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HomeMy WebLinkAbout2004-03-24 e-packetAGENDA REDEVELOPMENT AGENCY CITY OF SOUTH SAN FRANCISCO REGULAR MEETING MUNICIPAL SERVICE BUILDING COMMUNITY ROOM MARCH 24, 2004 7:00 P.M. PEOPLE OF SOUTH SAN FRANCISCO You are invited to offer your suggestions. In order that you may know our method of conducting Agency business, we proceed as follows: The regular meetings of the Redevelopment Agency are held on the second and fourth Wednesday of each month at 7:00 p.m. in the Municipal Services Building, Community Room, 33 Arroyo Drive, South San Francisco, California. Public Comment: For those wishing to address the Board on any Agenda or non-Agendized item, please complete a Speaker Card located at the entrance to the Community Room and submit it to the Clerk. Please be sure to indicate the Agenda Item # you wish to address or the topic of your public comment. California law prevents Redevelopment Agency from taking action on any item not on the Agenda (except in emergency circumstances). Your question or problem may be referred to staff for investigation and/or action where appropriate or the matter may be placed on a future .Agenda for more comprehensive action or a report. When your name is called, please come to the podium, state your name and address for the Minutes. COMMENTS ARE GENERALLY LIMITED TO THREE (3) MINUTES PER SPEAKER. Thank you for your cooperation. The Clerk will read successively the items of business appearing on the Agenda. As she completes reading an item, it will be ready for Board action. RAYMOND L. GREEN Vice Chair RICHARD A. GARBARINO, SR. Boardmember RICHARD BATTAGLIA Investment Officer MICHAEL A. WILSON Executive Director KARYL MATSUMOTO Chair JOSEPH A. FERNEKES Boardmember PEDRO GONZALEZ Boardmember SYLVIA M. PAYNE Clerk STEVEN T. MATTAS Counsel PLEASE TURN OFF CELL PHONES AND PAGERS HEARING ASSISTANCE EQUIPMENT IS AVAILABLE FOR USE BY THE HEARING-IMPAIRED AT REDEVELOPMENT AGENCY MEETINGS CALL TO ORDER ROLL CALL AGENDA REVIEW PUBLIC COMMENTS CONSENT CALENDAR 1. Motion to approve the minutes of March 10, 2004 2. Motion to confirm expense claims of March 24, 2004 ADMINISTRATIVE BUSINESS 3. Resolution approving a revised purchase and sale agreement with Three Sisters Ranch Enterprises, LLC, related to the property located at 480 North Canal Street CLOSED SESSION 4. Pursuant to Government Code Section 54956.8 real property negotiations related to 480 North Canal Street, 820 Tennis Drive and SF-PUC property located on Mission Road (APNs: 093-312-050/060); Agency Negotiator: Redevelopment Agency Assistant Director Van Duyn ADJOURNMENT REGULAR REDEVELOPMENT AGENCY MEETING MARCH 24, 2004 AGENDA PAGE 2 Redevelopment Agency Staff Report #' DATE: TO: FROM: SUBJECT: March 24, 2004 Redevelopment Agency Board Marty Van Duyn, Assistant Executive Director RESOLUTION APPROVING A REVISED PURCHASE AND SALE AGREEMENT BETWEEN THE SOUTH SAN FRANCISCO REDEVELOPMENT AGENCY AND THREE SISTERS RANCH ENTERPRISES, LLC RELATED TO THE PROPERTY LOCATED AT 480 NO. CANAL STREET RECOMMENDATION: It is recommended that the Redevelopment Agency Board approve the attached Resolution authorizing the Executive Director of the Agency to enter into a Purchase and Sale Agreement for the acquisition of property and improvements located at 480 North Canal Street in the amount of $5 million, and an amendment to the 2003-2004 budget designating the use of Downtown/Central Bond funds to complete the purchase. BACKGROUND/DISCUSSION: In November of 2003 the Redevelopment Agency Board approved a resolution authorizing the Executive Director to enter into a Purchase and Sale Agreement for the acquisition of this property for the then appraised amount of $3.65 million. The intent of the purchase is to retain a location for the replacement of Central Fire Station. Since November, the staff has been negotiating with the property owner and leasehold interest in order to secure a deal on the site consistent with the appraised value. This negotiation was complicated by a competing offer on the property from a development interest that proposed a purchase price of $5 million. The staff contracted for another appraisal of the property which included consideration of the proposed $5 million contract offer and a re-assessment of values based on the current market. The previous appraisal was conducted in December 2002. The new appraisal, dated February 19, 2004, indicates an "as is" fee simple value of $3.65 million and a leased fee interest value of $3.75 million. Staff Report Subject: Approve revised Purchase and Sale Agreement between South San Francisco Redevelopment Agency and Three Sisters Ranch Enterprises, LLC related to property at 480 No. Canal Street Page 2 The staffhas contacted the owner (Three Sisters Ranch Enterprises, LLC) and they have agreed to sell the property to the Redevelopment Agency for $5 million, which would require them to get out of an existing contract provided the Agency could complete the transaction by June 2004. FISCAL IMPACT: The Capital Improvement Plan has $2.9 million budgeted in the current year for acquisition of this fire station. These funds and the additional $2.1 million necessary to complete the sale are available from remaining Downtown/Central Redevelopment Bond Funds. CONCLUSION: This property and the site improvements will provide the Fire Department with a facility that adequately replaces the aging Central Fire Station located on Baden Avenue. In addition, the new facility will be located on a much larger site with a facility capable of providing additional space for training, administrative and other related department services. This alternative exceeds other construction or purchase options in value and utility, therefore the s taffr ecommends that the Board approve the attached Resolution allowing the Executive Director to enter into a Purchase and Sale Agreement to acquire the property at 480 North Canal Street for $5 million, and approving an amendment to the budget for 2003-2004 to appropriate an additional $2.1 million from Downtown/Central Bond funds to complete the purchase. ~ector Michael A. Wilson Executive Director Attachments: Resolution Purchase and Sale Agreement Assessor's Map RESOLUTION NO. REDEVELOPMENT AGENCY, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION AUTHORIZING A PURCHASE AND SALE AGREEMENT FOR THE ACQUISITION OF PROPERTY AND IMPROVEMENTS LOCATED AT 480 NORTH CANAL STREET IN THE AM()UNT OF $5 MILIJON AND AMENDIN(;, THE 2003-2004 REDEVELOPMENT AGENCY BUDGET (No. 04-17) WH]EREAS, staff recommends that the Board authorizes a Purchase and Sale Agreement for the acquisition of property and improvements located at 480 North Canal Street in the amount of $5 million; and WI-[EREAS, the Capital Improvement Plan has $2.9 million budgeted in the current year for acquisition of this fire station; and WHEREAS, these funds and the additional $2.1 million necessary to complete the sale are available from remaining Downtown/Central Redevelopment Bond F'unds. NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of South San Francisco that the Redevelopment Agency hereby authorizes a Purchase and Sale Agreement for the acquisition of property and improvements located at 480 North Canal Street in the amount of $5 million and amends the 2003-2004 Redevelopment Agency budget (No. 04-17) to appropriate an additional $2.1 million from Downtown/Central Bond funds to complete the purchase. A copy of the Agreement is attached as Exhibit A. BE IT, FURTHER RESOLVED that the Executive Director is hereby authorized to execute the agreement on behalf of the Redevelopment Agency of the City of South San Francisco. I hereby certify that the foregoing Resolution was regularly introduced and adopted by the Redevelopment Agency of the City of South San Francisco at a regular meeting held on the __ day of 2004 by the following vote: AYES: NOES: ABSTAIN: ABSENT: S:\Current Reso's\3-24PU RCHASE.SALE.AGR.480N.CANAL.doc ATTEST: Clerk PURCHASE AND SALE AGREEMENT THIS PURCHASE AND SALE AGREEMENT (this "Agreement") is entered into effective as of ,2004 (the date upon which this Agreement was approved by Buyer's Board, and hereinafter referred to as the "Effective Date'.') by and between Three Sisters Ranch Enterprises LLC (hereinafter collectively referred to as "Seller") and the Redevelopment Agency of the City of South San Francisco, a public body, corporate and politic ("Buyer"). Seller and Buyer are hereinafter referred to as the "Parties." WHEREAS, Seller is the owner of that certain real property in San Mateo County, California, APN No. 014-061-110, located at 480 N. Canal Street in the City of South San Francisco and more particularly described in Exhibit A attached hereto and incorporated herein by this reference (the "Land"); WHEREAS, in accordance with the terms and conditions contained herein, Buyer desires to purchase, and Seller desires to sell, the Land together with all improvements located thereon and all easements,, hereditaments, and appurtenances belonging to or inuring to the benefit of Seller and pertaining to the Land (all of the foregoing collectively hereinafter, the "Property"); WHEREAS, Buyer is a redevelopment agency existing pursuant to the Community Redevelopment Law, California Health and Safety Code Section 33000, et seq., and pursuant to the authority granted therein, Buyer has the responsibility to carry om: the Redevelopment Plan for the Downtown Central Project Area ("Redevelopment Plan"); and WHEREAS, the Property is located adjacent to an area governed by the Redevelopment Plan, and the purchase of the Property as provided for in this Agreement is consistent with and necessary to further the goals and objectives of the Redevelopment Plan. Specifically, the property is planned for use as a fire station that will replace or supplement an existing fire station within the redevelopment area and will serve properties within the redevelopment area. NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows. 1. Agreement to Sell and Purchase. Seller agrees to sell and Buyer agrees to purchase the Property subject to the terms and conditions of this Agreement. 