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HomeMy WebLinkAboutMINUTES - 02062001 - C.116 Contra TO: REDEVELOPMENT AGENCY `, Costa ,i County FROM: Phil Batchelor: r U�' Executive Director DATE: February 6, 2001 SUBJECT: Assignment Agreement for Portion of Area 7B —li!I Pleasant Hill BART Station Area SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS APPROVE AND AUTHORIZE Deputy Director- Redevelopment to execute a Consent and Agreement between Prime Hospitality Corporation, a Delaware corporation and Spieker Properties, LP that will assign all rights and obligations for a portion of the property under a Disposition and Development Agreement dated June 26, 1986 as amended. FISCAL IMPACT i None. No General Funds are involved. CONTINUED ON ATTACHMENT: X YES SIGNATURE: RECOMMENDATION OF EXECUTIVE DIRECTOR ' I11 RECOM ENDATION OF AGENCY COMMITTEE APPROVE OTHER SIGNATURE(S): ACTION OF AGENCY ON February 6, 2001 APPROVED AS RECOMMENDED X OTHER VOTE OF COMMISSIONERS I HEREBY CERTIFY"THAT THIS IS A X UNANIMOUS (ABSENT none ) TRUE AND CORRECT COPY OF AN AYES: NOES: ACTION TAKEN AND ENTERED ON THE ABSENT: ABSTAIN: MINUT;1ES OF THE REDEVELOPMENT AGENCY ON THE DATE SHOWN. Contact: Jim Kennedy 335-1255 ATTESTED February 6, 2001 cc: Community Development PHIL BATCHELOR, 'AGENCY SECRETARY Redevelopment Agency County Counsel ', County Administrator via Redevelopment.Agency BY 0 , DEPUTY Spieker Property Prime Hospitality Goldfarb & Lipman WRersonalToard Orders and(ireenies\13(�)ARI).RDA.assign.agree.Pl-fBART.2.0Ldoe �� I I BACKGROUND/REASONS FOR RECOMMENDATIONS On June 26, 1986 the Redevelopment Agency "entered into a Disposition and Development Agreement for the development of Areas 7B and 8 at the Pleasant Hill BART Station Area. Said DDA was subsequently amended .in 1989 and 1998. The DDA was assigned to Sears Development Company(aka Homart Development) in 1989 as well. In 1997, the property was sold and the DDA was assigned to Lincoln Property Company No. 23;114 Limited Partnership. In 1998 a portion of the property was sold to Prime Hospitality, aka Amerisuites along with an Assignment of the DDA. Prime Hospitality has been unable to develop a financially feasible hotel, nor have other hotel vendors been able to accomplish a feasible privately financed hotel project. The financial difficulties have been reviewed by an independent hotel consultant to the Agency, who have ratified Prime Hospitality's conclusions. Spieker Properties', LP, the developer of Treat Towers (Area 10A), desires to purchase the property with the intent to develop an office project. An office use is allowed under the Pleasant Hill BART Area Specific!Plan subject to a modified Final Development Plan process'. The future office use,would integrate with Spieker's proposed office building on the northern portion of this development site. In order to accomplish the sale, the rights and obligations of the developer for the subject portion of the property, the DDA as amended need to be assigned to Spieker Properties, LP. Agency staff has reviewed the current credentials and financial,information regarding Spieker Properties, LP and have found that they meet the minimum requirements set forth in the DDA. WRersonahBoard Orders and Greenies\BOARD.RDA.assign.agree.PHBAR'r?.Ol.doc t