HomeMy WebLinkAboutAGENDA REPORT 2004 0421 CC REG ITEM 10HMOORPARK CITY COUNCIL
AGENDA REPORT
ITEM
10.14.
TO: Honorable City Council
FROM: Cynthia L. Borchard, Administrative Services Director
DATE: April 1, 2004 (meeting of April 21, 2004)
SUBJECT: Consider Amendment of Reimbursement Agreement Relative
to LDM 92 -1
BACKGROUND
At the time CPD 92 -2 (McDonalds project) was approved a
subdivision (LDM 92 -1) was also approved. LDM 92 -1 created an
approximate 1 acre parcel for the McDonald's restaurant (parcel
1) and a remainder parcel of approximately 2.86 acres at the
northeast corner of Spring Road and New Los Angeles Avenue
(parcel 2). As part of the approval of the final map for LDM
92 -1, the City and the property owner (Stephen R. Anderson
Trust) entered into two agreements dated July 14, 1993:
1. Agreement for Construction of Subdivision Improvements
and Reimbursement, and
2. Reimbursement Agreement Relative to LDM 92 -1.
Two items in the agreements pertain to the construction of storm
drains to serve the property.
The first item addressed reimbursement to the owner of PD 1064
(TOPA) for a prior installation of a storm drain that served
this property. It required the payment of $22,100 prior to the
issuance of the building permit for McDonalds (parcel 1) and
$59,543.25 to be paid prior to 1) issuance of first building
permit on parcel 2 of LDM 92 -1 or 2) approval of any final map
on parcel 2 of LDM 92 -1, whichever occurs first.
1111.;
Honorable City Council
April 21, 2004
Page 2
The second item addressed construction of the storm drain on the
Spring Road frontage of the property to connect to the storm
drain referenced above. The construction was allowed to be
deferred until 1) issuance of the first building permit on
parcel 2 of LDM 92 -1 or 2) approval of any final map on parcel 2
of LDM 92 -1, whichever occurs first. The agreements also
addressed the property owner's obligations in the event another
developer constructed the required storm drain improvements.
In early 1996, parcel 2 was subdivided to create an approximate
25,000 square foot parcel for sale and development with the
remainder of the approximate 2.86 acres to be developed at a
later date. The City proceeded to construct the storm drain on
Spring Road from Flinn Avenue to New Los Angeles Avenue that
included the storm drain adjacent to LDM 92 -1. The property
owner requested deferral of his fair share of the Spring Road
storm drain project cost to be paid (including interest) prior
to the City's issuance of the first building permit for parcel 2
of LDM 92 -1. Council approved the property owner's request on
April 3, 1996 and authorized amendments to the agreement subject
to final language approval of the City Attorney and City Manager
(First Amendment to Agreement for Construction of Subdivision
Improvements and Reimbursement).
A further subdivision of Parcel 2 occurred, specifically to TTM
5038 and CPD 96 -2 (Moorpark Caymus), generally known as the
Blockbuster Video project. As a result, a Release of
Reimbursement Agreement Relative to LDM 92 -1 was prepared since
a reimbursement agreement was no longer needed. A provision for
the repayment of funds advanced by the City for the LDM 92 -1
portion of the Spring Road storm drain project was included in
the First Amendment to Agreement for Construction of Subdivision
Improvements and Reimbursements. (Agreement dated 3/3/97).
DISCUSSION
Staff has calculated the total due the City to date for the TOPA
Management reimbursement and the Storm Drain Pro -Rata
Reimbursement Agreements to be $144,092.98 including interest
through February 2004 (see attached). The current property
owner, Mr. Larry Greene, has accepted the City's calculations
and at this time is asking that the City consider deferring
payment to "prior to issuance of the Certificate of Occupancy"
or some other appropriate stage of completion of construction as
opposed to "issuance of the first building permit ". He has
agreed to pay interest per the Agreement to the date of payoff.
1111.•
Honorable City Council
April 21, 2004
Page 3
Community Development staff estimates permits for the project
will be issued in May with occupancy anticipated in Spring 2005.
STAFF RECOMMENDATION
Approve amendment to Agreement for Construction of Subdivision
Improvements and Reimbursement (Second Amendment) to defer
payment to "prior to final building permit (occupancy) approval"
with Stephen R. Anderson Trust (Larry Greene) relative to LDM
92 -1 subject to final language approval of City Attorney and
City Manager.
ATTACHMENT: 1. Letter dated Oct. 13, 2003 from John Newton &
Associates, Inc., requesting deferral of payment due the
city.
