VLG1, LLC
DOCUMENT: 18626822
Pages:
5
RECORDING REQUESTED BY
AND
WHEN RECORDED MAIL TO:
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Fees.
Taxes.
Copies.
AMT PAID
19.00
19 00
City of Gilroy
7351 Rosanna Street
Gilroy, CA 95020
Attn: City Clerk
BRENDA DAVIS
SANTA CLARA COUNTY RECORDER
Recorded at the request of
Attorney
RDE ** 009
10/17/2005
11: 45 AM
APN: Parce1841-79-OlO
SPACE ABOVE THIS LINE FOR RECORDER'S USE
COVENANT REGARDING DEVELOPMENT FEES
(COVENANT RUNNING WITH THE LAND)
This Covenant Regarding Development Fees ("Covenant") is made and entered into as of
J U J~ J i ' 2005 ("Effective Date") by and between the City of Gilroy, a municipal
corporati n ("City") and VLG 1, LLC, a CalIfornia Limited LiabilIty Company ("Owner").
RECITALS
A. Owner is the fee owner of certain real property located at 365 Obata Court,
Gilroy, California, more particularly described on Exhibit "A" attached hereto ("Property").
pwner desires to construyt: new commercial buildings comprised of approximately sixteen
thousand two hundred (16,200) square feet (the "New Business"). In connection with the
development of the New Business, Development Impact Fees in the amount of Seventy-One
Thousand, Three Hundred Sixty-Three Dollars ans Forty-Two Cents ($71,363.42) will be due
and owing to City upon issuance of the first certificate of occupancy of the New Business.
Pursuant to a certain Agreement between the City of Gilroy and VLG 1, LLC being entered into
concurrently herewith ("Deferral Agreement"), the City will grant Owner a contingent credit
against Development Impact Fees in the amount of Seventy-One Thousand, Three Hundred
Sixty-Three Dollars ans Forty-Two Cents ($71,363.42) ("the Deferred Fees"), pursuant to which
all or a portion of the Deferred Fees, together with interest thereon at the City's highest
investment rate for new monies computed from the date of issuance of the building permit for the
New Business until the amount owing is paid in full ("Interest"), may become payable to the
City at a later date on the terms and conditions set forth in the Deferral Agreement. The parties
desire to enter into and record this Covenant as notice to all subsequent owners of the Property
that the Deferred Fees and Interest may be payable by the Property Owner to the City in
accordance with the terms and conditions of the Deferral Agreement.
NOW, THEREFORE, FOR VALUABLE CONSIDERATION, THE PARTIES AGREE
AS FOLLOWS:
1. Owner hereby agrees, on behalf of itself and all subsequent owners of the
Property, to pay, when due, all Deferred Fees and Interest, in accordance with the terms and
conditions set forth in the Deferral Agreement.
2. The City and Owner hereby declare their express intent that the covenants set
forth in this Agreement are covenants running with the land, and apply to and bind Owner and
INVH\.1i1AA5.11
each of Owner's heirs, assigns, successors and successors-in-interest, and all subsequent owners
of the Property, all of whom shall have joint and several liability for the payment of the sums due
to City as described in this Covenant. Each and every contract, deed or other instrument
hereafter executed conveying the Property or any portion thereof shall be held conclusively to
have been executed, delivered and accepted subj ect to such covenants, regardless of whether
such covenants are set forth in such contract, deed or other instrument. All covenants contained
herein shall, without regard to technical classification or designation, be binding upon the Owner
and its heirs, assigns, successors and successors-in-interest, and all subsequent owners of the
Property, for the benefit of the City, and such covenants shall run in favor of City without regard
to whether the City is an owner of any land or interest therein to which such covenants relate.
3. If any action or suit is brought by one party against the other to enforce or
interpret this Covenant, the prevailing party in such action or suit shall be entitled to have and
recover from the other party all costs and expenses incurred in such action or suit, including
reasonable attorneys' fees.
4. If any provision of this Covenant is, or hereinafter is determined to be, for any
reason void, unenforceable or invalid, the remainder of this Covenant shall be and remain in full
force and effect. This Covenant shall be governed and construed in accordance with the laws of
the State of California. The waiver or failure to enforce any provision of this Covenant shall not
operate as a waiver of any future breach of any such provision or any other provision hereof
Executed on the date set forth below.
Dated:
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Dated:
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INVH\51R.<l!i3 1
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STATE OF CALIFORNIA )
)ss.
COUNTY OF SANTA CLARA )
TITLE OF DOCUMENT: Covenant Regarding Development Fees
(Covenant Running with the Land) between the City of Gilroy, a
municipal corporation ("City") and VLG 1, LLC, a California
Limited Liability Company ("Owner")
On July 14, 2005, before me, Rhonda Pellin, Notary Public, personally appeared Jay Baksa
personally known to me to be the person whose name is subscribed to the within instrument and
acknowledged to me that he executed the same in his authorized capacity, and that by his
signature on the instrument the person or the entity upon behalf of which the person acted,
executed the instrument.
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Sar*J Clara COUtty -
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per GC Sec. 40814; CC Sec. 1181
(Notary Seal)
CALlFORNIA ALL.PURPOSE ACKNOWLEDGMENT
State of California
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}ss
County of
Date
before mePr.-U\d.o.,. .~ N-o,i ~Ja\.c-
\j \ nCQ l~. \ c.. ~a= L;~icer e.g., "Jane Doe, N ary Public")
Namels) of Signer(s)
~ersonally known to me
6 rproved to me on the basis of satisfactory
evidence
On
lollllo;
personally appeared
to be the person~ whose nam~ is/are
subscribed to the within instrument and
acknowledged to me that hel3lge/tlgey executed
the same in hisfhe'/lIlefr authorized
capacit~ and that by hisfln:::'/lIleir
signatur$1"on the instrument the perso~or
the entity upon behalf of which the person~
acted, executed the instrument.
OPTIONAL
Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent
fraudulent removal and reattachment of this form to another document.
Description of Attached Document
Title or Type of DocumentL\O-u.non\ ..----~qwd.0S
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Document Date:
Number of Pages:
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Signer(s) Other Than Named Above:
H/A
Capacity(ies) Claimed by Signer
Signer's Name:
o Individual
o Corporate Officer - Title(s):
o Partner - 0 Limited 0 General
o Attorney-in-Fact
o Trustee
o Guardian or Conservator
o Other:
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Signer Is Representing:
@ 1999 National Notary Association' 9350 De Soto Ave., P.O. Box 2402' Chatsworth. CA 91313-2402' www.nationalnotary.org
Prod. No. 5907
Reorder: Call Toll-Free 1-800-876-6827
.
EXHIBIT A
LEGAL DESCRIPTION
Real property in the City of Glroy, County of Santa a~a, state of California, desalbed as
follows:
LOT la, AS SHOWN ON THAT CERTAIN MAP ENTIT1.E.O, HTRAc.T 9342., WHICH MAP WAS FILED
FOR RECORD IN 11iE OFFICE OF 1lIE RECORDER OF THE COUNTY OF SANTA CLARA, STATE OF
CALIFORNIA, ON DECEMBER 19, 2002, IN BOOK 756 OF MAPS, PAGES 23 & 24.
APN: 841-79-010