175THAVE_AND_OLIVE_DA_V4_16112022_CLEAN.DOC.PDF
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WHEN RECORDED, RETURN TO:
Maricopa County Department of Transportation
2901 West Durango Street
Phoenix, Arizona 85009
Attention: Jennifer Toth
Maricopa County Real Estate Department
2801 West Durango Street
Phoenix, Arizona 85009
Attention: Alex Smith
DEVELOPMENT AGREEMENT
THIS DEVELOPMENT AGREEMENT (this “Agreement”) is made and entered into as
of the ____ day of _____________, 2022 (the “Effective Date”), by and among MARICOPA
COUNTY (“County”), and OLIVE CHARTER, LLC, a Arizona limited liability company
(“Developer”).
R E C I T A L S
A.
WHEREAS the Traffic Impact Study for the Project, as defined in Section 2.1
below, indicated that a traffic signal is warranted at the intersection of 175th Avenue and Olive
Avenue;
B.
WHEREAS acquisition of additional right-of-way is needed for the construction
of the intersection and traffic signal pursuant to MCDOT ROW Permit TC202101026 and the
Developer and County agree that County should be the lead agency for right-of-way acquisition;
and
C.
WHEREAS this Agreement is a development agreement pursuant to the
provisions of A.R.S. §11-1101 (B)(7).
NOW, THEREFORE, in consideration of the foregoing premises and the mutual
promises and agreements set forth herein, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Parties hereto state, confirm and
agree as follows:
A G R E E M E N T
1.
Definitions. The following terms shall have the meanings set forth below
whenever used in this Agreement, except where the context clearly indicates otherwise.
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1.1
“Business Day” means any day other than a Saturday or Sunday or legal
holiday in the State of Arizona. Unless specifically referred to as a “business day”, all days
contemplated by this Agreement shall mean calendar days.
1.2
“County” means the Maricopa County, Arizona, and any successor public
body or entity.
1.3
"Commencement of Construction" or any grammatical derivation
thereof, means (a) the obtaining of infrastructure permits from the Maricopa County Department
of Transportation and (b) actual construction work having been begun on the work described in
any such permits.
1.4
“Developer” means Olive Charter, LLC.
1.5
“Intersection” means the traffic control signal at the intersection of 175Th
Avenue and Olive Avenue and depicted in Exhibit C attached hereto and incorporated herein by
this reference.
1.6
“Parties” and “Party” means, collectively, the County and the Developer
as the parties to this Agreement or each of the parties individually, as the context may require.
1.7
“Project” means the overall development of the Property pursuant to
Maricopa County Planning and Development permit numbers B202102013, B202107728,
B202107729 and B202102552..
1.8
“Property” means the property described in Instrument Number
20210354247 recorded in the official records of Maricopa County Recorder and otherwise
known as Assessor’s Parcel Number 502-08-001E and legally described in Exhibit A.
1.9
“Right-of-Way” means the additional property necessary for the
construction of the Intersection depicted in Exhibit D attached hereto and incorporated herein by
this reference.
1.10
“Title Company” shall mean Security Title Agency, Inc. 2415 E
Camelback Rd, Suite 200 Phoenix, AZ 85016. Attention: Jason Bryant
2.
Development of the Property.
2.1
The Project. The County and Developer intend that the development of
the Project on the Property shall be achieved pursuant to, and in accordance with, the plans
approved by Maricopa County Planning and Development Department, which are provided in
Exhibit B. The Project includes a requirement for a traffic signal at intersection of 175TH
Avenue and Olive Avenue (the “Intersection”).
2.2
Intersection Design and Construction. Developer, at its sole cost and
expense, shall design and construct the Intersection pursuant to Maricopa County Department of
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Transportation (MCDOT) standards. Developer will be responsible for all costs associated with
the design and construction of proposed Intersection, including but not limited to construction of
necessary signal, turn lane, road widening, sidewalk reconstruction and potential relocation of
utilities. The final design of the intersection shall be submitted to MCDOT on or before thirty
(30) business days from the Effective Date of this Agreement. The final design of the
Intersection is subject to approval by MCDOT and construction of the intersection shall not
commence until a right-of-way permit is issued by MCDOT. The preliminary design of the
Intersection is provided in Exhibit C.
