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HomeMy WebLinkAboutMINUTES - 03191991 - 2.5 THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA Adopted this Order on March 19, 1991, by the following vote: AYES: Supervisors Schroeder, McPeak, Torlakson and Powers NOES: Supervisor Fanden ABSENT: None ABSTAIN: None ----------------------------------------------------------------- ----------------------------------------------------------------- SUBJECT: ESCLUSIVE RIGRT TO NEGOTIATE WITH REYNOLDS AND BROWN FOR DEVELOPMENT OF AIRPORT PROPERTY AT BUCHANAN FIELD AIRPORT On March 5, 1991, the Board ordered County staff to Negotiate with Reynolds and Brown in an attempt to develop an exclusive right to negotiate a ground lease for the development of a major retail project on the 13 . 3 acre site (formerly known as the Airport Center site) at Buchanan Field Airport. On March 19, 1991, Mr. Jon Reynolds and County Administrator, Phil Batchelor, appeared before the Board and indicated that the Exclusive Right to Negotiate (ERN) on file with the Board's Clerk is the result of those negotiations . Mr. Batchelor stated that the ERN establishes the conditions under which negotiations for the execution of a Ground Lease may proceed for a one year period. The ERN requires Reynolds and Brown to pay periodic negotiating fees to the County (in a maximum amount of $475, 000 if it takes the entire year to negotiate the Lease) during the term of the ERN. It also requires Reynolds and Brown to pay the County a $650, 000 lease consideration fee at the time the Ground Lease is executed. Finally, the ERN provides for a settlement of all former claims between Reynolds and Brown and the County regarding the property and requires Reynolds and Brown to provide the County with a quitclaim deed releasing any interest it may have in the 13 . 3 acre site. Board members commented on the report, asked various questions concerning the terms of the ERN and made the following order: IT IS BY THE BOARD ORDERED AS FOLLOWS: APPROVE the terms and conditions contained in the filed Exclusive Right to Negotiate (ERN) with Reynolds and Brown, Inc. , effective March 19 , 1991 . AUTHORIZE the County Administrator and County Counsel to finalize the ERN and AUTHORIZE the County Administrator to execute the said ERN. FIND that execution of the ERN is exempt from CEQA under Section 15061 of the State CEQA Guidelines on the grounds that it can be seen with certainty that there is no possibility that execution of the ERN may have a significant effect on the environment. I hereby certify that this Is a true and correct COPY of CC . County Administrator an action taken and entered on the minutes of the County Counsel Board of Supervisors on the date shown. Public Works Director ATTESTED: `z -''tri 1,2 9 Manager of Airports PHIL BATCHELOR,clerk of the Board Director of General Services of Supervisors and County AdMInWn0f Lease Manager , 7�� ft"Director of Community Development 9 ' Deputy Director - Redevelopment a:\bdorder.r&b EXCLUSIVE RIGHT TO NEGOTIATE BETWEEN CONTRA COSTA COUNTY AND REYNOLDS & BROWN INC. REGARDING THE DEVELOPMENT OF AIRPORT PROPERTY BUCHANAN FIELD, CALIFORNIA Effective March 19, 1991, (referred to herein as "the effective date" or the date of "execution"of the ERN) the County of Contra Costa (County) and Reynolds & Brown, Inc. ( "R&B" or "the Developer" ) agree to enter into exclusive negotiations for the long-term Ground Lease of a 13 . 3-acre site known commonly as -the Airport Center site (Property) for the development of a major retail project thereon. This Exclusive Right to Negotiate (ERN) has been prepared to facilitate the negotiation process , resolve prior misunderstandings and assure that both parties proceed with negotiations from the same premise. The parties hereby agree to the following basic terms and conditions under which they will negotiate a Ground Lease, and to deal with one another in utmost good faith and fair dealing. 1. Exclusive Negotiating Rights 1.1 Term and General Purpose of Exclusive Right to Negotiate The ERN shall have an initial term of 45 days, with the right of the Developer to extend it four times: ( 1 ) a first extension of 45 days , ( 2 ) a second extension of 90 days, ( 3 ) a third extension of 90 days and (4 ) a final extension of 90 days , in accordance with provisions set forth below as to the conditions and payment for such extensions . The purpose of the ERN is to satisfy all conditions precedent to the actual execution of the Ground Lease and the concurrent commencement of construction of the approved project on the Property. 1 .2 Relation of Exclusive Right to Negotiate to Option Claims Execution of this ERN, by the County and R&B, shall be considered a settlement of disputes between R&B and County, including but not limited to, any and all disputes concerning whatever rights R&B believes it has under certain prior option and development agreements negotiated with respect to the same property in 1985 . There will also be a settlement of any claims the County may have against R&B. Execution of the ERN by both parties shall constitute their agreement that all prior agreements ( including but not 1 limited to the option agreement recorded on or about March 5 , 1986 the associated Development Agreement, and all related exhibits or attachments ) are null and void and there exists no other outstanding- claims between the parties with respect to any rights to develop the Property or receive revenue therefrom. Simultaneously with the execution- of this ERN, R&B shall provide County with a quitclaim deed releasing any interest it may have in the property. The obligations contained in this section shall survive termination of this agreement for whatever reason. 2. Negotiating Fee 2.1 Basic Negotiating Fee Upon execution of the ERN, R&B will pay the County the sum of $50,000 as a non-refundable negotiating fee. This sum is payment in consideration of (a) settlement of all prior outstanding claims between the parties; (b) the County's withholding the Property from alternative uses (other than by Budget Car Rental) for the initial 45-day period of the ERN; and (c) the granting to R&B of this ERN. If a first extension of negotiations is not requested in the manner specified below, this ERN shall terminate 45 days after the effective date without further action by either party. 2.2 First Extension of Negotiations R&B shall have the right to request a 45-day First Extension of Negotiations, by delivering to the County a written request for said extension and by paying to the County a non-refundable negotiating fee in the sum of $25,000, no later than 45 days after the effective date of the ERN. This sum is payment in consideration of the County's withholding the property from alternative uses (other than by Budget Car Rental ) and extending this ERN to R&B for the additional 45 day period. If a First Extension of Negotiations is requested in the manner specified herein, but a second extension is not requested in the manner specified below, this ERN shall terminate upon execution of a Ground Lease by both parties or 90 days after the effective date of the ERN, whichever shall first occur. 2.3 Second Extension of Negotiations If R&B is unable to satisfy all of the conditions specified for the execution of the Ground Lease set forth below, within 90 days of the effective date of the ERN, but R&B is in compliance with the negotiating schedule, set forth in Section 7 of this agreement, R&B may request a 90 day Second Extension of Negotiations by delivering to County a written request for said extension and by paying to the County a non-refundable negotiating fee in the sum of $150,000 no later than 90 days after the effective date of the ERN . This sum is payment in consideration of the County' s withholding the property from alternative uses (other than by 2 Budget Car Rental ) and extending this ERN to R&B for the additional 90-day period. If a Second Extension of Negotiations is requested in the manner specified herein, but a third extension is not requested in the manner specified below, this ERN shall terminate upon execution of a Ground Lease by both parties or 180 days after the effective date of the ERN, without further action by either party, whichever shall first occur. 