HomeMy WebLinkAbout2001-10-23 - AGENDA REPORTS - ALFRED MANN MOU (2)CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR
DATE: October 23, 2001
City Manager
Items to be presented
SUBJECT: ALFRED MANN MEMORANDUM OF UNDERSTANDING
DEPARTMENT: City Manager
RECOMMENDED ACTION
City Council to approve Memorandum of Understanding (M.O.U.) between the City of
Santa Clarita, California and Mann Biomedical Park regarding development of the North
Campus of the Rye Canyon Business Park.
BACKGROUND
Mr. Alfred E. Mann, the owner of Advanced Bionics and several other related biomedical
companies, intends to purchase the North Campus of the Rye Canyon Business Park and to
relocate his businesses on the property. The attached M.O.U. acknowledges the rights and
responsibilities of the developer and delineates a schedule for payment of up to $240,000 in
bridge and thoroughfare fees.
This action is in consideration of the 5-26-98 M.O.U. with Legacy Partners as successors in
interest to Lockheed Martin Corporation.
ALTERNATIVE ACTIONS
Other action as determined by the City Council.
FISCAL IMPACT
Fiscal impact outlined in the attached M.O.U.
ATTACHMENTS
Memorandum of Understanding
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Agenda Item:
MEMORANDUM OF UNDERSTANDING
THIS MEMORANDUM OF UNDERSTANDING, dated as of October—,
2001, is by and between THE CITY OF SANTA CLARITA, CALIFORNIA, a body
corporate and politic (the "City") and Mann Biomedical Park, LLC, a Delaware limited
liability company ("Mann"), with respect to the following facts:
RECITALS
A. W9/Rye North Realty, L.L.C. ("Rye North") owns certain land
commonly known as the North Campus of the Rye Canyon Business Park in the City of
Santa Clarita, California (the "City"). W9/Rye South Realty, L.L.C. ("Rye South") owns
land commonly known as the South Campus of the Rye Canyon Business Park. The
Rye Canyon Business Park (hereinafter the "Project") has previously received certain
approvals from the City and is subject to certain restrictions and conditions of approval
as more particularly described in (i) Pre -Annexation and Development Agreement No.
96-001, by and between Rye North's predecessor -in -interest Lockheed Martin
Corporation and the City, (ii) the Rye Canyon Business Park Program Final
Environmental Impact Report, Master Case No. 95-138, dated April 22, 1996, (iii)
Vesting Tentative Tract Map No. 51828, and (iv) that certain document titled Conditions
of Approval, Master Case No. 95-138, dated May 7, 1996 (collectively, the
"Development Documents").
B. Mann has agreed to acquire certain land within the Project
(hereinafter the "Property" or "North Campus") from Rye North and Rye South, and
thereafter Mann intends to develop the Property as a commercial and industrial
development. The balance of the Project (hereinafter the "South Campus") will be
retained and developed by Rye South and/or its successors -in -interest.
C. Rye South and Mann have entered into a Mutual Covenants
Agreement (the "Agreement") for the purpose of allocating certain rights and
responsibilities relative to the development of the Project as more particularly described
in the Agreement.
D. Mann and the City desire to enter into a separate agreement
whereby the City acknowledges the Agreement between Rye South and Mann and
agrees to apply the terms and conditions of the Development Documents in such a
manner that Rye South and/or its successor(s)-in-interest shall be responsible for the
terms and conditions of the Development Documents to the extent that they pertain to
the South Campus, and Mann and/or its successor(s}in-interest shall be responsible
for the terms and conditions of the Development Documents only to the extent that they
pertain to the North Campus, or as otherwise provided in the Agreement.
DRAFT
POINTS OF UNDERSTANDING
1. Agreement. The City hereby acknowledges the Agreement, a copy of
which is attached hereto as Exhibit 1.
2. Compliance With Terms and Conditions of Development Documents by
Owner(s) of North Campus. The City and Mann agree that Mann or its successor(s)-in-
interest shall be responsible for the terms and conditions of the Development Documents
to the extent, and only to the extent, that they pertain to the North Campus, and shall have
no responsibility for complying with certain conditions of approval as more particularly
described in the Agreement.
3. Non -Compliance With Terms and Conditions of Development Documents
by Owner(s) of South Campus. The City agrees that any failure by Rye South or its
successor(s)-in-interest to comply with the Agreement or any term or condition of the
Development Documents shall not prevent Mann or its successor(s)-in-interest from
developing the North Campus in accordance with the terms and conditions of the
Development Documents and the Agreement.
4. Development Rights. The City and Mann agree that, subject to the terms
and conditions of the Agreement and the Development Documents, the Project may
contain up to 4,000,000 square feet of office and/or industrial development, of which at
least 1,500,000 square feet may be developed on the North Campus, without regard to the
number of "trips" generated by future uses within the Project.
5. Bridge and Thoroughfare Fees The City agree and Mann agree that for the
first 333,333 square feet of new development on the North Campus, Mann shall not be
required to pay more than $240,000.00 for bridge and thoroughfare fees (`B&T Fees").
Within 30 days of the close of escrow of Mann's purchase of the Property, Mann shall
pay $120,000.00 to the City, which shall constitute full payment of B&T Fees for the first
250,000 square feet of new development on the North Campus. For any new
development that will result in the cumulative addition of more than 250,000 square feet
but no more than 333,333 square feet of new development on the North Campus, B&T
Fees shall be paid upon the issuance of a certificate of occupancy for such new
development at a rate not to exceed $1.44 per square foot for each square foot over
250,000 square feet of new development on the North Campus. For any new
development that will result in the cumulative addition of more than 333,333 square feet,
B&T Fees shall be paid at a rate of $1.44 per square feet at the issuance of a building
permit per the 5-26-98 Memorandum Of Understanding between the City and Lockheed
Martin Corporation. For purposes of this paragraph, the term "new development" shall
mean the total building floor area on the North Campus less 413,000 square feet, which is
the estimated amount of floor area existing on the North Campus as of the date of this
Memorandum of Understanding.
IN WITNESS WHEREOF the parties hereto have executed this
DRAFT
Memorandum as of the date first set forth above, to indicate that the foregoing accurately
expresses their discussions with respect to the subject matter hereof.
THE CITY OF SANTA CLARITA, CALIFORNIA
By: _
Name:
Its:
APPROVED AS TO FORM:
City Attorney
Name:
MANN BIOMEDICAL PARK, LLC
By: _
Name:
Its: