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REQUEST FOR <br />AGENCY ACTION <br />AGENCY BOARD MEETING DATE: <br />DECEMBER 27, 2005 <br />TITLE: <br />Edsscavon lat <br />AGENCY SECRETARY USE ONLY: <br />Ma: (blao 2a4_: 40r/0 <br />RESOLUTION APPROVING ACQUISITION <br />AGREEMENT, MUTUAL RELEASE AND <br />JOINT ESCROW INSTRUCTIONS WITH <br />VINCI INVESTMENT CO.. INC. <br />NOr /9PMV45,�,o: 3.•a <br />APPROVED &ST, N0; <br />G''h "i3- �,6arcia Wb-ent) <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 1" Reading <br />❑ Ordinance on 2ntl Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />CONTINUED TO <br />/FILE NUMBER <br />EXECUTIVE DIRECTOR <br />RECOMMENDED ACTION <br />Adopt Resolution No. CRA 2005 -008 approving Acquisition Agreement, Mutual <br />Release And Joint Escrow Instructions with Vinci Investment Co., Inc. <br />DISCUSSION <br />Vinci Investment Co., the owner of the Honda Santa Ana dealership, <br />notified the Agency in late 2003 that they had an agreement to acquire <br />the leasehold interest in the adjacent property occupied by Mr. J's <br />Nightclub. They sought an Agency agreement to assist with the purchase <br />of the property (if successfully acquired) and expansion of the Honda <br />Santa Ana dealership. <br />On March 15, 2004, the Agency Board approved an acquisition agreement and <br />license agreement with Vinci calling for transfer of the Mr. J's <br />properties, assets, etc. to the Agency for $4,247,897 immediately upon <br />Vinci's acquisition from the Johers. These agreements would allow for <br />Honda's temporary use of the site while a Disposition and Development <br />Agreement (DDA) was being negotiated, based on a non - binding Term Sheet <br />Honda had previously outlined with staff. Under the Term Sheet, the <br />Agency would proceed with the potential acquisition of the underlying fee <br />interest in the property. The entire property would then be conveyed <br />back to Vinci in exchange for Vinci's agreement to expand and redevelop <br />the Honda Santa Ana dealership. <br />However, the Johers breached their agreement with Vinci, triggering over <br />a year of litigation. As a result, no negotiations were ever undertaken <br />and no DDA has yet been approved by the parties. Further, when it <br />appeared that Vinci would be unable to consummate their agreement with <br />the Joher family, the Agency chose to terminate the March 2004 <br />