For City Council Meeting [September 13, 2022]
TO: Honorable Mayor and Council
APPROVAL: Marcus Fuller, City Manager
FROM: Eric Vail, City Attorney
Title
Request City Council to: (1) Approve the Second Implementation Agreement with Ayala & 210 Partners, LLC; and (2) Authorize the City Manager to Execute All Documents.
Body
BACKGROUND
On April 24, 2018, the City of Rialto ("City") and Ayala & 210 Partners, LLC ("Developer") entered into a Purchase and Sale Agreement ("Purchase and Sale Agreement") pursuant to which the City agreed to sell and the Developer agreed to purchase approximately 7.5 acres of real property located at the northeast corner of Renaissance Parkway and Ayala Drive in the City of Rialto ("Entire Property"). The Entire Property consists of six (6) separate parcels known as Parcel 1, Parcel 2, Parcel 3, Parcel 4, Parcel 5, and Parcel 6, generally shown in Figure 1 below.
*Note, currently available aerial imagery does not show completion of City parking lot on Parcel 5 or Texas Roadhouse on Parcel 6.
Concurrently with entering into the Purchase and Sale Agreement, the Developer executed a Purchase Money Promissory Note Secured by Deed of Trust ("Purchase Money Note") for the sum of $3,221,680 and entered into a Construction Loan Agreement ("Construction Loan Agreement") for the sum of $3,700,000, together with a Construction Promissory Note Secured by Deed of Trust (the "Construction Note").
Subsequently, the Developer entered into amendments to the Construction Loan Agreement and the Construction Note increasing the principal sum to four million dollars ($4,000,000).
The Developer has sold Parcels 1, 2, 3, and 6 for development of the following:
Parcel 1 Cracker Barrel Restaurant
Parcel 2 Sonic Drive-in Restaurant
Parcel 3 Dutch Bros Coffee
Parcel 6 Texas Roadhouse Restaurant
On June 1, 2021, the Developer and the City entered into a Purchase and Sale Agreement in which Developer agreed to sell and the City agreed to purchas...
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