HomeMy WebLinkAbout1 - DDA CREVIER BMW AND MINI AT SA AUTO MALLREQUEST FOR COUNCIL/
AGENCY ACTION
MEETING DATE:
JUNE 22, 2011
TITLE:
AMENDED DISPOSITION AND DEVELOPMENT
AGREEMENT AND ASSIGNMENT AND
ASSUMPTION AGREEMENTS FOR CREVIER
BMW AND MINI AT THE SANTA ANA AUTO
MALL
�.
CITY MANAGER J11TERIM
EXECI} VE DIRECTOR
RECOMMENDED ACTION
CITY COUNCIL ACTION
CLERK OF COUNCIL USE ONLY:
APPROVED
El
El
CONTINUED TO
As Recommended
As Amended
Ordinance on 1 st Reading
Ordinance on 2nd Reading
Implementing Resolution
Set Public Hearing For
FILE NUMBER
Adopt resolution making certain findings with respect to an Amended Disposition and Development
Agreement for Crevier BMW and Mini at the Santa Ana Auto Mall.
COMMUNITY REDEVELOPMENT AGENCY ACTION
Adopt a resolution approving an Amended Disposition and Development Agreement for
Crevier BMW and Mini at the Santa Ana Auto Mall.
2. Authorize the Executive Director and Agency Secretary to execute the attached Assignment
and Assumption Agreement by and among PAG Santa Ana B1, Inc., a Delaware corporation
( "Assignee "), and Santa Ana Properties, LLC, a California limited liability company
( "Assignor ") for property located at 1500 Auto Mall Drive, including Agency consent and
estoppel, subject to non - substantive changes approved by the Executive Director and Agency
General Counsel.
3. Authorize the Executive Director and Agency Secretary to execute the attached Assignment
and Assumption Agreement by and among PAG Santa Ana B1, Inc., a Delaware corporation
( "Assignee "), and Santa Ana Properties II, LLC, a California limited liability company
( "Assignor ") for property located at 1455 Auto Mall Drive, including Agency consent and
estoppel, subject to non - substantive changes approved by the Executive Director and Agency
General Counsel.
1 -1
Joint — Crevier BMW and Mini
June 22, 2011
Page 2
DISCUSSION
On July 19, 2004, the Community Redevelopment Agency (Agency) approved a Private
Disposition and Development Agreement (DDA), and on April 18, 2005 a First Implementation
Agreement, with Donald J. Crevier, as trustee of the Donald Crevier Trust, and Crevier Motors Inc.
(Developer) for an approximate 4.23 acre expansion of the existing BMW /Mini Dealership at the
Santa Ana Auto Mall. Additionally, the Agency entered into a DDA on March 17, 1997 for the sale
of property for the construction and operation of the Jaguar dealership. The dealership has since
closed and the property was purchased by Crevier last year for its Mini dealership. Crevier is
currently negotiating the sale of its BMW & Mini dealerships, including Auto Mall properties, to the
Penkse Automotive Group, which transaction requires certain Agency /City approvals.
Specifically, Crevier is requesting the City's /Agency's approval in assigning all Developer and
Assignor's right, title and interest in, under and to the DDA and First Implementation Agreement for
1500 Auto Mall Drive (existing Crevier BMW /Mini site) and for 1455 Auto Mall Drive (proposed Mini
site) from Santa Ana Properties, LLC (also includes Donald J. Crevier, as Trustee of the Donald J.
Crevier Trust and Crevier Motors, Inc.) to PAG West, LLC. The Penske Group will keep Crevier
BMW (and its dealership name) at its present location and as intended by Crevier will complete the
move of Mini over to the 1455 Auto Mall Drive site (Exhibit 1).
Additionally, the DDA scope and schedule are being updated to reflect current conditions and
requirements. As called for in the original Scope of Development for the Crevier expansion, 4.23
acres was conveyed and merged with existing 5.11 acres, and a substantial portion of the scope
was completed, resulting in a significant increase in sales, generating much needed sales tax
revenues for the city. Of the three phases in the DDA, Phase 1 (6 -tier parking structure) and
associated site work was completed as well as a portion of Phase II that included storm drain
installation, roadway dedication and improvement for the right hand turn lane on outbound Auto
Mall Drive at Edinger Avenue, as well as common area landscaping along Auto Mall Drive and
Edinger (exclusive of one brick paver area) and new auto mall entry-way monument sign. With the
previous downturn in the economy and to allow Crevier time to explore various expansion options,
the remaining portion of Phase II and all of Phase III were put on hold, and the Phase II portion of
the property was temporarily improved for the parking of vehicles.
The outstanding items from the scope of development for the property involve the construction of
new showroom and office area for BMW dealership, the renovation /construction of a new Mini
showroom, services, parts and office addition to the existing Crevier building, including all
associated site work. However, with Crevier's recent purchase of the prior Jaguar facility at 1455
Auto Mall Drive, the provision for a new Mini showroom will be accomplished (3.2 acres, 30,298
square foot new dealership including showroom, offices, parts storage, and vehicle services),
leaving BMW on -site with enough building space of its own. Thus, the scope is being revised to
reflect this as well as ensure that Penske will improve the BMW site's temporary surface lot by
1 -2
Joint — Crevier BMW and Mini
June 22, 2011
Page 3
raising the existing grade and providing landscaping and lighting improvements consistent with
municipal code and other pertinent requirements and standards.
