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2024/08/13 City Council Resolution 2024-067 RESOLUTION NO. 2024-067 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROHNERT PARK AUTHORIZING EXECUTION OF VARIOUS AGREEMENTS BETWEEN THE CITY AND BURBANK HOUSING COMMUNITIES CORPORATION TO EXTEND THE TERM OF THE CITY'S $260,000 LOAN UNTIL SEPTEMBER 1, 2039, PROVIDE FOR ANNUAL LOAN PAYMENTS AND ENSURE AFFORDABILITY FOR 55 YEARS FOR THE GARDENS PROPERTY WHEREAS, on July 1, 1995, the Community Development Commission of the City of Rohnert Park("Commission") and Burbank Housing Development Corporation ("Developer") executed and entered into a Security Agreement and Financing Statement ("Agreement")that set forth the terms under which City loaned Developer two hundred sixty thousand dollars ($260,000) with interest accruing and to be paid concurrently with principal on or before September 1, 2023; WHEREAS,the Agreement sets forth Developer's obligations with respect to use of loan proceeds related to the development and operation of an affordable multi-family housing project("Project") consisting of 20 units. Pursuant to the terms of the Agreement, the Project includes eight(8) low-income affordable units and twelve (12)moderate-income units; WHEREAS,following dissolution of state redevelopment pursuant to AB 1X 26, the City Council of the City of Rohnert Park (the "City") adopted a resolution electing to retain the housing assets and functions of the Commission,which includes the rights and obligations under the Agreement; WHEREAS, the Agreement was amended on August 22, 2023 to extend the term of the Agreement twelve months (12) until September 1, 2024 ("First Amendment"); WHEREAS,Developer currently has no ownership interest in the Property, which has been transferred to its affiliate property management company, Burbank Housing Communities Corporation ("Owner"); WHEREAS,Developer desires to assign to Owner, and Owner desires to assume all of Developer's rights and obligations under the Agreement as amended by the First Amendment; and WHEREAS,additionally, the City and Owner now wish to extend the term of the Agreement an additional fifteen (15) years, with a new expiration date of September 1, 2039, through a Second Amendment to Security Agreement and Financing Statement of even date herewith("Second Amendment"), in consideration for Owner to enter into a 55-year affordable housing covenant with City and provide annual loan payments of fifty percent of surplus cash. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Rohnert Park that it does hereby approve and authorize the City Manager to execute and consent to all documents necessary to extend the term of the City's $260,000 loan for The Garden property and effectuate the continued affordability of the 20 affordable ownership units as set forth in the Agreement, including without limitation: 1. Assignment and Assumption Agreement by and among Developer and Owner, in substantially similar form to Exhibit A of this Resolution, transferring the obligations under the Agreement to the Owner; 2. Second Amendment to Security Agreement and Financing Statement between Owner and the City, in substantially similar form to Exhibit B of this Resolution, extending the term of the loan an additional fifteen (15) years with a new expiration date of September 1, 2039, providing for annual loan payments and requiring an affordable housing covenant; and 3. Affordable Housing Covenant between Owner and the City, in substantially similar form to Exhibit C of this Resolution, documenting the Owner's affordable housing obligations. BE IT FURTHER RESOLVED that the City Manager is hereby authorized and directed to take all actions and execute any documents, including amendments to the assignment and assumption agreement, security agreement and financing statement, affordable housing covenant and subsequent form subordination and assignment agreements, as necessary to effectuate the intent of this resolution and the agreements approved herein. DULY AND REGULARLY ADOPTED this 13th day of August, 2024. CITY OF ' ! NERT PARK Ira r .. .� ATTEST: Susan'. Adams, Mayor Sylvia Lopez erk R D AS T ORM: ichelle M. Ken , ity Attorney Exhibits: Exhibit A, Exhibit B and Exhibit C. 41 ELWARD: RODRIGUEZ: ` SANBORN: L GIUDICE: ADAMS: .AY : ( 51 NOES: ABSENT: ( ABSTAIN: (ezt„) Resolution 2024-067 Page 2 of 2 EXHIBIT A TO RESO 2024-067 ASSIGNMENT AND ASSUMPTION AGREEMENT THIS ASSIGNMENT AND ASSUMPTION AGREEMENT (this "Assignment Agreement") is entered into as of the day of , 2024, by and among BURBANK HOUSING DEVELOPMENT CORPORATION, a California nonprofit public benefit corporation ("Assignor"), and BURBANK HOUSING COMMUNITIES CORPORATION, a California nonprofit public benefit corporation ("Assignee"). R E C I T A L S: A.This Assignment Agreement concerns a certain loan made by the Community Development Commission of the City of Rohnert Park (the “Commission”) to Assignor in order to fund the development of a property located at 120 Santa Alicia Drive, Rohnert Park, California, 94928, which is more particularly described in Exhibit A, attached hereto and incorporated herein by this reference (the “Property”). B.Assignor and the Commission, executed and entered into multiple agreements to facilitate the provision of a loan to fund development of the Property. These agreements included a Security Agreement and Financing Statement (“Security Agreement”) dated July 1, 1995. C.Following dissolution of redevelopment pursuant to AB 1X 26, the City Council of the City of Rohnert Park (the “City”) adopted a resolution electing to retain the housing assets and functions of the Commission, which includes the rights and obligations under the Security Agreement. D.Assignor requested the City’s written consent of its transfer of the Property, to a separate entity which consent was provided through an Assignment Agreement dated July 1, 1995. E.Assignor and City have entered into a First Amendment to the Security Agreement. F.Assignor currently has no ownership interest in the Property, which has been transferred to Assignee. G.Assignee provided evidence that the Assignee has the financial capacity to assume the rights and obligations of Assignor. H.Assignor desires to assign to Assignee, and Assignee desires to assume all of Assignor’s rights and obligations under the Security Agreement as amended by the First Amendment. Assignee intends to enter into a Second Amendment to the Security Agreement and Affordable Housing Covenant immediately after execution of this Assignment Agreement. 4875-3363-8354 v1 A G R E E M E N T NOW, THEREFORE, in consideration of the mutual terms, covenants and conditions contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Assignor and Assignee hereby agree as follows: 1. Assignment and Assumption. Assignor hereby assigns, transfers and grants to Assignee, and its successors and assigns, and Assignee, for itself and its successors and assignees, hereby accepts such assignment and assumes, all of Assignor's rights and obligations under the Security Agreement, as amended. 2. Security Agreement in Full Force and Effect. Except as specifically modified herein, all the terms, covenants, conditions and provisions of the Security Agreement, as amended, are hereby ratified and shall remain in full force and effect. 