868-030-014 862-001-001 8612-003-044 8608-030-078 Legal Attachment A LEGAL DESCRIPTION THE LAND REFERRED TO HEREIN IS SITUATED IN THE STATE OF CALIFORNIA, COUNTY OF LOS ANGELES, DESCRIBED AS FOLLOWS: + PARCEL 1: THAT PORTION OF LOT 10 OF TRACT NO. 3472, IN. THE CITY OF AZUSA, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 42 PAGES 11 AND 12 OF MAPS, IN JHE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY DESCRIBED AS FOLLOWS : BEGINNING AT THE SOUTHWEST CORNER OF SAID LOT 10; THENCE NORTH g9* §5° EAST ALONG THE SOUTH LINE THEREOF, 645.48 FEET TO THE MOST SOUTHERLY SOUTHEAST CORNER OF SAID LOT 10; THENCE NORTH Oo 15’ EAST, ALONG THE MOST SOUTHERLY EAST LINE OF SAID LOT 10, 808.50 FEET TO AN ANGLE POINT IN THE BOUNDARY LINE OF SAID LOT 10; THENCE SOUTH 89° 55‘ WEST PARALLEL WITH THE AFOREMENTIONED SOUTH LINE OF SAID LOT 10, 645.48 FEET TO THE MOST WESTERLY LINE OF SAID LOT 10, THENCE SOUTH 0° 15° WEST, ALONG SAID MOST WESTERLY LINE, 808.50 FEET. TO THE POINT OF BEGINNING. PARCEL 2: THAT PORTION OF THE NORTHWEST QUARTER OF SECTION 36, TOWNSHIP 2 NORTH, RANGE 10 WEST, S. B. B. & Mer ACCORDING TO THE OFFICIAL PLAT OF THE SURVEY OF SAID LAND ON FILE IN THE BUREAU OF LAND MANAGEMENT, SHOWN AS "NOT A PART OF THIS SUBDIVISION" ON THE MAP OF TRACT 3472, RECORDED IN BOOK 42 PAGE 11 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER. PARCEL 2A: AN EASEMENT FOR INGRESS AND EGRESS TO AND FROM SAID PARCEL 2, OVER THAT PORTION OF LOT 10 OF TRACT NO. 3472, IN THE COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK WHOLE AS FOLLOWS: COMMENCING AT THE SOUTHWEST CORNER OF THE NORTHWEST QUARTER OF SAID SECTION 36; THENCE ALONG THE WESTERLY LINE OF SAID SECTION 36, NORTH 0° 15° EAST 825.00 FEET; THENCE NORTH 89° 55’ EAST 40.00 FEET TO A POINT IN THE NORTHERLY LINE OF THE LAND DESCRIBED IN THE DEED TO AZUSA. COLLEGE RECORDED ON DECEMBER 24, 1959, AS INSTRUMENT Wo. 2830 IN BOOK D-703 PAGE 175 OF OFFICIAL Continued on next page -2-° . RECORDS OF SAID COUNTY, SAID .POINT BEING IN THE EASTERLY LINE OF THE MOST WESTERLY 23.50 FEET OF SAID LOT 10; THENCE ALONG: SATD EASTERLY LINE SOUTH 9° 15’ WEST 5.50 FEET TO THE TRUE POINT OF BEGINNING; THENCE NORTH B9° 54’ EAST 894.10 FEET; ____.._-_-P HENCE _SOUTH-02-15..-WEST..2500..PEBT; THENCE. SQUTH 8$° 54' WEST 894.10 FEET TO SAID EASTERLY LINE; THENCE ALONG SAID EASTERLY LINE, NORTH 0° 15‘ EAST 25,00 FEET TO THE TRUE POINT OF BEGINNING . PARCEL 3: LOT 11 OF TRACT NO.. 3472, IN THE COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 42, PAGE(S) 11 AND _ 12 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. EXCEPT THEREFROM THAT PORTION OF SAID LOT LYING NORTHERLY OF A LINE WHICH IS PARALLEL WITH AND DISTANT NORTHERLY 450 FRET (MEASURED AT RIGHT ANGLES) FROM THE CENTERLINE OF ALOSTA AVENUE (33 FEET WIDE) AS SHOWN ON THE MAP OF SAID TRACT NO. 3472. EXCEPT THEREFROM THE. INTEREST CONVEYED TO THE STATE OF CALIFORNIA BY DEED RECORDED JANUARY 24, 1930 AS INSTRUMENT NO. 768 IN BOOK 9744 PAGE 10, OFFICIAL RECORDS OF SAID COUNTY. PARCEL 4: THOSE PORTIONS OF LOTS 9 AND 10 OF TRACT NO. 3472, IN THE COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IW BOOK 42 PAGES 11 AND 12 OF. MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SRID COUNTY RECORDER OF SAID COUNTY, DESCRIBED AS A WHOLE AS FOLLOWS: BEGINNING AT THE MOST NORTHERLY SOUTHEAS® CORNER OF SAID LOT DESCRIBED AS THE SECOND PORTION OF PARCEL 442 OF THE FINAL ORDER OF CONDEMNATION ENTERED IN LOS ANGELES COUNTY SUPERIOR ON OCTOBER 23, 1953 AS INSTRUMENT NO. 3765 IN BOOK D 2230 PAGE 2195 OF SATD OFFICIAL RECORDS; THENCE ALONG THE EASTERLY LINE OF SAID PARCEL 442, NORTH 0° OF! 15" EAST 5.00 FEET TO THE SOUTHEASTERLY LINE OF THE THIRDLY DESCRIBED PORTION OF PARCEL . Continued on next page - z= WO. 250 AS DESCRIBED IN: SAID CONDEMNATION; THENCE NORTH 58° 37° is" BAST ALONG SAID SOUTHEASTERLY LINE TO. THE SOUTHERLY LINE OF THAT CERTAIN 5:00 FOOT STRIP AS DESCRIBED IN THE SECOND PART OF SAID PARCEL 250; THENCE EASTERLY AND NORTHERLY FOLLOWING ALONG ___.-._—- 7 FE -SOUTHERSY--AND-EASTERLY-LINES OF SATD_54...00. FOOT STRIP TO THE SOUTHERLY LINE OF THE 50 FOOT STRIP AS DESCRIBED IN THE FIRST PART OF SAID PARCEL 250; THENCE EASTERLY ALONG THE SOUTHERLY . LINE OF SAID 50 FOOT STRIP TO THE SOUTHERLY ALONG THE SOUTHERLY LINE OF SAID 50 FOOT STRIP TO THE SOUTHERLY LINE OF THE LAND DESCRIBED IN THE DEED TO THE LOS ANGELES COUNTY FLOOD CONTROL DISTRICT, RECORDED MARCH 1, 1933 IN BOOK 11961 PAGE 374 OF SAID OFFICIAL RECORDS; THENCE EASTERLY ALONG SAID LAST MENTIONED PARCEL 5: THOSE PORTIONS OF LOTS 9 AND 10 OF TRACT NO. 3472, IN THE COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER. MAP RECORDED IN BOOK 42, PAGES 11 AND 12 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY LYING NORTHERLY OF THE FOLLOWING DESCRIBED LINE: BEGINNING AT A POINT IN THE WESTERLY BOUNDARY OF SAID LOT 9, SAID POINT OF BEGINNING BEING THE SOUTHWEST CORNER OF THE LAND DESCRIBED AS. THE SECOND PORTION OF PARCEL 442 OF THE FINAL ORDER OF CONDEMNATION ENTERED IN LOS ANGELES COUNTY SUPERIOR COURT, CASE NO. 743427, A CERTIFIED COPY OF WHICH WAS RECORDED OCTOBER 23, 1963 AS INSTRUMENT NO. 3765 IN BOOK D-2230 PAGE 195 OF SAID OFFICIAL RECORDS; THENCE ALONG THE SOUTHERLY LINE OF SECOND PORTION OF LAND, SOUTH 89° 52’ 45! EAST, 15.00 FEET TO THE SOUTHEAST CORNER OF SAID SECOND PORTION OF LAND; THENCE ALONG THE EASTERLY LINE OF SAID SECOND PORTION OF LAND, NORTH SOUTHEASTERLY LINE TO THE SOUTHERLY LINE. OF THAT CERTAIN 5,00 FOOT STRIP AS DESCRIBED IN THE SECOND PART OF SAID PARCEL 250; Continued on next page EXCEPT THEREFROM THAT PORTION THEREOF DESCRIBED IN PARCEL 14-3 OF THE DEED TO THE COUNTY OF LOS ANGELES, RECORDED NOVEMBER 17, 1961 AS INSTRUMENT NO. 4387, IN BOOK D-142¢ PAGE 533 OFFICIAL RECORDS OF SAID COUNTY. ALSO EXCEPT THEREFROM THOSE PORTIONS THEREOF DESCRIBED. IN PARCEL NO. 442 OF THE FINAL ORDER. OF CONDEMNATION RECORDED OCTOBER 23, 1963 AS INSTRUMENT-NO. 3765 IN BOOK D-2230 PAGE 195 OF SAID OFFICIAL RECORDS. END OF LEGAL DESCRIPTION Continued on next page ATTACHMENT © Dw te , : : O_o . és: PARCEL: THAT PORTION OF THE WEST HALF OF THE NORTH 30 ACRES OF THE NORTHEAST QUARTER OF THE SOUTHWEST QUARTER OF SECTION 36 TOANGHIP 12 NORTH RANGE 10 WEST, SAN BERNARDINO MERIDIAN, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT THEREOF DESCRIBED AS FOLLOWS : OF SAID WEST HALF WITH THE FASTERLY LINE OF CALERA AVENUE, AS DESCRIBED IN THE. LINE OF THE 1 FOOT WIDE STRIP OF LAND DESCRIBED IN THE DEED TO THE CITY OF AZUSA RECORDED ON SEPTEMBER 17, 1963, AS INSTRUMENT NO. 4034, IN BOOK D-2185 PAGE 210 OF SAID WESTERLY ALONG SAID LONB TO SAID EASTERLY LINE OF CALERA AVENUE, AS DESCRIBED IN SATD FIRST MENTIONED DEED; THENCE NORTHERLY ALONG SATD CALERA AVENUE TO THE POINT OF ‘BEGINNING. PARCEL 2: OF THE WEST HALF OF THE NORTH 30 ACRES OF THE NORTHEAST. QUARTER OF THE SOUTHWEST QUARTER OF SECTION 36 TOWNSHIP 1.NORTH, RANGE 10 WEST SAN BERNARDINO MERIDIAN IN THE CITY OF AQUSA, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT THEREOF, DESCRIBED AS FOLLOWS: LEGAL DESCRIPTION (CONT'D) Np ae eee een ee me one OF 1 FOOT WIDE STRIP OF LAND DESCRIBED IN THE DEED TD THE Cluny oe AZUSA, RPOORDED ON SEPTEMBER 17, 1963 AS INSTRUMENT NO, 4034, IN BOOK D-2565 PAGE 210 OF SAID OFFICIAL RBOORDS; THENCE WESTERLY ALONG SAID NOKTHERLY 10NE TO A LIE SAPALIEL WITH SAID WESTERLY LINE OF WEST HALF WHICH PASSES THROUGH PHS POINT OF BEGINNING THENCE NORTHERLY ALONG SAID LAST MENTIONED PARALLEL LINE 10 THE. POINT OF BEGINNING D R A F T ORANGE\SKLEINBERG\52650.3 SECOND AMENDMENT TO DEVELOPMENT AGREEMENT By and between THE CITY OF AZUSA, A California municipal corporation And AZUSA PACIFIC UNIVERSITY A California nonprofit corporation This Second Amendment to Development Agreement (“Amendment”) is entered into as of ____________ 2025, with respect to that certain Development Agreement dated September 19, 2005 (“Development Agreement”), between the City of Azusa, a political subdivision of the State of California (“City”) and Azusa Pacific University, a California nonprofit corporation (“Owner”), pursuant to the authority granted in Section 1.4 of the Development Agreement with reference to the following facts: RECITALS A. In 2005 the City of Azusa (“City”) and Azusa Pacific University (“Owner”) entered into a Development Agreement dated September 19, 2005 (“Development Agreement”) that was based on APU’s then-20-year strategic plan, which projected anticipated student growth and facility needs; and B. In light of new leadership and the launch of a new strategic plan process, Azusa Pacific University (APU) is requesting to extend the term of the current Development Agreement (DA) to allow adequate time for thoughtful, collaborative, and comprehensive long-range planning; and C. This extension will enable APU to maintain momentum on existing, approved projects under the current Specific Plan, while also developing a new vision for the future in partnership with the City and other key stakeholders; and D. Per Section 1.4 (Term of Agreement), the current Development Agreement remains in effect for 20 years from the effective date (September 19, 2005), expiring on September 19, 2025—unless extended or terminated. At the written request of the owner, a request to extended the term of the Development Agreement has been made; and E. Additionally, City and Owner would like to amend the Development Agreement to extend the Term by an additional Five-Years, and setting a new expiration date of September 19, 2030. D R A F T ORANGE\SKLEINBERG\52650.3 F. Owner and City now desire to amend the Development Agreement, as more particularly set forth herein: THEREFORE, pursuant to the authority contained in the Development Agreement, and in consideration of the mutual promises and covenants contained in this Amendment, City and Owner agree as follows: 1. Section 1.4 of the Development Agreement shall be and is hereby amended to add an additional Five-Year Period: “Section 1.4 Term of Agreement. This Agreement shall commence upon the Effective Date and shall continue in force for a period of twenty-five (25) years, unless extended or terminated as provided herein. At the Owner’s-written request, the City Council may consider an extension of the term of this Agreement. Following the expiration of the Term or extension thereof, or if sooner terminated, this Agreement shall have no force- and effect, subject, however, to post-termination obligations of Owner or the City as described herein, including, but not limited to payment of the Fiscal Impact Fee set forth below.” 