2.2.1 Financial Assurances. Before commencing construction of the
Intersection, but no later than sixty (60) Business Days from the Effective Date of this
Agreement, Developer shall be required to deposit, into an escrow account with Title Company
(Escrow Account), funds in an amount equal to the estimated or contractual total cost to
construct and place in service the Intersection, including the estimated right-of-way acquisition
costs, which estimated costs shall be provided by the County. The construction cost estimate
shall be prepared by a contractor qualified to perform such work and shall be reviewed and
approved by County prior to presentation of the financial assurance. Concurrently with the
opening of the Escrow Account, County and Developer shall provide Title Company with
Escrow Instructions providing the terms and conditions that must be satisfied for the release of
funds from the Escrow Account for payment of Intersection work and Right-of-Way acquisition
as described in Section 2.4 below. Payments shall be made from the Escrow Account in
accordance with the provisions of the contract for performance of the work, but not more
frequently than monthly. Any funds then remaining on deposit in the Escrow Account after
completion and acceptance of the construction by the County shall be returned to Developer
upon completion of construction of the Intersection.
2.2.2 Completion of Intersection. No Certificate of Occupancy shall be
issued by the County for Project unless and until Developer has completed the Intersection and
the Intersection has been treated as final by MCDOT and the County Engineer. The term “final”
as used in this Section 2.2.2 shall mean the County Engineer has issued a letter that the
Intersection is complete and that the warranty period for the intersection has commenced.
2.3
Acquisition of Right-of-Way. Developer and County agree that County
will acquire the right-of-way needed for the Intersection at the sole cost and expense of
Developer. Based on the preliminary design of the Intersection, provided in Exhibit C, County
estimates an easement area of eight hundred eighty (880) square feet will be required for
construction of the Intersection. The proposed Right-of-Way area is provided in Exhibit D. The
final Right-of-Way area will be determined based on the approved design of the Intersection.
County shall be reimbursed for the Right-of-Way acquisition, including but not limited to any
legal/court cost associated with condemnation, from the Escrow Account as provided for in the
Escrow Instructions.
2.3.1 Timeline for Right-of-Way Acquisition. Based on the preliminary
design of the Intersection, the Right-of-Way will be acquired from two (2) private parcels known
as Assessor’s parcel numbers 502-10-973 and 502-10-972G (the ROW Parcels). County will
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diligently pursue the acquisition of the Right-of-Way. However, the timing for such acquisition
is beyond the control of the County.
2.4
Escrow Instructions. Concurrently with the opening of the Escrow
Account, County and Developer shall provide Title Company with Escrow Instructions that
include the following provisions: (i) provide that no funds can be withdrawn from the Escrow
Account without the consent of the County; (ii) allow Developer to withdraw funds and make
payments, upon providing County invoices from Developer’s contractor, for the construction of
the Intersection; (iii) allow County to withdraw funds for the acquisition of the Right-of-Way;
(iv) allow for time extensions, at County’s request, to accommodate any condemnation cases that
may be necessary for the County to acquire the Right-of-Way; and (v) require Developer to
deposit additional funds, if necessary, to pay all costs associated with the acquisition of the
Right-of-Way, including condemnation costs.
2.5
Developer's Indemnification of County. The Developer shall
indemnify, protect, defend and hold harmless the County, its board members, officers,
employees and agents, from all claims, demands, losses, damages, liabilities, fines, charges,
penalties, administrative and judicial proceedings and orders, judgments, remedial actions of any
nature whatsoever, and all costs and clean-up actions of any nature whatsoever as well as all
costs and expenses incurred in connection therewith, including without limitation, reasonable
attorneys' fees and costs of defense, to the extent the same are asserted by a third party against
the County and arise out of or result from the performance of this Agreement by the Developer.
3.
Default.
3.1
Default. In the event any party hereto fails, within thirty (30) days after
receipt of written notice from any other Party, to comply with any terms, conditions, provisions
and obligations under this Agreement which are applicable to such Party (an “Event of Default”),
such Party shall be deemed to be in default under this Agreement.
