HomeMy WebLinkAboutPA 2021-3 - CarMax Auto Superstores California, LLC - Option to Purchase Agreement - Ninth Amendment RESOLUTION NO. 2021 - 03
RESOLUTION OF THE PARKING AUTHORITY OF THE CITY OF NATIONAL CITY,
CALIFORNIA, AUTHORIZING THE CHAIRWOMAN TO EXECUTE A NINTH
AMENDMENT TO THE OPTION TO PURCHASE AGREEMENT BETWEEN THE
PARKING AUTHORITY AND CARMAX AUTO SUPERSTORES CALIFORNIA, LLC, A
VIRGINIA LIMITED LIABILITY COMPANY, EXTENDING THE PERMITTING PERIOD
FROM DECEMBER 31, 2021 TO DECEMBER 31, 2023
WHEREAS, the Parking Authority of the City of National City ("Authority") owns a
15.08-acre parcel located at the southwest corner of Sweetwater Road and Plaza Bonita
Center Way ("Property"); 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 intends to use part of the Property to build a CarMax
Superstore ("Project"), which also provided for on-site mitigation; 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,
and
WHEREAS, the Second Amendment to the Option Agreement was approved and
executed in August 2016, to extend the Feasibility Period; and
WHEREAS, on December 6, 2016, the 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 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
Resolution 2021 - 03
Page Two
WHEREAS, on February 19, 2019 the City Manager executed 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; and
WHEREAS, on November 19, 2019 the City Manager executed a Seventh
Amendment to extend the Permitting Period from December 4, 2019 to December 31,
2020 with the close of escrow occurring two (2) weeks after the expiration of the
Permitting Period, or January 14, 2021; and
WHEREAS, the Authority adopted Resolution No. 2020 - 2 approving the Eighth
Amendment to the Option Agreement, which amended the total purchase price to
$2,100,000 for 7.19 acres, amended the definition of "Property" to delete entirely the
definition of "Residual Parcel' and extended the permitting period from December 31,
2020 until December 31, 2021 giving CarMax time to obtain all necessary permits and
approvals; and
WHEREAS, the Ninth Amendment will amend the Option to Purchase Agreement
between the Parking Authority and CarMax by extending the permitting period from
December 31, 2021 to December 31, 2023.
NOW, THEREFORE, THE PARKING AUTHORITY OF THE CITY OF NATIONAL
CITY, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE, AND ORDER AS
FOLLOWS:
Section 1: Approves and authorizes the Chairwoman to execute a Ninth
Amendment to the Option to Purchase Agreement between the Parking Authority and
CarMax Auto Superstores California, LLC, a Virginia limited liability company, by
extending the permitting period from December 31, 2021 to December 31, 2023.
Section 2. The Secretary shall certify the passage and adoption of this
Resolution and enter it into the book of original Resolutions.
PASSED and ADOPTED this 7th day of December 20 1
Alejandr Sotelo-Solis, Chairwoman
ATE •
Brad on, Secretary
APPROVED AS TO FORM:
C41 1: )21
Charles E. Bell Jr., Leg 'ounsel
Passed and adopted by the Parking Authority of the City of National City, California, on
December 7, 2021, by the following vote, to-wit:
Ayes: Sotelo-Solis, Bush, Morrison, Rios.
Nays: None.
Absent: Rodriguez
Abstain: None.
AUTHENTICATED BY: ALEJANDRA SOTELO-SOLIS
Chairwoman of the Parking Authority,
City of National City, California
LUZ MOLINA
' ' City Clerk of the City of National City, California
BY: j
Shelley Chap I MMC, eputy City Clerk