Resolution - 6606•
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RESOLUTION NO. 6606
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WEST COVINA, CALIFORNIA APPROVING CERTAIN
CHANGES TO THE DISPOSITION AND DEVELOPMENT
AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY OF
THE CITY OF WEST COVINA AND EQUIDON INVESTMENT
BUILDERS; MAKING CERTAIN FINDINGS WITH RESPECT TO
THE CONSIDERATION TO BE RECEIVED BY THE AGENCY
PURSUANT TO SAID AGREEMENT, AS CHANGED;
APPROVING THE PROPOSED SALE OF SAID REAL
PROPERTY: CONSENTING TO THE PROVISION FOR
CERTAIN PUBLIC IMPROVEMENTS; AND APPROVING THE
DISPOSITION AND DEVELOPMENT AGREEMENT, AS
CHANGED
WHEREAS, Redevelopment Agency of the City of West Covina (the "Agency") is
engaged in activities necessary to execute and implement the Redevelopment Plan for
the Central Business District Redevelopment Project (the "Project"); and
WHEREAS, in order to execute and implement the Redevelopment Plan, the
Agency proposes to sell certain real property known as the Vincent -Glendora Center
Site (the "Site") in the Project area, pursuant to the terms and provisions of a proposed
Disposition and Development Agreement (the "Agreement") to be entered into with
Equidon Investment Builders (the "Developer"), which Agreement contains a
description of said Site; and
WHEREAS, the Developer has submitted to the Agency a written offer in the
form of said Agreement to purchase the Site; and
WHEREAS, the Agency and the Developer have agreed to make certain changes
in the Agreement for the purchase and development of the Site; and
WHEREAS, the proposed Disposition and Development Agreement as proposed to
be changed contains all the provisions, terms and conditions, and obligations required
by the State and local law; and
WHEREAS, the Developer possesses the qualifications and financial resources
necessary to acquire and insure the development of the Site in accordance with the
purposes and objectives of the Redevelopment Plan; and
WHEREAS, the Agency has prepared, and the City Council has reviewed and
considered, a summary report setting forth the cost of the Agreement to the Agency,
the estimated value of the interests to be conveyed determined at the highest uses
permitted under the Redevelopment Plan, and the purchase and lease prices, and made
said summary available for public inspection in accordance with the California
Community Redevelopment Law; and
WHEREAS, the summary report has been considered by Agency staff and
consultants in light of the changes, and the staff and consultants have satisfied this
Council that the sale and Agreement are feasible; and
in
Res. No. 6606
WHEREAS, the Agency and the City Council have determined that the proposed
changes to the Agreement to purchase the Site will not affect the determination that
the proposed development and the method of financing are feasible as set forth in said
summary report; and
WHEREAS, the Agency prepared and certified an Environmental Impact Report
for the development of the Site as proposed by the Disposition and Development
Agreement and this City Council by Resolution certified that it has reviewed and
considered the Environmental Impact Report with respect to such development; and
WHEREAS, pursuant to the California Community Redevelopment Law, the
Agency and the City Council held a joint public hearing on the proposed sale of the
Site and on the proposed Disposition and Development Agreement, as changed; and
WHEREAS, the City Council has duly considered all terms and conditions of the
proposed sale and believes that the development of the Site pursuant to the proposed
Disposition and Development Agreement, as changed, is in the best interests of the
City and the health, safety, morals, and welfare of its residents, and in accord with
the public purposes and provisions of applicable State and local law and requirements.
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of West
Covina as follows:
1. The City Council hereby approves the changes to the proposed Disposition
and Development Agreement between the Agency and the Developer set out in Exhibit
"A" attached hereto and incorporated herein by this reference, and authorizes the
Executive Director of the Agency to -incorporate said changes into the Disposition and
Development Agreement.
2. The City Council hereby finds and determines that the consideration for
the sale of the Site pursuant to the Disposition and Development Agreement, as
changed, between the Agency and the Developer is not less than the fair market value
for the Site in accordance with the covenants and conditions governing such sale.
3. The City Council hereby finds and determines that the consideration for
the sale of the Site pursuant to said Agreement, as changed, is necessary to effectuate
the purpose of the Redevelopment Plan.
4. The City Council hereby finds and determines that the provision by the
Agency of certain public improvements for the Site pursuant to the Agreement, as
changed, which improvements would otherwise be the responsibility of the Developer,
is necessary to effectuate the purposes of the Redevelopment Plan.
5. The City Council hereby consents to the providing of said public
improvements by the Agency. .
6. The sale of the Site by the Agency to the Developer and the Disposition
and Development Agreement, as changed which establishes the terms and conditions
for the sale and development of the Site, are hereby approved.
ATTEST:
Mayor
City Clerk
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Res. No. 6606
October 4, 1982
• I HEREBY CERTIFY that the foregoing Resolution No. 6606 was duly
adopted by the City Council of the City of West Covina at an adjourned
regular meeting thereof held on the 4th day of October 1982, by the following
vote:
AYES: Councilmen: Bacon, Shearer, Chappell, Tice
NOES: Councilmen: None
ABSENT: Councilmen: Tennant
ABSTAIN: Councilmen: None
APPROVED AS TO FORM:
e eral ounsel
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City: C erk
Am
EXHIBIT "A"
PROPOSED CHANGES IN THE PROPOSED DISPOSITION AND DEVELOPMENT
AGREEMENT BY AND BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY
OF WEST COVINA AND EQUIDON INVESTMENT BUILDERS FOR THE
DEVELOPMENT OF THE VINCENT- GLENDORA CENTER SITE
1. Page 4. Change the date "January 4, 1984," in the first paragraph on page 4
• to "January 16, 1984."
