HomeMy WebLinkAboutCT 2024-0004; 2502 & 2518 Jefferson LLC; 2026-0033447; Local Improvement District Agreement2/9/26, 2:14 PM
RECORDING IS REQUESTED
FOR THE BENEFIT OF THE
CITY
OF CARLSBAD
WHEN RECORDED MAIL TO:
City Clerk
CITY OF CARLSBAD
1200 Carlsbad Village Dr.
Carlsbad, CA. 92008
Batch 20597044 Confirmation
DOC# 2026-003344 7
111111111111 lllll 11111111111111111111 lllll lllll lllll 111111111111111111
Feb 06, 2026 08:41 AM
OFFICIAL RECORDS JORDAN Z. MARKS,
SAN DIEGO COUNTY RECORDER FEES: $50.00 (SB2 Atkins: $0.00)
PAGES: 13
SPACE ABOVE THIS LINE FOR RECORDER'S USE
ASSESSOR'S PARCEL NO.: 155-251-18-00; 155-251-19-00
PROJECT ID: CT 2024-0004
PERMIT NUMBER: EAGREE2025-0035
PROJECT NAME: Jefferson Street Homes
CITY OF CARLSBAD
LOCAL IMPROVEMENT DISTRICT AGREEMENT
THIS AGREEMENT (the "Agreement") Is made this 5th day of February, 2026, by and between
the City of Carlsbad, a municipal corporation (the "City"}, and 2502 & 2518 Jefferson LLC., a California
limited liability company (the "Owner''}.
RECITALS
1. Owner is the owner of real property located In the City of Carlsbad, California, and described In
Exhibit A attached hereto and Incorporated herein by this reference (the "Property"}.
2. Owner has applied to the City for issuance of the above-identified permit to authorize the
development of the Property (the "Development Permit"},
3. The City has determined that additional public improvements may be necessary In the future in
order to allow Owner to proceed with development and, therefore, the Property would be
suitable for development as requested by Owner if certain public Improvements as described in
Exhibit B attached hereto and Incorporated herein by this reference (the "Improvements"} are
constructed.
4, The Municipal Code of the City of Carlsbad requires the dedication of the necessary rights-of-
way for and the construction by Owner of the Improvements or an agreement for the same for
certain developments as a condition of approval of the Development Permit for certain building
projects such as that proposed by owner.
5. The Owner has requested that the City approve the Development Permit prior the construction
of the Improvements.
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6. The City is willing to approve the Development Permit prior to the construction of the
Improvements as requested by the Owner if Owner approves of and consents to the formation
of an assessment district to include the Property for the purpose of financing the construction of
the Improvements.
NOW, THEREFORE, IT IS AGREED between the parties as follows:
Section 1. Recitals.
The foregoing recitals are true and correct.
Section 2. City's Obligations.
The City shall approve the Development Permit promptly following the execution of this Agreement by
the Owner and compliance with all applicable City ordinances and other requirements.
Section 3. Owner's Obligations.
Section 3.01.
Owner's Consent to and Approval of Formation of an Assessment District and Levy of Assessments.
In consideration for the approval of the Development Permit prior to the completion of the
construction of the Improvements, Owner hereby consents to and approves of:
A. the inclusion of the Property in an assessment district which may be formed by the City Council
of the City for the purpose of financing the construction of the Improvements (the "Assessment
District");
B. the levy of an assessment against the Property (the "Assessment") in an amount not to exceed
the estimated cost of construction of the Improvements, together with the estimated incidental
costs of such construction and the estimated costs of formation of the Assessment District and
issuance of any bonds to be issued to represent the Assessment. The foregoing costs
constituting the Assessment are set forth in Exhibit C attached hereto and incorporated herein
by this reference. The Assessment shall be subject to adjustment for inflation from the date
first written hereinabove until the date the Assessment is confirmed and levied by the increase
in the Construction Cost Index for Los Angeles as contained in the Engineering News Record or,
if the Construction Cost Index for Los Angeles is no longer published, an equivalent index
reasonably selected by the City Engineer. In granting the consents and approvals set forth in this
Section 3., Owner is acting for and on behalf of Owner, the Owner's successors, heirs, assigns,
and/or transferees and intends that such consents and approvals shall be binding upon each and
every such person.
Except as otherwise provided for in this Agreement, the consents and approvals given by Owner
shall be irrevocable.
Section 3.02
Owner's Grant of a Proxy to the City for Assessment Ballot Procedure. Owner hereby grants to the
City a proxy to act for and on behalf of Owner, the Owner's successors, heirs, assigns, and/or
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transferees for the limited purpose of completing and submitting an assessment ballot in support of
the levy of the Assessment in the proceedings to form the Assessment District.
