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Home My WebLink About2008 CON CDC Palm Plaza Associates - 3rd Amendment Exclusive Negotiation AgreementTHIRD AMENDMENT TO EXCLUSIVE NEGOTIATION AGREEMENT BETWEEN THE COMMUNITY DEVELOPMENT COMMISSION OF NATIONAL CITY AND PALM PLAZA ASSOCIATES, LLC This Amendment, effective as of March 18, 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, on February 6, 2007 the CDC approved a Second Amendment to the Agreement for an additional 180 days to refine the project; and WHEREAS, on May 21, 2007 the CDC approved a concept plan for 76 condominiums, associated common areas and parking spaces as well as 5,800 square feet of retail space; and WHEREAS, as previously discussed the Developer has now sold the retail - designated space to Thrifty Oil; 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 complete land use entitlements, environmental review and negotiate a Disposition and Development Agreement to complete the Project. NOW THEREFORE, THE PARTIES AGREE TO AMEND THE AGREEMENT AS FOLLOWS: Page 1 of 2 3«a Amendment to Agreement Palm Plaza Associates 1. The Developer and CDC shall continue exclusive negotiations for an additional one hundred and eighty (180) days to complete land use entitlements, environmental review and DDA negotiations. Accordingly, the deadline for accomplishing these tasks is September 18, 2008. 2. With the foregoing exception, each and every provision of the Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the Parties have entered into this Amendment as of March 18, 2008. COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY, a com ni y development commission By on Morrison, Chairman ATTEST: By: Bra+ 'a'"':n, Secretary APPROVED AS TO FORM: By: /, /7 L mg George Eiser, III CDC Counsel Dated: March 18, 2008 PALM PLAZA ASSOCIATES, LLC, a California limited liability company By: By: Page 2 of 2 3rd Amendment to Agreement Palm Plaza Associates RESOLUTION NO. 2008 — 47 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY AUTHORIZING THE CHAIRMAN TO EXECUTE THE THIRD AMENDMENT TO EXCLUSIVE NEGOTIATION AGREEMENT BETWEEN THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY AND PALM PLAZA ASSOCIATES, LLC WHEREAS, on January 10, 2006, the Acevedo Group and Community Development Commission of the City of National City (CDC) entered into an Agreement for a 1.07-acre parcel ("Site") located at 1640 East Plaza Boulevard; and WHEREAS, during the exclusive negotiation period, the Acevedo Group 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 Acevedo; and WHEREAS, as a result of their partnership, on June 20, 2006, the Acevedo Group requested and the CDC approved an assignment of the Agreement to their newly formed Palm Plaza Associates, LLC (Developer); 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, on February 6, 2007, the CDC approved a Second Amendment to the Agreement for an additional 180 days to refine the project; and WHEREAS, on May 21, 2007, the CDC approved a concept plan for 76 condominiums, associated common and parking spaces as well as 5,800 square feet of retail space; and WHEREAS, the Developer has now sold the retail -designated space to Thrifty Oil; 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 complete land use entitlements, environmental review and negotiate a Disposition and Development Agreement to complete the Project. NOW, THEREFORE, BE IT RESOLVED that the Community Development Commission of the City of National City hereby authorizes the Chairman to execute a Third Amendment to Exclusive Negotiation Agreement between the Community Development Commission of the City of National City and Palm Plaza Associates, LLC. --- Signature Page to Follow --- Resolution No. 2008 — 47 March 18, 2008 Page 2 PASSED and ADOPTED this 18th day of M APPROVED AS TO FORM: git George H. Eiser, III Legal Counsel IIIF on Morrison, Chairman Passed and adopted by the Community Development Commission of the City of National City, California, on March 18, 2008, 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, C evelopment Commission By: Deputy I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 2008-47 of the Community Development Commission of the City of National City, Califomia, passed and adopted on March 18, 2008. Secretary, Community Development Commission By: Deputy caooc, • a% City of National City, California COMMUNITY DEVELOPMENT COMMISSION AGENDA STATEMENT MEETING DATE March 18, 2008 17 AGENDA ITEM NO ITEM TITLE A resolution approving the Third Amendment to Exclusive Negotiation Agreement between the Community Development Commission and Palm Plaza Associates, LLC. PREPARED BY � DEPARTMENT ` Patricia Beard ext. 4255 9'" Redevelopment Division Redevelopment Manager EXPLANATION Since December, 2005 the CDC and the Acevedo Group, later forming Palm Plaza Associates, LLC have been seeking to redevelop a 1.07-acre property known as the "Old Days Inn site", which the CDC owns at 1640 E. Plaza Boulevard. In May, 2007, after many design revisions and property negotiations, a conceptual design and probable purchase price for the land. The concept included the development of 76 market rate condominiums and associated improvements, and 5,800 square feet of retail space. It was understood that the Developer would sell the commercial portion of the project to Thrifty Oil for a project encompassing a renovation of the gas station at Palm Avenue and Plaza Boulevard and this transaction did subsequently occur. However since that time, market conditions for condominium projects have softened significantly causing the Developer to consider again revising the project concept. This amendment signifies the Developer and CDC's Agreement to move forward with the 76 unit condominium project as previously approved, with the units possibly being rented as apartments while the market recovers. Environmental Review Environmental review per the California Environmental Quality Act will be conducted prior to consideration of a Disposition and Development Agreement. Financial Statement The developer previously deposited $25,000 for the ENA. No additional deposit is required for this Amendment. Account No 9 1• STAFF RECOMMENDATION Adopt the resolution. BOARD / COMMISSION RECOMMENDATION Not applicable. ATTACHMENTS 1. Third Amendment to Agreement 2. Resolution Resolution No. '00% 'I 1 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 26, 2008 Mr. Juan -Pablo Mariscal Palm Plaza Associates, LLC 12760 High Bluff Drive, Suite 275 San Diego, CA 92130 Dear Mr. Mariscal, On March 18°1, 2008, Resolution No. 2008-47 was passed and adopted by the Community Development Commission of the City of National City, authorizing execution of a third 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 original agreement. Sincerely, Michael R. calla, CMC City Clerk Enclosure cc: Community Development Commission ® Recycled Paper