HomeMy WebLinkAboutAgenda Report - June 30, 2020 B-02 SMAGENDA ITEM B-7
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AGENDA TITLE:
MEETING DATE:
PREPARED BY:
Authorize City Manager to execute a Letter Directed to Wal-Mart Real Estate Business
Trust and BDC Lodi lll L.P. Acknowledging that the Condition set forth in Resolution
No. 2009-58 as "Use Permit and Tentative Map", paragraph 4.HH, is Solely the
Obligation of BDC Lodi lll L.P.
June 30, 2020 Cily Council Special Meeting
City Manager
RECOMMENDED ACTION: Authorize City Manager to execute a letter directed to Wal-Mart Real
Estate Business Trust and BDC Lodi lll L.P. acknowledging that the
condition set forth in Resolution No. 2009-58 as "Use Permit and
Tentative Map", paragraph 4.HH, is solely the obligation of BDC Lodi lll L.P.
BACKGROUND INFORMATION: The City Council adopted Resolution No. 2009-58 on May 13, 2009,
approving Use Permit File No. U-02-12 to allow the construction of a commercial shopping center in the C-S
Zone and allow the sale of alcoholic beverages at the Wal-Mart Supercenter; approving the Tentative Parcel
Map 03-P-001 to create 12 parcels for the project relating to the Lodi Shopping Center; and providing the
architectural approval of a new commercial building to be constructed at 2640 West Kettleman Lane (Wal-
Mart).
The shopping center, known as Sunwest Village Shopping Center, is located at the southwest corner of West
Kettleman Lane and Lower Sacramento Road, has been constructed and is operational pursuant to the
conditions and approvals set forth in Resolution No. 2009-58. One condition, identified as "Use Permit and
Tentative Map", paragraph 4HH, remains outstanding. The condition reads as follows:
HH. The developer shall invest in a building and/or capital improvements within the Downtown area,
as defined by the Community Development Director, but no smaller than the area described in the
June 1997 Downtown Development Standards and Guidelines plus the Pine Street Corridor extending
to Washington [Street]. lnvestment shall be defined as supporting construction, rehabilitation,
acquisition, tenant improvements and other improvements. The developer may make or support
improvements to commercial buildings or property it owns or rents independently or in partnership with
others, or to commercial property owned by others in partnership with owners and /or tenants. The
downtown investment must be made no later than seven and a half (7.5) years from the issuance of
the final certificate of occupancy for the largest retail tenant. The total aggregate value of the capital
improvements resulting from developer's investment must exceed $700,000.
It has been the City's position since adoption of Resolution No. 2009-58 that "developer" as used in condition
4HH, refers to Browman Development Company, the project applicant, now known as BDC lll L.P. Wal-Mart
Real Estate Business Trust has requested that the City issue a letter acknowledging its position that condition
4HH with regard to economic investment in the downtown is the sole obligation of BDC lll L.P. and releasing
Walmart of any obligation to satisfy the condition. Staff therefore recommends that the City Council authorize
the City Manager to execute a letter, in the form attached hereto, directed to Wal-Mart Real Estate Business
Trust and BDC lll L.P., acknowledging that the condition set forth in Resolution No. 2009-58 as "Use Permit
and Tentative Map", paragraph 4HH, is the sole obligation of BDC Lodi lll L.P
FISCAL IMPAGT: N/A
City Manager
Prepared by: Janice D. Magdich, City Attorney
APPROVED
City Manager
CITY COUNCIL
DOUG KUEHNE, Mayor
ALAN NAKANISHI,
Mayor Pro Tempore
MARK CHANDLER
JOANNE MOUNCE
CITY OF LODI
2015 “Wine Region of the Year”
CITY HALL, 221 WEST PINE STREET
P.O. BOX 3006
LODI, CALIFORNIA 95241-1910
(209) 333-6702 / FAX (209) 333-6807
www.lodi.gov cityclerk@lodi.gov
STEPHEN SCHWABAUER
City Manager
PAMELA M. FARRIS
Assistant City Clerk
JANICE D. MAGDICH
City Attorney
June 30, 2020
W al-Mart Real Estate Business Trust
2608 SE J Street
Bentonville, AR 72712
BDC Lodi III L.P.
1556 Parkside Drive
Walnut Creek, CA 94596
Attn: Darryl Browman, President
and Mario Albert, General Counsel
RE: Lodi Downtown Investment Obligation - Resolution No. 2009-58
To Whom it May Concern:
Reference is hereby made to the Conditions of Approval for the “Sunwest
Village Shopping Center” located in the City of Lodi (“City”), at the southwest corner of
West Kettleman Lane and Lower Sacramento Road (“Project”). The Project was
approved by the City Council pursuant to Resolution No. 2009-58. Paragraph 4.HH of
the Conditions of Approval in Resolution No. 2009-58, under the heading “Use Permit
and Tentative Map”, requires that a $700,000 investment be made in the Downtown
area of the City of Lodi, within 7.5 years from the issuance of a certificate of
occupancy for the largest retail tenant of the Project (“Downtown Investment
Obligation”). Wal-Mart Real Estate Business Trust, a Delaware statutory trust, and
Walmart Inc., a Delaware corporation (collectively, and with all of their affiliated
entities, “Walmart”) owns and operates a Walmart Supercenter in the Project on
Parcel 12, of the Parcel Map filed with San Joaquin County, on August 28, 2015, in
Book 26 of Parcel Maps, Page 29 (“Walmart Property”). BDC Lodi III, LP, a
California limited partnership (and with all of their affiliated entities, “BDC”), owns the
balance of the Project.
Pursuant to authority of the City Council, this letter shall serve as a written and
binding determination of the City that: (i) as between the City of Lodi, Walmart and
BDC, the Downtown Investment Obligation set forth in Resolution No. 2009-58 (under
the heading “Use Permit and Tentative Map” paragraph 4.HH, as described above, is
solely the obligation of BDC; (ii) Walmart has no obligation with respect to the
Downtown Investment Obligation; and (iii) the City will not pursue Walmart, or any
other owner of the Walmart Property, with respect to the Downtown Investment
Obligation, notwithstanding any failure by BDC comply with the Downtown Investment
Obligation. In this regard, the City hereby releases, waives, and forever discharges
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Walmart.docs.doc
Walmart and the Walmart Property from any claims, demands, liabilities or obligations,
arising out of the Downtown Investment Obligation.
Sincerely,
Stephen Schwabauer
City Manager
City of Lodi
ACKNOWLEDGED AND AGREED TO:
“BDC”
BDC Lodi III L.P., a California limited partnership
By: Western Pacific Holdings, Inc.,
a California corporation
Its: General Partner
By: _________________________________
Darryl Browman, President
“WALMART”
WAL-MART REAL ESTATE BUSINESS TRUST,
a Delaware statutory trust
By: _________________________________
Its: _________________________________
WALMART INC., a Delaware corporation
By: ________________________________
Its: ________________________________