2. All defined terms used in this Amendment shall have the same meanings set forth in the Original Development Agreement. Except as specifically modified by this Amendment, the Development Agreement shall remain in full force and effect. The parties have executed this Amendment as of the date written above. CITY OF AZUSA By: ________________________ _______________________ Robert Gonzales Dated Mayor By: ________________________ _______________________ Sergio Gonzalez Dated City Manager APPROVED AS TO FORM: ___________________________ Marco Martinez City Attorney AZUSA PACIFIC UNIVERSITY D R A F T ORANGE\SKLEINBERG\52650.3 By: ________________________ _______________________ Dated Its: ________________________ APPROVED AS TO FORM: ___________________________ APU General Counsel 1 ORDINANCE NO. 2025-03 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA APPROVING AND ADOPTING AN AMENDMENT TO THE DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF AZUSA AND AZUSA PACIFIC UNIVERSITY WHEREAS, the City of Azusa (“City”) and Azusa Pacific University (“Owner”) entered into that certain Development Agreement dated September 19, 2005 (“Development Agreement”); and WHEREAS, the Development Agreement describes the real property owned by the Owner; and WHEREAS, in 2007, Owner purchased 14.24 acres of real property located within the City including the Crestview Apartment complex for the purpose of adding student housing; and WHEREAS, Owner conducted the first amendment to the Development Agreement to reflect changes to the description of real property currently owned by Owner located within the City as set forth in the Development Agreement; and WHEREAS, when the Specific Plan was adopted in 2005, it was based on APU’s then- 20-year strategic plan, which projected anticipated student growth and facility needs. As the end of that horizon approaches, APU is evaluating future needs and developing a new strategic plan; and WHEREAS, in light of new leadership and the launch of a new strategic plan, Azusa Pacific University (APU) is requesting to extend the term of the current Development Agreement (DA) to allow adequate time for thoughtful, collaborative, and comprehensive long-range planning; and WHEREAS, This extension will enable APU to maintain momentum on existing, approved projects under the current Specific Plan, while also developing a new vision for the future in partnership with the City and other key stakeholders; and WHEREAS, the City Council reviewed and studied the amendments to the Development Agreement and found it to comply with the California Environmental Quality Act (“CEQA”) as more fully described below; and WHEREAS, the City and Owner believe that the acquisition and operation of the additional property described above and in accordance with the amendments is in the best interests of the City and the health, safety, morals and welfare of its taxpayers and residents and is in accordance with the public purposes set forth in federal, state and local law and regulations. 2 THE CITY COUNCIL OF THE CITY OF AZUSA DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Pursuant to California Government Code Section 65868 the City Council hereby approves the amendments to the Development Agreement as set forth in Exhibit “C” attached hereto, entitled “Second Amendment to Development Agreement” (“Second Amendment”). SECTION 2. Pursuant to California Government Code Section 65867.5 and based on the entire record before the City Council and all written and oral evidence presented to the City Council, the City Council hereby makes and adopts the following finding: A. That the Second Amendment is consistent with the City’s General Plan and the Specific Plan as set forth in the Development Agreement, as amended, because the Second Amendment will allow the Owner to preserve the previously agreed Development Agreement in a manner which the City Council previously found to be consistent with the City’s General Plan and said Specific Plan. SECTION 3. The City Council hereby finds and determines that adoption of this Ordinance is in compliance with the California Environmental Quality Act (“CEQA”) since the request to extend the term of the Development Agreement is in compliance with the California Environmental Quality Act (CEQA). Under CEQA Guidelines Section 15164, an addendum to a previously certified Environmental Impact Report (EIR) is appropriate when minor changes or additions are necessary, but no substantial changes have occurred that would require preparation of a subsequent EIR. In this case, Impact Sciences conducted a comprehensive analysis and determined that the proposed term extension of the Development Agreement would not result in any new or increased environmental impacts beyond those previously analyzed in the certified APU Specific Plan EIR. Furthermore, none of the conditions outlined in CEQA Guidelines Section 15162—which trigger the need for a subsequent or supplemental EIR—are present. Last, the amendment does not propose or entitle any specific new development. All permitted projects remain consistent with those evaluated under the adopted Specific Plan, and no intensification of impacts would occur. Moreover, as noted above, the Specific Plan explicitly anticipates that development activities could occur over a period of 15 to 20 years or more, providing flexibility for a longer buildout period SECTION 4. Pursuant to California Government Code Section 65868.6, within ten (10) days following the execution of the Second Amendment, the City Clerk shall record with the Los Angeles County Recorder a copy of the Second Amendment. SECTION 5. This Ordinance shall be in full force and effect thirty (30) days after its passage. SECTION 6. If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this Ordinance, or any part thereof is for any reason held to be unconstitutional, invalid or ineffective by any court of competent jurisdiction, such decision shall not effect the validity or effectiveness of the remaining portions of this Ordinance or any part thereof. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, 3 sentence, clause or phrase of this Ordinance irrespective of the fact that one or more sections, subsections, subdivision, paragraphs, sentences, clauses or phrases be declared unconstitutional, invalid or ineffective. To this end the provisions of this Ordinance are declared to be severable. SECTION 7. A summary of this Ordinance shall be published in the manner required by law. PASSED, APPROVED and ADOPTED this 2nd day of June 2025. __________________________________ Robert Gonzales Mayor ATTEST: __________________________________ Jeffrey Lawrence Cornejo, Jr. City Clerk 4 STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF AZUSA ) I HEREBY CERTIFY that the foregoing Ordinance No.2025-03 was duly introduced and placed upon its first reading at a regular meeting of the City Council of the City of Azusa held on the 2nd day of June 2025, and that, thereafter, said ordinance was duly adopted and passed at a regular meeting on the day of 2025, by the following vote of the Council: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: __________________________________ Jeffrey Lawrence Cornejo, Jr. City Clerk APPROVED AS TO FORM: __________________________________ Best, Best & Krieger, LLP City Attorney 5 Exhibit “A” First Amendment to Development Agreement [Attached behind this page] Exhibit E – Narrative by Applicant Development Agreement Extension—Azusa Pacific University Supplemental Information In light of new leadership and the launch of a new strategic plan, Azusa Pacific University (APU) is requesting an extension of the current Development Agreement (DA) to allow adequate time for thoughtful, collaborative, and comprehensive long-range planning. This extension will enable APU to maintain momentum on existing, approved projects under the current Specific Plan, while also developing a new vision for the future in partnership with the City and other key stakeholders. Several significant initiatives are currently underway that support the need for this extension: ● New Master Plan and Specific Plan Development: APU has engaged Gensler, a leading architectural and planning firm, to assist in creating a new Campus Master Plan. The university is currently in the foundational data "gathering" phase of this process. Extending the DA will provide the necessary time to develop this new plan thoughtfully and collaboratively, including alignment with the City of Azusa and the negotiation of a new Development Agreement once the new plan is finalized. ● Comprehensive Campaign. The University recently launched a comprehensive campaign aimed at enhancing the student experience, particularly on East Campus. Key priorities include creating new green space and improving amenities that will make APU more attractive to current and prospective students. These improvements are being coordinated alongside the new master plan, and the extension ensures that APU can make incremental progress without needing to rush long-term planning efforts. ● Shifting Higher Education Landscape. The broader context of higher education has impacted APU: ○ Changing Demographics: The national decline in birth rates has impacted enrollment trends, particularly among traditional undergraduate students. APU’s existing Specific Plan was built around a student body that was two-thirds traditional undergraduate and one-third graduate, with 70% of undergraduates living on campus. Today, the student profile is nearly reversed: two-thirds graduate students, one-third undergraduates, with approximately 60% of undergraduates living on campus. ○ Evolving Academic Programs: APU is currently reviewing its academic offerings to align with market demands and changing student preferences. This includes evaluating the mix of programs and how they are delivered, many of which now incorporate hybrid or online learning models. ● Athletic Programs. APU will return men’s football in Fall 2026 and add two new women’s sports programs in the following two years. In addition, APU will move from NCAA Division II to NCAA Division III. The addition of the new sports will be incorporated into the new master plan and specific plan development. ● Financial Sustainability and Strategic Integration. APU has developed a new integrated planning process (model), including a five-year budget projection that supports financial sustainability. This financial framework is essential to guiding capital investment decisions, development priorities, and programmatic changes. These initiatives collectively highlight the importance of a Development Agreement extension to provide planning continuity, institutional stability, and sufficient time for meaningful community engagement. The extension will allow APU to operate under its current Specific Plan while preparing a new, data-informed vision for the campus that reflects modern enrollment realities, academic strategies, athletic programs, and community priorities. 