2.4 Third Extension of Negotiations If R&B is unable to satisfy all of the conditions specified for execution of the Ground Lease set forth below, within 180 days after the effective date of the ERN, but R&B is in compliance with the negotiating schedule set forth in Section 7 of this agreement, R&B may request a 90-day Third Extension of Negotiations by delivering to County a written request for said extension and by paying to the County a non-refundable negotiating fee of $125,000 no later than 180 days after the effective date of the ERN. This sum is payment in consideration of the County' s withholding the property from alternative uses (other than by Budget Car Rental) and extending this ERN to R&B for the additional 90-day period. If a Third Extension of Negotiations is requested in the manner specified herein, but a Fourth and Final Extension is not requested in the manner specified below, this ERN shall terminate upon the execution of a Ground Lease by both parties or 270 days after the effective date of the ERN, without further action by either party, whichever shall first occur. 2 .5 Fourth and Final Extension of Negotiations If R&B is unable to satisfy the all of conditions specified for execution of the Ground Lease set forth below, within 270 days after the effective date of the ERN, but R&B is in all other respects in compliance with the negotiating schedule, R&B may request a 90-day Final Extension of Negotiations by delivering to the County a written request for said extension and paying to the County a non-refundable negotiating fee in the sum of $125,000, no later than 270 days after the effective date of the ERN. This sum is payment in consideration of the County' s withholding of the property from alternative uses (other than by Budget Car Rental ) and extending this ERN to R&B for the additional 90 day period . If a Final Extension of Negotiations is requested, this ERN shall terminate upon execution of a Ground Lease or 360 days after the effective date without further action by either party, whichever shall first occur. 3 2.6 Forfeiture of Negotiating Fee 2.6(a) Forfeiture Upon Termination of Negotiations Except as otherwise specifically provided by the terms of this agreement, in the event that negotiations are terminated due to expiration of the initial or any extended term of this agreement, during which time the parties, acting in the utmost good faith, have been unable to reach agreement or because R&B cannot fulfill the conditions precedent to either the execution of the Ground Lease, or the extensions to the ERN, the ERN will automatically terminate and the full amount of the fees paid will be forfeited with no refund or credit against any future sums or agreements . 2.6(b) Legal Impediment to Execution of Ground Lease 2.6(b) (1) Election by Developer Upon Completion of Penultimate Condition Precedent If R&B has fulfilled all of the conditions precedent to the execution of the Ground Lease, that it reasonably can be expected to fulfill, other than securing the issuance of a building permit, but is unable to obtain the issuance of a. building permit due to a legal impediment imposed by a party other than R&B, its agents or employees, R&B shall have the right to make the following election: ( 1) R&B may elect to terminate this ERN and have all negotiating fees, in excess of $75,000, returned to them; or ( 2 ) R&B may elect to extend the term of this ERN, at no cost to R&B, for a three periods, not to exceed one year each, from the date the legal impediment was imposed or the date the "penultimate condition precedent" (i.e. , the last condition precedent to the execution of the Ground Lease other than the issuance of a building permit) was fulfilled, whichever shall last occur. If the legal impediment is removed earlier than one year from the applicable date, the extension provided by this Section shall terminate immediately and R&B shall be required to secure the issuance of a building permit within 30 days. R&B must communicate its intention to elect one of the remedies provided by this section, to County in, writing, no later than 90 days after the date the impediment was imposed or the date the penultimate condition was completed, whichever shall last occur. A failure to communicate an election to the County, in writing, within the time required will result in automatic election under this Section to extend the term for the initial one year period. If the legal impediment lasts for more than one year, R&B must give the County of its notice to renew the election each year. 2.4(b) (2) Election by County If the Developer elects to extend the term of this ERN for a maximum of three one year periods , as provided by this section, and 4 the Ground Lease has not been executed, the ERN shall terminate immediately upon expiration of the third one-year period, regardless of whether or not the legal impediment has been removed, , without further action by either party, unless the County, in its sole discretion, elects to extend the term of the ERN for an additional period. 3. Description of Proposed Project 3.1 Scale and Types of Land Uses The initial project, as originally developed, will consist of a membership warehouse retailer with ancillary support retailers or a discount retail center with multiple anchor tenants and ancillary support retailers . The project shall not exceed 220, 000 square feet of gross leasable area. The County will consider project alternatives so long as County objectives with respect to aggregate economic benefits are achieved. 3.2 Quality and Compliance with All Government Standards The project shall be built in a first-quality manner for a project of its type, and shall comply with all County building, planning, and zoning regulations incorporated in the most recent applicable general plan amendment adopted by the County. Except as specifically provided herein, nothing in this agreement shall in any way restrict the County, functioning as a landlord, from exerting its judgment with respect to the acceptability of the design, layout, landscaping and other building design and site planning issues of the project. The County is in no way restricting its rights to object, control or otherwise modify this project in its capacity as planning regulator. 4 . Designated Initial Project Description The County is entering into this ERN with Reynolds & Brown based explicitly on this representation with respect to types of anchor tenant(s ) . The anchor tenant(s) to be initially included in the project, together with the project, together with the categories, range of size and typical lease terms shall be substantially as follows : 4 . 1 Single Anchor Project Alternative A single aggregate area not less than 135, 000 and not more than 220 ,000 square feet GLA: 4. 1(a) Warehouse Retail Use Merchandising Category: Discount membership or non- membership warehouse such as 5 PACE, Price Club Home Depot, Cost Co . , or PharMar. Premises : Minimum rental area of 80, 000 square feet GLA. Rental Term: Minimum lease term of 20 years, with provisions concerning recapture. 4.1(b) Balance of Proposed Tenancy R & B has specified the following general allocations of proposed tenancy subject to final approval of a site plan and revisions acceptable to the County: 4.1(b) (1) One additional junior anchor of approximately 15, 000 to 20 , 000 square feet of GLA such as BizMart, Walgreens, Soft Warehouse, Drug Barn and Sport Mart; or pad shops totalling 28, 000 square feet of GLA in 2 to 3 separate pad areas . 4 .1(b) (2) Fast food operation with drive through in a separate pad area . 4 .1(b) (3) Interim auto uses to fill the area comprising 4 . 1 (b) ( 1 ) and ( 2) to maximize County' s lease and percentage income with lease term not to exceed 5 years . 4.2 Multi-Anchor Project Alternative Off Price Discount Retail Center: A single aggregate area not less than 150 , 000 and not more than 220, 000 square feet GLA: 4 .2(a) Major Anchor - Off Price/Discount Retail Product Sales Merchandising Category: Off price/Discount retail sale of office products , machine, furniture, business supplies, sporting goods , apparel , linen and bedding and auto parts , grocery and related items which may include pharmacy , delicatessen and bakery, such 6 as Soft Warehouse, BizMart, Strouds, Bed Bath & Beyond, Auto Giant and Pep Boys, Pak N Save, Food 4 Less, Better Buy, Cost Less Foods . Premises: Minimum rental area of 50, 000 square feet of GLA. Rental Term: 20 year minimum with provisions concerning recapture. 