D R A F T PETITION FOR CANCELLATION OF WILLIAMSON ACT CONTRACTS

REV 3.18.05 D R A F T PETITION FOR CANCELLATION OF WILLIAMSON ACT CONTRACTS TO: FROM: DATE: City of La Quinta East of Madison, LLC March 18, 2005 "Petitioner," East of Madison, LLC, submits the following "Petition" for Cancellation of Williamson Act Contracts: I. FACTUAL BACKGROUND REGARDING CANCELLATION 1. City. Adoption of Williamson Act Rules. On August 6, 2002, the City adopted Resolution 2002-123, which established Rules and Regulations relating to Williamson Act matters. Section 7 of Resolution 2002-123 provides that procedures for cancellation and nonrenewal.of Williamson Act contracts shall be those set forth in the Williamson Act. The cancellation. proposed by this Petition is compliant with the procedures set forth in the Williamson Act and the City s Williarnson Act Rules and Regulations. 2. Williamson Act Property. Petitioner is the owner of approximately 40 acres of real property comprised of two legal lots and identified as Assessor s Parcel Nos. 767-200-002 (!Parcel One") and 767-200-003 ("Parcel Two") (collectively, "Williamson Act Property"). A depiction of the Williamson Act Property is attached hereto as Exhibit "A". 3. Williams Act Contracts. On January 1, 1978, Parcel One and Parcel Two were separately made subject to a California Land Conservation Act of 1965 contract ("Williamson Act Contracts") between the then-owners of the Williamson Act Property and the County of Riverside ("County"). A copy of the recorded Williamson Act Contracts is attached hereto as Exhibit "B", and a legal description of the Williamson Act Property is set forth therein. 4. Agricultural Preserve No. 76, Amd. #2, Map #451. Upon recordation of the Williamson Act Contracts, the County designated the Williamson Act Property Coachella Valley Agricultural Preserve No. 76. 5. Notices of Non-Renewal. On December.26, 2002, Notices of Non-Renewal of the Williamson Act Contracts were recorded as Instrument Nos. 2002-776903 (Parcel One) and 2002-776904 (Parcel Two), Official Records of Riverside County, California. Copies of the Notices of Non-Renewal are attached hereto as Exhibit "C,. 6. Proposed Proiect..The Williamson Act Property is part of a larger property being developed as a world-class residential and golf community known as "The Madison Club." Cancellation of the Williamson Act Contracts is being sought in order to allow this development of the Williamson Act Property. Approximately 21 single-family residential units and portions of a golf course will be developed on the Williamson Act Property. Unless specified to the contrary, all 637787,04/SF D2659-003112-20-06/tpfftpt 1

references hereinafter to the "Project" shall mean the development of both the Williamson Act Property specifically and The Madison Club generally. 7. Annexation #15 and Related Documents. On January 13, 2003, Petitioner filed an application with the Riverside County Local Agency Formation Commission ("LAFCO") for approval of Annexation #15, which would authorize almexation of approximately 198 acres (including the subject Williamson Act Property) to the City ofla Quinta ("City"). In connection with said application, certain documents were prepared and/or submitted to LAFCO, and acted upon both before and after the annexation as follows: Resolution No. 2002-91 adopted by the City on June 18, 2002, certifying a "Mitigated Negative Declaration" prepared for Zone Change 2001-100, Annexation, and Pre-Almexation Designations of 200 Acres.(including the subject Williamson Act Propert~r). B. Notice of Determination filed by the City with th6 Riverside County Clerk on July 8, 2002 in compliance with Section 21152 of the Public Resources Code,.in. connection with the City s certification of the Mitigated Negative Declaration. C. LAFCO Approval of Annexation #15. On June 26, 2003, LAFCO adopted Resolution 33-03, which approved Annexation # 15. 8. Specific Plan 99-035~ Amendment #1 and Tentative Tract Map 33076. On February 1, the City Council took the following actions on Specific Plan 99-035, Amendment #1 and Tentative Tract Map 33076: Resolution 2005-015 adopted by the City on February 1, 2005, certifying an "Addendum" to Environmental Impact Report SCH #99061109 prepared for Specific Plan 99-035, Amendment #1, and Tentative Tract Map 33076 (including the subject Williamson Act Property). The Resolution was for changes made subsequent to the adoption of Resolution 2000-154, adopted by the City on November 21, 2000 certifying the Environmental Impact Report prepared for a Specific Plan, Tentative Tract Map, Street Vacation, and Conditional Use Permit for Environmental Assessment 99-380 for Specific Plan 99-035; Tentative Tract Map 29894; Street Vacation 2000-041; and Conditional Use Permit 200-053. Notice of Determination filed by the City with the Riverside County Clerk on February 26, 2005, in compliance with Section 21152 of the Public Resources Code, in connection with the City s certification of the Addendum (including the subject Williamson Act Property). Resolution 2005-016 adopted by the City on February 1, 2005, establishing Development Standards, Principles, and Guidelines and Programs for Lands. Totaling 1,018 Acres for Specific Plan 99-035, Amendment #1 (including. the subject Williamson Act Property). The Resolution was for changes made subsequent to the adoption of Resolution 2000-156, adopted by the City on November 21, 2000 approving specific plan development principals and guidelines for a golf and residential community for Specific Plan 99-035. D. Resolution 2005-017 adopted by the City on February 1, 2005, Approving the Subdivision of Approximately 472 Acres into 225 Lots and Miscellaneous Lots for 2 D2659-003/12-20-06/tpt/tpt

Tentative Tract 33076 (including the subject Williamson Act Property). The Resolution was for changes made subsequent to the adoption of Resolution 2000-157, adopted by the City on November 21, 2000 approving the subdivision of 988 acres into 819 residential lots and miscellaneous lots for Tentative Tract Map 29894. H. SUBSTANTIVE LAW REGARDING CANCELLATION 1. City. is Successor to County. and has.authority to Cancel Williamson Act Contracts. Gov. Code section 51235 provides that a city acquiring jurisdiction over an agricultural preserve by annexation shall have all the rights and responsibilities specified in the Williamson Act for cities or counties, including the right to enlarge, diminish or disestablish an agricultural preserve within its jurisdiction. Gov. Code section 51243 provides that after any annexation of property to a city, the city succeeds to all rights, duties and powers of the county under the contract. By completion of Annexation #15, the City succeeded to all rights, duties and powers of the County under the subject Williamson Act Contracts, and gained the authority to cancel same. 2. Requirements of Gov. Code section 51282(e). Gov. Code section 51282 provides that a Petition is to be accompanied with a "specified alternative use of the land" and a list of "those governmental agencies known by the landowner to have permit authority related to the proposed alternative use:" In this case, the proposed alternative use is the Project as defined above in this Petition, and as further defined in the Country Club of the Desert Specific Plan Amendment, which was approved by the City on February 1, 2005. A copy of the Amendment is on file with the City s Planning Department. Petitioner can provide further detail as to the alternative use if requested. As to the list of agencies known to the landowner to have permit authority related to the alternative use, those agencies are the Riverside County LAFCO, the City of La Quinta, the Coachella Valley Water District, the Regional Quality Control Board, the City of Indio, and the County of Riverside. 3. Findings Pursuant to Gov. Code section 51282. In order to cancel the Williamson Act Contracts, the City must fred either that "the cancellation is consistent with the purposes of [the Williamson Act]" or that "the cancellation is in the public interest." Gov. Code 51282. However, even though state law requires only one or the other of the findings, it is common practice to make both sets of findings. Therefore, this Petition does so. The City Council also must make the findings required by Pub. Res. Code section 21081, if section 21081 is applicable. As described below in Section II.3.C, in this case section 21081 is not applicable. A. Subdivision (b) of Gov. Code section 51282 provides that the cancellation of a contract shall be consistent with the purposes of Williamson Act only if the City Council makes all of the following five findings: (1) The cancellation is for land on which a Notice of Nonrenewal has been served pursuant to Gov. Code section 51245. Notices of Non-Renewal of the Williamson Act Contracts were recorded as Instrument Nos. 2002-776903 and 2002-776904, Official Records of Riverside County, California, on December 26, 2002, and were served on the City on, D2659-003/12-20-06/tpt]tpt 3

(2) The cancellation is not likely to result in the removal of adjacent lands from agricultural use. To the contrary, the Project continues the planned and orderly development of the City of La Quinta. The Williamson Act Property is being added to the Desert of the Country Club ("DOCC") Specific Plan area, which is adjacent to and extends along the entire west and south boundaries of the Williamson Act Property. The Project s mix of residential and private golf course uses continues the existing residential and private golf course uses on those lands in the DOCC Specific Plan area. The Project also is a continuation of the existing "Hideaway" development, a single-family residential and golf community that borders the Project to the west and is substantially constructed. Because these lands are already developed, the cancellation. cannot result in their removal from agricultural uses. As to the lands to the Project s east, although most if not all of these lands are not yet developed, these lands are either in the preliminary stages of the development process or are planned for future development, in accordance with the City s General Plan. Therefore, it would be~the City s long-term planning and growth policies, and not this cancellation, that causes the removal of these lands from agricultural use. As to the lands to the Project s north, these lands are located in the City of Indio and are used for equestrian shows and other equestrian activities at the Empire Polo Grounds, as well as other outdoor events. The City of Indio s General Plan and Zoning authorize a small amount of residential