811 W. 7th Street, Suite 200 Los Angeles, CA 90017 (213) 935-1901 www.impactsciences.com Impact Sciences, Inc. 1 Consistency Analysis for the APU Development Agreement Extension March 2025 Azusa Pacific University MEMORANDUM To: Marty Akerblom, Partner, Allen Matkins Leck Gamble Mallory & Natsis LLP From: Jessica Kirchner, AICP, CEO & Managing Principal Re: Azusa Pacific University Specific Plan Development Agreement Extension Project Date: March 13, 2025 Azusa Pacific University Specific Plan Development Agreement Extension Project The Azusa Pacific University (APU) Specific Plan (Specific Plan) was adopted in March of 2006 to accompany the Master Plan for the expansion of the campus. The Specific Plan serves as a comprehensive guide to defining the character of future physical development for the main campus of APU. The Specific Plan defines a physical development program that accommodates program growth and increases in student enrollments by allowing the removal of various existing structures and the construction of new academic, athletic, parking and residential facilities. The pace of implementation is dependent upon the success of fundraising efforts and enrollment growth. To reduce the economic risk of development and to reduce the waste of resources, a development agreement between the City of Azusa (City or Lead Agency) and APU was adopted through Ordinance Number 05-08, effective November 2, 2005 (the Development Agreement); the Development Agreement was approved for a period of twenty years. As the Development Agreement is reaching the end of its approved term, APU is proposing an extension of Section 1.4 of the Development Agreement by ten years. The ten-year extension of the Development Agreement constitutes the Project for purposes of analysis under the California Environmental Quality Act (CEQA). The purpose of this analysis is to determine whether the Project is within the scope of the Certified Environmental Impact Report (EIR) (SP EIR), including whether the Project is consistent with the SP EIR and whether the Project would result in any potential impacts of the Project that were not previously analyzed in the SP EIR. Land Use and Zoning Consistency The SP EIR discussed the APU campus having a General Plan designation of Institution/Schools, with the East Campus of the APU being zoned Specific Plan and the West Campus zoned Specific Plan and Commercial, General. Presently, the APU campus has a General Plan land use designation of Institution/Schools; the West Campus and East Campus are now entirely zoned Specific Plan.1 While the Commercial zoning has been removed from the West Campus, the land use and zoning designations continue to support the development of APU. To be able to continue to implement projects and improvements outlined in the Specific Plan, the existing Development Agreement will need to be extended. This Development Agreement extension will have no impact on the land use and zoning designations of the APU and would allow APU to implement more improvements to the campus in the future as already contemplated in the existing Specific Plan. 1 City of Azusa, City Maps. Available online at: https://www.azusaca.gov/1892/City-Maps, accessed March 6, 2025. Impact Sciences, Inc. 2 Consistency Analysis for the APU Development Agreement Extension March 2025 Azusa Pacific University Purpose of the EIR Consistency Analysis In the case of a project requiring discretionary approval for which the lead agency has certified an EIR for the overall project, as here, the lead agency must determine whether the project is exempt from further environmental review or whether a supplemental or subsequent EIR is required. CEQA statute and the State CEQA Guidelines provide guidance in this process by requiring an examination of whether, since the certification of the EIR, changes in the project or conditions have resulted in substantial changes in physical conditions that are considered significant under CEQA. If so, the lead agency would be required to prepare a subsequent EIR or supplement to the EIR. The examination of impacts is the first step taken by the lead agency in reviewing the CEQA treatment of the project. CEQA provides, in Public Resources Code Sections 21083.3, that if a parcel has been zoned or designated in a community plan or general plan to accommodate a particular density of and an EIR was certified for that zoning or planning action, the application of CEQA to the approval of any other project consistent with the zoning or community plan “shall be limited to effects upon the environment which are peculiar to the parcel or to the project and which were not addressed as significant effects in the prior environmental impact report, or which substantial new information shows will be more significant than described in the prior environmental impact report.” In accordance with this provision, the CEQA Guidelines provide, in Section 15183 (Projects Consistent with a Community Plan, General Plan, or Zoning) that “projects which are consistent with the development density established by existing zoning, community plan, or general plan policies for which an EIR was certified shall not require additional environmental review, except as might be necessary to examine whether there are project specific significant effects which are peculiar to the project or its site.” These provisions streamline the review of such projects and reduce the need to prepare repetitive environmental studies. Pursuant to Section 15183, the public agency shall limit its examination of environmental effects to those which the agency determines, in an initial study or other analysis: (1) Are peculiar to the project or the parcel on which the project would be located, (2) Were not analyzed as significant effects in a prior EIR on the zoning action, general plan or community plan with which the project is consistent, (3) Are potentially significant off-site impacts and cumulative impacts which were not discussed in the prior EIR prepared for the general plan, community plan or zoning action, or (4) Are previously identified significant effects which, as a result of substantial new information which was not known at the time the EIR was certified, are determined to have a more severe adverse impact than discussed in the prior EIR. In addition, in accordance with CEQA, as set forth in Public Resources Code Section 21166 and Section 15162 of the CEQA Guidelines, no subsequent or supplemental EIR shall be required unless the lead agency determines, on the basis of substantial evidence in light of the whole record, one or more of the following: (1) Substantial changes are proposed in the project which will require major revisions of the previous EIR due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; (2) Substantial changes occur with respect to the circumstances under which the project is undertaken which will require major revisions of the previous EIR due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; or (3) New information of substantial importance, which was not known and could not have been known with the exercise of reasonable diligence at the time the previous EIR was adopted, shows any of the following: (A) The project will have one or more significant effects not discussed in the previous EIR; (B) Significant effects previously examined will be substantially more severe than shown in the previous EIR; (C) Mitigation measures or alternatives previously found not to be feasible would in fact be feasible, and would substantially reduce one or more significant effects of the project, but the project proponents decline to adopt the mitigation measure or alternative; or Impact Sciences, Inc. 3 Consistency Analysis for the APU Development Agreement Extension March 2025 Azusa Pacific University (D) Mitigation measures or alternatives which are considerably different from those analyzed in the previous EIR would substantially reduce one or more significant effects on the environment, but the project proponents decline to adopt the mitigation measure or alternative. Subsequent changes to the CEQA Guidelines are not considered new information triggering a subsequent or supplemental EIR so long as the environmental issue was understood at the time of the initial EIR. (Olen Properties Corp. v. City of Newport Beach (2023) 93 Cal. App. 5th 270, 281.) EIR Process and Background Facing increasing enrollment demands, APU submitted an application for approval of a Specific Plan based on the Master Plan that had been prepared for the expansion of their campus. In 2004, at the time of preparation, the APU campus had a fall enrollment of 3,140 undergraduate students and 1,920 graduate students. Over the course of twenty years, the University anticipated future enrollments could grow to 5,260 undergraduates and 3,224 graduate students. To address this projected growth, the effective incorporation