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Meeting Date: July 11, 2000

Subject/Title: Assignment of Certain Rights from K & B Northern California and others to K & B South Bay Provided In a Development Agreement, Subdivision 8199 and 8342

Submitted by: Dennis Beougher, City Attorney

Approved by: Jon Elam, City Manager


Authorize the City Manager to execute the attached Assignment of certain rights provided in a Development Agreement, dated 5/25/99, from Kaufman & Broad of Northern California, Frank Sciortino, and the Estate of Theodore Sciortino to Kaufman & Broad South Bay.


The City previously approved a Development Agreement, dated 5/25/99, with Kaufman & Broad Northern California, Frank Sciortino, and the Estate of Theodore Sciortino for approximately 89 acres, generally located on the west side of Walnut Boulevard and south of Continente Avenue.


Kaufman & Broad has recently completed an area reorganization. Kaufman & Broad South Bay will assume operations within Contra Costa County from Kaufman & Broad Northern California. As a result, Kaufman & Broad Northern California has requested pursuant to the Development Agreement, Section 7 to assign certain rights and obligations, as specified in the attached Assignment to Kaufman & Broad South Bay.

Development Agreement, Section 7.1(a) provides as follows:

"Kaufman & Broad shall have the right to sell, assign, or transfer this Agreement, and all of its rights, duties and obligations hereunder, to any person at any time during the Term, subject to the prior written approval of the City Council. Such approval shall be granted where the buyer, assignee or transferee has demonstrated the experience, qualifications and financial resources to complete and operate the Project, or applicable portions thereof, to the reasonable satisfaction of the City. Kaufman & Broad and each Assignee shall enter into a written assignment agreement that specifies the obligations to be undertaken by the Assignee. The form and content of each assignment agreement shall be subject to approval of the City Attorney. Approval of proposed assignments shall not unreasonably be withheld."

Kaufman & Broad South Bay has a proven record of both experience and financial resources to complete the subdivisions' improvements. K & B South Bay has provided the attached Assignment that has approved as to form by the City Attorney.

K & B of Northern California will continue to build California Grove and complete the warranty work in California Spirit and Glory subdivisions, as required by provisions of the Development Agreement. K & B South Bay will build out the Sciortino project and all subsequent K & B projects in Brentwood. All major terms and conditions of the Development Agreement will remain in effect and there will be no modification of the Development Agreement, except adding K & B South Bay as a responsible party.


Assignment Agreement

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