HomeMy WebLinkAbout2006-003 CRA
(JWF 1/17/06)
RESOLUTION NO. CRA 2006-003
A RESOLUTION OF THE COMMUNITY
REDEVELOPMENT AGENCY OF THE CITY OF SANTA
ANA APPROVING AN ACQUISITION AGREEMENT,
MUTUAL RELEASE AND JOINT ESCROW
INSTRUCTIONS WITH VINCI INVESTMENT CO., INC., A
CALIFORNIA CORPORATION, DOING BUSINESS AS
HONDA SANTA ANA.
BE IT RESOLVED BY THE COMMUNITY REDEVELOPMENT AGENCY OF
THE CITY OF SANTA ANA AS FOLLOWS:
Section 1. The Board of the Community Redevelopment Agency of the City of
Santa Ana hereby finds, determines and declares as follows:
A. In December 2003, Vinci Investment Co., Inc., Inc. dba Honda Santa Ana,
("Vinci") entered into an Agreement of Purchase with various members of the Joher
family (the "Vinci/Joher Agreement") for the purchase of the business and related assets
at 2101 East Edinger Avenue known as the Mr. J's Night Club and Cabaret (the "Joher
Assets").
B. On March 15, 2004, the Agency approved an Agreement for Acquisition of
Leasehold and other interests related to the Joher Assets under which the Agency
would acquire most of the Joher Assets immediately after close of ' the Vinci/Joher
Agreement.
C. The Agency's Executive Director and Vinci previously signed term sheet
dated January 21, 2004 (the "Term Sheet") outlining the terms and conditions of a
potential Disposition and Development Agreement ("DDA") to be negotiated between
the Agency and Vinci following acquisition of the Joher Assets. The term sheet
contemplated, among other things, acquisition of the fee interest in the property
underlying the Joher Assets (the "Erickson Property.") ,
D. The Joher Sellers breached the Vinci/Joher Agreement. Vinci initiated and
successfully prosecuted litigation against the Joher Sellers to compel performance of
the Joher Sellers' contractual obligations to Vinci under the Vinci/Joher Agreement (the
"Joher Litigation").
E. Due to the delays and expenses created by the Joher Litigation, the
Agency terminated the AgencyNinci Agreement on August 19, 2005. '
F. Vinci disagrees that the Agency properly terminated the AgencyNinci
Agreement. Additionally, the Agency and Vinci disagree as to the binding effect of the
Term Sheet, insofar as the Agency contends that the Term Sheet is merely a non-
binding letter of intent.
Resolution 'No. eRA 2006-003
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G. Vinci has now settled the Joher Litigation and acquired the Joher Assets.
H. The Agency and Vinci desire to resolve their differences and in doing so
carry out the intent of the AgencyNinci Purchase Agreement and the Term Sheet.
Section 2. That certain Acquisition Agreement, Mutual Release And Joint Escrow
Instructions, including all attachments and related documents and schedules submitted
to the Agency Board at the time of consideration of this resolution is hereby approved,
except reducing by $25,000 that amount set forth in Paragraph 4 of the Agreement
related to payment of claims for Extraordinary Expenses. The Agency's Executive
Director and General Counsel are hereby authorized to make such non-substantive
changes to the documents as they may deem necessary or advisable in order to carry
out the intent the of agreement and this resolution. .
Section 3. The Negative Declaration, Environmental Review No, 2003-149
was previously approved.
Section 4. This Resolution shall take effect immediately upon its adoption by
the Agency Board, and the Secretary of the Agency shall attest to and certify the vote
adopting this Resolution.
ADOPTED this 1 ih day of Januarv. 2006.
APPROVED AS TO FORM:
Joseph W. FI
A eral Counsel
Resolution No. eRA 2006-003
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AYES:
Boardmembers: Bustamante.Garcia, Pulido, Solorio (4)
NOES:
Boardmembers: Bist. Alvarez (2)
ABSTAIN:
Boardmembers: Christv (1)
NOT PRESENT: Boardmembers:
None (0)
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, PATRICIA E. HEALY, Secretary of the Agency, do hereby attest to and certify the
attached Resolution No. 2006-003 to be the original resolution adopted by the
Community Redevelopment Agency of the City of Santa Ana on January 17, 2006.
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Date:
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~ Recording Secretary _
Community Redevelopment Ag,ency
City of Santa Ana
Resolution No. eRA 2006-003
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