3. Counterparts. This Assignment Agreement may be executed in one or more counterparts, each of which shall be deemed to constitute an original, but all of which, when taken together, shall constitute one and the same instrument, with the same effect as if all of the parties to this Agreement had executed the same counterpart. [SIGNATURES FOLLOW ON THE FOLLOWING PAGE] 4875-3363-8354 v1 IN WITNESS WHEREOF, Assignor and Assignee have entered into this Agreement as of the date first above written. ASSIGNOR: BURBANK HOUSING DEVELOPMENT CORPORATION, a California nonprofit public benefit corporation By: Lawrance Florin, CEO & President ASSIGNEE: BURBANK HOUSING COMMUNITIES CORPORATION, a California nonprofit public benefit corporation By: Lawrance Florin, CEO & President The City of Rohnert Park hereby consents to this Assignment and Assumption Agreement. CITY: CITY OF ROHNERT PARK, AS SUCCESSOR AGENCY TO THE COMMUNITY DEVELOPMENT COMMISION OF THE CITY OF ROHNERT PARK By: Marcela Piedra, City Manager ATTEST: By: City Clerk APPROVED AS TO FORM: By: City Attorney 4875-3363-8354 v1 EXHIBIT A (Legal Description of the Property) THE PROPERTY REFERRED TO HEREIN IS LOCATED IN THE CITY OF ROHNERT PARK, COUNTY OF SONOMA, STATE OF CALIFORNIA AND IS DESCRIBED AS FOLLOWS: PARCEL 1 AS SHOWN ON THAT CERTAIN PARTCEL MAP NO. 151 FILED DECEMBER 2, 1994 IN BOOK 533 OF MAPS, PAGES 21 THROUGH 24, SONOMA COUNTY RECORDS. EXHIBIT B TO RESO 2024-XXX SECOND AMENDMENT TO SECURITY AGREEMENT AND FINANCING STATEMENT THIS SECOND AMENDMENT TO SECURITY AGREEMENT AND FINANCING STATEMENT, (the "Second Amendment") is dated and effective as of the _____ day of ___________________ 2024, by and between by BURBANK HOUSING COMMUNITIES CORPORATION, a California public benefit nonprofit corporation (hereinafter referred to as "Maker") and CITY OF ROHNERT PARK, AS SUCCESSOR AGENCY TO THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF ROHNERT PARK (hereinafter referee to as "City") and amends the Security Agreement and Financing Statement between the Parties, dated July 1, 1995. RECITALS A. The Maker and the City executed and entered into a Security Agreement and Financing Statement ("Security Agreement") dated July 1, 1995, in the amount of two hundred sixty thousand dollars ($260,000) with interest accruing at three percent and to be paid concurrently with principal on or before September 1, 2023 (the “Loan”). B. The Maker agreed to use the Loan funds toward the development of an affordable housing project (“Project”) located on property located at 120 Santa Alicia Drive, Rohnert Park, California, 94928, more particularly described in attached Exhibit A, incorporated herein by this reference (the "Property"). C. The Agreement had a term ending September 1, 2023, which was extended until September 1, 2024 through the First Amendment to the Security Agreement dated August 22, 2023. D. The Parties now desire to amend the Security Agreement, as amended, to extend the term of the Security Agreement for a period of fifteen (15) years to September 1, 2039. E. In consideration for the extension of the term of the Security Agreement, Maker has agreed to: (1) pay annual residual receipt payments from the Property to the City in order to reduce the debt obligation contained in the Security Agreement; and (2) enter into an Affordable Housing Covenant documenting Maker’s affordable housing obligations. NOW, THEREFORE, in consideration of the mutual terms, covenants and conditions contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Maker and City hereby agree as follows: 4883-1974-2674 v2 1.TERM. All references to the term of the Security Agreement and the date on which the principal and interest are due and payable are to be replaced with September 1, 2039. 2.RESIDUAL RECEIPTS PAYMENTS. 2.1 ANNUAL PAYMENT DATES; MATURITY DATE. Annual payments toward principal and interest accrued on the Loan shall be payable on a residual receipts basis in accordance with Section 2.2 below. Payments shall be credited first to any unpaid late charges and other costs and fees then due, then to accrued interest, and then to principal. The entire outstanding principal balance of the Loan, together with interest accrued thereon and all other sums accrued hereunder shall be payable in full on September 1, 2039. 2.2 ANNUAL PAYMENTS FROM SURPLUS CASH. By no later than June 30 of each year starting in 2026, Maker shall pay to City fifty percent (50%) of all Surplus Cash, as defined below, generated by the Project during the previous calendar year to reduce the indebtedness owed under the Security Agreement as amended. a.By not later than April 30 of each year starting in 2026, Maker shall provide to City Maker’s calculation of Surplus Cash for the previous calendar year, accompanied by such supporting documentation as City may reasonably request, including without limitation, an independent audit prepared for the Project by a certified public accountant in accordance with generally accepted accounting principles. The City shall have the right to inspect and audit Maker’s books and records concerning the calculation of Surplus Cash, and to object within sixty (60) days from receipt of the report. Failure to timely object shall be deemed acceptance of the report. If the City does object, the City shall specify the reasons for its disapproval and Maker shall have thirty (30) days from receipt of City’s objection to reconcile the disapproved item. If City elects to audit Maker's books and records and it is determined as a result of such audit that there has been a deficiency in a loan repayment to City then, subject to Maker’s right to provide a reconciliation of such deficiency to City within thirty (30) days following Maker’s receipt of the audit report, such deficiency, if not reconciled to the satisfaction of the City, will become immediately due and payable, with interest at ten percent (10%) or the maximum allowed by law, whichever is lower, accruing from the date the deficient amount should have been paid. In addition, if the audit determines that Surplus Cash payable to the City exceeds Maker’s calculation by the lesser of (a) five percent (5%) of the amount payable, or (b) Five Thousand Dollars ($5,000), then in addition to paying the deficiency with interest, Maker shall pay all of City's costs and expenses connected with the audit and review of Maker's accounts and records. b. “Surplus Cash” shall mean for each calendar year during the term hereof, the amount by which Gross Revenue (defined below) exceeds Annual Operating Expenses (defined below) for the Project. 4883-1974-2674 v2 c.