Fee Deferral Agreement - K. Hovnanian at Gilroy, LLC
RECORDING REQUESTED BY AND
WHEN RECORDED MAIL TO:
DOCUMENT: 21154824
IIII II IIIIIIIII
Pages: 7
Fees. * No Fees
Taxes.
Copies.
AMT PAID
City of Gilroy
7351 Rosanna Street
Gilroy, CA 95020
Attn: City Clerk
REGINA ALCOMENDRAS
SANTA CLARA COUNTY RECORDER
Recorded at the request of
City
RDE ** 008
4/22/2011
3:00 PM
THIS DOCUMENT IS RECORDED FOR THE BENEFIT OF THE CITY OF GILROY AND IS ENTITLED TO BE RECORDED FREE OF
CHARGE IN ACCORDANCE WITH SECTION 6103 & 27383 OF THE GOVERNMENT CODE
FEE DEFERRAL AGREEMENT
[Government Code ~ 66007]
/1" . This Agreement ("Agreement") is made for reference purposes as of this Ih -fftday of
~CLm~v ,2010, (hereinafter "Reference Date") by and between K. Hovnanian at Gilroy,
LLC, a California limited liability company ("Owner"), and City of Gilroy, a municipal
corporation ("City"), affecting the real property commonly referred to as "Deerpark Phase III" in
Gilroy, California (the "Property"), as more particularly described in Exhibit A attached hereto.
RECITALS
The City Council of the City of Gilroy has adopted certain fees and charges, for the
construction of certain public improvements and facilities, to be imposed on new residential
development, ofthe type specified and enumerated in Exhibit B attached hereto (the
"Development Fees"). The amounts of Development Fees shown on Exhibit B attached hereto
reflect the amounts in effect on the Reference Date of this Agreement, and do not necessarily
reflect the amounts of such Development Fees that will be in effect as of the date that building
permits are issued for all or any portion of the project to be developed on the Property.
The City currently requires that developers of new residential units pay the Development
Fees in the amount in effect at the time of issuance of building permits for construction of such
residential units, said payment due at the time of issuance of said building permits.
The California Government Code, Section 66007, provides for the deferral of the
payment of the Development Fees until the date of the final inspection or the date the certificate
of occupancy is issued, whichever occurs earlier, if, as a condition to the issuance of a building
permit for the Property, a contract agreeing to pay the Development Fees at the deferred due date
is entered into by the Owner and is recorded against the Property. This Agreement is entered
into by Owner pursuant to Government Code Section 66007.
NOW THEREFORE, for and in consideration of the deferral of Development Fees by the City as
set forth herein, and for other valuable consideration, Owner and City hereby agree and covenant
as follows:
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1. The Development Fees due to the City for a residential unit to be constructed on
the Property (a "Residential Unit") shall be the amounts of such Development Fees in effect as
of the date that the building permit for such Residential Unit is issued by the City. Owner
acknowledges and agrees that such amounts may not be in the amounts shown on Exhibit B
attached hereto, but may be more or less than the amounts shown on said Exhibit B. Subject to
this Section 1 below, the Development Fees due for a Residential Unit upon issuance of a
building permit for such Residential Unit shall be deferred until the date of the final inspection or
the date a certificate of occupancy is issued for such Residential Unit, whichever occurs first, and
Owner shall pay said Development Fees prior to or upon the applicable deferred due date in the
amounts established by the City as of the building permit issuance date. The City may withhold
the final inspection approval or the certificate of occupancy for a Residential Unit, whichever
approval determines the deferred due date, until the Development Fees due for such Residential
Unit are paid in full. Notwithstanding this Section 1 above, deferral of Development Fees
pursuant to this Agreement shall terminate on November 30,2013 as to all Residential Units not
yet constructed and for which building permits are not then in effect, and as to each such
Residential Unit the Development Fees in effect at the time of issuance of the building permit for
such Residential Unit shall not be deferred and shall be due upon issuance of such building
permit.
2. City shall cause this Agreement to be recorded in the office of the county recorder
of Santa Clara County, California in the grantor-grantee index in the name of the City of Gilroy
as grantee and in the name of the Owner as grantor. This Agreement shall not be effective unless
and until it is signed by City and Owner and recorded as required by the prior sentence.
3. As recorded, this Agreement shall constitute a lien against the Property,
enforceable against all subsequent owners of all or any portion of the Property, for the payment
of the Development Fees.
