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HomeMy WebLinkAboutResolution No. 91-R39RESOLUTION 91-R39 RESOLUTION OF THE AZUSA REDEVELOPMENT AGENCY BOARD OF DIRECTORS APPROVING AN EXCLUSIVE NEGOTIATION AGREEMENT BETWEEN THE AGENCY AND ARTHUR AND BERNARDINE ANDREWS 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 owner 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 Arthur and Bernardine Andrews, dated as of July 1, 1991 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 1st day of July 1991. Eu116/r116 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 lstday of July , 1991. AYES: DIRECTORS: STEMRICH, NARANJO, ALEXANDER, MOSES NAYES: DIRECTORS: DANGLEIS ABSENT: DIRECTORS: NONE Secretary IN WITNESS WHEREOF The Agency and Owner have each signed,. this Agreement as of the date first set forth above. Dated May 6, 1991 APPROVED AS TO FORM REDEVELOPMENT AGENCY OF THE CITY OF AZUSA ByCly � - E ne F. Moses, Chairman Peter M. Thorson,_Agency Counsel Dated Dated d:andrews.ena ATTEST: OWNER: 1991 By: Arthur N. Andrews 1991 By: Bernadine J. Andrews 1-1 0 EXHIBIT A SITE MAP 7 EXHIBIT B SCHEDULE OF PERFORMANCE 1. Basic Concept Drawings -- Owner By August 15, 1991 shall submit to Agency basic concept drawings including site plan, elevation, and landscaping, fulfilling all Precise Plan of Design requirements. 2. Approval: Basic Concept Drawings -- By August 31, 1991 Agency shall approve, conditionally approve, or disapprove the Basic Concept Drawings. 3. Submission - Precise Plan of Design By September 10, 1991 -- Owner shall make any needed corrections and submit a completed application for Precise Plan of Design. 4. Approval - 'Precise Plan of Design By October 10, 1991 -- City shall approve Precise Plan of Design. 5. Approval - Owner Participation By October 30, 1991 Agreement -- Agency and Owner shall complete negotiations on an Owner Participation Agreement and submit to Agency Board for approval. AG91/andrews.ena E] 0 L EXCLUSIVE NEGOTIATION AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF AZUSA AND ARTHUR N. ANDREWS AND J. ANDREWS This Exclusive Negotiation Agreement ("Agreement") is entered into by and between the Redevelopment Agency of the City of Azusa, a public body, corporate and politic ("Agency") and Arthur N. and Bernadine J. Andrews as joint tenants ("Owner"), and for the convenience of the parties shall be dated July 1, 1991. In consideration of their mutual covenants and obligations as set forth herein, the parties hereto agree as follows: RECITALS The parties hereto acknowledge that: A. The Agency desires to have certain property within the Azusa Central Business District Redevelopment Project Area developed in accordance with the Redevelopment Plan for said project area, which property is specifically described on Exhibit "A" which is attached hereto and incorporated herein by reference ("Property"); B. Owner desires to redevelop or rehabilitate said Property; C. This Agreement is an agreement to negotiate only and nothing contained herein binds either party to enter into an owner participation agreement with respect to the Property. D. The Agency's power and authority to redevelop property derives from the Community Redevelopment Law (Health & Safety Code Sections 33000, et. seq.) and the Agency must comply with all procedural requirements of the Community Redevelopment Law in carrying out its redevelopment activities. IT IS HEREBY MUTUALLY AGREED AS FOLLOWS: [5100] NEGOTIATIONS A. [5101] Exclusive Negotiations Agency and Owner hereby agree to negotiate diligently and in good faith toward an owner participation agreement for the Property conditioned upon redevelopment or rehabilitation of the Property by Owner. Agency agrees that it will not 1 0 0 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 Owner until October 30, 1991. The parties hereto may mutually terminate this Agreement at any time by written agreement. The parties hereto may mutually extend this Agreement at any time by written agreement. C. [S1031 Deposit Owner shall post a deposit in the amount of Ten Thousand Dollars ($10,000). During this exclusive negotiating period, the Agency will retain the deposit. If the negotiations culminate in the approval of an owner participation agreement for the Property, then the $10,000 deposit shall be refunded (without interest) to the Owner, or the deposit will be applied (without credit for interest) to the deposit which will be required by the owner participation agreement for the property. In the event that this Agreement expires without the execution of an owner