HomeMy WebLinkAbout2006 CC RESO 2006-218 CDCNOT ADOPTED
RESOLUTION NO. 2006-218
A "RESOLUTION OF THE COMMUNITY DEVELOPMENT
COMMISSION OF THE CITY OF NATIONAL CITY
APPROVING AMENDMENT NO. 2 TO THE DISPOSITION
AND DEVELOPMENT AGREEMENT WITH
CONSTELLATION PROPERTY GROUP ("A" AVENUE) LP,
AND APPROVING AN OPTION AGREEMENT WITH
CONSTELLATION PROPETY GROUP (NAT CITY 12TH) LP,
PERTAINING TO THE CENTRO AND R-2 PROJECTS
This Resolution was not adopted at the
City Council Meeting of October 3,2006
DATE: October o, 2006
Michael R. Dalla, CMC
City Clerk of the
City of National City
Me r ADO PrE D —
RESOLUTION NO. 2006 — 218
RESOLUTION OF THE COMMUNITY DEVELOPMENT
COMMISSION OF THE CITY OF NATIONAL CITY APPROVING
AMENDMENT NO. 2 TO THE DISPOSITION AND DEVELOPMENT AGREEMENT
WITH CONSTELLATION PROPERTY GROUP ("A" AVENUE) LP, AND
APPROVING AN OPTION AGREEMENT WITH CONSTELLATION
PROPERTY GROUP (NAT CITY 12TH) LP, PERTAINING
TO THE CENTRO AND R-2 PROJECTS
WHEREAS, Constellation Property Group ("A" Avenue) LP, ("'A' Avenue")
entered into a Disposition and Development Agreement ("DDA") dated August 30, 2005,
pursuant to which "A" Avenue agreed to develop a real estate project in National City known as
"Centro". Pursuant to the DDA, "A" Avenue further agreed to build Office Space and four
parking spaces for the CDC in the Centro project, and a Trolley Transit Center; and
WHEREAS, Constellation Property Group (Nat City 12th) ("Nat City 12th") is an
affiliate of "A" Avenue and the developer of the Revolution 2 project located adjacent to Centro;
and
WHEREAS, on October 21, 2005, "A" Avenue and Nat City 12th entered into an
Assignment and Assumption Agreement pursuant to which "A" Avenue assigned all of its rights
under the DDA to Nat City 12th, and Nat City 12th agreed to assume the obligations under the
DDA; and
WHEREAS, in connection with the October 21, 2005 assignment, the CDC and
Nat City 12th entered into Amendment No. 1 to the DDA on October 25, 2005, pursuant to
which Nat City 12th agreed to construct the Office Space and Trolley Transit Center; and
WHEREAS, "A" Avenue and Nat City 12th are entering into an Assignment and
Assumption Agreement pursuant to which Nat City 12th will assign back to "A" Avenue the
rights and obligations under the DDA; and
WHEREAS, it has been proposed by "A" Avenue that the CDC agree to enter
into Amendment No. 2 to the DDA, pursuant to which "A" Avenue's obligation to provide the
Office Space to the CDC would be replaced with an obligation to provide a residential
Condominium Unit in the Centro project, which Condominium Unit shall have a fair market value
of at least $500,000; and
WHEREAS, Amendment No. 2 would further provide that in consideration for the
removal of the blanket mortgage from the Centro and Revolution 2 projects, the CDC would
remove the Second Mortgage from both projects, and that the liquidated damages provision
contained in Amendment No. 1 to the DDA would be eliminated; and
WHEREAS, it has been proposed by "A" Avenue that concurrently with entering
into Amendment No. 2 to the DDA, the CDC enter into an Option Agreement with Nat City 12th,
pursuant to which Nat City 12th would construct the Office Space in the Revolution 2 project,
and pursuant to which the CDC would be granted an option to exchange the Condominium Unit
in the Centro project for the Office Space in the Revolution 2 project.
Resolution No. 2006 — 218
October 3, 2006
Page 2
NOW, THEREFORE, BE IT RESOLVED that the Community Development
Commission of the City of National City hereby approves Amendment No. 2 to the Disposition
and Development Agreement with Constellation Property Group ("A" Avenue) LP, approves an
Option Agreement with Constellation Property Group (Nat City 12th) LP, and authorizes the
Chairman to execute said documents. Said Amendment No. 2 to the Disposition and
Development Agreement and Option Agreement are on file in the office of the City Clerk.
PASSED and ADOPTED this 3rd day of October, 2006.
Nick Inzunza,Chairman
ATTEST:
Chris Zapata, Secretary
APPROVED AS TO FORM:
George H. Eiser, Ill
Legal Counsel