Laserfiche WebLink
REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />SEPTEMBER 16, 2014 <br />TITLE: <br />ASSIGNMENT OF DEVELOPMENT RIGHTS <br />FOR THE LYON COMMUNITIES RESIDENTIAL <br />DEVELOPMENT PROJECT TO BE LOCATED <br />AT 1901 EAST FIRST STREET <br />CITY MANA R <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 2n° Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />Direct the City Manager to authorize the assignment of development rights for the Lyon <br />Communities residential development project to 1901 First Street Owner, LLC, with such non - <br />substantive changes as may be approved by the City Manager and City Attorney. <br />DISCUSSION <br />In October and November 2013, the City Council approved the entitlements for a new mixed -use <br />development project by Lyon Communities at 1901 East First Street. These entitlements <br />included the approval of the First Amended and Restated Development Agreement, a vesting <br />tentative tract map and site plan review that allowed the construction of a 264 -unit residential <br />development by Lyon Communities. Since the project's approval, Lyon has been finalizing the <br />financing for the project and recently decided to accept limited investors to the project. These <br />new investors, in conjunction with the complexities of the financing for the project, have led to the <br />creation of a new entity, 1901 First Street Owner, LLC, to own the project. The current owners, <br />Lyon Communities, operating as Lyon Housing (First Street) XLVIII, LLC, will still retain majority <br />control over the project. <br />Section 4.2 of the development agreement (Development Agreement No. 2007 -01) allows the <br />assignment of the property, in whole or in part, to any person, entity, partnership, joint venture, <br />firm or corporation at any time with City Council approval. Further, the assignment of rights will <br />include an assignment and assumption agreement confirming that the duties, obligations and <br />liabilities from this development agreement are assumed by the new owner. This will ensure that <br />the plans approved by the Planning Commission and City Council, together with all conditions <br />and requirements, are fully satisfied. Since the project owner is creating a new ownership entity <br />for the project, Council approval of the assignment is needed. <br />39A -1 <br />