2. Page 5. Delete the last paragraph on page 5 and insert in place thereof the
following paragraph:
"When the second and third development phases begin, land
within Developer Parcels 2 and 3 necessary for the improvements to
be constructed, and which is subject to the parking lease agreements
pursuant to Bond Issue No. 1, will be released from such leases to
permit the required development to proceed. At the time of
purchase each land purchase price paid by the Developer for
Developer Parcels 2 and 3 shall be credited with a sum calculated by
dividing the annual debt service requirement of Developer with
respect to Bond Issue No. 1 of $695,000 by the actual bond service
constant; the resulting quotient shall be reduced by (1) the actual
construction costs for Phase I parking facilities on Parcels 2 and 3,
(2) the costs and expenses of issuance of Bond Issue No. 1, and (3) the
reserve fund for Bond Issue No. 1; the resulting sum is then divided by
the number of square feet contained in Developer Parcels 2 and 3
collectively, and the resulting quotient shall equal the basic credit
per square foot of the land cost element of Bond Issue No. 1 principal
for the Developer Parcel then being purchased."
3. Page 38. Delete the last sentence in subsection (c) of Section 701.1 and insert
in place thereof the following sentence:
• "The Agency and the Developer agree to enter into such
subsequent agreements as may be necessary to implement
a financing plan by the method and in the form
contemplated herein, or by such other method and form as
may be approved by the parties."
4. Pages 39-42. Delete subsection (e) of Section 701.1 and insert in place
thereof the following subsection (e):
"(e) When the second and third development phases begin, land
within Developer Parcels 2 and 3 necessary for the improvements to
be constructed thereon, and which is subject to Parking Lease
Agreements pursuant to Bond Issue No. 1 as provided in Section
701.1(d) must be released from such leases to permit the required
development to proceed.
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At the beginning of the second and third development phases,
respectively, a credit to the land purchase prices shall be calculated
as follows:
(i) The annual debt service requirement of Developer with
respect to Bond Issue No. 1 of $695,000 shall be divided by the actual
annual bond service constant.
• (ii) The resulting quotient shall be reduced by:
- The actual cost of construction of Phase I parking
facilities on Parcels 2 and 3; plus
- The costs and expenses of issuance of Bond
Issue No. 1; plus
- The reserve required with respect to Bond
Issue No. 1.
(iii) The resulting sum shall then be divided by the number
of square feet contained in Developer Parcels 2 and 3 collectively.
(iv) The resulting quotient shall equal the "basic credit"
per square foot of land cost element of Bond Issue No. 1 principal for
the Developer Parcel (2 or 3) then being purchased.
. By way of example only, the following assumptions demonstrate
the calculations embodied in the above formula.
Assume: Parcel 2 purchased three (3) years after issuance of
Bond Issue No. 1 and Parcel 3 purchased six (6) years after issuance
of Bond Issue No. 1.
• (a) $695,000 per annum Developer bond debt service on
Bond Issue No. 1
(b) Twelve percent (12%) per annum bond rate
(c) .1269 bond debt service constant based upon twenty-
five (25) year amortization (semi annual payments)
(d) $1,500,000 cost construction of parking facilities on
Parcels 2 and 3 and Agency Parcel
(e) $330,000 Bond Issue No. 1 issuance costs and
expenses, including discount
(f) $800,000 Bond Issue No. 1 reserve
(g) 397,659 square feet in Parcels 2 and 3 together
(h) 203,556 square feet in Parcel 2
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(i) 194,103 square feet in Parcel 3
Thus: $695,000 (a) - .1269 (c) =
$5,476,753
(1,500,000) (d)
( 330,000) (e)
( 800,000) (f)
$ 2,846,753 (k) (land cost element
of Bond Issue
No. 1)
$2,846,753(k) - 397,659 (g) _ $ 7.16 (1) (basic credit per
square foot for land
value in Bond Issue
No. 1)
Credit to land purchase at time of purchase of Parcel 2:
$7.16 (1) x 203,556 (h) = $ 1,457,461
Credit to land purchase at time of purchase of Parcel 3:
$7.16(1) x 194,1030) = $1,389,777
Developer's payment required at time of purchase of Parcel 2:
$12 x 203,556 - $1,457,461 = $985,211
Developer's payment required at time of purchase of Parcel 3:
$12 x 194,103 - $1,389,777 = $939,459."
5. Page 44. Delete the last sentence in subsection (f) of Section 701.3 and insert in
place thereof the following sentence:
"The purchase price shall be Twelve Dollars ($12.00) per square foot
for the land within the Agency Parcel to the extent that said value
was not included in the parking bond issues."
6. Page 46. Change the words "major hotel" in the first paragraph on this page to
"hotel developer."
7. Page 46. Change the number of pages in the first paragraph of Section 800
from "forty-seven (7)" to "forty-five (45)."
8. Page 47. Change the time in Section 900 in which the Agency must execute and
deliver the Agreement to the Developer from "forty-seven (47)" days to "forty-five
(45)".
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