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Resolution No. 5880302 RESOLUTION NO. 5880 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CYPRESS APPROVING A DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN THE CYPRESS REDEVELOPMENT AGENCY AND JONES DEVELOPMENT GROUP, LLC PERTAINING TO CERTAIN REAL PROPERTY LOCATED WITHIN THE LOS ALAMITOS RACE TRACK AND GOLF COURSE REDEVELOPMENT PROJECT AREA IN THE CITY OF CYPRESS. WHEREAS, the City Council of the City of Cypress ( "City" or "City Council ", as applicable) is a public body, corporate and politic, organized and existing under the California Community Redevelopment Law (Health & Safety Code Section 33000 et seq.) ( "CRL "); and WHEREAS, pursuant to the CRL, the City Council approved and adopted the Redevelopment Plan ( "Redevelopment Plan ") for the Los Alamitos Race Track and Golf Course Redevelopment Project Area ( "Project Area "), by Ordinance No. 851 on June 18, 1990, as amended by Ordinance No. 952 on January 9, 1995, and by Ordinance No. 1014 on September 10, 2001; and WHEREAS, the City Council is the owner of that certain real property consisting of approximately 3.05 acres of land area comprised of two adjacent legal parcels, one of which is located at the northwest corner of Walker Street and Katella Avenue ( "Corner Parcel ") and one of which is located along the Katella Avenue frontage at the northeast corner of Winner's Circle ( "Winners Parcel ") (the Corner Parcel and the Winners Parcel are collectively referred to herein as the "Site "); and WHEREAS, City Council staff has negotiated a Disposition and Development Agreement including attachments thereto (collectively, the "DDA ") with Jones Development Group, LLC, a California limited liability company ( "Developer "), pursuant to which the Agency proposes to convey the Site to the Developer for the sum of Two Million Four Hundred Ninety Three Thousand Three Hundred Seventy -Nine Dollars ($2,493,379); and WHEREAS, the portion of the $2,493,379 Site purchase price allocable to the Corner Parcel is One Million Two Hundred Fifty Three Thousand Three Hundred Eight Dollars ($1,253,308) and the portion allocable to the Winners Parcel is One Million Two Hundred Forty Thousand Seventy -One Dollars ($1,240,071); and WHEREAS, City Council staff has presented the draft DDA to the Agency Board and City Council for consideration; and WHEREAS, pursuant to the terms of the DDA, Developer shall acquire the Site for Developer's development thereon of a restaurant and other food and retail uses ( "Project "); and WHEREAS, the DDA also provides, among other terms, that Agency may repurchase the Site from the Developer in the event the Developer (i) fails to commence construction of the Project within the time specified in the DDA, (ii) abandons or suspends construction of the Project for sixty (60) days after notice from the Agency, or (iii) transfers all or any portion of the Site or the Project in violation of the DDA, all as more particularly described in the DDA; and WHEREAS, the CRL, at Health and Safety Code Section 33433, requires that (i) the Agency prepare a Summary Report concerning the Agency's proposed disposition of the Site as set forth in the DDA, (ii) the Agency Board and the City Council conduct a noticed joint public hearing with respect to the DDA, and (iii) the approval of the DDA be set forth in a resolution making certain findings and determinations as set forth hereinbelow; and 303 WHEREAS, pursuant to the requirements of the CRL, a Summary Report for the DDA has been prepared by the Agency's economic consultant Keyser Marston Associates, Inc.; and WHEREAS, a joint public hearing of the Agency Board and City Council has been noticed and conducted in accordance with applicable requirements of law; and WHEREAS, at the joint public hearing the Agency and City Council each considered all of the information, testimony, and evidence presented, including but not limited to the draft DDA in the form presented by Agency staff concurrent with consideration of this Resolution, the Agency staff report, the Summary Report, and the oral and written testimony received from persons wishing to appear and be heard concerning the proposed DDA. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CYPRESS HEREBY RESOLVES AS FOLLOWS: 1. Based on all of the information, testimony, and evidence presented at the joint public hearing, including but not limited to the draft DDA and the information and evidence set forth in the Agency staff report, the Summary Report, and the oral and written testimony received, the City Council finds and determines as follows: a. That the above Recitals are true and correct and are incorporated herein. b. That the DDA effectuates the purposes of the Community Redevelopment Law (Health & Safety Code Section 33000 et seq.), and of the Redevelopment Plan, and is in the best interests of the citizens of the City of Cypress. c. That the City's disposition of the Site pursuant to the DDA will assist in the elimination of blight in that the Site is vacant and is underutilized in its location at a commercially desirable corner in the City of Cypress. The development of the retail uses on the Site will assist in the elimination of this blighting condition. d. That the Agency's disposition of the Site pursuant to the DDA is consistent with the Agency's current Five -Year Implementation Plan in that the Implementation Plan identifies in Chapter IV, Section 2B (i) the goal of pursuing major economic development projects that will stimulate new commercial expansion, employment, and economic growth in the Project Area, and (ii) identifies the development of the Site as a project that would address one or more blight factors and assist in the economic enhancement of the community. e. That the consideration the Developer will pay for the Agency's disposition of the Site is not less than the fair reuse value of the Site at the use and with the covenants and conditions and development costs authorized by the disposition. 2. The DDA, a true and correct copy of which is on file with the City Clerk/Agency Secretary, is hereby approved. 3. The City Council consents to (i) the authorization and direction given by the Agency to its Executive Director, Deputy Executive Director, and General Counsel to make final technical modifications to the DDA that are consistent with the substantive terms of the DDA approved hereby, and (ii) the authorization and direction given to the Agency Chairman to thereafter sign the DDA on behalf of the Agency. 4 The City Council consents to (i) the authorization and direction given by the Agency to its Executive Director, Deputy Executive Director, and Secretary, to sign, on behalf of the Agency, such other and further documents, including but not limited to subordination agreements and those agreements attached to the DDA as exhibits, as may be necessary and proper to carry out the terms of the DDA. 2 5. The City Council consents to the authorization and direction given by the Agency to its Executive Director, Deputy Executive Director, Secretary, and General Counsel to take such other and further actions, including but not limited to signing escrow instructions and estoppel certificates, as may be necessary and proper to carry out the terms of the DDA. PASSED AND ADOPTED by the City Council of the City of Cypress at a regular meeting held on the 11th day of July, 2005. MAYOR OF THE CITY OF CYPRESS ATTEST: CI CLERK OF THE CITY OF CYPRESS STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS I, JILL R. GUERTIN, City Clerk of the City of Cypress, DO HEREBY CERTIFY that the foregoing Resolution was duly adopted at a regular meeting of the said City Council held on the 11th day of July, 2005, by the following roll call vote: AYES: 4 COUNCIL MEMBERS: Luebben, McCoy, Seymore and McGill NOES: 0 COUNCIL MEMBERS: None ABSENT: 1 COUNCIL MEMBERS: Sondhi 3 CLERK F THE CITY OF CYPRESS 304