The URL can be used to link to this page

Home My WebLink AboutMINUTES - 02231988 - 1.114 TO: REDEVELOPMENT AGENCY FROM: PHIL-- BATCHELOR, Contra EXECUTIVE DIRECTOR Costa DATE: February 11, 1988 Cour"1 SUBJECT: First Amendment to the Disposition and Development Agreement with Embassy Suites, Inc. in the Pleasant Hill BART Station Redevelopment Project Area. SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS . Approve the first Amendment to the Disposition and Development Agreement with Embassy Suites, Inc. in the Pleasant Hill BART Station Redevelopment Project Area and authorize the Executive Director or his designee to execute the Amendment. FISCAL IMPACT None BACKGROUND/REASONS FOR RECOMMENDATIONS The Disposition and Development Agreement with Embassy.Suites, Inc. _ presently in effect, allows Embassy Suites, Inc. to construct a 288 room, 216,500 square foot hotel at the northwest corner of Oak Road and Treat Boulevard in the Pleasant Hill BART Station Redevelopment Project Area. The First Amendment includes the definition of several terms in order to more adequately clarify the developers obligations. Additionally the First Amendment \acknowledges that the developer is utilizing one of two. one-year automatic extensions allowed in the DDA and is therefore amending the Development Schedule. This First Amendment does not result in any increase in development potential. CONTINUED ON ATTACHMENT: YES SIGNATURE: RECOMMENDATION OF EXECUTIVE DIRECTOR RECOMMENDATIONGENCY ITTEE APPROVE OTHER SIGNATURE(S) : ACTION OF AGENCY ON February 23 , 1988 APPROVED AS RECOMMENDED X OTHER VOTE OF COMMISSIONERS I HEREBY CERTIFY THAT THIS IS A X UNANIMOUS (ABSENT ) TRUE AND CORRECT COPY OF AN AYES: NOES: ACTION TAKEN AND ENTERED ON THE ABSENT: ABSTAIN: MINUTES OF THE REDEVELOPMENT AGENCY ON THE DATE SHOWN. cc: Redevelopment Director ATTESTED February 23 , 1988 PHIL BATCHELOR, AGENCY SECRETARY O BY , DEPUTY Recording Requested By and when Recorded Mail To: Jerry Raycraft Contra Costa County Redevelopment Agency 651 Pine Street 4th Floor, North Wing Martinez, CA 94553 FIRST AMENDMENT TO DISPOSITION AND DEVELOPMENT AGREEMENT This First Amendment to Disposition and Development Agreement (the "First Amendment") is made this day of 1987 , by and between the Contra Costa County Redevelopment Agency ("Agency") , and Embassy Suites, Inc. , a Delaware corporation ("Developer") with reference to the following facts : A. The Agency has adopted the Pleasant Hill BART Station Area Redevelopment Plan (the "Plan") recorded at Book 11896, Page 123 of the Official Records of Contra Costa County, in order to provide for the redevelopment of the project area governed by the Plan (the "Project Area") . B. The Agency and the Developer have entered into a Disposition and Development Agreement dated April 30 , 1987 , and recorded on May 1 , 1987, in the Official. -1- Records of Contra Costa County at Book 13616 Page 472 .(the "DDA") . C. Pursuant to the DDA, Developer has agreed to redevelop the property described in Exhibit A attached hereto (the "Property") . D. Pursuant to the DDA, the Developer is to construct a ten story approximately 288 room hotel on the Property in accordance with the development schedule attached to the DDA as Exhibit D. Because of changing market conditions, the Developer and the Agency desire to amend the DDA development schedule. E. The Developer plans to transfer the Property and its rights and obligations under the DDA to another developer. The Agency desires to ensure that in the event such transfer is approved by the Agency and occurs, the Developer, or another entity of equal experience and reputation in hotel management as the Developer, continues to manage the Property. F. The Agency and the Developer desire to amend the DDA as set forth below. NOW, THEREFORE, the Agency and the Developer agree as follows: -2 1 . Definitions : Unless otherwise defined herein, capitalized terms shall have the same meanings as set forth in the DDA. 2. Exhibit D. Exhibit D to the DDA shall be deleted in its entirety and replaced with Exhibit B attached to this First Amendment and incorporated herein. The parties hereby acknowledge and agree that Developer has utilized one automatic one-year extension of time of the final dates set forth in the DDA Development Schedule, as provided in Section 8 .04 of the DDA, and that one additional automatic one year extension of time pursuant to Section 8 . 04 of the DDA remains for Developer' s use. 3 . Operation of Improvements. Section 3 .05 shall be added to the DDA and shall read in its entirety as follows: 3 .05 Operation of Improvements. The Improvements shall be operated by Embassy Suites, Inc. , a Delaware corporation, for the entire period prior to expiration of the Redevelopment Plan, pursuant to a Management Agreement to be approved by the Agency, unless another hotel operator is approved in writing by the Agency. Agency agrees to approve an alternate hotel operator which is comparable in experience and reputation to Embassy Suites, Inc. , and which has the financial capacity reasonably necessary to operate the Improvements. 4 . Management Agreement. Section 3 .06 shall be added to the DDA and shall read in its entirety as follows: -3- r 3 .06 Management Agreement. Any proposed Management Agreement between Developer and a hotel operator for operation of the Improvements and any proposed amendment to an existing Management Agreement shall provide for operation of the Improvements in a commercially reasonable manner in accordance with quality standards acceptable to the Agency and shall be submitted to the Agency for review and approval prior to execution of such Management Agreement or amendment. Agency consent to a proposed Management Agreement or amendment shall not be withheld unreasonably. 5. Remainder of DDA. Except as provided above in this First Amendment, the DDA shall remain unamended and in full force and effect. This First Amendment does not constitute approval by the Agency of any transfer by Developer of the Property or of Developer' s rights and obligations under the DDA. WHEREFORE, the Agency and the Developer have executed this First Amendment on or as of the date first above written. CONTRA. COSTA COUNTY REDEVELOPMENT AGENCY By: James Kennedy Deputy Executive Director EMBA SY SUITES, INC. By: Its: (.'i 12/08/87 #B012/B32001 -4- f. EXHIBIT B DEVELOPMENT SCHEDULE Action Final Date 1 . Application for December 31 , 1988 building permit for all Improvements 2. Commencement of Six months following construction of the issuance of building Improvements permit 3 . Completion of 30 months after commencement construction of of construction of the Improvements Improvements -5- STATE OF TEXAS ) ss. COUNTY OF, DALLAS ) On this �day of X1987, before me, the undersigned, a Notary Public in and for said state, personally appeared Steven T. Schultz , Vice President of Embassy Suites , Inc. personally known to me, or proven to me to be the person whose name is subscribed to the foregoing instrument and acknowledged that they have executed the same. (Seal) - Notary,,' Public QERYt R. �' u' t, NOTARY PUBLIC STATE OF TEXAS COMMISSION EXPIRES' 11-12-89 Name (typed or printed) My commission expires :