HomeMy WebLinkAboutSA RESO 2012-27RESOLUTION NO. 2012 — 27
RESOLUTION OF THE BOARD OF THE SUCCESSOR AGENCY
TO THE COMMUNITY DEVELOPMENT COMMISSION AS
THE NATIONAL CITY REDEVELOPMENT AGENCY AUTHORIZING
ACCEPTANCE OF GRANT DEEDS, EXECUTION OF DOCUMENTS, AND
PERFORMANCE OF ACTIONS IN SETTLEMENT OF LITIGATION
WHEREAS, on July 19, 2005, the Community Development Commission of the
City of National City ("CDC"), the Parking Authority, and ARE Holdings, LLC ("ARE"), entered
into a Disposition and Development Agreement ("DDA") in furtherance of the redevelopment of
certain real property located between 11th and 12th Street in National City, bordering National
City Boulevard on the east and Roosevelt Avenue on the west for a residential and retail mixed -
use project; and
WHEREAS, on October 15, 2010, ARE filed a lawsuit against the CDC and the
Parking Authority in the Superior Court of the State of California, identified as Case No. 37-
2010-00102387-CU-BC-CTL, arising out of obligations and covenants under the DDA; and
WHEREAS, on February 14, 2011, the CDC and the Parking Authority filed a
cross -complaint against ARE, and named as additional cross -defendants related entities
Parking Company and PCAM, LLC, under the theory of "alter ego" arising out of obligations and
covenants under the DDA; and
WHEREAS, on February 17, 2012, the Court sustained the CDC's and Parking
Authority's demurrer to the First Amended Complaint of ARE without leave to amend. The
above -referenced action herein is referred to as the "Litigation."
WHEREAS, unrelated to the Litigation, pursuant to Assembly Bill X1 26 (Chapter
5, Statutes 2011, First Extraordinary Session), as modified by the Supreme Court in California
Redevelopment Assn. v. Matosantos (2011) 53 Cal.4th 231, all redevelopment agencies were
dissolved by February 1, 2012, and all assets, properties, contracts, leases, records, buildings,
and equipment of the former redevelopment agency were transferred to the control of the
Successor Agency; and
WHEREAS, on January 10, 2012, the City Council adopted Resolution No. 2012-
15, pursuant to Part 1.8 of the Health and Safety Code, electing the City to serve as the
Successor Agency to the Community Development Commission as the National City
Redevelopment Agency upon dissolution of the Community Development Commission of the
City of National City under Assembly Bill X1 26; and
WHEREAS, without admitting any liability or fault, each of the parties to this
Settlement Agreement now desire to resolve all aspects of the Litigation among themselves and
to terminate the DDA; and
WHEREAS, under the terms of the Settlement Agreement, the Successor
Agency shall execute and accept title to each of the parcels being conveyed to the Successor
Agency, and authorize the Chairman, or his designee, to perform such acts to and execute such
other documents as are necessary to settle the litigation and to acquire title insurance
concerning the parcels being acquired, in accordance with title company procedures and
policies.
Resolution No. 2012 — 27
Page Two
NOW, THEREFORE, BE IT RESOLVED that the Successor Agency to the Community
Development Commission as the National City Redevelopment Agency hereby authorizes the
Chairman to execute the Settlement Agreement and accept title to each of the parcels being conveyed
to the Successor Agency
BE IT FURTHER RESOLVED that the Chairman, or his designee, are hereby authorized
to perform such acts to and execute such other documents as are necessary to settle the litigation and
to acquire title insurance concerning the parcels being acquired, in accordance with title company
procedures and policies.
PASSED and ADOPTED this 18th day of Decem 012
on Morrison, Chairman
ATTEST:
Michael R. Dall , City Clerk as
Secretary to the Successor Agency
AS TO FORM:
Claudia Ga ' a Silva
Successor OkWncy Counsel
Passed and adopted by the Successor Agency to the Community Development
Commission as the Redevelopment Agency of the City of National City, California, on
December 18, 2012 by the following vote, to -wit:
Ayes: Boardmembers Cano, Morrison, Natividad, Rios, Sotelo-Solis.
Nays: None.
Absent: None.
Abstain: None.
AUTHENTICATED BY: RON MORRISON
Chairman of the Successor Agency to the
Community Development Commission
as the Redevelopment Agency of the
City of National City, California
By:
'z' �/.
City Clerk Se ing as Secretary
to the Successor Agency
Deputy
I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
RESOLUTION NO. 2012-27 of the Successor Agency to the Community Development
Commission as the Redevelopment Agency of the City of National City, California,
passed and adopted on December 18, 2012.
By:
City Clerk Serving as Secretary
to the Successor Agency
Deputy