The URL can be used to link to this page

Home My WebLink About1990-03-13 - AGENDA REPORTS - WATT AMERICA/CIRCLE J AGMT (2)AGENDA REPORT City Manager Approva Item to be presented by: CONSENT CALENDAR John E. Medina DATE: March 13, 1990 SUBJECT: WATT AMERICA/CIRC fj,� AGREEMENT MODIFICATION DEPARTMENT: Public Works BACKGROUND ' On June 27, 1989, the City Council entered into an agreement with Watt America which Council approved Tract Map 44452 in the Circle J area in exchange for the construction of an emergency access route by Watt America (Ridgedale Partners). The agreement also had provisions for the execution of a Development Agreement between the City and Watt America, which involved funds for the construction of Rio Vista Road in exchange for development rights for the remainder of the Circle J property. It was initially believed by staff, as well as the developer, that the Development Agreement could be executed before the 82 units, which were to be constructed as part of Tract 44452, would be ready for occupancy. After several meetings and good faith efforts by the City, as well as the developer, it has now become clear that the Development Agreement will take more time than we had originally anticipated. Watt America has suggested that the issues regarding the Development Agreement from the issue of occupancy for the 82 single family dwellings currently under construction be separated. Staff feels that separation of these two aspects of the Temporary Emergency > Access and Improvement Agreement is warranted. Providing sufficient time to study all of the issues in the proposal will result in a Development Agreement that will be more beneficial to both parties. Watt America has completed the emergency access road from Via Princessa to 13th Street, and is operational for emergency purposes. Since this satisfies the emergency access concern by the City and residents in Circle J, it is felt that the 82 units should be released for occupancy. In addition, Watt America has indicated that they would provide the following: 1) Donate and deliver 1,000 trees to the City; 2) Donate to the School Districts the sum of $100,000 to be used by the Districts as they deem appropriate; and 3) Donate to the City $250,000 for road purposes to be used at the City's discretion. �� Agenda Item: Watt America/Circle J March 13, 1990 Page 2 9 We believe that the completion of the emergency access road and the three items enumerated above certainly demonstrate a good faith effort on the part of Watt America to resolve this issue. The release of occupancy for the 82 units will not have any significant effect on traffic circulation within the area. RECOMMENDATION The City Council approve the counter proposal from Watt America as enumerated in the attached letter dated March 6, 1990, and direct the City Attorney to draft an amendment to the Emergency Access and Improvement Agreement which would: 1. Separate the release for occupancy of the 82 units; 2. Incorporate the additional offers numerated above by Watt America; and 3. Provide provisions that the Development Agreement would be negotiated by both parties without a specific time by which the agreement must be executed. ATTACHMENT Letter from Elizabeth Watson representing Watt America. ARTHUR N. GREENBERG PHILIP GLUSKER SIDNEY J. MACHTtNGER STEPHEN CLAMAN BERTRAM FIELDS HARVEY R. FRIED MAN BERNARD SHEARER JON J. GALLO PAULA J. PETERS MICHAEL K. COLLINS JOHN L. CHILD C. BRUCE LEVINE MICHAEL A. GREENS JOSEPH M. CAHN GARRETT L. HANKEN NORMAN H. LEVINE WILLIAM A. HALAMA JAMES E. HORNSTEIN ROBERT 5. CHAPMAN ROBERT