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Home My WebLink About2008 CON CDC Palm Plaza Associates - 4th Amendment Exclusive Negotiation AgreementFOURTH AMENDMENT TO EXCLUSIVE NEGOTIATION AGREEMENT BETWEEN THE COMMUNITY DEVELOPMENT COMMISSION OF NATIONAL CITY AND PALM PLAZA ASSOCIATES, LLC This Amendment, effective as of November 18, 2008, 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 and parking spaces as well as 5,800 square feet of retail space; and WHEREAS, the Developer sold the retail -designated space to Thrifty Oil; and WHEREAS, on October 8, 2008 the Developer submitted plans for land use entitlements to develop the 76-unit condominium project in keeping with the concept plan approved by the CDC; 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, receive written certification from FEMA, complete environmental Page 1 of 2 4th Amendment to Agreement Palm Plaza Associates review and negotiate a Disposition and Development Agreement to complete the Project. 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 complete land use entitlements, environmental review and DDA negotiations. Accordingly, the deadline for accomplishing these tasks is May 18, 2009. 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 November 18, 2008. COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY, a communit ,development commission B on Morrison, Chairman ATTEST: By: Bra %r'': ston, Secretary APPROVED AS TO FORM: By: George iser, III CDC Counsel Dated: Ji /S-OS PALM PLAZA ASSOCIATES, LLC, a California limited liability company By: Page 2 of 2 4th Amendment to Agreement Palm Plaza Associates RESOLUTION NO. 2008 — 241 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY AUTHORIZING THE CHAIRMAN TO EXECUTE THE FOURTH AMENDMENT TO EXCLUSIVE NEGOTIATION AGREEMENT BETWEEN 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 Exclusive Negotiation Agreement (the "Agreement") for a 1.07-acre parcel ("Site") located at 1640 East Plaza Boulevard, National City; 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 and parking spaces as well as 5,800 square feet of retail space; and WHEREAS, on March 18, 2008, the CDC approved a Third Amendment to the Agreement for an additional 180 days due to market considerations; and WHEREAS, on October 8, 2008, the Developer submitted plans for land use entitlements and review per the California Environmental Quality Act; 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. Resolution No. 2008 — 241 November 18, 2008 Page 2 NOW, THEREFORE, BE IT RESOLVED that the Community Development Commission of the City of National City hereby authorizes the Chairman to execute the Fourth Amendment to Exclusive Negotiation Agreement between the Community Development Commission of the City of National City and Palm Plaza Associates, LLC., extending the Agreement until May 18, 2009. PASSED and ADOPTED this 18th day of Novem r, 2008. Ron orrison, Chairman ATTEST: APPROVED AS TO FORM: George H. Eiser, III City Attorney Passed and adopted by the Community Development Commission of the City of National City, California, on November 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 Secreta - •mmunity 'evelopment Commission By: Deputy I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 2008-241 of the Community Development Commission of the City of National City, California, passed and adopted on November 18, 2008. Secretary, Community Development Commission By: Deputy City of National City, California COMMUNITY DEVELOPMENT COMMISSION AGENDA STATEMENT 33 MEETING DATE November 18, 2008 AGENDA ITEM NO. (ITEM TITLE A resolution approving the Fourth Amendment to Exclusive Negotiation Agreement between the Community Development Commission and Palm Plaza Associates, LLC. for the former Days Inn site. PREPARED BY Patricia Beard ext. 4255 Redevelopment Manager DEPARTMENT Redevelopment Division 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", owned by CDC at 1640 E. Plaza Boulevard. In May, 2007, a conceptual design for the project was approved by the CDC. 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. Since that time, the Developer has continued efforts on the project and on October 8, 2008 submitted application for land use entitlements and review under the California Environmental Quality Act. This Amendment would extend the ENA until May 18, 2009. Staff anticipates a Development and Disposition Agreement to be brought forward for consideration prior to that date. The submitted project is consistent with the concept plan previously approved. Environmental Review Not applicable. Financial Statement The developer previously deposited $25,000 for the ENA. No additional deposit is required for this Amendment. Account No. 511-409-500-598-3932 STAFF RECOMMENDATION Adopt the resolution. BOARD / COMMISSION RECOMMENDATION Not applicable. 1 • ATTACHMENTS 1. Fourth Amendment to Agreement 2. Resolution No. 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 November 24, 2008 Mr. Juan -Pablo Mariscal Palm Plaza Associates, LLC 12760 High Bluff Drive, Suite 275 San Diego, CA 92130 Dear Mr. Mariscal, On November 18th, 2008, Resolution No. 2008-241 was passed and adopted by the Community Development Commission of the City of National City, authorizing execution of a fourth 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. Dalla, CMC City Clerk Enclosure cc: Redevelopment Division ® Recycled Paper