HomeMy WebLinkAbout25E - AGMT - NEGOTIATION 3RD AND BROADWAYREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
JULY 5, 2017
TITLE:
APPROVE FIRST AMENDMENT TO THE
EXCLUSIVE NEGOTIATION AGREEMENT
WITH CARIBOU INDUSTRIES FOR THE
THIRD STREET AND BROADWAY
DEVELOPMENT PROJECT
(STRATEGIC PLAN NO. 3, 5A)
/uc
ITY MAN
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
❑
As Recommended
❑
As Amended
❑
Ordinance on 1s' Reading
❑
Ordinance on 2ntl Reading
❑
Implementing Resolution
❑
Set Public Hearing For_
CONTINUED TO
FILE NUMBER
Approve First Amendment to the Exclusive Negotiation Agreement (ENA) with Caribou Industries
for the Third and Broadway Development which provides for a sixty (60) day extension, ending
August 25, 2017, with the option of extending an additional sixty (60) days pending the City
Manager's approval.
DISCUSSION
On March 21, 2017, the City Council authorized the City Manager and Clerk of the Council to
enter into an Exclusive Negotiation Agreement (ENA) and Reimbursement Agreement to be
executed with Caribou Industries Inc. for the Third and Broadway Development Project (Project),
including 29 deal points for the proposed scope of the Project, subject to non -substantive
changes approved by the City Manager and City Attorney.
On April 4, 2017, staff met with the Developer to discuss the terms of the ENA and the 29
conditions of the proposed scope of said Project. The result of the meeting was that of the 29
conditions of the proposed scope of the Project, both City Staff and the Developer agreed on 8
conditions that were proposed.
On April 27, 2017, staff met with Developer and the result of the meeting was the execution of the
ENA and Reimbursement Agreement, which triggered the commencement of the 60 -day
negotiation period. On May 3, 2017, staff met with Developer to discuss the remaining conditions
proposed by the Developer. While some progress has been made in reaching an agreement,
more discussion is required before returning to the City Council.
The Developer requested a 60 -day extension of the ENA given that it was due to expire on June
26, 2017. A written request was submitted on June 19, 2017.
25E-1
Approve Amendment to the Exclusive Negotiation Agreement with Caribou Industries for the
Third Street & Broadway Development Project
July 5, 2017
Page 2
At this time, Developer is requesting a 60 -day extension of the ENA period in order to continue
discussions. Approval of the 60 -day extension will set the ENA negotiation period to expire on
August 25, 2017. Staff recommends the 60 -day extension of the ENA period with an option of
extending the ENA term for an additional sixty days pending the City Manager's approval (see
Exhibit 1).
During the extension period, staff will engage Kosmont Companies, a financial advisory and
economic development services firm, to conduct a financial feasibility analysis for the Project.
The financial feasibility analysis is expected to be completed in 30 -days following the receipt of
financials and information from the Developer.
STRATEGIC PLAN ALIGNMENT
Approval of this item supports the City's efforts to meet Goal #3 - Economic Development,
Objective #5 (Leverage private investment that results in tax base expansion and job creation
citywide), Strategy A (Identify and market underutilized properties for new development that will
create new jobs and expand the City's tax base).
FISCAL IMPACT
There is no fiscal impact associated with this action at this time.
V
Candida Neal
Acting Executive D r for
Planning and Building Agency
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EXHIBIT: 1. First Amendment to ENA
25E-2
FIRST AMENDMENT TO EXCLUSIVE NEGOTIATION AGREEMENT
This First Amendment to Exclusive Negotiation Agreement is made and entered into this
5"' day of July, 2017, by and between the CARIBOU INDUSTRIES, INC., a Nevada corporation
("Developer"), and the CITY OF SANTA ANA, a charter city and municipal corporation,
organized and existing under the Constitution and laws of the State of California ("City").
RECITALS
A. The City and Developer entered into Agreement No. A-2017-058, dated April 27,
2017, in order to provide a specified period of time to attempt to negotiate a
disposition and development agreement ("said Agreement"),
B. In accordance with the tens and conditions of said Agreement, the Parties desire
to amend the Term of Agreement section to extend the Negotiation Period for an
additional sixty (60) days, until August 25, 2017, with the option of extending an
additional sixth (60) days pursuant to City Manager and Developer approval.
NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the
terms and conditions of said Agreement, except as herein modified, the parties agree as follows:
Section 2, Term of Agreement, subsection (a), shall be amended to extend the
Negotiation Period for an additional sixty (60) days, until August 25, 2017,
2. Section 2, Term of Agreement, shall be amended to add subsection (c) to read as
follows:
"The Negotiation Period may be extended upon the mutual written
agreement of the City Manager and the Developer for no more than
one (1) additional consecutive sixty (60) calendar day period.
Except as hereinabove modified, all terms and conditions of said Agreement shall
remain in full force and effect.
EXHIBIT 1
Page 1 of 2
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IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to Exclusive
Negotiation Agreement the date and year first above written,
CITY OF SANTA ANA
ATTEST:
MARIA D. HUIZAR
Clerk of the Council
APPROVED AS TO FORM:
Sonia R. Carvalho
City
M
RECOMMENDED FOR APPROVAL:
ROBERT C. CORTEZ
Deputy City Manager
Community Development Agency
CYNTHIA J, KURTZ
Interim City Manager
DEVELOPER:
Caribou Industries, Inc.
By:
President
Dated:
Page 2 of 2
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