HomeMy WebLinkAbout1 - NEXUS DEVELOPMENT
CITY COUNCIL MEETING DATE:
CLERK OF COUNCIL USE ONLY:
REQUEST FOR
COUNCIL ACTION
JUNE 9, 2006
TITLE:
ASSIGNMENT OF CERTAIN RIGHTS, OWNERSHIP
AND SECURITY INTEREST IN THE COOPERATIVE
AGREEMENT FOR OFF-SITE IMPROVEMENTS BY
NEXUS DEVELOPMENT AND THE GRAND PLAN 2
FOR THE NEXUS DEVELOPMENT PROJECTS AT
MACARTHUR PLACE SOUTH
APPROVED
o As Recommended
o As Amended
o Ordinance on 1 st Reading
o Ordinance on 2nd Reading
o Implementing Resolution
o Set Public Hearing For
O~a~-
CITY MANAGER
CONTINUED TO
FILE NUMBER
RECOMMENDED ACTION
Direct the City Attorney to prepare and authorize the City Manager and
Clerk of the Council to execute written consent approving the assignment
of certain rights, ownership and security interests in Cooperative
Agreement for Off-site Improvements by Nexus Development and The Grand
Plan 2 with such nonsubstantive changes as may be approved by the City
Manager and City Attorney as to form.
DISCUSSION
On June 20, 2005, the City/Redevelopment Agency approved a Cooperative
Agreement for Off-Site Improvements in conjunction with the MacArthur
Place South development. Parties of this agreement included the City,
the Redevelopment Agency, the Nexus Companies, Coastal Rim Properties and
the Sandpointe Neighborhood association. The agreement provided a
mechanism to fund various off - si te improvements wi thin the Sandpointe
neighborhood such as new block walls, window replacements, improvements
at Taft Elementary School, traffic mitigation and utility undergrounding.
Section 19 of the agreement also provides that either the Nexus Companies
or Geneva Commons may transfer or assign their respective rights granted
under the agreement. Such transfers or assignments require written
consent of the City Council.
The financing of the Nexus project will involve the transfer of project
ownership from The Grand Plan 2, LLC to NDC Skyline Associates, LLC.
Both companies are wholly owned Nexus subsidiaries. Further, all the
duties, obligations and liabilities arising from the agreement
(Exhibi t 1) will be assumed by NDC Skyline Associates, LLC, a Delaware
limited liability company.
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Assignment of Certain Rights in the Cooperative
Agreement for Off-site Improvements
June 9, 2006
Page 2
The assignment of certain rights in the cooperative agreement will
incl ude the Lake Towers, the Cinema Tower, the Cinema Loft and the
retail/restaurant building. Approval of the assignment will facilitate
the financing and implementation of this important project, which is the
first phase of the MacArthur Place South development. Therefore, it is
recommended that the City Council direct the City Attorney to prepare and
authorize the City Manager and Clerk of the Council to execute written
consent approving the assignment of certain rights, ownership and
security interests in Cooperative Agreement for Off-site Improvements by
Nexus Development and The Grand Plan 2, LLC with such nonsubstanti ve
changes as may be approved by the City Manager and City Attorney as to
form.
FISCAL IMPACT
There is no fiscal impact associated with this action.
~reVino, AICP
ecutlve Dlrector
Planning & Building Agency
VF:jm
vf\reports\Nexustransfer2.cc
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