Resolution - 9542a
RESOLUTION NO. 9542
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST
COVINA AUTHORIZING THE EXECUTION OF THE FIRST
AMENDMENT TO LEASE/DISPOSITION AND DEVELOPMENT
' AGREEMENT BY AND BETWEEN THE REDEVELOPMENT
AGENCY AND HOFFMAN ENTERPRISES, LTD. AND MAKING
CERTAIN FINDINGS IN CONNECTION THEREWITH
WHEREAS, the Redevelopment Agency of the City of West Covina (the
"Agency") is engaged in activities necessary to carry out and implement the Redevelopment Plan
for the West Covina Redevelopment Project (the "Project"); and
WHEREAS, in order to carry out and implement such Redevelopment Plan the
Agency has entered into that certain Lease/Disposition and Development Agreement (the
"Agreement") with Hoffman Enterprises, Ltd. (the "Developer"), pursuant to which the Agency
has leased certain real property (the "Property") to the Developer, and the Developer has
renovated the improvements thereon and operated a new Saturn automobile dealership in such
improvements; and
WHEREAS, the lease of the Property pursuant to the Agreement expired by its
terms on February 28, 1998, and the Agency is currently negotiating with Harry Hill Volkswagen,
Inc. with respect to the possible reconveyance of the Property to Harry Hill Volkswagen, Inc.; and
. WHEREAS, the Developer does not intend to exercise the option to purchase the
Property granted pursuant to the Agreement; and
WHEREAS, the Agency and the Developer desire to enter into a First Amendment
to Lease/Disposition and Development Agreement (the "Amendment") to extend the term of the
lease of the Property on a month -to -month basis while the Agency negotiates the terms of the
conveyance of the Property, to terminate the option, to modify the sales tax covenant set forth
therein, and to modify the terms of repayment of the "Upgrade Promissory Note" which the
Developer has executed in favor of the Agency; 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 of the City of West Covina (the "City Council") after a duly noticed
public hearing, to sell or lease the 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 than either the fair market value or fair
reuse value of the 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
Amendment was duly noticed in accordance with the requirements of Health and Safety Code
Section 33433; and
WHEREAS, the proposed Amendment, and a summary report meeting the
requirements of Health and Safety Code Section 33433, were available for public inspection
consistent with the requirements of Health and Safety Code Section 33433; and
WHEREAS, on March 3, 1998, the Agency and City Council held a joint public
hearing on the proposed Amendment, 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
Amendment have been taken in an appropriate and timely manner; and
WHEREAS, the City Council has reviewed the summary required pursuant to
Health and Safety Code Section 33433 and evaluated other information provided to it pertaining to
the findings required pursuant to Health and Safety Code Section 33433; and
5 5695 8.2\1goetz\22740. 0011
02/26/98
WHEREAS, the Property is located within an area of the West Covina
Redevelopment Project which was found by the City Council, in its adoption of the Redevelopment
Plan for the Central Business District Redevelopment Project as amended on December 20, 1984
per Ordinance No. 1657, 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 Agreement, as amended by the Amendment, will assist in the
elimination of blight by continuous operation of an auto dealership in the center of the Auto Plaza,
and will be of benefit to the community by increasing commercial and economic activity in the
Project Area, generating employment opportunities and preventing blight from recurring on the
Property; and
WHEREAS, the City Council has duly considered all terms and conditions of the
proposed Amendment and believes that the redevelopment of the Property 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 that the Amendment is exempt from the California
Environmental Quality Act pursuant to Section 15061(b) of the CEQA Guidelines, and directs the
City Clerk to file a Notice of Exemption within five days hereof.
Section 2. 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 Property
pursuant to the terms and conditions of the Agreement, as amended by the Amendment, 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, as amended by the Amendment.
Section 3. The City Council hereby finds and determines that the disposition of the
Property pursuant to the Agreement, as amended by the Amendment, 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 4. The City Council hereby finds and determines that the Agreement, as
amended by the Amendment, is consistent with the Implementation Plan adopted for the Project.
Section 5. The City Council hereby authorizes the Agency to enter into the
Amendment. A copy of the Amendment when executed shall be placed on file in the office of the
Agency Secretary/City Clerk.
Section 6. The City Clerk shall certify to the adoption of this Resolution.
The foregoing Resolution is hereby approved this 3rd day of March, 1998.
ATTEST:,
City Clerk -
APPROVED AS TO FORM:
t- ^1ak� v%—
Rutan & Tucker, LLP
City Attorney
556958.2Ugoetz\22740.0011
02/27/98
•
•
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 the 3rd day of March, 1998,
by the following vote, to wit:
AYES:
NOES
ABSENT:
ABSTAIN
Council Members: Herfert, Howard, Melendez, Touhey, Wong
Council Members: Hone
Council Members: None
Council Members: None
CITY COUNCIL OF THE CITY OF WEST
COVINA
V By:
City Clerk
556958.2\Tgoe[z\22740.0011
02/26/98