In granting such proxy, Owner is acting for and on behalf of Owner, the Owner's successors, heirs,
assigns, and/or transferees and intends that such proxy shall be binding upon each and every such
person.
Except as otherwise provided for in this Agreement, the proxy granted by Owner shall be
irrevocable.
Section 4. Owner's Representations and Waiver of Rights.
Section 4.01
Owner's Representations. Owner hereby represents as follows:
A. Owner understands and acknowledges that:
1. Article XIIID of the Constitution of the State of California (" Article XIIID") and the Proposition
218 Omnibus Implementation Act (Government Code Section 53750 and following) (the
"Implementation Act") (Article XIIID and the Implementation Act may be referred to
collectively as the "Assessment Law") establish certain procedures and requirements which
apply when any agency such as the City considers the levy of assessments upon real
property.
2. The requirements established by the Assessment Law include the following:
a. The proportionate special benefit derived by each parcel to be assessed must be
determined in relationship to the entirety of the capital cost of the improvement for
which the assessment is to be levied;
b. No assessment may be imposed on any parcel which exceeds the reasonable cost of the
proportional special benefit conferred on that parcel from the improvement for which
the assessment is to be levied;
c. Only special benefits are assessable; and
d. Parcels within an assessment district that are owned or used by any agency, the State of
California or the United States of America shall not be exempt from assessment unless
the agency proposing to levy the assessment can demonstrate by clear and convincing
evidence that those publicly owned parcels in fact receive no special benefit from the
improvement for which the assessment is being levied.
3. The procedures established by the Assessment Law include:
a. The agency which proposes to levy an assessment (the "Agency") shall identify all
parcels which will have a special benefit conferred upon them from the improvement
for which the assessment is proposed to be levied and upon which an assessment is
proposed to be imposed.
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b. All assessments must be supported by a detailed engineer's report prepared by a
registered professional engineer certified by the State of California.
c. Prior to levying a new assessment , the Agency must give written notice by mail (the
"Assessment Notice") to the record owner, i.e., the owner of a parcel whose name and
address appears on the last equalized secured property tax roll, of each parcel proposed
to be assessed. The Assessment Notice must include: (i) the total amount of the
proposed assessment chargeable to the entire assessment district, (ii) the amount
chargeable to the record owner's parcel, (iii) the duration of the assessment payments,
(iv) the reason for the assessment, (v) the basis on which the amount of the proposed
assessment was calculated, and (vi) the date, time and location of a public hearing on
the proposed assessment.
d. The Assessment Notice must contain an assessment ballot that includes a place where
the person returning the assessment ballot may indicate his or her name, a reasonable
identification of the parcel, and his or her support or opposition to the proposed
assessment. The Assessment Notice must also include, in a conspicuous place, a
summary of the procedures for the completion, return and tabulation of assessment
ballots.
e. At the time, date and place stated in the Assessment Notice, the Agency shall conduct a
public hearing upon the proposed assessment. At such public hearing, the Agency shall
consider all objections or protests, if any, to the proposed assessment. At such public
hearing, any interested person shall be permitted to present written or oral testimony.
f. At the conclusion of the public hearing, the Agency shall tabulate the assessment ballots
submitted, and not withdrawn, in support or opposition to the proposed assessment. If
there is a majority protest against the imposition of a new assessment, the Agency may
not impose the assessment. A majority protest exists if the assessment ballots
submitted, and not withdrawn, in opposition to the proposed assessment exceed the
assessment ballots submitted, and not withdrawn, in favor of the proposed assessment.
In tabulating the assessment ballots, the assessment ballots shall be weighted by the
amount of the proposed assessment to be imposed upon each parcel for which an
assessment ballot was submitted.
4. The description of the requirements and procedures established by and contained in the
Assessment Law set forth above are intended only to summarize certain of such
requirements and procedures.
5. The City would not agree to issue the Development Permit prior to the construction of the
Improvements unless the City is assured that it will be legally able to impose the Assessment
on the Property. The assurance of the City's legal ability to impose the Assessment on the
Property is both a material inducement to and a material consideration for the City to enter
into this Agreement and agree to issue the Development Permit prior to the construction of
the Improvements.
B. Owner has had a reasonable opportunity to thoroughly read and review the Assessment Law in
its entirety and has further had a reasonable opportunity to consult with Owner's attorney
regarding the Assessment Law and the terms and conditions of this Agreement.
