Resolution - 9324RESOLUTION NO. 9324
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WEST COVINA APPROVING AND AUTHORIZING THE
EXECUTION OF THE AMENDED AND RESTATED DISPOSITION,
DEVELOPMENT AND OWNER PARTICIPATION AGREEMENT
BY AND BETWEEN THE REDEVELOPMENT AGENCY AND
HASSEN IMPORTS PARTNERSHIP AND WEST COVINA
MOTORS, INC., AND MAKING CERTAIN FINDINGS IN
CONNECTION THEREWITH
WHEREAS, the City Council of the City of West Covina (the "City Council") .approved
and adopted the Redevelopment Plan for the West Covina Redevelopment Project (the
"Redevelopment Plan") by the merger of the Central Business District and Eastland
Redevelopment Plans on December 21, 1993 by Ordinance No. 1928; and
WHEREAS, the City Council did duly pass and approve Ordinance No. 1951 on
December 20, 1994 and did thereby amend the Redevelopment Plan; and
WHEREAS, the Redevelopment Agency for the City of West Covina (the "'Agency") is
authorized and empowered by the Community Redevelopment Law, California Health and Safety
Code Sections 33000, et seq. (the "CRL"), to enter into agreements for the acquisition,
disposition and development of real property and otherwise to assist in the redevelopment of real
property within a redevelopment project area in conformity with a redevelopment plan adopted
for such area, to acquire real and personal property in redevelopment project areas, to receive
consideration for the provision by the Agency of redevelopment assistance, to make and execute
contracts and other instruments necessary or convenient to the exercise of its powers, and to
incur indebtedness to finance or refinance redevelopment projects; and
WHEREAS, on or about July 20, 1983, the Agency entered into a Disposition and
Development Agreement ("DDA No. V) with Hassen Imports, Inc., a California corporation (the
"Previous Developer") which provides generally for, among other things, (i) the sale of certain
real property ("Parcel No. 1") to the Previous.Developer, (ii) the development and operation of a
new car franchise on Lot A of Parcel No. 1, and (iii) the improvement of Lot B of Parcel No. 1
for parking purposes; and
WHEREAS, on or about September 20, 1984, the Agency and the Previous Developer
entered into the First Implementation Agreement to DDA No. 1, pursuant to which the parties
agreed to certain revisions to DDA No. I including the extension of the time for completion of
the improvements required under DDA No. 1 and to the revision of the use restrictions in DDA
No. 1; and
WHEREAS, pursuant to DDA No. 1 the Previous Developer constructed the required
improvements and operated a new and used Mitsubishi automobile franchise (the "Mitsubishi
Dealership") thereon, however, no improvements were made to Lot B of Parcel No. 1, as
required under DDA No. 1; and
WHEREAS, on or about July 28, 1986, the Agency, the Previous Developer and the
Hassen Imports Partnership (the "Developer") entered into the Second Implementation Agreement
to Disposition and Development Agreement, pursuant to which the Previous Developer assigned
to Developer its rights and obligations with respect to DDA No. I and the Mitsubishi Dealership;
10 and
WHEREAS, on or about November 7, 1987, the Agency and the Developer entered into
a Disposition and Development Agreement ("DDA No. 2"), pursuant to which the Agency agreed
to utilize its best efforts to, acquire that certain real property commonly known as the "La Ronde
Property" and the Developer agreed to, among other things, purchase the La Ronde Property
from the Agency, to expand the Mitsubishi Dealership onto the La Ronde Property, and to
complete the development of Lot B of Parcel 1 as required under DDA No. 1; and
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WHEREAS, on or about May 28, 1991, the Mitsubishi Dealership operating on Lot A of
Parcel No. 1 closed for business; and
WHEREAS, on or about May 4, 1993, the Agency, the Developer and West Covina
Motors, Inc. (the "Operator") entered into an Owner Participation Agreement (the "OPA") which
provides for, among other things, the development of a new and used Dodge automobile
franchise (the "Dodge Dealership") on Lot A of Parcel 1 by Developer and the operation of the
Dodge Dealership thereon by the Operator for a period of not less than fifteen (15) years; and
WHEREAS, pursuant to the OPA the Agency loaned funds to the Developer for the
development of the Dodge Dealership (the 'Participant Loan"); and
WHEREAS, on or about November 22, 1994 the Agency acquired fee title to the
La Ronde Property which was improved with an apartment building; and
WHEREAS, in light of the numerous agreements entered into by the parties, the Agency,
the Developer and the Operator desire to enter into the Amended and Restated Disposition,
Development and Owner Participation Agreement (the "Agreement") in order to consolidate and
restate the rights and obligations of the parties pursuant to DDA No. 1, as amended, DDA No. 2
and the OPA, as amended, to supersede such agreements, and to amend certain of those rights
and obligations as agreed to by the parties; and
WHEREAS, the parties further desire to enter into the Agreement to provide for the
disposition of the La Ronde Property to the Developer and for the expansion of the Dodge
Dealership on the La Ronde Property and Lot B of Parcel 1 and onto certain adjacent properties
all of which are referenced to collectively as the "Site" and the further. expansion of the Dodge .