2. Purchase Price. The purchase price for the Property shall be Five Million United States Dollars ($5,000,000) ("Purchase Price"). 3. Conveyance of Title. At the close of escrow, Seller shall convey by grant deed to Buyer marketable fee simple title to the Property, free and clear of all recorded and unrecorded liens, encumbrances, assessments, leases and taxes except: (a) the provisions and effect of the Redevelopment Plan; 670973-1 (b) taxes for the fiscal year in which the escrow for this transaction closes, which shall be prorated as of the close of escrow and handled in accordance with Section 4986 of the California Revenue and Taxation Code; and (c) such other conditions, liens, encumbrances, restrictions and exceptions as may be approved in writing by Buyer ("Permitted Exceptions"). 4. Escrow: Escrow Instructions. Within five (5) business days following the Effective Date, the Parties shall open an escrow to consummate the purchase and sale of the Property pursuant to this Agreement at the office of First American Title Company located in Redwood City, California ("Title Company" or "Escrow Agent") or such other title company as may be mutually agreed upon by the Parties. Upon the opening of escrow, the Parties shall deposit with the Escrow Agent an executed copy of this Agreement, which shall serve as the joint escrow instructions of Buyer and Seller for this transaction, together with such additional instructions as may be executed by the Parties and delivered to the Escrow Agent. 5. Earnest Money Devosit. Upon the opening of escrow and in no event later than seven (7) business days after the Effective Date, Buyer shall deposit the sum of Five Thousand Dollars ($5,000) ("Earnest Money Deposit") into escrow in an interest bearing account for the benefit of Buyer. The Earnest Money Deposit, and all interest earned thereon, shall be applied to the Purchase Price at the close of escrow. All amounts deposited by the Parties with the Escrow Agent, including the Earnest Money Deposit, shall be held in escrow in an interest-bearing account. 6. Title Documents. Within seven (7) days following the opening of escrow, Seller shall deliver or cause to be delivered to Buyer a preliminary title report ("Preliminary Report") on the Property issued by the Title Company, setting forth all liens, encumbrances, easements, restrictions, conditions, pending litigation, judgments, administrative proceedings, and other matters of record affecting Seller's title to the Property, together with copies of all documents relating to exceptions listed in the Preliminary Report ("Title Exceptions") and complete and legible copies of all instruments referred to therein, as requested by Buyer. Buyer shall approve or disapprove each Title Exception within seven (7) days following Buyer's receipt of the Preliminary Report. Buyer's failure to object within such period shall be deemed to be a disapproval of the Title Exceptions. If Buyer objects or is deemed to have disapproved any Title Exception, Seller shall use its best efforts at Seller's sole expense to remove from title or otherwise satisfy each such exception no later than fourteen (14) days prior to the close of escrow and in a form that is reasonably satisfactory to Buyer. If Seller fails to remove or satisfy any Title Exception to the satisfaction of Buyer, Buyer shall have the option, in its sole discretion, to terminate this Agreement or to accept title subject to such exception. In the event Buyer elects to terminate this Agreement, the Earnest Money Deposit, including interest thereon, and all other funds and documents deposited into escrow by or on behalf of Buyer shall be returned to Buyer, and all rights and obligations hereunder shall terminate. It shall be a condition to the close of escrow that Title Company shall deliver to Buyer, within five (5) days after Buyer has approved the Preliminary Report pursuant to this Section, 670973-1 2 and in no event later than seven (7) days prior to the close of escrow, a title commitment for an ALTA Owner's Title Insurance Policy ("Title Policy") to be issued by Title Company in the amount of the Purchase Price for the benefit and protection of Buyer, showing title to the Property vested in Buyer, subject only to the Permitted Exceptions, including such endorsements as may reasonably be requested by Buyer, and committing Title Company to issue the Title Policy to Buyer upon the close of escrow. 7. Closing Documents and Funds. (a) Seller. (A) Within twenty-five (25) days following the opening of escrow, Seller shall deposit into escrow all of the following: (i) a Grant Deed, substantially in the form attached hereto as Exhibit B ("Grant Deed"), duly executed and acknowledged, conveying to Buyer good and marketable fee simple title to the Property, subject only to exceptions approved pursuant to this Agreement, together with a Certificate of Acceptance in the form shown in Exhibit B, as required by California Government Code Section 27281; (ii) Seller's affidavit of non-foreign .status and Seller's certification that Seller is a resident of California, each executed by Seller under penalty of perjury as required by state and federal law; and (iii) Such additional duly executed instruments and documents as the Escrow Agent may reasonably require to consummate the transaction contemplated hereby. (iv) A copy of the document reconveying the leasehold interest presently held by Perrier Corporation and Black Mountain Corporation on the Property to Seller and releasing any and all interest in the Property. (B) Unless Seller elects to have the following charges deducted from the funds to be distributed to Seller at close of escrow, no later than one (1) business day prior to close of escrow, Seller shall deposit into escrow immediately available funds in the amount necessary to pay: (i) all governmental conveyance fees and transfer taxes; (ii) one-half (1/2) of all title insurance and title report costs; and (iii) one-half of all escrow fees and recording fees. 670973-1 3 (b) Buyer. (A) Within twenty-five (25) days following the opening of escrow, Buyer shall deposit into escrow all of the following: (i) a duly executed and acknowledged Certificate of Acceptance substantially in the form attached to Exhibit B; and (ii) such additional duly executed instruments and documents as the Escrow Agent may reasonably require to consummate the transaction contemplated hereby. (B) No less than one (1) business day prior to the close of escrow, Buyer shall deposit into escrow immediately available funds in the amount, which together with the Earnest Money Deposit plus interest thereon, if any, is equal to: and (i) the Purchase Price as adjusted by any prorations between the Parties; (ii) one-half (1/2) of all title insurance and title report costs, escrow fees, and recording fees. 8. Close of Escrow. Unless this Agreement is terminated pursuant to the terms hereof or extended by mutual written consent of the Parties, escrow shall close no later than the date which is forty-five (45) days after escrow is opened. The Escrow Agent shall close escrow by: (i) causing the Grant Deed to be recorded in the official records of AN County, California; (ii) issuing the Title Policy and delivering same to Buyer; (iii) delivering to Seller the monies constituting the Purchase Price less prorated amounts and charges to be paid by or on behalf of Seller; and (iv) delivering to Buyer the original Grant Deed, together with a conformed copy thereof indicating recording information thereon. Possession of the Property shall be delivered to Buyer at the close of escrow. 9. Closing Costs. Each Party shall pay one-half (1/2) of all title insurance and title report costs, escrow fees (including the costs of preparing documents and instruments), and recording fees. Seller shall pay all governmental conveyance fees and all transfer taxes. 