Res 07-034
RESOLUTION NO. 07-034
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POWAY
APPROVING A FIRST AMENDMENT TO DISPOSITION AND
DEVELOPMENT AGREEMENT BY AND BEnNEEN THE POWAY
REDEVELOPMENT AGENCY AND MIDLAND ANIMAL CLINIC, INC.,
JOHN L. AND DIANA L. AUGUSTINE TRUST DATED MARCH 18, 1986,
AND N. K. AND P. E. SWITZER FAMILY TRUST DATED APRIL 6,2000,
AND MAKING CERTAIN FINDINGS IN CONNECTION THEREWITH
WHEREAS, the poway Redevelopment Agency ("Agency") is engaged in
activities necessary to carry out and implement the Redevelopment Plan for the Paguay
Redevelopment Project ("Project"); and
WHEREAS, Agency and Midland Animal Clinic, Inc., John L. and Diana L.
Augustine Trust dated March 18, 1986, and N.K. and P.E. Switzer Family Trust dated
April 6, 2000 (collectively, "Developer"), entered into that certain Disposition and
Development Agreement dated as of December 6, 2005 ("DDA"), pursuant to which
Agency agreed to convey certain real property located within the Project at the
southeast corner of Midland Road and Aubrey Street in the City of poway ("Agency
Parcel") to Developer and Developer agreed to convey to Agency two parcels of real
property in the City of Poway, and Agency agreed to pay to Developer an amount equal
to the difference between the fair market value of the Agency Parcel and the sum of the
fair market values of the parcels to be conveyed by Developer to Agency ("Agency
Payment Amount"); and
WHEREAS, the DDA provided for Developer's construction and operation of an
animal clinic on the Agency Parcel, for the construction by Developer of certain public
improvements, for the reimbursement by Agency of Developer's costs of constructing
such public improvements, and for the Agency and Midland Animal Clinic, Inc. and the
John L. and Diana L. Augustine Trust dated March 18, 1986 ("Trust") to enter into an
Agreement of Settlement, Waiver, Release, and Indemnification of Relocation
Assistance and Goodwill ("Relocation Agreement"), pursuant to which the Agency will
make certain payments to Midland Animal Clinic, Inc. and the Trust in lieu of relocation
benefits to which Midland Animal Clinic, Inc. and the Trust would be entitled pursuant to
the California Relocation Assistance Law, Health and Safety Code Section 7260, et seq.
("Relocation Payments"); and
Resolution No. 07-034
Page 2
WHEREAS, Agency and Developer now desire to amend the DDA by entering
into that certain First Amendment to Disposition and Development Agreement ("First
Amendment") in order to decrease the size of the Agency Parcel, to decrease the
Agency Parcel Value accordingly, to make a corresponding increase to the amount of
the Agency Payment Amount, to modify the public improvements to be constructed by
Developer on and/or adjacent to the Agency Parcel, to make minor changes to the
description of the Agency Parcel, to increase the amount of the Relocation Payment to
be paid by Agency to Developer, to make certain changes to the Schedule of
Performance, and to make various additional, minor changes to the rights, duties and
obligations of the parties under the DDA; and
WHEREAS, the Developer has submitted to the Agency and the City Council of
the City of Poway ("City Council") executed copies of the First Amendment; and
WHEREAS, the Agency Payment Amount represents the difference between the
fair market value of the Agency Parcel and the sum of the fair market values of the two
parcels being conveyed to Agency by Developer, and therefore the consideration to be
received by Agency for the Agency Parcel pursuant to the First Amendment is not less
than the fair market value of the Agency Parcel; and
WHEREAS, pursuant to Section 33433 of the Community Redevelopment Law
(California Health and Safety Code Section 33000, et seq.), the Agency is authorized,
with the approval of the City Council after a duly noticed public hearing, to sell the
Agency Parcel for development pursuant to the Redevelopment Plan upon a
determination by the City Council that the sale of the property will either assist in the
elimination of blight or provide affordable housing for low and moderate income
persons, that the consideration for such sale is not less than either the fair market value
or fair reuse value of the Agency Parcel in accordance with the covenants and
conditions governing the sale and the development costs required there under, and that
the sale is consistent with the implementation plan which has been adopted by the
Agency for the Project; and
WHEREAS, a joint public hearing of the Agency and City Council on the
proposed First Amendment was duly noticed in accordance with the requirements of
Health and Safety Code Section 33433; and
WHEREAS, the DDA, the proposed First Amendment, and a summary report
meeting the requirements of Health and Safety Code Section 33433 were available for
public inspection prior to the joint public hearing consistent with the requirements of
Health and Safety Code Section 33433; and
WHEREAS, on May 1, 2007, the Agency and City Council held a joint public
