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HomeMy WebLinkAboutAGENDA REPORT 1996 0515 CC REG ITEM 07L AGENDA REPORT City of Moorpark �- r � TO: Honorable City Council FROM: Richard Hare, Deputy City Mana DATE : May 7, 1996 (CC Meeting of 5/15/96) SUBJECT: Consider a Resolution Accepting an Unsecured Promissory Note by Mission Bell Partners for Deferred Development Fees Background: The Moorpark Redevelopment Agency entered into a Development and Disposition Agreement (DDA) in 1995 with Mission Bell Partners for purchase of Agency land and the development of approximately 15 acres of commercial property. The development includes the Albertson' s market, a theater, retail shops, and a restaurant. The Agency agreed to cooperate with the developer by supporting a deferral of fees, per Section 307 of the DDA. The City was required prior to the actual sale of the property to approve the sale as contemplated in the associated DDA. After holding a public hearing the City Council took its action on March 15, 1995 approving the sale . In keeping with that action, the Developer submitted an Unsecured Promissory Note on November 8, 1995 to the City for deferred development fees totaling $316, 620 . 35. The City is considering at this meeting the acceptance of the installation of a public art by the Developer that satisfies the $5, 601 .30 required in the Art in Public Places fees which we included in the Promissory Note. Consequently, the Developer is requesting the reduction of the Note to $311, 019. 05. Staff has prepared the attached resolution to document the amendment to the Note. For your reference, attachments include a letter dated November 8, 1995 from the Developer, the original Unsecured Promissory Note, Section 307 of the DDA, and a schedule of fees . The Note term started November 30, 1995. Recommendation: (Roll Call Vote) Approve the attached Resolution accepting the unsecured promissory note for $311, 019. 05. A:\MISSION.003 M1 ' t r VENTURA PACIFIC CAPITAL COMPANY P, 340 Rosewood Avenue/Suite D/Camarillo, California 93010/(805) 987-6921 Mailing Address: P.O. Box 179, Camarillo, California 93011 November 8, 1995 Mr. Steven Kueny Executive Director Redevelopment Agency of the City of Moorpark 799 Moorpark Avenue Moorpark, California 93021 Dear Mr. Kueny: Pursuant to Section 307 of the Disposition and Development Agreement ("DDA') between the Redevelopment Agency of the City of Moorpark ("Agency") and Mission Bell Partners ("Developer"), Developer hereby requests a deferral of the fees set forth in said Section 307 for Parcels 1, 2, 4, 5, 6 and 7 at this time. Accompanying this letter is an unsecured promissory note for the proper amount evidenced by the schedule attached thereto. As a courtesy I have attached a copy of Section 307 of the DDA. Sinceerely, e pgndello, Jr. 1 f Richard Devericks Richard Hare Paul Porter Steve Hayes David Ghiradelli file:mbphase2\s'k110895.1tr 34 UNSECURED PROMISSORY NOTE ORIGINAL $ 316,620.35 Moorpark, California November 8, 1995 For value received, MISSION BELL PARTNERS, a California partnership, ("Developer") promises to pay to the CITY OF MOORPARK ("City"), or to order, at 799 Moorpark Avenue, Moorpark, California, or at such other place as City may from time to time designate by written notice to Developer, the principal sum of Three Hundred Sixteen Thousand, Six Hundred Twenty Dollars and Thirty-Five Cents ($316,620.35) together with interest, as provided in Section 2 below. Principal and interest shall be due and payable in lawful tender of the United States of America without setoff, deduction or counterclaim. 1. Disposition and Development Agreement. This Promissory Note(the"Note") is non-recourse and is issued pursuant to, and subject to, that certain Disposition and Development Agreement dated April 21, 1995 (and more specifically Section 307 therein), by and between the Redevelopment Agency of the City of Moorpark ("Agency") and Developer(the"Agreement"). The defined terms in this Note shall have the same meanings as in the Agreement. Any default under the Agreement shall constitute a default under this Note. 2. Terms of the Loan. This Note shall bear interest at a simple, non- compounded rate of eight percent (8.0%)per annum with said interest accruing through the Maturity Date, defined