HomeMy WebLinkAboutResolution No. 6620 0
RESOLUTION 662
RESOLUTION OF THE AZUSA REDEVELOPOMENT AGENCY
BOARD OF DIRECTORS APPROVING AN EXCLUSIVE
NEGOTIATION AGREEMENT BETWEEN THE AGENCY AND
TRAMMELL CROW COMPANY FOR CERTAIN PROPERTY
LOCATED WITHIN THE CENTRAL BUSINESS DISTRICT
REDEVELOPMENT PROJECT AREA
WHEREAS, the Agency is authorized by the Community
Redevelopment Law and other applicable law to undertake
redevelopment projects in order to best accomplish the purposes
and goals of the redevelopment plans for various project areas;
WHEREAS, The Agency desires to redevelop the property set
forth in the agreement as attached in order to best accomplish
the goals and purposes of the Redevelopment Plan of the Central
Business District Redevelopment Project Area, and the Developer,
Trammell Crow Company desires to redevelop said property;
NOW, THEREFORE, BE IT RESOLVED, by the Board of Directors of
the Redevelopment Agency of the City of Azusa as follows:
SECTION 1. That certain Exclusive Negotiation Agreement by
and between the Redevelopment Agency of the City of Azusa and
Trammell Crow Company, dated as of November 20, 1989, is hereby
approved and the Chairman of the Agency is hereby authorized to
sign and execute said Agreement on behalf of the Agency in
substantially the form as attached hereto and incorporated herein
by reference.
SECTION 2. The Secretary shall certify the adoption of this
Resolution.
APPROVED AND ADOPTED this 4th day of DP(--Pmherl989.
Eugeq� F. Moses, Chairman
I HEREBY CERTIFY that the foregoing resolution was duly adopted
by the Redevelopment Agency of the City of Azusa at a regular
meeting thereof, held on the gi,hday of December , 1989.
AYES: DIRECTORS: AVILA, NARANJO, LATTA, MOSES
NAYES: DIRECTORS: NONE
ABSENT: DIRECTORS: NONE
ABSTAIN: D�IRECTOORRS: S�TEEMRICH
Secretary
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EXCLUSIVE NEGOTIATION AGREEMENT BETWEEN
THE REDEVELOPMENT AGENCY OF THE CITY OF
AZUSA AND TRAMMEL CROW COMPANY
This Exclusive Negotiation Agreement ("Agreement") is
entered into by and between he Redevelopment Agency of the City
of Azusa, a public body, corporate and politic ("Agency") and
Crow Los Angeles Developm nt, Inc. a Texas corporation
("Developer"), and for the convenience of the parties shall be
dated as of December 4, 1989 In consideration of their mutual
covenants and obligations as set forth herein, the parties hereto
agree as follows:
RECITALS
The parties hereto ack#adledge
A. Tq'e Agen d si,�res to have certain property within the
Aa��sa Ce al B siness District Redevelopment Project
Aneel� dev5lope n accordance with the Redevelopment
Pl�t1 fqqr sai project area, which property is
specifi ally described on Exhibit "A" which is attached
heeto and incorporated herein by reference
("�roperty");
B. De*eloper desires to develop said Property;
C. This Agreement is an agreement to negotiate only and
nothing contained herein binds either party to enter
into a disposition and development agreement with
-respect to the Property;
D. The Agency's power and authority to acquire and
redevelop property derives from the Community
Redevelopment Law (Health & Safety Code Sections 33000,
et. seq.) and the Agency must comply with all
procedural reqirements of the Community Redevelopment
Law in carrying out its redevelopment activities.
IT IS HEREBY MUTUALLY AGREED AS FOLLOWS:
I. [5101] NEGOTIATIONS
A. [5101] Exclusive Negotiations
Agency and Developer hereby agree to negotiate
diligently and in good faith a disposition and
development agreement for the Property conditioned upon
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redevelopment of the Property by Developer. Agency
agrees that it will not negotiate with any other entity
for development of the Property during the term of this
Agreement; provided, however, that nothing in this
Agreement shall preclude the Agency from negotiating
with the owners and tenants of the Property in
accordance with the rights of said owners and tenants
to participate in the redevelopment of the Property
pursuant to applicable law.