of Foothill Boulevard properties, including the site of the former Foothill Drive-In Theater, and the physical integration of APU’s vision statement, a new Master Plan was developed in 2002. APU subsequently decided to re-format the 2002 Master Plan into a Specific Plan by incorporating all of the state-required elements of a Specific Plan. In accordance with the requirements of CEQA, the City determined that an EIR should be prepared to analyze the potential impacts associated with the Specific Plan. On December 17, 2002 the City distributed a Notice of Preparation (NOP) and Initial Study (IS) describing the proposed project and stating that the City would prepare the SP EIR. The NOP and IS were distributed to the State Clearinghouse and various other local agencies and organizations. In accordance with the requirements of CEQA, the City provided a 30-day period for responses to the NOP and IS. The SP EIR discussed the following general topics: • Land Use and Planning; • Transportation and Circulation; • Aesthetics; • Noise; • Air Quality; • Geology and Soils; • Hazards and Hazardous Materials; • Public Services; • Public Utilities; • Cultural Resources; and • Population and Housing. The topics of Agriculture, Biology, Hydrology, Minerals, and Recreation were not discussed in the SP EIR, as they were scoped out during the IS. In 2018, the California Governor’s Office of Planning and Research 2 updated and expanded the CEQA checklist. This consistency analysis evaluates all 20 environmental factors outlined in the most recent CEQA Guidelines to assess whether the Project is consistent with the SP EIR analysis, and to confirm no new or greater impacts resulting in the need for new or supplemental analysis would occur. The analysis will confirm whether the proposed extension remains consistent with the General Plan land use designations, zoning, and applicable specific plan requirements, and mitigation measures identified in prior documents. EIR Consistency Analysis The organization of this analysis generally follows Chapter 4, Environmental Impact Analysis, from the SP EIR, except where new checklist questions are identified. Each section provides a brief summary of the environmental analysis from the SP EIR, addresses potential impacts associated with the Project, describes whether the Project is within the scope of the SP EIR such that no further environmental review is required, and assesses whether the Project would be 2 As of July 1, 2024, the Governor’s Office of Planning and Research was renamed the Governor’s Office of Land Use and Climate Innovation. (See Governor’s Office of Land Use and Climate Innovation, https://lci.ca.gov/.) Impact Sciences, Inc. 4 Consistency Analysis for the APU Development Agreement Extension March 2025 Azusa Pacific University consistent with the findings and mitigation measures identified in the SP EIR, resulting in less than significant impacts. This analysis is intended to provide a general overview that supports the finding that the Project is within the scope of the SP EIR and consistent with the SP EIR and no additional environmental review is required pursuant to CEQA. Aesthetics The SP EIR determined that implementation of the Specific Plan could have potentially significant impacts related to Aesthetic resources. The following mitigation measures from the Specific Plan were recommended: 4.3-1: The campus shall be designed, constructed, and operated in accordance with the Design, Architectural, and Landscape Guidelines proposed as part of the Specific Plan. 4.3-2: Light sources shall be designed, constructed, and operated such that light is directed downward to minimize light and glare impacts to the surrounding residential neighborhoods. 4.3-3: The campus shall have a landscape buffer around its perimeter that includes dense plantings of trees intended to screen the campuses from adjacent activities, properties, and vehicular corridors and to provide a defined edge. This landscape buffer shall be implemented in conjunction with each project that is developed as part of the Specific Plan. The Project proposes an extension to the existing Development Agreement between the City and APU by an additional ten years. The Project will have no impact on aesthetic resources because it does not propose any new development or designs not already contemplated in the existing Development Agreement, Specific Plan, or SP EIR. The Project does not propose any specific development that could result in impacts to aesthetic resources. Further, mitigation recommended in the SP EIR will continue to be applied to future development projects within APU. As such, implementation of the Project will have no impact on aesthetic resources and is consistent with the SP EIR findings. Agricultural/Forestry Resources The topic of agriculture was scoped out in the IS and was not included as a topic of analysis for the SP EIR as no farmland, agricultural land, or related uses are found in the vicinity of APU. Presently, no agricultural or forestry resources are found in the vicinity of APU. The Project proposes an extension to the existing Development Agreement between the City and APU by an additional ten years. It does not propose any specific development that could result in impacts to agricultural or forestry resources. As such, implementation of the Project will have no impact on agricultural/forestry resources and is consistent with the SP EIR findings. Air Quality The SP EIR determined that implementation of the Specific Plan could have potentially significant impacts related to air quality. The following mitigation measures were incorporated into the Project and/or the Air Quality Impact Analysis as well as mitigation measures proposed by the SP EIR: 4.5-1 To the maximum extent feasible, develop and implement a construction management plan, as approved by the City prior to issuance of a grading permit, which includes the following measures recommended by the South Coast Air Quality Management District (SCAQMD), or equivalently effective measures approved by the SCAQMD: a. Configure construction parking to minimize traffic interference. b. Provide temporary traffic controls during all phases of construction activities to maintain traffic flow (e.g., flag person). Impact Sciences, Inc. 5 Consistency Analysis for the APU Development Agreement Extension March 2025 Azusa Pacific University c. Schedule construction activities that affect traffic flow on the arterial system to off-peak hours to the degree practicable. d. Re-route construction trucks away from congested streets. e. Consolidate truck deliveries when possible. f. Provide dedicated turn lanes for movement of construction trucks and equipment on and off site. g. Maintain equipment and vehicle engines in good condition and in proper tune as per manufacturers’ specifications and per SCAQMD rules to minimize exhaust emissions. h. Suspend use of all construction equipment operations during second stage smog alerts. Contact the SCAQMD at (800) 242-4022 for daily forecasts. i. Use electricity from power poles rather than temporary diesel- or gasoline-powered generators. j. Use methanol- or natural-gas powered mobile equipment and pile drivers instead of diesel if readily available at competitive prices. k. Use propane- or butane-powered on-site mobile equipment instead of gasoline if readily available at competitive prices. 4.5-2 To the maximum extent feasible, develop and implement a dust control plan, as approved by the City prior to issuance of a grading permit, which includes the measures recommended by the SCAQMD, or equivalently effective measures approved by the SCAQMD, as provided in Rules 403 and 1186 regarding fugitive dust from construction activities. 4.5-3 Comply with Title 24 of the UBC energy conservation requirements. 4.5-4 Applicable transit mitigation fees shall be paid at the time of final map recordation. 4.5-5 All on- and off-road construction equipment shall to the extent feasible, as determined by the City of Azusa, use emulsified diesel fuel. The Project proposes an extension to the existing Development Agreement between the City and APU by an additional ten years and it does not propose any new development or designs not already contemplated in the existing Development Agreement, Specific Plan, or SP EIR. Impacts analyzed in the SP EIR will not increase, as overall emissions continue to decrease with improved construction technology and more stringent regulations under Title 24 of the UBC energy conservation requirements. Mitigation measures recommended in the SP EIR and adherence to SCAQMD guidance will be maintained and applied to future development projects within APU, which means any new or planned development under the existing Specific Plan could result in fewer emissions than initially disclosed in the SP EIR. Further, the Development Agreement does not propose any specific development that could result in negative impacts to air quality. As such, implementation of the Project will have no impact on air quality and is consistent with the SP EIR findings. Biological Resources The topic of biological resources was scoped out in the IS and was not included as a topic of discussion for the SP EIR because the university is located within an urban area, and therefore, has limited habitat value. In addition, the APU campus is not identified in any adopted plan as having sensitive natural communities nor any habitat conservation plan, and there are no wetlands on the campus. The Project proposes an extension to the existing Development Agreement between the City and APU by an additional ten years and it does not propose any new development or designs not already contemplated in the existing Development Agreement, Specific Plan, or SP EIR. The Development Impact Sciences, Inc. 6 Consistency Analysis for the APU Development Agreement Extension March 2025 Azusa Pacific University Agreement does not propose any specific development that could result in impacts to biological resources. As such, implementation of the Project will have no impact on biological resources and is consistent with the SP EIR findings. Cultural Resources The SP EIR determined that implementation of the Specific Plan could have potentially significant impacts related to cultural resources. The following mitigation measures from the Specific Plan were recommended: a. Historical Resources The following measures are proposed to lessen the impact of the project on historic resources present on the site: 4.10-1 The applicant shall be required to place a plaque or other form of marker(s) or displays on the subject property, in an appropriate public location, which will provide historic information about the founding and early history of Azusa Pacific University, and the Azusa Drive-In Theater. Historic and/or contemporary photographs should be included on the plaque. The content, format, and location of the marker shall be subject to the approval by the City of Azusa. 