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HomeMy WebLinkAboutAgenda Report - June 3, 1981 (66)434 Continued June 3, 1981 EXTENSION OF DEVELOPMENT AGREEMENT FOR LAS CASITAS UNIT #1 APPROVED Council received a copy of a letter from th.e Hawaii and San Francisco Investment Company asking for a time extension for the Development Agreement for Las Casitas, Unit No. 1 and the reasons for their request. No work has commenced as of May 28, 1981, and improvements are supposed to be completed by June 1, 1981. Under the development agreement, the City Council may unilaterally extend the time for completion of the improvements; however, it is felt that the City should also receive acceptance of the Surety to insure the continuation of improvement guarantees provided by the developers. COUNCIL APPROVED A TIME EXTENSION OF ONE YEAR FOR THE DEVELOPMENT AGREEMENT FOR LAS CASiTAS, UNIT NO. 1, AND AUTHORIZED THE CITY ATTORNEY TO PREPARE A LETTER AGREEMENT WITH THE DEVELOPERS TO BE EXECUTED BY THE CITY MANAGER AND CITY CLERK, ALL SUBJECT TO ACCEPTANCE BY THE SURETY. CITY OF LODI PUBIIC WORKS DEPARTMENT TO: City Council COUNCIL COMMUNICATION FROM: City Manager DATE: May 28, 1981 SUBJECT: Extension of Development Agreement for Las Casitas Unit #1 RECOMMENDED ACTION: That the City Council approve a time extension of one year or the Development Agreement for Las Casitas, Unit No. 1, and authorize the City Attorney to prepare a Letter Agreement with the Developers to be executed by the City Manager and City Clerk, all subject to acceptance by the Surety. BACKGROUND INFORMATION: Attached is a copy of a letter received from Hawaii b San Francisco Investment Co. asking for a time extension and the reasons for their request. No work has commenced as of this date, and improvements are supposed to be completed by June 1, 1981. Under paragraph 5 of the development agreement, the City Council may unilaterally extend the time for completion of the improvements, however, it is fA t that we should also receive acceptance of the Surety to insure the continuation of improvement guarantees provided by the developers. There appears to be no reason that the time extension not be granted, and we are recommending City Council approval. Jac L. Ronsko Publ c Works Director cc: Glen Baumbach John H. Johnson Attach. APPROVED: HENRY A. CLAVES. City Manager FILE 40. HAWAsi & SAN FRANCISCO INVESTMENT COMPANY 107 J^CKSON STRECT 14151 666.4600 P. 0. ROX 3336 HAYWARD. CALIFORNIA 64540 coMTRACTORs uccxss No. 1717ss May 13, 1981 City of Lodi City Hall, 211 West Pine Street Lodi, CA 95240 ATTENTION: G. E. Robison RE: Las Casita s Unit /1 Dear Mr. Robison: Please consider this letter our request for a 12 -month extension of time in which to complete the subdivision improvements for the above referenced project. Construction of the project was not possible due to adverse economic conditions and excessively high interest rates. At this time it would be difficult to establish a schedule for construction in as much as we cannot anticipate how soon favorable economic conditions will occur. It is our intent and desire to begin the project within the next 12 months. Once a firm starting date can be established, we will contact you immediately. Your granting of this request will greatly be appreciated. Please contact me concerning the procedure and documents you will require concerning this request for extension. Very truly yours, HAWAII b SAN FRANCISCO INVESTMENT COMPANY ohn H. Johnson President JHJ/cjh cc: Glenn Baumbach (RECEIVE MAY 15 1981 Cff OF LOD1