Housing Successor Agency
MEETING DATE: 4/26/2017
TITLE:
Title
Revised Purchase Agreement for the Downtown Mixed Use Project
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FROM:
Curt Watts, Economic Development Director
RECOMMENDATION:
Recommendation
Staff recommends the City Council, as the Housing Successor Agency, authorize the City Manager to execute a revised Purchase and Sale and Escrow Instructions Agreement between Cathedral Canyon Development, LLC and the City of Cathedral City as the Housing Successor Agency of the Former Redevelopment Agency of the City of Cathedral City.
Body
BACKGROUND:
On February 22, 2017 the Housing Successor Agency of the Former Redevelopment Agency of the City of Cathedral City ("City") approved a Purchase Agreement with Cathedral Canyon Development, LLC ("CCD") for the future sale of an approximate two-acre site located at the southeast corner of East Palm Canyon Drive and West Buddy Rogers Avenue for development of a mixed use project. As a result of CCD's recent change in legal counsel for the project, a number of wording changes have been requested prior to execution of the Agreement to better match CCD legal counsel's preferred language for certain sections of the Agreement and the escrow and closing process for this transaction. The business deal points for the transaction have not changed.
DISCUSSION:
The attached Agreement reflects requested changes that have been reviewed and accepted by the City Attorney. The accepted revisions do not alter the previously approved deal points of the transaction which still include:
1) Purchase Price of $331,000;
2) Completion of Due Diligence Period within 90 days after Effective Date of Purchase Agreement;
3) Approval of Performance Agreement to be negotiated and approved by all parties within 60 days after close of Due Diligence.
4) Close of Escrow by March 30, 2018 (extendable by 6 months to September 30, 2018 with increase in CCD's deposit to 50% of the $331,000 Purchase Price (i.e. $165,500). Close ...
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