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Home My WebLink About2009 CON CDC Marina Gateway Dev. Co. - Amendment #2 ENA1 JUNE 2009 AMENDMENT TO EXCLUSIVE NEGOTIATING AGREEMENT BETWEEN THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY AND MARINA GATEWAY DEVELOPMENT COMPANY, LLC This AMENDMENT is entered into by the Community Development Commission of the City of National City, a public body, corporate, and politic (hereafter referred to as the "CDC"). and Marina Gateway Development Company, LLC, a California limited liability company (hereafter referred to as "Developer"), to extend the First Negotiation Period under the Exclusive Negotiating Agreement between the CDC and Developer. RECITALS WHEREAS, on June 19, 2007, the CDC entered into an EXCLUSIVE NEGOTIATING AGREEMENT with the DEVELOPER: and WHEREAS, the City and the DEVELOPER are working together to recruit two more restaurants to Marina Gateway; and WHEREAS, attracting and retaining businesses requires that the City and the DEVELOPER build a compelling case to meet the retailer's site selection criteria; and WFIEREAS, on February 19, 2008, the CDC and Developer, entered into a Memorandum of Understanding (hereafter referred to as "MOU") for the purpose of designating the agencies responsible for payment of the Buxton Community ID marketing contract for $50,000, and for extending CDC's Exclusive Negotiating Agreement with the Developer; and WHEREAS. the Developer paid $25,000 toward the cost of CDC's $50,000 contract with Buxton Community ID; and WHEREAS, the CDC recognizes the DEVELOPER's investment and effort on the Marina Gateway Hotel Site, and that such investment increased the value of Sites A and B, and that DEVELOPER accepted great risk in such a project; and WHEREAS. in light of the foregoing recital, if the CDC and the Developer proceed to a DDA with Sites A and B, when the CDC determines the consideration to be paid by the Developer under the DDA. the Developer's risk and effort to create Marina Gateway may properly be considered by the CDC; and, WHEREAS, the serious current economic downturn, in addition to the dilapidated and blighted condition of the buildings on Site B (which the CDC is now remedying), have created additional factors militating against the Developer gaining interest from prospective users; and Page 1 of 3 MAY 2009 AMENDMENT TO TIIE CDC'S ENA WITII MGDC WHEREAS, the CDC agrees to extend the FIRST NEGOTIATION PERIOD under the EXCLUSIVE NEGOTIATING AGREEMENT for (i) Site A, Assessor Parcel Number 559-118- 02 and the adjacent property, roughly described as running from the southeast corner of the APN parcel. along the western edge of the Caltrans right of way. to the intersection of the projection of the centerline of McKinley Avenue: and then, along the centerline projection to the projection of the northern boundary of the Site; and then. along the northern boundary projection, to the northeast corner of the Site (APN 760-106-63), and (ii) Site B. Assessor Parcel Numbers 559- 117-04. 05, 06. 07. 12. 16. 17 in National City. (ENA for Sites A and B) with the DEVELOPER until June 30, 2010. NOW THEREFORE, in consideration of the above recitals and mutual covenants and conditions set forth herein, and for good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, the Parties agree to the following: 1. The Recitals set forth above are true and correct, and fully incorporated and agreed to herein. Specifically, the CDC agrees to extend the FIRST NEGOTIATION PERIOD under the EXCLUSIVE NEGOTIATING AGREEMENT for Sites A and B until June 30, 2010, and all other terms of the ENA shall remain the same, unless otherwise amended. 3. The DEVELOPER will provide written progress reports to the CDC staff every 30 days advising on progress and/or problems with the proposed development, and will present updates on the proposed development to the CDC Board at public meetings of the Board, as requested by the CDC's Executive Director. REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK Page 2 of 3 MAY 2009 AMENDMENT I() III[: CDCS ENA WITH MGDC 4. This AMENDMENT fully expresses the final and complete understanding of the CDC and the DEVELOPER concerning the matters covered therein. No change, alteration, or modification of the terms or conditions of this Amendment, and no verbal understanding, shall be valid unless made in writing and signed by each party's duly authorized representatives. All prior negotiations and agreements concerning the matters covered herein are merged into this Amendment. IN WITNESS WHEREOF, the CDC and DEVELOPER agree to abide by the terms of this Amendment, and hereby execute the same by and through their duly authorized representatives. Date: co DEVELOPER: Marina Gateway Development Company, LLC By Sycuan Tribal Dev lopment Corporation, Manager By Its l o I ( hn GL Approved as to form: By ,s6� Its APPROVED BY GAL DEPARTMENT <ID1� THE COMMUNITY DEVELOPMEN OMMISSION OF NATIONAL CITY Date: June 16, 2009 Date: June 16, 2009 Approved as to form: By By By Ron Morrison, Chairman , Secretary 31IIt George Eiser, City Attorney Page 3 of 3 MAY 2009 AMENDMENT TO TILE CDC'S ENA WITH MGDC RESOLUTION NO. 2009 — 165 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF NATIONAL CITY APPROVING THE SECOND AMENDMENT TO THE EXCLUSIVE NEGOTIATION AGREEMENT ("ENA") BY AND BETWEEN THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY AND MARINA GATEWAY DEVELOPMENT COMPANY, LLC FOR TWO BLOCKS NORTH OF BAY MARINA DRIVE OWNED BY