11-16-2010 - Extension to an Exclusive Negotiating Agreement wi - ITEM 5 (2).docCity of West Covina
Memorandum
A G E N D A
ITEM NO. #5
DATE November 16, 2010
TO: Andrew G. Pasmant, Executive Director
and the Community Development Commission
FROM: Christopher J. Chung
Community Development Commission Director
SUBJECT: EXTENSION TO AN EXCLUSIVE NEGOTIATING AGREEMENT WITH ASHDON DEVELOPMENT WEST COVINA, INC.
RECOMMENDATION: It is recommended that the Community Development Commission Board (“CDC Board”) approve a six-month extension to the Exclusive Negotiating Agreement (“ENA”) with Ashdon
Development West Covina, Inc., (“Ashdon”) in order to finalize the terms of sale and development of the AAA Pad located at the northeast corner of Azusa Avenue and Giambi Lane intersection,
and authorize the Executive Director to prepare and execute the extension.
DISCUSSION:
On December 1, 2009, the CDC Board approved an ENA with Ashdon Development West Covina, Inc. (“Ashdon”) to construct a service station and full-service car wash with a convenience store,
ancillary food and beverage sales (e.g., sandwich type food and coffee sales). Subsequently, Ashdon conducted its due diligence, prepared plans (site and elevations), and has obtained
planning entitlements and environmental clearances (Planning Commission date of August 24, 2010). Ashdon has also coordinated with other departments, including the Building Department,
Fire Department, and Engineering. Each department has reviewed the proposed project and has approved the site plan.
A 60-day extension to ENA was approved by the CDC Board on September 7, 2010 and the ENA is scheduled to expire on November 25, 2010. Ashdon has requested a new six-month extension
(to a new expiration date of May 31, 2011) in order to secure financing, a new tenant as Del Taco withdrew from the project, process the signage approvals with the Planning Commission,
and to complete their review and terms of the DDA. During this time, the Zone Change (No. 10-01) and General Plan Amendment (No. 10-01) will also be presented to the City Council for
action by the Planning Department.
An ENA is not an agreement to sell or develop a property. Rather, it is a standard redevelopment real estate agreement that allows the parties to negotiate exclusively on the potential
terms of a land sale and/or development of a property in which would be formalized in the Disposition Development Agreement (“DDA”) or Purchase and Sale Agreement (“PSA”). The ENA
also provides both the CDC and Developer with an opportunity to analyze the feasibility of pursuing the project while addressing various issues related to development of the site.
ALTERNATIVES:
The CDC Board has the following alternatives:
Authorize the Executive Director to extend the ENA for an additional six-month period to a new expiration date of May 31, 2011;
Deny Ashdon’s request for a six-month ENA extension;
3. Provide alternate direction.
FISCAL IMPACT:
There is no fiscal impact to the CDC in approving the six-month extension to the ENA.
Prepared by: Benjamin Kim Reviewed by: Mike Lee
Redevelopment Manager Assistant Director
Reviewed & Approved by: Christopher J. Chung
CDC Director
Reviewed & Approved by: General Counsel
to the CDC
Attachments: No. 1 – Ashdon’s request for the six-month ENA extension
No. 2 – Exclusive Negotiating Agreement with Ashdon Development West Covina, Inc.