B. [5102] Period of Negotiations
The Agency agrees to negotiate with the Developer until
April 1, 1990. If by April 1, 1990, the Developer has
not signed and submitted a disposition and development
agreement to the Agency (together with a deposit, the
amount of which is to be negotiated), then this
Negotiation Agreement shall automatically terminate
unless the negotiation period has been mutually
extended by the Agency and the Developer. The parties
hereto may mutually terminate this Agreement at any
time by written agreement.
C. [5103) Deposit
Developer shall post a deposit in the amount of Ten
Thousand Dollars ($10,000) to be held by the Agency
during the term of this Agreement. If the negotiations
culminate in the approval of a disposition and
development agreement for the Property, then the
$10,000 deposit shall be refunded (without interest)
to the Developer, or the deposit will be applied
(without credit for interest) to the deposit which will
be required by the disposition and development
agreement for the Property. In the event that this
Agreement expires without execution of a disposition
and development agreement for the Property for any
reason other than Developer's bad faith, the deposit
shall be refunded to the Developer without interest.
IN THE EVENT THAT THIS AGREEMENT EXPIRES WITHOUT THE
EXECUTION OF A DISPOSITION AND DEVELOPMENT AGREEMENT
DUE SOLELY TO DEVELOPER'S BAD FAITH NEGOTIATIONS, THE
AGENCY SHALL HAVE THE RIGHT AND OPTION TO RETAIN THE
$10,000 DEPOSIT AS LIQUIDATED DAMAGES AND/OR AS
COMPENSATION FOR ITS EXPENSES, TIME AND EFFORT, AND
FOR HAVING KEPT THE PROPERTY OUT OF THE REDEVELOPMENT
MARKET DURING THE PENDENCY OF THIS AGREEMENT. EACH OF
THE PARTIES HEREBY AGREES THAT THE AGENCY'S RIGHT TO
RETAIN THE $10,000 DEPOSIT SHALL BE THE AGENCY'S SOLE
AND EXCLUSIVE REMEDY IN THE EVENT THAT A DISPOSITION
AND DEVELOPMENT AGREEMENT IS NOT ENTERED INTO SOLELY
DUE TO DEVELOPER'S BAD FAITH NEGOTIATIONS. EACH OF THE
PARTIES ACKNOWLEDGES AGREEMENT TO THE FOREGOING
PROVISION AND THE REASONABLENESS THEREOF UNDER THESE
CIRCUMSTANCES BY SEPARATELY SIGNING BELOW:
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CITY OF AZUSA
REDEVELOPMENT AGENCY
Chairman
CROW LOS ANGELES DEVELOPMENT, INC.
Authorized Agent
II. [5200] PROPOSED DEVELOPMENT
A. [5201] Development Concept
The proposed development to be negotiated hereunder
shall consist of a neighborhood commercial shopping
center. Residential uses may be proposed for a residual
portion of the site if determined by Agency and
Developer to be necessary and appropriate. Nothing
herein shall prevent Agency and Developer from
discussing land use alternatives to a neighborhood
shopping center.
B. [5202] Scope and Schedule of Development
Developer shall confer with Agency staff then prepare
and submit to Agency as reasonably requested:
1. Evidence of any tenant commitments obtained by
Developer for the site.
2. A schedule of the estimated construction timeframe
and estimated development costs;
3. An estimate of project income and a proforma
statement of project return adequate to enable the
Agency to evaluate the project's economic
feasibility;
4. Evidence of the ability to finance the project;
and
5. Such other information as Agency reasonably
determines necessary to conduct meaningful
negotiations.
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C. [5203] Developer's Findings, Determinations, Studies
and Reports
The Developer agrees to make monthly written reports
advising the Agency on all material matters and all
material studies being made. The Developer further
agrees to supplement such written reports with oral
progress reports as requested from time -to -time by the
Agency. In the event negotiations do not result in a
disposition and development agreement, the Developer
shall submit to the Agency all findings and
determinations regarding the proposed development, and
copies of all studies and reports made specifically for
this proposed development; provided, however, that
Developer shall not be required to submit to the Agency
any marketing projections, studies, sales research,
architectural work or other similar items which
Developer reasonably deems to be of a proprietary
nature.
