HomeMy WebLinkAboutR06-Economic Development Agency
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DBVBLOPIIIIr DBP~J: OF TUB
CIn OF SAIl -"~I1IO
DOIIRlIT P02 COIMISSIOK/CODlICIL ACTIOR
From: JU51'U'IIIXH J. JlBRDB2S0N
lzecuti~e Director
Subj ect: . 0lII lJUIIlIJo.[ COlJJlT-
IIO'fICB OF DEFAULT
Date: July 9, 1991
SJDOpai8 of Previoua C~88iODlCcnmcil/C~ttee Action:
On December 21, 1987, a Pre-Di8position Agreement with the Simchowitz
Corporation was approved. It was 8ubsequently _ended four times to extend the
term. On October 16, 1989, a Disposition and Development Agreement with One
Sunset Court, Ltd. was approved following the close of public hearings by the
COllllllUl1ity Development COIIIIIission and by the Mayor and CODlDon Council.
2ec_eIIIled IIotion:
(COIl__J:n DBVBLOPIIIIr COIMISSIOK)
m.u TUB Cl.1__ul DBVBLOPIIIIr COIMISSIOR AUmOUZB TUB SBIIDmG OF A 1IOTICB OF
DEFAULT TO 0lII DUJIZtJo.[ comrr. LTD.. WI'I'B asPECT TO A DISPOSITIOR AND DBVBLOPIIIIr
~~n'''UIU II&1'ID OCTOBB2 16. 1919.
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ADmIISTUT02
........J:~. becutive Director
Deve1o.-ent DepartaeD.t
Contact Person: ~en B.nderson/John Boeaer
Phone: 5065/5081
Project Area: Central City
Ward(s): One (1)
Supporting Data Attached: Staff ReDort
FUNDING RBQUIIlEMBNTS:
Amount: $ None
NIA
Source:
Budget Authority:
R/A
C~s8iODlCcnmc11 JIotes:
JBB:lag:1113J:
COIIIISSIOR AGDDA.
lIeeting Date: (..:/7,,~.'
Agenda Item Ko:
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JIBVBLOPIIBBT DBPAJrU'IARJ.
STAFF DPORT
One Snn-et Court Rot ice of Default
On October 16, 1989, a Disposition and Deve10pmeQt Agreement was consummated
with One Sunset Court, Ltd. for the development of s 155,000 square foot office
bui1dina on the southeast corner of Court and E Streets. The Agreement called
for construction to commence last year on July 18, 1990, but the developer has
defaulted on this and other requirements of the Agreement and does not appear to
be in a position to perform. Approvina this ..enda item would result in the
sendina of a notice to the developer to cure the defaults.
The Commission has met previously in closed session to consider the default of
the developer and the developer was contacted and asked to withdraw from the
project. The response received by the Chairman of the COllllission was
unsatisfactory and the City Attorney's office subsequently reviewed the
termination provisions of the Agreement.
The attached letter has been drafted by Dennis Barlow, Senior Assistant City
Attorney, to convey the notice of the default and to beain a thirty (30) day
period as provided in the Agreement. If at the end of that period the defaults
have not been cured, then the Agreement would be terminated. Approval of the
Commission is required to authorize the sendina of the notice.
On Auauat 8, 1991, the Redevelopment Co_ittee reviewed this matter. The
Committee and Staff recommend adoption of the form motion.
, beentive Director
t
DeYelor-ent Depa
IJH:JBH:1aa:1883J
COIMISSIOR IIIITIIG
lIeetina Date: 08/19/91
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, 1991
One SW18et Court, Ltd.
225 West Hospitality Lane, Suite 100
San Bernardino, CA 92408
Re: Court and BEB Street Developm.nt
Gentl...n,
On October , 1989, you .nt.red into a Disposition and
Dev.lopment Agreeiiiiiit with the Redevelopm.nt Agency of the City of
San B.rnardino. According to the d.v.lopm.nt sch.dul. contained in
Attachm.nt No.3 to that Agr...ent you _re to have submitted full
working drawings to the D.partment of Building and Saf.ty on or
before May 18, 1990, and to hev. COIIIIII.nc.d construction on or
before July 18, 1990. You have fail.d to ..et .ith.r of these
d.adlin.s. Pursuant to 5612(c) and (d) of the Agr...ent you are
her.by notifi.d that you are in d.faul t of the Agr....nt and thet
if the default is not cured within thirty (30) days of the date of
this Agr....nt all rights and r..p0n8ibiliti.s thereund.r will be
terminated.
Xf you have any que.tiona on this .atter pl.ase contact
Kenneth J. H.nderson, Executive Director.
Very truly yours,
W.R. HOLCOMB,
Chairman
ComIIIuni ty DevelOPment ()vwntf ssion
DAB/ses/Sunaet.ltr
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