uses on these lands. Because the uses on. these lands are already non-agriculture and!or planned for residential uses, this cancellation cannot cause the removal of these lands from agricultural use. (3) The cancellation is for an alternative use that is consistent with the applicable provisions of the City s General Plan. The General Plan designates the Williamson Act Property as "Low Density Residential" with an "Agriculture~questrian" Overlay. See General Plan Land Use Diagram. The Low Density Residential designation authorizes up to four (4) dwelling units per acre. The Project s net density of 1.38 dwelling units per acre falls within this limitation. The Agriculture/Equestrian Overlay permits private golf course uses when those uses are authorized in an adopted specific plan. The City s adoption of the CCOD Specific Plan Amendment will fulfill this requirement. The Project also is consistent with numerous policies in the Land Use, Traffic and Circulation, Open Space, Parks and Recreation, Natural Resources, and Infrastructure and Public Services Elements of the General Planl development. (4) The cancellation will not result in noncontiguous patterns of urban To the contrary, the Project continues the City s orderly pattern of urban development and growth. As described above in Finding No. 2, the lands adjacent to 9rid along the Project s entire south and west boundaries are existing residential and golf communities. To the Project s east, although these lands are generally not as far along in the development process, these lands are planned for urban development and will continue the orderly growth and expansion of the City. To the Project s north, in the City of Indio, these lands are either currently occupied with, or are planned for, uses that are compatible with urban development. D2659-003/12-20-06/tpt/tpt 4

The City s General Plan establishes a planning protocol requiring the annexation and development of properties closest to the City s core first, and then systematically expanding outward without skipping over undeveloped lands. The cancellation of the Williamson Act Contracts is consistent with this protocol. The cancellation therefore does not create or result in "leapfrog" development with pockets of undeveloped lands. On the other hand, not canceling the Williamson Act Contracts and Continuing agricultural uses at the Williamson Act Property would result in a noncontiguous pattern of development because the Williamson Act Property would be the only agricultural use in an area of urban development. Agricultural uses at the Property would be inconsistent and disorderly. Public infrastructure near the Project has been constructed at a scale and configured, where appropriate, to anticipate the urban development of the Williamson Act Property. Sewage disposal will be provided by the Coachella Valley Water District ("CVWD"), and an existing 27" gravity sewer main, with sufficient capacity to serve the Project, exists in Madison Avenue and will connect to the Project. The Project has a guaranteed potable water supply pursuant to an agreement with the CVWD. Irrigation water will be provided by the CVWD via the Coachella Canal. The Project s roads will connect to existing roads that have been sized to accommodate the Project. As to impacts on schools, the developer will mitigate all schools impacts through the payment of fees in accordance with state and local law. The Project applicant is fully capable of, and very likely to, carry through the development of the Project. The developer is East of Madison, LLC, a partnership between Nationwide Realty Investors ("NRI") and Discovery Land Company, Inc. ("Discovery"). NRI is a wholly owned real estate investment and development arm of Nationwide Insurance, one of the largest insurance and financial services companies in the world, with more than $148 billion in statutory assets. Discovery, managing partner of East of Madison, LLC, is a San Francisco-based real estate development firm.specializing in the creation of world-class residential and golf communities. Discovery has built nine such projects, with three more in the pre-development stages, including The Madison Club. Under the auspices of ND La Quinta Partners, LLC, NRI and Discovery developed The Hideaway, a 560-acre residential and golf community immediately west of The Madison Club that is also part of the underlying CCOD Specific Plan area. (5) There is no proximate, non-contracted land which is both available and suitable for the use to which it is proposed the contracted land be put, or, the development of the contracted land would provide more contiguous patterns of urban development than development of proximate, non-contracted land. As to the first finding, "proximate non-contracted land" means land not restricted by contract that is sufficiently close that it can serve as a practical alternative for the contracted land. Gov. Code 51282(c). "Suitable" for the proposed use means that the salient features of the proposed use can be served by land not restricted by contract. Id. In this case, no proximate non-contracted land is both suitable and available for the proposed uses of the Project. The lands to the Project s west, south, and east all are proximate and non-contracted. However, the lands to the Project s west and south are all part of the CCOD Specific Plan area, and are planned for development as residential and golf communities. The lands to the Project s east also are already planned for development. Because these lands already are developed or planned for development, they cannot serve as a substitute for the proposed uses of the Project. As to the lands located to the Project s north, five parcels proximate to the Project are under Williamson Act contract. As to those lands that are proximate and non-contracted, they are located outside of the City s boundary, are currently occupied with existing equestrian-related D2659-003/12-20-06/tpt/tpt 5

