Loading...
HomeMy WebLinkAboutReso 72-2001THE CITY RESOLUTION NO. 72-2001 COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OFI CALIFORNIA A RESOLUTION APPROVING AN AGREEMENT WITH MYERS DEVELOPMENT COMPANY RELATED TO ISSUANCE OF PERMITS FOR THE 70 SINGLE-FAMILY PAIRED RESIDENTIAL UNITS AND IMPLEMENTATION OF EXISTING DEVELO?MENT OBLIGATIONS REGARDING THE SET-ASIDE LETTER, DEDICATION OF THE RECREATION PARCEL AND RESTORATION OF THE POINT AREA NOW, THEREFORE, BE IT FURTHER RESOLVED by the City CoUncil of the City of South San Francisco that the City Council does hereby approve the agreement with Myers Development Company attached hereto as Exhibit A. I hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of South San Francisco at a Special Meeting held on the 6th day of August 2001, by the following vote: AYES: NOES: ABSTAIN: Councilmembers Pedro Gonzalez, Karyl Matsumoto and John R. Penna, Mayor Pro Tem Eugene R. Mullin and Mayor Joseph A. Fernel{es None. None. ABSENT: None. ATTEST: City Clerk EXHIBIT A AGREEMENT This Agreement is entered into by and between The City of South San Francisco, a municipal corporation ("City") and Myers Peninsula Company, LLC, a Delaware limited liability company ("Owner"). RECITALS A. Owner is the owner of that certain real property commonly referred to as the Final Terrabay Project located in the City of South San Francisco, County of San Ma!eo, State of California, which is subject to a Vesting Tentative Map approved by the City. The Final Terrabay Project contains entitlements on certain real property providing for the development of seventy (70) lots upon which thirty-five (35) paired housing units can be constrUcted for a total of seventy (70) dwelling units identified on the Tentative Vesting Map as Lots B, C, D and E ("Residential Property"), on other real property for the development of one hundred twelve (112) condominium units identified on the Vesting Tentative Map as Lot A ("Condominium Parcel"), and on other separate real property for the development of an office building identified on the Vesting Tentative Map as Lot F ("Commercial Parcel") B. Owner desires to obtain a rough grading permit with respect to the Residential Property, and defer development of the Condominium Parcel and Commercial Parcel, and City desires to issue said rough grading permit in accordance with the terms, provisions, and agreements hereinafter set forth. AGREEMENTS NOW, THEREFORE, in consideration of the mutual covenants and conditions !herein contained, the parties agree as follows: 1. City will issue the rough grading permit and thereafter final grading and construction permits for the Residential Property, without requiring the commencement of development on the Condominium and Commercial Parcels or a contract for acquisition or the acquisition of the BMR site(s), subject to the conditions, provisions, and terms in this Agreement, and the conditions of approval for the Residential Property. Owner, pursuant to the Restated and Amended Development Agreement dated January 11, 2001 between the parties as subsequently amended ("Restated Agreement"), is to provide Five Million Dollars ($5,000,000) for Traffic Improvements as set forth therein. Prior to receiving the rough grading permit for the Residential Property, Owner shall provide a Set Aside Lette~ to the City for One Million One Hundred Thousand Dollars ($1,100,000) toward the Traffic Improvement obligation. Owner shall pay the remaining Three Million Nine Hundred ThOusand Dollars ($3,900,000) by providing a Set Aside Letter for $1.1 million at lhe time of and as a condition of the issuance of the rough grading permit for the Condominium Parcel and a Set Aside Letter for $2.8 million at the time of and as a condition of 884920.2 the issuance of the rough grading permit for the Commercial Parcel. In addition, Owner shall pay interest on the outstanding principal balance as it exists from time to time from August 1, 2001, at an interest rate equal to the rate of return on the San Mateo County Transportation Authority's investments, to the extent of and to compensate the City for its interest incurred as a result of the City's drawing down such balance from the San Mateo County TranspOrtation Authority. The $3.9 million principal balance remaining after providing the $1.1 million Set Aside Letter with respect to the Residential Property, together with the interest Obligation, shall be secured by a Deed of Trust in favor of the City ("City' s Deed of Trust") on the Final Terrabay Project. Said City's Deed of Trust shall be recorded within five (5) days of recOrdation of the deed of trust and other security instruments securing the loan primarily for the Site work on the Residential Property (collectively "Loan Deed of Trust"). The Loan Deed of Trust shall not exceed fifteen million dollars ($15,000,000) and is payable interest only and subject to a term of 12 months with two (2) six (6) month options which may be exercised by Owner. Upon approval of the Final Map for the Final Terrabay Project, the lien of the City's Deed of Trust will be released with respect to the Residential Property, the Preservation Parcel identified as Lot H on the Vesting Tentative Map, and all other parcels other than the Condominium Parcel and the Commercial Parcel and the City' s Deed of Trust shall be primary to any other security interests on the Condominium and Commercial parcels, except for the Loan Deed of Trust as referenced in this Agreement. The City's Deed of Trust shall be secured in the following manner: mo The City's Deed of Trust shall become primary upon Owner's payment of the Loan Deed of Trust referenced in this Agreement. B° In the event the Loan Deed of Trust has not been paid off by October 15, 2002, Owner shall pay to City one million ($1,000,000) of the proceeds from the sale of the Preservation Parcel to any purchaser of the parcel. Such proceeds when and if received, shall be retained in escrow by the title company in an interest bearing account and the proceeds plus interest accrued thereon released to City on October 16, 2002. In the event the Loan Deed of Trust is paid in full by October 15, 2002, all proceeds from the sale of the Preservation Parcel, plus any interest accrued, shall be paid to Owner. Any monies received by City from the proceeds of said sale shall be credited against Owner's obligations for Traffic Improvements next due. C° City's Deed of Trust is due and payable on December 31, 2004. In the event Owner has failed to provide all the Set Aside Letters or amounts due as provided in this Agreement, City is entitled to foreclose on its interest in the property and sell the property. At such time, Owner shall be entitled to pay any remaining amounts due the City for the obligations subject to this Agreement in lieu of City selling the property. However, if Owner fails to pay the full amount due the City within 30 days of City giving 884920. 22 Owner notice of its intent to foreclose, City shall be entitled to proceed with the sale of the property and Owner hereby waives any and all objections to City's foreclosure. The lien of the City' s Deed of Trust shall be released from the Residential Parcel, Condominium Parcel, and the Commercial Parcel at such time as the City is provided the Set Aside Letter applicable to such parcel, plus all accrued interest due at such time. The City's Deed of Trust will contain the release provisions. 3. The reshaping/restoration of the "Point" shall be commenced and completed concurrently with the grading of the Residential Property in accordance with the provisions of any grading permit issued for the Residential Property. 4. Owner shall dedicate the Recreational Parcel, identified as Lot I on the Vesting Tentative Map, to the City promptly after recordation of the Final Map for the Final Terrabay Project. 5. Subject to the conditions set forth below, Owner shall rough grade a pad for the recreation center facilities on the Recreational Parcel and rough grade a road to such facilities at a maximum cost to Owner of Three Hundred Thousand Dollars ($300,000). Such grading will be performed at such time as the City determines an organization is prepared to construct facilities and provides sufficient architectural plans to allow Owner to complete rough grading plans for the Recreational Parcel ("Recreational Facility Readiness") and Owner has obtained or is obtaining a grading permit or is performing the grading of the Condominium Parcel or the Commercial Parcel; provided, however, that the aforementioned rough grading obligation with respect to the Recreational Parcel shall not prevent or delay the issuance of a grading permit or grading of either the Condominium Parcel or the Commercial Parcel in the event they proceed prior to the time there is Recreational Facility Readiness. In the event that the grading of both the Condominium Parcel and Commercial Parcel have occurred prior to Recreational Facility Readiness the rough grading thereof will commence promptly after Recreational Facility Readiness and shall be diligently pursued through completion. Unless otherwise agreed to between Owner and City, if by February 1, 2007, there is no Recreational Facility Readiness, Owner shall be relieved of the obligation to grade the Recreational Parcel as provided in this Agreement. 6. This Agreement will be binding upon and inure to the heirs, successors, and assigns of Owner. IN WITNESS WHEREOF, the parties have executed this Agreement this __ August, 2001. day of CITY OF SOUTH SAN FRANCISCO ATTEST: City Clerk By Michael A. Wilson, City Manager 884920. 23 APPROVED AS TO FORM Steven T. Mattas, City Attorney MYERS PENINSULA COMPANY, L.L.C. By Jack Myers, President ATTEST: By: APPROVED AS TO FORM Counsel for Myers Peninsula Company J:\WPD'uMNRSW~405\035XAGREELPHASE3'~AGREE_ROUGH_GRADE_AUG6.DOC 884920. 24