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Current Council Agenda and Past Meeting Information

 

CITY COUNCIL AGENDA ITEM NO. 4

Meeting Date: November 14, 2006

Subject/Title: Adopt a Resolution approving and authorizing the City Manager to execute the First Amendment to Agreement for Purchase and Sale of Interests in Real Property with Reine Lea as Surviving Trustee of the Vernon and Reine Lea Family Revocable Trust dated March 15, 1996.

Prepared by: Public Works: D. Galey

Submitted by: Public Works: B. Grewal
____________________________________________________________________________

RECOMMENDATION
Adopt a Resolution approving and authorizing the City Manager to execute the First Amendment to Agreement for Purchase and Sale of Interests in Real Property with Reine Lea as Surviving Trustee of the Vernon and Reine Lea Family Revocable Trust dated March 15, 1996.

PREVIOUS ACTION
On January 12, 1999, by Resolution No, 99-1, City Council approved an Agreement for Purchase and Sale of Interests in Real Property with Reine Lea as Surviving Trustee of the Vernon and Reine Lea Family Revocable Trust dated March 15, 1996.

BACKGROUND
With approval and execution of the Agreement for Purchase and Sale of Interests in Real Property with the Lea Family in January of 1999, the City was able to acquire the necessary property and therefore construct Sand Creek Road east of Shady Willow Lane to Fairview Avenue. Through this agreement the City was also able to obtain property that will be included as a portion of the Sand Creek Community Park, to be located at the northwest corner of Sand Creek Road and Fairview Avenue.

The previously executed agreement outlined payment by the City for the land purchase in two ways: (1) cash payment in the amount of $300,000; and (2) Fee Credits in the amount of $156,860 to be applied at building permit issuance during future development of the remaining Lea property located at the northeast corner of Sand Creek Road and Shady Willow Lane. This amount was based on an objective appraisal of the value of the property. Section 7 of the agreement also included an inflationary factor, based on the Engineering News Record Construction Cost Index, to be applied to the Fee Credits until such time as permits are issued and the credits can be applied. The Lea Family has subsequently sold the property and will not be developing and pulling building permits; therefore does not currently have a means through the original agreement to receive the Fee Credits and remaining value of the property.

This agreement amendment outlines a cash payment to the Lea Family of the remaining Fee Credits, including the inflationary factor, upon permit issuance and fee collection by the City of the current owner/developer of the property. This current owner/developer is Mercy Housing that has approval for a 96 unit multi-family residential project.

FISCAL IMPACT
Upon fee payment and receipt of funds by the City from the current owner/developer, cash payment will be made to the Lea Family from facility fee funds. The current amount is, including inflationary factors, Roadway Facility Fund $129,000 and Parks and Trails Facility Fund $65,193. The net dollar amount to the facility fee accounts will be the same by either reducing developer fees by providing Fee Credits or providing a cash payment.

Attachments:
Resolution
First Amendment to Agreement for Purchase and Sale of Interests in Real Property
Agreement for Purchase and Sale of Interests in Real Property
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BRENTWOOD APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE FIRST AMENDMENT TO AGREEMENT FOR PURCHASE AND SALE OF INTERESTS IN REAL PROPERTY WITH REINE LEA AS SURVIVING TRUSTEE OF THE VERNON AND REINE LEA FAMILY REVOCABLE TRUST DATED MARCH 15, 1996.

WHEREAS, on January 12, 1999, by Resolution No, 99-1, City Council approved an Agreement for Purchase and Sale of Interests in Real Property with Reine Lea as Surviving Trustee of the Vernon and Reine Lea Family Revocable Trust dated March 15, 1996; and

WHEREAS, pursuant to the 1999 agreement, the Lea Family was to be paid in cash and Fee Credits for property acquired by the City for Roadway and Park purposes; and

WHEREAS, the Lea Family has sold their remaining property and the Agreement Amendment is now necessary for the distribution of the Fee Credits through a cash payment.

NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Brentwood that:

1. The City Council does hereby approve and authorize the City Manager to execute the First Amendment to Agreement for Purchase and Sale of Interests in Real Property with Reine Lea as Surviving Trustee of the Vernon and Reine Lea Family Revocable Trust dated March 15, 1996.

2. Payment will be made to the Lea Family in accordance with the First Amendment to Agreement for Purchase and Sale of Interest in Real Property.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Brentwood at a regular meeting held on the 14th day of November 2006 by the following vote:
 

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