Dealership or the location of a new automobile franchise on the Site; and
WHEREAS, on September 5, 1995 the Agency adopted the Relocation Plan for the La
Ronde Apartments Project (the 'Plan") and all of the former occupants of the La Ronde Property
have been relocated pursuant to the Plan; and
WHEREAS, on February 8, 1987, the City Council did duly pass Resolution No. 8151
and the Agency did duly pass Resolution No. 373, and did thereby adopt a negative declaration
with respect to the removal of the La Ronde Apartments Project and the development of the
Phase I Improvements on the Site in compliance with the California Environmental Quality Act,
Public Resources Code Sections 21000, et seq. (CEQA") and the State CEQA Guidelines; and
WHEREAS, there are no new significant impacts which were not considered in the
previously adopted negative declaration and no substantial changes have occurred which would
require revisions to the previously adopted negative declaration; and
WHEREAS, the Agreement requires the Developer to comply with all applicable laws
prior to the development of the Phase II Improvements, including CEQA, and the appropriate
environmental documentation with respect to the Phase II Improvements will be prepared and
considered prior to their construction; and
WHEREAS, pursuant to Section 33433 of the Community Redevelopment Law
(California Health and Safety Code Section 33000, et seq.), the Agency is authorized, with the
approval of the City Council after a duly noticed public hearing, to sell or lease the La Ronde
Property for development pursuant to the Redevelopment Plan upon a determination by the City
Council that the sale of the property will assist in the elimination of blight and that the
consideration for such sale is not less that either the fair market value or fair reuse value of the
La Ronde Property in accordance with the covenants and conditions governing the sale and the
development costs required thereof; and
WHEREAS, a joint public hearing of the Agency and City Council on the proposed
Agreement was duly noticed in accordance with the requirements of CRL Section 33433; and
WHEREAS, the proposed Agreement, and a summary report meeting the requirements of
CRL Section 33433, were available for public inspection consistent with the requirements of CRL
Section 33433; and
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WHEREAS, on May 21, 1996, the Agency and City Council held a joint public hearing
on the proposed Agreement, at which time the Agency reviewed and evaluated all of the
information, testimony, and evidence presented during the joint public hearing; and
WHEREAS, all actions required by all applicable law with respect to the proposed
Agreement have been taken in an appropriate and timely manner; and
WHEREAS, the City Council has reviewed the summary required pursuant to CRL
ob Section 33433 and evaluated other information provided to it pertaining to the findings required
pursuant to CRL Section 33433; and
WHEREAS, the La Ronde Property is located within an area of the West Covina
Redevelopment Project (the "Project Area") which was found by the City Council, in its adoption
of the Redevelopment Plan, to be blighted as a result of physical deterioration of structures and
lack of maintenance of property, as well as other indicia of blight; and
WHEREAS, the disposition of the La Ronde Property pursuant to the Agreement will
assist in the elimination of blight by the removal of substandard housing and the relocation of the
former occupants and the expansion of the Dodge Dealership resulting in the improvement of
economic conditions in the Project Area; and
WHEREAS, the disposition and development of the La Ronde Property is specifically
identified as a proposed project in the AB 1290 Redevelopment and Housing Implementation Plan
which was adopted by the Agency pursuant to Resolution No. 469 on December 6, 1994 (the
"Implementation Plan"), and furthers the goals of the Agency set forth in the Implementation
Plan as it will eliminate and prevent the spread of blight, encourage private sector investment and
promote the economic well-being of the Project Area by encouraging diversification of the
commercial building; and
WHEREAS, the City Council has duly considered all terms and conditions of the
proposed Agreement and believes that the redevelopment of the Site pursuant thereto is in the
best interests of the City of West Covina and the health, safety, and welfare of its residents, and
in accord with the public purposes and provisions of applicable state and local laws and
requirements.
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 consideration for the Agency's disposition of the
La Ronde Property pursuant to the terms and conditions of the Agreement is not less than the fair
reuse value in accordance with covenants and conditions governing the sale, and the development
costs required under the Agreement.
Section 2. The City Council hereby finds and determines that the disposition of the
La Ronde Property pursuant to the Agreement will eliminate blight within the Project Area by
providing for the proper reuse and redevelopment of a portion of the Project Area which was
declared blighted for the reasons described above.
Section 3. The City Council hereby finds and determines that with respect to the
development of the Phase I Improvements no further activity under CEQA is required as there
are no new significant impacts which were not considered in the previously adopted negative
declaration and no substantial changes have occurred which would require revisions to the
previously adopted negative declaration and that with respect to the development of the Phase II
Improvements, all required environmental documentation will be completed prior to the
. commencement of construction of the Phase II Improvements as set forth in the Agreement.
rI Section 4. The City Council hereby consents to the approval of the Agreement by the
Agency with such minor, non -substantive revisions which are approved by Agency Counsel . A
copy of the Agreement when executed shall be placed on file in the office of the City Clerk.
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Section 5. The City Clerk shall certify to the adoption of this Resolution.
The foregoing Resolution is hereby approved this 211tday of May , 1996.
ATTEST:
City -Clerk:
APPROVED AS TO FORM:
@b'oj' '` , (dv�,
City -Attorney
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the City
Council of the City of West Covina at a regular meeting hereof, held on the215t day of
May , 1996 by the following vote, to wit:
AYES: Council Members: Herfert, McFadden, Wong, Touhey
NOES Council Members: None
ABSENT: Council Members: Manners
ABSTAIN: Council Members: None
CITY COUNCIL OF THE CITY OF WEST
COVINA
By.
City Clerk
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