hearing on the proposed First Amendment, at which time the City Council reviewed and
evaluated all of the information, testimony, and evidence presented during the joint
public hearing; and
Resolution No. 07-034
Page 3
WHEREAS, all actions required by all applicable laws with respect to the
proposed First Amendment have been taken in an appropriate and timely manner; and
WHEREAS, the City Council reviewed the summary report prepared pursuant to
Health and Safety Code Section 33433 and evaluated other information provided to it
pertaining to the findings required by Health and Safety Code Section 33433; and
WHEREAS, the City Council previously determined, in its adoption of the
ordinance approving the Paguay Redevelopment Project, that the Agency Parcel was
blighted; and
WHEREAS, the First Amendment would provide for the elimination of such
blighting conditions by providing for the construction of a high quality animal clinic on
the Agency Parcel; and
WHEREAS, the Agency has adopted an Implementation Plan pursuant to Health
and Safety Code Section 33490, which identifies the goals and objectives of the
enhancement and renovation of businesses to promote their economic viability; the
expansion of the resource of developable land by making underutilized land available
for development; the assembly and disposition of land into parcels suitable for modern,
integrated development with improved pedestrian and vehicular circulation; and the
replanning, redesign and development of underdeveloped areas, which are stagnant or
improperly utilized; and
WHEREAS, the First Amendment will assist the Agency in meeting the objectives
set forth in the Implementation Plan by providing for the development and operation of
the Animal Clinic on the Agency Parcel and the dedication of certain real property to the
Agency or City to be used for the widening and/or improvement of Aubrey Road; and
WHEREAS, the City Council, as the Lead Agency pursuant to the California
Environmental Quality Act, California Public Resources Code Section 21000, et seq.
("CEQA"), adopted a Mitigated Negative Declaration on April 3, 2007 in connection with
the City Council's approval of the conditional use permit for the animal clinic to be
developed on the Agency Parcel pursuant to the DDA and the First Amendment thereto
("Mitigated Negative Declaration"); and
WHEREAS, the City Council has duly considered all terms and conditions of the
proposed First Amendment and the DDA and believes that the redevelopment of the
Agency Parcel pursuant thereto is in the best interests of the City of Poway and the
health, safety, and welfare of its residents, and in accord with the public purposes and
provisions of applicable state and local laws and requirements.
Resolution No. 07-034
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that:
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Poway
Section 1. Each of the foregoing recitals is true and correct.
Section 2. The City Council finds and determines that, based upon substantial
evidence provided in the record before it, the consideration for the Agency's sale of the
Agency Parcel pursuant to the terms and conditions of the DDA, as amended by the
First Amendment, is not less than the fair market value of the Agency Parcel.
Section 3. The City Council hereby finds and determines that the disposition of
the Agency Parcel pursuant to the First Amendment will assist in the elimination of
blight within the Project by providing for the proper reuse and redevelopment of a
portion of the Project, which was declared blighted for the reasons described above.
Section 4. The City Council hereby finds and determines that the First
Amendment is consistent with the provisions and goals of the Implementation Plan.
Section 5. The City Council hereby approves the First Amendment and the
sale of the Agency Parcel pursuant to the First Amendment.
Section 6. The City Council, as Lead Agency, adopted the Mitigated Negative
Declaration and the City Council hereby finds and determines, based on all evidence in
the record, that there is no substantial evidence that the development of the Agency
Parcel pursuant to the DDA, as amended by the First Amendment, will have a
significant effect on the environment.
Section 7. This Resolution shall take effect from and after its date of adoption.
PASSED, ADOPTED AND APPROVED by the City Council of the City of Poway
at a regular meeting this 1st day of May 200
ATTEST:
~LLIA~fl J(1~
Sherrie D. Worrell, Deputy City Clerk
Resolution No. 07-034
Page 5
STATE OF CALIFORNIA )
) ss.
County of San Diego )
I, Sherrie D. Worrell, Deputy City Clerk of the City of Poway, California, do
hereby certify under penalty of perjury the foregoing Resolution No. 07-034 was duly
adopted by the City Council at a meeting of said City Council held on the 1 st day of May
2007, and that it was so adopted by the following vote:
AYES: BOYACK, HIGGINSON, REXFORD
NOES: NONE
ABSENT: EMERY, CAFAGNA
DISQUALIFIED: NONE
~ 1000R-QO
Sherrie D. Worrell, Deputy City Clerk
City of Poway