“Gross Revenue” shall mean for each calendar year during the term hereof, all revenue, income, receipts and other consideration actually received by Maker from the operation and leasing of the Project. Gross Revenue shall include, but not be limited to: all rents, fees and charges paid by tenants; Section 8 payments or other rental subsidy payments received for the dwelling units; deposits forfeited by tenants; all cancellation fees, price index adjustments and any other rental adjustments to leases or rental agreements; the proceeds of business interruption or similar insurance; the proceeds of casualty insurance not required to be paid to the holders of Approved Senior Loans (defined below) (provided however, expenditure of such proceeds for repair or restoration of the Project shall be included within Annual Operating Expenses in the year of the expenditure, and with City’s written consent, proceeds of casualty insurance may be excluded from Gross Revenue until the year such proceeds will be expended for repair or restoration of the Project provided that Maker provides adequate assurance that such proceeds will be expended for such purposes); condemnation awards for a taking of part or all of the Property or the improvements located thereon for a temporary period; and the fair market value of any goods or services provided to Maker in consideration for the leasing or other use of any part of the Project. Gross Revenue shall include any release of funds from replacement and other reserve accounts to Maker other than for costs associated with the Project. Gross Revenue shall not include tenant security deposits, interest on reserve accounts, loan or grant proceeds, capital contributions, or similar advances. d. “Annual Operating Expenses” shall mean for each calendar year during term hereof, the following costs reasonably and actually incurred for the operation and maintenance of the Project to the extent that they are consistent with an annual independent audit performed by a certified public accountant using generally accepted accounting principles: property taxes and assessments; debt service currently due and payable on a non-optional basis (i.e., excluding debt service due from residual receipts or surplus cash of the Project) on loans which have been approved in writing by the City and which are secured by deeds of trust senior in priority to the Deed of Trust executed pursuant to Section 3 below (“Approved Senior Loans”); property management fees and reimbursements not to exceed the amount included in the approved budget; asset management fee in an the annual amount of $25,000 for 2025, with an annual increase of 5% thereafter ,; premiums for property damage and liability insurance; utility service costs not paid for directly or indirectly by tenants; maintenance and repair costs; fees for licenses and permits required for the operation of the Project; organizational costs (e.g., annual franchise tax payments) and costs associated with accounting, tax preparation and legal fees of Maker incurred in the ordinary course of business; expenses for security services; advertising and marketing costs; payment of deductibles in connection with casualty insurance claims not paid from reserves; the amount of uninsured losses actually replaced, repaired or restored and not paid from reserves; cash deposits into reserves for capital replacements in an amount no more than $900 per unit per year or such greater amount as reasonably required by the holder of an Approved Senior Loan or as required by a physical needs assessment prepared by a third-party selected or approved by City and prepared at Maker’s expense; any required annual loan and monitoring fees payable to the City or other public agency lenders; cash deposits into operating reserves in an amount reasonably approved by City or required by the holder of an Approved Senior 4883-1974-2674 v2 Loan or the limited partner of Maker, but only if the accumulated operating reserve does not exceed three (3) months’ projected Project operating expenses and debt service; services provided to Project residents as set forth in the approved annual budget; and other ordinary and reasonable operating expenses in accordance with the approved annual budget. Annual Operating Expenses shall also include payment for the provision of resident services. e.Exclusions from Annual Operating Expenses. For the purpose of calculating Surplus Cash, except to the extent expressly permitted, Annual Operating Expenses shall exclude the following: incentive management fees; developer fees and interest on any deferred developer fees; contributions to Project reserves (except as permitted above); debt service payments on any loan which is not an Approved Senior Loan, including without limitation, unsecured loans, sponsor loans, and loans secured by deeds of trust that are subordinate to the Deed of Trust; depreciation, amortization, depletion, and other non-cash expenses; expenses paid for with disbursements from any reserve account; capital expenditures unless approved in advance by City; distributions to partners; any amount paid to any general partner of Maker, or any entity controlling or under common control with the entities that control any general partner of Maker. Notwithstanding the foregoing limitation regarding payments to Maker and related parties, the following fees shall be included in Annual Operating Expenses, subject to applicable limitations set forth above, even if paid to Maker, an affiliate of Maker, or a partner of Maker: fees paid to a property management agent, resident services agent, or social services agent pursuant to a property management agreement or services agreement approved by City; and asset management fees. 3.AFFORDABLE HOUSING COVENANT AND DEED OF TRUST. Maker, or its successor, shall concurrently enter into (a) an Affordable Housing Covenant with the City, in a form approved by City, ensuring the long-term affordability of the units on the Property; and (b) a Deed of Trust securing obligations of the Security Agreement, as amended herein. The fully executed Affordable Housing Covenant and Deed of Trust securing this Security Agreement, as amended, shall be recorded in the Official Records of Sonoma County, California. 4.SEVERABILITY. Except as specifically modified herein, all the terms, covenants, conditions and provisions of the Security Agreement are hereby ratified and shall remain in full force and effect. 5.PAYMENT OF CITY EXPENSES. Concurrently with execution of this Second Amendment, Maker shall reimburse City for all of City’s costs, including legal fees, in preparing and reviewing the amended loan documents and advising City. City shall provide Maker with an invoice prior to execution and Maker shall pay the invoiced costs to City. 4883-1974-2674 v2 6.COUNTERPARTS. This Second Amendment may be executed in one or more counterparts, each of which shall be deemed to constitute an original, but all of which, when taken together, shall constitute one and the same instrument, with the same effect as if all of the parties to this Second Amendment had executed the same counterpart. IN WITNESS WHEREOF, Maker and the City have entered into this Second Amendment as of the date first above written. MAKER: BURBANK HOUSING COMMUNITIES CORPORATION, a California nonprofit public benefit corporation By: Lawrance Florin, CEO & President CITY: CITY OF ROHNERT PARK, AS SUCCESSOR AGENCY TO THE COMMUNITY DEVELOPMENT COMMISION OF THE CITY OF ROHNERT PARK By: Marcela Piedra, City Manager ATTEST: By: City Clerk APPROVED AS TO FORM: By: City Attorney 4883-1974-2674 v2 EXHIBIT A (Legal Description of the Property) THE PROPERTY REFERRED TO HEREIN IS LOCATED IN THE CITY OF ROHNERT PARK, COUNTY OF SONOMA, STATE OF CALIFORNIA AND IS DESCRIBED AS FOLLOWS: PARCEL 1 AS SHOWN ON THAT CERTAIN PARTCEL MAP NO. 151 FILED DECEMBER 2, 1994 IN BOOK 533 OF MAPS, PAGES 21 THROUGH 24, SONOMA COUNTY RECORDS. EXHIBIT C TO RESO 2024-067 4859-3380-0392 v2 1 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of Rohnert Park Attn: City Clerk 130 Avram Avenue Rohnert Park, CA 94928-2486 (Space Above This Line for Recorder’s Use Only) [Exempt from recording fee per Gov. Code § 27383] AFFORDABLE HOUSING COVENANT This Affordable Housing Covenant (the “Covenant”) is entered into as of this ________ day of __________, 2024 (“Effective Date”), by and between BURBANK HOUSING COMMUNITIES CORPORATION, a California public benefit nonprofit corporation (the “Owner”) and the CITY OF ROHNERT PARK, AS SUCCESSORY AGENCY TO THE COMMUNITY DEVELOPMENT COMMISION OF THE CITY OF ROHNERT PARK, a municipal corporation (the “City “). Recitals A. Owner is the owner of that certain real property in the City of Rohnert Park, County of Sonoma, located at 120 Santa Alicia Drive, Rohnert Park, California, 94928, and designated as Assessor’s Parcel Numbers 143-380-033, as more particularly described in Exhibit A attached hereto (the “Property”). B.The Owner and the City executed and entered into a Security Agreement and Financing Statement (“Original Agreement”) dated July 1, 1995, that set forth the terms under which City loaned Owner two hundred sixty thousand dollars ($260,000) with interest accruing and to be paid concurrently with principal on or before September 1, 2023. The Agreement sets forth Owner's obligations with respect to use of loan proceeds related to the development and operation of an affordable multi-family housing project (“Project”) consisting of 20 units. Pursuant to the terms of the Agreement, the Project includes eight (8) low-income affordable units and twelve (12) moderate-income units. C.The Agreement was amended on August 22, 2023 to extend the term of the Agreement twelve months (12) until September 1, 2024 (“First Amendment”). D.The City and Owner now wish to extend the term of the Agreement an additional fifteen (15) years, with a new expiration date of September 1, 2039, through a Second Amendment to Security Agreement and Financing Statement of even date herewith (“Second Amendment”), which requires Owner to document its obligations to provide affordable housing in this recorded Covenant. 4859-3380-0392 v2 2 Terms NOW, THEREFORE, in consideration of the mutual covenants and promises set forth herein, the City and Owner agree as follows: 1. Use of the Property. Owner hereby covenants and agrees that during the term set forth in Section 6 below, Owner shall use and operate the Property in compliance with all of the following: 1.1. Rent and Income Restrictions. As described below, the twenty (20) units in the Project shall be restricted for rental to households at the income level set forth herein (the “Affordable Units”). (a) Eight (8) Affordable Units shall be rent restricted and occupied by households whose income does not exceed eighty percent (80%) of the area median income as promulgated by the United States Department of Housing and Urban Development (“HUD”) in accordance with California Health & Safety Code Section 50093 (“Area Median Income”). (b) Twelve (12) Affordable Units shall be rent restricted and occupied by households whose income does not exceed one hundred and twenty percent (120%) of the Area Median Income. (c) In the event that HUD ceases promulgating such income determinations for a period of at least 18 months, the parties shall substitute a standard reasonably similar with respect to methods of calculation to that published by HUD in order to determine Area Median Income. (d) Affordable rent payable by the resident(s) of the Affordable Units shall be determined pursuant to Section 50053 of the California Health & Safety Code, less appropriate allowance for utilities. (e) The property management company for the Project shall be selected by Owner and approved by City in its reasonable discretion (the “Property Manager”). The Property Manager as of the Effective Date is BURBANK HOUSING MANAGEMENT CORPORATION, which has been approved by City. (f) Owner may not rent an Affordable Unit to a prospective tenant unless and until the Property Manager certifies the tenant for compliance with the requirements of this Covenant. Following initial rent-up, Owner shall submit to the City annually the reports listed in section 1.4. The Owner shall pay City a reasonable annual monitoring fee as may be adopted by resolution of the City Council from time to time and which is in force and effect for a class of affordable rental units similar to the Affordable Units. 4859-3380-0392 v2 3 (g)If, upon annual recertification of an Affordable Unit tenant’s household income, it is determined that the tenant’s household income has increased such that tenant’s income, adjusted for family size appropriate to the unit, exceeds 140% of the income limit (140% of 80% of AMI, or 140% of 120% of AMI, as applicable), Owner shall provide or cause the Property Manager to provide written notice to the tenant, who shall be required to vacate the Affordable Unit by the date that is six (6) months following the date of the notice or upon expiration of the tenant’s lease, whichever is later, except to the extent that applicable law or regulations governing the Affordable Unit would prohibit such termination of occupancy. (h)Occupancy of the Affordable Units shall be continuous, subject only to brief periods of vacancy as reasonable to maintain and affirmatively market the Affordable Units between periods of tenancy. 1.2. Marketing Program. Except as otherwise prohibited by applicable law, rule or regulation, Owner shall design a marketing program to specifically target the marketing of the Affordable Units to persons and households who live and/or work in Rohnert Park. If, despite its best efforts to lease all available Affordable Units to persons and households who live and/or work in Rohnert Park, one or more Affordable Units remain vacant, then Owner may market the availability to such units to persons and households outside of Rohnert Park. The marketing plan must be in a form and content reasonably acceptable to the City and include, among other things, the following: (a)A plan to market the Affordable Units to eligible persons and households who live and/or work in Rohnert Park; (b)Procedures for the rental of Affordable Units, including the creation of a waiting list, eligibility determination, income certification and annual recertification; and (c)Specific strategies to conduct culturally appropriate outreach and marketing, as outlined in the City’s Culturally Appropriate Outreach and Marketing Program. Promptly following City’s request made from time to time during the term, Owner shall provide a written update to City regarding the status of Owner’s marketing and leasing efforts. 1.3. Reporting Requirements. Annual reports must be submitted by Owner to City by March 31st each year. The reports, at a minimum, shall include the following information regarding the Affordable Units, tenants and Project: (a)The number of persons per Affordable Unit (b)Tenant’s name(s) (c)Initial occupancy date (d)Rent paid per month (e) Gross income per year and income category (f)Percent of rent paid in relation to income 4859-3380-0392 v2 4 (g)Sources of income (h)Method of verification of income (i)Address of Affordable Unit and unit type (j)Status of program, including any problems experienced during the reporting period (k)Financial audit of Project revenues and expenses, including reserve fund deposits (l)Current certificate of insurance, showing the City as an additional insured party, in a form and amount as reasonably approved by the City If requested by City, the annual report shall be accompanied by copies of the documents used in report preparation. City may from time to time during the term of this Covenant reasonably request additional or different information and Owner shall promptly supply such information in the reports required hereunder. City, at its discretion, may reasonably designate the form on which the information shall be supplied to the City. Upon request for examination by the City, Owner at any time during normal business hours shall make available to City, at the Project or another location within the City of Rohnert Park, all of Owner’s records with respect to all matters covered by this Covenant. Owner shall permit the City to audit, examine and make excerpts or transcripts from these records and Owner shall also permit the City to inspect the Property and the Project, with reasonable prior written notice and subject to rights of tenants. 