NOW, THEREFORE, the Navy and the School District hereby agree as follows:

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1 MEMORANDUM OF UNDERSTANDING BETWEEN THE DEPARTMENT OF THE NAVY AND SAN DIEGO UNIFIED SCHOOL DISTRICT CONCERNING A SCHOOL SITE AT THE FORMER NAVAL TRAINING CENTER This Memorandum of Understanding is made on this day of, 2002, by and between the United States Department of the Navy (hereinafter referred to as the Navy ) and the San Diego Unified School District (hereinafter referred to as the School District ), with respect to the following: RECITALS A. WHEREAS, the Commander, Navy Region Southwest has responsibility for developing military family housing for both the United States Marine Corps and Navy components in the San Diego, California area; and B. WHEREAS, in 1993, Naval Training Center San Diego, California (hereinafter referred to as NTC ) was designated for closure pursuant to the Defense Base Closure and Realignment Act of 1990 (Public Law ), as amended; and C. WHEREAS, the Deputy Assistant of the Navy for Conversion and Redevelopment approved the reassignment of a seventy two (72) acre parcel of real property at the former NTC to the Marine Corps; and 1

2 D. WHEREAS, the Navy is developing the military family housing at the NTC site, The Village at NTC through a Public/Private Venture (PPV) with the development team of San Diego Family Housing, LLC, ( SDFH ); and E. WHEREAS, the City of San Diego, California (hereinafter referred to as the City ), acting as the Local Redevelopment Authority under the Defense Base and Realignment Closure Act of 1990, supports the military family housing project at the NTC site; and F. WHEREAS, the Village at NTC current site plan incorporates a seven (7) acre parcel of real property for use as an elementary school and joint use playground/park; and G. WHEREAS, the Navy and the School District agree that a preschool on the former NTC site would benefit the families residing at the NTC site as well as the surrounding neighborhood, and that there may be an eventual need for an elementary school; and H. WHEREAS, the Navy and the School District agree to cooperatively work together to provide quality educational opportunities and a safe environment for the children who will reside in The Village at NTC. NOW, THEREFORE, the Navy and the School District hereby agree as follows: 2

3 AGREEMENT 1. In connection with the development of the five hundred (500) units of military family housing at the NTC site within the previously described seventy two (72) acres, the Navy agrees to make available to the School District a seven (7) acre cleared parcel of real property suitable for use as a preschool site (that could eventually serve as an elementary school site) and joint-use playground/park (hereinafter referred to as the Property ). The Property will be made available to the School District pursuant to a sublease from SDFH. The term of the sublease will coincide with the term of the lease entered into between the Navy and SDFH which is for a term of fifty (50) years (to expire on July 31, 2051) the School District shall pay annual rent of one dollar per year for each year during the term of the sublease and any extension thereof. 2. The following rights and conditions shall apply or be reserved to the Navy with respect to use of the Property: A. Upon making the Property available to the School District upon execution of the sublease, the Navy and SDFH shall no longer be responsible for the operation or maintenance of the seven (7) acre parcel of real property, including any of the new improvements made by the School District. B. The School District shall make a good faith effort to negotiate a Joint Use and Maintenance Agreement with the City for the use of the seven (7) acre parcel of real property. The Navy shall be provided with a copy of the Joint Use and Maintenance Agreement as soon as it 3

4 is executed and approved by City and School District. C. The School District shall design and construct the preschool in such a manner that the preschool facilities may be converted to an elementary school facility in the future if there is a need to locate an elementary school at the NTC site. D. Recognizing that some military family housing units have been completed and current and future residents occupying the military family housing will be in need of the planned school facilities, the School District shall commence construction of the preschool within eighteen (18) months from the date upon which the School District executes a sublease with SDFH. Failure of the School District to act diligently and take reasonable steps to commence construction within that time shall terminate the Navy s agreement to make the Property available to the School District. E. The portion of the preschool site developed and utilized by the School District as a joint-use playground/park shall be available for use by the residents of the Village at NTC redevelopment project area when not in use by the school. 4

5 IN WITNESS WHEREOF, the Navy and the School District have executed this Memorandum of Understanding as of the date first above written. UNITED STATES DEPARTMENT OF THE NAVY SAN DIEGO UNIFIED SCHOOL DISTRICT C. SCHANZE L. M. Smith Captain, CEC, Chief Operating Officer United States Department San Diego Unified School of the Navy District 5

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