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Section 4.02
Waiver of Rights
A. In consideration of the approval by the City of the Development Permit prior to the construction
of the Improvements, Owner hereby waives Owner's rights under the Assessment Law to:
1. object or protest the ordering by the City of the construction of the Improvements and the
imposition of the Assessment at such public hearing so long as the amount of the
Assessment does not exceed the amount set forth in Exhibit C hereto adjusted for inflation
pursuant to Section 3.018 above;
2. submit an assessment ballot in support of or in opposition to the imposition of the
Assessment so long as the amount of the Assessment does not exceed the amount set forth
in Exhibit C hereto adjusted for inflation pursuant to Section 3.018 above; and
3. file or bring any protest, complaint or legal action of any nature whatsoever challenging the
validity of the proceedings to form the Assessment District and/or the validity of the
imposition of the Assessment on the Property.
8. In order that the City may be assured of its ability to legally impose the Assessment on the
Property and, therefore, be willing to enter into this Agreement and agree to approve the
Development Permit prior to the construction of the Improvements, Owner represents and
warrants that Owner has knowingly, intelligently and voluntarily waived for and on behalf of
Owner, Owner's successors, heirs, assigns and/or transferees, each and every one of the rights
specified in Section 4.02A above.
Section 5. Alternative Satisfaction of Owner's Obligations
Owner's obligations under Section 3 above may be satisfied by paying the amount set forth in
Exhibit "C" adjusted for inflation at any time prior to the formation of the assessment in which case
a release of this Agreement shall be recorded in the office of the San Diego County Recorder
Section 6. General Provisions.
Section 6.01
Conflict with Other Agreements or Requirements of the City. Except as specifically provided in this
Agreement, nothing contained herein shall be construed as releasing Owner from any condition of
development of the Property or requirement imposed by any other agreement with or requirement
of the City.
Section 6.02
General Standard of Reasonableness. Any provision of this Agreement which requires the consent,
approval, discretion or acceptance of any party hereto or any of their respective employees, officers
or agents shall be deemed to require that such consent, approval or acceptance not be
unreasonably withheld or delayed, unless such provision expressly incorporates a different
standard.
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Section 6.03
Entire Agreement; Amendment. This Agreement contains all of the agreements of the parties
hereto with respect to the matters contained herein and no prior or contemporaneous agreement
or understandings, oral or written, pertaining to any such matters shall be effective for any purpose.
No provision of this Agreement may be modified, waiver, amended or added to except by a writing
signed by the party against which the enforcement of such modification, waiver, amendment or
addition is or may be sought.
Section 6.04
Notices. Any notice, payment or instrument required or permitted by this Agreement to be given or
delivered to either party shall be deemed to have been received when personally delivered or
seventy-two (72) hours following deposit of the same in any United States Post Office in California,
registered or certified, postage prepaid, addressed as follows:
Owner:
City:
2502 & 2518 Jefferson, LLC
5315 Avenida Encinas
Carlsbad, CA 92008
City of Carlsbad
Attn: City Manager
1200 Carlsbad Village Dr
Carlsbad CA 92008
Each party may change its address for delivery of notice by delivering written notice of such change
of address to the other party.
Section 6.05
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the
successors and assigns of the parties hereto.
Section 6.06
Governing Law. This Agreement and any dispute arising hereunder shall be governed by and
interpreted in accordance with the laws of the State of California.
Section 6.07
Waiver. Failure by a party to insist upon the strict performance of any of the provisions of this
Agreement by any other party, or the failure by a party to exercise its rights under the default of any
other party, shall not constitute a waiver of such party's right to insist and demand strict compliance
by any other party with the terms of this Agreement thereafter.
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Section 6.08
Singular and Plural: Gender. As used herein, the singular of any work includes the plural, and terms
in the masculine gender shall include the feminine.
Section 6.09
Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an
original.
Section 6.10
Construction of Agreement. This Agreement has been reviewed by legal counsel for both the City
and the Owner and shall be deemed for all purposes to have been jointly drafted by the City and the
Owner. No presumption or rule that ambiguities shall be construed against the drafting party shall
apply to the interpretation or enforcement of this Agreement. The language in all parts of this
Agreement, in all cases, shall be construed as a whole and in accordance with its fair meaning and
not strictly for or against any party and consistent with the provisions hereof, in order to achieve the
objectives of the parties hereunder. The captions of the sections and subsections of this Agreement
are for convenience only and shall not be considered or referred to in resolving questions of
construction.
Section 6.11
Recitals: Exhibits. Any recitals set forth above and any attached exhibits are incorporated by
reference into this Agreement.
Section 6.12
Authority of Signatories. Each signatory and party hereto hereby represents and warrants to the
other party that it has legal authority and capacity and direction from its principal to enter into this
Agreement, and that all resolutions and/or other actions have been taken so as to enable such party
to enter into this Agreement.
Section 7. Covenant Running with the Land
The parties hereto intend that the burdens and obligations of the Owner under Section 3 above
constitute a covenant running with the land and that such covenant shall be binding upon all
transferees of the Property.
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Executed by Owner this J (p day of \.tJJW4Aj , 20 .d4--.
