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Public Works Agency <br />www.santa-ana.org/public-works <br />Item # 11 <br />City of Santa Ana <br />20 Civic Center Plaza, Santa Ana, CA 92701 <br />Staff Report <br />December 3, 2024 <br />TOPIC: Purchase and Sale Agreement for 2235 South Bristol Street <br />AGENDA TITLE <br />Amend Purchase and Sale Agreement with Santana Green Development, LLC to <br />Extend the Deadline to Open Business at 2235 South Bristol Street by 18 Months <br />RECOMMENDED ACTION <br />Authorize the City Manager to execute the first amendment to the agreement with <br />Santana Green Development, LLC to extend the deadline to open for business to the <br />public a drive-thru restaurant or fuel station with integrated electric vehicle charging <br />station at 2235 South Bristol Street by 18 months (Agreement No. A-2024-XXX). <br />GOVERNMENT CODE §84308 APPLIES: Yes <br />DISCUSSION <br />On December 21, 2021, the City Council authorized the City Manager to execute a <br />purchase and sale agreement for the sale of remnants at 2235 South Bristol Street <br />(Exhibits 1 and 2) to Santana Green Development, LLC (Developer). The deed <br />transferring the property from the City to the developer was recorded on July 1, 2022. <br />The purchase and sale agreement (PSA) included a provision in Section 6.24 to ensure <br />the timely development of the remnant property as a drive-thru restaurant or fuel station <br />with an integrated electric vehicle charging station. This provision, referred to as the <br />"Opening Covenant", allowed for the City to buy back the property in the event the <br />proposed development was not open for business within 30 months following close of <br />escrow. The Opening Deadline, pursuant to the provisions of the PSA, would be <br />January 1, 2025. <br />Although City staff and the Developer have worked diligently and cooperatively to <br />advance the project, the current status of the development indicates that the intended <br />opening date will not be met due to project refinements lengthening the development <br />timeline. <br />The proposed agreement amendment (Exhibit 3) extends the allowable timeframe in the <br />Opening Covenant from 30 months to 48 months, an increase of 18 months. This <br />extension would provide sufficient time to complete the project entitlements process, <br />