10. Prorations. At the close of escrow, the Escrow Agent shall make the following prorations: (i) property taxes shall be prorated as of the close of escrow based upon the most recent tax bill available, including any property taxes which may be assessed after the close of escrow but which pertain to the period prior to the transfer of title to the Property to Buyer, regardless of when or to whom notice thereof is delivered; and (ii) any bond or assessment that constitutes a lien on the Property at the close of escrow shall be assumed by Buyer. 11. Buyer's Conditions to Closing. The close of escrow and Buyer's obligation to purchase the Property are conditioned upon: (i) the performance by Seller of each obligation to be performed by Seller under this Agreement within the applicable time period, or the waiver by 670973-1 4 Buyer of such obligation; (ii) Seller's representations and warranties contained in this Agreement being true and correct as of the Effective Date and the close of escrow; (iii) the commitment by Title Company to issue and deliver the Title Policy, subject only to the Permitted Exceptions; and (iv) Buyer's approval of the condition of the Property pursuant to Section 12. Should any condition to closing fail to occur, excepting any such conditions that have been waived by Buyer, Buyer shall have the right, exercisable by giving written notice to Seller, to cancel the escrow, terminate this Agreement, and recover any and all amounts paid by Buyer to Seller or deposited with the Escrow Agent by or on behalf of Buyer, including the Earnest Money Deposit and interest thereon. The exercise of this right by Buyer shall not constitute a waiver bY Buyer of any other rights Buyer may have at law or in equity. 12. Buyer's Additional Conditions to Closing. Buyer's obligation to purchase the Property is also conditioned upon Buyer's review and approval of the condition of the Property pursuant to this Section. (a) Feasibility Studies. During the period commencing on the Effective Date and ending on the Forty-Fifth (45th) day after the opening of escrow ("Due Diligence Period") Buyer may, at Buyer's expense, undertake an inspection and review of the Property, including without limitation (i) a review of the physical condition of the Property, including but not limited to, inspection and examination of soils, environmental factors, Hazardous Materials (as defined in Exhibit C attached hereto), and archeological information relating to the Property; (ii) a review and investigation of the effect of any zoning, maps, permits, reports, engineering data, regulations, ordinances, and laws affecting the Property, and (iii) an evaluation of the Property to determine its feasibility for Buyer's intended use. Buyer may consult with or retain civil engineers, contractors, soils and geologic engineers, architects and other specialists in its investigation, and may consult with or retain other consultants to determine if the Property is suitable for Buyer's intended use. If Buyer's environmental consultants require additional time to determine the existence and extent of any Hazardous Substances on the Property, Buyer shall have the right, exercisable by delivering written notice to Seller prior to the expiration of the Due Diligence Period, to extend the Due Diligence Period for up to fifteen (15) additional days to complete the testing. (b) Other matters. During the Due Diligence Period, Buyer may inspect, examine, survey and review any other matters concerning the Property, including without limitation, any and all studies or reports provided by Seller, all contracts, leases, rental agreements and other obligations relating to the Property, and the Property's conformity with all applicable laws and regulations. During the Due Diligence Period, Buyer shall have the fight to perform due diligence regarding the investigation, assessment, and monitoring of the environmental condition of the Property, and upon completion of the Due Diligence Period, unless Buyer elects to terminate this Agreement pursuant to the terms hereof, Buyer will purchase the 670973-1 5 Property in its "AS IS" condition as such condition exists at the end of the Due Diligence Period. (c) Disaooroval of Prooertv Condition. Should Buyer fail to approve the condition of the Property or its feasibility for Buyer's intended use in writing within five (5) days following the end of the Due Diligence Period, Buyer shall have the right, exemisable by giving written notice to Seller, to cancel the escrow, terminate this Agreement, and recover any and all amounts paid by Buyer to Seller or deposited with the Escrow Agent by or on behalf of Buyer, including the Earnest Money Deposit and interest thereon. The exercise of this fight by Buyer shall not constitute a waiver by Buyer of any other rights Buyer may have at law or in equity. (d) Condition of Prooertv. Buyer has the right to enter and inspect the property to ensure that it is free of debris before transfer of title. Additionally, Seller shall ensure that all electronic gates are in working order and that all remote transponders for the facility are transferred to Seller at transfer of title. 13. Studies, Reoorts and Investigations. Seller agrees to make available to Buyer within five (5) business days following the Effective Date, any and all information, studies, reports, investigations, contracts, leases, rental agreements and other obligations concerning or relating to the Property which are in Seller's possession or which are reasonably available to Seller, including without limitation surveys, studies, reports and investigations concerning the Property's physical, environmental or geological condition, habitability, or the presence or absence of Hazardous Materials in, on or under the Property and the compliance by the Property with Environmental Laws (as defined in Exhibit C). 14. Right of Entry. During the Due Diligence Period, Buyer and Buyer's agents shall have the right, upon reasonable notice to Seller, to enter upon the Property for the purpose of inspecting, examining, surveying and reviewing the Property in accordance with Section 12. Buyer's inspection, examination, survey and review of the Property shall be at Buyer's sole expense. Buyer shall obtain Seller's advance consent in writing to any proposed physical testing of the Property by Buyer or Buyer's agents, which consent shall not be unreasonably conditioned, withheld or delayed. Buyer shall repair, restore and return the Property to its original condition after such physical testing, at Buyer's sole expense. Buyer shall schedule any such physical tests during normal business hours unless otherwise approved by Seller. Buyer agrees to indemnify Seller and hold Seller harmless from and against all liability, loss, cost, damage and expense (including, without limitation, reasonable attorney's fees and costs of litigation) resulting from Buyer's or Buyer's agents entry upon the Property, except to the extent that such liability, loss, cost, damage and expense arises as a result of the negligence or other wrongful conduct of Seller or its agents. 15. Seller's Conditions to Closing. The close of escrow and Seller's obligation to sell the Property pursuant to this Agreement are conditioned upon: (i) the performance by Buyer of each obligation to be performed by Buyer under this Agreement within the applicable time period, or waiver by Seller of such obligation; and (ii) Buyer's representations and warranties contained in this Agreement being true and correct as of the Effective Date and the: close of escrow. 670973-1 16. Seller's Reoresentations and Warranties. Seller hereby represents and warrants that except as disclosed in writing to Buyer, as of the Effective Date and as of the close of escrow: (i) the Property is free and has always been free of Hazardous Materials and is not and has never been in violation of any Environmental Law; (ii) there are no buried or partially buried storage tanks located on the Property; (iii) Seller has received no notice, warning, notice of violation, administrative complaint, judicial complaint, or other formal or informal notice alleging that conditions on the Property are or have ever been in violation of any Environmental Law or informing Seller that the Property is subject to investigation or inquiry regarding Hazardous Materials on the Property or the potential violation of any Environmental Law; (iv) there is no monitoring program required by the Environmental Protection Agency or any other governmental agency concerning the Property; (v) no toxic or hazardous chemicals, waste, or substances of any kind have ever been spilled, disposed of, or stored on, under or at the Property, whether by accident, burying, drainage, or storage in containers, tanks, holding areas, or any other means; (vi) the Property has never been used as a dump or landfill; (vii) Seller has disclosed to Buyer all information, records, and studies in Seller's possession or reasonably available to Seller relating to the Property concerning Hazardous Materials; (viii) Seller has not received any notice from any governmental authority of any threatened or pending zoning, building, fire, or health code violation or violation of other governmental regulations concerning the Property that have not previously