Resolution - 9252RESOLUTION NO. 9252
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WEST COVINA CONSENTING TO THE APPROVAL BY THE
REDEVELOPMENT AGENCY OF AMENDMENT NO. 2 TO THE
DISPOSITION AND DEVELOPMENT AGREEMENT BY AND
AMONG THE REDEVELOPMENT AGENCY OF THE CITY OF
WEST COVINA, VAL J. FEJTEK AND SOUTHLAND MOTORS,
INC.
WHEREAS, the Redevelopment Agency of the City of West Covina (the "Agency") is
engaged in activities necessary to carry out the Redevelopment Plan for the West Covina
Redevelopment Project; and
WHEREAS, in order to carry out and implement the Redevelopment Plan, the Agency
entered into that Disposition and Development Agreement (the "DDA") by and among the Agency,
Val J. Fejtek, ("Fejtek") and Southland Motors, Inc. ("Southland") dated May 17, 1995; and
WHEREAS, the Agency entered into that Amendment No. 1 to the Disposition and
Development Agreement (the "Amendment No. 1 ") by and among the Agency, Fejtek and Southland
dated August 15, 1995 (the DDA and Amendment No. 1 shall collectively be referred to as the
"Amended DDA"); and
WHEREAS, Fejtek is currently the owner of the site which is the subject of the Amended
DDA (the "Site"); and
WHEREAS, Southland is currently in the business of operating an automobile dealership (the
"Dealership") on the Site and has been engaged in operating the Dealership in the City of West
.Covina (the "City") since 1987; and
WHEREAS, Southland desires to continue to operate the Dealership on the Site; and
WHEREAS, Agency desires that Southland continue to operate the Dealership on the Site
because, among other things, the relocation of the Dealership from the Site and the West Covina
Redevelopment Project Area would adversely affect the employment opportunities in the Project
Area, discourage other businesses from locating or remaining in the City and the Project Area and
adversely affect the generation of additional taxes with which the community can increase and
improve the supply of low- and moderate income housing and provide an environment for the social,
economic and psychological growth and well-being of the citizens of the City; and
WHEREAS, the Agency is committed to improving the quality of life for the residents of
the City and its visitors through the creation of jobs, retention of jobs, elimination of blight, and the
development and redevelopment of projects in the City; in furtherance of these objectives and
pursuant to the Amended DDA, the Agency desires to (i) purchase the Site from Fejtek as well as
the improvements located thereon, (ii) lease back the Site to Fejtek pursuant to the lease which is
an attachment to the Amended DDA (the "Lease), (iii) provide Fejtek with an option to reacquire
the Site and (iv) have the Site subleased to Southland; and
J
WHEREAS, the Agency's purchase of the Site from Fejtek (the "Conveyance"), lease back
of the Site to Fejtek and sublease of the Site to Southland are in the vital and best interests of the
City and the health, safety, morals and .welfare of its residents and in accordance with the public
purposes and provisions of applicable state and local laws and requirements under which the
redevelopment of the West Covina Redevelopment Project has been undertaken; and
WHEREAS, the Agency has determined, therefor, that it is in its best interest to encourage
and support the redevelopment of the Site so as to provide job retention, employment expansion and
re -investment and new investment as benefits to the community of the City; and
WHEREAS, the City Council has duly considered all terms and conditions of the Amended
DDA and has duly consented to the Agency's approval of the Amended DDA; and
PUBL:29441_113761 B2740.24
WHEREAS, as one of the conditions precedent to the close of escrow for the Conveyance
under the Amended DDA, Agency shall have obtained the Agency Loan (as defined in the Amended
DDA) on terms reasonably acceptable to Agency; and
WHEREAS, it is now necessary and the Agency, Fejtek and Southland desire that certain
terms and conditions of the escrow for the Conveyance be amended so that escrow can close on
September 15, 1995; and
ofWHEREAS, in order to carry out and implement the Redevelopment Plan and make the
amendments to the Amended DDA as set forth above, the Agency proposes to enter into that certain
Amendment No. 2 to the Disposition and Development Agreement (the "Amendment No. 2 to the
DDA") by and among the Agency, Fejtek and Southland; and
-l�
WHEREAS, the City Council has duly considered all terms and conditions of the
Amendment No. 2 to the DDA.
NOW, THEREFORE, be it resolved by the City Council of the City of West Covina as
follows:
Section 1. The City Council finds and determines that, based upon substantial evidence
provided in the record before it; the redevelopment of the Site pursuant to Amendment No. 2 to the
DDA will assist in the elimination of blight.
Section 2. The City Council consents to and approves the execution by the Agency of
Amendment No. 2 to the DDA.
Section 3. The City Clerk shall place on file in the Office of the City Clerk a copy of
Amendment No. 2 to the DDA when executed by the Agency.
Section 4. The City Clerk shall certify to the adoption of this Resolution.
PASSED, APPROVED AND ADOPTED this 14th day of September , 1995.
CITY OF WEST COVINA
ATTEST:
DuL°,
C ty Clerk "
PUBL:29441_1 1376 1 B2740.24 2
I HEREBY CERTIFY, that the foregoing Resolution No. 9252 was duly adopted by
the City Council of the City of West Covina at a regular meeting thereof, held on the 14th day of
September , 1995 by the following vote:
AYES: Council Members Herfert. Touhey. McFadden
doNOES: Council Members Manners, Wong
ABSENT: Council Members None
ABSTAIN: Council Members None
0
CITY OF WEST COVINA
By: u
City Clerk
APPROVED AS TO FORM:
&,naAf- h 6111' �VcCVl
City torney
eueL:29441_1 3761112740.24 . 3