For City Council Meeting [September 10, 2019]
TO: Honorable Mayor and City Council
APPROVAL: Rod Foster, City Administrator
FROM: Sean Grayson, Acting Public Works Director
Title
Request City Council to Approve Amendment #4 to Exclusive Right to Negotiate Agreement with NewMark Merrill for the Development of Approximately 15.5 Acres of Property located west of Riverside Avenue and north of Valley Boulevard, extending the time for performance until December 31, 2019.
Body
BACKGROUND
On June 27, 2017, the City Council approved an Exclusive Right to Negotiate Agreement (ERN) with NewMark Merrill ("Developer") for the development of approximately 15.5 Acres ("Site") located west of Riverside Avenue and north of Valley Boulevard. The City selected the Developer through a "Request for Proposals/Qualifications" process.
On January 9, 2018, the City Council approved Amendment #1 extending the termination date until July 31, 2018; on July 10, 2018, the City Council approved Amendment #2 extending the termination date until January 31, 2019; and, on February 12, 2019, the City Council approved Amendment #3 extending the termination date until July 31, 2019. The ERN is attached hereto as Exhibit A.
The Successor Agency owns seven (7) parcels totaling 15.5 acres ("SA Parcel") between the former Wal-Mart property under rehabilitation by Pacifica and the new Wal-Mart Supercenter. The City proposes to develop retail and entertainment uses compatible with the two adjoining projects. See Exhibit B for a site map.
The ERN allows the Developer to prepare proposals, conduct feasibility assessments, and market the Site to potential users. The ERN 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.
ANALYSIS/DISCUSSION
The ERN expired on July 31, 2019. If warranted, the City Council may extend the term of the ERN. Since July 2017, the ...
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