4.2(b) Secondary Anchors - Off Price/Discount p0tail PmdrIt Sales Merchandising Category: Off price/Discount retail sale of office products, machine, furniture, business supplies , sporting goods, apparel, linen and bedding and auto parts, grocery and related items which may include pharmacy , delicatessen and bakery, such as Soft Warehouse, BizMart, Strouds, Bed Bath & Beyond, Auto Giant and Pep Boys, Pak N Save, Food 4 Less, Better Buy, Cost Less Foods . Premises : Minimum rental area of 15, 000 square feet of GLA. Rental Term: 10 years minimum -term with recapture . 4.2(c) Additional Allocations of Property R & B has specified the following general allocations of proposed tenancy subject to final approval of its site plan and possible revisions acceptable to the County. 4 .2(c) (1) Additional Junior Anchors : One or more Junior anchors or In Line Shops: total not to 7 exceed 36, 000 square feet of GLA. 4.2(c) (2) Pad Shops : Total of at least 13,000 square feet of GLA in two separate pad areas . 4.2(c) (3) Fast Food with drive through window, located on one of the pad area listed in 4 . 2 (c) 2 . 4.2(c) (4) Interim Auto Uses to cover areas 4 . 2(c) 2 & 3 should it benefit County's rental income and percentage rent with lease term not to exceed 5 years . 5. Ground Lease Terms 5.1 Unsubordinated Ground Lease The underlying fee title of the County in the demised lands shall not be subordinated to any Leasehold Mortgage, deed of trust or other 'encumbrance placed upon the demised lands by the Developer. Portions of the rentals to be received by County will be subordinated as provided in this agreement . The County will have recourse to the lessee for performance under the lease only until the project is substantially completed and substantially operational . 5.2 Term of Ground Lease This Ground Lease shall have an initial term of 50 years commencing upon the date of execution of the Ground Lease. At such time as the County is legally able to do, County will grant one option to extend the term for a period of 5 years . The fee for extension will be 50% of the total rent paid in the year immediately preceding the year of exercise of option. The option cannot be exercised until one year after the commencement of Minimum Base Rent. R&B shall save, protect, indemnify and hold harmless the' County from and against any claim, cost, loss or liability resulting or arising from the invalidation of any portion of the lease term in excess of 50 years . 5.3 Minimum Base Rent Upon completion of the project, Minimum Base Rent shall be the sum of $45, 000 per month, payable monthly. The County will agree to subordinate one-third of the Minimum Base Rent to such amounts as may be necessary to provide debt service payments to any permitted initial construction and initial permanent mortgage; provided, however, that any unpaid rents shall not be waived but, rather, shall be a claim, together with interest thereon at the County' s cost of funds, on net proceeds from any subsequent sale or refinancing. In addition, at the time of any refinancing the unsubordinated portion of Minimum Base Rent shall be increased to two-thirds of the total Minimum Base Rent, as revised per Section 5 . 5, then in effect at the time of any refinancing. 5.4 Construction Period Rent Until construction is completed, but in no event for a period longer than 24 months dating from the date of execution of the Ground Lease, or occupancy of 75% of the project (or occupancy of the warehouse retail use described in Section 4 . 1 above) , whichever shall first occur, minimum rent shall be 25% of Minimum Base Rent. All rent during this period shall be unsubordinated. 5.5 Reduced Rent During Initial Operations For a period of 60 months from the date Construction Rent is terminated, minimum rent shall be 50% of Minimum Base Rent. All rent during this period shall be unsubordinated. 5.6 Adjustment of Minimum Base Rent On the tenth anniversary following the termination of Construction Period Rent, and each ten years thereafter, the minimum rent shall be adjusted to equal the higher of : ( 1) the prior minimum rent; or (2) an amount equal to seventy-five percent (75% ) of the average of all rent in all forms paid by the Developer to the County during each of the preceding five years. If the effect of the adjustment as calculated would be to cause the new adjusted Minimum Base Rent for the current year to exceed the total rent (Minimum Base Rent and Percentage Rent) paid in the calendar year immediately prior to adjustment, then the adjustment shall be postponed until such time as the new adjusted Minimum Base Rent is less than the total rent paid during the preceding year. This delay in adjustment shall not, however, delay future adjustments which shall occur at their initially scheduled dates . 5.7 Percentage Rent Percentage rent will be paid, in addition to minimum rent, in an amount equal to 25% of the increase in gross rents received by the Developer over those rents during the specified Base Year. The Base Year shall be the third full calendar year of operations of the Center, for which an audited statement of rents shall be provided . When minimum rent is adjusted, the base to which percentage rent is computed shall also be adjusted so that there is no "double dipping. " The specific formula will be one in which the base for the calculation of percentage rent is adjusted to a number such that the total rent under the prior formula will equal the total rent under the new formula. For the purpose of computing Percentage Rents , gross rents shall be reduced by an amount 9 necessary to amortize, over its normal useful life, any major capital cost associated with refurbishment, rehabilitation, and redevelopment provided, however, that such capital expenditures shall be: (a) limited to costs required for replacement of capital items only after the expiration of its normal useful life; and ( 2 ) that no capital costs incurred within ten years of the opening of the center shall eligible for such treatment. 5. 8 Lease Consideration Fee Upon execution of the Ground Lease R&B shall pay to the County a lease consideration fee of $650,000. This fee is in addition to other fees that will be required by the lease, and shall not be offset- against or credited to any other fee or monies owed under the lease (such as the traffic mitigation fee, which the parties agree will not exceed 2 . 05 per square foot GLA) . 5.9 Other Provisions Nothing in this document should be construed as acceptance by the County of any terms of the previously negotiated Ground Lease or Development Agreement. The County believes that both the passage of time and the change in project scope require the drafting of an entirely new document in part to reflect new language and provisions in public/private ground leases that protect the interests of the public entity. County will deliver a copy of the draft ground lease prepared by Todd Anson to the outside Counsel selected by County and will instruct outside Counsel to consult with Mr. Anson weekly and to explain to Mr. Anson, at his request, any change in specified material terms . 6 . Formal Scope of Development 6 . 1 Submission Requirements R&B will provide to the County, acting in its governmental capacity, documents relating to the Formal Scope of Development ( sufficient for inclusion in a Lease Development Agreement (LDA) in accordance with the schedule to be set forth in a Schedule of Performance. Said documents shall be sufficient to allow the County to perform a FAR Part 77 Study and TERPS analysis, and shall include, but are not necessarily limited to, the following: 6 .1(a) A precise site plan showing the footprint of the structures, their dimensions , and distances from property lines . The site plan must also provide the following documentation and calculations prepared by a civil engineer: ( 1 ) The location of the ALUC structural height limit imaginary planes (transitional , horizontal , Runway 32L approach) ; ( 2 ) Finished ground elevation( s ) ; 10 ( 3 ) The height (or preferably altitude of highest point) of all structures including any flagpoles or street lamps ; (4 ) A profile of site plan showing ground elevation and structure heights . The profile should also identify the smallest clearance between the structure and imaginary surface (structural height limit) based on Federal Aviation Administration (FAA) standards as follows : - Transitional ( 7 : 1 gradient) - Horizontal ( 173 feet MSL) - Approach for Runway 32L ( 20 : 1 gradient) ; ( 5) The location of the (minor) portion of the property within the safety zone. 6.1(b) Outline Building specifications . 