Item 17 - Exclusive Negotiation Agreement with Chrysler Realty Corp'AGENDA REPORT �`�"
CITY OF POWAY
This report is included on the Consent Calendar. There will be no separate discussion of the
report prior to approval by the City Council unless members of the Council, staff or public
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and give it to the City Clerk prior to the beginning of the City Council meeting.
TO: Honorable Chairman and Members of the Redevelopment Agency
FROM: James L. Bowersox, Executive Dir c
DATE: April 22, 1986
SUBJECT: Exclusive Negotiation Agreement with Chrysler Realty Corp.
BACKGROUND
In July 1985, the Redevelopment Agency entered into an Exclusive
Negotiation Agreement with Bruce A. Carey. The purpose of this
agreement was to permit Mr. Carey to establish an automobile
dealership along the south side of Poway Road east of Midland Road.
That agreement expired in November 1985., Since that time, staff
has been working on alternative plans for the establishment of this
dealership which has now been identified as Dodge /Dodge Trucks.
Representatives of Chrysler Corporation have stated that the .land
and buildings for the Poway dealership will be constructed and
owned by Chrysler Realty. Therefore, it seems most appropriate
to work directly with Chrysler Realty for the purpose of establishing
a Dodge /Dodge Truck dealership.
L TTTT TTT/- C
Attached for Agency consideration is an Exclusive Negotiation
Agreement with Chrysler Realty Corporation. This agreement provides
that the Redevelopment Agency will work with Chrysler Realty Corpora-
tion to establish an automobile dealership with the City of Poway.
RECOMMENDATION
It is recommended that the Redevelopment Agency authorize the
Executive Director to sign the Exclusive Negotiation Agreement
with Chrysler Realty Corporation.
ACTION:
Adopted staff recommendation,
of ei ert, Deputy City Clerk
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APR 22 1986 ITEM 17
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EXCLUSIVE NEGOTIATION AGREEMENT
THIS AGREEMENT is made by and between the Redevelopment Agency of the
City of Poway (the "AGENCY ") and Chrysler Realty Corporation (the
•U0f*
1. The AGENCY
"site ") within the
be developed in acc
Plan for the Paguay
2. The site is
the proposed extension
attached hereto marked
3. DEVELOPER,
RECITALS
that certain parcels of real property (the
Redevelopment Project Area (the "Project Area ")
with the provisions of the adopted Redevelopment
Area (the "Plan").
>cated on the south side of Poway Road easterly of
of Midland Drive. A map depicting the site is
Exhibit "A ".
t to the California Community Redevelopment Law
(California Health andlSafety Code Sections 33000, et seq.), desires to
develop the property in accordance with the Plan.
4. AGENCY and DEVELOPER desire to enter into an agreement which will
permit the parties to make the necessary analysis to determine the feasibi-
lity of developing an auto dealership on the site, and to negotiate a
Development and Disposition Agreement (the "DDA ") which if negotiated and
approved would provide
for development of the
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for the conveyance of the Parcel to the DEVELOPER
site in accordance with the Plan.
aR
APR 22 1986 ITEM 17
Q
NOW, THEREFORE, The
Section 1. Recita
if set forth in full.
Section 2. Negotia
described in Section 3,
prepare a Disposition a
DEVELOPER for the devel
of the Plan.
Section 3. Neqotia
Ell
and DEVELOPER agree as follows:
. The above recitals are incorporated herein as
. AGENCY and DEVELOPER agree for the period
aw, to use their best efforts to negotiate and
Development Agreement between AGENCY and
ent of the site in accordance with the provisions
ion. AGENCY agrees that it will not negotiate with
any other person or entity for the development of the site for a period of
one hundred - twenty days (120).
Section 4. AGENCY Cooperation. AGENCY agrees to promptly provide to
the DEVELOPER all information possessed by AGENCY reasonably related to the
development of the site including, but not limited to, marketing and econo-
mic date relating to the use of the site for an auto dealership, traffic
studies, population and demographic studies and the like. DEVELOPER agrees
to provide Agency with all such information that it possesses and /or
generates during the exclusive negotiating period provided such.information
shall remain confidentiail.
Section 5. Additional Steps and Procedures. Both AGENCY and DEVELOPER
acknowledge that as sooi as possible after execution of this Negotiation
Agreement, the following steps and procedures need to be implemented during
negotiations contemplated by this Agreement:
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=0 APR 2 2 1986 ITEM 17
1. DEVELOPER shall request Chrysler Corporation to commence pro-
ceedings at the earliest possible date for notification of the
proposed new franchise location to dealers of the proposed new
franchise location to dealers selling the same make automobile
within a 10 mile radius, if any, under the State New Motor Vehicle
Board procedure.
2. DEVELOPER and AGENCY shall diligently pursue negotiations with
existing property owners for the acquisition of the property. In
the event the negotiations are unsuccessful, AGENCY shall promptly
obtain a reuse appraisal of the property for the use of the AGENCY
and DEVELOPER.
Section 6. Purchase Price - Financial Assistance. The purchase price
of-the-Parcel., the.extent_of public improvements to be required of
DEVELOPER and the extent_of "AGENCY financial or other assistance, if any,
will be- established -by AGENCY after- :negotiations with DEVELOPER, and will be
based upon such factors as market conditions, reuse value, permitted uses,
density of development, development costs, financing costs, risks of
DEVELOPER, estimated or actual monthly rent factor.
Section 7. DEVELOPER Reports. DEVELOPER shall, not less than once
each 30 days, advise the Executive Director of the AGENCY of DEVELOPER'S
progress in preparing the.development proposal.
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Section 8. Negotiators Designated. The AGENCY has designated the
following persons as being primarily responsible for the negotiation of the
DDA:
James L. Bowersox, Executive Director
Poway Redevelopment Agency
13325 Civic Center Drive
Poway, California 92064
The DEVELOPER has designated the following person as being primarily
responsible for the negotiations of the DDA:
Edward J. Terhall
Zone Real Estate Manager
Chrysler Realty Corporation
1717 St. James Place
Placentia, CA 92670
The parties acknowledge that the successful negotiation of a DDA will
-=require candid :exchanges of--information often on short notice and agree
that they will direct their-designated--negotiators to cooperate fully in
the negotiation process.
Section 9. Participant Acknowledgement. The DEVELOPER acknowledges
and agrees that execution of this Agreement by the AGENCY does not consti-
tute any approval of development on the Site, nor does it obligate the
AGENCY or the City of Poway (the "CITY ") to hereafter enter into further
agreements concerning the Property.
Section 10. Termination. Notwithstanding any provisions of this
agreement to the contrary, unless extended upon mutual consent of the par-
ties, this Agreement shall terminate and be of no further force and effect
one hundred - twenty (120) days after the date the AGENCY executes this
Agreement.
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APR 22 1986 ITEM 17
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Section 11. Assignment. This Agreement shall not be assigned by the
DEVELOPER without prior written approval of the AGENCY, which the AGENCY
may grant or refuse at its sole discretion.
Dated: , 1986
DEVELOPER:
Chrysler Realty Corporation
LIN
HATe
Poway Redevelopment Agency
Dated: , 1986 By:
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APR 22 1986 ITEM 17
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