Successor Agency to the Former Redevelopment Agency
MEETING DATE: 12/9/2015
TITLE:
Title
Partial Release and Termination of the Disposition and Development Agreement and the Acknowledgement and Release Agreement for Parcels 1, 6, 7, 8, 9, 10 and 11 and Revised Parcels 2 and 5 of Parcel Map No. 36428
End
FROM:
Leisa Lukes, Economic Development Manager
RECOMMENDATION:
Recommendation
Staff recommends that the City Council acting as the Successor Agency to the Former Redevelopment Agency of the City of Cathedral City approve (1) the Partial Release and Termination of the Disposition and Development Agreement and (2) the Acknowledgement and Release Agreement for Parcels 1, 6, 7, 8, 9, 10 and 11 and Revised Parcels 2 and 5 of Parcel Map No. 36428
Body
BACKGROUND:
The Partial Release and Termination of the Disposition and Development Agreement is necessary to the close of escrow for the transfer of Parcel 8 from M&M Property Company, LLC (M&M) to Conneaut Partners, LLC (Conneaut) and for the transfer of Parcel 11 from Conneaut to M&M per the Property Transfer Agreement and Escrow Instructions (PTA) approved by the City Council on November 16, 2015. These property transfers were contemplated by the Disposition and Development Agreement entered into in 2011 between the Former Redevelopment Agency (Former RDA) and M&M for development of an automobile dealership and adjacent access road (Margot Murphy Way), which are now complete.
The Acknowledgement and Release Agreement releases the parties' liability consistent with completion of the development of the dealership and construction of the access road.
DISCUSSION:
On November 16, 2015, the City Council approved the Property Transfer Agreement and Escrow Instructions for the transfer of Parcel 8 from M&M to Conneaut. This property transfer satisfies requirements established by the Disposition and Development Agreement (DDA) entered into between the Former RDA and M&M in 2011 for development of an automobile dealership and access road. Parcel 8 is being transferred to Conneaut in consideration for Conneaut allowing a portion of its land (Parcel 11, which is being transferred from Conneaut to M&M) to be included within the boundaries of the Access Road and for dedicating land to the City for the widening of East Palm Canyon Drive. Parcel 8 was previously part of a larger site owned by the Former RDA and is included in the DDA between the City and M&M. As such, Parcel 8 remains encumbered by the DDA.
Conneaut has not been a party to the DDA. Therefore, the Proposed Partial Release and Termination of the Disposition and Development Agreement will, upon transfer of Parcel 8 to Conneaut, release Parcel 8 from the encumbrance of the DDA and the encumbrance of the Declaration of Redevelopment Covenants (except for the nondiscrimination covenants and the nonsegregation covenants as required by law)
The Acknowledgement and Release Agreement formally closes out the funding agreement established for construction of the access road and releases the parties from any liability in connection with development of the access road, the automobile dealership and related facilities, since all have been constructed.
Mike Murphy, Managing Member of M&M, agrees to and has signed both agreements (please see Attachments 1 and 2).
FISCAL IMPACT:
None with this action.
ATTACHMENTS:
1. Partial Release and Termination of the Disposition and Development Agreement
2. Acknowledgement and Release Agreement.