6.1(c) Schematic Elevations . 6 .1(d) Circulation plan details . 6.1(e) Lighting and landscaping plan (review for aesthetic and potential effect on airport operations . 6 .1(f) Signage plan. 6 .1(g) The maximum population count (employees, customers, etc. ) that would be present on the site on a regular basis . 6.1(h) Other considerations : The following conditions are generic airport compatibility concerns that will be attached to any project approval for this site. At least 30 days prior to the approval of any construction plans and issuance of building permits, the applicant shall submit the following documents for the review and approval of the Zoning Administrator and any other entities whose approval is necessary (e .g. , City, FAA, etc) . A separate set of documents shall be concurrently delivered to the Manager of Airports to provide him the opportunity to comment on the plans : ( 1 ) A site plan( s ) showing County (ALUC) structural height limit planes and the Runway 32R Safety Zone . 11 ( 2 ) Description of any temporary structures (e.g. , construction cranes , antennae) which might penetrate any adopted height limit surface. Use of such a temporary structure shall be restricted by the Zoning Administrator to avoid significant hazard to aviation traffic (e.g. , lighting, time limits) . ( 3 ) Proposed exterior lighting plan. The plan shall be reviewed for lighting that might interfere with airport operations . (4 ) Landscape plan. The purpose of the review of the landscape plan is to assure that tree selection will not result in eventual penetration of the structural height limits. 6 .2 Compliance with Environmental Regulation Developer will prepare, in the time set forth in the Schedule of Performance, a Preliminary Scope of Development sufficient for the County, acting in its governmental capacity, to establish its CEQA and project review criteria. Developer will comply, as specified in both the Schedule of Performance and subsequent environmental documentation, with all submission requirements associated with any additional environmental documentation. Environmental issues/mitigations have been catalogued and included as Exhibit A. The listing in Exhibit A is not necessarily exhaustive of issues and mitigations, however, to the best knowledge of County staff ' as of the date the ERN is executed, Exhibit A contains the primary mitigation measures known to staff to date. 6 .3 Relation to Lease Documentation and Commencement The Formal Scope of Development, together with the associated exhibits, will become an exhibit to the Lease Development Agreement (LDA) . Following approval of the LDA by the Board of Supervisors, the County' s rights, as landlord, pursuant to Section 3.2 of this agreement, shall be limited to enforcing consistency with the design and the Formal Scope of Development, contained in the LDA. Any material change in the Formal Scope of Development by R&B, once the LDA has been approved by R&B and the County pursuant to Section 7 . 1 ( 1) of this agreement, will constitute grounds for termination of negotiations by County. If the County (acting in its regulatory capacity) requires a material change in the Formal Scope of Development after the LDA has been approved by R&B and the Board of Supervisors , pursuant to Section 7 . 1 (1) of this agreement, R&B shall have the option of making the changes requested and continuing negotiations or terminating negotiations and obtaining a refund of all negotiating fees , in excess of the first $75, 000 . R&B must make its election to terminate or continue negotiations no later than 30 days after it receives written notice from the County of the material change. 12 7 . Schedule of Performance 7 . 1 Critical Dates The parties agree to the following critical dates in the Schedule of Performance: 7 . 1(a) No later than 30 days after the effective date of the ERN, the major business terms of the Ground Lease shall be negotiated by both by R&B and County staff . There will be periodic consultations between counsel for County and R&B during the drafting period. 7 .1(b) No later than 30 days after the effective date of the ERN, Developer shall prepare and submit to County staff (acting in its governmental capacity) , in writing, a Preliminary Scope of Development acceptable to County (acting as Landlord) and sufficient for County staff to establish CEQA review criteria . County will identify the information required as part of the Preliminary Scope of Development no later than 15 days following execution of the ERN. 7 .1(c) No later than 30 days after the effective date of the ERN County will update the TJKM traffic study done for the Master Plan EIR. The traffic mitigation measures required of R & B may exceed but shall not be less than those shown on Exhibit B. 7 . 1(d) County staff (acting in its governmental capacity) will commence CEQA review upon receipt of the Preliminary Scope of Development from Developer. The Preliminary Scope of Development may include alternative developments, but shall state with certainty the maximum limits of development. Developer shall prepare any necessary CEQA findings under the direction of County staff and shall pay all fees associated with CEQA review and approval (the parties do not estimate that fees associated with CEQA review and approval will exceed $5, 000 ) . 7 .1(e) No later than 45 days after the effective date of the ERN, County staff shall complete the initial draft Ground Lease and deliver it to Developer. ' 7 .1(f) Upon completion of CEQA review and the preparation of all required CEQA findings , the initial draft lease (which will include as an attachment the Preliminary Scope of Development 13 prepared by R&B pursuant to Section 7 . 1 (c ) hereof ) shall be presented to the Board of Supervisors for approval, directions to continue negotiations and for the purposes of making any required CEQA findings . A Notice of Determination shall be filed immediately thereafter. 7 .1(g) No later than 60 days after the effective date of the ERN, County staff will define all off- site requirements (including traffic mitigation measures) that will be imposed on the Developer by the County. County and R & .B will use its best efforts to obtain a list of the offsite requirements to be imposed by the City of Concord during this 60-day period. 7 .1(h) No later than 90 days after the effective date of the ERN, or 45 days after Developer receives the initial draft Ground Lease from County, whichever is later, Developer shall prepare and submit to County staff (acting in its governmental capacity) , in writing, a Formal Scope of Development, and all related submission requirements, including those specified in Section 6 of this agreement . County will provide Developer with a complete list of submission requirements no later than 60 days following execution of the ERN The Formal Scope of Development and submission requirements ( "Developer Submittals" ) must be acceptable to County staff (acting in its capacity as landlord) in writing. The Formal Scope of Development must contain sufficient detail for insertion into a Leasehold Development Agreement (LDA) and must be sufficient to secure any necessary regulatory approvals . The Formal Scope of Development may include alternative developments, provided those alternatives do not exceed the maximum limits of development contained in the Preliminary Scope of Development . 7 . 1(i) No later than 90 days after the effective date of the ERN, or 45 days after the Developer receives the initial draft Ground Lease from County, whichever is later, Developer shall prepare and submit to County staff , an approved Schedule of Performance acceptable to County staff in writing (if there are any changes from or additions to the Schedule of Performance contained in this document) . 