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HomeMy WebLinkAboutR30- Economic Development F l 2 ECONOMIC DEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO FROM: Ronald E. Winkler,Director SUBJECT: RELEASE AFFECTING REAL Development Department PROPERTY DATE: June 1, 1999 ORIGINAL ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Syno- sis of Previous Commission/Council/Committee Action(s): On June 15, 1998,the Community Development Commission authorized execution of a Mutual Release and Waiver Agreement with Oak Properties. On May 20, 1999,the Redevelopment Committee reviewed this matter and recommends approval by the Community Development Commission. ---------------------------------------- ----------------------- ---------------------- Recommended Motion(s): (Community Development Commission) Adopt Resolution. Contact Person(s): Gary Van Osdel/ R. Winkler Phone: 5081 Project Area(s) Tri-City/Southeast Industrial Park Ward(s): One(1) Supporting Data Attached: ❑x Staff Report ❑ Resolution(s) ❑Agreement(s)/Contract(s) El Map(s) ❑ Letter/Memo FUNDING REQUIREMENTS Amount: $ N/A Source: N/A r ? Budget Authority: N/A . f SIGNATURE: Gary n sdel,Executive irector o Director Economic Development Agency Development Department ----------------- ------ -------------------------------------------------------------------------------------------------- --------- ------------------------------- Commission/Council Notes: -------------------------------------------------------------------------------------------------------------------------------------------- REW:lag:99-06-07 Mutual Release COMMISSION MEETING AGENDA Meeting Date: 06/07/1999 Agenda Item Number: — L- ECONOMIC DEVELOPMENT AGENCY STAFF REPORT --------------------------------------------------------------------------------------------------------------------- Release Affecting Real Property Background At the meeting of June 15, 1998, the Commission authorized execution of a Mutual Release and Waiver Agreement with Oak Properties. The intent of the agreement was to clear title on property subject to agreements between the Agency and T.J. Burris Corporation executed in 1978 and Teong Kay dated August 14, 1989. The T.J. Burris agreement governed the sale and development of 35.5 acres of property in the Southeast Industrial Park Project Area. T.J. Burris failed to develop the property in accordance with the agreement and was declared in default in 1985. By 1989, most of the property was acquired by Mr. Teong Kay together with additional property in the Tri-City Project Area. On August 7, 1989, the Commission authorized an Owner Participation Agreement (OPA) with Kay which provided for the following: • Payment to the Agency of$50,000 to cover damages under the Burris Agreement. • Liquidated damages in the amount of$100,000, in the event Kay failed to perform under its OPA. Subsequently, Kay failed to perform and the property was in foreclosure as part of a Chapter 11 bankruptcy in 1993. Resultant purchase of a portion of the property through the foreclosure proceedings, led to the Mutual Release and Waive agreement with Oak Properties to clear title. Current Issue On May 14, 1999, a representative of Granum Family Trust, the general partner for NMSBPCSLDHB a California Limited Partnership which recently acquired portions of the site contacted staff. The Partnership recently completed construction on a 25,000-sq. ft. building at 804 East Brier Drive occupied by National University. This building is valued at $3,600,000 and is first of a series to be built totaling 146,000-sq. ft. dependent upon pre-lease commitments. They are now ready to secure permanent financing, however, the lender's attorney requests that the prior agreements be cleared from title. Consequently, a Mutual Release and Waiver Agreement was prepared for approval. However, upon further consideration, it was recommended to the Redevelopment Committee that a more general "Release Affecting Real Property" be executed and recorded. This covers all parcels subject to the Burris and Kay Agreements to facilitate future development. It also avoids the need to repeat this process for future owners. -------------------------------------------------------------------------------------------------------------------------------------------- REW:lag:99-06-07 Mutual Release COMMISSION MEETING AGENDA Meeting Date: 06/07/1999 Agenda Item Number: R30 . Economic Development Agency Staff Report Release Affecting Real Property May 24, 1999 Page Number-2- --------------------------------------------------------------------------------------------------------------------- Fiscal Impact Execution will facilitate additional development with resultant tax increment to the Agency. Recommendations Based upon the above the Redevelopment Committee recommends that the Community Development Commission adopt the attached Resolution and authorize execution of a Release Affecting Real Property. Ronald E. inkler, Director Development Department -------------------------------------------------------------------------------------------------------------------------------------------- REW:lag:99-06-07 