and outdoor event uses, and/or are zoned for only a limited amount of residential uses. Therefore, they are not available for the proposed uses. As to the second fmding, development of the Williamson Act Property will Provide more contiguous patterns of urban development than the development of proximate, non-contracted land because the only proximate, non-contracted land that is available and suitable are located farther away from the City s existing urban development than the Williamson Act Property. The City s existing urban development is adjacent to the Project to the south and west. The only proximate, non-contracted lands are located to the north and east of the Williamson Act Property, farther away from the City s core and existing urban development. Development of the proximate, non-contacted lands prior to the Williamson Act Property would result in "leapfrog" development, with the agricultural uses at the Property interrupting the pattern of urban development extending out from the City s core. Such development would be inconsistent with the City s orderly planning protocol of systematic development radiating outward from the City core. " B. Subdivision (c).of Gov. Code section 51282 provides that the cancellation of a contract shall be in the "public interest" only if the City Council makes both of the following findings: (1) Other public concerns substantially outweigh the objectives of the Williamson Act. Cancellation of the Williamson Act Contracts and development of the Williamson Act Property is consistent with the City s General Plan, which calls for the development of the Property with residential and golf course uses. The General Plan designates the Property for low density residential uses, and authorizes golf course uses when those uses are set forth in an adopted specific plan. See General Plan Land Use Diagram. The City s adoption of the CCOD Specific Plan Amendment will fulfill this requirement. Cancellation of.the Williamson Act Contracts also is consistent with numerous policies in the Land Use, Traffic and Circulation, Open Space, Parks and Recreation, Natural Resources, and Infrastructure and Public Services Elements of the General Plan. Development of the Williamson Act Property fulfills the City s protocol for orderly and well-planned development. The City s General Plan establishes a planning protocol requiring the annexation and development of properties closest to the City s core first, and then systematically expanding outward without skipping over undeveloped lands. The cancellation of the :Williamson Act Contracts is consistent with this protocol. The lands adjacent to and along the Project s entire south and west boundaries are existing residential and golf communities. To the Project s east, although the lands are generally not as far along in the development process, these lands are planned for urban development and will continue the orderly growth and expansion of the City. To the Project s north, in the City of Indio, these lands are either currently occupied with, or are planned for, uses that are compatible with urban development. The cancellation does not create or result in "leapfrog" development with pockets of undeveloped lands located between existing urban development and the Williamson Act Property. On the other hand, not canceling the Williamson Act Contracts and continuing agricultural uses at the Property would create a noncontiguous pattern of development because the Property would be the only agricultural use in an area of urban development. Agricultural uses at the Property therefore would be inconsistent and disorderly. D2659-003/12-20-06/tpt/tpt 6

According to the Legislature, the availability of housing is a matter of "vital statewide importance," and "the early attainment of decent housing and a suitable living environment for every California family is a priority of the highest order." Gov t Code 65580(a). The attainment of this goal "requires cooperative participation between government and the private sector" (Gov t Code 65580(b)), and the use of state and local governmental power "to facilitate the improvement and development of housing" (Gov t Code 65580(d)). The cancellation of the Williamson Act Contracts will fulfill the foregoing state policies promoting the development of much-needed housing because the Project proposes to provide approximately 21 residential units. The Project s residential development also will contribute to the City s obligation under the state Planning and Zoning Law to provide its regional fair share of housing. Public infrastructure near the Project has been Constructed at a scale and configured, where appropriate, to anticipate the urban