below. The principal of this Note and any accrued and unpaid interest shall be due and payable five years after the issuance of the first building permit for the Project or the date upon which the Shopping Center is sold to anybody other than an unaffiliated party, whichever occurs first, as described in Section 307 of the Agreement. Developer shall have the right to pay the outstanding balance of the principal, in full or in part, and accrued interest at any time without any penalties or additional fees. Should Developer agree to or actually sell, convey, transfer, or dispose of any Separate Parcel described in the Agreement, this Note may be declared due and payable, at the sole option of City or Agency. 3. Intentionally Deleted. 4. Acceleration on Default. If any part of the principal or interest under this Note is not paid when due and remains unpaid after a date specified by a notice from City to Developer, or if any breach or default under this Note, or the Agreement referred to in this Note is not cured by a date specified in a notice to Developer, the entire principal amount outstanding and the accrued interest shall at once become due and payable at the FILE:MBPHASE2\FEESN0TE 1 • SS I WA option of City. The date specified shall not be less than ten (10) days from the date such notice is deemed delivered pursuant to the provisions of Paragraph 11 of this Note. City may exercise this option to accelerate during any breach or default by Developer regardless of any prior forbearance. Failure to exercise, or delay in exercising, this option will not constitute a waiver of the right to exercise it for the breach or default or in the event of any subsequent breach or default. 5. Cost of Collection. Developer agrees to pay the following costs, expenses and attorneys' fees paid or incurred by Agency and City, or adjudged by a court of competent jurisdiction: (i) Reasonable costs and expenses of collection or enforcement of, and attorneys' fees paid or incurred in connection with the collection or enforcement of, this Note, whether or not suit is filed; and (ii) costs of suit and such sum as the Court may adjudge as attorneys' fees in an action to enforce payment of this Note or any part of it. 6. Security for Note. The indebtedness evidenced by this Note is unsecured. 7. Forbearance Not a Waiver. No delay or omission on the part of Agency or City in exercising any rights under this Note on breach or default by Developer, shall operate as a waiver of such right or any other right under this Note or the Agreement for the same breach or default or any other breach or default. 8. Assignment by A engy. City shall have the right to sell, assign or otherwise transfer, in whole or in part, this Note without the consent of Developer. 9. No Assignment By Developer. Developer shall not assign this Note, in whole or in part, without the prior reasonable written consent of City or Agency. 10. Time is of the Essence. Time is of the essence for each and every obligation under this Note. 11. Notice. Any notice to be given pursuant to this Note shall be in writing, and all such notices, payments and any other document to be delivered shall be delivered by personal service or by deposit in the Untied States mail, certified or registered, return receipt requested, with postage prepaid, and addressed to the party for whom intended as follows: Executive Director Redevelopment Agency of the the City of Moorpark 799 Moorpark Avenue Moorpark, California 93021 City of Moorpark 799 Moorpark Avenue Moorpark, California 93021 FILE:MBPHASM\FEESNOTE 2 ("Lac Mission Bell Partners P.O. Box 179 Camarillo, California 93011 Notices, payments and other documents shall be deemed received upon receipt by personal service or upon the second (2nd) day after deposit in the United States mail. Either party may, from time to time, by written notice to the other, designate a different address which shall be substituted for the one above specified. MISSION BELL PARTNERS, a California partnership BY: VENTURA PACIFIC PROPERTIES I, INC., a California corporation, General P r T u no po lo, Jr. Presid t BY: VENTURA PACIFIC PM, INC., a California corporation, General Partner By: Richard Devericks President FILE:MBPHASE2\FEESNOTE 3 i,N'VY.ti. • - . ..'r b :a P }ran^ ��Kk t �'K���:. carrier to notify Agency by certified mail of any modification, cancellation or termination of the coverage at least thirty (30) days in advance of the effective date of any such modification, cancellation or termination. The policy shall be an "occurrence-based" policy and the coverage shall be primary insurance and not contributing with any insurance maintained by Agency or City, and the policy shall contain such an endorsement. b. Evidence satisfactory to Agency that any contractor with whom Developer has contracted for the construction of the Project, or any portion thereof, carries workers, compensation insurance as required by law. The insurance obligations set forth in this.Section shall remain in effect as to each Separate Parcel only until the Certificate of Completion has been issued pursuant to Section 318 hereof as to the applicable Separate Parcel. G. [§ 307] City and Other Governmental Agency Permits and Fees. Prior to the commencement of construction of the Project, Developer shall, at its sole expense, secure all permits and pay all fees and charges which may be legally and reasonably required by City and any other governmental entity having jurisdiction over the Project. Agency shall assist Developer where possible to expedite the processing of such permits. Notwithstanding the above,Agency agrees to cooperate with Developer in seeking a deferral from City of the fees commonly referred to as the LA. Avenue Area of Contribution, Traffic Management System Fund, Art Fund, Landscape Fee and Intersection Improvement Fee (the Deferral Fees', calculated on aparcel-by-parcel basis. Payment of the Deferral Fees for Separate Parcels 1, 2 and 4 through 7 shall be evidenced by an unsecured promissory note in favor of City, at a simple, non-compounded interest rate of eight percent (8%)per annum, with the principal and interest due and payable in full five (5) years after the issuance of the first building permit for the Project or the date upon which the Shopping Center is sold to anybody other than an Affiliated Party, whichever occurs first. Payment of the Deferral Fees for Separate Parcel 3 shall be due and payable in full prior to the issuance of the first building permit for that parcel. H. [§ 308] Local, State and Federal Laws Developer shall carry out the construction of the Project in conformity with all applicable local, state and federal laws and regulations. I• [§ 309] Rights of Access For the purpose of assuring compliance with this Agreement, representatives of Agency and City shall have the right of access to the Acquisition Parcel, without charges or fees, at normal construction hours during the period of construction of the Project. Such representatives of Agency and City shall be those who are so identified in writing by the Executive Director of Agency and the City Manager of City. Agency and City shall hold harmless Developer from all claims, demands, damages, costs and liabilities for damage to any Agency or City property and injury or death to any Agency or City representative arising out of activities of Agency or City pursuant to this Section. J. [§ 310] Antidiscrimination During Construction Developer covenants and agrees that, in the construction of the Project, it shall not discrimi- nate against any employee or applicant for employment on account of race, color, creed, religion, sex, marital status, age, handicap, national origin or ancestry or on any other account prohibited by LM2:1212 41.12 3t' Schedule of Fee Deferral file•feedefer November 8, 1995 letter attachment (mbphase2\sk110895.1tr) Parcel Parcel Size Building Size 1 30,401 sf 5,500 sf 2 25,399 sf 3,000 sf 4 30,600 sf 3,500 sf 5 27,043 sf 5,000 sf 6 28,269 sf 14,850 sf 7 317,539 sf 27,163 sf Total 459,251 sf 59,013 sf 10.54 ac Fee Description Fee Type Fee Amount Total Fees L.A. Ave. Area Contribution Acreage $15,519.00/ac $163,616.08 Traffic Mgmt. System Fund Building $2.14/sf $119,867.82 * Art Fund Building S.10/sf $5,601.30 Landscape Fee Building $.05/sf $2,800.65 Intersection Improvement Fee Building S.37/sf $24,734.50** Total Fee Deferral Requested $316,620.35 trmcludes Parcel 2, El Pollo Loco, which is .responsible for payment of the fees noted. -Based upon a 35,000 s.f. theater and a "project allocation" of this fee in the amount of 543,080.