7 .1( j ) No later than 90 days after the effective date of the ERN, or 45 days after the Developer 14 receives the initial draft Ground Lease from County, whichever is later, Developer shall provide County staff with written evidence of preliminary written lease commitments or expressions of interest from anchor tenants . 7..1(k) No later than 90 days after the effective date of the ERN, or 45 days after the Developer receives the initial draft Ground Lease from County, whichever is later, Developer shall approve a draft Ground Lease, acceptable to County staff in writing. 7 .1(1) No later than 30 days after the County receives written approval of the draft Ground Lease from Developer, or 30 days after the County receives all Developer Submittals required by Section 7 . 1 (h) hereof, whichever is later, the County (acting as Landlord) will review and approve said Developer Submittals and the Formal Scope of Development, and the parties will prepare a Lease Development Agreement (LDA) , in accordance with the terms of this ERN, to further outline the terms of these negotiations. At the earliest possible date thereafter, the LDA shall be submitted to the Board of Supervisors for approval . The LDA will attach as exhibits a copy of the draft Ground Lease, and an enumeration of discretionary approvals required by the County. 7 .1(m) No later than 200 days after the of fective date of the ERN, or 155 days after the Developer receives the initial draft Ground Lease from County, whichever is later, Developer shall provide County staff with written evidence of preliminary financing commitment or expression of interest from qualified lenders . 7 . 1(n) No later than 200 days after the effective date of the ERN, County will complete a phase 2 environmental audit of the Property. 7 . 1(o) No later than 270 days after the effective date of the ERN, or 225 days after the Developer receives the initial draft Ground Lease from County, whichever is later, Developer shall provide County staff with written evidence of final financing commitment from qualified lenders . 7 . 1(p) No later than 270 days after the effective date of the ERN, or 225 days after the Developer receives the initial draft Ground Lease from County, whichever is later, Developer shall 15 provide County staff with approval of the Ground Lease by designated lenders . 7 . 1(q) No later than 270 days after the effective date of the ERN, or 225 days after the Developer receives the initial draft Ground Lease from the County, whichever is later, Developer shall provide County staff with a Final Scope of Development (from which all alternative developments have been eliminated) , plan check, and approval of design development drawings . County shall identify the requirements for Final Scope of Development, plan check and approval of design development drawings 60 days prior to the date the Developer is required to provide these items . 7.1(r) No later than 270 days after the effective date of the ERN, Developer shall execute Ground Lease. 7 .2 Additional Critical Requirements -Developer In addition to the foregoing requirements, there exists another set of requirements that must be satisfied prior to the County' s execution (as opposed to the negotiation) of the Ground Lease, these requirements include, but are not limited to: 7 .2(a) Issuance or qualifications for issuance of a building permit. 7 .2(b) Satisfaction of all environmental processing requirements . 7.2(c) Administrative approval of Zoning Administrator and Airport Manager. 7 .2(d) Executed Leases for not less than 70% of the GLA of the proposed center including all three designated anchor tenants . 7 .3 Additional Critical Requirements - County Provided that R&B has satisfied the obligations required of the Developer in Section 7 . 1(a) through 7 . 1 (m) , within the time specified for each, is diligently pursuing the satisfaction of all other conditions precedent and is not otherwise in default under this agreement, the County shall satisfy the following obligations no later than 270 days following execution of the ERN: 7 .3(a) County will arrange for termination of the Budget Car Rental Lease and restoration of the County' s right to possess the Property, no later than 270 days after execution of the ERN, or no later than 60 days after the County 16 receives notice from R & B to remove the tenant, whichever shall last occur. 7 .3(b) County will complete all required discretionary governmental approvals (to be enumerated in the Development Proposal) . 7.3(c) County will provide for a signalized 4-way intersection, as described in paragraph 3 of Exhibit B to this agreement. If , due to no fault or delay on the part of the Developer, the County is not able to perform the obligations set forth in this Section 7 . 3, by day 270, (or with regard to 7 . 3(a) , within 60 days after the County receives notice from R & B) R&B shall have the right to request a suspension of the term of this agreement as specified in Section 7 . 5(b) hereof. 7 .4 First Extension of ERN Term (Beyond Day 90) 7.4(a) Extension Requested by Developer R&B' s right to extend the term of the ERN beyond 90 days is set forth in Section 2 of this agreement and is conditioned on the requirement that R&B is in compliance with the negotiating schedule set forth in this Section at the time each extension is requested. 7 .4(b) Suspension Necessitated by County Delay in Defining Offsite Improvements If the Developer has satisfied all of the obligations required of Developer in Sections 7 . 1 (a) through 7 . 1 (g) of this agreement no later than 60 days after execution of the ERN, and the County fails to provide the Developer with a list of offsite requirements prior to day 60, the initial term of the ERN shall be suspended, at no cost to the Developer, until the day the offsite requirements are delivered to the Developer. Under these circumstances,the day the offsite requirements are delivered to the Developer shall be considered to be day 60 for the purposes of this agreement . 7 .5 Final Extension of ERN Term (Beyond Day 270) It is contemplated by the parties that the Developer shall fulfill all of the conditions precedent to the execution of the Ground Lease prior to day 270 following execution of the ERN. It is further contemplated by the parties that the County shall complete all required discretionary approvals prior to day 270 following execution of the ERN. 7 .5(a) Extension Requested By Developer If County has completed all required discretionary approvals prior to day 270, and Developer has satisfied all of the requirements of 17 Developer in Sections 7 . 1 (a ) through 7 . 1 (m) within the time specified for each, but encounters difficulties in satisfying the remaining obligations, Developer may request a final 90 day extension of the ERN, by providing the County with written notice of its desire to extend the ERN period and paying the negotiating fee set forth in Section 2 hereof . Said extension shall be for the express purpose of satisfying the remaining obligations of Section 7 . 1 and 7 . 2 . 7.5(b) Suspension Necessitated By County Delay If, due to no delay and no fault on the part of the Developer, the County has not performed the obligations required of it by Section 7 . 3 of this agreement prior to day 270 and the Developer has met all of the time limits specified above and has satisfied all of the conditions precedent to the execution of a building permit and the Ground Lease, which can reasonably be satisfied without the County' s performance of said obligations, the term of the ERN will be suspended without cost to the Developer until such time as said obligations have been completed. The day the last required discretionary approval is obtained shall be considered day 269 for purposes of this agreement. 7 . 6 Execution of Ground Lease By County If, during the initial or any extended term of this ERN, the Developer completely fulfills all of the conditions precedent to the execution of the Ground Lease by the County (including the Developer' s execution of the Ground Lease) the Ground Lease will be executed by the County. The County's obligation to execute the Ground Lease will not arise until the Developer has satisfactorily completed all of the requirements specified herein. 