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Home My WebLink About2007 CON CDC Palm Plaza Associates - 2nd Amendment Exclusive Negotiation AgreementSECOND AMENDMENT TO EXCLUSIVE NEGOTIATION AGREEMENT BETWEEN THE COMMUNITY DEVELOPMENT COMMISSION OF NATIONAL CITY AND PALM PLAZA ASSOCIATES, LLC This Amendment, effective as of February 6, 2007, is made by and among the COMMUNITY DEVELOPMENT COMMISSION OF NATIONAL CITY ("CDC"), a community development commission and PALM PLAZA ASSOCIATES, LLC, a California limited liability company ("DEVELOPER"). WHEREAS, on January 10, 2006, the Acevedo Group and CDC entered into an Agreement for a 1.07-acre parcel ("SITE") located at 1640 East Plaza Boulevard, National City, CA; and WHEREAS, during the exclusive negotiation period , the Developer partnered with the Planet Development Corporation and Desert Wells, LLC to prepare plans to develop a residential and commercial mixed use project ("PROJECT") for the Site, as well as for two adjacent parcels owned by the Developer; and WHEREAS, as a result of their partnership, the Developer requested and the CDC approved on June 20, 2006, an assignment of the Agreement to their newly formed Palm Plaza Associates, LLC.; and WHEREAS, on July 12, 2006, the CDC Executive Director, in his sole discretion extended the Agreement for an additional one hundred and eighty (180) days to allow the developer additional time to undertake due diligence activities and assess Project feasibility on the Site; and WHEREAS, the Developer and CDC desire to Amend the Agreement for an additional one hundred and eighty (180) days to allow additional time to refine the Project Conceptual Design Plan, and complete DDA negotiations, land use entitlements and environmental studies for a Project on the Site. NOW THEREFORE, THE PARTIES AGREE TO AMEND THE AGREEMENT AS FOLLOWS: 1. The Developer and CDC shall continue exclusive negotiations for an additional one hundred and eighty (180) days to refine the Project Conceptual Design Plan, and complete DDA negotiations, land use entitlements and environmental studies for a Project on the Site. Accordingly, the deadline for accomplishing these tasks is August 6, 2007. 2. With the foregoing exception, each and every provision of the Agreement shall remain in full force and effect. Page 1 of 2 2nd Amendment to Agreement IN WITNESS WHEREOF, the Parties have entered into this Amendment as of February 6, 2007. COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY, a community development commission By: on Morrison, Chairman ATTEST: By: Brad n, Secretary APPROVED AS TO FORM: By: r)at� George iser, III CDC Counsel Dated: February 6, 2007 PALM PLAZA ASSOCIATES, LLC, a California limited liability company Page 2 of 2 2nd Amendment to Agreement RESOLUTION NO. 2007 — 21 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY AUTHORIZING THE CHAIRMAN TO EXECUTE A SECOND AMENDMENT TO THE EXCLUSIVE NEGOTIATION AGREEMENT BETWEEN PALM PLAZA ASSOCIATES, LLC AND THE COMMUNITY DEVELOPMENT COMMISSION OF NATIONAL CITY FOR A 1.07-ACRE PARCEL LOCATED AT 1640 EAST PLAZA BOULEVARD (APN# 557-410-20) WHEREAS, on January 10, 2006, the Community Development Commission of the City of National City (CDC) and the Acevedo Group entered into an Exclusive Negotiation Agreement (ENA) for a 1.07-acre parcel located at 1640 East Plaza Boulevard; and WHEREAS, since the ENA's approval, the Acevedo Group partnered with a local developer to prepare plans to develop a residential and commercial mixed use project for the subject parcel, as well as for a parcel they control just west of the location; and WHEREAS, on June 20, 2006, the CDC approved an assignment of the Agreement with the partnership's newly formed Palm Plaza Associates, LLC; and WHEREAS, on July 12, 2006, the CDC Executive Director, in his sole discretion extended the Agreement for an additional 180 days to allow Palm Plaza additional time to undertake due diligence activities and assess project feasibility; and WHEREAS, Palm Plaza and the CDC desire to amend the Agreement for an additional 180 days to allow more time to refine the project conceptual design land, and complete DDA negotiations, land use entitlements and environmental studies for a project on the site. NOW, THEREFORE, BE IT RESOLVED, that the Community Development Commission of the City of National City hereby authorizes the Chairman to execute a Second Amendment to the ENA with Palm Plaza Associates, LLC for a 1.07-acre parcel located at 1640 East Plaza Boulevard. Said Amendment to Agreement is on file in the office of the City Clerk. PASSED AND ADOPTED this 6'h day of February on Morrison, Chairman APPROVED AS TO FORM: George H. Eiser, III Legal Counsel Passed and adopted by the Community Development Commission of the City of National City, California, on February 6, 2007, by the following vote, to -wit: Ayes: Commissioners Morrison, Natividad, Parra, Ungab, Zarate. Nays: None. Absent: None. Abstain: None. AUTHENTICATED BY: RON MORRISON Chairman, Community Develo' • = t Commission C 1 740011.10.-v"retarevelopment Commission By: Deputy I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 2007-21 of the Community Development Commission of the City of National City, California, passed and adopted on February 6, 2007. Secretary, Community Development Commission By: Deputy r. City of National City, California COMMUNITY DEVELOPMENT COMMISSION AGENDA STATEMENT MEETING DATE Fehnuary 6, 2007 AGENDA ITEM NO. 19 1 ITEM TITLE Resolution approving a Second Amendment to the Exclusive Negotiation Agreement (ENA) between Palm Plaza Associates, LLC and the Community Development Commission of National City for a 1.07-acre parcel located at 1640 East Plaza Boulevard (APN# 557-410-20) and authorizing the Chairman to execute said Agreement. PREPARED BY Xavier Del Valle Senior Project Manager DEPARTMENT k Community Development Commission EXPLANATION On January 10, 2006, the CDC and the Acevedo Group entered into an Exclusive Negotiation Agreement (ENA) for a 1.07-acre parcel located at 1640 East Plaza Boulevard. The purpose of the ENA is to encourage the revitalization of the underutilized parcel, which is owned by the CDC. Since the ENA's approval, the Acevedo Group partnered with a local developer to prepare plans to develop a residential/commercial mixed use project for the subject parcel, as well as for a parcel they control just west of the location. On June 20, 2006, the CDC approved an assignment of the Agreement with the partnership's newly formed Palm Plaza Associates, LLC. In July 2006, the Executive Director extended the Agreement for an additional 180 days to allow the developer additional time to undertake due diligence activities and assess project feasibility. Palm Plaza now desires to extend the Agreement for an additional 180 days to allow more time to refine the project conceptual design plan, and complete DDA negotiations, land use entitlements and environmental studies for a project on the subject parcel. An extension of the ENA requires CDC approval. Environmental Review The proposed Agreement is exempt from CEQA review. Financial Statement A $25,000 deposit from the Developer has been received by the CDC to offset the costs associated with implementing the Agreement. STAFF RECOMMENDATION Adopt resolution approving a Second Amendment to the Exclusive Negotiation Agreement between Palm Plaza Associates, LLC, and the Community Development Commission of National City for a 1.07-acre parcel located at 1640 East Plaza Boulevard. BOARD / COMMISSION RECOMMENDATION N/A ATTACHMENTS 1. Resolution 2. Second Amendment to Exclusive Negotiation Agreement Resolution No. A-200 (9/80) SECOND AMENDMENT TO EXCLUSIVE NEGOTIATION AGREEMENT BETWEEN THE COMMUNITY DEVELOPMENT COMMISSION OF NATIONAL CITY AND PALM PLAZA ASSOCIATES, LLC This Amendment, effective as of February 6, 2007, is made by and among the COMMUNITY DEVELOPMENT COMMISSION OF NATIONAL CITY ("CDC"), a community development commission and PALM PLAZA ASSOCIATES, LLC, a California limited liability company ("DEVELOPER"). WHEREAS, on January 10, 2006, the Acevedo Group and CDC entered into an Agreement for a 1.07-acre parcel ("SITE") located at 1640 East Plaza Boulevard, National City, CA; and WHEREAS, during the exclusive negotiation period , the Developer partnered with the Planet Development Corporation and Desert Wells, LLC to prepare plans to develop a residential and commercial mixed use protect ("PROJECT") for the Site, as well as for two adjacent parcels owned by the Developer; and WHEREAS, as a result of their partnership, the Developer requested and the CDC approved on June 20, 2006, an assignment of the Agreement to their newly formed Palm Plaza