been corrected, and no condition on the Property violates any health, safety, fire, environmental, sewage, building, or other federal, state or local law, ordinance or regulation; (ix) no contracts, licenses, leases or commitments regarding the maintenance or use of the Property or allowing any third party rights to use the Property are in force; (x) there are no threatened or pending actions, suits, or administrative proceedings against or affecting the Property or any portion thereof or the interest of Seller in the Property; (xi) there are no threatened or pending condemnation, eminent domain, or similar proceedings affecting the Property or any portion thereof; (xii) Seller has not received any notice from any insurer of defects of the Property which have not been corrected; (xiii) there are no natural or artificial conditions upon the Property or any part thereof that could result in a :material and adverse change in the condition of the Property; (xiv) all information that Seller has delivered to Buyer, either directly or through Seller's agents, is accurate and complete; and (xv) Seller has disclosed all material facts concerning the Property. Seller further represents and warrants that this Agreement and all other documents delivered or to be delivered in connection herewith prior to or at the close of escrow: (a) have been duly authorized, executed, and delivered by Seller; (b) are binding obligations of Seller; (c) are collectively sufficient to transfer all of Seller's right, title and interest in and to the Property; and (d) do not violate the provisions of any agreement to which Seller is a party or which affects the Property. Seller further represents and warrants that the persons who have executed this Agreement on behalf of Seller are authorized to do, that Seller has the legal right to enter into this Agreement and to perform all of its terms and conditions, and that this Agreement is enforceable against Seller in accordance with its terms. Seller shall notify Buyer of any facts that would cause any of the representations contained in this Agreement to be untrue as of the close of escrow. If Buyer reasonably believes that a fact materially and adversely affects the Property, Buyer shall have the option to terminate this 670973-1 7 Agreement by delivering written notice thereof to Seller. In the event Buyer elects to terminate this Agreement, the Earnest Money Deposit, including interest thereon, and all other funds and documents deposited into escrow by or on behalf of Buyer shall be returned to Buyer, and all rights and obligations hereunder shall terminate. Seller shall indemnify, defend and hold harmless Buyer from all loss, cost, liability, expense, damage or other injury, including without limitation, attorneys' fees and all other costs and expenses incurred by reason of, or in any manner resulting from the breach of any representation or warranty contained in this Section. 17. Seller's Covenants. Seller covenants that from the Effective Date and through the close of escrow, Seller: (i) shall not permit any liens, encumbrances, or easements to be placed on the Property, other than Permitted Exceptions; (ii) shall not enter into any agreement regarding the sale, rental, management, repair, improvement, or any other matter affecting the Property that would be binding on Buyer or the Property after the close of escrow without the prior written consent of Buyer; (iii) shall not permit any act of waste or act that would tend to diminish the value of the Property for any reason, except that caused by ordinary wear and tear; and (iv) shall maintain the Property in its condition as of the Effective Date, ordinary wear and tear excepted, and shall manage the Property substantially in accordance with Seller's established practices. 18. Buver's Representations, Warranties and Covenants. Buyer represents, warrants and covenants that this Agreement and all other documents delivered in connection herewith, prior to or at the close of escrow: (i) have been duty authorized, executed, and delivered by Buyer; (ii) are binding obligations of Buyer; and (iii) do not violate the provisions of any agreement to which Buyer is a party. Buyer further represents and warrants that the persons who have executed this Agreement on behalf of Buyer have are duly authorized to do, that Buyer has the legal right to enter into this Agreement and to perform all of its terms and conditions, and that Agreement is enforceable against Buyer in accordance with its terms. 19. Environmental Indemnity. Seller agrees to unconditionally and fully indemnify, reimburse, defend, protect and hold harmless Buyer and the City of South San Francisco, California from and against any and all claims, demands, damages, losses, liabilities, fines, orders, judgments, actions, injunctive or other relief (whether or not based on personal injury, property damage, contamination of, or adverse effects upon, the environment or natural resources), costs, economic or other loss, expenses (including without limitation attorneys' fees and any expenses associated with the investigation, assessment, monitoring, response, removal, treatment, abatement and/or remediation of Hazardous Materials in, on or under the Property), and/or administrative, enforcement or judicial proceedings, whether known or unknown, and which are directly or indirectly, in whole or in part, caused by, arise out of, or relate to the presence, release or discharge or alleged presence, release or discharge of any Hazardous Materials in, on or under the Property or a violation or alleged violation of an Environmental Law. 20. Damage and Destruction. In the event of any damage or other loss to the Property, or any portion thereof, caused by fire or other casualty prior to the close of escrow in an amoUnt 670973-1 8 not exceeding $500,000, Buyer shall not be entitled to terminate this Agreement, but shall be obligated to close the escrow and purchase the Property as provided in this Agreement, without abatement in the Purchase Price, provided that Seller shall: (i) assign and transfer to Buyer all of Seller's fights under any insurance policy covering the damage or loss, and all claims for monies payable from Seller's insurer(s) in connection with the damage or loss, and (ii) pay to Buyer at the close of escrow the amount of Seller's deductible under the insurance policy or policies coveting the damage or loss. In the event of damage or destruction of the Property or any portion thereof prior to the close of escrow in an amount in excess of $500,000, Buyer may elect either to terminate this Agreement upon written notice to Seller, or to .consummate the purchase of the Property, in which case Seller shall (i) assign and transfer to Buyer all of Seller's tights under any insurance policy covering the damage or loss, and all claims for monies payable from Seller's insurer(s) in connection with the damage or loss, and (ii) pay to Buyer at the close of escrow the amount of Seller's deductible under the insurance policy or policies covering the damage or loss. In the event Buyer elects to terminate this Agreement, the Earnest Money Deposit, including interest thereon, and all other funds and documents deposited into escrow by or on behalf of Buyer shall be returned to Buyer, and all rights and obligations hereunder shall terminate. 21. Assignment. Buyer shall have the tight to assign all tights and obligations under this Agreement to any party, and no approval by Seller of any such assignment shall be necessary. 23. Notices. Except as otherwise specified in this Agreement, all notices to be sent pursuant to this Agreement shall be made in writing, and sent to the Parties at their respective addresses specified below or to such other address as a Party may designate by written notice delivered to the other parties in accordance with this Section. All such notices shall be sent by: (i) personal delivery, in which case notice is effective upon delivery; (ii) certified or registered mail, return receipt requested, in which case notice shall be deemed delivered on receipt if delivery is confirmed by a return receipt; (iii) nationally recognized overnight courier, with charges prepaid or charged to the sender's account, in which case notice is effective on delivery if delivery is confirmed by the delivery service; (iv) facsimile transmission, in which case notice shall be deemed delivered upon transmittal, provided that (a) a duplicate copy of the notice is promptly delivered by first- class or certified mail or by overnight delivery, or (b) a transmission report is generated reflecting the accurate transmission thereof. Any notice given by facsimile shall be considered to have been received on the next business day if it is received after 5:00 p.m. recipient's time or on a nonbusiness day. Buyer: South San Francisco Redevelopment Agency 400 Grand Avenue South San Francisco, CA 94080 670973-1 9 Attn: Executive Director Telephone: 6'50 877-8500 Facsimile: 650 829-6609 with a copy to: South San Francisco Redevelopment Agency Counsel C/O Meyers, Nave, Riback, Silver & Wilson 555 12th