8 . Acceptance It is specifically understood that this ERN constitutes an enumeration of the points which will guide the negotiations of the parties and that no binding agreement as to the Ground Lease, or the terms thereof , shall arise between the parties until execution of the Ground Lease by the Board of Supervisors . 9 . Remedies Nothing in this agreement is intended to give R & B an option or any other present interest in the Property. The Property is not security for this agreement. The parties sole remedy for breach of this agreement is limited to damages . If the County, through no fault of the Developer, and not as the result of an act by a third party or as the result of the change of a material term of this agreement, arbitrarily, unreasonably and in bad faith refuses to execute the Ground Lease, and the Developer has satisfied all conditions precedent to the execution of the Ground Lease that can reasonably be satisfied at the time of the County' s arbitrary, unreasonable and bad faith refusal , Developer 18 shall have the limited right to rescind this agreement . However, under no circumstances shall rescission result in rescission of the quitclaim deed delivered concurrently with the execution of the ERN or otherwise vest in R&B any right or interest in the Property which is the subject of this agreement. Developer' s only relief against the County shall be in the form of damages . The County' s arbitrary, unreasonable and bad faith refusal to execute the Ground Lease is the only action on the part of County that shall entitle the Developer to the remedy of rescission. 10. Lender Concerns County agrees to provide in the draft lease and subsequently negotiate in good faith with a qualified lender, reasonable, standard provisions often described as "lender" or "mortgage" protection clauses including, but not limited to, notice, new lease, attornment, rights to cure and limitations of liability. The County and R&B agree to further discuss the issue of the option term with a qualified lender, as well as additional consideration for any additional option term, at the time of lease negotiations . 11 . Sign The Developer wants County approval to place a sign on the property leased by Buchanan Field Golf Course Inc. County will permit a sign to be installed on the property provided that: a . Developer, by executing this agreement, agrees to save, protect, defend, indemnify and hold harmless County, its officers, agents and employees, and Buchanan Field Golf Courses Inc . , its agents , officers and employees, from and against any and all claims , costs and liability for any damage, injury or death, including without limitation consequential damages , of or to any persons or the property of any person, including attorneys fees , arising or resulting directly or indirectly from or connected with the installation, removal, placement or presence of the sign on the property, save and except claims or litigation arising through the sole negligence or sole willful misconduct of the County, its officers or employees, and if requested by County will defend any such actions at the sole cost and expense of Developer (and will require similar indemnification to the County and Buchanan Field Golf Courses Inc. from Developer' s subtenant(s ) ) . b. The sign shall be installed at no cost to County and, under no circumstances, including but not limited to the arbitrary, unreasonable and bad faith refusal of the County to execute the Ground Lease, shall Developer be able to recover any costs connected with the sign (including but not limited to its construction, installation, placement on or removal from the Property) . C . The sign must be acceptable to the County, acting in its governmental capacity, and Buchanan Field Golf Courses Inc . , concerning the issues of height, location, mass , lighting and safety. 19 d. The consent of Buchanan Field Golf Courses Inc . must be obtained before a sign can be placed on the property leased by Buchanan Field Golf Courses Inc. County and Developer will use their best efforts to obtain said consent. 12. County's Project Agent The County's Project Agent for the purposes of supervising this agreement is: Dick Awenius Contra Costa County General Services Dept. Lease Management Division 1220 Morello Ave, Suite 100 Martinez, CA 94553 (415 ) 313-7250 Developer will provide Mr. Awenius with prompt, written notice of each act performed by Developer pursuant to this agreement and the date of performance. "COUNTY" "DEVELOPER" COUNTY OF CONTRA COSTA REYNOLDS & BROWN, a political subdivision a California Corporation of the State of California By: County Administrator By: Its RECOMMENDED FOR APPROVAL: By: By: Scott Tandy Its Chief Assistant County Administrator By: James Kennedy Deputy Director .of Community Development - Redevelopment By: J. Michael Walford Public Works Director APPROVED AS TO FORM: APPROVED AS TO TECHNICAL CONTENT: Victor J Westman County Counsel By: Dick Awenius Property Management Agent By: General Services Dept. Deputy County Counsel ac\ccmou6 Lease Management Division 20 A. hydrology and Water Quality (p. I11-12) Mitigation. The following mitigation measures are set forth to reduce the potential impacts of the development of Parcels A and B on local water quality to a level of insignificance: 1. Prior to the start of construction,the developer will provide, and the County will review a hydrologic survey of each site to assess the adequacy of drainage facilities and determine future requirements. The survey will evaluate the hydraulic impacts of stormwater runoff and assess the potential for water quality hazards as a result of surface contaminants being carried into the local drainage systems. The survey will include an assessment of the need for waste treatment of surface runoff and provide for any special drainage system features such as catchment basins, or oil and sand separators. 2. After construction, accumulated pollutants in local catch basins should be removed through periodic cleaning and maintenance. 3. To protect water quality,parking lots and access roads should be periodically swept with vacuum sweepers. The following mitigation measures are set forth to reduce the potential impacts of construction on Parcels A and B to a level of insignificance: 1. Pollutants such as fuels, oil, bitumens, sewage, and other toxic or hazardous chemicals and materials will not be discharged into storm drains or drainage channels, nor will they be stored or dumped in any location where they might enter the groundwater or surface drainage systems. 2. Construction related fuel spills, and related surface contamination will be monitored and cleaned up as quickly as possible. 3. Grading activities will be limited to periods of dry weather. 4. Water from washing aggregate or other operations containing sediments will be treated by filtration or settlement, or other appropriate means. 5. A comprehensive construction erosion control plan will be required, including the use of temporary silt fences or baled hay to prevent silt intrusion into existing drainage channels and water courses. 6. Construction impact mitigation requirements will be made a part of all construction contracts and enforced by inspectors. 13. GLy►logy and Soils (p. 111-20) Mitigation. The following mitigation measures are set firth to reduce the potential impacts of" expansive soils and soil compression on buildings and paving associated with the proposed General Plan amendment to a level of insignificance: EXHIBIT A 1. To minimize the damage potential to buildings resulting from the swelling and shrinkage of on-site soils, proposed structures may have to be supported on deepened footings. Slabs on grade and pavement areas may have to be supported on a layer of imported non- expansive fill; this is to be determined at the time of project design. 2. To avoid post-construction differential settlement damage, site grades should be designed to avoid placement of additional fill. In those circumstances where till would be required (e.g., flood prone areas), individual building pad areas could be surcharged to obtain anticipated settlements prior to building construction. 