4. Nothing contained in this Agreement shall be deemed to authorize or permit the
deferral of payment of any fee or charge imposed upon residential development within the City
of Gilroy except for the specific types of Development Fees identified on Exhibit B. Nothing
contained in this Agreement shall be deemed to grant to Owner or anyone else the right to obtain
any building or other permits or any other City approval with respect to the Property.
5. The City of Gilroy shall record a full release of the obligation under this
Agreement upon payment in full of the Development Fees for the entire Property. Upon
payment in full of the Development Fees owed for a single lot comprising a portion ofthe
Property and described on Exhibit A, the City shall record a partial release of the obligation
under this Agreement, to release the lien of this Agreement as an encumbrance against such
single lot for which such Development Fees have been paid.
IN WITNESS WHEREOF, Owner and City have caused this Agreement to be executed as of the
dates set forth besides their signatures below.
lLAC\833919.1
111910-04706083
2
Dated: De.~bc.r- I (,p, 20\6
Dated:
~t~I 1\
APPROVED AS TO FORM:
(J? .", /: /) /(
:) r {A..i ,< c.i, (L-'{L~ / r-~
Linda A. Callon
City Attorney
lLAC1833919.1
111910-04706083
K. HOVNANIAN AT GILROY, LLC, a
California limited liability company
By:
y~
Name: Tau \ sa~r>
Title: LaVld. ~l~ A-tlV\*
F ILROY, a municipal corporation
By:
Thomas J. Hag
3
EXHIBIT A
Legal Description of Property
All that real property located in the City of Gilroy, County of Santa Clara, State of
California, described as follows:
LOTS I THROUGH 18,28 THROUGH 45, 64, 65 AND 84 THROUGH 108, AS
SHOWN ON THA T CERTAIN MAP ENTITLED "TRACT NO. 9966, DEER
PARK PHASE III", \VHICH WAS FILED IN THE OFFICE OF THE
RECORDER OF THE COUNTY OF SANTA CLARA, STATE OF
CALIFORNIA ON SEPTEMBER 27,2010 IN BOOK 838 OF MAPS, PAGES 44
THROUGH 52.
lLAC1833919.1
111910-04706083
4
"
EXHIBIT B
(Development Fees Per Lot)
Public Facilities - Residential Low Density
$21,586.00
Sewer - Residential Low Density
$12,531.00
Traffic - Residential Low Density
$11,809.00
Water - Residential Low Density
$5,236.00
Total
$51,162.00
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~
STATE OF CALIFORNIA}
COUNTY OF ~OtY\Jet QQa ~ ss.
On '. lo ~ I 0 , befor me, va V\..lS8Ct ~ VV\..Ol ~
Notary Public, personally appeared o...u.l r-S. , who proved to
me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to
the within instrument and acknowledged to me that he/she/they executed the same in
his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the
person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that
the foregoing paragraph is true and correct.
(Seal)
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lLAC1833919.1
111910-04706083
6
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
CIVIL CODE i 1189
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On~ Igj2C\\
Date
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State of California
County of
personally appeared
before me, C.i.....dr:\ "E. N.."v';i Nt; h\t-v
Here Insert Name and Titl~ of the Officer I
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Name(s) of Sign~
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who proved to me on the basis of satisfactory
evidence to be the person~ whose name(5) is/9J'El
subscribed to the within instrument and acknowledged
to me that he/~/~y executed the same in
his/h,et/tp.err authorized capacity~), and that by
his/hE!'r/tlJeir signature(.s) on the instrument the
personis), or the entity upon behalf of which the
person(s') acted, executed the instrument.
I certify under PENALTY OF PERJURY under the
laws of the State of California that the foregoing
paragraph is true and correct.
Place Notary Seal Above
WITNESS my hand and official seal.
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Signature:
Signature of Notary Public
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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 Document ref' 'D <? 4 I" tree)
rL)I~'ZOIG
Document Date:
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Number of Pages:
Signer(s) Other Than Named Above:
Capacity(ies) Claimed by Signer(s)
Signer's Name:
D Corporate Officer - Title(s):
D Individual
D Partner - D Limited D General Top of thumb here
D Attorney in Fact
D Trustee
D Guardian or Conservator
D Other:
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RIGHT THUMBPRINT
OF SIGNER
Signer's Name:
D Corporate Officer - Title(s):
D Individual
D Partner - D Limited D General
D Attorney in Fact
D Trustee
D Guardian or Conservator
D Other:
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OF SIGNER
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Signer Is Representing:
Signer Is Representing:
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