3.2
Additional Developer Defaults. In addition to the foregoing, it shall be
a default hereunder if:
3.2.1 Developer sells, assigns, conveys, or alienates this Agreement or
the Property, in its entirety, whether voluntarily or involuntarily to an entity or entities that are
not Affiliates of Olive Charter, LLC, and, the Developer ceases to provide the primary project
management and administration responsibilities on a day to day basis, without the prior written
approval of the County, which approval shall not be unreasonably withheld, delayed or
conditioned provided that the party to whom the Developer proposes to convey the Property
has demonstrated the financial capacity to perform its obligations under this agreement; or
3.2.2 any petition or application for a custodian, as defined by Title 11,
United States Code, as amended from time to time (the "Bankruptcy Code") or for any form of
relief under any provision of the Bankruptcy Code or any other law pertaining to reorganization,
insolvency or readjustment of debts is filed by or against Developer or any partnership of which
Developer is a partner, their respective assets or affairs, and such petition or application is not
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dismissed within ninety (90) days of such filing; or Developer makes an assignment for the
benefit of creditors, is not paying material debts as they become due, or is granted an order for
relief under any chapter of the Bankruptcy Code; or a custodian, as defined by the Bankruptcy
Code, takes charge of any property of Developer or any property of any partnership of which
Developer is a partner; or garnishment, attachment, levy or execution in an amount in excess of
an amount equal to ten percent (10%) of its net worth is issued against any of the property or
effects of Developer, or any partnership of which Developer is a partner, and such issuance is not
bonded against within ninety (90) days; or
3.2.3 there is a material default or material breach of any representation,
warranty or covenant, or there is a material false statement or material omission, by such
Developer under this Agreement; or
3.2.4 the dissolution or termination of existence of Developer.
3.5
Remedies. If the parties involved in any dispute hereunder are not able to
resolve such dispute, then, in that event, such parties to the dispute shall be entitled to pursue any
and all legal and equitable remedies which may be available at law or in equity.
3.6
County's Remedies. If the Developer is in default under this Agreement
and there exists an Event of Default with respect thereto, then the County shall have the right to
terminate this Agreement immediately upon written notice to Developer and to pursue any other
rights or remedies provided hereunder, at law or in equity. The Escrow Instructions, and the
County’s use of the funds therein, shall survive the termination of this Agreement.
3.7
Term. The Term of this agreement shall be five (5) years or until the
Intersection has been determined “final”, as defined in Section 2.2.2, by MCDOT.
4.
General Provisions.
4.1
Notices. All notices required or permitted to be given hereunder shall be
in writing and may be given in person or by United States mail, commercial overnight delivery
service made over a receipt or by courier. Any notice directed to a party shall become effective
upon the earliest of the following: (a) actual receipt by that party; (b) hand delivery to such party
at its designated notice address; (c) one (1) business day after deposit for delivery with a
nationally-recognized overnight courier; (d) facsimile with receipt confirmed; or (e) if given by
certified United States mail, forty-eight (48) hours after deposit with the United States Postal
Service, postage prepaid, addressed to that party at its designated address. The designated
address of a party shall be the address of that party shown below:
To the County:
Maricopa County Department of Transportation
Attn: Director
2801 W. Durango St.
Phoenix, AZ 85009
With a copy to:
Maricopa County Real Estate Department
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Attn: Director
2801 W. Durango St.
Phoenix, AZ 85009
To Developer:
Olive Charter LLC
Attn: Glenn Way
c/o Charter One
6913 East Rembrandt Ave
Mesa, Az. 85212
With copies to:
Pew and Lake, PLC
Attn: Ralph Pew
1744 South Val Vista Dr., Suite 217
Mesa, Arizona, 85202
Any party hereto shall have the right to change its designated notice address by providing to the
other party written notice of such change in the manner described above.
4.2
Successors and Assigns. The provisions of this Agreement shall inure to
the benefit of and be binding upon the successors and assigns of the parties hereto.
4.3
Captions. The captions used herein are for convenience only and do not
in any way limit or amplify the terms or provisions hereof.
4.4
Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of Arizona. This Agreement has been made and entered
into in Maricopa County, Arizona.
4.5
Waiver. No waiver by any party of any breach of any of the terms,
covenants or conditions of this Agreement shall be construed or held to be a waiver of any
succeeding or preceding breach of the same for any other term, covenant or condition herein
contained.
4.6
Attorneys' Fees. In the event of any actual litigation between the parties
in connection with this Agreement, the party prevailing in such action shall be entitled to recover
from the other party all of its costs and fees, including reasonable attorneys' fees, which shall be
determined by the court and not by the jury.
4.7
Severability. In the event that any phrase, clause, sentence, paragraph,
section, article or other portion of this Agreement shall become illegal, null or void or against
public policy, for any reason, or shall be held by any court of competent jurisdiction to be illegal,
null or void or against public policy, the remaining portions of this Agreement shall not be
affected thereby and shall remain in full force and effect to the fullest extent permitted by law,
unless the material terms of this Agreement are vitiated.
4.8
Schedules and Exhibits. All schedules and exhibits attached hereto are
incorporated herein by this reference is if fully set forth herein.