4.10-2 The applicant shall produce a Documentation Report consisting of black and white archival, quality photographs and measured drawings of the buildings and structures to be demolished or relocated and the Historic Resources Report prepared for this property. Copies of the Documentation Report shall be submitted to the Azusa Historical Society archives and the Azusa Library. 4.10-3 All efforts to relocate, restore, rehabilitate, or reconstruct the drive-in marquee shall be undertaken in conformance with a plan approved by the City of Azusa. This plan shall conform to the Secretary of the Interior’s Standards for the Treatment of Historic Properties and be prepared by a qualified and experienced historic preservation professional. The new location shall be an historically appropriate setting within the City of Azusa and the sign shall reflect its historic relationship with Foothill Boulevard. b. Archaeological Resources 4.10-4 In the event that archaeological resources are unearthed during project subsurface activities, all earth disturbing work within a 200-meter radius must be temporarily suspended or redirected until an archaeologist has evaluated the nature and significance of the find. After the find has been appropriately mitigated, work in the area may resume. c. Paleontological Resources 4.10-5 In the event that paleontological resources are unearthed during project subsurface activities, all earth disturbing work within 100-meter radius must be temporarily suspended or redirected until a paleontologist has evaluated the nature and significance of the find. After the find has been appropriately mitigated, work in the area may resume. d. Human Remains 4.10-6 If human remains are unearthed, State Health and Safety Code Section 7050.5 requires that no further disturbance shall occur until the County coroner has made the necessary findings as to origin and disposition pursuant to Public Resources Code Section 5097.98. If the remains are determined to be of Native American descent, the coroner has 24 hours to notify the Native American Heritage Commission (NAHC). The NAHC will then contact the most likely descendant of the deceased Native American, who will then serve as consultant on how to proceed with the remains (i.e., avoid, rebury). The Project proposes an extension to the existing Development Agreement between the City and APU by an additional ten years and it does not propose any new development or designs not already contemplated in the existing Impact Sciences, Inc. 7 Consistency Analysis for the APU Development Agreement Extension March 2025 Azusa Pacific University Development Agreement, Specific Plan, or SP EIR. The Development Agreement does not propose any specific development that could result in impacts to cultural resources. Mitigation recommended in the SP EIR will be applied to future development projects within APU. As such, implementation of the Project will have no impact on cultural resources and is consistent with the findings in the SP EIR. Energy The Project proposes an extension to the existing Development Agreement between the City and APU by an additional ten years. The Development Agreement does not propose any specific development that would utilize energy resources. While energy was not an environmental factor analyzed at the time the SP EIR was being developed, due to the nature of the Project, which will extend an existing Development Agreement and does not propose any new development or designs not already contemplated in the existing Development Agreement, Specific Plan, or SP EIR, it will not result in a significant environmental impact due to wasteful, inefficient, or unnecessary consumption of energy resources, nor will the Project conflict with or obstruct a state or local plan for renewable energy or energy efficiency. As demonstrated earlier with mitigation measure 4.5-3, all development projects under the Specific Plan will comply with Title 24 of the UBC energy conservation requirements. Further, future development projects will comply with any state or local plans for renewable energy and energy efficiency. As such, implementation of the Project will have no impact on energy resources and is consistent with the finding in the SP EIR. Geology and Soils The SP EIR determined that implementation of the Specific Plan could have potentially significant impacts related to geology and soils. The following mitigation measures from the Specific Plan were recommended: 4.6-1 Structural design for buildings and other improvements constructed as part of the Specific Plan shall comply with the current version of the Uniform Building Code and the California Building Code (California standards for seismic risk). 4.6-2 As part of design development for any new structures, a geotechnical investigation shall be conducted by a certified civil engineer or registered engineering geologist to investigate potential faulting, ground motion characteristics, settlement, expansive/collapsible soils, and liquefaction potential for review and approval by the City of Azusa prior to the issuance of grading and building permits. All approved construction measures shall be implemented. 4.6-3 To prevent soil erosion, prior to construction of any project that would result in grading or disturbance of 1 acre or greater, a Stormwater Pollution Prevention Plan shall be prepared. During each individual project, construction personnel shall implement all relevant measures of the plan during earthmoving and other construction activities. The plan shall include, but not be limited to, the following measures: a. To the extent possible, no earthmoving shall take place during the rainy season (between November 1 and April 1). Erosion control measures for individual projects that span the rainy season shall be in place before it begins. b. Specific soil stockpile areas shall be designated within proposed development (or other construction) areas, and soils shall not be stockpiled outside of the designated areas. Soils and other materials shall not be stockpiled near on-site drainage inlets. c. Tarps shall be used to cover any excavated soils during the rainy period. d. After completion of grading, erosion protection shall be provided. Re-vegetation shall be accomplished by mulching, hydroseeding, or other appropriate methods, and shall be initiated as soon as possible after completion of grading, and before November 1. Selection of plant materials shall consider native Impact Sciences, Inc. 8 Consistency Analysis for the APU Development Agreement Extension March 2025 Azusa Pacific University plantings and shall encourage shrubs and trees as a long-term erosion control feature, consistent with the campus Landscaping Plan. e. Implement all dust control measures identified in Section 4.5, Air Quality, of this EIR. The Project proposes an extension to the existing Development Agreement between the City and APU by an additional ten years and it does not propose any new development or designs not already contemplated in the existing Development Agreement, Specific Plan, or SP EIR. The Development Agreement does not propose any specific development that could impact geology and soils, and impacts of any future development under the extended Development Agreement were already analyzed in the SP EIR and will not be increasing. Further, mitigation recommended in the SP EIR will be applied to future development projects as they occur. As such, implementation of the Project will have no impact on geological resources or soil and is consistent with the SP EIR. Greenhouse Gas Emissions The Project proposes an extension to the existing Development Agreement between the City and APU by an additional ten years and it does not propose any new development or designs not already contemplated in the existing Development Agreement, Specific Plan, or SP EIR. The Development Agreement does not propose any specific development that could generate greenhouse gas emissions. While greenhouse gas emissions were not an environmental factor analyzed at the time the SP EIR was being developed, due to the nature of the Project, which will extend an existing Development Agreement and does not propose any new development, it will not generate greenhouse gas emissions, nor will it conflict with any plans, policies, or regulations adopted for the purpose of reducing the emissions of greenhouse gases. As such, implementation of the Project will not result in a significant impact related to greenhouse gas emissions, since no greenhouse gases will be emitted, and the Project is consistent with the SP EIR. Hazards and Hazardous Materials The SP EIR determined that implementation of the Specific Plan could have potentially significant impacts related to hazards and hazardous materials. The following mitigation measures were recommended: 4.7-1 All hazardous materials delivered and hazardous waste removed from the project site shall be in accordance Title 49 of the Code of Federal Regulations. 