02-01-1994 - 3rd Amendment to Negotiating Agreement Between the Agency & Hassen Imports Partnership, Inc.City or West Covina
Memorandum
TO: City Council and City Manager
FROM: Redevelopment Agency Staff
SUBJECT: THERD AMENDMENT TO NEGOTIATING
AGREEMENT BETWEEN THE AGENCY AND
HASSEN MIPORTS PARTNERSHIP, INC.
AGENDA
ITEM NO. G-2b
DATE February 1, 1994
SUMMARY: On December 7 1993, the City Council approved a Second Amendment to Negotiating
Agreement with Hassen Imports Partnership in an effort to resolve certain outstanding issues
relating to property adjacent to the new Dodge site. The proposed Third' Amendment to
Negotiating Agreement extends the term of the Agreement to June 7, 1994.
DISCUSSION
On May 4, 1993, the Agency adopted a resolution approving an Owner Participation Agreement (OPA) with
Hassen Imports Partnership and West Covina Motors, Inc., providing for the relocation of Covina Dodge to
the original Mitsubishi site. The Dodge dealership officially opened its doors for business on October 25,
1993. In November 1993, its first complete operating month, the) Dodge dealership reported selling
approximately 60 vehicles.
The Agency also approved a Negotiating Agreement on May 4, 1993, which provided for a 90-day period
to negotiate the settlement of the issues related to two previous Disposition and Development Agreements
between the Agency and Hassen Imports, Inc. The issues specific to this negotiating period relate to the
ultimate acquisition and development of the La Ronde apartments.
The lengthy financial approval process between Chrysler Credit and West Covina Imports, Inc..rendered the
performance schedule outlined in the original OPA impossible. Therefore, a First Amendment to the Owner
Participation Agreement and Negotiating Agreement was . approved in August, providing for operator
improvements to be completed and the relocated Dodge dealership to be in operation by October 1, 1993
instead of August 6, 1993, as: originally projected.
Negotiations toward the settlement of the outstanding issues relative to the existing Disposition and
Development A11
greements .between the Agency and Hassen Imports Partnership were postponed until the
Chrysler Credit issues were satisfied and the Dodge dealership could open for business.'! As mentioned
previously, the dealership did not open until October 25, 1993.
The First Amendment to the Negotiating Agreement extended the time to complete negotiations until October
28, 1993. Because negotiations could not begin until after the opening of the dealership, a second extension
of the Negotiating Agreement was necessary to move close to conclusion of our business with Hassen Imports
Partnership. This Second Amendment to Negotiating Agreement was approved on December 7, 1993 and
extended the negotiating period to February 1, 1994.
Agency staff has met with Mr. Alhassen to begin the discussions on the acquisition of the adjacent apartment
complex. Additional time will be necessary to conclude these negotiations. A key component of the
negotiations will be the completion of an updated acquisition appraisal. The earliest this can be obtained is
approximately 60 days from now.
Because both the City Council and the Redevelopment Agency are a party to this Negotiating Agreement, both
governing bodies must approve this proposed Third Amendment.
City Council and
City Manager -2- February 1, 1994
RECOMMENDATION
his recommended that the City Council approve ;the Third Amendment to Negotiating Agreement extending
the negotiation period to June 7, 1994.
4
Chester Yoshizaki
Redevelopment anager
APPROVED:
even W. Wylie
Director of Redevelo nt Services
HIP107KJ
THIItD AMENDMENT TO NEGOTIATING AGREEMENT
u
The THIRD AMENDMENT TO NEGOTIATING AGREEMENT, ("Third Amendment") is
made and entered into by and between the CITY OF WEST COVINA, a municipal corporation
("City"), and the REDEVELOPMENT AGENCY OF THE CITY OF WEST COVINA, a°public body
("Agency"), on the one hand, and HASSEN IMPORTS, INC., a California corporation
("Corporation"), HASSEN , IMPORTS PARTNERSHIP, a California limited "partnership..
("Partnership"), WEST COVINA MOTORS, INC., a California corporation ("West Covina Motors,
Inc.") and ZIAD ALHASSEN, a married man ("Ziad Alhassen"), on the other hand (Corporation,
Partnership, West Covina Motors, Inc., and Ziad Alhassen are sometimes collectively referred to
herein as "Hassen").
