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HomeMy WebLinkAboutAgenda Report - November 4, 2009 D-10AGENDA ITEM Qo ID CITY OF LODI COUNCIL COMMUNICATION Im AGENDA TITLE: Adopt Resolution Approving Second Supplemental Agreement to Pixle) Park Property Exchange Agreement and Improvement Agreement with GSE M, Inc., to Provide Time Extension MEETING DATE: November4, 2009 PREPARED BY: Public Works Director RECOMMENDED ACTION: Adopt a resolution approving Second Supplemental Agreement to Pixley Park Property Exchange Agreement and Improvement Agreement with G -REM, Inc., to provide time extension. BACKGROUND INFORMATION: The City and the developer, G -REM, Inc., entered into a land exchange agreement in December 2004 (Resolution No. 2004-248) per City Council's direction. As shown on Exhibits and B, the land exchange agreement adjuststhe property lines to reconfigurethe Pixley Park C -Basin to allow development of the park site per the approved Pixley Park Conceptual Plan. As part of the land exchange agreement, the developer agreed to construct all the required frontage improvementsfronting the proposed park site on Auto Center Drive and to excavate the basin to conform to the final grading of the future park layout. The executed agreement gave the developer until December 2007 to complete the obligations of the agreement. The developer entered into a Supplemental Agreement with the City on January 23, 2008, to extend the completion of the basin excavation to December 2009, due to problems with the ability of the developer's contractor to move and sell the excavated soil. The developer's contractor has completed the majority of the public improvements and has excavated half of the basin. Due to the current economic climate, the grading of the basin will not be completed by the agreed upon date. The developer's contractor anticipated being able to sell dirt to be used as fill on other projects. These projects have not materialized as expected. The developer is requestingto extend the completion date of the improvement agreement and the original land exchange agreement to December 31, 2011, to complete all the required improvements and grading of the park site. Since the City does not currently have funds to construct the proposed features at the park site, staff supports an extension to the completion date of the basin excavation and land exchange. The developer has executed the supplemental agreement and paid the document preparation fees. FISCAL IMPACT: There will be no direct fiscal impact on the extension of the basin excavation and land exchange completion date. The developer/contractor APPROVED: % 0 Blair King, City Manager KAWP\DEV SERV\Pixley Park\CC_Addenda 2.doc 90/20/2009 Adopt ResolutionApproving Second Supplemental Agreement to Pixley Park Property Exchange Agreement and ImprovementAgreement with G -REM, Inc., to Provide Time Extension November4,2009 Page 2 is responsiblefor the basin maintenance during the extension period; hence the City's part of the Maintenance cost will be reduced. FUNDING AVAILABLE: Not applicable. a"d— F. Wally SaMelin Public Works Director Prepared by Lyman Chang, Senior Civil Engineer RCP/LC/pmf Attachments cc: City Attorney G -REM, Inc. Park Superintendent Streets and Drainage Manager K:\WP\DEV_SERV\Pixley Park\CC_Addenda 2.doo 10/20/2009 EXHIBITA CITY OF LODI 1� CITY F LODI PUBLIC WORKS DEPARTMENT PROPOSED PROPERTY LINES RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City Clerk City of Lodi, City Hall 221 Pine Street Lodi, CA 95241 APN: 049-250-72 (Space Above for Recorder's Use Only) SECOND SUPPLEMENTAL AGREEMENT to the PIXLEY PARK PROPERTY EXCHANGE AGREEMENT AND IMPROVEMENT AGREEMENT This Second Supplemental Agreement to the Pixley Park Property Exchange Agreement and the Improvement Agreement for The Public Improvements of Pixley Park Site Grading ("Second Supplemental Agreement") is made and entered into this day of , 2009, by and between the City of Lodi, a municipal corporation ("CITY") and GFLIP III, L. P., a California Limited Partnership ("DEVELOPER"), (collectively the "Parties") RECITALS: WHEREAS, the Parties entered into the Pixley Park Property Exchange Agreement, dated November 29, 2004 ("Exchange Agreement"), to address the responsibilities of CITY and DEVELOPER for the Pixley Park property exchange; and WHEREAS, the Parties have entered into the Addendum to the Pixley Park Property Exchange Agreement dated March 29, 2006 ("Addendum to Exchange Agreement"), to address the grading of the Pixley Park Site (described more fully in Item No. 2 of the Addendum to the Exchange Agreement); and WHEREAS, the Parties have entered into an Improvement Agreement for the Public Improvements of Pixley Park Site Grading ("Improvement Agreement"), to address public improvements and grading of the Pixley Park Site; and WHEREAS, the Parties have entered into a Supplemental Agreement to the Pixley Park Property Exchange Agreement and Improvement Agreement ("Supplemental Agreement") dated January 23, 2008, to extend the basin excavation and the land exchange completion date to December 31, 2009; and WHEREAS, Developer desires to extend the terms of the Exchange Agreement and Improvement Agreement to allow additional time for the basin excavation at the Pixley Park Site. NOW THEREFORE, in consideration of the mutual convenants and conditions herein contained, it is hereby agreed by and between the Parties as follows: 1. This Second Supplemental Agreement supplements the Exchange Agreement, Addendum To Exchange Agreement, the Improvement Agreement, and Suppemental Agreement previously executed by the Parties. K:\WP\PROJECTS\PARKS\Pixley(C-Basin)\St[ppAgrRePixleyPark (2) (2).doc 2. The Parties agree to extend the completion date of the required improvements and property exchange as set forth in the various agreements entered into by the parties and described in paragraph 1 above, to and including December 31, 2011. 3. DEVELOPER shall provide and keep current the necessary securities and insurance as specified in the Exchange Agreement, Addendum to Exchange Agreement and Improvement Agreement. 4. All other terms and conditions cf the Exchange Agreement, Addendum to Exchange Agreement ImprovementAgreement, and Supplemental Agreement shall remain unchanged, except as modified hereinabove. 5. DEVELOPER agrees to pay all additional costs for preparation and execution of this Second Supplemental Agreement. 6. This Second Supplemental Agreement shall run with the land and be binding on the DEVELOPER, its heirs, successors or assigns. 7. A copy of this Second Supplemental Agreement shall be recorded in the office of the San Joaquin County Records, P. O. Box 1968, Stockton, California 95201-1968. 8. Any notice required to be given by the terms of this Second Supplemental Agreement shall be in writing signed by an authorized representative of the sender and shall be deemed to have been given when the same is personally served or upon receipt by express or overnight delivery, postage prepaid, or in three (3) days from the time of mailing if sent by first class or certified mail, postage prepaid, addressed to the respective parties as follows: Notices required to be given to CITY shall be addressed as follows: Wally Sandelin Public Works Director City of Lodi P. O. Box 3006 Lodi, CA 95240-1910 Notices required to be given to DEVELOPER shall be addressed as follows: GFLIP III L. P., a California Limited Partnership K:\WP\PROJECTS\PARKS\Pixley(C-Basin)\SuppAgrRePixleyPark (2)(2).doc IN WITNESS WHEREOF, the Parties hereto have set their hands the day, month and year appearing opposite their names. Dated: 2009 CITY OF LODI, a municipal corporation Attest: By: Blair King, City Manager Randi Johl, City Clerk CERTIFICATE OF ACKNOWLEDGEMENT OF NOTARY PUBLIC STATE OF CALIFORNIA, ) COUNTY OF SAN JOAQUIN ) On before me, ,personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s), acted, executed the instrument. certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. (Signature of Notary Public) Seal GFLIP III, L. P., a California Limited Partnership Dated: 2009 By. Name: Title: CERTIFICATE OF ACKNOWLEDGEMENT OF NOTARY PUBLIC STATE OF CALIFORNIA, ) COUNTY OF SAN JOAQUIN ) On before me, ,personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s), acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. (Signatureof Notary Public) Seal Approved as to form: JANICE D. MAGDICH Deputy City Attorney �K K:\WP\PROJECTS\PARKS\Pixley(C-Basin)\SuppAgrRePixleyPark (2) (2).doc RESOLUTION NO. 2009-156 A RESOLUTION OF THE LODI CITY COUNCIL APPROVING SECOND SUPPLEMENTAL AGREEMENT TO PIXLEY PARK PROPERTY EXCHANGE AGREEMENT AND IMPROVEMENTAGREEMENT WHEREAS, the City of Lodi and the developer, G -REM, Inc., entered into a land exchange agreement in December 2004 to reconfigure the Pixley Park C -Basin to allow development of the park site per the approved Pixley Park Conceptual Plan. As part of the land exchange agreement, the developer agreed to construct all the required frontage improvements fronting the proposed park site on Auto Center Drive and to excavate the basin to conform to the final grading of the future park layout. The executed agreement gave the developer until December 2007 to complete the obligations of the agreement; and WHEREAS, the developer entered into a Supplemental Agreement with the City on January 23, 2008, to extend the completion of the basin excavation to December 2009, due to difficulties in moving and selling the excavated soil; and WHEREAS, the developer requested to extend the completion date of the improvement agreement and the original land exchange agreement to allow extra time to complete all the required improvements and grading of the park site. Since the City does not currently have funds to construct the proposed features at the park site, staff supports an extension to the completion date of the basin excavation and land exchange to December 31, 2011; and WHEREAS, the developer has executed the supplemental agreement and paid the document preparation fees. NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby approve the Second Supplemental Agreement to the Pixley Park Property Exchange Agreement and ImprovementAgreement with G -REM, Inc.; and BE IT FURTHER RESOLVED that the City Council does hereby authorize the City Manager and City Clerk to execute the agreement on behalf of the City. Dated: November 4, 2009 ------------------------------------------------------------------------ ------------------------------------------------------------------------ I hereby certify that Resolution No. 2009-156 was passed and adopted by the City Council of the City of Lodi, in a regular meeting held November 4, 2009, by the following vote: AYES: COUNCIL MEMBERS— Hitchcock, Johnson, Katzakian, and Mayor Hansen NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — Mounce ABSTAIN: COUNCIL MEMBERS —None JOHL City Clerk 2009-156 CITY COUNCIL LARRY D. HANSEN, Mayor PHIL KATZAKIAN, Mayor Pro Tempore SUSAN HITCHCOCK BOBJOHNSON JOANNE L. MOUNCE G -REM, Inc. P. O. Box 1210 Lodi, CA 95241 CITY OF LODI PUBLIC WORKS DEPARTMENT CITY HALL, 221 WEST PINE STREET P.O. BOX 3006 LODI, CALIFORNIA 95241-1910 (209) 333-6706 FAX (209) 333-6710 EMAIL pwdept@lodi.gov http:\\www.lodi .gov October 22,2009 BLAIR KING City Manager RANDIJOHL City Clerk D. STEVEN SCHWABAUER City Attorney F. WALLY SANDELIN Public Works Director SUBJECT: Adopt Resolution Approving Second Supplemental Agreement to Pixley Park Property Exchange Agreement and ImprovementAgreement with G -REM, Inc., to Provide Time Extension Enclosed is a copy of background information on an item on the City Council agenda of Wednesday, November4, 2009. The meeting will be held at 7 p.m. in the City Council Chamber, Carnegie Forum, 305 West Pine Street. This item is on the consent calendar and is usually not discussed unless a Council Member requests discussion. The public is given an opportunityto address items on the consent calendar at the appropriate time. If you wish to write to the City Council, please address your letter to City Council, City of Lodi, P.O. Box 3006, Lodi, California, 95241-1910. Be sure to allow time for the mail. Or, you may hand-deliverthe letter to City Hall, 221 West Pine Street. If you wish to address the Council at the Council Meeting, be sure to fill out a speaker's card (available at the Carnegie Forum immediately prior to the start of the meeting) and give it to the City Clerk. If you have any questions about communicating with the Council, please contact Randi Johl, City Clerk, at 333-6702. If you have any questions about the item itself, please call Lyman Chang, Senior Civil Engineer, at 333-6800, extension 2665. F. Wally Sandelin �r Public Works Director FWS/pmf Enclosure cc: City Clerk NCC ADDENDA 2.DOC