Resolution - 8195• RESOLUTION NO. 8195
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST
COVINA APPROVING A SECOND IMPLEMENTATION AGREEMENT
• TO THE RESTATED DISPOSITION AND DEVELOPMENT AGREE-
MENT BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF
WEST COVINA AND WATT INVESTMENT PROPERTIES, INC;
• MAKING CERTAIN FINDINGS WITH RESPECT TO THE CONSIDER-
ATION TO BE RECEIVED BY THE AGENCY PURSUANT TO SAID
AGREEMENT; AND AUTHORIZING THE EXECUTION AND IMPLE-
MENTATION OF SAID SECOND IMPLEMENTATION AGREEMENT
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 Lakes
at West Covina Development Site (the "Site") in the Project area,
pursuant to the terms and provisions of a Restated Disposition and
Development Agreement (the "Restated Agreement") entered into with
Watt Investment Properties, Inc. (the "Developer") on June 26, 1987;
and
WHEREAS, in implementation of said Restated Agreement and to pro-
vide assistance in the development of the Site, the Agency proposes to
provide financial assistance by contributing toward the payment of
debt service on the bonds heretofore issued to provide public parking
facilities for Developer Parcels 1 and 2 of the Site, by.deferring the
payment of the purchase price to be paid by Developer for Developer
Parcels 1 and 2, and by acquiring an equity interest in Developer's
cash flow from Developer Parcels 1 and 2 until the debt service con-
tributions and deferred purchase price are repaid; and
WHEREAS, in implementation of the Restated Agreement, the Agency
entered into a First Implementation Agreement with Watt Investment
Properties, Inc. on December 21, 1987 outlining a basic financial
assistance program with the recognition and anticipation that sub-
sequent agreements defining and finalizing the essential terms between
the parties will be necessary; and
WHEREAS, the Developer has submitted to the Agency a written
Second Implementation Agreement to the Restated Disposition and
Development Agreement (the "Second Implementation Agreement") to
accomplish the above described financial assistance in the development
of Developer Parcels 1 and 2; and
WHEREAS, the Agency has prepared, and the City Council has re-
viewed and considered, a summary report setting forth the cost to the
Agency of the Restated Agreement as implemented by the Second Implemen-
tation Agreement, the estimated value of the interests to be conveyed
determined at the highest uses permitted under the Redevelopment Plan,
and the deferred purchase price, and made said summary available for
public inspection in accordance with the California Community Re-
development Law; and
• WHEREAS, the summary report has been considered by Agency staff
and consultants, and the staff and consultants have satisfied this
Council that the sale and Second Implementation Agreement are
feasible; and
-2-
WHEREAS, pursuant to the California Community Redevelopment Law,
the Agency and the City Council held a joint public hearing on the
• proposed sale of Developer Parcels 1 and 2 and the Proposed Second
Implementation Agreement; and
WHEREAS, the City Council has duly considered all terms and condi-
tions of the proposed sale and believes that the development of
Developer Parcels 1 and 2 pursuant to the proposed Second Implementa-
tion Agreement is in the best interest 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; and
WHEREAS, pursuant to an Initial Study prepared by the Agency, the
City Council has determined that the proposed Second Implementation
Agreement will have no effect on the environment other than that
identified in the environmental assessment for the Restated Agreement.
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of
West Covina as follows:
1. The City Council hereby finds and determines that the con-
sideration for the sale of Developer Parcels 1 and 2 pursuant to the
Second Implementation Agreement to the Restated Disposition and De-
velopment Agreement between the Agency and 'the Developer is not less
than the fair market value in accordance with covenants and conditions
governing the sale and is not less than the estimated value determined
at the highest use permitted under the Plan for the Parcels in accord-
ance with the covenants and conditions governing such sale.
2. The City Council hereby finds and determines that the con-
sideration for the sale of Developer Parcels 1 and 2 pursuant to said
Second Implementation Agreement is necessary to effectuate the purpose
of the Redevelopment Plan.
3. The sale of the Site by the Agency to the Developer and the
Second Implementation Agreement and the Restated Agreement which estab-
lishes the terms and conditions for the sale and development are here-
by approved.
4. The Chairman of the Agency is herby authorized to execute the
Second Implementation Agreement.
5. The Executive Director of the Agency is hereby authorized to
negotiate, finalize and execute a Second Implementation Agreement as
provided in the Second Implementation Agreement, and to take all steps
and to execute all other documents and instruments necessary to imple-
ment and carry out the provisions of the Second Implementation Agree-
ment and the Restated Agreement on behalf of the Agency.
6. The City clerk shall certify to the adoption of this Resolu-
tion.
APPROVED AND ADOPTED this 13th day of June , 1988.
• a ATTEST: - or
City, Clerk
-3-
•
I HEREBY CERTIFY that the foregoing Resolution No. 8195 was
duly adopted by the City Council of the City of West Covina at a
• regular meeting thereof held on the 13th day of June
1988 by the following vote:
• AYES: Councilmember: Lewis, Bacon, Manners
NOES: Councilmembers: Tarozzi, McFadden
ABSENT: Councilmembers: None
ABSTAIN: Councilmembers: None
City C k
APPROVED AS TO FORM:
7-z 'Z.
City Attorney,,fir.
A
LAK217KJ-6/88
•