Ordinance 1986-05 ORDINANCE NO. 86-5
AN ORDINANCE OF THE CITY APPROVING AN AMENDMENT
TO A GOVERNMENT CODE SECTION 65864 DEVELOPMENT
AGREEMENT BETWEEN THE CITY OF GILROY AND FILICE
FAMILY ESTATES RELATING TO THE DEVELOPMENT OF
SANTA TERESA TECHNOLOGY PARK
THE CITY COUNCIL OF THE CITY OF GILROY DOES ORDAIN
AS FOLLOWS:
SECTION I: That attached hereto and incorporated herein
by reference is FIRST AMENDMENT TO DEVELOPMENT AGREEMENT
consisting of 5 pages between the City of Gilroy and Filice
Family Estates which is hereby approved by the Council
pursuant to Government Code Sections 65864 through 65869.5,
and City Administrator, Jay Baksa, is hereby authorized to
execute said agreement on behalf of the City.
SECTION II: Ail other ordinances and parts of ordinances
in conflict herewith are hereby repealed.
SECTION III: This ordinance shall take effect and
be in full force thirty (30) days from and after its adoption
and approval.
PASSED AND ADOPTED this 17th day of March 1986 by the
following vote:
AYES:
COUNCILMEMBERS: ALBERT, GAGE, KLOECKER, MUSSALLEM,
PALMERLEE, VALDEZ and HUGH_AN
NOES:
COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: NONE
~~4~ C it~/ Mayor
ORDINANCE NO. 86-5
RECORDING REQUESTED BY:
WIIEN RECORDED, MAIL TO:
· FIRST AMENDMENT TO
DEVELOPMENT AGREEMENT
This is a first amendment to the Development Agreement
eutered into between the City of Gilroy (City) and Dysan Corpor-
ation [Dysan) and Filice Family Estates (Filice) on ,
1984 by adoption of Ordinance No. Subsequent to
adoption Of Ordinance No. approving sa~d Development
Agreement, the City of Gilroy imposed a moratorium on new sewer
hook-ups as the result of inadequate capacity at the sewer
plant.
Notwithstanding expiration of the moratorium,
continuing inadequate sewer capacity has made it impossible for
City to provide the capacity committed to under said Development
Agreement while at the same time allocating capacity for
projects which meet other community needs. Accordingly, City
,.
has requested the developers of Santa Teresa Technology Park
[Project) to modify the allocation of sewer capacity set forth
in their Development Agreement which they have voluntarily
agreed to do by entering into this amendment. Except as
expressly modified herein, all terms and provisions of the
aforementioned original agreement between the parties shall
remain in full force and effect.
IT IS AGREED AS FOLLOWS:
1. Through expiration of a contractual relationship
with Filice, Dysan Corporation no longer has a legal interest in
Project. Accordingly, said interest of Dysan has reverted to
Filice as successor, in interest with respect to all rights and
obligations of Dysan under the aforementioned original
agreement.
2. Paragraph 3 of the aforementioned original agree-
ment is amended to read:
Covenants of Filice. Filice agrees to proceed with
development of Project to the extent allowed (i.e~, density,
maximum square footage, etc.) under the aforementioned PUD
approval and to have taken out building permits no later than
December 31, 1989, necessary for development of 35.3 acres. Ail
on-site and off-site improvements shall be constructed at the
times and in the sequence required under the City's standard
form agreement relative to construction of improvements. The
co~m~itments of this paragraph are required by City under its
policy of encouraging industrial development to reduce chronic
high levels of unemployment - particularly among semi-skilled
and unskilled workers - and to mitigate the effects upon the
local labor force of seasonal fluctuation in employment
opportunities which occurs because of Gilroy ' s present
dependence upon agricultural related industry.
3. Paragraph 4 of the aforementioned original agree-
ment is amended to read:
Covenants of City. City covenants that all necessary
municipal services shall be available to build out the Project
according to the following schedule:
Years
January 1, 1986 through
December 31, 1989
January 1, 1990 through
December 31, 1995
Acres Developed
35.3
58.3
It is expressly understood that City's obligation
hereunder with respect to sewer.capacity shall be limited to the
following cumulative average daily flow measured at the Project
in terms of gallons per day (GPD):
Years GPD (Cummulative)
January 1, 1986 through .
