For City Council Meeting [February 12, 2019]
TO: Honorable Mayor and City Council
APPROVAL: Sean Grayson, Interim City Administrator
FROM: Robb R. Steel, Assistant CA/Development Services Director
Title
Request City Council to Approve Amendment #1 to Exclusive Right to Negotiate Agreement with RV Spa for the Development of Approximately 6 Acres of Property located southwest of Casmalia Avenue and Alder Avenue.
Body
BACKGROUND:
On June 13, 2017, the City Council approved an Amended and Restated Purchase and Sale Agreement ("Agreement") between the City and the County of San Bernardino (County) for the purchase of County property (portions of APN 1119-241-01 and 02) consisting of approximately 13.22 acres situated south of Casmalia Avenue and west of Alder Avenue ("Property"). Attached is a map showing the subdivision of the site into two parcels (Exhibit A).
The Property consists of two parcels: a 6.00 acre parcel beginning at Alder Avenue and going westerly ("Six Acre Parcel") and a second parcel of 7.22 acres situated west of the Six Acre Parcel ("Seven Acre Parcel"). The purchase price for each parcel was $2,300,000 or $4,600,000 total.
On July 24, 2018, the City Council approved entering into an Exclusive Right to Negotiate Agreement (ENA) with RV Spa to acquire and develop the Six Acre Parcel for recreational vehicle sales and service ("Project"). The ENA confers no development rights, but is simply a good faith statement of the party's intention to negotiate a disposition, development agreement (DDA) on terms acceptable to both parties. Attached is the ENA (Exhibit B).
On December 26, 2018, the City escrow closed escrow on the Property with the County.
ANALYSIS/DISCUSSION:
The ENA expired on January 23, 2019, since the parties did not complete a DDA for consideration by the City Council. If warranted, the City Council can extend the ERN period.
The City Attorney prepared a draft DDA that RVA Spa is currently reviewing. Staff anticipates sched...
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