Mutual Release COMMISSION MEETING AGENDA Meeting Date: 06/077/1/9999 6/ Agenda Item Number: 6/3 V COPY 1 RESOLUTION NO: 2 3 RESOLUTION OF THE COMMUNITY DEVELOPMENT 4 COMMISSION OF THE CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING THE EXECUTIVE DIRECTOR OF THE 5 REDEVELOPMENT AGENCY (THE "AGENCY") TO EXECUTE A RELEASE AFFECTING REAL PROPERTY IN THE TRI- G CITY/SOUTHEAST INDUSTRIAL PARK AREAS BE IT RESOLVED BY THE COMMUNITY DEVELOPMENT COMMISSION a OF THE CITY OF SAN BERNARDINO AS FOLLOWS: 9 10 SECTION 1. The Executive Director of the Redevelopment Agency ("Agency") 11 is hereby authorized and directed to execute on behalf of said Agency a Release Affecting Real 12 Property, a copy of which is attached hereto and incorporated herein by reference as though fully 13 set forth at length. 14 SECTION 2. The authorization to execute the above referenced Agreement is 15 rescinded if the parties to the Agreement fail to execute it within sixty (60) days of the passage of 16 this resolution. 18 //// 19 //// 20 21 //// 22 23 24 25 26 27 28 Page 1 of 2 1 2 RESOLUTION OF THE COMMUNITY DEVELOPMENT 3 COMMISSION OF THE CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING THE EXECUTIVE DIRECTOR OF THE 4 REDEVELOPMENT AGENCY (THE "AGENCY") TO EXECUTE A RELEASE AFFECTING REAL PROPERTY IN THE TRI- 5 CITY/SOUTHEAST INDUSTRIAL PARK AREAS 6 7 I HEREBY CERTIFY that the foregoing resolution was duly adopted by Community 8 Development Commission of the City of San Bernardino at a meeting 9 thereof, held on day of , 1999 by the following vote, 10 to wit: 11 12 COMMISSION MEMBERS: AYES NAYS ABSTAIN ABSENT 13 ESTRADA LIEN 14 MCGINNIS SCHNETZ 15 DEVLIN 16 ANDERSON MILLER 17 18 19 Secretary 20 The foregoing resolution is hereby approved this day of 1999. 21 22 Judith Valles, Chairperson 23 Community Development Commission 24 Of the City of San Bernardino 25 Approved as to form and Legal Content: 26 Agency Counsel 27 28 By: Page 2 of 2 RECORDING REQUESTED BY: ) WHEN RECORDED MAIL TO: ) SABO & GREEN, ) a Professional Corporation ) 201 North "E" Street ) Suite 300 ) San Bernardino, CA 91302 ) Attention: Gale Schlesinger ) (SPACE ABOVE FOR RECORDER'S USE) RELEASE AFFECTING REAL PROPERTY 1 . The Redevelopment Agency of the City of San Bernardino (the `Agency" ) and T . J. Burris Corporation previously entered into that certain Disposition and Joint Development Agreement dated December 28, 1978 (the "Burris Agreement" ) , providing for the development of certain real property legally described in Exhibit "A" attached hereto and incorporated herein by this reference (the "Site" ) . 2 . The Agency and Teong Kay and Joyce Kay (the "Participants") entered into that certain Owner Participation Agreement recorded February 21, 1990, as Instrument Nos . 90-067475 and 90-067476, Official Records, County of San Bernardino providing for development of the Site (the "OPA" ) . 3 . On or about r 19 the Agency received One Hundred Thousand Dollars (100, 000) as liquidated damages for Participants' default of the OPA. 4 . Subsequent to such default, title to portions of the Site has been acquired by several different purchasers . 5 . Effective upon recordation of this Release Affecting Real Property ("Release") , the Agency hereby releases the Site from the terms and conditions of the Burris Agreement and the OPA. The Burris Agreement and the OPA are hereby extinguished and the Site shall cease to be subject to the development obligations set forth therein. The Agency has signed this Release as of the date set forth below. AGENCY Redevelopment Agency of the City of San Bernardino, a body corporate and politic Date : By: Gary Van Osdel Executive Director ATTEST: By. Agency Secretary Approved' s o form: By: Agency Counse [ATTACH NOTARY J FOR ALL SIGNATURES] i SBEO/0001/DOC/3497 05/18/99 3:05 klc STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO ) On before me, (here insert name and title of the officer) , personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person (s) whose names (s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity (ies) , and that by his/her/their signature (s) on the instrument the person (s) , or the entity upon behalf of which the person (s) acted, executed the instrument . WITNESS my hand and official seal . Signature (Seal) SBEO/0001/DOC/3497 05/18/99 3:05 klc STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO ) On before me, (here insert name and title of the officer) , personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person (s) whose names (s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity (ies) , and that by his/her/their signature (s) on the instrument the person (s) , or the entity upon behalf of which the person (s) acted, executed the instrument . WITNESS my hand and official seal . Signature (Seal) SBEO/0001/DOC/3497 05/18/99 3:05 klc i N MV* - � . ■ Tby M . Lucky Farms FIRST WARD University• • • ___ J � ��■ J 0 0 -M�111111 1 THIRD WARD . • m `� 11111 Rom : `.:...;�■ 11110► , rllll■1 0 - : 111111`■■���■■ii�� o © r • -