4.7-2 An annual inventory of hazardous materials in use on the Specific Plan site, as well as an emergency plan, shall be submitted by APU for an annual review to the Health Hazardous Materials Division of the LACFD, as required by SARA Title III and Chapter 6.95 of the California Health and Safety Code. 4.7-3 All buildings constructed prior to 1981 proposed to be demolished shall be surveyed and sampled for asbestos-containing building materials by a licensed asbestos abatement contractor. If asbestos-containing building materials is determined to be present in the structures to be demolished, all asbestos-containing material materials shall be removed under acceptable engineering methods and work practices by the licensed asbestos abatement contractor prior to demolition. These practices include, but are not limited to, containment of the area by plastic, negative air filtration, wet removal techniques and personal respiratory protection and decontamination. The process shall be designed and monitored by a California Certified Asbestos Consultant. The abatement and monitoring plan shall be developed and submitted for review and approval by the appropriate regulatory agencies (currently the City Building Official and South Coast Air Quality Management District) and shall include all on-site structures with ACBMs. 4.7-4 All on-site fluorescent light ballasts and electrical transformers that are not marked “No PCBs” shall be assumed to contain PCBs and shall be removed prior to demolition activities and disposed of by a licensed and certified PCB removal contractor, in accordance with local, state, and federal regulations. Impact Sciences, Inc. 9 Consistency Analysis for the APU Development Agreement Extension March 2025 Azusa Pacific University 4.7-5 Prior to the demolition of any building constructed prior to 1979, the contractor shall be informed of the potential presence of lead-based pains and instructed to retain a certified lead paint removal contractor to remove and dispose of all loose and peeling paint in accordance with federal, state and local regulations, unless prior testing confirms the absence of lead-based paints. The contractor shall also be instructed to take appropriate precautions to protect workers, the campus and the surrounding community, and to dispose of construction waste containing lead paint in accordance with local, state, and federal regulations. 4.7-6 A Phase II ESA shall be completed at the facility maintenance area by an environmental hazardous materials professional during the demolition. The Phase II ESA at a minimum shall include the completion of soil borings for the collection of soil samples in the vicinity of the USTs, clarifiers, hydraulic lift, hazardous waste storage area, and vehicle maintenance area. If the materials are determined to pose a risk to the public or construction workers, the construction contractor shall prepare and submit a remediation plan to the appropriate agency and comply with all federal, state, and local laws. Soil remediation methods could include excavation and onsite treatment, excavation and off-site treatment or disposal/treatment without excavation. Remediation alternatives for cleanup of contaminated groundwater could include in-situ treatment, extraction and on-site treatment, or extraction and off-site treatment/disposal. Construction plans shall be modified or postponed to ensure construction will not inhibit remediation activities and will not expose the public or construction workers to hazardous conditions. The Project proposes an extension to the existing Development Agreement between the City and APU by an additional ten years and it does not propose any new development or designs not already contemplated in the existing Development Agreement, Specific Plan, or SP EIR. The Development Agreement does not propose any specific development involving hazards and hazardous materials, and the impacts analyzed in the SP EIR will not be increasing because the Project does not propose any new development. Further, mitigation recommended in the SP EIR will be applied to future development projects within APU. As such, implementation of the Project will not result in impacts related to hazards and hazardous materials and is consistent with the SP EIR. Hydrology and Water Quality The topic of hydrology was scoped out in the IS and was not included as a topic of discussion for the SP EIR because the campus is developed with impervious surfaces and storm drains. Future development would result in land uses similar to existing uses and would not result in a substantial change in hydrology; the present-day campus is consistent with the prior analysis. The Project proposes an extension to the existing Development Agreement between the City and APU by an additional ten years and it does not propose any new development or designs not already contemplated in the existing Development Agreement, Specific Plan, or SP EIR. The Project does not propose any specific development that could result in impacts to hydrological resources or water quality. As such, implementation of the Project will have no impact on hydrological resources or water quality and is consistent with the SP EIR. Land Use and Planning The SP EIR identified no significant land use and planning impacts related to the implementation of the Specific Plan. As discussed earlier, APU presently has a General Plan land use designation of Institution/School and is zoned Specific Plan, consistent with the Land Use and Planning analysis provided in the SP EIR. The Project proposes an extension to the existing Development Agreement between the City and APU by an additional ten years and it does not propose any new development or designs not already contemplated in the existing Development Agreement, Specific Plan, or SP EIR. The Development Agreement does not propose any specific development that could result in impacts to land use and planning. As such, implementation of the Project will have no impact on land use and planning and is consistent with the SP EIR. Mineral Resources The topic of mineral resources was scoped out in the IS and was not included as a topic of discussion for the SP EIR because the campus is currently developed and is not available for the extraction of mineral resources. The campus Impact Sciences, Inc. 10 Consistency Analysis for the APU Development Agreement Extension March 2025 Azusa Pacific University remains developed and unavailable for mineral resource extraction. The Project proposes an extension to the existing Development Agreement between the City and APU by an additional ten years. The Development Agreement does not propose any specific development that could result in impacts to mineral resources. As such, implementation of the Project will have no impact on mineral resources and is consistent with the EIR. Noise The SP EIR determined that implementation of the Specific Plan could have potentially significant impacts related to hazards and hazardous materials. The following mitigation measures were recommended by the SP EIR: 4.4-1 The applicant shall submit a noise control plan to the satisfaction of the City of Azusa Planning Department. All requirements of the noise control plan shall be implemented for any construction actions that occur associated with the development of the Specific Plan. The noise control plan shall include, but not be limited to, the following: • Excavation, grading, and other construction activities related to the proposed project shall be restricted to the hours of operation allowed under Municipal Code Section 88-675(c)(3), which limits the hours of construction activities to between 7:00 AM to 6:00 PM. • Stockpiling and vehicle staging areas shall be located as far away from occupied residences and on-site dormitories as possible and screened from these uses by a solid noise attenuation barrier. • All stationary construction equipment (e.g., air compressor, generators, etc.) shall be operated as far away occupied residences and on-site dormitories as possible. If this is not possible the equipment shall be shielded with temporary sound barriers, sound aprons, or sound skins. • To the extent feasible, haul routes for removing excavated materials from the site shall be designed to avoid residential areas, and areas occupied by noise sensitive receptors (e.g., hospitals, schools, convalescent homes, etc.). 4.4-2 For each construction activity conducted as a part of the development of the Specific Plan, a construction relations officer shall be appointed by the project applicant to inform residents adjacent to the project site of the proposed construction activities, types of construction equipment used, length of construction, and measures taken to shield nearby residences from excessive construction noise. The construction relations officer shall also inform the residents of measures they can take to reduce the impact of the noise within their homes, such as keeping doors and windows closed during warm weather, turning on air conditioning in warm weather, and using earplugs. The following mitigation measures are applicable to both the softball and baseball fields located along the northwestern perimeter of the West Campus. 4.4-3 All use of public address systems shall cease at 10:00 PM on weekdays, and 10:30 PM on weekends. 