Both Crevier and Penske are valued members of Santa Ana's business community, very reputable
and community- oriented companies, and great assets to the Auto Mall. Penske owns
Commonwealth Audi/VW and is in the process of relocating Audi into its own facility at the former
Kia site, across from its current location. The project includes building renovation and a 10,000
square foot expansion. The Penske Group has also leased and is in the process of
enhancing /expanding the former Saturn site for Commonwealth Audi/VW. Given the importance of
this transaction to the City and the pending state threat to Redevelopment Agencies which could
eliminate our ability to take action, it was necessary to call a special session of the Council /Agency
to ensure escrow closure in early July.
ENVIRONMENTAL COMPLIANCE
In accordance with the California Environmental Quality Act, the proposed project is exempt from
further review pursuant to Section 15061(b)(3), which is a general rule exemption applying to projects
that have no possibility of having a significant effect on the environment. As this project consists of
the assignment of an existing agreement to a new party, no effects on the environment will occur.
Therefore, Categorical Exemption Environmental Review No. 2011 -51 will be filed for this project.
FISCAL IMPACT
There is no fiscal impact associated with this action
Sandi Gottlieb
Redevelopment Project Manager
Community Development Agency
NTE/VU /SG /mlr
Exhibits: 1. Site Map
2. Council Resolution
3. CRA Resolution
4. Amended DDA
5. Assignment/Assumption Agreement — 1500 Auto Mall Drive
6. Assignment/Assumption Agreement — 1455 Auto Mall Drive
1 -3
1 -4
WILSHIREAV.
Dealer
Parking
2 AC.
*(1305)
SANTA ANA AUTO MALL
SITE MAP
Parking
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x(1325) SF 6Cp
IV
A U pi
Taw Vacant �� /�
JL
\3.38 5C
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O
p
* Address on Auto Mall Drive
EXHIBIT 1
1 -5
r
w
=
Saab
3.99 AC.
(1330)
VW /Audi
F
(Proposed)
3.0 AC.
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BORCHARDAV.
DAN GURNEY C
Volvo
5.02 AC.
(1400 5. Dan Gurney Dr.)
JL
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O
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* Address on Auto Mall Drive
EXHIBIT 1
1 -5
1 -6
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SANTA ANA CONSENTING TO ASSIGNMENT OF A
PRIVATE DISPOSITION AND DEVELOPMENT
AGREEMENT AND APPROVING AN AMENDMENT TO
THE PRIVATE DISPOSITION AND DEVELOPMENT
AGREEMENT BETWEEN THE COMMUNITY
REDEVELOPMENT AGENCY OF THE CITY OF
SANTA ANA AND PAG SANTA ANA B1, INC. MAKING
CERTAIN OTHER FINDINGS IN CONNECTION
THEREWITH
WHEREAS, the Community Redevelopment Agency of the City of Santa Ana
( "Agency ") entered into that Private Disposition and Development Agreement with Donald J.
Crevier, as Trustee of the Crevier Trust and Crevier Motors, Inc., a corporation duly organized
under the laws of the State of California, dated as of July 19, 2004, (the "Original Developer "), a
copy of which is on file with the Agency, pursuant to which the Original Developer was to
develop the Property located at 1500 Auto Mall Drive ( "Property "); and
WHEREAS, the Agency and the Original Developer entered into that certain First
Implementation Agreement, dated April 18, 2005; and
WHEREAS, the Agency has concurrently herewith consented to an assignment of the
Original DDA by Original Developer to PAG Santa Ana 131, Inc., a Delaware corporation
( "PAG "); and
WHEREAS, the Agency and PAG now desire to amend the terms of the Original DDA
as implemented by the First Implementation Agreement (collectively, the "Original DDA ") by
modifying the Scope of Development and Schedule of Performance in accordance with the
Amendment to the Private Disposition and Development Agreement ( "Amendment ")
substantially in the form submitted herein (the Original DDA and Amendment are referred to
herein as the "DDA, as amended "); and
WHEREAS, the Agency has duly considered all terms and conditions of the Amendment
and believes that the DDA, as amended is in the best interest of the Agency and the City of
Santa Ana and the health, safety, and welfare of its residents, and in accord with the public
purposes and provisions of applicable State and local laws requirements; and
WHEREAS, the Developer has submitted to the Agency and the City Council of the City
of Santa Ana ( "City Council ") copies of the DDA; as amended; and
WHEREAS, all actions required by all applicable law with respect to the Amendment
have been taken in an appropriate and timely manner; and
EXHIBIT 2
DOCSOC/1495410v3/200272 -0006 1-7
WHEREAS, the Agency and the City Council have duly considered all the terms and
conditions of the Amendment and believes that the redevelopment of the property pursuant to the
DDA, as amended in the best interests of the City of Santa Ana and the health, safety, and
welfare of its residents, and in accord with the public purposes and provisions of applicable state
and local laws and requirements; and
WHEREAS, the Agency is a community redevelopment agency duly organized and
existing under the California Community Redevelopment Law, Health and Safety Code Section
33000, et seq. ( "CRL "), and has been authorized to transact business and exercise the power of a
redevelopment agency pursuant to action of the City Council; and
WHEREAS, the boundaries of the South Main Street Redevelopment Project (the
"Project Area ") were duly established by various ordinances of the City Council, which
ordinances approved a redevelopment plan. The Property is located within the South Main Street
