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HomeMy WebLinkAbout99-17 RDA ResolutionRESOLUTION NO. RDA 99-17 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA APPROVING THE FIRST AMENDMENT TO OWNER PARTICIPATION AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA AND COSTCO WHOLESALE CORPORATION THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA HEREBY RESOLVES AS FOLLOWS: Section 1. The Board of Directors of the Redevelopment Agency of the City of Temecula does hereby find, determine and declare that: a. On July 23, 1991, the Agency and Participant entered into that certain agreement entitled "Owner Participation Agreement by and between the Redevelopment Agency of the City of Temecula and Costco Wholesale Corporation, a Washington corporation" ("OPA"). b. The OPA provides that Participant shall build a retail facility on the Site in accordance with land use entitlements approved by the City and, in return, the Agency would make annual payments to the Participant over a period of 12 years. The annual payments would be made from Agency funds in an amount based on the amount of sales tax revenues reported to the State from the Site, but the payments would not exceed a total of $2.5 million over the 12 year pedod. The Participant completed the retail facility and the Agency has recorded the Certificate of Completion required by the OPA. c. Section 1.1 of the OPA provides that "Redevelopment of the Site will be of direct benefit to the Project Area because it will create a major retail facility capable of attracting many customers to the commercial areas located adjacent to the Site and within the Project Area. The project proposed by the OPA will provide a major retail anchor for the commercial area within the Project Area and will encourage further retail development within the Project Area, thereby contributing sales taxes and other revenues to the City and generating employment opportunities." d. Since adoption of the OPA in 1991, the area across Winchester Road from the Site and within the Project Area has indeed developed into a major retail area. One of the impacts of this new development will be the diminution of commercially viable retail areas on and adjacent to the Site and the potential negative impact such a condition will have upon the Project Area. e. This First Amendment to the OPA will be of direct benefit to the Project Area and will assist in eliminating blight in the Project Area for the reasons described in Subparagraphs 1 .c. and 1 .d. This First Amendment is also consistent with the Implementation Plan for the Project Area. R:Resos RDA99-17 I f. In order to induce Participant to redevelop and encourage the development of commercially viable retail operations on the Site and to prevent the negative impacts on the Site and the nearby Project Area as described in this Section, it is necessary to expand the sources of revenue upon which the annual payments are calculated so as to continue the assistance payments for the initial development of the Site as described in the OPA. Participant is agreeing to use commercially reasonable efforts to find alternative retail uses for the Site if the retail business currently occupying the Site moves to another location or if subsequent retail uses on the Site cease operations for any reason. g. This action is being undertaken pursuant to the Plan for which a full and complete Environmental Impact Report was prepared and certified prior to adoption of the Plan. Additionally an environment review was completed and approved in 1991 for the approval of the land use entitlemerits for the site. The action being approved by this Resolution relates to the calculation of the Agency's financial assistance to an existing project and, therefore, has no effect on the environment. None of the findings set forth in Sections 15162 or 15163 of the CEQA Guidelines (Title 14, Chapter 3 of the California Administrative Code) requiring a subsequent or supplement environmental impact report can be made and, therefore, further environment review is not required pursuant to the authority of Section 15180 of the CEQA Guidelines. h. This First Amendment pertains to and affects the ability of all parties to finance and carry out their statutory purposes, contractual obligations, and to accomplish the goals of the Plan and is intended to be a contract within the meaning of Government Code Section 53511. Section 2. The Board of Directors hereby approves that certain agreement entitled "First Amendment to Owner Participation by and between the Redevelopment Agency of the City of Temecula and Costco Wholesale Corporation" dated as of November 9, 1999 and authorizes the Chairperson to execute the Agreement on behalf of the Agency in substantially the form attached hereto as Exhibit A. Changes to the Agreement or to the parties to the Agreement may be made provided that such changes are appreved by the Executive Director and Agency Counsel. In addition, the Executive Director is hereby directed and authorized to execute such other documents as may be necessary or convenient to implement the terms of said Agreement. R:Resos RDA99-17 2 Section 3. If any section, subsection, sentence, clause, phrase or portion of this Resolution is for any reason held to be invalid or unconstitutional by a decision of a court of competent jurisdiction, such decision shall not effect the validity of the remaining portions of the Resolution. The Board of Directors of the Redevelopment Agency hereby declares that it would have adopted this Resolution, and each section, subsection, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one of more sections, subsections, sentences, clauses, phrases or portions be declared invalid or unconstitutional. PASSED, APPROVED AND ADOPTED by the Board of Directors of the Redevelopment Agency of the City of Temecula this 9th day of November, 1999. ATTE T: ' Susan . Jon E /City ~s Cnasrperson STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE) ss CITY OF TEMECULA ) I, Susan W. Jones, CMC/AAE, Secretary of the Redevelopment Agency of the City of Temecula, California, do hereby certify that Resolution No. RDA 99-17 was duly and regularly adopted by the Board of Directors of the Redevelopment Agency of the City of Temecula at a regular meeting thereof held on this 9th day of November, 1999, by the following vote: AYES: 5 AGENCYMEMBERS: Comerchero, Ford, Roberts, Stone, Lindemans NOES: 0 AGNECYMEMBERS: None ABSENT: 0 AGNECYMEMBERS: None R:Resos RDA 99-17 3