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4.9
Entire Agreement. This Agreement constitutes the entire agreement
between the Parties hereto pertaining to the subject matter hereof and all prior and
contemporaneous agreements, representations, negotiations and understandings of the Parties
hereto, oral or written, are hereby superseded and merged herein.
4.10
Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be deemed to be an original but all of which together shall
constitute one and the same instrument. Electronic signatures shall be accepted as the equivalent
of original ink signatures.
4.11
Recordation. This Agreement shall be recorded in the Official Records
of Maricopa County, Arizona within ten (10) days after its approval and execution by the parties
hereto.
4.12
Conflict of Interest. To the best knowledge of Developer and no
member, official or employee of County shall have any direct or indirect interest in this
Agreement, nor participate in any agreement relating to the Agreement which is prohibited by
law. This Agreement is subject to A.R.S. §38-511.
4.13
No Personal Liability. No current or former member, official or
employee of any Party shall be personally liable (a) in the event of any default or breach by such
party, (b) for any amount which may become due to any non-breaching party or its successor or
assign, or (c) pursuant to any obligation of the breaching party under the terms of this
Agreement.
4.14
No Partnership; Third Parties. It is not intended by this Agreement to,
and nothing contained in this Agreement shall create any partnership, joint venture or other
arrangement between the parties hereto. No term or provision of this Agreement is intended to,
or shall, be for the benefit of any person, firm, organization or corporation not a party hereto, and
no such other person, firm, organization or corporation shall have any right or cause of action
hereunder.
4.15
Authority. Developer shall, prior to or simultaneously with execution of
this Agreement, provide County with proof that the person executing this Agreement on behalf
of the Developer is legally authorized to bind the Developer.,
4.16
Excused Delays in Performance as a Result of Force Majeure. In
addition to any specific provisions of this Agreement, the performance by either party hereunder
shall not be deemed to be in default where there is a delay in performance caused by or resulting
from war, insurrection, strikes, lockouts, riots, floods, earthquakes, fires, casualties, acts of God,
acts of the public enemy, epidemics, quarantine restrictions, freight embargos, lack of
transportation, governmental restrictions or priority, unusually severe weather for Maricopa
County, Arizona, or acts or the failure to act of any public or governmental agent or entity,
litigation relating to the Property initiated by a third party other than Developer or the County
(and where the party claiming the executed delay is without fault in connection with such
litigation) or any other causes beyond the control or without the fault of the party claiming an
extension of time to perform (a ''force majeure"), and the party affected by the force majeure
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event gives notice to the other party within thirty (30) business days after the occurrence of such
event. In the event that any party to this Agreement is unable or fails to perform due to an event
constituting a force majeure and such party has given the notice as provided above, and such
excused delay is the proximate cause of the other party being unable or failing to perform in
accordance with the terms of this Agreement, then the time for the performance of the other
party shall also be extended for a period of time equal to the period of the delay plus a reasonable
start-up period. Any extension of time resulting from a force majeure shall only be for the period
of the force majeure.
4.17
No Forced Labor. Developer warrants and certifies that it does not
currently, and agrees for the duration of the contract that it will not, use:
1. the forced labor of ethnic Uyghurs in the People's Republic of China.
2. any goods or services produced by the forced labor of ethnic Uyghurs in
the People's Republic of China.
3. any contractors, subcontractors or suppliers that use the forced labor or
any goods or services produced by the forced labor of ethnic Uyghurs in the
People's Republic of China.
If Developer becomes aware during the term of the Agreement that the Developer is not in
compliance with this paragraph, the Developer shall notify the County within five business days
after becoming aware of the noncompliance. Failure of Developer to provide a written
certification that the Developer has remedied the noncompliance within one hundred eighty
(180) days after notifying the public entity of its noncompliance, this Agreement shall terminate
unless the Term of this Agreement shall end prior to said one hundred eighty (180) day period.
4.18
Boycott of Israel. Developer warrants that any contractor who engages in
for-profit activity and has 10 or more employees, certify it is not currently engaged in, and agrees
for the duration of this Agreement to not engage in, a boycott of goods or services from Israel.
This certification does not apply to a boycott prohibited by 50 U.S.C. § 4842 or a regulation
issued pursuant to 50 U.S.C. § 4842.
4.19
Administration of Agreement. The Assistant County Manager for
Maricopa County charged with oversight of the Maricopa County Real Estate Department and/or
the Real Estate Director for Maricopa County shall administer this Agreement on behalf of
County and are hereby authorized to sign the Escrow Instructions and other documents in
accordance with this Agreement.