THE COMMUNITY DEVELOPMENT COMMISSION, TO EXTEND THE FIRST NEGOTIATION PERIOD UNDER THE ENA THROUGH JUNE 30, 2010 WHEREAS, on June 19, 2007, the Community Development Commission of the City of National City (the "CDC") entered into an Exclusive Negotiation Agreement (the "ENA") with Marina Gateway Development Company, LLC (the "Developer") to develop APNs 559- 118-02, 559-117-04, 05, 06, 07, and 12, two blocks located on the north side of Bay Marina Drive (the "Site") to prospective users compatible with the nearby Marina Gateway Hotel and Commercial Project; and WHEREAS, on February 18, 2008, the CDC approved an extension to the ENA and a Memorandum of Understanding with the Developer to work cooperatively to recruit prospective users to the Site; and WHEREAS, the Developer has contributed $25,000 toward a marketing contract for the Site; and WHEREAS, the Developer is completing the Marina Gateway Hotel and Commercial Project including opening Buster's Beach House restaurant, and WHEREAS, the current economic downturn and the existence of blight on portions of the Site have militated against attracting prospective users to the Site; and WHEREAS, the Developer has proposed an Amendment to the ENA to extend the First Negotiation Period through June 30, 2010, to give the Developer additional time to generate interest in the Site by prospective users; and WHEREAS, the Developer has agreed in the proposed Amendment to the ENA to provide monthly written updates to staff and public updates to the CDC Board upon request from the Executive Director; and WHEREAS, a revised project description consistent with the Coastal Development Permit for the project has been prepared. NOW, THEREFORE, BE IT RESOLVED, that the Community Development Commission of National City hereby approves the Second Amendment to the Exclusive Negotiation Agreement by and between the Community Development Commission of the City of National City and Marina Gateway Development Company, LLC, for two blocks north of Bay Marina Drive owned by the Community Development Commission, to extend the First Negotiation Period through June 30, 2010. Said Second Amendment to the Exclusive Negotiation Agreement is on file in the office of the City Clerk. --- Signature Page to Follow --- Resolution No. 2009 — 165 June 16, 2009 Page 2 PASSED and ADOPTED this 16th day of June, 2009. on Morrison, Chairman ATTEST: aauulston, Secretary APPROVED AS TO FORM: faX) goCi;k George H. Eiser, III City Attorney Passed and adopted by the Community Development Commission of the City of National City, California, on June 16, 2009, by the following vote, to -wit: Ayes: Commissioners Morrison, Parra, Sotelo-Solis, Van Deventer, Zarate. Nays: None. Absent: None. Abstain: None. AUTHENTICATED BY: RON MORRISON Chairman, Community Development Commission Secretary, omvelopment Commission By: Deputy I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 2009-165 of the Community Development Commission of the City of National City, California, passed and adopted on June 16, 2009. Secretary, Community Development Commission By: Deputy City of National City, California COMMUNITY DEVELOPMENT COMMISSION AGENDA STATEMENT MEETING DATE June 16, 2009 AGENDA ITEM NO. 42 TITLE RESOLUTION APPROVING THE SECOND AMENDMENT TO THE EXCLUSIVE NEGOTIATION AGREEMENT ("ENA") BY AND BETWEEN THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY AND MARINA GATEWAY DEVELOPMENT COMPANY, LLC FOR TWO BLOCKS NORTH OF BAY MARINA DRIVE OWNED BY THE COMMUNITY DEVELOPMENT COMMISSION, TO EXTEND THE FIRST NEGOTIATION PERIOD UNDER THE ENA THROUGH JUNE 30, 2010. PREPARED BY Qq-(1 DEPARTMENT Patricia Beard, Redevelopment Manager Redevelopment Division Ext 4250 EXPLANATION On June 19, 2007 the Community Development Commission ("CDC") Marina Gateway Development Company, LLC ("MGDC") entered an Exclusive Negotiation Agreement ("ENA") to perform due diligence for development of two blocks owned by the CDC immediately north of the Marina Gateway Hotel site at Cleveland Ave and Bay Marina Drive as restaurants. On February 19, 2008, the CDC and MGDC entered into a Memorandum of Understanding and ENA amendment to jointly retain Buxton Community ID to market the site and identify potential tenants. The proposed Second Amendment would allow MGDC an additional year during which to identify tenants and submit plans for the project. Please see attached Background Report. Environmental Review Not applicable. Financial Statement MGDC has deposited $25,000 for use in economic analysis of their development proposal and in crafting a Development and Disposition Agreement for CDC consideration. Account No. 511-409-500-598-3937 STAFF RECOMMENDATION Adopt the resolution. BOARD / COMMISSION RECOMMENDATION Not applicable. J ATTACHMENTS 1. Background report 2. Proposed Agreement Resolution No. 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 June 29, 2009 Mr. Michael Weber Marina Gateway Development Company, LLC MRW Group, Inc. 922 West 23rd Street National City, CA 91950 Dear Mr. Weber, On June 16th, 2009, Resolution No. 2009-165 was passed and adopted by the Community Development Commission of the City of National City, approving the Second Amendment to the Exclusive Negotiation Agreement with Marina Gateway Development Company, LLC. We are enclosing for your records a certified copy of the above Resolution and a fully executed original amendment. Sincerely, Michael R. Dalla, CMC City Clerk Enclosures cc: Community Development Commission ® Recycled Paper