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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 ¢: \dat a\agenda\swvp, coy JAN811995 m'{~.~ 11 1of 9 -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: 2 of 9 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 c: \dal:a\agenda\swvp. rpt JAN311995 I?F M 11 , 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. 1 JAN 311995 1'7~M 11 Attachment 1 4 of 9 - 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. JAN 811995 I]';-]~ 11 5of 9 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. 3 JAN 811995 I'FE~ 11 6of 9 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. JAN 311995 I~'.~ ll 7o£9 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 c: \dar a\rda\exneg, amd 5 JAN :1 1 1995 IT':.'Vq 1 1 8 of 9 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 JAN311995 1']'2~ 11 9 of 9 Exhibit "A"