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AGREEMENT TO PAY DEVELOPMENT FEES IN LIEU OF INCLUSIONARY HOUSING THIS AGREEMENT TO PAY AN AFFORDABLE HOUSING FEE 1N LIEU OF COMPLYING WITH INCLUSIONARY HOUSING REQUIREMENTS ("Agreement") is entered into this 8th day of .~,m,~y, ran3 . (the "Effective Date") by and between the Redevelopment Agency of the City of Riversiae, ("Agency") and Fairfield Van Buren L.P. ("Developer") (collectively, the "Parties"). 1. 1. Purpose. This Agreement is made pursuant to the sections of the California Redevelopment Law referred to hereinbelow. California Health & Safety Code section 33413(b)(2)(A)(i) requires redevelopment agencies to ensure that a specified percentage of all new and substantially rehabilitated housing units that are developed within redevelopment project areas are made available at affordable housing cost to low- and moderate-income households. Agency may fulfill its housing requirement by agreement pursuant to section 33413(b)(2)(A)(ii). This Agreement permits Developer to pay a fee in lieu of reserving 15% of the units within the Project (defined herein) for low- and moderate-income housing purposes. The fee to be paid herein shall be used by Agency for the purpose of creating low- and moderate- income housing within the City of Riverside in a manner consistent with applicable law. 2. 2. The Site. Developer is the owner of certain real property located in the City of Riverside, California. Said real property is commonly known as Assessor's Parcel Nos. 234-270-021-3 and 234-270-002-6 ("Site"). The Site is located within Agency's Arlington Redevelopment Project Area. 3. 3. The Proiect. Developer proposes a residential development consisting of two hundred fifty-six (256) multifamily residential units for the Site. Entitlements for the development were approved by the City of Riverside (the "City") on July 23, 2002, Approval Case No. PD003012 ("Project"). The Project does not currently set aside any on-site units at "affordable housing cost" within the meaning of California Health & Safety Code section 33411.2(a). Therefore, Developer desires to pay a development fee in lieu of setting aside on- site affordable housing cost units within the Project. 4. 4. Development Fee. The development fee to be paid as provided herein is a voluntary fee to be paid by Developer and is not a condition of development. Agency and Developer acknowledge that neither the City nor Agency have established a formula for fixing a development fee that would be assessed to developers of residential housing units within redevelopment project areas. The fee ultimately established by either Agency or the City may be less than or more than the amount Developer may pay under the temis of this Agreement. The Parties assume the risk that Agency or the City may later impose a development fee for housing developments that is less than or more than the fee paid by Developer under this Agreement. Developer and Agency have established the fee to be paid hereunder through re'ms-length negotiation and, as such, the fee shall be deemed to be reasonable. Developer acknowledges that it has exercised due diligence in determining that the development fee provided for herein is 094/012263-0198 347663,03 al 2/09/02