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Home My WebLink About2008 CON Constellation Property Group - Addendum Relocation Cost ILWUADDENDUM TO AGREEMENT BETWEEN THE CITY OF NATIONAL CITY AND CONSTELLATION PROPERTY GROUP REGARDING RELOCATION COSTS FOR THE INTERNATIONAL LONGSHORE AND WAREHOUSE UNION LOCAL NO. 29 OFFICES THIS ADDENDUM to Agreement Between the City of National City and Constellation Property Group, Regarding Relocation Costs for the International Longshore and Warehouse Union Local No. 29 Offices (this "Addendum") is made and entered into as of June 17, 2008 (the "Effective Date"), by and between the City of National City, a public body, corporate and politic (the "City") and Constellation Property Group (NatCity 126h) LP, a Delaware limited partnership ("CPG"). Recitals A. The City and CPG entered into that certain Agreement Between the City of National City and Constellation Property Group Regarding Relocation Costs for the International Longshore and Warehouse Union Local No. 29 Offices on October 6, 2006 (the "Original Agreement"). B. The City and CPG wish to amend the Original Agreement to modify the method and timing of payment for the CPG Portion of the Costs of the relocation of the International Longshore and Warehouse Union Local No. 29 ("ILWU") offices. NOW, THEREFORE, in consideration of the mutual covenants herein contained, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the City and CPG agree as follows: Agreement 1. CPG Portion of the Costs. The total CPG Portion of the Costs of the relocation of the ILWU is $70,000 pursuant to Section 1 of the Original Agreement. 1.1 Allocation of Tree Donation Proceeds. The City of National City and Constellation Property Group entered into an agreement effective May 6`h, 2008, (the "Tree Donation Agreement") whereby CPG donated mature trees to the City with a total donation value of $71,171.50. A portion of the total donation value equal to $25,171.50 was an expense directly related to the relocation of the trees (the "Tree Relocation Expense"). The CPG Portion of the Costs of relocation of the ILWU shall be deemed to have been reduced by an amount equal to the Tree Relocation Expense such that the remaining CPG Portion of the Costs shall be $44,828.50 (the "Remaining CPG Costs") 1.2 Rate. The Remaining CPG Costs shall bear interest from the effective date hereof computed and calculated based upon a three hundred sixty (360)-day year and actual days elapsed and shall accrue at the per annum rate of 4.5 percent. 2. Time. The Remaining CPG Costs and interest, thereon, shall be payable in consecutive monthly installments of five thousand dollars ($5,000) or more on the first day of each month beginning June 15, 2009. Such payments shall continue until the Remaining CPG Costs and all accrued and unpaid interest is fully paid, with any unpaid Remaining CPG Costs and interest due and payable no later than June 15, 2010. 3. Miscellaneous. Except to the extent expressly modified by this Addendum, the Original Agreement remains in full force and effect. To the extent of any inconsistency between this Addendum and the Original Agreement, the terms and conditions of this Addendum shall control. This Addendum may be executed in multiple counterparts, all of which, taken together, shall constitute one and the same document. IN WITNESS WHEREOF, the City and CPG have executed this Addendum as of the Effective Date first set forth above. CPG: City: Constellation Property Group (NatCity 12th) City of Na 'onal City, a public body, LP, a Delaware limited partnership corpor d po c By: Nam Ron Morrison Its: Mayor By: Constellation Property Management, Inc., a Delaware corporation Its: General Partner B• Wayne ann De opment'Director 2 RESOLUTION NO. 2008 — 144 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO EXECUTE AN ADDENDUM TO THE AGREEMENT BETWEEN THE CITY OF NATIONAL CITY AND CONSTELLATION PROPERTY GROUP REGARDING RELOCATION COSTS FOR THE INTERNATIONAL LONGSHORE AND WAREHOUSE UNION LOCAL NO. 29 OFFICES WHEREAS, on October 3, 2006, the City Council adopted Resolutic \Jo. 2006- 212, approving an Agreement with Constellation Property