D. [5204] Additional Steps and Procedures
Both Agency and Developer acknowledge that the
following steps and procedures may need to be studied
and/or implemented during the negotiations contemplated
by this Agreement.
1. Preparation of environmental documentation
necessary to comply with the California
Environmental Quality Act ("CEQA"). The Agency
agrees to use reasonable efforts to satisfy the
requirements of CEQA by means of a negative
declaration.
2. Consideration of possible zoning changes and
general plan amendments necessary to support
proposed development.
III. [5300] PURCHASE PRICE AND/OR OTHER CONSIDERATION
The purchase price and/or other consideration to be paid by
the Developer for the Property pursuant to a disposition and
development agreement shall be established by the Agency
after negotiations with and subject to the agreement of the
Developer. The purchase price and/or other consideration
will be based upon such factors as market conditions,
density of development, cost of development, risks
incurred, estimated or actual profit, estimated or actual
sales and/or rental prices of the facility to be developed,
public purpose, and other matters relevant to establishing
the fair value for the use to be developed.
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IV. [5400] FINANCIAL CAPACITY OF DEVELOPER
A. [5401] Evidence of Financing Capacity
At Agency's request, Developer shall provide Agency
with evidence of its capacity to finance the project.
Developer shall update such evidence as new information
becomes available during the course of the
negotiations.
B. [5402] Full Disclosure and Approval
The Developer shall make full disclosure to the Agency
of all employees and other associates of the Developer,
who are participants or principals in this project.
V. [5500] JOINT RESPONSIBILITIES
A. [5501] California Environmental Quality Act
The California Environmental Quality Act is applicable
to the proposed development. Pursuant to the Act, an
Environmental Impact Report was certified for the
Second Amendment to the Redevelopment Plan for the
Azusa Central Business District Redevelopment Project.
The Developer agrees to supply information reasonably
available to Developer and otherwise assist the Agency
as reasonably requested to determine the environmental
impacts of the proposed development. The Developer
shall bear the expense of any subsequent environmental
impact reports necessitated by the proposed project
exceeding the scope of the Environmental Impact Report
in effect.
B. [5502] Assistance and Cooperation
The parties shall cooperate fully in providing one
another with appropriate information and assistance.
C. [5503] Public Hearing
If the negotiations hereunder culminate in a
disposition and development agreement, such agreement
becomes effective only if and when such agreement has
been considered and approved by the Agency and the City
Council after public hearings in accordance with
applicable law.
VI. [5600] REAL ESTATE COMMISSION
The Agency shall not be liable for any real estate
commission or brokerage fees which may arise herefrom. The
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Agency represents that it has engaged no broker, agent or
finder in connection with this transaction, and the
Developer agrees to hold the Agency harmless from any claim
by any broker, agent or finder retained by the Developer.
VII. [5700] ASSIGNMENT
This Agreement shall not be assigned by the Developer
without the prior written consent of the Agency, except that
Developer shall have the right to assign this Agreement to
any partnership in which J. Scott Nesbit is a general
partner ("Crow Partnership") or to any partnership in which
the Crow Partnership is a General Partner.
VIII.[5800] PRIOR AGREEMENTS
This Agreement supersedes all prior agreements with the
Developer.
IN WITNESS WHEREOF the Agency and Developer have each signed
this Amended Agreements as of the date first set forth above.
CITY OF AZOSA
REDEVELOPMENT AGENCY
Eugene F. Moses, Chairman
ATTEST:
Adolph Solis, Secretary
APPROVED AS TO FORM:
Peter M. Thorson, Agency Counsel
CROW LOS ANGELES DEVELOPMENT, INC.
a Texas corporation
J. Scott Nesbit
Vice President
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Dated:
Dated:
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RANCHO AZUSA FINALLY CONFIRMED TO
HENRY DALTON P 2 _106-107
CODE - -
2045 AZUSA M.R. 15- 93 - 96
8820 SUBDIVISION NO.2 AZUSA LAND AND
L 2007 WATER CO. M.R.43 -94
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