HomeMy WebLinkAbout121806 AA of Acquisition Agmt Prop 2101 E. Edinger AveREQUEST FOR
AGENCY ACTION
AGENCY BOARD MEETING DATE:
DECEMBER 18, 2006
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APPROVAL OF ASSIGNMENT OF
ACQUISITION AGREEMENT FOR
PROPERTY LOCATED AT 2101 E.
EDINGER AVENUE
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EXECUTIVE DIRECTOR
RECOMMENDED ACTION
AGENCY SECRETARY USE ONLY:
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APPROVED (0' 0
❑ As Recommended
❑ As Amended
❑ Ordinance on 1s` Reading
❑ Ordinance on 2 n Reading
❑ Implementing Resolution
❑ Set Public Hearing For
CONTINUED TO ICCF Yl fV 22001
FILE NUMBER K�
Approve assignment of the Agency's Acquisition Agreement, Mutual Release
and Joint Escrow Instructions with Vinci Investment Co., Inc. to DWWRBB,
Inc., and authorize the Executive Director to execute agreements related
thereto.
DISCUSSION
In January 2006, the Agency acquired a 40+ year lease of approximately
1.9 acres of property located at 2101 E. Edinger Avenue for the purpose
of facilitating an expansion of the Santa Ana Auto Mall. Included in the
acquisition was the adult business, Mr. J's. The leasehold and business
had been acquired by Vinci Investment Co.,Inc., the owner of the adjacent
Honda Santa Ana dealership. Under the terms of the Acquisition
Agreement, the adult business was closed, the buildings were demolished
and the property was licensed back to Vinci Investment Co., Inc. for two
years. Within the two years time, Vinci Investment Co., Inc. has agreed
to improve the property consistent with the standards for the Santa Ana
Auto Mali Specific Plan while the parties pursue full redevelopment of
the former Mr. J's site along with the existing Honda dealership.
Included in that redevelopment is the potential purchase of the
underlying fee interest in the subject property from the landlord. Terms
for that purchase would be set forth in a Disposition and Development
Agreement (DDA) to be negotiated between Vinci Investment Co., Inc. and
the Agency.
In June of 2006, Vinci Investment Co., Inc. notified the Agency that it
had entered into negotiations to sell the Honda dealership to David
nVilson. Mr. Wilson is one of the largest owners of auto dealerships in
the Western United States. In Orange County alone, Mr. Wilson
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Assignment of Acquisition Agreement
2101 E. Edinger Avenue
December 18, 2006
Page 2
owns /operates Toyota of Orange, Ford /Mazda of Orange, Tustin Lexus and
Newport Beach Lexus. Vinci Investment Co., Inc. and Mr. Wilson have
requested the Agency's approval of an assignment of the Acquisition
Agreement from Vinci Investment Co., Inc., to DWWRBB, Inc., which is
seventy -five percent owned by David Wilson.
The existing Acquisition Agreement gives the Agency the right to approve
or disapprove any assignment of the Acquisition Agreement. However, the
Agency has agreed not to unreasonably withhold its approval if the
transfer is to an entity which owns the Honda dealership. Vinci
Investment Co., Inc. and Mr. Wilson have provided evidence to the Agency
that Honda has approved transfer of the dealership.
Under the terms of the Vinci /DWWRBB agreement, DWWRBB, Inc. will assume
all of the responsibilities to integrate the 2101 E. Edinger property
into the Honda dealership and negotiate with the Agency for redevelopment
of the expanded Honda dealership including the potential purchase of the
fee interest. Vinci Investment Co., Inc. will continue to be the licensee
of the property over the interim two -year license period.
ENVIRONMENTAL IMPACT
In accordance with the California Environmental Quality Act, the proposed
request is not considered a project; therefore, no further action is
required.
FISCAL IMPACT
There is no fiscal impact associated with this action.
Nancy . war ds
Assistant irector
Community Development Agency
SGH /JF /mlr
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