RECITALS:
The Third Amendment is entered into with reference to the following facts:
A. On or about May 4, 1993, the City and Agency, on the one hand, and Corporation,
Partnership and Ziad Alhassen, on the other hand, entered into a Negotiating Agreement (the
"Negotiating Agreement") in an effort to settle a certain dispute referenced therein.
B. Pursuant to Section "1." of the Negotiating.Agreement, the parties agreed to enter into
a period of negotiation, commencing on the date when all parties had executed the ',i Negotiating
Agreement and terminating on July 30, 1993, during which; period they would seek to achieve a
settlement agreement with respect to the dispute.
C. By letter dated July 14, 1993, Hassen requested that. City and Agency extend the
expiration date of the negotiating period to October.28, 1993.
D. On or about November 16, 1993, the Agency and Hassen mutually agreed to extend the
negotiating period to February 1, 1994.
E. On or about December 7, 1993, the City agreed to extend the Negotiating period to
February 1, 1994.
AGREEMENT
The parties to this Third Amendment hereby agree as follows:
SECTION 1. Section "l." of the Negotiating Agreement is amended in its entirety to read as
follows:
1. Ne otg iating Period. The parties agree to negotiate with each other and attempt to
reach settlement of the above -recited matters for a period commencing on the date all parties
have approved and executed this Agreement and terminating June 7, 1994. The parties further
acknowledge and agree that in the event that the parties have not duly executed a mutually
acceptable settlement agreement on or before June 7, 1994, this Agreement shall automatically
terminate and at which time the parties are free to pursue whatever remedies each might choose
in connection with the subject matter described in the recitals above without affecting the rights
and obligations under the Dodge OPA."
J
SECTION 2. Except as expressly amended by this Third Amendment, the Negotiating Agreement
shall remain in full force and effect.
SECTION 3. Each individual signing below, represents and warrants that he/she has been duly..
authorized to execute this Agreement on behalf of the party he/she represents.
The parties to have executed the Third Amendment on the respective dates set forth below.
CITY OF WEST COVINA, a municipal
corporation
Dated: , 1994 By:
Mayor
("CITY")
ATTEST:
City Clerk
APPROVED AS TO FORM:
City Attorney
REDEVELOPMENT AGENCY OF THE CITY
OF WEST COVINA, a public body
a
DATE: , 1994 By:
Chairman
("AGENCY")
ATTEST:
Secretary
4
HASSEN IMPORTS, INC., a California
corporation
DATE: , 1994
By:
ip
Its:
("CORPORATION")
HASSEN IMPORTS PARTNER! SHIP, a
California limited partnership
DATE: , 1994
By: HASSEN IMPORTS, INC. a
California corporation, General Partner
By:
Its:
("PARTNERSHIP")
WEST COVINA MOTORS, INC., a California
corporation
DATE: , 1994
By:
Its:
a
("WEST COVINA MOTORS,:'' INC.")
MAD ALHASSEN, . a married man
DATE: 1994
By:
Y
("ZIAD ALHASSEN")
CONSENT OF SPOUSE
On May 4, 1993, I gave my consent ;for my spouse, Mad Alhassen, to enter into that certain
Negotiating Agreement dated May 4, 1995 (the "Negotiating Agreement"), knowing that, by the
provisions of the Negotiating Agreement, Mad Alhassen was agreeing to take, or to consider taking,
actions which may affect or alter his rights or interests in certain property owned by him, including
my community. interest therein (if any). I acknowledge that I have read the foregoing Third
Amendment and that I know. its contents, and I understand that the Third Amendment amends the
Negotiating Agreement that I previously consented to Ziad Alhassen entering. j hereby consent to
Ziad Alhassen. entering into the Third Amendment amending the Negotiating Agreement, and I
approve of the provisions of the Negotiating Agreement as amended by the Third Amendment. I also
acknowledge that I have been advised to obtain independent counsel to represent my interests with
respect to the Third Amendment and the Negotiating Agreement but that I have declined to do so and
I hereby expressly waive my right to such independent counsel.
Date: , 1994
Maha Alhassen
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