City of Brentwood
Home PageContact Us!Back

City Administration

2010 Council Goals and Strategic Plan | City Council Members | Calendar of Events | Elections
eNotification | Sub-Committees| Pledge of Allegiance Sign Ups | Invocation Sign Up
Live Streaming Council Meeting | Streaming PC Help |
Streaming Mac Help |

Current Council Agenda and Past Meeting Information

 

CITY COUNCIL AGENDA ITEM NO. 12

Meeting Date: January 9, 2007

Subject/Title: Adopt a Resolution approving and authorizing City Manager or her designee to execute Amendment No. 4 to Purchase Agreement with Pizzagoni Family, Inc., to extend the closing date for sale of property at Sunset Industrial Complex.

Prepared by: Gina Rozenski, Redevelopment Manager

Submitted by: Howard Sword, Director of Community Development


RECOMMENDATION
Adopt a Resolution approving and authorizing City Manager or her designee to execute Amendment No. 4 to Purchase Agreement with Pizzagoni Family, Inc., to extend the closing date for sale of property at Sunset Industrial Complex.
PREVIOUS ACTION
 City Council authorized the purchase of approximately 40 acres of property located at the northeast corner of Tresch and Sunset Roads.

 City Council authorized the master-plan and prepare environmental documents for approximately 132 acres of city owned land northeast of Tresch and Sunset Roads to include a 49.2 acre Wastewater Treatment Plant, 2.7 acre Solid Waste Plant, 37.7 Sports Park, 13.3 acre Corporation Yard and a 28.4 acre Industrial Complex.

 On April 13, 2004, the City Council approved the form of Purchase Agreements and Grant Deeds for the sales and authorized the City Manager to execute documents necessary to close the transactions.

 On September 14, 2004, the City Council authorized the City Manager to execute a Purchase Agreement for the sale of Lot 22 to Pizzagoni Towing.

 On January 24, 2006, the City Council authorized the City Manager to execute Amendment No. 1 to the Purchase Agreement with Pizzagoni Towing to extend escrow to May 1, 2006.

 On May 23, 2006, the City Council authorized the City Manager to execute Amendment No. 2 to the Purchase Agreement with Pizzagoni Towing to extend escrow to September 30, 2006.


BACKGROUND
As a condition of purchase, buyers at Sunset Industrial Complex are required to provide to the City evidence of financing sufficient to acquire the property, to pay development fees and to complete construction of the improvements for the business operation on the property. Staff has received assurances from Pizzagoni’s lender that such a letter is forthcoming, but they won’t issue it until the Planning Commission approves the design review and construction bids are received.
The Planning Commission approved Pizzagoni’s design review application on June 1, 2006. At that time, Pizzagoni advised staff that construction bids and architect drawings were due to the lender no later than September 30, the date to close as approved by Amendment No. 2. This did not leave sufficient time for the bank to review the construction bids, issue its letter of financing commitment to the City, and for the title company to draw the escrow papers. Therefore, the closing date for this Purchase Agreement was extended by Amendment No. 3 until December 15, 2006.
On December 4, 2006, Pizzagoni advised staff that they were unable to meet the closing date of December 15, 2006, due to a delay in preparing the civil engineering and architectural drawings needed for the construction bids. The construction bids are expected no later than December 2006. Therefore, in order to cause the lender to submit its letter of financing to the City after bid submittals, Pizzagoni is requesting the closing date for this Purchase Agreement be extended to February 15, 2007.
The qualifications and identities of the buyers were of particular concern to the City, and it is because of such qualifications and identities that the City entered into the Purchase Agreements with the selected buyers. Relocation of industrial employers from areas within the Merged Redevelopment Project Areas received additional points during the purchaser selection process by the Council. Pizzagoni currently operates their businesses from the Merged Redevelopment Project Areas and is a prime example of the type of businesses that the City envisioned for Sunset Industrial Complex.

The City and Pizzagoni have made good faith efforts to comply with our respective obligations as provided in the Purchase Agreement. Staff requests approval from the Council for a fourth amendment to extend the closing date for Pizzagoni to February 15, 2007.

FISCAL IMPACT
None at this time.

Attachments:
Resolution
Amendment


RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BRENTWOOD APPROVING A FOURTH AMENDMENT TO THE PURCHASE AGREEMENT FOR SUNSET INDUSTRIAL COMPLEX WITH KRISTINA PIZZAGONI REYNOLDS TO EXTEND THE CLOSING DATE, AND AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT AND ANY RELATED DOCUMENTS.


