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HomeMy WebLinkAboutRDA CARVER OWNER AG 01-05-87DATE: JANUARY 5, 1987 _175 87 Inter- Corn TO: FROM: SUBJECT: WILLIAM A. NUSTON, CITY MANAGER COI~tUNITY DEVELOPHENT DEPARTMEHT MIENOHENTS TO CARYER OWNER PARTICIPATION AGREEHENT RECOI~ENDATION: It is recommended that the Agency approve subject amendments to the Carver Owner Participation Agreement. BACKGROUND: The Redevelopment Agency at a regular meeting on December 16, 1985 approved an Owner Participation Agreement with Carver Development Partnership for development and construction of a shopping center and two offtce buildings. The original scope of development obligated the developer to construct at least a 6,000 square foot free-standing restaurant as part of the project. The restaurant was to have been operated as a quality dinner house. Unfortunately, the developer has experienced significant difficulty in obtaining a free-standing restaurant dinner house tenant as required by the "Scope of Development". The delays in negotiation for the restaurant have also made it impossible for the developer to complete all construction within the time frames contained in the "Schedule for Performance". Without otherwise modifying the developer's obligation for restaurant, the Developer is requesting that the Agency accept a 5,000 square foot Spoon's restaurant as meeting the Agency's intent and also extend the time for required completion of the restaurant to June 1, 1987. Attached for the Agency's consideration are appropriate amendments to the Owner Participation Agreement. L Christine A. Shlngl~ton, Director of Community Development CAS:pef AMENDMENT NO. 1 TO OWNER PARTICIPATION AGREEMENT BY AND BETWEEN TUSTIN REDEVELOPMENT AGENCY AND CARVER DEVELOPMENT PARTNERSHIP FOUR THIS AMENDMENT NO. 1 to Owner Participation Agreement ("Amendment") is entered into, to be effective this day of L December, 1986, by and between the TUSTIN COMMUNITY REDEVELOPMENT AGENCY ("Agency") and CARVER DEVELOPMENT PARTNERSHIP FOUR, a California Limited Partnership ("Developer") a~d amends that certain Owner Participation Agreement ("OPA") approved by Agency on December 16, 1985, between the same parties. This Amendment is undertaken with reSpect to the following: RECITALS: WHEREAS, certain conditions have occurred since the execu- tion of the OPA which were unanticipated by the parties at the time that the OPA was negotiated and entered into, and which have led Developer and Agency to renegotiate the terms of the OPA. These conditions are as follows: 1. Developer has experienced some difficulty in obtaining a free-standing restaurant dinner house tenant as required by the "Scope of Development" set forth in Attachment No. 4 to the OPA. 2. Belays in negotiation for a dinner house restaurant make it impossible at this time for the Developer to complete all construction within the time frames contained in the "Schedue of Performance" set forth in Attachment No. 3 to the 0PA. NOW, THEREFORE, the parties hereto agree as follows: Section 1: General Except as expressly 9rovided herein, all terms and condi- tions of the OPA shall remain in full force and effect, but in the event of conflict between this Amendment and those of the OPA, the re&ms of this Amendment shall govern. Ail Section references herein are to Sections of the_OPA and all te~ms used herein shall have the same meaning as 9rovided in the OPA, unless otherwise 9rovided herein. This Amendment is subject to all provisions of %he CPA unless otherwise provided herein. Section 2: Scope of Development Attachment 4 to the OPA entitled "Scoge of Development" obligates Develoger to construct a free-standing 6,000 square foot quality dinner house restaurant. Without otherwise modi- fying Develoger's obligation relative to the construction of said restaurant, Agency agrees to accept the construction of a 5,000 square foot Sgoons Restaurant as fulfillment of Develoger's obli- gations as set forth in the CPA. Section 3: Sche~uleof Performance The time for completion of construction of the restaurant in the "Schedule of Performance" set forth in Attachment No. 3 to the OPA and as 9rovided generally in Section 208 of the 0PA is hereby extended until June 1, lgS?. Section 4: Payment for Off-Site Improvements Section 300 of the OPA 9rovided that Agency would make 9ayments to Develoger in an amount not to exceed $439,06g for the actual costs of constructing and installing off-site improvements upon completion of construction and a final accounting. Due to delays in performance as referenced herein, Agency shall withhold the final reimbursement payment to Developer in the amount of $71,274.49 until a certificate'of completion is issued by Agency for the free-standing dinner house restaurant required in the "scope of development" set forth in Attachment No. 4 to the CPA. Section 5:' Acceptance This Amendment, upon execution by Developer shall be deliv- ered to Agency, and shall within 30 days of said delivery be executed by Agency and returned to Developer, or this Amendment shall be deemed to be void, except to the extent that the Devel- oper shall consent in writing to a further extension of time for the authorization, ex~cution, and delivery of this Amendment. The effective date of this Amendment shall be the date when this Amendment has been signed by Agency. "Agency" TUSTIN COMMUN-ITY REDEVELOPMENT AGENCY Date: By Chairman Date: By "Devel oper" Secretary CARVER DEVELOPMENT PARTNERSHIP FOUR A California Limited Partnership Date: By Chairman Date: APPROVED AS TO FORM: JAMES G. ROURKE By Secretary