4.4-4 For the softball and baseball fields, speakers for public address systems shall be mounted in such a fashion that they face the intended audience (away from the residential neighborhoods, and the settings shall be fixed by the manufacturer’s representative to ensure that sound levels from the systems not exceed 50 dB(A) Ldn13 at the closest residence, which is located 100 feet to the west of the proposed softball field). The Project proposes an extension to the existing Development Agreement between the City and APU by an additional ten years and it does not propose any new development or designs not already contemplated in the existing Development Agreement, Specific Plan, or SP EIR. The Development Agreement does not propose any specific development that could result in noise impacts. Mitigation recommended in the SP EIR will be applied to future Impact Sciences, Inc. 11 Consistency Analysis for the APU Development Agreement Extension March 2025 Azusa Pacific University development projects within APU. As such, implementation of the Project will not result in a significant impact resulting from noise and is consistent with the SP EIR. Population and Housing The SP EIR identified no significant population and housing impacts related to the implementation of the Specific Plan. The Project proposes an extension to the existing Development Agreement between the City and APU by an additional ten years and it does not propose any new development or designs not already contemplated in the existing Development Agreement, Specific Plan, or SP EIR. The Development Agreement does not propose any specific development that could result in impacts to population and housing. As such, implementation of the Project will have no impact population and housing and is consistent with the SP EIR. Public Services The SP EIR determined that implementation of the Specific Plan could have potentially significant impacts related to public services, particularly fire department resources. The following mitigation measures were incorporated into the Specific Plan and were recommended by the SP EIR: 4.8.1-1 APU shall comply with applicable fire and life safety standards and code requirements such as fire hydrant flows, hydrant spacing, fire flow, adequate fire land turning-radius, access and design to meet the needs of the Fire Department’s fire protection requirements. 4.8.1-2 The Specific Plan shall require the installation of sprinkler systems in both new and refurbished buildings. (1) General Requirements 4.8.1-3 The development of the Specific Plan shall comply with all applicable code and ordinance requirements for construction, access, water mains, fire flows, and hydrants. Specific fire and life safety requirements for the construction phase will be addressed at the building fire plan check. There may be additional fire and life safety requirements during this time. 4.8.1-4 Every building constructed shall be accessible to Fire Department apparatus by way of access roadways, with an all-weather surface of not less than the prescribed width, unobstructed, clear-to-sky. The roadway shall be extended to within 150 feet of all portions of the exterior walls when measured by an unobstructed route around the exterior of the building. (2) Institutional 4.8.1-5 Final fire flows shall be determined by the Fire Department at final building plan check, based on the size of the buildings, their relationship to other structures, property lines, and types of construction used. 4.8.1-6 Fire hydrant spacing shall be 300 feet and shall meet the following requirements: • No portion of lot frontage shall be more than 200 feet via vehicular access from a public fire hydrant. • No portion of a building shall exceed 400 feet via vehicular access from a properly spaced public fire hydrant. • Additional hydrants shall be required if a hydrant spacing exceeds specified distances. 4.8.1-7 Turning radii for new on-campus roadways shall not be less than 32 feet. This measurement shall be determined at the centerline of the road. A Fire Department approved turning area shall be provided for all driveways exceeding 150 feet in length and at the end of all cul-de-sacs. All on-site driveways shall provide a minimum unobstructed width of 2 feet, clear-to-sky. The on-site driveway is to be within 150 feet of all Impact Sciences, Inc. 12 Consistency Analysis for the APU Development Agreement Extension March 2025 Azusa Pacific University portions of the exterior walls of the first story of any building. Driveway width for non-residential developments shall be increased when any of the following conditions will exist: • Provide 28 feet in width, when a building has three or more stories, or is more than 35 feet in height above access level. Also, for using fire truck ladders, the centerline of the access roadway shall be located parallel to, and within 30 feet of, the exterior wall on one side of the proposed structure; • Provide 34 feet in width, when parallel parking is allowed on one side of the access roadway/driveway; • “Fire Lanes” are any ingress/egress, roadway/driveway with paving less than 34 feet in width, and will be clear-to-sky. All “Fire Lanes” will be depicted on the final buildings plans; and • For streets with parking restrictions: The entrance to the street/driveway and intermittent spacing distances of 150 feet shall be posted with Fire Department approved signs stating “NO PARKING – FIRE LANE” in 3-inch high letters. Driveway labeling is necessary to ensure access for Fire Department use. (3) High-Density Residential 4.8.1-8 Development may require fire flows up to 5,000 gallons per minute at 20 pounds per square inch residual pressure for up to a five-hour duration. Final fire flows will be based on the size of the buildings their relationship to other structures, property lines, and type of construction used. Fire hydrant spacing shall be 300 feet and shall meet the following requirements: • No portion of lot frontage shall be more than 200 feet via vehicular access from a public fire hydrant. • No portion of a build shall exceed 400 feet via vehicular access from a properly spaced fire hydrant. • When cul-de-sac depth exceeds 200 feet, hydrants will be required at the corner and mid-block. • Additional hydrants will be required if the hydrant spacing exceeds specified distances. 4.8.1-9 Turning radii for new on-campus roadways shall not be less than 32 feet. This measurement shall be determined at the centerline of the road. A Fire Department approved turning area shall be provided for all driveways exceeding 150 feet in length and at the end of all cul-de-sacs. When serving land zoned for residential uses having a density of more than four units per net acre: • A cul-de-sac shall be a minimum of 34 feet in width and shall not be more than 700 feet in length. • The length of the cul-de-sac may be increased to 1,000 feet if a minimum of 36 feet in width is provided. • A Fire Department approved turning area shall be provided at the end of a cul-de-sac. 4.8.1-10 All on-site driveways shall provide a minimum unobstructed width of 26 feet, clear-to-sky. The on-site driveway is to be within 150 feet of all portions of the exterior walls of the first story of any building. The 26 feet width does not allow for parking, and shall be designated as a “Fire Lane," and have appropriate signage. The 26 feet in width shall be increased to • Provide 34 feet in width when parallel parking is allowed on one side of the access way; • Provide 36 feet in width parallel parking is allowed on both sides of the access way; • Any access way less than 34 feet in width shall be labeled “Fire Lane” on the final recording map, and final building plans; and • For streets or driveways with parking restrictions: The entrance to the street/driveway and intermittent spacing distances of 150 feet shall be posted with Fire Department approved signs stating “NO PARKING – FIRE LANE” in 3-inch high letters. Driveway labeling is necessary to ensure access for Fire Department use. Impact Sciences, Inc. 13 Consistency Analysis for the APU Development Agreement Extension March 2025 Azusa Pacific University (4) Limited Access Devices (gates, etc.) 4.8.1-11 All access devices and gates shall meet the following requirements: • Any single fate used for ingress and egress shall be minimum of 26 feet in width, clear-to-sky. • Any gate used for a single direction of travel, used in conjunction with another gate, used for travel in the opposite direction, (split gates) shall have a minimum width of 20 feet each, clear-to-sky. • Gates and/or control devices shall be positioned a minimum of 50 feet from a public right-of-way, and shall be provided with a turnaround having a minimum of 32 feet of turning radius. If an intercom system is used, the 50 feet shall be measured from the right-of-way to the intercom control device. • All limited access devices shall be of a type approved by the Fire Department. • Gate plans shall be submitted to the Fire Department, prior to installation. These plans shall show all locations, widths, and details of the proposed gates. (5) Traffic Calming Measures 4.8.1-12 All proposals for traffic calming measures (speed humps/bumps, traffic circles, roundabouts, etc.) shall be submitted to the Fire Department for review prior to implementation. The Project proposes an extension to the existing Development Agreement between the City and APU by an additional ten years and it does not propose any new development or designs not already contemplated in the existing Development Agreement, Specific Plan, or SP EIR. The Development Agreement does not propose any specific development that could result in impacts to public services. Recommended mitigation measures will be maintained and applied to future development projects within APU. As such, implementation of the Project will not result in significant impacts to public services and is consistent with the SP EIR. Recreation The topic of recreation was scoped out in the IS and was not included as a topic of discussion for the SP EIR because the Specific Plan would increase recreational opportunities, thereby resulting in a positive impact on recreational opportunities for area residents. This analysis remains consistent. The Project proposes an extension to the existing Development Agreement between the City and APU by an additional ten years. The Development Agreement does not propose any specific development that would increase the use of nearby parks and recreational facilities, nor does the Project propose or necessitate the construction of additional recreational facilities. As such, implementation of the Project will have no impact on recreational facilities and is consistent with the SP EIR. Transportation The SP EIR determined that implementation of the Specific Plan could have potentially significant impacts related to public services, particularly fire department resources. The following mitigation measures were incorporated into the Specific Plan and were recommended by the SP EIR: 4.2-1 The main entry off Citrus Avenue to the East Campus will be signalized to operate more efficiently. 4.2-2 The APU Specific Plan provides a total of 4,897 spaces. 