participation agreement for the Property for any reason other than Owner's bad faith, the deposit shall be refunded to the Owner without interest. IN THE EVENT THAT THIS AGREEMENT EXPIRES WITHOUT THE EXECUTION OF A OWNER PARTICIPATION AGREEMENT FOR THE PROPERTY DUE TO OWNER'S BAD FAITH NEGOTIATION, THE AGENCY SHALL HAVE THE RIGHT AND OPTION TO RETAIN THE 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. OWNER'S INABILITY TO SATISFY ANY CONDITION OF THE DEVELOPMENT, SUCH AS INABILITY TO PROCURE SATISFACTORY TENANTS OR FINANCING, SHALL NOT BE DEEMED BAD FAITH. EACH OF THE PARTIES ACKNOWLEDGES AGREEMENT TO THE FOREGOING PROVISION AND THE REASONABLENESS THEREOF UNDER THE CIRCUMSTANCES BY SEPARATELY SIGNING BELOW: AGENCY: Chairman E 0 OWNER: Authorized Agent II. [S2001 PROPOSED DEVELOPMENT A. [5201] Development Concept The Site consists of approximately 1.77 acres at the southwest corner of Azusa Avenue and Fifth Street owned in part by Owner and Agency. The Site consists of an existing 24,000 s.f. structure with adjacent parking. The current use is a wholesale motorcycle parts distributor. Owner owns Lots 1 through 12 and 25 through 30 on the Site Map. Agency owns Lots 31 through 34 of Site. Agency proposes to convey its property to Owner in exchange for certain rehabilitation improvements to the Site. The basic improvements may include, but are not limited to: 1. Rehabilitation of the existing structure. 2. Installation of landscaping and irrigation. 3. Construct concrete alley intersection and concrete gutter. 4. Install block wall to screen storage area. 5. Replace chainlink fencing with decorative wrought iron. Owner shall prepare plans in accordance with the Schedule of Performance. These plans shall be submitted for Precise Plan of Design review by the City Planning Department. Owner agrees to construct all City required improvements and acknowledges that additional conditions may be imposed by the City or other affected regulatory agencies. Agency acknowledges that Owner does not intend to demolish the existing structure and redevelop the Site at this time. B. [5202] Scope and Schedule of Development Owner shall confer with Agency staff then prepare and submit to Agency: 1. A Site Plan and Elevation which describes the proposed building layout, square footage, parking plan, rehabilitation and landscape improvements. 2. An estimate of the project's development costs. 3. Evidence of the ability to finance the project; and 4. Such other information as Agency reasonably determines necessary to conduct meaningful negotiations. C. [5203] Owner's Findings, Determinations, Studies and Reports The Owner agrees to make periodic written reports advising the Agency on all matters and all studies being made. The Owner 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 an owner participation agreement, the Owner 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. III. [5300] PURCHASE PRICE AND/OR OTHER CONSIDERATION The proposed purchase price is $150,000. IV. [5400] FINANCIAL CAPACITY OF THE OWNER A. [5401] Financial Statement At Agency's request, Owner shall provide Agency with its last financial statement. Owner shall update such statement as new information becomes available during the course of the negotiations. B. [S4021 Full Disclosure and Approval The Owner shall make full disclosure to the Agency of all principals, officers, stockholders, partners, joint venturers, employees and other associates of the Owner, who are participants or principals in this project. 4 V. [5500] JOINT RESPONSIBILITIES A. [5501] California Environmental Ouality Act The California Environmental Quality Act is applicable to the proposed development. Pursuant to the Act, an Environmental Impact Report was certified for the "CBD -1" Site project. The Owner agrees to supply information and otherwise assist the Agency as requested to determine any additional environmental impacts of the proposed development. The Owner 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. [S502] 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 an owner participation 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 Agency represents that it has engaged no broker, agent or finder in connection with this transaction, and the Owner agrees to hold the Agency harmless from any claim by any broker, agent or finder retained by the Owner. VII. [S700] ASSIGNMENT This Agreement shall not be assigned by the Owner without the prior written consent of the Agency. VIII.[5800] PRIOR AGREEMENTS This Agreement supersedes all prior agreements with the Owner. G