HomeMy WebLinkAboutE-15 Staff Report - 3rd Amendment to DDA & 4th to PSA - Costanzo Investments45635.01849\33182005.1
CONSENT ITEM
E-15
TO: HONORABLE CHAIR AND MEMBERS OF THE SUCCESSOR AGENCY TO THE
AZUSA REDEVELOPMENT AND MAYOR AND CITY COUNCIL
VIA: SERGIO GONZALEZ, CITY MANAGER
FROM: MATT MARQUEZ, ECONOMIC AND COMMUNITY DEVELOPMENT DIRECTOR
DATE: AUGUST 17, 2020
SUBJECT: APPROVE THE THIRD AMENDMENT TO THE DISPOSITION AND
DEVELOPMENT AGREEMENT AND THE SUCCESSOR AGENCY APPROVE THE
FOURTH AMENDMENT TO THE REAL PROPERTY PURCHASE AND SALE
AGREEMENT AND JOINT ESCROW INSTRUCTIONS WITH COSTANZO
INVESTMENTS, LLC. FOR THE PARCELS LOCATED AT THE SOUTHEAST
CORNER OF AZUSA AVENUE AND NINTH STREET (APNs 8608-025-902, 8608-
025-907, 8608-025-908, 8608-025-909, 8608-025-910 AND A PORTION OF 8608-025-
914)
SUMMARY:
The City and Successor Agency to the Redevelopment Agency are owners of several parcels generally
located on the southeast corner of Azusa Avenue and 9th Street in the City (APNs 8608-025-902, 8608-
025-907, 8608-025-908, 8608-025-909, 8608-025-910 and a portion of 8608-025-914) (“Property”). The
Successor Agency, pursuant to the Long Range Property Management Plan, desires to sell and the City
desires to sell for economic development purposes, their respective portions of the Property to Costanzo
Investments, LLC (“Developer”). On June 19, 2017, the City entered into a Disposition and
Development Agreement (DDA) and the Successor Agency entered into a Purchase and Sale Agreement
and Joint Escrow Instructions (PSA) with the Developer to sell the Property. This action approves a
third amendment to the DDA and the fourth amendment to the PSA.
RECOMMENDATION:
Staff recommends that the following actions be taken:
1)The City Council approve a Third Amendment to the Disposition and Development Agreement;
and
2)The Successor Agency approve a Fourth Amendment to the Purchase and Sale Agreement and
Joint Escrow Instructions; and
APPROVED
CITY COUNCIL
8/17/2020
45635.01849\33182005.1
Approve Amendments with Costanzo Investments, LLC.
August 17, 2020
Page 2
3) Authorize the City Manager to execute both, in a form acceptable to the City Attorney.
DISCUSSION:
Since mid-March 2020, there has been a global pandemic (the “COVID-19 Pandemic”). In response,
state and local leaders, including the Governor of the State of California, have promulgated multiple
executive orders which have significantly impacted every aspect of economic life in the State.
Although the Developer continues to make progress, the Developer believes that as a result of the
uncertain times and government actions and orders, there has been and will be a material impact on the
Project and its progress. On June 18, 2020 the Developer requested an extension on the milestone
schedules under the DDA and PSA.
Staff reviewed the Developer’s progress toward the close of escrow and completion of the Project and
found that the Developer has diligently pursued the Project. The City Manager has determined that a
force majeure event as defined under section 8.72 of the DDA and section 5.7 of the PSA has occurred
and that all deadlines in the DDA and the PSA (both, as amended) should be extended by ninety (90)
days.
At this time, Staff is recommending that the City Council approve a Third Amendment to the
Disposition and Development Agreement and the Successor Agency approve the Fourth Amendment to
the Purchase and Sale Agreement and Joint Escrow Instructions to extend all deadlines by ninety (90)
days including but not limited to plan check submittal and post-closing deadlines.
In 2015, the City adopted the TOD Specific Plan and its corresponding environmental impact report
(EIR). The site subject to these agreements is included within the boundaries of the Specific Plan project
area and was included in the environmental analysis in accordance with Public Resources Code section
21166 and State CEQA Guidelines, section 15162. The actions contemplated in this staff report do not
constitute a significant change and therefore are consistent with the EIR previously adopted for the TOD
Specific Plan. Therefore, no further environmental review is required.
FISCAL IMPACT:
There is no fiscal impact associated with the recommended actions.
Prepared by: Reviewed and Approved:
Carina Campos Matt Marquez
Economic Development Specialist Economic and Community Development Director
45635.01849\33182005.1
Approve Amendments with Costanzo Investments, LLC.
August 17, 2020
Page 3
Reviewed and Approved:
Sergio Gonzalez
City Manager
Attachments:
1) Third Amendment to the Disposition and Development Agreement
2) Fourth Amendment to the Purchase and Sale Agreement and Joint Escrow Instructions
Attachment 1
Attachment 2