Redevelopment Project Area, which is now part of the Agency's Merged Project Area
( "Redevelopment Plan "); and
for the South Main Street Redevelopment Project, ( "Redevelopment Plan "); and
WHEREAS, Agency is vested with the power to implement the Redevelopment Plan and
to carry out the goals and objectives of the Redevelopment Plan, including without limitation the
goals and objectives adopted by the Agency's implementation plan ( "Implementation Plan ")
pursuant to the CRL; and
WHEREAS, the Agency is authorized and empowered by the CRL to enter into
agreements for the acquisition, disposition and development of real property and otherwise to
assist in the redevelopment of real property within a redevelopment project area in conformity
with a redevelopment plan adopted for such area, to acquire real and personal property in
redevelopment project areas, to receive consideration for the provision by the Agency of
redevelopment assistance, to make and execute contracts and other instruments necessary or
convenient to the exercise of its powers, and to incur indebtedness to finance or refinance
redevelopment projects; and
WHEREAS, PAG is a Delaware corporation duly organized, in good standing and
qualified to do business under the laws of the State of California and experienced in the
acquisition, construction, development, and operation of auto dealerships; and
WHEREAS, in accordance with the California Environmental Quality Act ( "CEQA "),
the proposed project is exempt from further review pursuant to Section 15O61(b)(3) of CEQA,
which is a general rule exemption applying to projects that have no possibility of having a
significant effect on the environment. As this project consists of the assignment of an existing
agreement to a new party and a reduction in Scope of Development, no effects on the
environment will occur. Therefore, Categorical Exemption Environmental Review No. 2011 -51
will be filed for this project; and
WHEREAS, the Agency has adopted an Implementation Plan pursuant to
CRL Section 33490, which sets forth the objectives of the Redevelopment Plan; and
2
DOCSOC/1495410v3/200272 -0006 1-8
WHEREAS, on June 22, 2011, the Agency considered the Amendment in at a public
meeting in accordance with applicable law, at which time the Agency reviewed and evaluated all
of the information, testimony, and evidence presented; and
WHEREAS, the City Council has previously determined, in its adoption of the ordinance
approving the Redevelopment Plan, that the Property, which is the subject of the DDA, as
amended, is blighted; and
WHEREAS, the DDA, as amended will assist in the elimination of blight by providing
for the development and operation of a car dealership on the Property.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa
Ana as follows:
Section 1. Each of the foregoing recitals is true and correct.
Section 2. The City Council hereby consents to the assignment of the Original DDA
by Original Developer (and its affiliate Santa Ana Properties, LLC, a California limited liability
company) to PAG Santa Ana B1, Inc., a Delaware corporation.
Section 3. The City Council hereby finds and determines that the DDA, as amended
is consistent with the provisions and goals of the Implementation Plan and hereby approves the
Amendment.
Section 4. In accordance with CEQA, the proposed Amendment is exempt from
further review pursuant to Section 15061(b)(3) of CEQA, which is a general rule exemption
applying to projects that have no possibility of having a significant effect on the environment.
As this Amendment consists of the assignment of an existing agreement to a new party and a
reduction in scope of development, no effects on the environment will occur. Therefore,
Categorical Exemption Environmental Review No. 2011 -51 will be filed for this project.
Section 5. The City Council acknowledges that the governing board of the Agency
may authorize the Executive Director of the Agency (or his/her duly authorized representative)
on behalf of the Agency, to implement the DDA, as amended, and make revisions to the DDA,
as amended which do not materially or substantially increase the Agency's obligations
thereunder or materially or substantially change the uses or development permitted on the Site, to
sign all documents, to make all approvals and take all actions necessary or appropriate to carry
out and implement the DDA, as amended and the administer the Agency's obligations,
responsibilities and duties to be performed under the DDA, as amended and related documents.
[Signature page follows]
DOCSOC/1495410v3/200272 -0006 1-9
ADOPTED this day of , 2011.
Miguel A. Pulido
Mayor
APPROVED AS TO FORM:
By:
AYES: Councilmembers:
NOES: Councilmembers:
ABSTAIN:
NOT PRESENT:
Councilmembers:
Councilmembers:
CERTIFICATION OF ATTESTATION AND ORIGINALITY
I, MARIA D. HUIZAR, Clerk of the City Council, do hereby attest to and certify the
attached Resolution No. 2011- to be the original resolution adopted by the City Council
of the City of Santa Ana on 52011.
Date:
DOCSOC/ 1495410v3 /200272 -0006
Clerk of the City Council
City of Santa Ana
4
1 -10
RESOLUTION NO.
A RESOLUTION OF THE COMMUNITY
REDEVELOPMENT AGENCY OF THE CITY OF SANTA
ANA CONSENTING TO ASSIGNMENT OF A PRIVATE
DISPOSITION AND DEVELOPMENT AGREEMENT AND
APPROVING AN AMENDMENT TO THE PRIVATE
DISPOSITION AND DEVELOPMENT AGREEMENT
BETWEEN THE AGENCY AND PAG SANTA ANA B1, INC.
AND THE AGENCY MAKING CERTAIN OTHER
FINDINGS IN CONNECTION THEREWITH
WHEREAS, the Community Redevelopment Agency of the City of Santa Ana
( "Agency ") entered into that Private Disposition and Development Agreement with Donald J.
