PRUDENTIAL 1996 - HACIENDA PARK MITIGATION

HACIENDA PARK MITIGATION AGREEMENT THIS HACIENDA PARK MITIGATION AGREEMENT ("Agreement") is entered as of the ~'t~th day of September, 1996 by and between THE PRUDENTIAL INSURANCE COMPANY OF AMERICA ("Prudential"), a New Jersey corporation, and THE CITY OF PLEASANTON, a California municipal corporation ("City"). ARTICLE 1-HACIENDA PARK MITIGATION OBLIGATIONS 1.1 Park Mitigation Obligations. The City has imposed on Prudential and/or certain parcels in the Hacienda Business Park ("HBP") certain park mitigation obligations. 1.1.1 PUD Condition No. 26. Condition No. 26 of the Conditions of Approval to City Ordinance No. 1325, the ordinance which approved the HBP PUD ("PUD Condition 26"), is set forth in its entirety below: Developer shall participate in the provision of parks and recreation facilities in a manner to be determined by the City following a study of the reasonable parks and recreation needs of employees of the north Pleasanton business parks. The manner of the participation, whether through development fees, assessment districts, or some other manner, shall be determined upon City review of the aforementioned study, and shall take into consideration park and recreation needs at present and in the future by phasing necessary improvements as appropriate. The City agrees to use its best efforts to assess all north Pleasanton business park developers and employers on a pro-rata basis for the park and recreation facilities made necessary by north Pleasanton development, and the City shall explore methods to accomplish this as part of the aforementioned study. 1.1.2 Neighborhood Park Condition. Condition "C" of the Conditions of Approval to City Ordinance No. 1533, the ordinance which rezoned approximately 79 acres of land in Hacienda from "OMPD" and "CPD" to "HDR" (the "Neighborhood Park Condition"). The Neighborhood Park Condition requires Prudential to work with the City to establish an approximately 5-acre park on or in the vicinity of the 79 acres. The satisfaction of the Neighborhood Park Condition is the subject of a separate agreement (the "Neighborhood Park Mitigation Agreement") which is currently being negotiated between Prudential and the City. ARTICLE 2 -SATISFACTION OF PUD CONDITION 26 2.1 Quantification of PUD Condition 26. The City has imposed park mitigation obligations similar to PUD Condition 26 on numerous major business parks in Pleasanton. After conducting several studies and surveys and meeting with various property owners whose properties were subject to a park mitigation obligation, the City agreed that amount of the park mitigation obligation would be $100/employee. The City has indicated that Prudential can satisfy PUD Condition 26 by assigning to the City the right to receive certain refunds/credits which would otherwise benefit or be payable to Prudential pursuant to Section 2.2 (the "Assignment"). This Assignment will result in Prudential paying substantially more than $100 per employee. 2.2. Assignment to City of Prudential's Right to Receive Refunds/Credits. Subject to Section 2.3, Prudential hereby assigns to the City its right to receive the following refunds, credits and reimbursements: