HomeMy WebLinkAbout29A - NEXUS DEVELOPMENT AGENCYREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
JANUARY 30, 2012
TITLE:
TITLE
DEMAND PAYMENT FROM THE
REDEVELOPMENT AGENCY IN THE
AMOUNT OF $956,173.73 FOR NEXUS
PERMIT FEE DEFERRAL
CITY MANAGER
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
APPROVED
? As Recommended
? As Amended
? Ordinance on 1" Reading
? Ordinance on 2nd Reading
? Implementing Resolution
? Set Public Hearing For_
CONTINUED TO
FILE NUMBER
Demand payment from the Community Redevelopment Agency to the City of Santa Ana for
deferred fees in the amount of $956,173.73 for the Nexus project, pursuant to Section 2-618 of
City of Santa Ana Municipal Code.
DISCUSSION
In June 2006, the Agency authorized an obligation agreement to cover a portion of the City
building permit fees with Curtis R. Olson, an individual representing the Nexus Development
Corporation (Lake Towers Project), which consisted of two (2) high-rise luxury condominium
towers in MacArthur Place. On August 3, 2009, the Agency authorized the Second Amendment
and Restated Obligation Agreement to extend the terms of the Promissory Note to June 2022.
The Olson obligation provides for repayment to the Agency pursuant to a Promissory Note, which
will remain in effect.
Section 2-618 of the Santa Ana Municipal Code provides for the deferral of city fees until such time
as the City Council may demand payment. Therefore, it is recommended that the City of Santa
Ana demand payment by the Agency in the amount of $956,173.73 for the fees deferred, plus
interest, for this project.
29A-1
Demand Payment - Nexus
January 30, 2012
Page 2
FISCAL IMPACT
Funds in the amount of $956,173.73 are appropriated in the Redevelopment Capital Projects
account (no. 57018830-66220) and will be received by the City's Trust Fund account (no.
09801001-24009).
APPROVED AS TO FUNDS AND ACCOUNTS:
Trevino
Executive Director
Planning & Building Agency
Francisco Gutierrez '
Executive Director
Finance & Management Services Agency
JMT/VU/mlr
29A-2