1.4. Lease Provisions. Owner shall use a form of tenant lease (the “Tenant Lease”) approved by the City for the Affordable Units. City’s approval shall not be unreasonably withheld, conditioned or delayed. The Tenant Lease shall: (a)provide for termination of the lease for failure: (1) to provide any information required under this Covenant or reasonably requested by Owner to establish or recertify the tenant’s qualification, or the qualification of the tenant’s household, as an income eligible household in accordance with this Covenant, or (2) to qualify as an eligible household as a result of any material misrepresentation made by such tenant with respect to the household income computation or certification; (b)provide that the rent may not be raised more often than once every twelve (12) months and that at least sixty (60) days’ written notice shall be required prior to implementation of any rent increase of 10% or more; (c)prohibit subleasing of the Affordable Unit or any portion of the Affordable Unit or any spaces reserved for the use of the tenant; (d)contain nondiscrimination provisions; (e)provide tenant with a right and obligation to inform Owner of any need for maintenance or repair; (f)allow termination of the tenancy by Owner only for an increase in tenant’s household income above applicable qualifying income limits or for good 4859-3380-0392 v2 5 cause, including violation of the terms and conditions of the Tenant Lease, violations of applicable federal, state, or local law, or other good cause; and (g)be for an initial term of one year. 1.5. Restrictions on Rental. Owner shall not knowingly rent an Affordable Unit to any of the following: (a)Any officer, shareholder or employee of Owner or any Family Member (defined below) of any officer, shareholder or employee of Owner. (b)Any member of the Rohnert Park City Council or any member of any City Board or Commission. (c)Any City employee who exercises any function or responsibility in connection with the Property or who has, or whose Family Member (defined below) has, an economic interest in the Property pursuant to the provisions of the Political Reform Act, Government Code section 87100 et seq. (d)In this subsection 1.6., “Family Member” shall mean the spouse or child of the individual at issue or the individual’s or his or her spouse’s parent, grandparent, brother, sister, aunt, uncle, niece or nephew. 2. Restrictions on Transfer. 2.1. No voluntary or involuntary successor in interest of Owner shall acquire all or any portion of Owner’s interest in the or the Project except as expressly set forth herein. It is hereby expressly stipulated and agreed that any assignment, sale, transfer or other disposition of Owner’s interest in the Property or the Project, or any portion(s) thereof or interest(s) therein, in violation of this Section 2 shall be null, void and without effect and shall be ineffective to relieve Owner of its obligations under this Covenant. Upon any assignment, sale, transfer or other disposition of Owner’s interest in the Property and the Project that complies with the requirements of this Section 2, Owner shall be fully released from its obligations hereunder to the extent such obligations have been fully assumed in writing by the transferee pursuant to a recordable assignment and assumption agreement in a form reasonably acceptable to the City’s legal counsel. Owner shall request approval by written notice at least sixty (60) days prior to any proposed assignment, sale, transfer or other disposition of Owner’s interest in the Property or the Project or any portion(s) thereof or interest(s) therein. No later than the date the assignment becomes effective, Owner shall deliver to the City a conformed copy of the fully executed and recorded assignment and assumption agreement. 2.2. Owner shall not assign, sell or transfer Owner’s interest in the Property or the Project, or any portion(s) thereof, or interest(s) therein without the prior written approval of the City Manager, or his or her designee, which approval shall not be unreasonably withheld or delayed, and shall be granted upon City’s receipt of evidence acceptable to the City that the following conditions have been satisfied: 4859-3380-0392 v2 6 (a)Owner is not in default hereunder or the transferee agrees to cure any defaults of Owner to the reasonable satisfaction of the City; (b)The continued operation of the Project shall comply with the provisions of this Covenant; (c)Either (i) the transferee or its property manager has at least three years’ experience in the ownership, operation and management of similar size rental housing projects, and at least one year’s experience in the ownership, operation and management of rental housing projects containing below-market- rate units, without any record of material violations of discrimination restrictions or other state or federal laws or regulations or local governmental requirements applicable to such projects, or (ii) the transferee agrees to retain a property management firm with the experience and record described in subclause (i) above, or (iii) Owner or its management company will continue to manage the Project for at least one year following such transfer and during such period will provide training to the transferee and its manager in the responsibilities relating to the Affordable Units; (d)The transferee which is to acquire the Project does not have pending against it, and does not have a history of significant and material building code violations or complaints concerning the maintenance, upkeep, operation and regulatory agreement compliance of any of its projects as identified by any local, state or federal regulatory agencies; and (e)The proposed transferee enters into a written recordable assignment and assumption agreement in form and content reasonably satisfactory to City’s legal counsel, and, if requested by the City, an opinion of such purchaser or assignee’s counsel to the effect that this Covenant is a valid, binding and enforceable obligations of such purchaser or assignee, subject to bankruptcy and other standard limitations affecting creditor’s rights. 2.3. Notwithstanding any other provision of this Covenant to the contrary, City approval of an assignment, sale or transfer of Owner’s interest in the Property or the Project, or any portion thereof, shall not be required in connection with any of the following: (a)The rental, in the ordinary course of business, of the Affordable Units within the Project, provided such rental shall be in accordance with the terms of this Covenant; and (b)The transfer of the Project by foreclosure as deed in lieu of foreclosure. 