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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />JANUARY 30, 2012 <br />TITLE: <br />TITLE <br />DEMAND PAYMENT FROM THE <br />REDEVELOPMENT AGENCY IN THE <br />AMOUNT OF $956,173.73 FOR NEXUS <br />PERMIT FEE DEFERRAL <br />CITY MANAGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />? As Recommended <br />? As Amended <br />? Ordinance on 1" Reading <br />? Ordinance on 2nd Reading <br />? Implementing Resolution <br />? Set Public Hearing For_ <br />CONTINUED TO <br />FILE NUMBER <br />Demand payment from the Community Redevelopment Agency to the City of Santa Ana for <br />deferred fees in the amount of $956,173.73 for the Nexus project, pursuant to Section 2-618 of <br />City of Santa Ana Municipal Code. <br />DISCUSSION <br />In June 2006, the Agency authorized an obligation agreement to cover a portion of the City <br />building permit fees with Curtis R. Olson, an individual representing the Nexus Development <br />Corporation (Lake Towers Project), which consisted of two (2) high-rise luxury condominium <br />towers in MacArthur Place. On August 3, 2009, the Agency authorized the Second Amendment <br />and Restated Obligation Agreement to extend the terms of the Promissory Note to June 2022. <br />The Olson obligation provides for repayment to the Agency pursuant to a Promissory Note, which <br />will remain in effect. <br />Section 2-618 of the Santa Ana Municipal Code provides for the deferral of city fees until such time <br />as the City Council may demand payment. Therefore, it is recommended that the City of Santa <br />Ana demand payment by the Agency in the amount of $956,173.73 for the fees deferred, plus <br />interest, for this project. <br />29A-1