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HomeMy WebLinkAbout2007 CON CDC Olson Urban Housing - Mutual Rescission AgreementMUTUAL RESCISSION AGREEMENT BY AND BETWEEN THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY AND OLSON URBAN HOUSING, LLC This Mutual Rescission Agreement is made and entered into this 20th day of February, 2007, by and between the Community Development Commission of the City of National City, a community development commission (the "CDC"), and Olson Urban Housing, LLC, a Delaware limited liability company (the "Developer"). RECITALS A. The CDC and the Developer entered into a Disposition and Development Agreement (the "Agreement") on or about March 23, 2004, for the redevelopment of a certain approximately 1.26 acre portion of the National City Redevelopment Project. B. The CDC and the Developer have now determined that it is in their best interests to rescind the Agreement. NOW, THEREFORE, in consideration for the mutual benefit to be derived therefrom, the CDC and the Developer hereby agree as follows: CONSENT TO RESCISSION 1. The CDC and the Developer hereby consent and agree to rescind that certain Disposition and Development Agreement dated March 23, 2004. RETURN OF DEPOSIT 2. In connection with the redevelopment project that was the subject of the Disposition and Development Agreement, the Developer deposited with the CDC the sum of $50,000, $37,500 of which was agreed to be refundable to the Developer if the project was not completed. Accordingly, upon the approval of this Mutual Rescission Agreement by the CDC Board, the sum of $37,500 will be refunded by the CDC to the Developer. SURRENDER OF RIGHTS 3. The CDC and the Developer mutually agree to forego all rights and benefits provided for under the Disposition and Development Agreement as consideration for the rescission of that Agreement. IN WITNESS WHEREOF, the CDC and the Developer have executed this Mutual Rescission Agreement as of the date set forth above. COMMUNITY DEVELOPMENT OF THE CITY OF NATIONAL CITY, a public bodyorporate and politic By: Ron Morrison, Chairman APPROVED AS TO FORM: George H. Eiser, III CDC Legal Counsel OLSON URBAN HOUSING, LLC, a Delaware limited liability company By: (Name)--t-C�c),D U�a- (Title) By: (Na (Title) Tony Pauker Senior We Presi&M, Regional P San Dlego4n Town Communities resident The Olson Company Mutual Rescission Agreement CDC and Olsen Urban Housing, LLC RESOLUTION 2007 - 31 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY AUTHORIZING THE CHAIRMAN TO EXECUTE A MUTUAL RESCISSION AGREEMENT WITH OLSON URBAN HOUSING, LLC WHEREAS, the Community Development Commission of the City of National City ("CDC") and Olson Urban Housing, LLC ("Developer") entered into a. Disposition and Development Agreement ("Agreement") on or about March 23, 2004, for the redevelopment of a certain approximately.1.26 acre portion of the National City Redevelopment Project; and WHEREAS, the CDC and the Developer have now determined that it is in their best interests to rescind the Agreement. NOW, THEREFORE, BE IT RESOLVED that the Community Development Commission of the City of National City hereby authorizes the Chairman to execute a Mutual Rescission Agreement by and between the CDC and Olson Urban Housing, LLC. Said Agreement is on file in the office of the City Clerk. PASSED and ADOPTED this 20th day of February Ron Morfison, Cfiair ATTEST: 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 20, 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 Development Commission Secretary, opment Commission By: Deputy I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 2007-31 of the Community Development Commission of the City of National City, California, passed and adopted on February 20, 2007. Secretary, Community Development Commission By: Deputy r City of National City, California COMMUNITY DEVELOPMENT COMMISSION AGENDA STATEMENT MEETING DATE February 20, 2007 AGENDA ITEM NO. 29 ITEM TITLE A resolution approving a Mutual Rescission Agreement by and between the Community Development Commission and Olson Urban Housing, L.L.C. PREPARED BY Patricia Beard Redevelopment Manag EXPLANATION On March 23, 2004, the Community Development Commission ("CDC") and Olson Urban Housing ("Olson") entered into a Disposition and Development Agreement for a 40-unit live work townhouse project on 1.26 acres located at 835 Bay Marina Drive in the National City Harbor District. In order to develop the project, approval of an amendment to the National City Local Coastal Program ("LCPA") was required from the California Coastal Commission. CDC staff prepared and submitted the LCPA application to the California Coastal Commission on August 26, 2005, however significant public opposition to the project arose from the Working Waterfront Group and the Port of San Diego adopted a guideline establishing a 1000-foot buffer between residential and industrial uses, impacting the project negatively. After several months of discussions and attempts to modify the project proposal, CDC staff and Olson decided a housing project could not be approved in this location at this time. This Agreement would terminate the DDA and refund Olson's developer deposit related to the project. DEPARTMENT Community Development Commission Environmental Review Not applicable. Financial Statement Olson Urban Housing, L.L.C. will be refunded $37,500 of an initial developer deposit of $50,000 if the Mutual Rescission Agreement is approved. Of $12,500 non-refundable monies in the deposit, CDC spent $11,938.64. Account No STAFF RECOMMENDATION Adopt the resolution. BOARD / COMMISSION RECOMMENDATION Not applicable. ATTACHMENTS 1. Mutual Rescission Agreement • Resolution No. °o `� MUTUAL RESCISSION AGREEMENT BY AND BETWEEN THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY AND OLSON URBAN HOUSING, LLC This Mutual Rescission Agreement is made and entered into this 20th day of February, 2007, by and between the Community Development Commission of the City of National City, a community development commission (the "CDC"), and Olson Urban Housing, LLC, a Delaware limited liability company (the "Developer"). RECITALS A. The CDC and the Developer entered into a Disposition and Development Agreement (the "Agreement") on or about March 23, 2004, for the redevelopment of a certain approximately 1.26 acre portion of the National City Redevelopment Project. B. The CDC and the Developer have now determined that it is in their best interests to rescind the Agreement. NOW, THEREFORE, in consideration for the mutual benefit to be derived therefrom, the CDC and the Developer hereby agree as follows: CONSENT TO RESCISSION 1. The CDC and the Developer hereby consent and agree to rescind that certain Disposition and Development Agreement dated March 23, 2004. RETURN OF DEPOSIT 2. In connection with the redevelopment project that was the subject of the Disposition and Development Agreement, the Developer deposited with the CDC the sum of $50,000, $37,500 of which was agreed to be refundable to the Developer if the project was not completed. Accordingly, upon the approval of this Mutual Rescission Agreement by the CDC Board, the sum of $37,500 will be refunded by the CDC to the Developer. SURRENDER OF RIGHTS 3. The CDC and the Developer mutually agree to forego all rights and benefits provided for under the Disposition and Development Agreement as consideration for the rescission of that Agreement. IN WITNESS WHEREOF, the CDC and the Developer have executed this Mutual Rescission Agreement as of the date set forth above. COMMUNITY DEVELOPMENT OF THE CITY OF NATIONAL CITY, a public body, corporate and politic By: Ron Morrison, Chairman APPROVED AS TO FORM: George H. Eiser, III CDC Legal Counsel OLSON URBAN HOUSING, LLC, a Delaware limited liability company By:. (Nam 61 1.. '- '.c_ (Title) (Title) Senior vice , Renal ratt President Communities 2 Mutual Rescission Agreement CDC and Olsen Urban Housing, LLC STATE OF CALIFORNIA COUNTY OF SAN DIEGO CITY OF NATIONAL CITY ) ss. I, Brad Raulston, Secretary of the Community Development Commission of National City, do hereby certify that the foregoing Resolution No. 2007-xx was adopted at a regular meeting of the Community Development Commission of National City held on February 20, 2007, by the following vote: AYES: NOES: ABSENT: ABSTAIN: Brad Raulston, Executive Director -2- RESOLUTION NO. 2007 — RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY AUTHORIZING THE CHAIRMAN TO EXECUTE A MUTUAL RESCISSION AGREEMENT WITH OLSON URBAN HOUSING, LLC WHEREAS, the Community Development Commission of the City of National City ("CDC") and Olson Urban Housing, LLC ("Developer") entered into a Disposition and Development Agreement ("Agreement") on or about March 23, 2004, for the redevelopment of a certain approximately 1.26 acre portion of the National City Redevelopment Project; and WHEREAS, the CDC and the Developer have now determined that it is in their best interests to rescind the Agreement. NOW, THEREFORE, BE IT RESOLVED that the Community Development Commission of the City of National City hereby authorizes the Chairman to execute a Mutual Rescission Agreement by and between the CDC and Olson Urban Housing, LLC. Said Agreement is on file in the office of the City Clerk. PASSED and ADOPTED this 20th day of February 2007. Ron Morrison, Chairman ATTEST: Brad Raulston, Secretary APPROVED AS TO FORM: George H. Eiser, III Legal Counsel 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 5, 2007 Mr. Tony Pauker Olson Urban Housing, LLC 9191 Towne Centre Drive, Suite L-101 San Diego, CA 92122 Dear Mr. Pauker, On February 20, 2007, Resolution No. 2007-31 was passed and adopted by the Community Development Commission of the City of National City, authorizing execution of a mutual rescission agreement with Olson Urban Housing, LLC. We are forwarding for your records a certified copy of the above Resolution and a fully executed original agreement. Sincerely, ichael R. Da la City Clerk Enclosure ® Recycled Paper