3.Non-Discrimination; Compliance with Laws. Owner covenants for itself and all persons claiming under or through it, and this Covenant is made and accepted upon and subject to the condition that there shall be no discrimination against or segregation of any person or group of persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are 4859-3380-0392 v2 7 defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Property or the Project or any part thereof, nor shall Owner or any person claiming under or through Owner establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees in, of, or for the Property or the Project or any part thereof. Owner shall include such provision in all deeds, leases, contracts and other instruments executed by Owner, and shall enforce the same diligently and in good faith. Owner shall comply with all other applicable federal, state and local laws and regulations, including state and federal fair housing laws, in complying with the terms of this Covenant, including the development of the Project and the marketing and rental of the Affordable Units. 4. Maintenance and Management. Owner shall maintain in accordance with the Maintenance Standards (as hereinafter defined) the private improvements and public improvements and landscaping (collectively, the “Improvements”) to the property line of the Property. The Improvements shall include, but not be limited to, buildings, sidewalks, pedestrian lighting, landscaping, irrigation of landscaping, architectural elements identifying the Project and any and all other improvements on the Site and in the public right-of-way to the property line of the Property. To accomplish the maintenance, Owner shall either staff or contract with and hire licensed and qualified personnel to perform the maintenance work, including the provision of labor, equipment, materials, support facilities, and any and all other items necessary to comply with the requirements of this Covenant. The maintenance covenants and obligations set forth in this Section 4 shall remain in effect for the period of time specified in Section 6 below. To ensure compliance with this Section 4, the City, subject to rights of tenants occupying the Affordable Units, shall have the right to inspect the interior and exterior of the Project from time to time with reasonable prior written notice to the Owner. 4.1. The following standards (collectively, “Maintenance Standards”) shall be complied with by Owner and its maintenance staff, contractors and subcontractors but do not require extraordinary expenditures or reconstruction after condemnation or the occurrence of a substantial casualty event: (a) Landscape maintenance shall include: watering/irrigation; fertilization; mowing; edging; trimming of grass; tree and shrub pruning; trimming and shaping of trees and shrubs to maintain a healthy, natural appearance, safe road conditions and visibility, and irrigation coverage; replacement, as needed, of all plant materials; control of weeds in all planters, shrubs, lawns, ground covers, or other planted areas; and staking for support of trees. (b) Clean-up maintenance shall include: maintenance of all sidewalks, paths and other paved areas in clean and weed-free condition; maintenance of all such areas clear of dirt, mud, trash, debris or other matter which is unsafe or unsightly; removal of all trash, litter and other debris from improvements and 4859-3380-0392 v2 8 landscaping prior to mowing; clearance and cleaning of all areas maintained prior to the end of the day on which the maintenance operations are performed to ensure that all cuttings, weeds, leaves and other debris are properly disposed of by maintenance workers. (c)All maintenance work shall conform to all applicable federal and state Occupation Safety and Health Act standards and regulations for the performance of maintenance. (d)Any and all chemicals, unhealthful substances, and pesticides used in and during maintenance shall be applied in strict accordance with all governmental requirements. Precautionary measures shall be employed recognizing that all areas are open to public access. (e)The Improvements shall be maintained in conformance with the custom and practice generally applicable to comparable apartment rental projects located within Sonoma County, California. The public right-of-way improvements to the property line of the Property shall be maintained as required by this Section 4.1 in good condition and in accordance with the custom and practice generally applicable to public rights-of-way within the City of Rohnert Park. 4.2. If Owner does not maintain the Improvements on the Property to the property line of the Property in the manner set forth herein and in accordance with the Maintenance Standards, City may notify Owner in writing and specify the deficiencies and the actions required to be taken by Owner to cure the deficiencies. Upon notification of any maintenance deficiency, Owner shall have thirty (30) days within which to correct, remedy or cure the deficiency. If the written notification states that the problem is urgent and relates to the public health and safety, then Owner shall have twenty-four (24) hours to rectify the problem. If Owner does not correct any deficiencies within the time set forth above, City shall have the right, but not the obligations, to maintain such Improvements, or to contract for the correction of such deficiencies, after written notice to Owner as provided herein. 4.3. Owner agrees to reimburse the City within 60 days of the date of a notice identifying all charges and costs incurred by the City for any maintenance, repair and replacement work performed pursuant to City’s rights in Section 4.2 above. Until so paid, the City shall have a lien for the amount of such charges or costs. If Owner does not reimburse City within the 60-day time-frame set forth above, City may record a “Notice of Claim of Lien.” against the Property. Any lien in favor of the City created or claimed hereunder is expressly made subject and subordinate to any mortgage or deed of trust made in good faith and for value, recorded as of the date of the recordation of the Notice of Claim of Lien, and no such lien shall in any way defeat, invalidate, or impair the obligation or priority of any such mortgage or deed of trust, unless the mortgagee or beneficiary thereunder expressly subordinates its interest, of record, to such lien. No lien in favor of the City created or claimed hereunder shall in any way defeat, invalidate, or impair the obligation or priority of any lease, sublease or easement unless such instrument is expressly subordinated to such lien. 4859-3380-0392 v2 9 4.4. Nothing in this Section 4 shall be construed, either expressly or by implication, as indicating an intention of the City to exercise dominion or control over the Improvements. 5. No Impairment of Lien. No violation or breach of the covenants, conditions, restrictions, provisions or limitations contained in this Covenant shall defeat or render invalid or in any way impair the lien or charge of any mortgage, deed of trust or other financing or security instrument; provided, however, that any successor of Owner to the Property shall be bound by such covenants, conditions, restrictions, limitations and provisions, whether such successor’s title was acquired by foreclosure, deed in lieu of foreclosure, trustee’s sale or otherwise. 6. Duration. The covenants set forth herein shall remain in effect fifty-five (55) years from the Effective Date, or such longer period as may be mutually agreed by the parties. 