Council to approve the Declaration of Easements, Covenants, Conditions and Restrictions for city parcel to be known as Civic Square.

ADOPT RESOLUTION NO. 2021-2133 APPROVING THE DECLARATION OF EASEMENTS, COVENANTS, CONDITIONS AND RESTRICTIONS FOR CIVIC SQUARE; PROVIDING FOR AUTHORIZATION, DIRECTION AND AN EFFECTIVE DATE. (Roric Massey, City Attorney) 

The CC&Rs contemplate that the City and Declarant(Globe) will be responsible for their cost allocation of the common expenses based on the relative size of their parcels.   For the first three years of the agreement, the City and Globe have agreed to share the cost of the maintenance of vacant parcels on a 50/50 basis.  Based on this formula, for the first three years of the agreement, the City’s estimated common expenses will be $88,938.33 to $167,242.73 based on preliminary budget estimates.  These costs have been included in the set-aside for civic square and will be programmed into the FY2022 and future budgets.
 

Pursuant to the Development Agreement entered between the City and Globe Corporation on August 19, 2019, the City and Globe have agreed to enter into a recorded reciprocal easement agreement (“REA”) to govern the rights of the parties with respect to the Civic Square Phase I property(the “Property”) and to address matters such as joint use rights; access, utility, temporary construction and other easements; maintenance of landscaping and other matters.  In order to accomplish the purposes of the REA as set forth in the Development Agreement, Declarant and the City desire to enter into the Declaration of Easements, Covenants, Conditions and Restrictions to create certain easements and establish certain covenants, conditions and restrictions on and for the mutual benefit of the Parcels within the Property and the present and future.
 

The CC&Rs are a legal document that will create a binding agreement among the current and future property owners of the Civic Square at Estrella Falls Phase I in order to accomplish the purposes of the Reciprocal Easement Agreement set forth in the Development Agreement, Globe and the City desire to execute and cause to be recorded this Declaration to create certain easements and establish certain covenants, conditions and restrictions on and for the mutual benefit of the Parcels within the Property to detail such subjects as property maintenance, common areas expense, design standards, storm drainage, cross-access and uses.  There is no property owners association created by the Declaration.  Generally the CC&Rs provide as follows:
 
Easements for Ingress and Egress 
There are created and granted to all owners and their respective permittees a perpetual, non?exclusive easement for the passage of vehicles over and across the driveways and drive aisles depicted on the Site Plan, or otherwise provided within the Property from time-to-time,  and for the passage of pedestrians over and across the sidewalks and walkways depicted on the Site Plan, or otherwise provided within the Property, subject, however, to the right of Owners to reasonable rights to restrict the use of their property under conditions defined in the Declaration. 
 
Easements for Storm Drainage 
There are created in favor of all owners, easements throughout the Property for necessary infrastructure for the conveyance and drainage of storm water.  The City is responsible to dedicate through the Final Plat a thirty (30) foot wide drainage easement through its property for the benefit of the remainder of the Property to drain storm water from the Property into Bullard Wash.  The City is responsible for maintaining the storm water infrastructure within its property and then will allocate those costs on a proportionate share to the remainder of the benefited owners. 

Encroachment and Signage Easements
Various easements are created to allow the location of signage and appurtenances within the Common Areas for the benefit of the Property.  Signage placed within the Property must comply with the Comprehensive Sign Plan and if on City property would require City permission.

Maintenance
Generally, the owners of various parcels are responsible for the upkeep and maintenance of their parcels in first class condition.   The CC&Rs provide that the Property Manager will be responsible for the maintenance of the common areas within the Property with such cost allocated to the various property owners through the common area expenses.   For the first three years of the agreement, the City and Globe have agreed to share the cost of maintenance of vacant parcels on a 50/50 cost share. 

Development Controls
There are a number of provisions regarding design approvals for future development of the Property that require pre-approvals from Globe to ensure consistency and quality throughout the Property.  These provisions generally exempt City owned property. 

Use Restrictions
The CC&Rs define use restrictions and conditions consistent with the development of a Class A commercial center.  The City and Globe have negotiated terms that protect Globe’s interests as commercial property owners while also facilitating the City’s use and programming of the City Hall and Park for municipal purposes.  
 
The balance of the Declaration concerns calculation of expenses, insurance provisions, rights of audit and other general legal boilerplate provisions.