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Resolution - 8883RESOLUTION NO. 8883 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA.APPROVING THE SECOND AMENDMENT TO THE OWNER PARTICIPATION AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF WEST COVINA AND ROBERT AND BARBARA BOZZANI, A LEASE BETWEEN THE AGENCY AND ROBERT AND BARBARA BOZZANI, A SUBLEASE WITH WEST COVINA • TOYOTA, AND RELATED DOCUMENTS FOR THE REDEVELOPMENT OF PROPERTY WITHIN THE CENTRAL BUSINESS DISTRICT REDEVELOPMENT PROJECT AREA LOCATED AT 1800 AND 1820 EAST GARVEY AVE. THE CITY COUNCIL OF THE CITY OF WEST COVINA DOES HEREBY RESOLVE AS FOLLOWS: Section 1. The City Council of the City of West Covina hereby finds, determines and declares that: A. The project proposed by West Covina Toyota, Inc. ("Toyota") pertains to property located at the 1800 and 1820 East Garvey Avenue South in the City of West Covina within the Central Business District Redevelopment Project Area ("Site") which is owned by and in part leased to Robert Bozzani and Barbara Bozzani ("Bozzani") and is subject to an existing Owner Participation Agreement, dated November 22, 1987, as amended on June 24, 1991. B. The assistance provided to Bozzani and West Covina Toyota pursuant to the Second Amendment and related agreements will (1) contribute to the elimination of blight on the Site and in the vicinity of the Site, (2) contribute to economic revitalization and generation of employment in the area by strengthening retail auto sales in the Project Area and in the West Covina Auto Plaza and (3) prevent generation of new blight by keeping the Site, which contains a one -use building, as a fully utilized and functioning automobile dealership. The development and the relocation of the Toyota dealership to the Site will also substantially contribute to the West Covina Auto Plaza developed by the Agency in the area surrounding and including the Site. C. Pursuant to the provisions of Health & Safety Code Sections 33430, 33431 and 33433, the Agency duly noticed and held a joint public hearing before the Board of Directors of the Redevelopment Agency of the City of West Covina and the City Council of the City of West Covina concerning the approval of the proposed Second Amendment to the Owner Participation Agreement With Bozzani and Toyota, the Lease between the Agency and Bozzani and the Sublease between the Agency and Toyota and the related documents described therein. D. Pursuant to Health & Safety Code Section 33433, the Agency directed and has prepared a comprehensive report summarizing and analyzing the proposed Second Amendment, Lease and Sublease and which report specifically contains the information required by Section 33433, and has been prepared within the time limit set forth therein. E. The sublease of the Site by the Agency to Toyota, as proposed by the Second Amendment and the Lease, may be 24375.3 at less than fair market rental value based on Agency appraisals and analysis. Therefore, the City Council specifically finds in accordance with the authority of Health & Safety Code Section 33433 that said difference is necessary to effectuate.the provisions of the West Covina Central Business District Redevelopment Project, and the difference in rental value is necessary to allow development to come to the City and increase employment opportunities within the City as described • in this resolution and the Second Amendment. F. The Agency and the City shall recoup the difference in sublease rental payments and fair market rental value with increased tax increment revenues and sales tax revenues due to and directly attributable to this agreement. G. The Agency is specifically authorized by Health & Safety Code Sections 33430, 33431 and 33433, and other applicable law, to enter into the Second Amendment, the Lease and Sublease. H. Completing the redevelopment on the Site pursuant to this Second Amendment is in the vital and best interest of the City of West Covina, California (the "City") and the health, safety, and welfare of its residents, and in accord with the public purposes and provisions of applicable state and local laws. I. The Second Amendment, the Lease and the Sublease pertain to and affect the ability of all parties to finance and carry out their statutory purposes and to accomplish the goals of the Plan and is intended to be a contract within the meaning of Government Code Section 53511. Section 2. A. As part of the adoption of the amendment to the West Covina Central Business District Redevelopment Plan by the City Council on July 7, 1980 (Ordinance No. 1481), the City Council and the Redevelopment Agency approved an Environmental Impact Report for the West Covina Central Business District Redevelopment Project which addressed the environmental concerns for development of the property along East Garvey Avenue South within the amended area within which the proposed project is located. Moreover, in connection with the approval of the Owner Participation Agreement between the Agency and Bozzani for the Site in 1987 a Negative Declaration was prepared and approved for the project. Since the preparation and certification of that Environmental Impact Report and the Negative Declaration (hereafter collectively "EIR"), subsequent changes have not been proposed in the subject project or in the amendment to the Redevelopment Plan which will require important revisions of the previous EIR due to the involvement of new significant environmental impacts which were not considered in the previous EIR. Additionally, substantial changes have not occurred with respect to the circumstances under which the Redevelopment Plan Amendment and the project have been undertaken which would require important revisions in the previous EIR due to the involvement of significant environmental impacts not covered in the previous EIR. Finally, no new information of substantial importance to the amended area or the project and the Environmental Impact Report prepared for the amended area and the Negative Declaration prepared for the project has become available. Moreover, the mitigation measures proposed as part of the Environmental Impact Report for the Amended Redevelopment Plan have been included, where applicable, in the project, and such mitigation measures are feasible and further mitigation measures are not required to address concerns raised in the Environmental Impact Report for the Amended Redevelopment Plan. Therefore, pursuant to the provisions of the California 24375.3 - 2 - • • Environmental Quality Act ("CEQA") and, specifically, 15162 and 15180 of Title 14 of the California Code of Regulations, a subsequent Environmental Impact Report subject project is not required. Sections for the B. The Project is exempt from the provisions of CEQA as a Class 1 and Class 2 Categorical Exemption pursuant to Sections 15301 and 15302 of Title 14 of the California Code of Regulations. The Project involves only minor alterations to the existing facilities consisting of interior and exterior alterations involving such items as interior partitions, plumbing and electrical conveyances, additions of less than 10,000 square feet and minor additions and copy changes on signage. Section 3. The City Council of the City of West Covina hereby approves that certain Second Amendment to the Owner Participation Agreement Between the Redevelopment Agency of the City of West Covina, Robert Bozzani and Barbara Bozzani, and West Covina Toyota, Inc. dated as of August 18, 1992, the Lease between the Agency and Robert Bozzani and Barbara Bozzani, dated August 18, 1992, and the Sublease between the Agency and West Covina Toyota, Inc., dated August 18, 1992 and authorizes the Chairperson of the Agency to execute said Second Amendment, the Lease and the Sublease for and on behalf of the Agency in substantially the form attached hereto as Exhibits A, B, and C. Section 4. The City Clerk shall certify to the adoption of this Resolution. PASSED, APPROVED AND ADOPTED this 18th day of August 1992. MAYOR ATTEST: `---,CITY CL I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the City Council of the City of West Covina at a regular meeting thereof, held on the 18th day of August , 1992 , by the following vote of the Council: AYES: COUNCILMEMBERS NOES: COUNCILMEMBERS ABSENT: COUNCILMEMBERS ABSTAIN: COUNCILMEMBERS APPROVED AS TO FORM: • Manners, McFadden, Wong Jennings Herfert V � r CITY CLE 24375.3 - 3 -