Item 11 - Consideration of Amending the Exclusive Right to Negotiate Agreement Mark Schlossberg _AGENDA REPORT SUMMARY
TO: Honorable Chairman and Members of the Redevelopment Agency
FROM: James L. Bowersox, Executive Direc~
INITIATED BY: John D Fitch, Assistant Executive'~-~irector;'~
Warren'Shafer,
Director of Redevelopment Ser~ice~
DATE: January 31, 1995
SI-TBJEC~I': Consideration of Amending the Exclusive Right to Negotiate Agreement for
the Purchase of Property Owned by the Redevelopment Agency at the
Southwest Corner of Poway and Community Roads with Southwest Value
Partners; Mark Schlossberg, Principal
ABSTRAC"Y
It is recommended that the Redevel~ament Agency approve extending the Exclusive Right
to Negotiate Agreement with the principals of Southwest Value Partners for the purchase
of property owned by the Poway Redevelopment Agency. The property is located at the
southwest corner of Poway Road and Community Road, and was the former site of Security
Pacific Bank.
ENVIRONMEN~rALREVI~vV
This action is not subject to CEQA review.
There is no fiscal impact at this time.
ADDITIONAL PUBLIC NOTIFICATIONAND CORRESPONDENCE
None.
RECOMMENDATION
It is recommended that the Redevelopment Agency approve amending the Exclusive Right to
Negotiate Agreement with Southwest Value Partners by granting a 120 day extension and
authorize the Executive Director to execute the document.
ACTION
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-AGENDA REPORT
CITY OF POWAY
This re~ is included on the Consent Calendar There will be no separate discussion of the repo~ prior to approval ~ the
C]~ Council unless members of the Councd, staff or public request it to be removed ~rom the Consent Calendar and
discussed separately If youthS", to have this re~ pulled for discussion, please fill out a slip indicating the repo~ number
and give it to the Ci~ Clerk prior to the beginning of me Ci~ Council meeting.
TO: Honorable Chairman and Members of~th~edevelopment Agency
FROM: James L. Bowersox, Executive Direo~P-
INITIATEOBY: ~e~S[~i ~to~X~~;~t~e~ces
DATE: January 31, 1995
SUBJECT: Consideration of Amending the Exclusive Right to Negotiate
Agreement for the Purchase of Property Owned by the
Redevelopment Agency at the Southwest Corner of Poway and
Community Roads with Southwest Value Partners; Mark
Schlossberg, Principal
BACKGROUND
On August 23, 1994, the Redevelopment Agency approved an Exclusive Right to
Negotiate Agreement with the Overland Company for the above site. The Overland
Company requested and received approval to assign their rights to Southwest Value
Partners. The original term of the Agreement has expired and Southwest Value
Partners has requested a 120 day extension of the Agreement in order to allow
them to complete the acquisition of the adjoining center.
FINDINGS
The Redevelopment Agency acquired this site for the purpose of widening the west
side of Community Road. The principals of Southwest Value Partners have
indicated their desire to acquire the remaining property as part of their
acquisition of the adjoining Poway Plaza property.
The Exclusive Right to Negotiate Agreement {Attachment 1) will allow the
principals of Southwest Value Partners the opportunity to continue to negotiate
with the Redevelopment Agency for acquisition of the site while closing on the
purchase to acquire Poway Plaza. The Agreement will allow the Redevelopment
Agency time to negotiate a Development and Disposition Agreement which will give
the Agency control on how the site is to be developed. Our preference would be
on a quality restaurant with a combination of landscaping, public art/water
feature to enhance the site. This intersection and the development adjacent to
it are especially important since it is in the heart of our "Town Center."
ACTION:
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Amending Exclusive Right to Negotiate Agreement
- January 31, 1995
Page 2 ---"
ENVIRONMENTAL REVIEW
This action is not subject to CEQA review.
FISCAL INPACT
There is no fiscal impact at this time.
ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCF
None.
RECOMM£NDATION
It is recommended that the Redevelopment Agency approve amending the Exclusive
Right to Negotiate Agreement with Southwest Value Partners by granting a 120 day
extension and authorize the Executive Director to execute the document.
Attachment 1 - Amended Exclusive Right to Negotiate Agreement
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3069
AHENDED EXCLUSIVE NEGOTIATION AGREEHENT
This Agreement is made by and between the Redevelopment Agency of the City
of Poway (the "AGENCY") and Southwest Value Partners (the "DEVELOPER").