7. Covenants Running with the Land. Subject to the restrictions on transfer set forth in Section 2 above, the covenants contained in this Covenant shall inure to the benefit of the City and its successors and assigns and shall be binding upon Owner and any successor in interest to Owner’s interest in the Property or the Project or any part thereof. The covenants shall run in favor of the City and its successors and assigns for the entire period during which such covenants shall be in force and effect, without regard to whether the City is or remains an owner of any land or interest therein to which such covenants relate. The City and its successors and assigns, in the event of any breach of any such covenants, shall have the right to exercise all of the rights and remedies, and to maintain any actions at law or suits in equity or other proper proceedings to enforce the curing of such breach. In the event of foreclosure or transfer by deed-in-lieu of all or any portion of the Property prior to completion of the Project, title to all or any portion of the Property shall be taken subject to this Covenant. Owner acknowledges that compliance with this Covenant is a land use requirement and a requirement of the Development Agreement, and that no event of foreclosure or trustee’s sale may remove these requirements from the Property. 8. No Subordination; Notice to Mortgagees. In no event shall this Covenant be subordinated to, or recorded subordinate to, any mortgage, deed of trust, or other security instrument or lien encumbering the Property, other than the lien for current unpaid taxes. If City receives a notice from the holder of any mortgage, deed of trust, security agreement, or other like security instrument encumbering all or any portion of the Property (a “Mortgagee”) requesting a copy of any notice of default given Owner hereunder and specifying the address for service thereof, then City agrees to use its diligent, good faith efforts to deliver to such Mortgagee, concurrently with service thereon to Owner, any notice of default given to Owner. Each Mortgagee shall have the right during the same period available to Owner to cure or remedy, or to commence to cure or remedy, the event of default claimed or the areas of noncompliance set forth in City’s notice of default. If a Mortgagee is required to obtain 4859-3380-0392 v2 10 possession in order to cure any default, the time to cure shall be tolled so long as the Mortgagee is attempting to obtain possession, including by appointment of a receiver or foreclosure, but in no event may this period exceed 120 days from the date the City delivers the notice of default to Owner. 9.Default. 9.1. Any failure by Owner to perform any term or provision of this Covenant shall constitute an “Event of Default” if Owner does not cure such failure within thirty (30) days following written notice of default from City or, if such failure is not of a nature which can be cured within such thirty (30) day period, the Owner does not within such thirty (30) day period commence substantial efforts to cure such failure, or thereafter does not within a reasonable time prosecute to completion with diligence and continuity the curing of such failure. Upon the occurrence of an Event of Default, the City shall be entitled to the following, in addition to all other remedies provided in Section 4 above or at law or in equity: (a)To compel specific performance by Owner of its obligations under this Covenant, it being recognized that the beneficiaries of Owner’s obligations hereunder cannot be adequately compensated by monetary damages in the event of Owner’s default. (b)To the extent permissible under laws and regulations protecting individual confidentiality, to have access to, to inspect, and to make copies and to audit all books and records of Owner pertaining to the Project. (c)To cause Owner to pay to the City, if the cure period has been exceeded and no cure has been achieved, as a penalty, an amount equal to: (i) all rent received by Owner with respect to an Affordable Unit(s), if such unit(s) are knowingly or grossly negligently rented to persons who do not comply with the requirements for such units set forth in this Covenant, and (ii) the amount by which the rent(s) charged to eligible person(s) or household(s) exceeds the Affordable Rent applicable to such Affordable Unit(s). (d)To conduct an evaluation of, and direct Owner with respect to, the management and operation of the Project. The reasonable expenses of the City of any consultants associated with such evaluation and direction shall be reimbursed by Owner. Owner shall follow all such directives, which may, at the option of the City, include replacing existing management with new management. In the event such default includes the failure of the Owner to make any required payment to the City in a timely manner, or the imminent closure of the Project, the City may at its sole discretion select the new management. The City may retain attorneys and consultants to assist in such evaluation and the Owner shall pay the reasonable fees and expenses of such attorneys and consultants and any other reasonable expenses incurred by the City in connection therewith. 9.2. Any notice of default given hereunder shall specify in detail the nature of the failure in performance which the City claims constitutes the Event of Default and the manner in 4859-3380-0392 v2 11 which such Event of Default may be satisfactorily cured in accordance with the terms and conditions of this Covenant. During the time periods herein specified for cure of a failure to perform, the Owner shall not be considered to be in default of this Covenant for any purposes. 9.3. No right, power, or remedy given to the City by the terms of this Covenant is intended to be exclusive of any other right, power, or remedy; and each and every such right, power, or remedy shall be cumulative and in addition to every other right, power, or remedy given to the City by the terms of this Covenant or by any statute or ordinance or otherwise against Owner and any other person. Any failure or delay by the City in asserting any of its rights or remedies as to any Event of Default shall not operate as a waiver of any Event of Default or of any such rights or remedies or deprive the City of its right to institute and maintain any actions or proceedings which it may deem necessary to protect, assert or enforce any such rights or remedies. 9.4. In addition to the rights and remedies set forth in Section 4 and this Section 9, in the event of a violation of this Covenant that constitutes a violation of the Rohnert Park Municipal Code, City has the right to bring a code enforcement action to correct the violation. 10. Notices. All notices required herein shall be sent by certified mail, return receipt requested and shall be effective as of the date received or the date delivery was refused as indicated on the return receipt as follows: To the Owner: Burbank Housing Communities Corporation Asset Management 1425 Corporate Center Parkway Santa Rosa, Ca 95407 To the City: City of Rohnert Park Development Services 130 Avram Avenue Rohnert Park, CA 94928 Either party may change its notice address from time to time by written notice to the other party. 11. Severability. In the event that any limitation, condition, restriction, covenant or provision in this Covenant is held to be invalid, void or unenforceable by any court of competent jurisdiction, the remaining portions of this Covenant shall, nevertheless, be and remain in full force and effect. 12. Entire Agreement. 