Crevier, as Trustee of the Crevier Trust and Crevier Motors, Inc., a corporation duly organized
under the laws of the State of California, dated as of July 19, 2004, (the "Original Developer "), a
copy of which is on file with the Agency, pursuant to which the Original Developer was to
develop the Property located at 1500 Auto Mall Drive ( "Property "); and
WHEREAS, the Agency and the Original Developer entered into that certain First
Implementation Agreement, dated April 18, 2005; and
WHEREAS, the Agency has concurrently herewith consented to an assignment of the
Original DDA by Original Developer to PAG Santa Ana 131, Inc., a Delaware corporation
( "PAG "); and
WHEREAS, the Agency and PAG now desire to amend the terms of the Original DDA
as implemented by the First Implementation Agreement (collectively, the "Original DDA ") by
modifying the Scope of Development and Schedule of Performance in accordance with the
Amendment to the Private Disposition and Development Agreement ( "Amendment ")
substantially in the form submitted herewith (the Original DDA and Amendment are referred to
herein as the "DDA, as amended "); and
WHEREAS, the Agency has duly considered all terms and conditions of the Amendment
and believes that the DDA, as amended is in the best interest of the Agency and the City of
Santa Ana and the health, safety, and welfare of its residents, and in accord with the public
purposes and provisions of applicable State and local laws requirements; and
WHEREAS, the Developer has submitted to the Agency and the City Council of the City
of Santa Ana ( "City Council ") copies of the DDA, as amended; and
WHEREAS, all actions required by all applicable law with respect to the Amendment
have been taken in an appropriate and timely manner; and
WHEREAS, the Agency and the City Council have duly considered all the terms and
conditions of the Amendment and believes that the redevelopment of the Property pursuant to the
EXHIBIT 3
DOCSOC/1495396v5/200272 -0006 1 -11
DDA, as amended in the best interests of the City of Santa Ana and the health, safety, and
welfare of its residents, and in accord with the public purposes and provisions of applicable state
and local laws and requirements; and
WHEREAS, the Agency is a community redevelopment agency duly organized and
existing under the California Community Redevelopment Law, Health and Safety Code Section
33000, et seq. ( "CRL "), and has been authorized to transact business and exercise the power of a
redevelopment agency pursuant to action of the City Council; and
WHEREAS, the boundaries of the South Main Street Redevelopment Project (the
"Project Area ") were duly established by various ordinances of the City Council, which
ordinances approved a redevelopment plan. The Property is located within the South Main Street
Redevelopment Project Area, which is now part of the Agency's Merged Project Area
( "Redevelopment Plan "); and
WHEREAS, Agency is vested with the power to implement the Redevelopment Plan and
to carry out the goals and objectives of the Redevelopment Plan, including without limitation the
goals and objectives adopted by the Agency's implementation plan ( "Implementation Plan ")
pursuant to the CRL; and
WHEREAS, the Agency is authorized and empowered by the CRL to enter into
agreements for the acquisition, disposition and development of real property and otherwise to
assist in the redevelopment of real property within a redevelopment project area in conformity
with a redevelopment plan adopted for such area, to acquire real and personal property in
redevelopment project areas, to receive consideration for the provision by the Agency of
redevelopment assistance, to make and execute contracts and other instruments necessary or
convenient to the exercise of its powers, and to incur indebtedness to finance or refinance
redevelopment projects; and
WHEREAS, PAG is a Delaware corporation duly organized, in good standing and
qualified to do business under the laws of the State of California and experienced in the
acquisition, construction, development, and operation of auto dealerships; and
WHEREAS, in accordance with the California Environmental Quality Act ( "CEQA "),
the proposed project is exempt from further review pursuant to Section 15061(b)(3) of CEQA,
which is a general rule exemption applying to projects that have no possibility of having a
significant effect on the environment. As this project consists of the assignment of an existing
agreement to a new party and a reduction in Scope of Development, no effects on the
environment will occur. Therefore, Categorical Exemption Environmental Review No. 2011 -51
will be filed for this project; and
WHEREAS, the Agency has adopted an Implementation Plan pursuant to
CRL Section 33490, which sets forth the objectives of the Redevelopment Plan; and
WHEREAS, on June 22, 2011, the Agency considered the Amendment at a public
meeting in accordance with applicable law, at which time the Agency reviewed and evaluated all
of the information, testimony, and evidence presented; and
2
DOCSOC/1495396v5/200272 -0006 1-12
WHEREAS, the City Council has previously determined, in its adoption of the ordinance
approving the Redevelopment Plan, that the Property, which is the subject of the DDA, as
amended, is blighted; and
WHEREAS, the DDA, as amended will assist in the elimination of blight by providing
for the development and operation of a car dealership on the Property; and
NOW, THEREFORE, BE IT RESOLVED by the Community Redevelopment Agency
of the City of Santa Ana as follows:
Section 1. Each of the foregoing recitals is true and correct.
Section 2. Agency hereby consents to the assignment of the Original DDA by
Original Developer (and its affiliate Santa Ana Properties, LLC, a California limited liability
company) to PAG Santa Ana B1, Inc., a Delaware corporation.
Section 3. The Agency hereby finds and determines that the DDA, as amended is
consistent with the provisions and goals of the Implementation Plan.
Section 4. In accordance with CEQA, the proposed Amendment is exempt from
further review pursuant to Section 15061(b)(3) of CEQA, which is a general rule exemption
applying to projects that have no possibility of having a significant effect on the environment.
As this Amendment consists of the assignment of an existing agreement to a new party and a
reduction in scope of development, no effects on the environment will occur. Therefore,
Categorical Exemption Environmental Review No. 2011 -51 will be filed for this project.
Section 5. The Agency hereby approves the Amendment between the Agency and
Developer, in the form of the Amendment submitted herewith.
Section 6. The Executive Director and the Agency Secretary are hereby authorized to
execute and attest the Amendment, including any related attachments, on behalf of the Agency.
Copies of the final form of the Amendment, when duly executed and attested, shall be placed on
file in the office of the Agency Secretary.
Section 7. The Executive Director (or his /her duly authorized representative) is
further authorized to implement the DDA, as amended, and take all further actions and execute
all documents referenced therein and/or necessary and appropriate to carry out the DDA, as
amended. The Executive Director (or his /her duly authorized representative) is hereby
authorized to the extent necessary during the implementation of the DDA, as amended to make
technical or minor changes thereto after execution, as necessary to properly implement and carry
out the DDA, as amended, provided the changes shall not in any manner materially affect the
rights and obligations of the Agency.
Section 8. The Agency Secretary shall certify to the adoption of this Resolution.
[Signature page follows]
3
DOCS00 1495396v5/200272 -0006 1-13
ADOPTED this
day of 52011.
Miguel Pulido
Chair
APPROVED AS TO FORM:
0
AYES:
NOES:
ABSTAIN:
NOT PRESENT
Members:
Members:
Members:
Members:
CERTIFICATION OF ATTESTATION AND ORIGINALITY
I, MARIA D. HUIZAR, Secretary of the Community Redevelopment Agency for the
City of Santa Ana, do hereby attest to and certify the attached Resolution No.
to be the original resolution adopted by the Community Redevelopment Agency for the City of
Santa Ana on 52011.
Date:
Secretary
DOCSOC/1495396v5/200272 -0006 1-14
AMENDMENT TO PRIVATE DISPOSITION AND
DEVELOPMENT AGREEMENT
This AMENDMENT TO PRIVATE DISPOSITION AND DEVELOPMENT
AGREEMENT (this "Amendment ") is entered into as of , 2011 by and
between the COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF
SANTA ANA, a public body, corporate and politic (the "Agency "), and PAG SANTA ANA 111,
INC., a Delaware corporation (the "Developer ").
RECITALS
A. The Agency and Donald J. Crevier, as Trustee of the Donald J. Crevier Trust, and
Crevier Motors, Inc., a California corporation (collectively, the "Original Developer ") entered
into a Private Disposition and Development Agreement ( "DDA ") on July 19, 2004.
B. The Agency and Original Developer further entered into that certain
First Implementation Agreement dated as of April 18, 2005 ( "First Implementation Agreement ").
The DDA and First Implementation Agreement are sometimes referred to herein as the
"Original DDA, as amended ").
C. Concurrently herewith, the Original Developer assigned all its rights and
obligations under the Original DDA, as amended, to Developer and Agency consented thereto.
D. The Agency and Developer now desire to amend the Scope of Development and
Schedule of Performance as set forth in the Original DDA, as amended.
NOW, THEREFORE, the parties hereby agree as follows:
1. Defined Terms as set forth in the Original DDA. All capitalized and defined
terms used in this Amendment shall have the meaning given to them in the Original DDA.
2. All provisions relating to the conveyance of the Property have been fulfilled and
are no longer applicable.
3. With respect to the improvements on the Property, Phase I has been completed.
Phase II and Phase III are hereby eliminated and the DDA shall be amended as set forth in
Exhibit A attached hereto and incorporated herein by reference.
4. The sale and leasing by Developer of MINI makes lines shall be moved from the
Property to 1455 Auto Mall Drive, Santa Ana, California on or before July 2014.
5. Except as amended herein, the Original DDA, as amended shall remain in full
force and effect in accordance with its terms.
DOCSOC/ 1495465v3/200272 -0006
EXHIBIT 4
1 -15
IN WITNESS WHEREOF, the parties hereto have signed this Amendment as of the
date set forth above.
AGENCY:
COMMUNITY REDEVELOPMENT AGENCY
ATTEST: OF THE CITY OF SANTA ANA, a public body,
corporate and politic
Maria D. Huizar
Secretary
APPROVED AS TO FORM:
I
Lisa E. Storck
Assistant General Counsel
Nancy Edwards
Interim Executive Director
[Signature block continues on next page.]
2
DOCSOC/ 1495465v3/200272 -0006
1 -16
DOC SOC/ 1495465v3/200272 -0006
DEVELOPER:
PAG SANTA ANA 111, INC.,
a Delaware corporation
I'M
1 -17
George W. Brochick, Chairman
1 -18
EXHIBIT A
Amendments to DDA
1. Sections 101(b)(i) and 101(b)(iii) of the DDA shall be deleted in their entirety.
2. Section 106 of the DDA shall be amended and restated in its entirety as follows:
"Section 106. The Developer. The Developer is PAG Santa Ana B1, Inc.,
a Delaware corporation. The principal office of the Developer is located
at 7015 East Chauncey Lane, Phoenix, AZ 85054."
3. Section 214 of the DDA shall be amended and restated in its entirety as follows:
"Section 2.14. "Developer" shall mean PAG Santa Ana B1, Inc., a
Delaware corporation."
4. Section 223 of the DDA shall be amended and restated in its entirety as follows:
"Section 223. "Schedule of Performance" shall mean the time schedule
for completion of the Project as set forth in the Scope of Development."
5. Section 224 of the DDA shall be amended and restated in its entirety as follows:
"Section 224. "Scope of Development" shall mean the scope of
development of the Property set forth in Attachment No. 3, as amended
from time to time."