Street, Suite 1500 Oakland, CA 94607 Attn: Agency Counsel Seller: Three Sisters Ranch LLC c/o Martin Ruberry P.O. Box 1444 San Carlos, CA 94070 23. Miscellaneous Provisions Litigation Costs. If any legal action or any other proceeding, including arbitration or action for declaratory relief, is brought for the enforcement of this Agreement or because of an alleged breach or default in connection with this Agreement, the prevailing Party shall be entitled to recover reasonable attorneys' fees and other costs, in addition to any other relief to which such Party may be entitled. Waivers; Modification. No waiver of any breach of any covenant or provision of this Agreement shall be deemed a waiver of any other covenant or provision hereof, and no waiver shall be valid unless in writing and executed by the waiving party. An extension of time for performance of any obligation or act shall not be deemed an extension of the time for performance of any other obligation or act, and no extension shall be valid unless in writing and executed by the waiving party. This Agreement may be amended or modified only by a written instrument executed by the Parties. Successors. This Agreement shall bind and inure to the benefit of the respective heirs, personal representatives, successors and assignees of the Parties.. Provisions Not Merged With Deeds. None of the provisions, terms,., representations, warranties and covenants of this Agreement are intended to or shall be merged by the Grant Deed, and neither the Grant Deed nor any other document shall affect or impair the provisions, terms, representations, warranties and covenants contained herein. Without limiting the generality of the foregoing, Seller's representations, warranties and covenants contained herein shall survive the close of escrow. Construction. The section headings used herein are solely for convenience and shall not be used to interpret this Agreement. The Parties acknowledge that this Agreement is the product of 670973-1 '10 negotiation and compromise on the part of both Parties, and the Parties agree, that since both Parties have participated in the negotiation and drafting of this Agreement, this Agreement shall not be construed as if prepared by one of the Parties, but rather according to its fair meaning as a whole, as if both Parties had prepared it. Action or Annroval. Where action and/or approval by Buyer is required under this Agreement, Buyer's Executive Director may act on and/or approve such matter unless the Executive Director determines in his or her discretion that such action or approval requires referral to Buyer's Board for consideration. The time periods afforded Buyer for any event, inspection, feasibility, due diligence, escrow closing or otherwise shall not be extended by any such referral to Buyer's Board. Entire Aereement. This Agreement, including Exhibits A to E attached hereto and incorporated herein by this reference, contains the entire agreement between the Parties with respect to the subject matter hereof, and supersedes all prior written or oral agreements, understandings, representations or statements between the Parties with respect to the subject matter thereto. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be an original and all of which taken together shall constitute one and the same instrument. Severabilitv. If any term, provision, or condition of this Agreement is held by a court of competent jurisdiction to be invalid or unenforceable, the remainder of this Agreement shall continue in full force and effect unless the rights and obligations of the Parties have been materially altered or abridged thereby. No Third Party Beneficiaries. Nothing in this Agreement is intended to or shall confer upon any person, other than the Parties and their respective successors and assigns, any rights or remedies hereunder. Parties Not Co-Venturers. Nothing in this Agreement is intended to or shall establish the Parties as partners, co-venturers, or principal and agent with one another. Non-Liability of Officials, Employees and A~ents. No member, official, employee or agent of Buyer shall be personally liable to Seller or its successors in interest in the event of any default or breach by Buyer or for any amount which may become due to Seller or its successors in interest pursuant to this Agreement. Time of the Essence. Time is of the essence for each condition, term, obligation and provision of this Agreement. Governin~ Law. This Agreement shall be governed bY and construed in accordance with the laws of the State of California without regard to principles of conflicts of laws. Time for Performanee. When the time for performance of any obligation under this Agreement is to be measured from another event, such time period shall include the day of the other event. If 670973-1 the day of the time for performance is not a regular business day, then the time for such performance shall be by the regular business day following such day. 670973-1 IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above. BUYER: ATTEST: By: By: APPROVED AS TO FORM: By: SELLER: 67o973-1 Exhibit "A" Legal Description 1.932 AC MOL ON ELY COR OF SPRUCE AVE & NORTH CANAL ST ACREAGE CITY OF SOUTH SAN FRANCISCO 14 EXHIBIT B FORM OF GRANT DEED RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: REDEVELOPMENT AGENCY OF THE CITY OF SOUTH SAN FRANCISCO c/o Michael A. Wilson, City Manager 400 Grand Avenue South San Francisco, CA 94083 EXEMPT FROM RECORDING FEES PER ) GOVERNMENT CODE §§6103, 27383 ) (SPACE ABOVE THIS LINE RESERVED FOR RECORDER' S USE) GRANT DEED For valuable consideration, receipt of which is hereby acknowledged, Three Sisters Ranch Enterprises, LLC hereby grants to the Redevelopment Agency of the City of South San Francisco, a public agency ("Grantee") all that real property located in the City of South San Francisco, County of San Mateo, State of California described in Exhibit A attached hereto and incorporated herein. IN WITNESS WHEREOF, Grantor has executed this Grant Deed as of , 20 . GRANTOR By: Three Sisters Ranch Enterprises, LLC By: Its: APPROVED AS TO FORM: 670973-1 (Attach legal description.) CERTIFICATE OF ACCEPTANCE This is to certify that the interest in real property conveyed by the Grant Deed dated ,20__, from to the Redevelopment Agency of the City of South San Francisco, a public agency, is hereby accepted on behalf of the Agency by its Executive Director pursuant to authority conferred by Resolution No. , adopted by the City on ,20__, and that the Agency consents to recordation of the Grant Deed by its duly authorized officer. Dated ,20 By: Print Name: ATTEST: By: Clerk APPROVED AS TO FORM: By: City Attorney 670973-1 EXHIBIT C DEFINITION OF "ENVIRONMENTAL LAWS" AND "HAZARDOUS MATERIALS" "Environmental Laws" means all federal, state, local, or municipal laws, rules, orders, regulations, statutes, ordinances, codes, decrees, or requirements of any government authority regulating, relating to, or imposing liability or standards of conduct concerning any Hazardous Material (as defined subsequently in this Exhibit), or pertaining to occupational health or industrial hygiene (and only to the extent that the occupational health or industrial hygiene laws, ordinances, or regulations relate to Hazardous Substances on, under, or about the Property), occupational or environmental conditions on, under, or about the Property, as now in effect, including without limitation, the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA) and the Superfund Amendments and Reauthorization Act of 1986 (SARA) [42 USCA §§ 9601 et seq,]; the Resource Conservation and Recovery Act of 1976 (RCRA) and the Solid Waste Disposal Act [42 USCA §§ 6901 et seq.]; the Clean Water Act, also known as the Federal Water Pollution Control Act (FWPCA) [33 USCA §§ 1251 et seq.]; the Toxic Substances Control Act (TSCA) [115 USCA §§ 2601 et seq.]; the Hazardous Materials Transportation Act (HMTA) [49 USCA §§ 1801 et seq.]; the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) [7 USCA §§ 136 et seq.]; the Clean Air Act (CAA) [42 USCA §§ 7401 et seq.]; the Safe Drinking Water Act (SDWA) [42 USCA §§ 300fet seq.]; the Surface Mining Control and Reclamation Act of 1977 (SMCRA) [30 USCA 8§ 1201 et seq.]; the Emergency Planning and Community Right-to-Know Act of 1986 (EPCRA or EPCRTKA) [42 USCA §§ 11001 et seq.]; the Occupational Safety and Health Act of 1970 (OSHA) [29 USCA §§ 655,657]; the California laws regarding the underground storage of hazardous substances [H & S C §8 25280 et seq.]; the Hazardous Substance Account Act [H & S C 88 25300 et seq.]; the California laws regarding hazardous waste control [H & S C §§ 25100 et seq.]; the Safe Drinking Water and Toxic Enforcement Act of 1986 [H & S C §8 25249.5 et seq.]; the Porter-Cologne Water Quality Control Act [Wat C §§ 13000 et seq.], and any amendments of or regulations promulgated under the statutes cited above and any other federal, state, or local law, statute, ordinance or regulation now in effect that pertains to occupational health or industrial hygiene, and only to the extent that the occupational health or industrial hygiene laws, ordinances, or regulations relate to Hazardous Substances on, under, or about the Property, or the regulation or protection of the environment, including ambient air, soil, soil vapor, groundwater, surface water, or land use. "Hazardous Materials" includes without limitation: (a) Those substances included within the definitions of hazardous substance,hazardous waste,hazardous material, toxic substance, solid waste, or pollutant or contaminant in CERCLA, RCRA, TSCA, HMTA, or under any other Environmental Law; (b) Those substances listed in the United States Department of Transportation (DOT) Table [49 CFR § 172.101 ], or by the Environmental Protection Agency (EPA), or any successor agency, as hazardous substances [40 CFR Part 302]; (c) Other substances, materials, and wastes that are or become regulated or classified as hazardous or toxic under federal, state, or local laws or regulations; and (d) Any material, waste, or substance that is: (i) a petroleum or refined petroleum product, (ii) asbestos, (iii) polychlorinated biphenyl, (iv) designated as a hazardous substance pursuant to 33 USCA USCA 1317, (v) a flammable explosive, or (vi) a radioactive material. 