For City Council Meeting and the City of Rialto, Acting as the Successor to the Redevelopment Agency [July 12, 2016]
TO: Honorable Mayor and City Council
APPROVAL: Michael Story, City Administrator
FROM: Robb Steel, Assistant CA/Development Services Director
Title
Request City Council, Acting as the Rialto Successor Agency to Adopt Resolution No. SA7-16 Approving Amendment #1 to the Purchase and Sale Agreement with PDC OC/IE LLC for three Successor Agency properties (APN 0240-221-02, 03 and 26).
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BACKGROUND:
On April 28, 2015 the City Council, acting for the Successor Agency to the City of Rialto ("Successor Agency"), approved a Purchase and Sale Agreement ("Agreement") between the Successor Agency and PDC OC/IE LLC, managed by Panattoni Development Company, Inc. ("Buyer"). The Agreement allows the Buyer to purchase 3 Successor Agency parcels ("Agency Parcels") on the east side of Alder Avenue, north of Walnut Avenue (APN# 0240-221-02, 03 and 26). The Agency Parcels total 3.52 acres and the purchase price is $1,203,648. Buyer intends to develop a 439,000 square foot warehouse. The site map is attached hereto as Exhibit A.
On April 16, 2015, the Oversight Board approved the Agreement and in May 2015, the California Department of Finance stated that it had no objections. The Agreement is attached hereto as Exhibit B.
The Agreement provided a contingency period of 270 days with two 90-day extensions at the Buyer's discretion to close escrow ("Contingency Period"). The Buyer deposits $10,000 with escrow for each 90-day extension.
On July 21, 2016, the Oversight Board will consider Amendment #1.
ANALYSIS/DISCUSSION:
The Agreement requires the Buyer to acquire all the parcels in the project area and obtain City of Rialto entitlement approvals prior to closing escrow. The Buyer has not yet assembled all of the parcels comprising the site. In addition, the Developer anticipates obtaining the entitlement approvals by October 20...
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