6. Section 301 of the DDA shall be amended and restated in its entirety as follows:
"Section 301. Scope of Development. Developer agrees the Property
shall be developed in accordance with and within the limitations specified
in the Scope of Development attached hereto as Attachment No. 3 and
incorporated herein by this reference, as Attachment No. 3. may be
amended from time to time. The improvements to be developed on the
Property shall include all improvements set forth in the Scope of
Development, which improvements are hereinafter collectively referred to
as the "Project ".
7. Section 304(B) of the DDA shall be deleted in its entirety.
DMWEST #8324320 Q
1 -19
8. Section 901 of the DDA is amended by replacing the contact information for the
Developer with the following:
PAG Santa Ana B1, Inc.
Attn: George W. Brochick, Chairman
7015 East Chauncey Lane
Phoenix, AZ 85054
Fax: (480) 538 -6915
9. Attachment No. 3 to the DDA shall be amended and restated in its entirety as set forth in
the Attachment No. 3 Revised Scope of Development and Schedule attached hereto as
Exhibit 1.
10. Attachment No. 7 to the DDA shall be deleted in its entirety.
DMWEST #8324320 v3 2
1 -20
ATTACHMENT NO. 3
REVISED SCOPE OF DEVELOPMENT AND SCHEDULE
It is recognized that certain requirements specified in the original Scope of Development and
General Conditions attached to the Private Disposition and Development Agreement as of July
19, 2004, have been completed or complied with. The only remaining requirements are as
follows:
Project Description
The portion of the Property shown within the larger hash -lined area on the aerial photograph
attached hereto, comprised of approximately 111,035 square feet, shall be improved pursuant to
SD (Specific Development District) 60 standards, state, county and municipal codes and other
applicable construction requirements. The portion of the Property shown within the cross hashed
area on the aerial photograph attached hereto, comprised of approximately 54,114 square feet,
shall be improved by raising the existing grade of such area to create a surface level with the
remainder of the Property within the larger hash -lined area. This grading shall be accomplished
to provide sufficient drainage and shall be performed in accordance with all state, county and
municipal codes and other applicable construction requirements, including, but not limited to,
requirements of the City of Santa Ana's National Pollution Discharge Elimination System
permit. The concrete at the driveway located at the northwest most portion of the Property shall
be repaired. Construction of such improvements shall be completed by July 1, 2016. The
Developer shall secure all applicable approvals and permits.
Refuse
An enclosed refuse area or areas shall be provided at locations in accordance with the
requirements of the City of Santa Ana. Refuse areas shall be designed with building materials
compatible with those used for the other structures on the site.
Signs
All signage on the Site shall be only that which is permitted by the City of Santa Ana pursuant
the applicable zoning under SD -60 and subject to approval of Agency's Executive Director.
Utilities
The Developer shall be responsible for all utility relocation or installations on the Property; and
hookups to sewers, drains, water and gas distribution lines, electric, telephone and telegraph
lines; and for hookup to all other public utility lines. All utility services on -site shall be installed
underground or concealed within buildings and no mechanical equipment or meters shall be
exposed at ground level as required by the Santa Ana Municipal Code.
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ASSIGNMENT AND ASSUMPTION AGREEMENT
(1500 Auto Mall Drive, Santa Ana, California)
This ASSIGNMENT AND ASSUMPTION AGREEMENT (this "Assignment ") is
hereby made as of this _ day of June, 2011, by and between PAG Santa Ana B1, Inc., a
Delaware corporation ( "Assignee ") and Santa Ana Properties, LLC, a California limited liability
company ( "Assignor ").
RECITALS
A. Assignor and the Community Redevelopment Agency of the City of Santa Ana
( "Agency ") are parties to a Private Disposition and Development Agreement, dated July 19,
2004, and a First Implementation Agreement, dated April 18, 2005, each between Assignor, as
successor in interest to Donald J. Crevier, as Trustee of the Donald J. Crevier Trust, and Crevier
Motors, Inc., a California corporation (together, the "Developer "), and Agency (the "DDA ").
The DDA pertains to certain real property commonly known as 1500 Auto Mall Drive,
Santa Ana, California (the "Property ").
B. Assignor and /or its affiliates the Developer, Donald J. Crevier, an unmarried man,
and Santa Ana Properties Il, LLC (collectively with Assignor, the "Seller Group ") have entered
into agreements dated May 5, 2011, for the sale of the Property and other assets to Assignee (the
"Transactions ").
C. Assignor and Assignee desire to provide by this Assignment for Assignor to
assign to Assignee all of its rights and obligations under the DDA, and for Assignee to accept
such assignment and assume all rights and obligations under the DDA.
D. The parties also desire for Agency to acknowledge, certify and agree to certain
matters upon which the parties may rely with respect to the DDA, as more fully set forth in the
Agency Estoppel Certificate attached hereto.
NOW, THEREFORE, Assignor and Assignee hereby agree as follows:
1. Assignment and Assumption. Effective as of the Closing (as defined in Section
5), Assignor and the Developer hereby assign to Assignee all of their right, title and interest in
and to the DDA, and, in reliance upon the Agency Estoppel Certificate and the amendment to the
DDA attached thereto, Assignee hereby accepts such assignment and assumes performance of all
remaining terms, covenants and conditions on the part of Assignor to be performed, occurring or
arising under the DDA with respect to the Property from and after the Closing. From and after
the Closing, as set forth in the Agency Estoppel Certificate, Assignor and each Seller Group
member shall be released from and have no further obligations under the DDA with respect to
the Property.