Group for the payment o 70,000 to the City for the cost of tenant improvements to the former National City Public Libra, ocated at 41 East 12th Street to accommodate the relocation of the International Lor .ore and Warehouse Union Local No. 29 offices; and WHEREAS, the City and Constellation Property Group desire tc_ end the Agreement to modify the method and timing of payment for the Constellation PKr Group portion of costs of the relocation costs by allowing $25,171.50 to be crediteo nst the $70,000 relocation costs and require the developer to pay 4.5 percent (4.5%) inter:: ,)ward a pay-off date of June 15, 2010. NOW, THEREFORE, BE IT RESOLVED that the City Council :,ity of National City hereby authorizes the Mayor to execute the Addendum to the Agreer. :tween the City of National City and Constellation Property Group modifying the method : 'ling of payment for the Constellation Property Group portion of costs of the relocation cos`- 'owing $25,171.50 to be credited against the $70,000 relocation costs and require the deo ,o pay 4.5 percent (4.5%) interest toward a pay-off date of June 15, 2010. Said Ar, ium to Agreement is on file in the office of the City Clerk. PASSED and ADOPTED this 15th day of July, 20 Ron Morrison, IV, ATTEST: /r Mic - el R. Dall .`, City Clerk APPROVED AS TO FORM: George H. Eiser, III City Attorney Passed and adopted by the Council of the City of National City, California, on July 15, 2008 by the following vote, to -wit: Ayes: Councilmembers Morrison, Natividad, Parra, Ungab, Zarate. Nays: None. Absent: None. Abstain: None. AUTHENTICATED BY: RON MORRISON Mayor of the City of National City, California N City C rk of the City oVJNational City, Califomia By: Deputy I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 2008-144 of the City of National City, California, passed and adopted by the Council of said City on July 15, 2008. City Clerk of the City of National City, California By: Deputy City of National City, California CITY COUNCIL AGENDA STATEMENT MEETING DATE July 15, 2008 AGENDA ITEM NO. 12 ITEM TITLE Resolution approving an Addendum to Agreement between the City of National City and Constellation Property Group regarding $70,000 relocation costs for the International Longshore and Warehouse Union Local No. 29 Offices. PREPARED BY Rt) Patricia Beard (ext 4255) Redevelopment Manager DEPARTMENT Redevelopment Division Strategic Goals: 2, 5a EXPLANATION On October 6, 2006 the City and Constellation Property Group entered into an Agreement regarding relocation costs to move the international Longshore and Warehouse Union Local No. 29 offices from a building within the Centro -Lumina -Revolution project site into new space at the former National City Library. The proposed addendum presented here for consideration would change the method of repayment of relocation costs to the City by Constellation. (Please see attached Background Report.) Environmental Review Not applicable 4p (' :4:1w 6471� Financial Statement The addendum would allow $25,171.50 to be credited against the $70,000 relocation costs and require the developer to pay 4.5-percent interest toward a pay- off date of June 15. 2010. (Please see attached Backaround Report.) Account No. 900744 STAFF RECOMMENDATION Adopt the resolution. BOARD / COMMISSION RECOMMENDATION Not applicable. J f ATTACHMENTS 1. Background report 2. Proposed Addendum to Agreement Resolution No. aoo ��,y City of National City Office of the City Clerk 1243 National City Boulevard, National City, CA 91950-4397 Michael R. Dalla, CMC - City Clerk (619) 336-4228 Fax: (619) 336-4229 July 17, 2008 Mr. Wayne Hann Development Director Constellation Property Group 1133 Columbia Street, Suite 101 San Diego, CA 92101 Dear Mr. Hann, On July 15th, 2008, Resolution No. 2008-144 was passed and adopted by the City Council of the City of National City, authorizing execution of an addendum to the agreement with Constellation Property Group. We are forwarding for your records a certified copy of the above Resolution and a fully executed copy of the agreement. Michael R. Dalla, CMC City Clerk Enclosures cc: Community Development Commission ® Recycled Paper