Associates, LLC.; and WHEREAS, on July 12, 2006, the CDC Executive Director, in his sole discretion extended the Agreement for an additional one hundred and eighty (180) days to allow the developer additional time to undertake due diligence activities and assess Project feasibility on the Site; and WHEREAS, the Developer and CDC desire to Amend the Agreement for an additional one hundred and eighty (180) days to allow additional time to refine the Project Conceptual Design Plan, and complete DDA negotiations, land use entitlements and environmental studies for a Project on the Site. NOW THEREFORE, THE PARTIES AGREE TO AMEND THE AGREEMENT AS FOLLOWS: 1. The Developer and CDC shall continue exclusive negotiations for an additional one hundred and eighty (180) days to refine the Project Conceptual Design Plan, and complete DDA negotiations, land use entitlements and environmental studies for a Project on the Site. Accordingly, the deadline for accomplishing these tasks is August 6, 2007. 2. With the foregoing excepfion, each and every provision of the Agreement shall remain in full force and effect. Page 1 of 2 2nd Amendment to Agreement IN WITNESS WHEREOF, the Parties have entered into this Amendment as of February 6, 2007. COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY, a community development commission PALM PLAZA ASSOCIATES, LLC, a California limited liability company By: By: Ron Morrison, Chairman ATTEST: By: By: Brad Raulston, Secretary APPROVED AS TO FORM: By: George Eiser, III CDC Counsel Dated: Page 2 of 2 2nd Amendment to Agreement RESOLUTION NO. 2007 — RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY AUTHORIZING THE CHAIRMAN TO EXECUTE A SECOND AMENDMENT TO THE EXCLUSIVE NEGOTIATION AGREEMENT BETWEEN PALM PLAZA ASSOCIATES, LLC AND THE COMMUNITY DEVELOPMENT COMMISSION OF NATIONAL CITY FOR A 1.07-ACRE PARCEL LOCATED AT 1640 EAST PLAZA BOULEVARD (APN# 557-410-20) WHEREAS, on January 10, 2006, the Community Development Commission of the City of National City (CDC) and the Acevedo Group entered into an Exclusive Negotiation Agreement (ENA) for a 1.07-acre parcel located at 1640 East Plaza Boulevard; and WHEREAS, since the ENA's approval, the Acevedo Group partnered with a local developer to prepare plans to develop a residential and commercial mixed use project for the subject parcel, as well as for a parcel they control just west of the location; and WHEREAS, on June 20, 2006, the CDC approved an assignment of the Agreement with the partnership's newly formed Palm Plaza Associates, LLC; and WHEREAS, on July 12, 2006, the CDC Executive Director, in his sole discretion extended the Agreement for an additional 180 days to allow Palm Plaza additional time to undertake due diligence activities and assess project feasibility; and WHEREAS, Palm Plaza and the CDC desire to amend the Agreement for an additional 180 days to allow more time to refine the project conceptual design land, and complete DDA negotiations, land use entitlements and environmental studies for a project on the site. NOW, THEREFORE, BE IT RESOLVED, that the Community Development Commission of the City of National City hereby authorizes the Chairman to execute a Second Amendment to the ENA with Palm Plaza Associates, LLC for a 1.07-acre parcel located at 1640 East Plaza Boulevard. Said Amendment to Agreement is on file in the office of the City Clerk. PASSED AND ADOPTED this 6th day of February 2007. ATTEST: Brad Raulston, Secretary APPROVED AS TO FORM: George H. Eiser, III Legal Counsel Ron Morrison, Chairman City of National City Office of the City Clerk 1243 National City Boulevard, National City, CA 91950-4397 Michael R. Della, CMC - City Clerk (619) 336-4228 Fax: (619) 336-4229 March 6, 2007 Mr. John Acevedo & Mr. Juan Pablo Mariscal Palm Plaza Associates, LLC 12760 High Bluff Drive San Diego, CA 92130 Dear Mr. Acevedo and Mr. Mariscal, On February 6, 2007, Resolution No. 2007-21 was passed and adopted by the Community Development Commission of the City of National City, authorizing execution of a second amendment to the exclusive negotiation agreement with Palm Plaza Associates, LLC. We are forwarding for your records a certified copy of the above Resolution and a fully executed copy of the agreement. Sincerely, Michael R. Della, CMC City Clerk Enclosure cc: Community Development Commission ® Recycled Paper