2. Successors and Assigns. This Assignment shall be binding upon and shall inure
to the benefit of Assignor and Assignee, their respective successors and assigns and Agency as a
third party beneficiary hereof.
DOCSOC/ 1496602v2/200272 -0006
1
EXHIBIT 5
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3. Governing Law. This Assignment has been entered into, is to be performed
entirely within, and shall be governed by and construed in accordance with the laws of the State
of California.
4. Further Assurances. Each party hereto covenants and agrees to perform all acts
and things, and to prepare, execute, and deliver such written agreements, documents, and
instruments as may be reasonably necessary to carry out the terms and provisions of this
Assignment.
5. Effective Date. The assignment and assumption of the DDA that are to be
effected by this Assignment shall be effective upon, and are expressly conditioned upon, the
closing of the Transactions (the "Closing "). In the event that that the Closing does not occur,
this Assignment shall be void ab initio and shall be of no force or effective whatsoever,
notwithstanding its execution by Assignor and Assignee.
6. Accommodation Party. Each member of Developer is a party hereto only as an
accommodation for purposes of assigning any rights they may have in the DDA to Assignee.
7. Counterparts. This Assignment may be executed in two or more original or
electronic counterparts, each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument which shall be binding on the parties notwithstanding that
all parties may not be signatories to the same counterpart or counterparts.
DOC SOC/ 1496602v2/200272 -0006
[SIGNATURE PAGE FOLLOWS]
2
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IN WITNESS WHEREOF, the parties hereto have executed this Assignment as of the
date set forth above.
ASSIGNOR:
SANTA ANA PROPERTIES, LLC
a California limited liability company
By:
Donald J. Crevier, Manager
DEVELOPER:
DONALD J. CREVIER TRUST
U61A
Donald J. Crevier, Trustee
CREVIER MOTORS, INC., a California
corporation
By
Donald J. Crevier, President
ASSIGNEE:
PAG SANTA ANA B1, INC., a Delaware
corporation
am
George W. Brochick, Chairman
S -1
DOC SOC/ 1496602v2/200272 -0006
1 -27
AGENCY ESTOPPEL CERTIFICATE
(1500 Auto Mall Drive, Santa Ana, California)
Agency hereby acknowledges, certifies and agrees to each of the following, with the
knowledge and understanding that each of Assignee and the Seller Group members, along with
their respective successors and assignees, may rely:
1. That Agency hereby consents to the assignment of the DDA from Assignor to
Assignee and the encumbrance of the Property with a mortgage by Assignee;
2. That from and after the Closing Assignee shall be the Developer, as defined in
Sections 106 and 214 of the DDA;
3. That the Property has been conveyed from Agency to Assignor;
4. That the DDA will be amended as set forth in the amendment to the DDA
attached hereto as Exhibit 1;
5. That from and after the Closing the provisions of Sections 401, 402 and 406
through 413 of the DDA shall no longer be of any force or effect and Assignee shall have no
liability or obligations with respect to Sections 401, 402 or 406 through 413 of the DDA; and
6. That upon the Closing, Assignor and each member of the Seller Group shall be
released from any further liability to Agency under the DDA.
Agency acknowledges tht nothing herein, or related to the negotiation hereof, shall be
deemed an admission by Assignor of any matter pertaining to the DDA if the Closing does not
occur.
COMMUNITY REDEVELOPMENT AGENCY
OF THE CITY OF SANTA ANA, a public body,
corporate and politic
C
ATTEST:
Agency Secretary
Agency Counsel
S -1
DOC SOC/ 1496602v2/200272 -0006
1 -28
Exhibit 1
REVISED SCOPE OF DEVELOPMENT AND SCHEDULE
It is recognized that certain requirements specified in the original Scope of Development and
General Conditions attached to the Private Disposition and Development Agreement as of July
19, 2004, have been completed or complied with. The only remaining requirements are as
follows:
Project Description
The portion of the Property shown within the larger hash -lined area on the aerial photograph
attached hereto, comprised of approximately 111,035 square feet, shall be improved pursuant to
SD (Specific Development District) 60 standards, state, county and municipal codes and other
applicable construction requirements. The portion of the Property shown within the cross hashed
area on the aerial photograph attached hereto, comprised of approximately 54,114 square feet,
shall be improved by raising the existing grade of such area to create a surface level with the
remainder of the Property within the larger hash -lined area. This grading shall be accomplished
to provide sufficient drainage and shall be performed in accordance with all state, county and
municipal codes and other applicable construction requirements, including, but not limited to,
requirements of the City of Santa Ana's National Pollution Discharge Elimination System
permit. The concrete at the driveway located at the northwest most portion of the Property shall
be repaired. Construction of such improvements shall be completed by July 1, 2016. The
Developer shall secure all applicable approvals and permits.
Refuse
An enclosed refuse area or areas shall be provided at locations in accordance with the
requirements of the City of Santa Ana. Refuse areas shall be designed with building materials
compatible with those used for the other structures on the site.
Signs
All signage on the Site shall be only that which is permitted by the City of Santa Ana pursuant
the applicable zoning under SD -60 and subject to approval of Agency's Executive Director.