development of the Williamson Act Property. Sewage disposal will be provided by the Coachella Valley Water District ("CVWD"), and an existing 27" gravity sewer main, with sufficient capacity to serve the Project, exists in Madison Avenue and will be connected to the Project. The Project has a guaranteed potable water supply pursuant to an agreement with the CVWD. Irrigation water will be provided by the CVWD via the Coachella Canal. The Project s roads will connect to existing roads that have been sized to accommodate the Project. As to impacts on schools, the developer will mitigate all schools impacts through the payment of fees in accordance with state and local law. The Project applicant is fully capable of, and very likely to, carry through the development of the Project. The developer is East of Madison, LLC, a partnership between Nationwide Realty Investors ("NRI") and Discovery Land Company, Inc. ("Discovery"). NRI is a wholly owned real estate investment and development arm of Nationwide Insurance, one of the largest insurance and financial services companies in the world, with more than $148 billion in statutory assets. Discovery, managing partner of East of Madison, LLC, is a San Francisco-based real estate development firm specializing in the creation of world-class residential and golf communities. Discovery has built nine such projects, with three more in the pre-development stages, including The Madison Club. Under the auspices of ND La Quinta Partners, LLC, NRI and Discovery developed The Hideaway, a 560-acre residential and golf community immediately west of The Madison Club that is also part of the underlying CCOD Specific Plan area. (2) There is no proximate, non-contracted land which is both available and suitable for the use to which it is proposed the contracted land be put, or, the development of the contracted land would provide more contiguous patterns of urban.development than development of proximate, non-contracted land. As to the first finding, "proximate non-contracted land" means land not restricted by contract that is sufficiently close that it can serve as a practical alternative for the contracted land. Gov. Code 51282(c). "Shitable" for the proposed use means that the salient features of the proposed use can be served by land not restricted by contract. Id. In this case, no proximate non-contracted land is both suitable and available for the proposed uses of the Project. The lands to the Project s west, south, and east all are proximate and non-contracted. However, the lands to the Project s west and south are all part of the CCOD Specific Plan area and are planned for development as residential and golf communities. The lands to the Project s east also are already planned for development. Because these lands already are developed or planned for development, they cannot serve as a substitute for the proposed uses of the Project. As to the lands located to the Project s north,, five parcels proximate to the Project are under Williamson Act contract. As to those lands that are proximate and non-contracted, they D2659-003/12-20-06/tpt/tpt 7

are located outside of the City s boundary, are currently occupied with existing equestrian-related and outdoor event uses, and/or are zoned for only a limited amount of residential uses. Therefore, they are not available for the proposed uses. As to the second finding, development of the Williamson Act Property will provide more contiguous patterns of urban development than the development of proximate, non-contracted land because the only proximate, non-contracted land that is available and suitable are. located farther away from the City s existing urban development than the Property. The City s existing urban development is adjacent to the. Project to the south and west. The only proximate, noncontracted lands are located to the north and east of the Williamson Act Property, far~her away from the City s core and existing urban development. Development of the proximate, noncontacted lands prior to the Williamson Act Property would result in "leapfrog" development, with the agricultural uses at the Property interrupting the pattern of urban development extending out from the City s core. Such development would be inconsistent with the City s orderly planning protocol of systematic development radiating outward from the City core. C. Subdivision (t) of Gov. Code section 51282 provides that the City Council must make the findings required by Pub. Res. Code section 21081, if Section 21081 is applicable. Section 21081 does not apply to the Project because an environmental impact report has not identified one or more significant effects on the environment that would occur if the Project is approved or carried out. To the contrary, the City certified both an Addendum to the CCOD Specific Plan EIR and a Mitigated Negative Declaration for the Project, each of which concluded that the Project would not cause any significant environmental impacts. 