2502 & 2518 JEFFERSON, LLC, a California
limited liability company
CITY OF CARLSBAD, a municipal corporation of
the State of California
By:
By: Rincon Manager, LLC, a California
limited liability company
Its Manager
{Name of Owner} ~
Thomas St. Clair
(print name here)
Manager
(title)
APPROVED AS TO FORM:
CINDIE K. MCMAHON
City Attorney
/~ By: _r..__._~~~~~-~-~-
C. Dalton Sorich
Assistant City Attorney
8
GEOFF PATNOE
City Manager
By:
Engineering Manager
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ACKNOWLEDGMENT
A notary public or other officer completing this
certificate verifies only the identity of the individual
who signed the document to which this certificate is
attached, and not the truthfulness, accuracy, or
validity of that document.
State of California
County of San Diego
On __ I ,_/ J.'---~-+}_!J.---'CO_t9._(p=-----before me, _D_._L_yt_le_,_N_o_ta_r_y_P_u_bl_ic _______ _ 1 I (insert name and title of the officer)
personally appeared I h O m 0. S Sf. lJ tL; r'"
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are
subscribed to the within instrument and acknowledged to me that he/she/they executed the same in
his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the
person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENAL TY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.
WITNESS my hand and official seal.
Signature & ~
r{i I .-.•. • D. LYTLE 0 COMM. 11'2495302 V) ~, NOTARY PUBLIC· CALIFORNIA O~ X · · SAN DIEGO COUNTY _. t My Comm. 2f>!reaAug. 19, 2028 .,a
(Seal)
ACKNOWLEDGMENT
A notary public or other officer completing this
certificate verifies only the identity of the individual
who signed the document to which this certificate is
attached, and not the truthfulness, accuracy, or
validity of that document.
State of California
County of SAN DIEGO
on February 5, 2026 before me, HELEN GALLAGHER, NOTARY PUBLIC
(insert name and title of the officer)
personally appeared _J_a_s_o_n_S_._G_e_l_de_rt ____________________ _
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are
subscribed to the within instrument and acknowledged to me that he/she/they executed the same in
his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the
person(s), or the entity upon behalf of which the person(s) acted , executed the instrument.
I certify under PENAL TY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.
WITNESS my hand and official seal.
(Seal)
EXHIBIT "A"
LEGAL DESCRIPTION
THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF CARLSBAD, IN THE COUNTY OF SAN DIEGO,
STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS:
PARCEL 1:
THE NORTHERLY ONE-HALF OF LOT 11 AND All OF LOT 12, BLOCK "C" OF THE RESUBDIVISION OF A PORTION
OF SUNNY SLOPE TRACT, IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA,
ACCORDING TO MAP NO. 995, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, JUNE
06, 1906.
EXCEPTING THEREFROM THE EASTERLY 57 .5 FEET THEREOF.
ALSO EXCEPTING THEREFROM THAT PORTION THEREOF DESCRIBED AS FOLLOWS:
BEGINNING AT THE NORTHWEST CORNER OF SAID LOT 12; THENCE SOUTHERLY ALONG THE
WESTERLY LINE OF SAID LOT 12, A DISTANCE OF 12.49 FEET TO THE BEGINNING OF A TANGENT CURVE
CONCAVE SOUTHEASTERLY, HAVING A RADIUS OF 14.00 FEET; THENCE NORTHEASTERLY ALONG SAID
CURVE, THROUGH A CENTRAL ANGLE OF 63°10'04", AN ARC DISTANCE OF 15.43 FEET TO A POINT ON THE
NORTHERLY LINE OF SAID LOT 12; THENCE WESTERLY ALONG THE NORTHERLY LINE OF SAID LOT 12 TO THE
POINT OF BEGINNING.
APN: 155-251-18-00
PARCEL 2:
LOT 10 AND THE SOUTH HALF OF LOT 11, BLOCK "C" OF RESUBDIVISION OF PORTION OF SUNNY SLOPE
TRACT, IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO
MAP NO. 995, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, JUNE 06, 1906.
EXCEPTING THEREFROM THE EASTERLY 57.5 FEET THEREOF.
APN: 155-251-19-00
EXHIBIT B
DESCRIPTION OF THE IMPROVEMENTS
Undergrounding of all existing overhead utilities and installation of street lights, as needed, along the
subdivision frontage.
UNDERGROUND UTL.
SUBTOTAL
DESIGN {15%)
CONTINGENCY (20%)
ASSESS. DISTRICT COST
PLAN CHECK
INSPECTION
TOTAL
EXHIBIT C
THE ASSESSMENT
IMPROVEMENT CALCULATION SHEET
Quantity
138 LF
Cost
$96,600
$96,600
$14,490
$19,320
$5,000
$1,932
$9,274
$146,616