1321 or listed pursuant to 33 ZZI7~V.Z.9 AGENDA CITY COUNCIL CITY OF SOUTH SAN FRANCISCO REGULAR MEETING MUNICIPAL SERVICE BUILDING COMMUNITY ROOM MARCH 24, 2004 7:30 P.M. PEOPLE OF SOUTH SAN FRANCISCO You are invited to offer your suggestions. In order that you may know our method of conducting Council business, we proceed as follows: The regular meetings of the City Council are held on the second and fourth Wednesday of each month at 7:30 p.m. in the Municipal Services Building, Community Room, 33 Arroyo Drive, South San Francisco, California. Public Comment: For those wishing to address the City Council on any Agenda or non-Agendized item, please complete a Speaker Card located at the entrance to the Council Chamber's and submit it to the City Clerk. Please be sure to indicate the Agenda Item # you wish to address or the topic of your public comment. California law prevents the City Council from taking action on any item not on the Agenda (except in emergency circumstances). Your question or problem may be referred to staff for investigation and/or action where appropriate or the matter may be placed on a future Agenda for more comprehensive action or a report. When your name is called, please come to the podium, state your name and address (optional) for the Minutes. COMMENTS ARE GENERALLY LIMITED TO THREE (3) MINUTES PER SPEAKER. Thank you for,your cooperation. The City Clerk will read successively the items of business appearing on the Agenda. As she completes reading an item, it will be ready for Council action. KARYL MATSUMOTO Mayor RAYMOND L. GREEN Vice Mayor JOSEPH A. FERNEKES Councilman RICHARD A GARBARINO, SR. Councilman PEDRO GONZALEZ Councilman RICHARD BATTAGLIA City Treasurer SYLVIA M. PAYNE City Clerk MICHAEL A. WILSON City Manager STEVEN T. MATTAS City Attorney PLEASE TURN OFF CELL PHONES AND PAGERS HEARING ASSISTANCE EQUIPMENT AVAILABLE FOR USE BY THE HEARING IMPAIRED AT CITY COUNCIL MEETINGS CALL TO ORDER ROLL CALL PLEDGE OF ALLEGIANCE INVOCATION PRESENTATIONS · Senshu International City Marathon - Paramedic/Firefighter John Grimaldi · National Parks and Recreation Association Individual Citation Award - Parks & Recreation Commissioner Judy Bush · Proclamation: American Red Cross Month, March 2004 - recipient: Ms. Lynn Henley · Safety Tips - Police Chief Mark Raffaelli · Public Safety Awards AGENDA REVIEW PUBLIC COMMENTS ITEMS FROM COUNCIL · Announcements · Committee Reports CONSENT CALENDAR 1. Motion to approve the minutes of March 10, 2004 2. Motion to confirm expense claims of March 24, 2004 Motion to accept petitions to annex properties 178-214 Airport Boulevard into Parking District No. 1, and forward petitions to Parking Place Commission for review and determination (APNs: 012-338-010/020/030/040/050 and 012-338-060/070) 4. Motion to adopt ordinances: a) amending certain time limitations with respect to the effectiveness of plan activities and the repayment of debt in the Gateway, Shearwater, Downtown and E1 Camino Redevelopment Plans b) amending the limitation for incurrence of debt in the Gateway Redevelopment Plan c) amending the limitation for incurrence of debt in the Shearwater Redevelopment Plan o Acknowledgement of Proclamation Issued: Skyline College President's Breakfast, 3/12/04 COUNCIL COMMUNITY FORUM ADJOURNMENT REGULAR CITY COUNCIL MEETING MARCH 24, 2004 AGENDA PAGE 2 Report AGENDA ITEM #3 DATE: TO: FROM: SUBJECT: March 24, 2004 Honorable Mayor and City Council Marty Van Duyn, Assistant City Manager PETITIONS TO ANNEX INTO PARKING DISTRICT #1 - BORBA PROPERTIES AND CITY OF SOUTH SAN FRANCISCO, 178-214 AIRPORT BOULEVARD RECOMMENDATION: It is recommended that the City Council, by motion, accept the petitions filed for annexation into Parking District #1 and forward the petitions for action by the Parking Place Commission. BACKGROUND/DISCUSSION: Last December the City Council authorized the purchase of 0.5-acre iparcel along the westerly side of Airport Boulevard, at the terminus of Baden Avenue (APN #012-338-060/070) with the intention of developing the site in the near term for a parking lot. The lot is being purchased with Parking District funds which require that the property be annexed to the District. In addition, a petition has been submitted by the Borbas, owners of the adjacent parcels along Airport, to annex their properties into the District since there is to be a public parking lot on the City site. Both of these sites are contiguous to the existing District boundaries. The necessary steps for expanding the Parking District are as follow:: 1. Owner files a petition with the City Council. 2. Council accepts the petition and recommends an annexation fee (if any) to be paid by the property owner seeking inclusion. 3. City Council forwards petition and fee (if required) to Parking Place Commission for Commission's review and determination. 4. Parking Place Commission approves or denies the petition, and approves or denies City Council's recommendation regarding any annexation fee. Staff Report To: Honorable Mayor and City Council RE: Parking District Annexation Petitions Date: March 24, 2004 Page 2 5. After approval by the Commission, the City Council may grant the petition. 6. Property is then added to the District when the annexation fee, if any, is paid. CONCLUSION: Staff recommends that the City Council accept the petitions and refer the matter to the Parking Place Commission for further action. Staff is not recommending an armexation fee at this time. Marty Van Duyn, Assent City Manager Approved:,,ff~,~,~- lviicnael A. Wilson City Manager MAW:MVD:sk ATTACHMENTS: Downtown Parking District Map w/potential expansion Petitions Letter from Elsie, William & Marisa Borba pJeAelno8 enue^v sseJd~0 ~JodJ!v PETITION TO INCLUDE PROPERTY IN SOUTH SAN FRANCISCO PARKING DISTRICT NO. 1 The undersigned does/do hereby petition the City of South San Francisco to include the real property located at /~ ~-' "- /~c9 ,~'~-fl-)--:,:~:-,-? r, · · , ~'//~:.-,/~. South San Francisco, State of California, in the Parking District Number 1 operated by the City of South San Francisco. WHEREAS, the City of South San Francisco operates Parking District Number 1 within the boundaries of the City; and WHEREAS, Owner(s) is/are the owner(s) of real property located at / 7,? - 7%~' //~ ~-~_e-~-~,--'--~,/t~ ., South San Francisco, State of California, identified on the assessor's map of the County of San Mateo as parcel number O/~ -.,~ :"; Z - ~l.d~ fO 7P / WHEREAS, the Owner(s) desire/desires to include the property in the Parking District Number 1; and WHEREAS, Owner(s) has/have authorized filing this Petition; and, WHEREAS, Streets and Highways Code section 35708 requires the owner(s) of real property to petition the local governing body to include the property in the parking district; NOW; THEREFORE BE IT RESOLVED, that Owner(s) hereby' petitions the City of South San Francisco to include the property located at ,' ,,,, - . ,: ~, ~-~---~ ::', ~.~:' ~ in Parking District Number 1. ReSpectfully submitted by: Owner(s) ,a Owner(s) Dated: Dated: Owner(s) .. ' ~"rT'r'rr",~ TO ...D.'~'CLUDE ?R.OPEiRTY SOUTH SAN FP, LANCISCO P&P.~N,~.DiS {i%{..2~ :,,,~:.. ~ undersigned does/do hereby petition the City of South 8an Francisco to include the i?roper~V located at_.N~ .... ~'-~ ~ -'~ ¢- '~ x 0 ~ ~t ~, Souih~ F,~cisco,~m~f California, in thc Parking District Number 1 operated by the City of South San Francisco, WHEREAS, the City of South San Francisco operates parking District Number 1 within the bomadaries of the City.; and ~v'H]EREA8, Owner(s)is/a~c th~c.~ .o .~wn~er(s)of real prope,V located at .~X_c~k..(, x~,~..~"o-.\~ ~,,.