3. An structural fill or wall backfill less than five feet thick should be compacted to at least 90 percent relative compaction as determined by ASTM test standards. Any structural fill deeper than five feet should be compacted to at least 95 percent. 4. For any structure sensitive to differential settlement, special design features must be considered, including (a)pile foundations extending through the compressible soil layer and gaining support from friction between the piling and surrounding soil, (b) a grid foundation consisting of inter-connected footings, or (c) a mat foundation. S. A detailed foundation investigation should be performed for each of the proposed development sites to further evaluate the properties of the subsurface soils. This would result in specific engineering proposals for each development. The following mitigation measure is set forth to reduce the exposure of people and property to moderate earthquake hazard to a level of insignificance: 1. All proposed improvements constructed as a result of the proposed General Plan amendment will be designed and constructed in conformance with applicable seismic safety standards and guidelines, including the Uniform Building Code. C. Plants and Animals (p. III-28) ?Mitigation. No reasonable or feasible mitigation measures are available for the reduction of plant or animal habitat that would occur as a result of implementation of the proposed General Plan amendment for the development of Parcels A and B. This must he considered an unavoidable effect of project implementation. However, the potential adverse impacts of proposed construction activities on resident small animals can be mitigated by the following means: 1. To mitigate the potential for dislocating small animals and rodents into nearby residential and business areas, construction phasing should he taken advantage of to provide esc.ipe routes to direct any remaining animals away from residential areas and into tlnde�el �l�.d arexs of the airport. 2 The threat of surface water pollution from parking lot stormwater runoff and any resultant adverse impacts on water plants and fish can be mitigated to a level of insignificance by the following means: 1. The airport hydrologic survey set forth as a mitigation measure under the Hydrology and Water Quality section (above) is to assess the possibility of water quality hazards from the chemical contamination of runoff. To this end, the hydraulic design analysis will include an evaluation of the need for waste treatment of surface runoff and provide for special drainage system features such as settlement ponds and oil and sand separators for Parcels A and B. 2. After construction,.accumulated pollutants in local catch basins should be removed through periodic cleaning and maintenance. 3. To protect local water quality, site access roads and parking lots should be periodically swept with vacuum sweepers. D. Light and Glare (P. II1-31) Mitigation. The potential adverse impacts of light and glare from the development of Parcels A and B on aviation safety can be mitigated to a level of insignificance by the following means: 1. All new lighting for commercial and industrial uses, including parking lots is to be of the high pressure.sodium vapor type, and is to be designed and installed so as to create no glare or interference with aircraft operations. The lighting will be arrayed in such a manner that it cannot be mistaken for airport approach lights or runways by pilots making- an approach to the airport in adverse weather conditions. Potential glare from new commercial lighting that could adversely impact nearby residents and hillside dwellers can be mitigated to a level of insignificance by the following means: 1. All new lighting for commercial uses and related parking lots is to be of the high pressure sodium vapor type, and is to be designed and installed so as not to create any unnecessary glare. E. Risk or Upset and Safety (p. 111-43) Mitigation. The emergency fuel spill and hazardous substances releases response measures of the Contra Costa Consolidated Fire Department are sufficient to reduce this potential impact to a level of insignificance. 1:. Energy (p. 111-49) Mitigation. No reasonable or feasible mitigation measures are available to avoid potential energy consumption that would occur as a result of the General Plan amendment and related development. This must be considered an unavoidable effect of project implementation. I-lowever, the magnitude of potential impacts can he somewhat reduced by the following means: 3 1. The design and construction of new buildings associated with the development of Parcels A and B will incorporate energy saving features as required by the County's building codes. Such features may include building insulation, weatherstripping around exterior doors, and double-pane or thermal windows. 2. Parking lot.ligliting will be of an energy efficient type of high-pressure sodium light. G. Utilities (p. III-51) Mitigation. Not required. Although such conservation techniques and measures as water conserving plumbing fixtures, use of drought resistant landscaping materials, use of insulation in buildings, and use of low energy lighting will be made a part of project design and construction. H. Aesthetics (p. 1II-54) Mitigation. Potential adverse project impacts can be mitigated to a level of insignificance by the following means: 1. Project buildings are to be attractively designed and painted, and are to be landscaped (including street frontages and parking lots). 2. A landscape plan prepared by a licensed landscape architect will be prepared and approved prior to the start of construction. I. Cultural Resources (p. III-56) Mitigation. If any such artifacts or similar evidence of archaeological significance is uncovered, all construction in the immediate vicinity should be stopped until a qualified archaeologist can be consulted concerning the appropriate treatment of the find. Such action would be sufficient to reduce potential adverse impacts to a level of insignificance. J. Noise (p. 1II-78) Mitigation. There are no reasonable or feasible means to mitigate construction noise. This would be an unavoidable impact of project implementation. Noise from commercial activities can be reduced to a level of insignificance through proper site planning and the reduction of noise at its source through dampening or suppression. Vehicular noise cannot be reduced to a level of insignificance, but can be reduced somewhat during the critical late night and early morning hours by restrictions on delivery vehicles. K. I raffic (p. Il[-84) 11iti�;ati��n. The analyses presented above represent a worst-case scenario I'ur individual project impacts (cumulative project impacts are analyzed in a separate; section of this ch;:- -_r), and the development of Parcels A and B, taken individually, would not require mitigation for projected traffic impacts. However, some mitigation for Parcel A impacts is alrr:+dy huilt int; the; project description and some additional mitigation has heen recomme;ndcd by the tratti,; 4 consultant. Mitigation built into the project for Parcel A traffic impacts (but not modelled) includes a proposed signalized intersection on Concord Avenue between John Glenn Drive and the Walnut Creek channel (see Figure 1-19). The proposed signal would allow for left-turns into Parcel A from Concord Avenue. TJKM also recommends that a two-lane left turn be created on eastbound Concord Avenue at John Glen Drive to facilitate access to Parcel A. Either of these mitigation measures would restore the Concord Avenue/John Glenn Drive intersection to LOS D during the p.m. peak hour. Both measures would serve to retain tolerable levels of service (LOS D or better) at the intersection even with projected cumulative project impacts. The County will require a two-lane left turn from eastbound Concord Avenue to John Glenn Drive as additional mitigation, subject to the concurrence of the City of Concord. The following is a response to a City of Concord comment in the Final EIR: Comment 7, November 27, 1989 letter: The EIR should address site access for Parcel A. included in this analysis should be the proposed location of a new traffic signal on Concord Avenue between John Glenn Drive and Stanwell Drive. A new traffic signal may have potential