RECITALS
1, The AGENCY desires that certain parcels of real property (the "Site")
within the Paguay Redevelopment Project Area (the "Project Area") be developed
in accordance with the provisions of the adopted Redevelopment Plan for the
Paguay Redevelopment Area (the "Plan").
2. The .48 acre Site is located on the south side of Poway Road west of
Community Road and is currently owned by the Poway Redevelopment Agency. A map
depicting the Site is attached hereto marked Exhibit "A."
3. DEVELOPER, pursuant to the California Community Redevelopment Law
(California Health and Safety 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 feasibility
of developing restaurant/retail use on the Site, and to negotiate a Development
and Disposition Agreement (the "DDA") which if negotiated and approved would
provide for the conveyance of the Parcel to the DEVELOPER for development of the
Site in accordance with the Plan.
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Attachment 1
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- Amended Exclusive Negotiation Agreement
Southwest Value, Partners
NOW, THEREFORE, the AGENCY and DEVELOPER agree as fellows:
Section 1. Recitals. The above recitals are incorporated herein as if set
forth in full.
Section 2. Neqotiation. AGENCY and DEVELOPER agree for the period
described in Section 3, below, to use their best effort to negotiate and prepare
a Disposition and Development Agreement between AGENCY and DEVELOPER for the
development of the Site in accordance with the provisions of the Plan.
Section 3. Neqotiation. AGENCY agrees that it will not negotiate with any
other person or entity for the development of the Site for a period of 120 days.
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 economic
data relating to the use of the Site for restaurant/retail, 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 confidential.
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Amended Exclusive Negotiation Agreement
Southwest Value. Partners
Section 5. Additional Steps and Procedures. Both AGENCY and DEVELOPER
acknowledge that as soon as possible after execution of this Negotiation
Agreement, the following steps and procedures need to be implemented during
negotiations contemplated by this Agreement:
1. DEVELOPER shall obtain and submit to the AGENCY a letter
substantiating that they have the financial commitment to purchase
the Site.
2. DEVELOPER shall demonstrate within 10 days of the date this document
is executed that they have entered escrow to purchase the adjoining
shopping center {Assessor Parcel Numbers 317-473-12 and 317-473-16}.
3. DEVELOPER and AGENCY shall diligently pursue negotiations with the
Redevelopment Agency for the acquisition of the property.
Section 6. 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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Amended Exclusive Negotiation Agreement
Southwest Val~gpartners
Section 7. Neqotiators Desiqnated. 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, CA 92064
The DEVELOPER has designated the following person as being primarily responsible
for the negotiation of the DDA:
Mark Schlossberg
Southwest Value Partners
8160 N. Hayden Road
Building J, Suite 208
Scottsdale, AZ 85258
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 8. Participant Acknowledqement. The DEVELOPER acknowledges and
agrees that execution of this Agreement by the AGENCY does not constitute 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.
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Amended Exclusive Negotiation Agreement
Southwest Value Partners
Section g. Termination. Notwithstanding any provisions of the Agreement
to the contrary, unless extended upon mutual consent of the parties, this
Agreement shall terminate and be of no further force and effect one hundred
twenty (120) days after the AGENCY executes this Agreement. If, in view of the
AGENCY, DEVELOPER has not and is not proceeding with negotiations in a timely
manner, the AGENCY reserves the right to terminate this Agreement at any time.
Section 10. Assiqnment. 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.
DEVELOPER:
Southwest Value Partners
Dated: , 1995 By:
Mark Schlossberg
Chief Financial Officer
AGENCY:
Poway Redevelopment Agency
Dated: , 1995 By:
James L. Bowersox
Executive Director
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Poway Road
RIGHT OF
DEDICATION
REMAINDER
PARCEL
,~,'-o' I!- GFCSS Area ............. 0.80 Ac.
, Poway Road Dedlcafion~'~4q-f~) ~ 0.15 Ac.
~ Add'[ Community Road Dedication .- 0.17 Ac.
h'~: Area ............... 0.48 Ac.
SECURITY PACIFIC BANK PROPERTY
- cor. Poway Road ~: Communkv Road
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9 of 9 Exhibit "A"