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HomeMy WebLinkAboutCC RESO 11,707Resolution No. 11,707 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING ACCEPTANCE AND EXECUTION OF THAT CERTAIN LETTER AGREEMENT WITH MAY STORES SHOPPING CENTERS, INC. AND BONITA ASSOCIATES WHEREAS, by Resolution No. 11,214 the City of National City was duly authorized to enter into a Memorandum of Understanding with May Stores Shopping Centers, Inc. and Barclay, Hollander & Curci, Inc; and WHEREAS, said Memorandum of Understanding was executed on November 13, 1973; and WHEREAS, by Resolution No. 11,648 the City of National City entered into a Memorandum of Agreement, Grant of Lease and Grant of Option with the Koenig Corporation; and WHEREAS, said Memorandum of Agreement was executed on December 27, 1974; and WHEREAS, May Stores Shopping Centers, Inc. and Bonita Associates by letter dated February 10, 1975 have expressed their continuing interest in participating in development of the Bonita Center Redevelopment Project; and WHEREAS, by said letter, May Stores Shopping Centers, Inc. and Bonita Associates are transmitting $100,000 for use by the City of National City in pursuing implementation of the project. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of National City that the Mayor is hereby authorized and directed to execute said letter of February 10, 1975, and said acceptance indicates that the City of National City is in agreement with all terms and conditions contained therein. Passed and adopted this 25th day of February, 1975. ATTEST: BONITA A§SOGINPES 5456 AIc(=onncll Ave., Stiitc 235 • Itos Angeles, (=:-1 00066 (213) 390 782' February 10, 1975 Redevelopment Agency of the City of National City 1243 Natioanl Avenue National City, California 92050 Attention: Merrell L. Watts Executive Director lte: Bonita Center Redevelopment Project • --Gentlemen: - - - 'The undersigned, Bonita Associates ("Associates"), a general partnership, and The May Stores Shopping Centers, Inc. ("Centers"), hereby mutually agree to participate with you in the redevelopment. of that certain project area in the City of National City encompas- sed by the Redevelopment Plan, attached hereto as Exhibit "A", .insofar as Exhibit "A" is consistent with the adopted Redevelopment Plan for the Bonita Redevelopment Project. To the extent that Exhibit "A" is inconsistent with the adopted Redevelopment Plan for the Bonita Center Redevelopment Project "the plan" shall prevail over Exhibit "A": Our agreement to participate with you, and to perform 'the work hereinbelow set forth, is conditioned as follows: 1. The existing Memorandum of Agreement; Grant of Lease; and Grant of Option (the "Memorandum Agreement") between the Koenig Corporation, the City of National City and you (executed copies of which shall be delivered by you to the undersigned) shall be modified in order that Associates is nominated by the City and by you to be the purchaser of the property which is the subject of the Memorandum Agreement. Further, the formal lease agreement contemplated by Article IX of the Memorandum Agreement shall be subject to the approval of the undersigned. In the event Koenig Corporation declares a • default under said lease agreement, then Associates and/or Centers shall have the right, but not the duty, to cure said default. Upon effecting such a cure Associates and/or Centers shall take the place of and succeed to the interests of Agency and City., The formal lease .and option to be prepared and executed by and between Agency, City -and Koenig shall so provide for the succession of interests herein above described. The City and Agency shall continue to meet their obligations under the Memorandum Agreement. • Redevelopment Agency of the City of National City February 10, 1975 Page Two ' 2. Centers and Associates agree to execute and deliver to you an Owners' Participation Agreement within six (6) months from the date hereof concurrently with the execution by Centers and at least two major department sotres of a Reciprocal Easement Agree- ment (REA), which Centers will use its best efforts to enter into. Failure of Centers to produce said REA, (The effectiveness of which shall be conditioned upon the sale of tax allocation bonds by you in connection with your obligations with respect to the Redevelop- ment Project) within this period of time shall not be a default by Centers so long as it is diligently pursuing the negotiation of the same and provided further that if Centers has not entered into such REA within the term of the Memorandum Agreement or.at Centers option within 18 months of the date hereof, .there shall be no further obliga- tion to seek the execution of such•REA nor any further liability to you or to the City on the part of Centers or Associates. 3. We hand you herewith the sum of One Hundred Thousand Dollars ($100,000.00) as an advance grant to you to be used by you as you may deem desirable in furthering the Redevelopment Project, such as performing work in the flood controlchannel or -refining .the existing Environmental Impact Report. Such funds shall be repaid to.the undersigned if and whenyouu sell said tax allocation bonds. If Agency and/or City use the monies herein advanced or.loaned for the purpose of performing any work described in Watercourse Permit No. 253 granted the City and Agency by San Diego County, and the "Right of Entry -band Permit To Do Work" heretofore granted to Agency and City by the. County of San Diego, then Associates and Centers shall incur no liabilities to pay for or perform any of the works of improvement described in said Permit and Permission to Enter, the constructing of which works of improvement is a condition of said Permit and Per- mission to Enter,.* This Agreement does not affect the ultimate alloca- tion of site preparation expenses, which allocation shall be provided for in the Owners -Participation Agreement to be prepared and executed among the parties hereto. We agree to accept the property in its then graded condition at such time as all of the other conditions of this agreement are satisfied so long as such work is not inconsistent with the Redevelopment Project. Please return said sum if you do not accept these understandings. 4. In addition to the above mentioned $100,000.00 advance, we hereby agree to loan to you and to the City an additional.sum of One Hundred Fifty Thousand and 00/100 Dollars ($150,000.00) plus interest at. Prime Commercial Rate from the various times of advances. Said loan shall be disbursed in a manner and at times mutually agreed upon by you *nor for the cost of any bond premiums therefor, nor for the principal amounts of any bonds in connection therewith. . k/t4 Redevelopment Agency of the City of National City -February 10, 1975 :Page Three and -the undersigned, and shall be repaid to the undersigned by you. and by the City either from the proceeds derived from your sale of said tax allocation bonds, if the Redevelopment Project proceeds, or out of -any source of funds available to either you or to the City for such purpose, if the Redevelopment Project does not proceed. 5. We shall have the right to review and comment on any amend- ments to the Redevelopment Plan. (See Section G of the Redevelopment Plan.) - If the foregoing meets with your understanding and approval, please execute the original and three (3) enclosed copies of this letter and return one copy to each of the undersigned on or before February 28, 1975, ACCEPTED -AND AGREED TO this 25th day of February, 1975. REDEVELOPMENT AGENCY OF THE CITY OF✓iNA7}IONAL CITY By Chairman Very truly yours, BONIT ASSOCIATES, a partnership By Donald Barcla_y,.Partn By . Aobert`-81 in, Partner. THE MAY STORES SHOPPING CENTERS, INC. a -corporation By CITY OF By _-Mayor CITY