impacts to the existing traffic signal system on Concord Avenue and a detailed traffic analysis is needed to measure potential impacts to traffic flow. Response to Comment 7: Access to Parcel A is discussed on pp. 1-32 through 1-35 of the DEIR, and in Figure 1-19. Included in this section is the proposed location of a new traffic signal on Concord Avenue between John Glen Drive and the Walnut Creek Channel. This is part of an earlier proposal by the County for the development of Parcel A by Reynolds and Brown. A detailed traffic signal analysis has not been included as this is beyond the scope of the DEIR. The following is a response to a People Over Planes comment in the Final EIR. Comment 9, November 27, 1989 letter: At page 1-39 of the DEIR, it is stated that developers will pay the total cost of infrastructure improvements to support development of Parcels A and B. Unless all of the public burdens necessitating these improvements will be caused by the developers of the two parcels, the total cost cannot be levied against them unless they dei not object. Nollan vs. California Coastal Commission, 107 S. Ct. 3141 (1987). The County's proposed policy regarding development of these tuts parcels suggests that the various road improvements are not related i{t airport activities, but solely to development of Parcels A and 11. Is this correct" 5 • 11. p. Response to Comment 9: The DEIR is clear on this subject. The County proposes to negotiate the costs of any off-airport infrastructure improvements with the developers of Parcels A and B. L. Air Quality (p. 111-94) Mitigation. All construction contracts will require contractors to reduce dust generation. Construction dust impacts will be reduced by the following measures: O providing equipment and manpower for watering of all exposed or disturbed soil surfaces, including weekends and holidays. o covering stockpiles of debris, soil, sand or other materials that can be blown by the wind. o trucks carrying dirt, sand or soil to or from the project site will be covered. o sweeping construction area and adjacent streets of all mud and dust daily. Mitigation opportunities for commercial developments are limited. Traditional air quality mitigation measures such as Transportation Systems Management (TSM) would not be expected to significantly reduce traffic generation from the proposed land uses. TSM measures are primarily aimed at home-to-work trips of employees, and the overwhelming majority of trips to commercial facilities are customer trips. Nevertheless, both Parcels A and B have some potential for trip reduction due to transit. Both sites will provide for transit bus pull-guts and waiting areas. 6 M) 'I'rail Requirements N) Noise Impact of Airport O) TSM The following is a response to a Bay Area Air Quality Management District comment in the Final EIR: Comment 3, November 22, 1989 letter- Ile DEIRIEA estimates that commercial development of Parcel A will add 12,445 gross daily vehicle trips and Parcel B will add 10,888 gross daily vehicle trips. These levels are considered large enough to have a significant impact on CO levels and traffic flow. Although circulation improvements are offered as mitigation, we feel that the FEIR should include a discussion of a TSM program designed to reduce single occupancy vehicle trips to and from the offices proposed for Parcels A and B. We recommend that the FEIR discuss the applicability of TSM program measures outlined in the 1987 Contra Costa County TSM Ordinance. Response to Comment 3: The DEIR predicts carbon monoxide levels at three worst-case intersections for existing conditions, for 1991 conditions with approved development, for 1991 with approved development and the proposed project, and in the year 2444 with cumulative traffic increases. The traffic generated by both Parcel A and Parcel B has been included in the carbon monoxide analysis. The circulation improvements described in the DEIR are not mitigation measures for air quality, but are part of the proposed project. As described in the Project Description chapter of the DEIR, the proposed project includes commercial development of Parcels A and B, not office development. The applicability of TSM strategies to the proposed development of Parcels A and B is discussed on page III-94 of the DEIR. The Contra Costa County TSM Ordinance is employment based, in that its requirements depend on the number of employees at a business or complex. The Ordinance requires small employers to conduct commuting surveys, and larger employers to provide TSM information programs. The largest employers would he required to submit a TS%l program to the; designated TSM coordinator. TSM requirements for development of Parcels A and B would only he determined after a specific development is proposed. As discuss We on page 111-94 of the DEIR, the commercial development envisioned for these parcels would generate a relatively small proportion of peak-hour commute trips that would he amendable to TSM. 7 v , r i') Comply with the County Child Care Ordinance Q) Visual R) Design S) Vehicular entrance/exit T) Confirmation of Trak Study Conclusions U) Transit Access The following is a response to a Bay Area Air Quality Management District comment in the Final EIR. Comment 4, November 22, 1989 letter: In addition to TSM programs, the FEIR should discuss transit opportunities to service the project area. The DEIR/EA briefly discusses transit options for the development proposed for Parcel B, but neglects to discuss transit opportunities for the development proposed for Parcel A. We recommend that the Final EIR discuss which transit alternatives are available for Parcel A, as well as transit and rideshare incentives. Response to Comment 4: Parcel A would have transit access provided by an existing bus route along Concord Avenue. As air quality mitigation for this site, transit incentives such as bus pull-out lanes, bus shelters and transit information programs should be included in the design of any development on Parcel A. This transit access may be a major factor in the development of any TSM programs developed for the Parcel A development. V) Comply with Public Works requirements including, but not limited to: (1) Payment of applicable Area of Benefit fees; (2) Tbose requirements set forth in a Public Works memorandum dated `.RA t J.nhv,nitdp ua x The traffic study done for the Buchanan Field General Plan shall be updated based on the specific development proposed. The following improvements and fees shall be considered the minimum which will be required of the developer. The updated traffic study may show further improvements are needed to mitigate the proposed development. 1. Lessee shall be responsible for all frontage improvements which include: - widening the north side of Concord Avenue, between the Walnut Creek bridge and John Glenn Drive, by a total of twelve feet constructing new curbing and sidewalk installing or modifying existing street lighting, landscaping, and drainage. This widening will provide a fourth lane exclusively for turns into the entrance to the development and into John Glenn Drive. 2. On John Glenn Drive, lessee shall widen the east side to provide thirty-two feet of pavement between Concord Avenue and the entrance to lessee's development. This will require the reconstruction of curbs, sidewalk, lighting, and landscaping. This widening will provide an exclusive lane for right turns into lessee's development. Lessee shall also widen the southbound direction of John Glenn Drive from his westerly entrance to Concord Avenue, and construct a 200 foot long left turn lane at Concord Avenue. All of this widening can be accomplished by reconstructing the median island. 3. The lessee shall (1) modify the existing median islands on Concord Avenue to provide a new intersection opposite the driveway to the Reynolds & Brown development on the south side of Concord Avenue, (2) install signals at this same site, and (3) modify the signals at Concord Avenue and John Glenn Drive. 4. Lessee shall pay traffic mitigation fees as required by all development within the unincorporated area of the County. This development is within the Pacheco Area of Benefit, where the fees are currently $2.05 per square foot for retail business. JNIW:dj11 1,ra-;p.13 3.1+-J1 EXHIBIT B