2. First Amendment to Agreement for Construction of
Subdivision Improvements and Reimbursement dated Mar. 3,
1997.
3. Summary of Balance Due to Date.
1111 1,
John W, Newton & Associates, Inc.
ID ,zo fES..ionaf Consudanti
165 High St., Suite 103
Post Office Box 471
Moorpark, California 93021
Felephone (805) 378-0073
Fax No. (805) 378 -0080
newtoncnslt @msn.com
October 13, 2003
Steven Kueny
City Manager
799 Moorpark Avenue
Moorpark, CA 93021
Re: LDM 92 -1 Reimbursements
LA- Spring Center, CPD 2002 -02
REQUEST TO DEFER PAYMENT
Dear Steve:
Per our discussion Friday, October 10, 2003, Mr. Larry Greene, the owner of the property
subject to the LDM 92 -1 Reimbursement Agreements, accepts the most recent revised total due
the City in the amount of $143,839.49. The payment due calculation was presented in your
September 10, 2003 letter (attached), which also clarified the final "actual reimbursable cost"
for the storm drain construction attributable to the LA- Spring property. A portion of the total
payment due also covers the Topa Management element of the LDM 92 -1 Reimbursement
Agreements.
Due to unanticipated development /construction cost overruns caused by protracted
grading/drainage improvement plan design problems encountered, largely the result of NPDES
compliance requirements impose upon this in -fill property, including bringing neighboring
properties into compliance with no reimbursement; Mr. Greene is experiencing front -end
construction financing cash flow difficulty.
It would greatly assist the developer if the LDM 92 -1 Reimbursement Agreements
payment could be deferred to "prior to issuance of the Certificate of Occupancy ", or some other
appropriate trigger in the later stages of completion of construction. Mr. Greene would agree to
continue to pay the interest established in the Agreement through the final payment date.
REAL ESTATE BROKERAGE MINERAL REAL ESTATE DEVELOPMENT
Commercial • Industrial • Land RESOURCE Engineering • Land Division • Permits
Residential Relocation DEVELOPMENT Planning • Zoni60007
Steve Kueny
October 13, 2003
Page 2
Thank you for your favorable response to this request. If you are not able to act on this request
administratively, we will provide whatever documentation may be required to amend the
Agreements.
rely,��
t
John W. Newton
Applicant's Representative
Attachment
Cc: Larry Greene, GreeneWay Development, Inc.
Hugh Riley, Assistant City Manger
Cynthia Borchard, Administrative Services Director
0000'72
Recording Requested By,
and When Recorded Return To:
CITY CLERK
CITY OF MOORPARK
799 MOORPARK AVENUE
MOORPARK, CA 93021
FIRST AMENDMENT TO AGREEMENT FOR CONSTRUCTION OF
SUBDIVISION IMPROVEMENTS AND REIMBURSEMENT
This FIRST AMENDMENT TO AGREEMENT FOR CONSTRUCTION OF
SUBDIVISION IMPROVEMENTS AND REIMBURSEMENT ( "First Amendment ") is
entered into this day of M R-Rc -h, 1997 by and between the
City of Moorpark, California, a municipal corporation, ( "City ")
and Stephen R. Anderson Trust ( "Developer ").
RECITALS
WHEREAS, on July 14, 1993, City and Developer entered into
that certain AGREEMENT FOR CONSTRUCTION OF SUBDIVISION
IMPROVEMENTS AND REIMBURSEMENT (the "Subdivision Agreement ")
relative to LDM 92 -1, which Subdivision Agreement is recorded as
Document No. 93- 147467 of Official records of Ventura County,
California; and
WHEREAS, pursuant to Section 2A of the Subdivision
Agreement, Developer is required to make certain payments to City
and, pursuant to Section 3.A of the Subdivision Agreement,
Developer is required to construct a storm drain within Spring
Road or pay a pro rata share of the cost of construction of the
storm drain; and
WHEREAS, due to changed circumstances, the parties desire to
amend Sections 2A and 3.A of the Subdivision Agreement;
NOW, THEREFORE, the parties agree as follows:
A. Section 2A of the Subdivision Agreement is amended in its
entirety to read as follows:
112A. Developer shall pay to City the sum of Eighty -One
Thousand Six Hundred Forty -Three Dollars and Twenty -Five
Cents ($81,643.25) as total Reimbursement Costs pursuant to
the Topa Reimbursement Agreement. Twenty -Two Thousand One
Hundred Dollars and No Cents ($22,100.00) of said sum shall
be paid prior to City's issuance of the first building
permit for parcel 1 of LDM 92 -1, as shown on the Final Map,
LAX2:156629.3 1
000073
together with One Thousand Seven Hundred Three Dollars and
No Cents ($1,703.00) in costs incurred by City to administer
the Topa Reimbursement Agreement. The balance of the sum,
Fifty -Nine Thousand Five Hundred Forty -Three Dollars and
Twenty -Five Cents ($59,543.25), shall be paid prior to
City's issuance of the first building permit for parcel 2 of
LDM 92 -1, as shown on the Final Map, unless approval of a
final map for the subdivision of parcel 2 of LDM 92 -1
( "Subsequent Final Map ") occurs first.
