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HomeMy WebLinkAboutSPJT Minutes 1991-05-20SRRA/SRCC MINUTES (Special 19int) 5/20/91 Page 1 (GOLDS TATE LUMBER) iii THE COUNCIL CHAMBERS OF THE CITY OF SAN RAFAEL, MONDAY, MAY 20, 1991, AT 7:30 P.M. -pecial Joint Meeting: Present: Dorothy L. Breiner, Vice-Chairman/Vice-Mayor ban Rafael Redevelopment Agency and Albert J. Boro, Member/Councilmember San Rafael City Council Michael A. Shippey, Member/Councilmember Joan Thayer, Member/Councilmember Absent: Lawrence E. Mulryan, Chairman/Mayor Also Present: Pamela J. Nicolai, Executive Director/City Manager Gary T. Ragghianti, Agency Attorney/City Attorney Jeanne M. Leoncini, Agency Secretary/City Clerk SPECIAL JOINT PUBLIC HEARING TO CONSIDER AMENDMENTS TO PURCHASE AGREEMENT WITH LEE NOBMANN FOR AGENCY OWNED PROPERTY LOCATED ON ANDERSEN DRIVE IN SAN RAFAEL (GOLDEN STATE LUMBER) (RA) - File R-261 x R-254 x R-187 x R-217.x_(5RCC) 140 SAN RAFAEL REDEVELOPMENT AGENCY 1. A RESOLUTION OF THE SAN RAFAEL REDEVELOPMENT AGENCY APPROVING AMENDMENT OF THE PURCHASE AGREEMENT WITH LEE NOBMANN CITY COUNCIL 2. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL APPROVING AMENDMENT OF THE PURCHASE AGREEMENT WITH LEE NOBMANN Vice-Chairman/Vice-Mayor Breiner declared the Public Hearing opened. Assistant Executive Director'(Redevelopment) Ours briefed the Agency/Council, stating that in March of 1990 the Agency entered into an agreement with Mr. Lee Nobmann, owner of Golden State Lumber -Company, for the purchase of Agency -owned property on Andersen Drive. The Purchase Agreement called for Mr. Nobmann to purchase five acres of Agency -owned property no later than April of 1993 for $2,435,000, in order to relocate Golden State Lumber from West Francisco Boulevard to Andersen Drive. Mr. Ours informed the Agency/Council that Mr. Nobmann has requested, and staff recommends, that the Agreement be amended to allow for the purchase of the Andersen Drive property in the next 30 to 60 days, with a Deed of Trust. Mr. Ours explained that under the terms of the Agreement, as amended, the purchase price would remain at $2,435,000, and would be paid as follows: $900,000 in cash at the close of escrow and the balance in a note due and payable no later than May 31, 1993. Under the terms of the original Purchase Agreement, the entire purchase price was to be paid in cash at the close of escrow; however, close of escrow could have been delayed by the developer until April of 1993. Member/Councilmember Shippey inquired as to the reason for Mr. Nobmann's request to move up the date of purchase. Mr. Ours stated it is a question of cash flow. Mr. Lee Nobmann, owner of Golden State Lumber, informed the Agency/Council that because of the difficulty in getting financing, he was obliged to sell property in Napa in order to finance the Andersen Drive property. He stated that the City moves from a leasing position to holding a First Deed of Trust. He stated he is offering 10% instead of 9% interest. He noted that the City will also hold a Deed of Trust on the improvements. He added that his offer to the City is recession related. Member/Councilmember Boro inquired about the status of Toys -R -Us, and Mr. Nobmann responded that he had flown back to New York to finalize the paperwork on Toys -R -Us, and they are ready to go, probably within the next 30 to 60 days. He added that since he was putting a metal building on leased land (Golden State Lumber) he could riot get financing for that project. There being no further public input, the Public Hearing was closed. REDEVELOPMENT AGENCY Member Thayer moved and Member Boro seconded, to adopt the Resolution approving amend- ment of the Purchase Agreement with Lee Nobmann. RESOLUTION NO. 91-12 - APPROVING AMENDMENT OF THE PURCHASE AGREEMENT WITH LEE NOBMANN AYES: 14EMBERS: Boro, Shippey, Thayer & Vice -Chairman Breiner NOES: MEMBERS: None ABSENT: MEMBERS: Chairman Mulryan SRRA/SRCC MINUTES (Special Joint) 5/20/91 Page 1 (GOLDEN STATE LUMBER) SRRA/SRCC MINUTES (Special int) 5/20/91 Page 2 (GOLDEN STATE LUMBER) CITY COUNCIL Councilmember Shippey moved and Councilmember Boro seconded, to adopt the Resolution approving amendment of the Purchase Agreement with Lee Nobmann. RESOLUTION NO. 8399 - APPROVING AMENDMENT OF THE PURCHASE AGREEMENT WITH LEE NOBMANN AYES: COUNCILMEMBERS: Boro, Shippey, Thayer & Vice -Mayor Breiner NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: Mayor Mulryan There being no further business, the meeting was adjourned. 40 A. JEANN . LEONCINI, Ag ncy Secretary/ City Clerk APPROVED THIS DAY OF , 1991 DOROTHY L. BREINER, Vice -Chairman, San Rafael Redevelopment Agency Vice -Mayor of the City of San Rafael