4. Determining Cancellation Fee under Gov. Code section 51283. Gov. Code section 51283 sets forth provisions for determining the fee that must be paid upon cancellation of a Williamson Act contract, as follows: A. Subdivision (a) of Gov. Code section 51283 provides that prior to any City Council action tentatively approving the cancellation, the County Assessor shall determine the current fair market value of the land as though it were free of the contractual restriction ("cancellation valuation"), and the Assessor shall certify to the Council the cancellation valuation of the land for the purpose of determining the cancellation fee. Discussion: Pursuant to previous discussions with an authorized representative of the County Assessor s office in Indio, a copy of this Petition will be delivered to the County Assessor concurrently with the filing of same with the City. B. Subdivision (b). of Gov. Code section 51283 provides that prior to any Council action tentatively approving the cancellation, the Council shall determine and certify to the County Auditor the amount of the cancellation fee which the landowner shall pay the County Treasurer upon cancellation, and that the fee shall be an amount equal to 12.5% of the cancellation valuation of the property. C. Subdivision (c) of Gov. Code section 51283 contains provisions relating to fee waivers which are not relevant to this Petition. D. Subdivision (d) of Gov. Code section 51283 provides that the first $2,036,000 of revenue paid to the State Controller pursuant to Subdivision (e) in the 2004-05, and any other amount as approved in the final State budget for each fiscal year thereafter, shall be deposited in the Soil Conservation Fund. D2659-003/12-20-06/tpl/tpt 8

E. Subdivision (e) of Gov. Code section 51283 provides that when cancellation fees are collected, they shall be transmitted by the County Treasurer to the State Controller and deposited in the State General Fund, except as provided in Subdivision (d), within 30 days after the execution of a Certificate of Cancellation of Contract by the City Council, as specified in Subdivision (b) of Section 51283.4. 5. Finalizing Contract Cancellation and Paving Fee under Gov. Code section 51283.4. Gov. Code section 51283.4 sets forth provisions for finalizing cancellation and paying the fee, as follows: A. Subdivision (a) of Gov. Code section 51283.4 provides that upon tentative approval of a petition to cancel accompanied by a proposal for a specified alternative use of the land, the Clerk of the City shall record a Certificate of Tentative Cancellation, which shall set forth the name of the landowner, the fact that a Certificate of Cancellation of Contract will be recorded when.the.specified conditions and contingencies are satisfied, a description of the conditions and contingencies, and a legal description of the property. Conditions to be satisfied include payment in full of the cancellation fee. Contingencies to be satisfied shall include a requirement that the landowner obtain all permits necessary to commence the project. B. Subdivision (b) of Gov. Code section 51283.4 provides that the landowner shall notify the City Council when the. landowner has satisfied the conditions and contingencies enumerated in the Certificate of Tentative Cancellation. Within 30 days of receipt of the notice, and upon a determination that the conditions and contingencies have been satisfied, the Council shall execute a Certificate of Cancellation of Contract and record it. HI. PROCEDURAL MATTERS REGARDING CANCELLATION 1. Gov. Code section 51284 provides that no contract may be cancelled until after the city has given notice of, and has held, a public hearing on the matter. Notice shall be published pursuant to Gov. Code section 6061 (published one time in a newspaper of general circulation) and mailed to every owner of land under contract within one mile of the exterior boundary of the contracted property, and, at least 10 working days prior to the hearing, a notice of the hearing and a copy of the petition shall be mailed to the State Director of Conservation. Further, within 30 days of the tentative cancellation of the contract, the City shall publish a notice of its decision, including the date, time and place of the public hearing, a general explanation of the decision, the findings made per Section 51282, and a general description, in text or by diagram, of the land under contract, as a display advertisement of at least 1/8 ~ page in the newspaper. (The Section provides that the publication shall be for informational purposes only, and shall create no right that would otherwise not exist.) Discussion: A list of names, addresses and Assessor s Parcel Numbers of owners of land under contract within one mile of the exterior boundary of the subject Williamson Act Property will be submitted concurrently with this Petition. In addition, see Summary of Petition Request set forth below. 2. Gov. Code section 51284.1 sets forth procedures upon filing of a Petition for Cancellation of a Williamson Act Contract, as follows: D2659-003/12-20-06/tpt/tpt 9