"In the event approval of a Subsequent Final Map occurs
first, then partial payment of the $59,543.25 shall be made
prior to such approval. The partial payment shall be
calculated by multiplying the square footage of the smallest
parcel shown on the Subsequent Final Map, but in no event
less than twenty -five thousand (25,000) square feet, by
Fifty Cents ($.50) per square foot. The remainder of the
$59,543.25 shall be paid prior to City's issuance of the
first building permit for any other parcel shown on the
Subsequent Final Map, unless approval of a final map for the
subdivision of any parcel shown on the Subsequent Final Map
( "Second Subsequent Final Map ") occurs first.
"In the event approval of a Second Subsequent Final Map
occurs first, then partial payment of the remainder of the
$59,543.25 shall be made prior to such approval. The
partial payment shall be calculated by multiplying the
square footage of the smallest parcel shown on the Second
Subsequent Final Map, but in no event less than twenty -five
thousand (25,000) square feet, by Fifty Cents ($.50) per
square foot. The balance of the $59,543.25 shall be paid
prior to City's issuance of the first building permit for
any other parcel shown on the Second Subsequent Final Map.
"Within thirty (30) days after receipt of each payment
of Reimbursable Costs, City shall remit the total amount of
such payment to Topa; provided, however, the $1,703.00 in
administrative costs shall be retained by City."
"Prior to issuance of the first
Parcel 2 of LDM 92 -1 or approval of
subdivision of Parcel 2 of LDM 92 -1
Developer shall pay the City the sun
Hundred Thirty Five Dollars and fift
for costs associated with preparatic
of the agreements related to deferrz
referenced in this First Amendment.
building permit for
a final map for the
whichever occurs first,
i of Four Thousand Seven
.y -nine cents ($4,735.59)
in of and administration
.1 of the payments
B. Section 3.A of the Subdivision Agreement is amended in its
entirety to read as follows:
113A. Notwithstanding Section 2 to the contrary,
Developer shall have no obligation to construct the storm
drain within Spring Road described in City Drawing No(s).
LAX2:156624.3 G 000074
93 -ML -10481 (the "Project "); provided, however, Developer
shall pay City fifteen point twenty six percent (15.26 %) of
the cost of construction of the Project. The cost of
construction means the total amount of the construction
contract together with design costs, inspection costs,
contract administration costs, City overhead on the design,
contract administration and inspection costs and other
related costs less Thirty -Two Thousand Two Hundred Seventeen
Dollars and Fifty -Four Cents ($32,217.54). (The estimated
payment is $102,600.00.)
"Developer shall pay simple interest on the cost of
construction beginning on August 1, 1996. The interest rate
shall be equal to the sum of the Monthly LAIFs commencing
with the Monthly LAIF for August, 1996 and ending with the
Monthly LAIF for the month in which payment is made. The
Monthly LAIF means one twelfth (1/12) of the sum of the
Local Agency Investment Fund (LAIF) rate of interest
determined on the first day of each month plus two (2)
percentage points.
"The cost of construction together with interest on the
full amount of the cost of construction shall be paid prior
to City's issuance of the first building permit for parcel 2
of LDM 92 -1, as shown on the Final Map, but in no event
later than August 1, 1999, unless approval of a final map
for the subdivision of parcel 2 of LDM 92 -1 ( "Subsequent
Final Map ") occurs prior to the issuance of such first
building permit.
"In the event approval of a Subsequent Final Map occurs
prior to the issuance of such first building permit, then
partial payment of the cost of construction together with
interest on the partial payment shall be made prior to such
approval. The partial payment shall be calculated by
multiplying the square footage of the smallest parcel shown
on the Subsequent Final Map, but in no event less than
twenty -three thousand (23,000) square feet, by an amount per
square foot equal to the cost of construction divided by the
square footage of parcel 2 of LDM 92 -1, as shown on the
Final Map. The remainder of the cost of construction
together with interest on the remainder shall be paid prior
to City's issuance of the first building permit for any
parcel shown on the Subsequent Final Map, but in no event
later than August 1, 1999, unless approval of a final map
for the subdivision of any parcel shown on the Subsequent
Final Map ( "Second Subsequent Final Map ") occurs prior to
the issuance of such first building permit."