~q~-~, South San Francisco, State of California,.. identified on the ~sesse. r's map of the County of San Marco as parj:el number 0 ,,;~>. :5 "~ - 0 b"-' O/ WHER_EAS, the Owner(s) desire/desires to include the property in the Parking Dis~ct Number 1; and WHEREAS, Owner(s) has/have authofi2ed filing this P~tion; md, WHEREAS, Streets and Highways Code section 35708 r~quire$ the o'amer(s) of real property, to petition the local go,~eming body to include the property in the parking district; NOW; THEREFORE BE IT RESOLVED, that Owner(s) hereby petitions the City of South San Francisco to include the property located at %ox ~o w',~-,xq,.,.~ ~-~,~ ~r~ x(~,~_o~,.T. in Parking District Number l. Respectfully subrrdtted by: Owner(s) Owner(s) Dated: Dated: Dated: ELSIE BORBA WILLIAM A. BORBA, JR MARISA BORBA 1400 PILARCITOS AVENUE HALF MOON BAY, CA 94019 650 726-1366 TO: SOUTH SAN FRANCISCO CITY COUNCIL 400 GRAND AVENUE SOUTH SAN FRANCISCO, CA 94080 ATTENTION: MAYOR AND CITY COUNCIL MEMBERS REGARDING: BORBA PROPERTIES ON AIRPORT BLVD REQUESTING INCLUSION INTO SOUTH SAN FRANCISCO PARKING DISTRICT Dear Council Members: We, the undersigned, as owners of the five parcels known 196,200, 206,210, and 214 Airport Blvd, request these propo'ties be included the Parking District #I in the City of South San Francisco. The reason for this request is that we are in the process of leasing two buildings located at 200 and 206 Airport Blvd. to a new.tenant. According to current parking regulations it is our understanding that the above properties do not have the proper amount of parking spaces to conform to code. It is also our understanding that by being included in the Parking District our tenants will be allowed to purchase the additional necessary parking permits on a monthly basis. Your prompt attention to the matter would be greatly appreciated. ELSIE BORBA , ~'~ W LLt V A. BOP, B^, mSA BO A StaffReport AGENDA ITEM 4a DATE: TO: FROM: SUBJECT: March 24, 2004 The Honorable Mayor and City Council Steven T. Mattas, City Attorney An Ordinance amending certain time limitations with respect to the effectiveness of plan activities and the repayment of debt in the Gateway, Shearwater, Downtown and E1 Camino Redevelopment Plans RECOMMENDATION: Adopt an ordinance amending certain time limitations with respect to the effectiveness of plan activities and the repayment of debt in the Gateway, Shearwater, Downtown and E1 Camino Redevelopment Plans BACKGROUND/DISCUSSION: Council has previously waived reading and introduced the following ordinance. The Ordinance is now ready for adoption. AN ORDINANCE AMENDING CERTAIN TIME LIMITATIONS WITH RESPECT TO THE EFFECTIVENESS OF PLAN ACTIVITIES AND THE REPAYMENT OF DEBT IN THE GATEWAY, SHEARWATER, DOWNTOWN AND EL CAMINO REDEVELOPMENT PLANS (Introduced 03/10/04 - Vote 5 - 0) Stev,05 T. Mattas, City Attorney Michael A. Wilso~5, City Manager Enclosure: Ordinance ORDINANCE NO. AN ORDINANCE OF THE CITY OF SOUTH SAN FRANCISCO REDEVEI,OPMENT AGENCY AMENDING CERTAIN TIME IAMITATI()NS \¥ITH RESPECT TO THE EFFECTIVENESS OF PLAN ACTIVITIES AND THE REPAYMENT OF DEBT IN THE (;ATE\¥AY, SHEARXVATER, DOXVNT()\VN AND El. CAMINO REDEVELOPMENT PLANS WHEREAS, the City Council of the City of South San Francisco (the "City Council"), originally approved and adopted Redevelopment Plans for the (i) Gateway Redevelopment Project ("Gateway") on June 17, 1981, by Ordinance No. 867-81, (ii) U.S. Steel Plant Site Project ("U.S. Steel/Shearwater") on January 8, 1986 by Ordinance No. 996-86, (iii) Downtown/Central Redevelopment Project ("Downtown") on July 112, 1989 by Ordinance No. 1056-89, and (iv) tine E1 Camino Con'idor Area Project ("El Camino") on July 14, 1993 by Ordinance No. 1132-93 (collectively the "Redevelopment Plans"); and WHEREAS, the E1 Camino Redevelopment Plan was amended on June 28, 2000 by Ordinance No. 1270-2000 to add ten'itory to the E1 Camino redevelopment area ("El Camino Added Area"); and WHEREAS, the Redevelopment Plans, as amended from time to time, contain certain time limitations on the effectiveness of redevelopment activities and the Agency's ability to receive tax increment revenue to repay Agency indebtedness incun'ed to canT out redevelopment activities; and WI-iEREAS, the Redevelopment Agency of the City of South San Francisco, California (the "Agency"), has been designated as the official redevelopment agency in the City of South San Francisco to carry out the functions and requirements of the Community Redevelopment Law of the State of California (Health and Safety Code Section 33000 et seq.) and to implement the Redevelopment Plans; and WHEREAS, effective September 1,2003, SB 1045 added Section 33681.9 to the Health and Safety Code, pursuant to which the Agency is required to make a payment during the 2003- 04 fiscal year for deposit in the County of San Mateo Educational Revenue Augmentation Fund; and WHEREAS, SB 1045 amends Section 33333.2 of the Health and Safety Code to provide that when a redevelopment agency is required to make a payment pursuant to Section 33681.9, the legislative body may, by adoption of an ordinance, amend a redevelopment plan to extend by one year tine time limit on tine effectiveness of the plan and the time limit for repayment of agency indebtedness witln tax increment funds; and WHEREAS, SB 1045 further amends Section 33333.2 of the Health and Safety Code to provide that in adopting an ordinance pursuant to the foregoing authority, neither the legislative body nor the redevelopment agency is required to follow the procedural requirements ordinarily required for the amendment of redevelopment plans; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SOUTH SAN FRANCISCO, DOES HEREBY ORDAIN AS FOLLOWS: Section 1. The time limit on the effectiveness of the Gateway Redevelopment Plan shall be amended to read as June 17, 2022 and the time limit on the receipt of property taxes and repayment of indebtedness shall be extended one year to June 17, 2032. Section 2. The time limit on the effectiveness of the U.S. Steel/Shearwater Redevelopment Plan shall be amended to read as January 8, 2027 and the time limit on the receipt of property taxes and repayment of indebtedness shall be extended one year to January 8, 2037. Section 3. The time limit on the effectiveness of the Downtown Redevelopment Plan shall be amended to read as July 12, 2030 and the time limit on the receipt of property taxes and repayment of indebtedness shall be extended one year to July 12, 2040. Section 4. The time limit on the effectiveness of the El Camino Redevelopment Plan shall be amended to read as July 14, 2034 and the time limit on the receipt of property taxes and repayment of indebtedness shall be extended one year to July 14, 2044; except with regard to the E1 Camino Added Area for which the effectiveness of the El Camino Redevelopment Plan shall be amended to read as June 28, 2031 and the time limit on the receipt of property taxes and repayment of indebtedness shall be extended one year to June 28, 2046. Section 5. The Redevelopment Plans are otherwise continued in full force and effect except as amended by this Ordinance. Section 6. The City Clerk is hereby directed to send a certified copy of this Ordinance to the Agency. Section 7. Severability If any part of this Ordinance is held to be invalid for any reason, such decision shall not affect the validity of the remaining portion of this Ordinance, and the City Council hereby declares that it would have passed the remainder of this Ordinance if such invalid portion thereof had been deleted. Section 8. Publication and Effective Date This Ordinance shall be published once, with the names of those City Councilmembers voting for or against it, in the San Marco Times, a newspaper of general circulation in the City of South San Francisco, as required by law, and shall become effective thirty (30) days from and after its adoption. Introduced and adopted at a regular meeting of the City Council of the City of South San Francisco, held the ~ day of ,2004. Adopted as an Ordinance of the City of South San Francisco at a regular meeting of the City Council held the day of, 2004 by the following vote: AYES: NOES: ABSTAIN: ABSENT: ATTEST: City Clerk As Mayor of tine City of South San Francisco, I do hereby approve the foregoing Ordinance this __ day of 2004. Mayor S:\Cun'ent Ord's\1045-Ordinance RDA Amendments2.doc StaffReport AGENDA ITEM 4b DATE: TO: FROM: SUBJECT: March 24, 2004 The Honorable Mayor and City Council Steven T. Mattas, City Attorney An Ordinance eliminating the time limit on the establish~nent of loans, advances, and indebtedness with respect to the Gateway Redevelopment Plan RECOMMENDATION: Adopt an ordinance eliminating the time limit on the establishment of loans, advances, and indebtedness with respect to the Gateway Redevelopment Plan BACKGROUND/DISCUSSION: Council has previously waived reading and introduced the following ordinance. The Ordinance is now ready for adoption. AN ORDINANCE ELIMINATING THE TIME LIMIT ON THE ESTABLISHMENT OF LOANS, ADVANCES, AND INDEBTEDNESS WITH RESPECT TO TI-I:E GATEWAY REDEVELOPMENT PLAN (Introduced 03/10/04 - Vote 5 - 0) Stey Mattas, City Attorney Mic qael A. Wilson2,City Mana=er Enclosure: Ordinance ORDINANCENO. .-'\N ()RDINANCE ()F ri'H1.2 CITY ()F S()I. ITH SAN FRANCISCO REDEVEI.