F, MARSHALL ROBERT E. BENNETT, JR. MARC S. COHEN CHARLES N. SHEPHARD DENNIS B. ELLMAN GARY L. KAPLAN ROBERT W. BARNES LAWRENCE Y. ISER MARTIN H. WEBSTER MICHAEL V. BALES LAW OFFICES OF GREENBERG, GLUSKER, FIELDS, CLAMAN SI MACHTING,ER HENRY D. FINKELSTEIN GLENN A. DRYFOOS ROBERT L. MURPHYLISA S. EHRLICH DIANE J. CRUMPACKER ANDREA L. MERSEL JEAN MORRIS CARRIE A. GOLDSTEIN ELIZABETH WATSON JAMES M. HOROWITZ ELIZABETH G. CHILTON LAWRENCE A. EPTER JILL A. COSSMAN ANDREW S. GABRIEL VICTOR H. MELLON STEVEN J. LURIE LILIANNE G. CHAUMONT CHRISTINA E. METCALF PETER J. NIEMIEC KATHLEEN A. O'BRIEN CHRISTINA M. JACOBS ROBERTA M. WOLFF LOUISA L. NELSON BRIAN L. EDWARDS LEE A. DRESIE GERALD L. SAUER DEBBY R. ZURZOLO JULIA A. MONTGOMERY ROGER L. FUNK DEBRA A. WONG JEFFREY A. GALOWICH JILL E. BURTIS BRIAN J. APPEL KAREN D. BUTTWINICK DAVID C. KLEIN DARRYL W. CLUSTER JEFFREY SPITZ KELLY A. COLEMAN MARK A. GOCHMAN NANETTE L. FELDMAN NANCY C. H51EH GLENN E. LERMAN THEODORE F. KAHAN ELIZABETH M. PRIESTLEY AUDREY A. MILLEMANN JILL L. SMITH EVE H. WAGNER BEVERLY G. CREASY MICHAEL B. AFRICK OF COUNSEL MICHAEL R. BENNETT E. BARRY HALDEMAN SANDRA A. DEWEY MARK A. STANKEVICH March 6, 1990 Mary Redus Gayle, Esq. Berke, Williams & Sorensen 2310 Ponderosa Drive, Suite One Camarillo, California 93010 Re.: Watt -America, Inc./Circle J Propert Dear Ms. Gayle: 1900 AVENUE OF THE STARS SUITE 2000 LOS ANGELES, CALIFORNIA 90067 TELEPHONE: (213) 553-3610 TELEX (TWX): 910-490.1129 FAX: (213) 553.0687 WRITER'5 DIRECT DIAL NUMBER (213) 201-7439 OUR FILE NUMBER: 92470-007.02 With reference to your letter dated February 28, 1990, on behalf of our client, Watt -America, Inc., we wish to present the following proposal to the City for the release of the occupancy permits for Tract No. 44452 of the above -referenced property: 1. Ridgedale will donate and deliver 1,000 trees to the City in groups of 50. In order to assure proper care and maintenance of such trees, the City shall plant them in locations acceptable to the City. Ridgedale shall permit qualified City Parks Department officials to select the trees of its choice from the Ridgedale tree farm. 2. Ridgedale will donate $100,000 to the local school district and, upon such payment by Ridgedale, the City shall deliver to Ridgedale a letter releasing all lots of Tract 44452 for occupancy. 3. Concurrently with the payment of item 2 above, Ridgedale will contribute $250,000 to the City for road purposes, upon payment of which the City shall deliver to Ridgedale a letter releasing all of the lots of Tract 44452 for occupancy. RECEIV54_ MAK-61J,4 Burke, Williams & Soitn§BP GREENBERG, GLUSKER, FIELDS, CLAMAN & MACHTINGER Mary Redus Gayle, Esq. March 6, 1990 Page 2 Any further communications regarding the above-described proposal may be directed to Richard Urso, and, in the interest of expediency, any remaining issues can be resolved between Richard Urso and John Medina. We share the City's view that, due to the many unexpected delays in the negotiation and completion of the Circle J development agreement, the occupancy permits for Tract 44452 should be addressed independently. However, it is in a spirit of cooperation and compromise that Ridgedale has proposed the three items outlined above. These contributions far exceed the standard requirements for the release of occupancy permits. Accordingly, in the City's later consideration of the development agreement for the remainder of the Circle J property, these extraordinary contributions must be acknowledged and recognized. erely, zabeth Watson EW/vsc cc: Richard S. Urso John Medina