Utilities
The Developer shall be responsible for all utility relocation or installations on the Property; and
hookups to sewers, drains, water and gas distribution lines, electric, telephone and telegraph
lines; and for hookup to all other public utility lines. All utility services on -site shall be installed
underground or concealed within buildings and no mechanical equipment or meters shall be
exposed at ground level as required by the Santa Ana Municipal Code.
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1 -32
ASSIGNMENT AND ASSUMPTION AGREEMENT
(1455 Auto Mall Drive, Santa Ana, California)
This ASSIGNMENT AND ASSUMPTION AGREEMENT (this "Assignment ") is
executed as of this _ day of June, 2011, by and between PAG Santa Ana BI, Inc., a Delaware
corporation ( "Assignee "), and Santa Ana Properties II, LLC, a California limited liability
company ( "Assignor ").
RECITALS
A. Assignor and the Community Redevelopment Agency of the City of Santa Ana
( "Agency ") are parties to a Disposition and Development Agreement, dated March 17, 1997,
between Assignor, as successor in interest to Richard R. Bauer as Trustee of the 1988 Bauer
Family Trust, and Agency (the "DDA "). The DDA pertains to certain real property commonly
known as 1455 Auto Mall Drive, Santa Ana, California (the "Property ").
B. Assignor and/or its affiliates Crevier Motors, Inc., a California corporation, dba
Crevier BMW/MINI, Donald J. Crevier, Trustee of the Donald J. Crevier Trust, Donald J.
Crevier, an unmarried man, and Santa Ana Properties, LLC (collectively with Assignor, the
"Seller Group ") have entered into agreements dated May 5, 2011, for the sale of the Property and
other assets to Assignee (the "Transactions ").
C. Assignor and Assignee desire to provide by this Assignment for Assignor to
assign to Assignee all of its rights and obligations under the DDA, and for Assignee to accept
such assignment and assume all rights and obligations under the DDA.
D. The parties also desire for Agency to acknowledge, certify and agree to certain
matters upon which the parties may rely with respect to the DDA, as more fully set forth in the
Agency Estoppel Certificate attached hereto.
NOW, THEREFORE, Assignor and Assignee hereby agree as follows:
1. Assignment and Assumption. Effective as of the Closing (as defined in Section
5), Assignor hereby assigns to Assignee all of its right, title and interest in and to the DDA, and,
in reliance upon the Agency Estoppel Certificate, Assignee hereby accepts such assignment and
assumes performance of all remaining terms, covenants and conditions on the part of Assignor to
be performed, occurring or arising under the DDA with respect to the Property from and after the
Closing.
2. Successors and Assigns. This Assignment shall be binding upon and shall inure
to the benefit of Assignor and Assignee, their respective successors and assigns and Agency as a
third party beneficiary hereof.
3. Governing Law. This Assignment has been entered into, is to be performed
entirely within, and shall be governed by and construed in accordance with the laws of the State
of California.
DOC SOC/ 1496597v 1/200272-0006
EXHIBIT 6
1 -33
4. Further Assurances. Each party hereto covenants and agrees to perform all acts
and things, and to prepare, execute, and deliver such written agreements, documents, and
instruments as may be reasonably necessary to carry out the terms and provisions of this
Assignment.
5. Effective Date. The assignment and assumption of the DDA that are to be
effected by this Assignment shall be effective upon, and are expressly conditioned upon, the
closing of the Transactions (the "Closing "). In the event that that the Closing does not occur,
this Assignment shall be void ab initio and shall be of no force or effective whatsoever,
notwithstanding its execution by Assignor and Assignee.
6. Counterparts. This Assignment may be executed in two or more original or
electronic counterparts, each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument which shall be binding on the parties notwithstanding that
all parties may not be signatories to the same counterpart or counterparts.
[SIGNATURE PAGE FOLLOWS]
2
DOCSOC/ 1496597v 1/200272-0006
1 -34
IN WITNESS WHEREOF, the parties hereto have executed this Assignment as of the
date set forth above.
ASSIGNOR:
SANTA ANA PROPERTIES II, LLC, a California
limited liability company
IM
Donald J. Crevier, Manager
ASSIGNEE:
PAG SANTA ANA B1, INC., a Delaware
corporation
C
George W. Brochick, Chairman
S -1
DOCSOC/1496597v 1/200272 -0006
1 -35
AGENCY ESTOPPEL CERTIFICATE
(1455 Auto Mall Drive, Santa Ana, California)
Agency hereby acknowledges, certifies and agrees to each of the following, with the
knowledge and understanding that each of Assignee and the Seller Group members, along with
their respective successors and assignees, may rely:
1. That on October 16, 1998, a Certificate of Completion was recorded with respect
to the Property pursuant to Section 317 of the DDA;
2. That Agency hereby consents to the assignment of the DDA from Assignor to
Assignee and the encumbrance of the Property with a mortgage by Assignee;
3. That from and after the Closing Assignee shall be the Developer, as defined in
Section 106 of the DDA,
4. That the Property has been conveyed and developed in accordance with the DDA
and upon the Closing Assignor and each member of the Seller Group shall be released from any
further liability to Agency under the DDA; and
5. That from and after the Closing the provisions of Articles II and III of the DDA
shall no longer be of any force or effect and Assignee shall have no liability or obligations with
respect to Articles II or III of the DDA.
ATTEST:
Agency Secretary
Agency Counsel
DOC SOC/ 1496597v 1/200272-0006
COMMUNITY REDEVELOPMENT AGENCY
OF THE CITY OF SANTA ANA, a public body,
corporate and politic
an
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