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Signature Pages follow
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IN WITNESS WHEREOF, the undersigned have caused this Development Agreement to be
executed as of the day and year first above written
MARICOPA COUNTY
A political subdivision of the State of Arizona
Recommended by:
Jennifer Toth, P.E.
Date
County Engineer
Approved and Accepted:
By:
Chairman, Board of Directors
Date
Attest:
By:
Clerk of the Board
Date
The foregoing development agreement has been reviewed pursuant to Arizona Revised Statutes
§11-1101 (B)(7)., as amended, by the undersigned Deputy County Attorney, who has determined
that it is in proper form and within the powers and authority granted to Maricopa County under
the laws of the State of Arizona.
By:
Deputy County Attorney
Date
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11/17/2022
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IN WITNESS WHEREOF, the undersigned have caused this Development Agreement to be
executed as of the day and year first above written
DEVELOPER
OLIVE CHARTER, LLC,
an Arizona limited liability company
By:
SWG Holdings, LLC, an Arizona limited liability company,
By Its Member and Manager
_________________________
Glenn L Way, Manager
STATE OF ARIZONA )
) ss
COUNTY OF MARICOPA
)
On this ______ day of _______________________, 20 ______, before me, the undersigned,
personally appeared____________________________, of
,
and
such
authorized representative(s) acknowledged that this document was executed on behalf of the corporation
for the purposes therein contained.
IN WITNESS WHEREOF, I hereunto set my hand and official seal.
My Commission Will Expire:
_________________________________
Notary Public
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List of Exhibits
Exhibit “A”
The Property
Exhibit “B”
The Project
Exhibit “C”
Intersection
Exhibit “D”
Right-of-way
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EXHIBIT A
The Property
A parcel of land commonly known as Maricopa County Assessor parcel number 502-08-001E and legally
described below:
The Southeast quarter of the Southwest quarter of Section 26, Township 3 North, Range 2 West of the
Gila and Salt River Base and Meridian, Maricopa County, Arizona;
EXCEPT the following described property:
The North 150 feet of the West 150 feet of the Southeast quarter of the Southeast quarter of the Southwest
quarter of Section 26, Township 3 North, Range 2 West of the Gila and Salt River Base and Meridian,
Maricopa County, Arizona; and
EXCEPT that portion conveyed to Maricopa County by deed in Recording No. 20170131021, records of
Maricopa County, Arizona, described as follows:
A portion of that property described in Document Number 2002-0199822, records of Maricopa County,
Arizona, lying within the Southeast quarter of the Southwest quarter of Section 26, Township 3 North,
Range 2 West of the Gila and Salt River Base and Meridian, Maricopa County, Arizona. Said portion
more particularly described as follows:
COMMENCING at the Southwest corner of the Southwest quarter of said Section 26, from which the
South quarter corner bears South 89 degrees 57 minutes 33 seconds East, a distance of 2,639.87 feet and
from which the West quarter corner bears North 00 degrees 23 minutes 37 seconds East, a distance of
2,633.01 feet;
Thence along the South line of said Southwest quarter, South 89 degrees 57 minutes 33 seconds East a
distance of 1319.94 feet;
Thence leaving said South line, North 00 degrees 25 minutes 11 seconds East a distance of 60.00 feet to
the Southwest corner of the property described in said Document Number 2002-0119822 and also the
POINT OF BEGINNING;
Thence along the West line of said property, North 00 degrees 25 minutes 11 seconds East a distance of
10.00 feet to a point on the North line of the South 70.00 feet of the said Southwest quarter;
Thence along said North line, South 89 degrees 57 minutes 33 seconds East a distance of 915.96 feet;
Thence South 00 degrees 26 minutes 45 seconds West, a distance of 10.00 feet to a point on the North
line of the South 60.00 feet of the said Southwest quarter;
Thence along last said North line, North 89 degrees 57 minutes 33 seconds West a distance of 915.95 feet
to the POINT OF BEGINNING; and
EXCEPT all right, title and interest in that portion of that certain property described in Document No.
2002-119822 lying within those parcels of land described in Docket 10541, Page 717, Docket 10409,
Page 1128, and Document No. 2007-0051639 records of Maricopa County, Arizona.
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EXHIBIT B
The Project
A new high school building as depicted in the construction plans and other documents associated
with Maricopa County Planning and Development permit numbers: B202102013, B202107728,
B202107729 and B202102552.
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EXHIBIT C
The Intersection
Intersection improvements as depicted in the construction plans and other documents associated
with Maricopa County Department of Transportation permit number TC202101026.
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EXHIBIT D
The Right-of-Way
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