HomeMy WebLinkAboutPA 2019-1 - CarMax - Option Agreement - Sixth AmendmentRESOLUTION NO. 2019 — 1
RESOLUTION OF THE PARKING AUTHORITY OF
THE CITY OF NATIONAL CITY AUTHORIZING THE CHAIRWOMAN TO
EXECUTE THE SIXTH AMENDMENT TO THE OPTION TO PURCHASE
AGREEMENT BETWEEN THE CITY OF NATIONAL CITY AND
CARMAX AUTO SUPERSTORES CALIFORNIA, LLC, A VIRGINIA
LIMITED LIABILITY COMPANY, EXTENDING THE PERMITTING
PERIOD FROM FEBRUARY 25, 2019 TO DECEMBER 4, 2019,
AND HAVING THE ESCROW CLOSING OCCUR TWO WEEKS
AFTER THE EXPIRATION OF THE PERMITTING PERIOD
WHEREAS, the Parking Authority of the City of National City (the "Authority")
owns a 15.08-acre parcel located at the southwest corner of Sweetwater Road and Plaza
Bonita Center Way (APN 564-471-11); and
WHEREAS, the Authority entered into an Option to Purchase Agreement
("Original Agreement") with CarMax Auto Superstores California, LLC, ("CarMax") on August
18, 2015; and
WHEREAS, CarMax intended to use part of the Property to build a CarMax
Superstore ("Project"), provide for on -site mitigation, and create a remnant parcel to be used for
future development by the Authority; and
WHEREAS, the total purchase price in the Original Agreement was not to be less
than $3,500,000 for 9.5 acres; and
WHEREAS, on May 3, 2016, the Authority adopted Resolution No. 2016-1
entering into a First Amendment to the Option Agreement to extend the Feasibility Period
through August 15, 2016, and
WHEREAS, the Second Amendment to the Option Agreement was approved
and executed in August 2016 to extend CarMax's Feasibility Period; and
WHEREAS, on December 6, 2016, the Parking Authority adopted Resolution
No. 2016-3 approving the Third Amendment to the Option Agreement amending the total
purchase price to $1,500,000 for 7.7 acres, or $4.40 per square foot, contingent on a reduction
of the sales price for the County of San Diego Open Space Easement, and allowing the size
and dimension of the Property to be determined by CarMax based upon the total size needed
for the CarMax Project; and
WHEREAS, on September 5, 2017, the Parking Authority adopted Resolution
No. 2017-2 approving the Fourth Amendment to the Option Agreement, which reduced the
sales price to $1,500,000 for 7.63 acres, giving CarMax until September 14, 2018 to obtain all
necessary permits, approvals, and the tentative parcel map, and CarMax would have the right
to extend the Permitting Period by up to three (3) successive one (1) month periods, upon prior
written notice to the Authority; and
WHEREAS, on December 6, 2018, the City Manager executed the Fifth
Amendment, as authorized by the Fourth Amendment, to extend the Permitting Period to
February 25, 2019; and
PASSED and ADOPTED this 19th day of February, 2019.
Alejandr'a Soteld-Solis, Chairwoman
Resolution 2019 — 1
Page Two
WHEREAS, the parties desire to enter into a Sixth Amendment to the Option
Agreement to extend the Permitting Period from February 25, 2019 to December 4, 2019 with
the close of escrow occurring two (2) weeks after the expiration of the Permitting Period, or
December 28, 2019.
NOW, THEREFORE, BE IT RESOLVED that the Parking Authority of the City of
National City approves and authorizing the Chairman to execute a Sixth Amendment to the
Option to Purchase Agreement between the Parking Authority of the City of National City and
CarMax Auto Superstores California, LLC, a Virginia limited liability company, extending the
permitting period from February 25, 2019 to December 4, 2019, and having the Escrow closing
occur two weeks after the expiration of the permitting period. The Sixth Amendment to the
Option Agreement is on file in the Office of the City Clerk.
ATTEST:
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Leslie Deese, Secretary
APPROVED AS TO FORM:
Passed and adopted by the Parking Authority of the City of National City, California, on
February 19, 2019 by the following vote, to -wit:
Ayes: Boardmembers Cano, Morrison, Quintero, Rios, Sotelo-Solis.
Nays: None.
Absent: None.
Abstain: None.
AUTHENTICATED BY: ALEJANDRA SOTELO-SOLIS
By:
Chairwoman, Parking Authority
LESLIE DEESE
Secretary, Parking Authority
Deputy
I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
RESOLUTION NO. 2019-1 of the Parking Authority of the City of National City,
California, passed and adopted on February 19, 2019
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Secretary, Parking Authority
By:
Deputy