()PMENT A(;ENCY ELIMINATING THE TIME IJMIT ON THE ESTABLISHMENT OF LOANS, ADVANCES, AND INDEBTEDNESS \¥ITH RESPECT TO THE GATE\¥AY REDEVELOPMENT PLAN WHEREAS, tine City Council of the City of Soutln San Fran'cisco (the "City Council"), originally approved and adopted a redevelopment plan ("Redevelopment Plan") for the Gateway Redevelopment Project ("Gateway") on June 17, 1981, by Ordinance No. 867-81 which Redevelopment Plan permitted the Redevelopment Agency of the City of South San Francisco, California (tine "Agency") to establish loans, advances and indebtedness for the life of the plan; and WHEREAS, in 1993 the State Legislature adopted AB 1290 which required that redevelopment plans adopted prior to January 1, 1994 be amended to establish a time limit for the establishment of loans, advances and indebtedness of the later of' 20 years from the date the plan became effective or January 1, 2004 and pursuant to which the City Council amended the Redevelopment Plan to provide that the Agency could no longer incur loans, advances and indebtedness after January 1, 2004; and WHEREAS, in 2001 the State Legislature adopted SB 211 which permits a redevelopmbnt plan to be amended, on or after January 1, 2002, to eliminate the time limit on the establishment of loans, advances and indebtedness as described in California Health & Safety Code Section 33333.6(e)(2)(B); and WHEREAS, wlnen a redevelopment plan is amended pursuant to Section 33333.6(e)(2)(B), a redevelopment agency shall pay each affected taxing entity either (i) the amount required to be paid by an agreement between the agency and an affected taxing entity entered into prior to January 1, 1994 or (ii) the statutorily prescribed pass-through payments contained in Section 33607.5 (b), (c), (d), and (e) beginning with the first fiscal year following the fiscal year in which the time limit for establishing loans, advances and indebtedness was to expire; and WHEREAS, in adopting the amendment discussed herein, Section 33333.6(e)(2)(B) provides that neither the City Council nor the Agency is required to follow the procedural requirements ordinarily required for the amendment of redevelopment plans; and WHEREAS, the City Council has deterrnined, in consultation with the Agency, that eliminating tine time limit for establishing loans, advances and indebtedness will assist in accomplistning the goals and objectives of the Redevelopment Plan. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SOUTH SAN FRANCISCO DOES HEREBY ORDAIN AS FOLLOWS: Section 1. The time limit of January 1, 2004 for establishing loans, advances and indebtedness under the Redevelopment Plan is hereby eliminated pursuant to Section 33333.6(e)(2)(B)(3) of the California Health & Safety Code. Section 2. The Redevelopment Plan is otherwise continued in full force and effect except as amended by this Ordinance. Section 3. The City Clerk is hereby directed to send a certified copy of this Ordinance to the Agency. Section 4. Severabilit¥ If any part of this Ordinance is held to be invalid for any reason, such decision shall not affect the validity of the remaining portion of this Ordinance, and the City Council hereby declares that it would have passed the remainder of this Ordinance if such invalid portion thereof had been deleted. Section 5. Publication and Effective Date This Ordinance shall be published once, with the names of those City Councilmembers voting for or against it, in the San Mateo Times, a newspaper of general circulation in the City of South San Francisco, as required by law, and shall become effective thirty (30) days from and after its adoption. Introduced and adopted at a regular meeting of the City Counci3 of the City of South San Francisco, held the __ day of ,2004. Adopted as an Ordinance of the City of South San Francisco at a regular meeting of the City Council held the day of, 2004 by the following vote: AYES: NOES: ABSTAIN: ABSENT: ATTEST: City Clerk As Mayor of the City of South San Francisco, I do hereby approve the foregoing Ordinance this ~ day of 2004. Mayor S:\Current Ord's\Gateway time limit for hacurrfl~g debt.or&DOC StaffReport AGENDA ITEM 4c DATE: TO: FROM: SUBJECT: March 24, 2004 The Honorable Mayor and City Council Steven T. Mattas, City Attorney An Ordinance eliminating the time limit on the establishment of loans, advances, and indebtedness with respect to the U.S. Steel/Shearwater Redevelopment Plan RECOMMENDATION: Adopt an ordinance eliminating the time limit on the establishment of loans, indebtedness with respect to the U.S. Steel/Shearwater Redevelopment Plan advances, and BACKGROUND/DISCUSSION: Council has previously waived reading and introduced the following ordinance. The Ordinance is now ready for adoption. AN ORDINANCE ELIMINATING TE TIME LIMIT ON THE ESTABLISI-EM~NT OF LOANS, ADVANCES, AND INDEBTEDNESS WITH RESPECT TO THE U.S. STEEL/SHEARWATER REDEVELOPMENT PLAN (Introduced 03/10/04 - Vote 5 - 0) Steven T. Mattas, City Attorney Wilson~,~Manager Enclosure: Ordinance ORDINANCE NO. AN ORDINANCE OF TI-EE CITY OF SOUTH SAN FRANCISCO REDEVELOPMENT AGENCY ELIMINATING THE TIME LIMIT ON THE ESTABLISHMENT OF LOANS, ADVANCES, AND INDEBTEDNESS WITH RESPECT TO THE U.S. STEEL/SHEARWATER REDEVELOPMENT PLAN WHEREAS, the City Council of the City of South San Francisco (the "City Council"), originally approved and adopted a redevelopment plan ("Redevelopment Plan") for the U.S. Steel Plant Site Project ("U.S. Steel/Shearwater") on January 8, 1986 by Ordinance No. 996-86 which Redevelopment Plan permitted the Redevelopment Agency of the City of South San Francisco, California (the "Agency") to establish loans, advances and indebtedness for the life of the plan; and WHEREAS, in 1993 the State Legislature adopted AB 11290 which required that redevelopment plans adopted prior to January 1, 1994 be amended fo establish a time limit for the establishment of loans, advances and indebtedness of the later of 20 years from the date the plan became effective or January 1, 2004 and pursuant to which the City Council amended the Redevelopment Plan to provide that the Agency could no longer incur loans, advances and indebtedness after January 8, 2006; and WHEREAS, in 2001 the State Legislature adopted SB 211 which permits a redevelopment plan to be amended, on or after January 1, 2002, to eliminate tine time limit on the establishment of loans, advances and indebtedness as described in California Health & Safety Code Section 33333.6(e)(2)(B); and WHEREAS, when a redevelopment plan is amended pursuant to Section 33333.6(e)(2)(B), a redevelopment agency shall pay each affected taxing entity either (i) the amount required to be paid by an agreement between the agency an~d an affected taxing entity entered into prior to January 1, 1994 or (ii) the statutorily prescribed pass-through payments contained in Section 33607.5 (b), (c), (d), and (e) beginning with the first fiscal year following the fiscal year in which the time limit for establishing loans, advance, s and indebtedness was to expire; and WHEREAS, in adopting the amendment discussed herein,, Section 33333.6(e)(2)(B) provides that neither the City Council nor the Agency is required to follow the procedural requirements ordinarily required for the amendment of redevelopment plans; and WHEREAS, the City Council has determined, in consultation with the Agency, that eliminating the time limit for establishing loans, advances and indebtedness will assist in accomplishing the goals and objectives of the Redevelopment Plan. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SOUTH SAN FRANCISCO, DOES HEREBY ORDAIN AS FOLLOWS: Section 1. " The time limit of January 8, 2006 for establishing loans, advances and indebtedness under the Redevelopment Plan is hereby eliminated pursuant to Section 33333.6(e)(2)(B)(3) of the California Health & Safety Code. Section 2. The Redevelopment Plan is otherwise continued in full force and effect except as amended by this Ordinance. Section 3. The City Clerk is hereby directed to send a certified copy of this Ordinance to the Agency. Section 4. Severabilit¥ If any part of this Ordinance is held to be invalid for any reason, such decision shall not affect the validity of the remaining portion of this Ordinance, and the City Council hereby declares that it would have passed the remainder of this Ordinance if such invalid portion thereof had been deleted. Section 5. Publication and Effective Date This Ordinance shall be published once, with the names of those City Councilmembers voting for or against it, in the San Mateo Times, a newspaper of general circulation in the City of South San Francisco, as required by law, and shall become effective thirty (130) days from and after its adoption. Introduced and adopted at a regular meeting of the City Counc!il of the City of South San Francisco, held the __ day of ,2004. Adopted as an Ordinance of the City of South San Francisco at a regular meeting of the City Council held the day of, 2004 by the following vote: A YES: NOES: ABSTAIN: ABSENT: ATTEST: City Clerk As Mayor of the City of South San Francisco, I do hereby approve the foregoing Ordinance this __ day of 2004. Mayor S:\Current Ord's\Shearwater time limit for incurring debtl.ord.DOC