HomeMy WebLinkAboutCC Resolution 8225 (2nd & Lindaro Property)RESOLUTION NO. 8225
CITY COUNCIL OF THE CITY OF SAN RAFAEL
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN
RAFAEL APPROVING REVISION OF THE DISPOSITION AND
DEVELOPMENT AGREEMENT PROVIDING FOR THE AGENCY'S
SUBLEASE OF PROPERTY AT SECOND AND LINDARO STREETS IN
THE CITY OF SAN RAFAEL TO LINDARO ASSOCIATES, PURSUANT
TO HEALTH AND SAFETY CODE SECTION 33433.
Whereas, the San Rafael Redevelopment Agency ("Agency")
staff has proposed that the City Council approve revision of the
Disposition and Development Agreement ("DDA") between the Agency
and Lindaro Associates ("Developer") for development of property
located at Second and Lindaro Streets, which was approved and its
execution authorized by Agency Resolution No. 89-32 and City
Council Resolution No. 8010 on July 17, 1989, but has not yet
been executed.
Whereas, the DDA provides for the Agency to sublease to
Developer for 99 years certain property at Second and Lindaro in
San Rafael that the Agency will lease from Pacific Gas & Electric
Company ("PG&E").
Whereas, under the terms of the DDA, as initially approved
by the Agency and the City, (1) the Developer would pay annual
rent for the first 49 years beginning at $100,000 in the first
year and increasing periodically so that the annual rent would
reach $900,000 in the 49th year, (2) after the 49th year, the
rent would be the fair market rent, and (3) the Developer would
pay initial rent of $1 million at the beginning of the term of
the sublease contemplated by the DDA ("Sublease").
Whereas, the DDA and the Sublease it contemplates are now
proposed to be revised so that the Developer would not be
required to pay any initial rent upon the commencement of the
term of the Sublease.
Whereas, revision of the DDA and the Sublease is made
necessary by, among other things, changes in economic conditions
in the retail sales and entertainment industry which reduce the
amount of income the Developer will receive from development and
leasing of the property and affect the economic feasibility of
the development and the amounts of rent that can be paid under
the Sublease.
Whereas, the Agency has given the notice, has made available
for public inspection the report ("Section 33433 Report") and a
copy of the revised DDA with a copy of the revised Sublease
attached to the DDA as Exhibit B, and has held with the City
Council a joint public hearing as required by Health and Safety
Code Section 33433 for approval of the revision.
Whereas, the City Council has considered the evidence and
testimony presented at the public hearing before the Agency and
the City Council.
NOW, THEREFORE BE IT RESOLVED as follows:
Section 1. Based on the Section 33433 Report prepared in
conjunction with the joint Agency and City Council hearing on the
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ORIGINAL
revision, the City Council finds that the rent Lindaro Associates
is to pay for the Property pursuant to the revised Sublease
contemplated by the revised DDA is at least equal to the fair
market rent for the Property determined at the highest and best
uses permitted under the Redevelopment Plan.
Section 2. The City Council hereby approves the revision to
DDA and the Sublease.
I, Jeanne M. Leoncini, City Clerk of the City of San Rafael,
hereby certify that the foregoing resolution was duly and
regularly introduced and adopted at a special meeting of the City
Council on the 27Vh day of August, 1990, by the following vote, to
wit:
AYES: COUNCILMEMBERS: Shippey, Thayer & Mayor Mulryan
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: Boro & Breiner
Sr M. E NeI&NI-Lc.v��
JEl� (� M. LEON INI
City Clerk