"In the event approval of a Second Subsequent Final Map
occurs prior to the issuance of such first building permit,
then partial payment of the remainder of the cost of
construction together with interest on the partial payment
shall be made prior to such approval. The partial payment
LAX2:156624.3 3
000075
shall be calculated by multiplying the square footage of the
smallest parcel shown on the Second Subsequent Final Map,
but in no event less than twenty -three thousand (23,000)
square feet, by an amount per square foot equal to the cost
of construction divided by the square footage of parcel 2 of
LDM 92 -1, as shown on the Final Map. The balance of the
cost of construction together with interest on the balance
shall be paid prior to City's issuance of the first building
permit for any parcel shown on the Second Subsequent Final
Map, but in no event later than August 1, 1999."
IN WITNESS WHEREOF, the parties have executed this First
Amendment in originals the date first above written.
CITY .QF MOORPARK % STEPHEN R. ANDERSON TRUST
By
yor
ATTEST:
B
STEPH . AND ON
Trustee
LAX2:156624.3
000076
Los Angeles & Spring Road Property
t3f {
±�i� ;4 `aReipurs�i�te'nt:.. 'ree men
$e6ti .................... 3. 9�7 .............................. .
Total Reimbursement 81,643.25
Amount Due Prior to Issuance of 1st LDM 92 -1
Building Permit for Parcel 1 22,100.00 22,000.00 Paid by McD 4130/93
City Adm Costs Due 1,703.00 ?
Amount Due Prior to Issuance of 1st LDM 92 -1 59,543.25 12,500.00 Blockbusters Pd 6/12/97
Building Permit for Parcel 2
City Adm Costs Due 4,735.59 Blockbusters Pd 6/12/97
..................................... ............................... .
S+�ctio�3 ids.x''ta�itiD�iitCon�truC� ........................................................................................................ ............................... .
Amount Due Prior to Issuance of 1st LDM 92 -1 111,100.12 Actual Cost Developer to pay 15.26%
Building Permit for Parcel 2 of actual construction
(No later than 8/1/99 unless approval of a final map cost est. at $102,600
occurs prior to the issuance of such 1st permit)
14,122.50 Blockbusters Paid 6/12/97
685.17 Blockbusters Paid 6/12/97
247.77 for interest (5.598%
8/1/96 thru 6/12/97 +2 %)
' .. ..' [
fiI.. Ba. ance. Qu ................................. ............................... .. ................... .
Balance Due Section 2A. 59,543.25
Less Blockbuster - 12,500.00
Sub -total Due 47,043.25
Balance Due Section 3A.
Less McDonald's
Less Blockbuster
Sub -total Due
Interest Calculation:
.06575/12 =.00547917 x 91 mos. x 64,760.08 =
Total Balance Due to City by Developer
Prepared by ASD 4/01/04
111,100.12
- 32,217.54
64,760.08
32,289.65
$144,092.98
000077
Interest Rate Calculation:
j j j W4;,F,
LAIF
1/12th
Mos.
Month
Year
Rate
LAIF Rate
1
Aug
1996
0.05688
0.00474
2
Sep
0.05685
0.00474
3
Oct
0.05679
0.00473
4
Nov
0.05670
0.00473
5
Dec
0.05574
0.00465
6
Jan
1997
0.05583
0.00465
7
Feb
0.05575
0.00465
8
Mar
0.05580
0.00465
9
Apr
0.05612
0.00468
10
May
0.05634
0.00470
11
Jun
0.05667
0.00472
12
Jul
0.05679
0.00473
13
Aug
0.05690
0.00474
14
Sep
0.05707
0.00476
15
Oct
0.05705
0.00475
16
Nov
0.05715
0.00476
17
Dec
0.05744
0.00479
18
Jan
1998
0.05742
0.00479
19
Feb
0.05720
0.00477
20
Mar
0.05680
0.00473
21
Apr
0.05672
0.00473
22
May
0.05673
0.00473
23
Jun
0.05671
0.00473
24
Jul
0.05652
0.00471
25
Aug
0.05652
0.00471
26
Sep
0.05639
0.00470
27
Oct
0.05557
0.00463
28
Nov
0.05492
0.00458
29
Dec
0.05374
0.00448
30
Jan
1999
0.05265
0.00439
31
Feb
0.05210
0.00434
32
Mar
0.05136
0.00428
33
Apr
0.05119
0.00427
34
May
0.05086
0.00424
35
Jun
0.05095
0.00425
36
Jul
0.05178
0.00432
37
Aug
0.05225
0.00435
38
Sep
0.05274
0.00440
39
Oct
0.05391
0.00449
40
Nov
0.05484
0.00457
41
Dec
0.05639
0.00470
42
Jan
2000
0.05760
0.00480
43
Feb
0.05824
0.00485
44
Mar
0.05851
0.00488
45
Apr
0.06014
0.00501
46
May
0.06190
0.00516
47
Jun
0.06349
0.00529
j j j W4;,F,
48
Jul
0.06443
0.00537
49
Aug
0.06505
0.00542
50
Sep
0.06502
0.00542
51
Oct
0.06517
0.00543
52
Nov
0.06538
0.00545
53
Dec
0.06535
0.00545
54
Jan
2001
0.06372
0.00531
55
Feb
0.06169
0.00514
56
Mar
0.05976
0.00498
57
Apr
0.05760
0.00480
58
May
0.05328
0.00444
59
Jun
0.04958
0.00413
60
Jul
0.04635
0.00386
61
Aug
0.04502
0.00375
62
Sep
0.04288
0.00357
63
Oct
0.03785
0.00315
64
Nov
0.03526
0.00294
65
Dec
0.03261
0.00272
66
Jan
2002
0.03068
0.00256
67
Feb
0.02967
0.00247
68
Mar
0.02861
0.00238
69
Apr
0.02845
0.00237
70
May
0.02740
0.00228
71
Jun
0.02687
0.00224
72
Jul
0.02714
0.00226
73
Aug
0.02594
0.00216
74
Sep
0.02604
0.00217
75
Oct
0.02487
0.00207
76
Nov
0.02301
0.00192
77
Dec
0.02201
0.00183
78
Jan
2003
0.02103
0.00175
79
Feb
0.01945
0.00162
80
Mar
0.01904
0.00159
81
Apr
0.01858
0.00155
82
May
0.01769
0.00147
83
Jun
0.01697
0.00141
84
Jul
0.01653
0.00138
85
Aug
0.01632
0.00136
86
Sep
0.01635
0.00136
87
Oct
0.01596
0.00133
88
Nov
0.01572
0.00131
89
Dec
0.01545
0.00129
90
Jan
2004
0.01528
0.00127
91
Feb
0.01440
0.00120
Total 0.04575
Plus 2% 0.02000
Total Interest for 91 month period 0.06575
0000'79
ITEM /0-•
John W. Newton &p Associates, Inc. RECEIVED
�ZO�E1iCOlZQL �OYLiU.LtQYL��
165 High St., Suite 103 APR 1 6 2004
Post Office Box 471 R{(
Moorpark, California 93021 CITY CTV 4 MocOR 4RKENT
Telephone (805) 378-0073
Fax No. (805) 378 -0080
newtoncnslt @msn.com
April 16, 2004
Cynthia Borchard
Administrative Services Director
799 Moorpark Avenue
Moorpark, CA 93021
Re: Item 10.11. ...Reimbursement Agreement
REQUEST DISCUSSION VS. CONSENT
Dear Cynthia:
Per our conversation, would you please request the City Council to pull Item IO.H. from
the Consent Agenda at the early part of Wednesday's regular City Council meeting.
Mr. Kueny and Mr. Hogan have been unavailable to discuss this matter, and I will be out
of town on business Monday — Wednesday late afternoon of next week. I can attend the City
Council meeting, but cannot arrive in time to request that the matter be pulled for discussion.
On behalf of Larry Greene, who cannot attend, I would like to propose an alternative to
the staff report proposal, and request some relief in associated fees. I suspect that the City
Council is the decision - making authority on this request; so making the request of the Council
is the appropriate thing to do.
Thank you for your assistance.
Si rely,
s,_,, _4ohn W. Newton
Applicant's Representative
cc: Larry Greene
REAL ESTATE BROKERAGE MINERAL REAL ESTATE DEVELOPMENT
Commercial • Industrial • Land RESOURCE Engineering • Land Division • Permits
Residential Relocation f1 % DEVELOPMENT ! �! Planning • Zoning
' . F- 0 ,4 // 7 /i't �.4 T/ : P'1 ! A --17) / d..-, lO / —n - ;,.. 1 %Y / r i -), . L -� 4- Z1 / 7 i