A. Subdivision (a) of Gov. Code section 51284.1 provides that when a petition for cancellation is filed, and the City accepts the petition as complete under Section 65943, the City shall immediately mail a notice to the Director of Conservation, and that the notice shall include: (1) (2) (3) (4) A copy of the petition A copy of the contract A general description, in text or by diagram, of the land subject to cancellation of the contract. The deadline for submitting comments regarding the proposed cancellation, which deadline shall be consistent with the Permit Streamlining Act, commencing with Gov. Code section 65920, but in no case be less than 30 days prior to the scheduled action by the Council. B. Subdivision (b). of Gov. Code section 51284.1 provides that the.city Council shall send the information to the County Assessor that is necessary to describe the land subject to the proposed cancellation. The information shall include the name and address of the landowner petitioning the cancellation. C. Subdivision (c) of Gov. Code section 51284.1 provides that the Director of Conservation shall review the proposed cancellation and submit comments to the City by the deadline set forth in paragraph (4) of Subdivision (a), and that any comments shall advise the City on the f mdings required by Section 51282. D. Subdivision (d). of Gov. Code section 51284.1 provides that.prior to acting on the proposed cancellation, the City Council shall consider comments submitted by the Director of Conservation. IV. SUMMARY OF PETITION REQUEST Based upon the foregoing, Petitioner requests that the City expeditiously (and in any event within applicable time periods set forth in the Permit Streamlining Act) undertake the following: 1. Review this Petition and accept it as complete under Gov. Code section 65943. 2. In compliance with Subdivision (a) of Gov. Code section 51284.1, mail a notice to the California State Director of Conservation, 801 K Street, Sacramento, California 95814, which notice shall include: No B. C. D. A Copy 0fthis Petition (with attached Exhibits) A copy of the subject Williamson Act Contracts. (Exhibit "B" attached.) A diagram of the subject Williamson Act Property. (Exhibit "A" attached.) The deadline for submitting comments regarding the proposed cancellation, which deadline shall be consistent with the Permit Streamlining Act, but in no case be less than 30 days prior to the scheduled action by the City Council. 3. Consistent with the requirements of Subdivision (a) of Gov. Code section 51283, mail a copy of this Petition (with attached Exhibits), to the Riverside County Assessor s Office, C/O Scott Hanna, 82675 Highway 111, Room 309, Indio, California 92201, with instructions to initiate appraisal procedures in accordance with Gov. Code section 51283. 10 D2659-003/12-20-06/tpfftpt

4. Consistent with the requirements of Subdivision (19) of Gov. Code section 51283, prior to any action tentatively approving cancellation of the subject Williamson Act Contracts, determine (based upon cancellation value information received from the County Assessor s Office) and certify to the County Auditor the amount of the cancellation fee (12.5% of the cancellation value), which Petitioner shall pay the County Treasurer upon cancellation. 5. Schedule (set a date, time and place of) a public hearing with respect to cancellation of the subject Williamson Act Contracts and the matters contained herein. 6. Publish notice of the public hearing pursuant to Gov. Code section 6061. 7. At least I0 working days prior to the date scheduled for the public hearing, mail notice of the hearing to every owner of land under contract within one mile of the exterior boundary of the subject Williamson Act Property. 8. At least 10 working days prior t0the date scheduled for the public hearing, mail notice of the hearing to the Director of Conservation. 9. In compliance with Subdivision (d) of Gov. Code section 5!284.1, prior to acting on the cancellation of the subject Williamson Act Contracts, consider comments, if any, submitted by the Director of Conservation. 10. At the scheduled public hearing, after receipt of any testimony and input, establish appropriate conditions and contingencies pursuant to Subdivision (a) of Gov. Code section 51283.4 which shall include, without limitation, payment by Petitioner of the full amount of the cancellation fee, and take action granting tentative approval of cancellation of the subject Williamson Act Contracts. 11. In compliance with Subdivision (a) Gov. Code section 51283.4, upon tentative approval of cancellation of the Williamson Act Contracts, cause the Clerk of the City to record a Certificate oftentative Cancellation, which shall set forth the name of Petitioner, as the landowner, the fact that a Certificate of Cancellation of Contract will be recorded when the specified conditions and contingencies are satisfied, a description of the conditions and contingencies, and a legal description of the subject Williamson Act Property. 12. Upon receipt of the full amount of the cancellation fee from Petitioner, transmit same to the County Treasurer. 13. In compliance with Gov. Code section 51284, within 30 days of the tentative cancellation of the subject Williamson Act Contracts, publish a notice of the City s decision, including the date, time and place of the public hearing, a general explanation of the decision,.the fmdings made per Gov. Code section 51282, and a general description, in text or by diagram, of the subject Williamson Act Property, as a display advertisement of a least 1/8 t~ page in a local newspaper of general circulation. 14. Upon satisfaction of all conditions and contingencies, cause the Clerk of the City to record a final Certificate of Cancellation. D2659-003/12-20-06/tpt/tpt 11

Respectfully Submitted: East of Madison, LLC A Delaware Limited Liability Company Date: By: D2659-003/I 2-20-06/tpt/tpt 12