December 31, 1989 70,600 gpd *
January 1, 1990 through
December 31, 1995 187,200 gpd *
· Maximum usage per acre: 2,000 gallons per day.
If, for any reason, either Party fails to reach the
above required obligations, any such failure shall have no
effect on the PUD approval.
4. Paragraph 5 of the aforementioned original agree-
ment is amended to read:
Extension/Construction of Public Facilities. All
water and sewer lines, storm drainage distribution systems,
streets, bridges, signalization, and other public works facili-
ties required for Project will be constructed on a phased basis
dependent upgn the needs of the Project and the City. City
agrees to cooperate in tile establishment of a reimbursement or
contribution mechanism and/or assessment district whereby Filice
is rei~l~ursed or paid on a pro-rata basis by owners of subse-
quently developed (within ten years following final payment of
said amounts by Filice) real property benefiting from said
public works facilities. The respective obligations and contri-
butions or credits of Filice and the City relative to said
public works facilities shall be set forth in the City standard
form agreement for construction and improvement.
5. Paragraph 6 of the aforementioned original agree-
ment is amended to' read:
Periodic Review. In compliance with Government Code
Section 65865.1, City shall have the right to continuously
monitor the progress of Filice toward the reaching of the
development levels prescribed herein. Filice shall cooperate
with the City by providing information necessary for such
monitoring.
6. Paragraph 8 of the aforementioned original agree-
ment is amended to read:
Notices: Any notices to be given under this agreement
shall be personally delivered or mailed as follows:
City City Administrator
City Hall
7351 Rosanna Street
Gilroy, California 95020
Filice Mr. John M. Filice, Jr.
Filice Family Estates
7951-A Wren Avenue
Gilroy, CA 95020
7. Paragraph 12 of the aforementioned original agree-
ment is amended to read:
Remedies. In the event City defaults on any of its
obligations hereunder, under no circumstances shall Filice be
entitled to damages for lost profits or be entitled to damages
for expenditures or costs incurred prior to the date of this
Agreement. Filice shall be entitled to punitive damages if
ordered by a court in the event the court finds the City's
default to have been willful, avoidable, arbitrary and capri-
cious. In the event Filice fails to develop 37.5 acres of
Project as required under Paragraph 3, City shall be relieved of
the obligation to reserve sewer plant capacity for the years
1990 through 1995.
8. Amendment to be Recorded. This amendment shall be
recorded by the City Clerk of City within 10 days following the
effective date thereof. All terms and conditions hereof shall
be binding upon, and inure to the benefit of, the parties hereto
and their respective successors, heirs, administrators and
assigns.
9. _Implementation of Revised Development Schedule.
The revised development schedule and sewer allocation provided
for under this Amendment shall not be implemented until all
periods for judicial review of this Amendment have expired or,
in the event of judicial challenge, the validity of this ;~end-
ment has been upheld and all periods of appeal expired or
appeals resolved in favor of the validity of the Amendment.
Until the happening of the latest of said events, Filice. shall
be entitled to the sewer allocation prescribed in the aforemen-
tioned original Development Agreement.
IN WITNESS WHEREOF, the parties have executed this
Amendment on the dates indicated below.
Dated:
CITY
By:
Title:
Dated:
FILICE
Title:
AGR10:3:ll/4/85
I, SUSANNE Eo STEINMETZ, City Clerk of the City of Gilroy, do
hereby certify that the attached Ordinance No° 86-5' is an
original ordinance, duly adopted by the Council of the City of
Gilroy at a regular meeting of said Council held on the I7th
day of i~rch , 1986 , at which meeting a quorum was
pres ent o
IN WITNESS WHEREOF, I have hereunto set my hand and affixed
the Official Seal of the City of Gilroy, this 28th day of
, , , 19 86.
ty Clerk of the City of Gilro~