HomeMy WebLinkAbout09 DDA PARCEL 33 08-02-04
AGENDA REPORT
Agenda Item 9
Reviewed: ~~ ,~ -
City Manager ~~
Finance Director N/A
MEETING DATE:
AUGUST 2, 2004
FROM:
SUBJECT:
WILLIAM A. HUSTON, CITY MANAGER
REDEVELOPMENT AGENCY STAFF
TO:
THIRD AMENDMENT TO DISPOSITION AND DEVELOPMENT AGREEMENT
FOR PARCEL 33, TUSTIN LEGACY
SUMMARY
Minor, non-substantive modifications to the Disposition and Development Agreement
(DDA 03-01) for Parcel 33 have been necessary to implement provisions of the original
DDA.
RECOMMENDATION
That the City Council approve and authorize the City Manager's execution of the Third
Amendment to DDA 03-01, subject to any non-substantive modifications as may be
determined necessary by the City's Special Counsel.
FISCAL IMPACT
No additional fiscal impacts are anticipated beyond those identified for DDA 03-01.
BACKGROUND
The City Council, at a regular meeting on March 3, 2003, authorized execution of a
Disposition and Development Agreement (DDA 03-01) between the City of Tustin and
WL Homes LLC, doing business as John Laing Homes, for Parcel 33. The City
Council's approval was subject to non-substantial modifications to the DDA as were
deemed necessary by the City's Special Counsel and City Manager also authorizing all
actions necessary to implement DDA 03-01 including execution of all related
documents. The DDA 03-01 has been amended twice before, the First Amendment
was approved by the City Council on April 3, 2003 and the Second Amendment was
approved by the City Council on April 5, 2004. Both amendments were for non-
substantive changes necessary to implement the DDA.
City Council Report
Third Amendment DDA for Parcel 33, Tustin Legacy
August 2, 2004
Page 2
John Laing Homes has requested a minor non-substantial modification that would allow
escrow to be closed on residential units in Phase 2 prior to the completion of the
affordable units in Phase I. The affordable units are located in a cluster townhouse
product in which the construction time required to complete is more lengthy than the
other three products (i.e., detached, paired, and row townhouse).
This amendment continues to be consistent with the original DDA and are clarifications
related to implementation. The Third Amendment to the DDA 03-01 is attached for City
Council Approval.
~
Christine A. Shingleto
Assistant City Manager
Attachment: Third Amendment to DDA 03-01
S:\RDA\CC report\Aug 2 04, Third Amendment DDA Parcel 33.doc
THIRD AMENDMENT TO THE
DISPOSITION AND DEVELOPMENT AGREEMENT
FOR PARCEL 33
THIS THIRD AMENDMENT TO THE DISPOSITION AND DEVELOPMENT
AGREEMENT FOR PARCEL 33 (the "Third Amendment") is entered into as of
, 2004 (the "Effective Date") by and between the CITY OF TUSTIN (the
"City") and WL HOMES LLC, a Delaware limited liability company (the "Developer").
The City and the Developer are sometimes referred to herein individually as a "Party"
and collectively as the "Parties."
RECITALS
A. The Parties entered into that certain Disposition and Development Agreement for
Parcel 33 dated as of March 10,2003 (the "Original Parcel 33 DDA"). The
Original Parcel 33 DDA was amended by that certain amendment dated as of
March 31, 2003, entitled "First Amendment to the Disposition and Development
Agreement for Parcel 33" and was amended by that certain amendment dated
April 5, 2004, entitled "Second Amendment to the Disposition and Development
Agreement for Parcel 33". The Original Parcel 33 DDA as amended by the First
Amendment and the Second Amendment is hereinafter referred to as the "Parcel
33 DDA".
B. The City and the Developer each desire to amend the Parcel 33 DDA as set forth
below. The Parcel 33 DDA as amended by this Amendment is referred to herein
as the "Agreement".
AGREEMENT
NOW, THEREFORE, in consideration of the foregoing Recitals, which are
hereby incorporated into the operative provisions of this Amendment by this reference
and other good and valuable consideration the receipt and sufficiency of which is hereby
acknowledged, the Parties further agree as follows:
1. Section 8.2.2( d)(i) of the Original DDA is hereby amended by modifying
the following sentence.
"The Developer shall not close escrow for any Unit in Phase 3 or in any
subsequent Phase, regardless of product type, unless and until the Developer has
Completed all of the Affordable Units in Phase I."
2.
Attachment No. 17 is hereby amended as shown in Exhibit A.
IN WITNESS WHEREOF, the City and the Developer have signed this
Amendment as of the date first set forth above.
"CITY"
City of Tustin
Dated:
By:
William Huston, City Manager
ATTEST:
By:
Pamela Stoker
City Clerk
APPROVED AS TO FORM
Special Counsel for the City
By:
STEEFEL, LEVITT & WEISS
A PROFESSIONAL CORPORA nON
"DEVELOPER"
WL HOMES LLC, a Delaware limited
liability company
Dba John Laing Homes
By:
Steve Kabel
President, Southern California
Region
Exhibit A
ATTACHMENT NO. 17
AFFORDABLE UNIT PHASING PLAN
Phase Cluster Row Paired Detached Affordable TOTAL BY
Townhouses Townhouses Homes Patio Homes Units PHASE
1 20 10 8 16 10 54
2 20 12 12 16 12 60
3 20 10 12 18 10 60
4 20 10 8 16 10 54
5 15 6 8 16 10 45
6 15 5 4 15 8 39
7 20 5 0 16 14 41
8 10 0 0 13 4 23
TOTAL 140 58 52 126 78 376
Rules governing close of escrow for non-Affordable Units. **
1. The Developer shall not close escrow for any Unit in Phase 3 or in any
subsequent Phase, regardless of product type, unless and until the Developer has
Completed all of the Affordable Units in Phase 1.
2. For Units in Phase 3 and for Units in all subsequent Phases, the Developer shall
not close escrow for any Unit other than an Affordable Unit unless the Developer
has Completed one Affordable Unit for every six closings of non-Affordable
Units.
3. Notwithstanding the foregoing, the Developer shall be prohibited from closing
escrow on the final 20 non-Affordable Units in the Project, regardless of Phase,
until Completion of all of the Affordable Units in the Project.
* All Affordable Units are located in Cluster Townhouses.
** All initially capitalized terms used in this Attachment have the meaning set forth
therefor in the Agreement.
As amended 8/02/2004