4859-3380-0392 v2 12 This Covenant constitutes the entire agreement between the parties with respect to the subject matter hereof and no modification hereof shall be binding unless reduced to writing and signed by the parties hereto. 13.Applicable Law. This Covenant shall be governed by the laws of the State of California without reference to its choice of law provisions. 14.Indemnification. Owner shall indemnify, defend, and hold harmless City and its elected officials, officers, employees and agents in their official capacity (hereinafter collectively referred to as “Indemnitees”), and any of them, from and against all loss, all risk of loss and all damage (including reasonable attorneys’ fees and costs and other expense) sustained or incurred because of or by reason of any and all claims, demands, suits, actions, judgments and damages of any and every kind and by whomever and whenever made or obtained, allegedly caused by, arising out of or relating in any manner to development or operation of the Project, the Affordable Units, or Owner’s performance or non-performance under this Covenant, except to the extent arising from the gross negligence or willful misconduct of the Indemnitees. The provisions of this Section shall survive expiration or other termination of this Covenant. 15.Estoppel Certificate. Owner or its lender may, at any time, and from time to time, deliver written notice to City requesting the City to certify in writing that, to the knowledge of the City (a) this Covenant is in full force and effect and is a binding obligation of the parties, (b) this Covenant has not been amended or modified or, if so amended or modified, identifying the amendments or modifications, and (c) Owner is not in default in the performance of its obligations under this Covenant, or if in default, to describe the nature of any defaults. Owner and City acknowledge that a certificate hereunder may be relied upon by the Owner and Mortgagees. The City Manager shall be authorized to execute any certificate requested by Owner in a form reasonably approved by the City Attorney. Owner shall pay all costs borne by City in connection with its review of any proposed estoppel certificate. 16. Recording of Covenant. This Covenant shall be recorded against the Property in the Official Records of the County of Sonoma. 17. Interpretation. Each party to this Covenant has had an opportunity to review the Covenant, confer with legal counsel regarding the meaning of the Covenant, and negotiate revisions to the Covenant. Accordingly, neither party shall rely upon Civil Code Section 1654 in order to interpret any uncertainty in the meaning of this Covenant. 18. Counterparts. 4859-3380-0392 v2 13 This Covenant may be executed in counterparts. 4859-3380-0392 v2 14 IN WITNESS WHEREOF, City and Owner have caused this Covenant to be executed on their behalf by their respective officers thereunto duly authorized. “OWNER”: BURBANK HOUSING COMMUNITIES CORPORATION By: ____________________________________ Lawrance Florin, Chief Executive Officer/President “CITY”: CITY OF ROHNERT PARK By: Marcela Piedra, City Manager Authorized by City Council Resolution 2019-066, adopted on June 11, 2019. ATTEST: Sylvia Lopez Cuevas, City Clerk APPROVED AS TO FORM: Michelle Marchetta Kenyon, City Attorney 4859-3380-0392 v2 15 ACKNOWLEDGEMENT STATE OF CALIFORNIA : SS COUNTY OF _____________________________ : On __________________ before me, ____________________________ personally appeared (insert name and title of the officer) __________________________________________________________________________, 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. WITNESS my hand and official seal. Signature _________________________ A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. EXHIBIT C TO RESO 2024-067 4859-3380-0392 v2 EXHIBIT A Legal Description of the Property For APN/Parcel ID(s): 143-380-033 The land referred to is situated in the County of Sonoma, City of Rohnert Park, State of California, and is described as follows: PARCEL ONE: Parcel 1 as shown on that certain Parcel Map No. 151 filed December 2, 1994 in Book 533 of Maps, Pages 21 through 24, Sonoma County Records. PARCEL TWO: A private storm drain easement for the construction, maintenance and replacement of underground storm drain pipes and supporting inlet/outfall structures for the benefit of the owners of "Parcel 1" as shown on "City of Rohnert Park Parcel Map No. 151" recorded in Book 533 of Maps at Pages 21-24, Sonoma County Records; said easement being ten (10) feet (3.048 meters) in width over a portion of the lands of the Presbytery of the Redwoods, Inc., as described by Deed recorded in Book 1774 of Official Records; said easement being more particularly described as follows: Beginning at a point that bears South 00° 05' 58" East, 0.14 feet (0.043 meters) and South 89° 54' 02" West 0.48 feet (0.146 meters) from a 1/2" iron pipe tagged LS 2757, said point being the Southwesterly corner of "Parcel 2" as shown on "City of Rohnert Park Parcel Map No. 151" as said Map is recorded in Book 533 of Maps at Pages 21-24, Sonoma County Records; thence from said point of beginning and along the Southerly line of said "Parcel 2", South 89° 02' 02" East, 10.00 feet (3.048 meters); thence leaving said Southerly line and proceeding parallel with and 10.00 feet (3.48 meters) from, measured at right angles to the Westerly line of said "Parcel 2", North 00° 05' 58" East, 236.97 feet (72.227 meters), to a point in the Northerly line of said "Parcel 2"; thence along the Northerly and Westerly line of said "Parcel 2", North 73° 32' 04" West, 10.43 feet (3.180 meters), to a 3/4" iron pipe tagged LS 5087; South 00° 05' 58" East, 239.94 feet (73.134 meters), to the point of beginning. APN: 143-380-033 PARCEL ONE: Parcel 1 as shown on that certain Parcel Map No. 151 filed December 2, 1994 in Book 533 of Maps, Pages 21 through 24, Sonoma County Records. PARCEL TWO: 4859-3380-0392 v2 A private storm drain easement for the construction, maintenance and replacement of underground storm drain pipes and supporting inlet/outfall structures for the benefit of the owners of "Parcel 1" as shown on "City of Rohnert Park Parcel Map No. 151" recorded in Book 533 of Maps at Pages 21-24, Sonoma County Records; said easement being ten (10) feet (3.048 meters) in width over a portion of the lands of the Presbytery of the Redwoods, Inc., as described by Deed recorded in Book 1774 of Official Records; said easement being more particularly described as follows: Beginning at a point that bears South 00° 05' 58" East, 0.14 feet (0.043 meters) and South 89° 54' 02" West 0.48 feet (0.146 meters) from a 1/2" iron pipe tagged LS 2757, said point being the Southwesterly corner of "Parcel 2" as shown on "City of Rohnert Park Parcel Map No. 151" as said Map is recorded in Book 533 of Maps at Pages 21-24, Sonoma County Records; thence from said point of beginning and along the Southerly line of said "Parcel 2", South 89° 02' 02" East, 10.00 feet (3.048 meters); thence leaving said Southerly line and proceeding parallel with and 10.00 feet (3.48 meters) from, measured at right angles to the Westerly line of said "Parcel 2", North 00° 05' 58" East, 236.97 feet (72.227 meters), to a point in the Northerly line of said "Parcel 2"; thence along the Northerly and Westerly line of said "Parcel 2", North 73° 32' 04" West, 10.43 feet (3.180 meters), to a 3/4" iron pipe tagged LS 5087; South 00° 05' 58" East, 239.94 feet (73.134 meters), to the point of beginning. APN: 143-380-033