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REDEVELOPMENT AGENCY AGENDA ITEM NO. 03


Meeting Date: May 14, 2002

Subject/Title: Approve a Resolution Authorizing the Executive Director to Execute a First Amendment to the Agreement to Negotiate Exclusively with RHS Construction Company to Extend the Negotiation Period to October 31, 2002

Submitted by: Gina Rozenski, Redevelopment Analyst

Approved by: John Stevenson, Executive Director


RECOMMENDATION 
Approve a resolution authorizing the Executive Director to execute a first amendment to the Agreement to Negotiate Exclusively with RHS Construction Company to extend the negotiation period to October 31, 2002.

PREVIOUS ACTION
On February 8, 2000, the City Council authorized the City Manager to execute an agreement to purchase 159 Sycamore Avenue, CIP Project No. 336-3117. The property was acquired using the Housing Fund of the Redevelopment Agency, and escrow closed in March 2000. Recognizing that the ownership was inadvertently transferred to the City of Brentwood, the City Council, on May 23, 2000, authorized the City Manager to execute a Grant Deed correcting ownership to the Redevelopment Agency.

To facilitate a re-use of the property and further housing goals of the Agency, on November 14, 2000, the City Council authorized the City Manager to execute an Option to Purchase Agreement with RHS Construction Company to provide for a period of negotiations for the redevelopment of 159 Sycamore Avenue. Rather than an Option to Purchase Agreement, a more appropriate “Agreement to Negotiate Exclusively” between the Redevelopment Agency and RHS Construction was executed on February 2, 2001. 

RHS Construction submitted its application to Community Development Department on May 31, 2001, for the development of 10 detached townhomes of 1400 square feet each on .91 acres. His application was considered complete on July 6, 2001. His application consisted of a rezone from R3 (high density, multi-family residential, 11-20 du/acre) to a Planned Development to dictate development standards, a tentative map and a design review.

On October 2, 2001, the Planning Commission denied the rezone request, effectively denying the application. On October 16, 2001, the Planning Commission reconsidered the application and instructed the applicant to return to the Planning Commission with a redesign. The project returned to a Planning Commission workshop on January 29, 2002, wherein the Planning Commission gave comments on four alternative parcel and street layouts. Staff anticipates the applicant will soon submit a redesign of the parcel and internal street layouts, and staff has tentatively set a Planning Commission review of the redesign in June 2002.


BACKGROUND
Robert Sherdel, owner of RHS Construction, is a small local developer who has worked diligently with the Planning Commission on the design and planning of the proposed townhome redevelopment project. Redevelopment staff supports the housing product proposed by this local developer in that it provides for market-rate homes in an area that is perceived to be predominately “affordable” in nature. In addition, the negotiations with the developer resulted in these townhomes first being made available to residents and workers in Brentwood before being offered to the general public. The offering of units first to residents and workers in Brentwood is a large undertaking for a small developer, yet Mr. Sherdel was very receptive to the Agency’s request. 

The draft Disposition and Development Agreement was submitted to Mr. Sherdel for his review in October 2001. Depending on the direction given to Mr. Sherdel by the Planning Commission regarding the design and planning of the proposed townhome redevelopment project, the financial and performance terms and conditions of the DDA may need to be renegotiated.

The Agreement to Negotiate Exclusively provided for a negotiation period of 180 days, or July 2, 2002. In an effort to accommodate the Planning Commission’s design and planning requests, and to consider the financial and performance impacts of the final approved map and design, staff requests the Agency’s approval to extend the negotiation period to October 31, 2002, an additional 120 days. 


FISCAL IMPACT
None.

Attachments:
1. Resolution 
2. First Amendment to Agreement to Negotiate Exclusively



RESOLUTION NO. RA-


A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF BRENTWOOD AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE A FIRST AMENDMENT TO THE AGREEMENT TO NEGOTIATE EXCLUSIVELY WITH RHS CONSTRUCTION COMPANY TO EXTEND THE NEGOTIATION PERIOD TO OCTOBER 31, 2002 


WHEREAS, on February 8, 2000, the City Council of the City of Brentwood authorized the City Manager to execute an agreement to purchase 159 Sycamore Avenue, CIP Project No. 336-3117; and

WHEREAS, the property located at 159 Sycamore Avenue was acquired by the Redevelopment Agency of City of Brentwood (“Agency”) using Housing Funds; and

WHEREAS, on May 23, 2000, the City Council authorized the City Manager to execute a Grant Deed to correct and transfer ownership of 159 Sycamore Avenue to the Agency; and 

WHEREAS, on November 14, 2000, the City Council authorized the City Manager to execute an Option to Purchase Agreement with RHS Construction to provide for negotiations for the redevelopment of 159 Sycamore Avenue; and

WHEREAS, rather than an Option to Purchase Agreement, an Agreement to Negotiate Exclusively between the Agency and RHS Construction Company was executed on February 2, 2001; and

WHEREAS, this First Amendment to the Agreement to Negotiate Exclusively extends the term of the negotiation period to October 31, 2002, to continue planning and feasibility analyses of various development proposals.

NOW, THEREFORE BE IT RESOLVED that the Executive Director is authorized to execute the attached Exhibit A, “First Amendment to the Agreement to Negotiate Exclusively,” with RHS Construction Company to extend the negotiation period to October 31, 2002.

PASSED, APPROVED AND ADOPTED by the Redevelopment Agency of the City of Brentwood at a regular meeting held on the 14th day of May 2002 by the following vote:





Attachment: Exhibit A - First Amendment to the Agreement to Negotiate Exclusively 



EXHIBIT A

FIRST AMENDMENT
TO THE AGREEMENT TO NEGOTIATE EXCLUSIVELY


The Agreement entitled ”Agreement to Negotiate Exclusively” made on February 2, 2001, between the Redevelopment Agency of the City of Brentwood (“Agency”) and RHS Construction Company (“Developer”), is hereby amended as follows:


Section I. Section I of the Agreement is amended to read:

“B. Duration of This Agreement. The duration of this Agreement, hereinafter “Negotiation Period”, shall be extended until October 31, 2002.”

Section II. Except as amended by this First Amendment to the Agreement to Negotiate Exclusively, this Agreement shall remain in full force and effect.



This Amendment is executed on ___________________________.



REDEVEOPMENT AGENCY OF THE RHS CONSTRUCTION COMPANY
CITY OF BRENTWOOD

_______________________________ ________________________________
John Stevenson Robert Sherdel
Executive Director Owner 



ATTEST:

___________________________________
Karen Diaz, Agency Secretary