4.2-2 Calera Avenue and Alosta Avenue. The project applicant shall pay the project’s fair share to modify the intersection to provide an eastbound left-turn lane. This improvement will require striping modifications and modifications to the existing raised median. Impact Sciences, Inc. 14 Consistency Analysis for the APU Development Agreement Extension March 2025 Azusa Pacific University 4.2-4 I-210 WB Off-Ramp and Baseline Road. The project applicant shall pay the project’s fair share to convert the existing unsignalized intersection into a signalized intersection. This improvement will require the addition of traffic signal equipment at the intersection. The mitigation of this intersection will require the involvement of Caltrans. 4.2-5 Citrus Avenue and Foothill Boulevard. The project applicant shall pay the project’s fair share to adjust the signal phasing to allow for a protected eastbound left-turn phase. This improvement will require modifications to the existing traffic signal equipment at the intersection. 4.2-6 Citrus Avenue and Alosta Avenue. The project applicant shall pay the project’s fair share to adjust the signal phasing to allow for a protected southbound left-turn phase. This improvement will require modifications to the existing traffic signal equipment at the intersection. 4.2-7 Citrus Avenue and Mauna Loa Avenue. The project applicant shall pay the project’s fair share to convert the existing unsignalized intersection into a signalized intersection. This improvement will require the addition of traffic signal equipment at the intersection. 4.2-8 Citrus Avenue and Baseline Road. The project applicant shall pay the project’s fair share to modify the intersection to provide an additional northbound left-turn lane. This improvement will require striping modifications and modifications to the existing raised median. 4.2-9 Cerritos Avenue and Foothill Boulevard. The project applicant shall pay the project’s fair share to modify the intersection to provide a southbound left-turn lane, through lane, and two right-turn lanes and a northbound left-turn lane, shared-through/left-turn lane and a right-turn lane. This improvement will require striping modifications and modifications to the existing raised median. 4.2-10 Pasadena Avenue and Foothill Boulevard. The project applicant shall pay the project’s fair share to adjust the signal phasing to allow for a protected northbound left-turn phase. This improvement will require modifications to the existing traffic signal equipment at the intersection. 4.2-11 Alameda Avenue and Foothill Boulevard. The project applicant shall pay the project’s fair share to adjust the signal phasing to allow for a protected/permitted eastbound left-turn phase. This improvement will require modifications to the existing traffic signal equipment at the intersection. 4.2-12 Azusa Avenue and Foothill Boulevard. The project applicant shall pay the project’s fair share to modify the intersection to provide a northbound right-turn lane. This improvement will require striping modifications and the removal of some on-street parking. 4.2-13 Azusa Avenue and 1st Street. The project applicant shall pay the project’s fair share to adjust the signal phasing to allow for a protected/permitted northbound left-turn phase and permitted southbound left-turn phase. This improvement will require modifications to the existing traffic signal equipment at the intersection. 4.2-14 San Gabriel Avenue and Foothill Boulevard. The project applicant shall pay the project’s fair share to modify the intersection to provide an additional westbound left-turn lane. This improvement will require striping modifications and modifications to the existing raised median. 4.2-15 Citrus Avenue and I-210 EB Off-Ramp. The project applicant shall pay the project’s fair share to modify the intersection to change the eastbound right-turn lane to an eastbound shared left-turn/right-turn lane. This improvement will require striping modifications. The mitigation of this intersection will require the involvement of Caltrans. The Project proposes an extension to the existing Development Agreement between the City and APU by an additional ten years. The Development Agreement does not propose any specific development that could result in impacts to transportation and circulation. Although the CEQA Guidelines now recognize vehicle miles traveled (VMT) as the Impact Sciences, Inc. 15 Consistency Analysis for the APU Development Agreement Extension March 2025 Azusa Pacific University primary determination of impacts, the Project would have no impact on VMT compared to the conditions analyzed in the SP EIR, as the Development Agreement would not generate any trips beyond those that would occur as a result of the project previously analyzed in the SP EIR. Moreover, CEQA Guidelines Section 15064.3(c) makes clear that this section only applies prospectively. Recommended mitigation measures will be applied to future development projects within APU. As such, implementation of the Project will not result in significant impacts to transportation and is consistent with the SP EIR. Tribal Cultural Resources The Project proposes an extension to the existing Development Agreement between the City and APU by an additional ten years. The Development Agreement does not propose any specific development that could impact tribal cultural resources. While tribal cultural resources were not an environmental factor analyzed at the time the SP EIR was being developed, due to the nature of the Project, which will extend an existing Development Agreement and does not propose any new development, implementation of the Project will not result in impacts to tribal cultural resources. Future development projects will comply with the mitigation measures provided in the Cultural Resources EIR. No earth moving activity is proposed with the Project, resulting in no impacts to tribal cultural resources. As such, the Project would be consistent with the SP EIR. Utilities The SP EIR determined that implementation of the Specific Plan could have potentially significant impacts related to public utilities. The following mitigation measures were recommended: Sewer 4.9.1-1 Implementation of the Specific Plan shall comply with all water conservation measures required by the applicable City and state regulations. 4.9.1-2 APU shall be required to submit the Sewer Master Plan prepared for the Specific Plan to the City of Azusa for review. APU shall also be required to pay plan check and inspection fees as required by the City of Azusa. 4.9.1-3 APU shall be required to pay the connection fees imposed by the County Sanitation Districts of Los Angeles County. Water Service 4.9.2-1 Each project implemented under the Specific Plan shall be required to comply with all water conservation measures required by applicable City and state regulations. 4.9.2-2 Each project implemented under the Specific Plan shall be required to pay for the requisite infrastructure improvements identified by the Azusa Light and Water Department through the existing water system development fee requirements. Solid Waste 4.9.3-1 To the extent feasible, demolition debris and construction wastes shall be recycled. The APU shall facilitate recycling of materials in these wastes through coordination with Athens Services and demolition contractors. 4.9.3-2 All building construction specifications shall encourage contractors to use recycled content building materials. 4.9.3-3 Development of the Specific Plan shall meet the requirements of all applicable solid waste diversion, storage, and disposal regulations that may be in effect at the time of building permit application. Impact Sciences, Inc. 16 Consistency Analysis for the APU Development Agreement Extension March 2025 Azusa Pacific University The Project proposes an extension to the existing Development Agreement between the City and APU by an additional ten years and it does not propose any new development or designs not already contemplated in the existing Development Agreement, Specific Plan, or SP EIR. The Development Agreement does not propose any specific development that could result in impacts to public utilities. Recommended mitigation measures will be applied to future development projects within APU. Implementation of the Project will not result in significant impacts to public utilities and is consistent with the SP EIR. Wildfire The Project proposes an extension to the existing Development Agreement between the City and APU by an additional ten years. The Development Agreement does not propose any specific development that could be exposed to risk of wildfire. While wildfire risk was not an environmental factor analyzed at the time the SP EIR was being developed, due to the nature of the Project, implementation of the Project will not result in development that could be exposed to risk of wildfire. APU is not located in a state responsibility area nor is it located within a Very High Fire Hazard Severity Zone.3 No development is proposed with the Project, resulting in no potential for exposure to risk of wildfire. As such, the Project would be consistent with the SP EIR. Conclusion As demonstrated in the analysis above, the proposed ten-year Development Agreement extension would not result in changes to impacts analyzed in the SP EIR, and none of the conditions under CEQA Guidelines Section 15162 related to new or greater impacts would occur. The Development Agreement does not propose any specific new development and impacts would not increase beyond what was already evaluated in the SP EIR. As such, the Project is found to be consistent with the SP EIR analysis, and further analysis is not necessary. 3 CALFIRE, Los Angeles County State Responsibility Area Fire Hazard Severity Zones, September 29, 2023. Available online at: https://34c031f8-c9fd-4018-8c5a-4159cdff6b0d-cdn-endpoint.azureedge.net/-/media/osfm-website/what-we- do/community-wildfire-preparedness-and-mitigation/fire-hazard-severity-zones/fire-hazard-severity-zones-map-2022/fire- hazard-severity-zones-maps-2022- files/fhsz_county_sra_11x17_2022_losangeles_3.pdf?rev=8332cd92d19a410e80153711bbae4d74&hash=662234F0F323C2F8 CCD56EB9BE8F6A35, accessed March 6, 2025.