WHEREAS, on January 12, 1999, City Council authorized the purchase of approximately 40 acres of property located at the northeast corner of Tresch and Sunset Roads; and

WHEREAS, on February 8, 2000, City Council authorized the master-plan and environmental documents for approximately 132 acres of City-owned land northeast of Tresch and Sunset Roads to include a Wastewater Treatment Plan, Solid Waste Plan, Sports Park, Corporation Yard and Industrial Complex; and

WHEREAS, on July 23, 2002, the City Council adopted Ordinance No. 710 approving the Planned Development Zoning for Sunset Industrial Complex; and

WHEREAS, on September 14, 2004, the City Council authorized the City Manager to execute the Purchase Agreement with Kristina Pizzagoni Reynolds (“Pizzagoni”). The Purchase Agreement was executed on October 12, 2004; and

WHEREAS, on January 24, 2006, the City Council approved Amendment No. 1 to the Purchase Agreement with Pizzagoni to extend the escrow to May 1, 2006; and

WHEREAS, on May 23, 2006, the City Council approved Amendment No. 2 to the Purchase Agreement with Pizzagoni to extend the escrow to September 30, 2006; and

WHEREAS, on September 26, 2006, the City Council approved Amendment No. 3 to the Purchase Agreement with Pizzagoni to extend the escrow to December 15, 2006; and

WHEREAS, the qualifications and identities of the buyers are of particular concern to the City, and it is because of such qualifications and identities that the City entered into the Purchase Agreements with the selected buyers; and

WHEREAS, voluntary relocation of industrial employers from areas within the Merged Redevelopment Project Areas received additional points during the purchaser selection process by the Council, will open future redevelopment opportunities at vacated sites along Brentwood Boulevard, and Pizzagoni is a prime example of the type of business envisioned by the City for Sunset Industrial Complex; and

WHEREAS, the Purchase Agreements includes Section 19 that allows the Purchase Agreements to be amended only by written instrument executed by City and Purchaser; and

WHEREAS, the City and Pizzagoni have made good faith efforts to comply with their respective obligations as provided in the Purchase Agreements, and each desire to extend the escrow date for this transaction.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brentwood hereby approves and authorizes the City Manager or her designee to execute Amendment No. 4 to the Purchase Agreement for Sunset Industrial Complex with Kristina Pizzagoni Reynolds, or her designee, to extend the close date to February 15, 2007, and authorizes the City Manager or her designee to execute the amendment and other documents as may be needed to complete the transaction.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Brentwood at a regular meeting held on the 9th day of January 2007 by the following vote:


Amendment No. 4 to Purchase Agreement and City’s Option to Repurchase
(Pizzagoni Family, Inc.)

This Amendment No. 4 is entered into and effective as of the ____ day of ___________ 2006, amending the Purchase Agreement and City’s Option to Repurchase dated October 12, 2004 (the “Agreement”) by and between the City of Brentwood, a municipal corporation, (“City”), and Pizzagoni Family, Inc. (“Purchaser”) (collectively, the “Parties”) for the purchase and option to repurchase certain real property (the “Property”) situated in the City of Brentwood.

Recitals

A. As a condition of purchase, Purchaser is required to provide evidence of financing sufficient to acquire the Property, pay development fees and complete construction of the improvements for the business operation on the Property.

B. Staff has received assurances from Purchaser’s lender that such a letter is forthcoming, but not until the Purchaser has received Planning Commission approvals and construction bids.

C. The Purchaser received Planning Commission approvals for design review in June 2006.

D. The Purchaser expected to receive construction bids on the approved building plans by the end of September 2006. However, civil engineering and architectural drawings were delayed and bids were late. The Purchaser now expects to receive construction bids on the approved building plans by the end of December 2007. The evidence of financing letter from the Purchaser’s lender shall then be submitted to the City in January 2007.

E. The Parties amended the Agreement by executing Amendment No. 1 on January 24, 2006, to extend the period of time in which to close escrow on the Property to May 1, 2006.

F. The Parties amended the Agreement a second time by executing Amendment No. 2 on May 23, 2006, to extend the period of time in which to close escrow on the Property to September 30, 2006.

G. The Parties amended the Agreement a third time by executing Amendment No. 3 on September 26, 2006, to extend the period of time in which to close escrow on the Property to December 15, 2006.

H. The Parties desire to amend the Agreement a fourth time to further extend the amount of time to close escrow on the Property.

I. City and Purchaser have made good faith efforts to comply with their respective obligations as provided in the Agreement, as amended.

J. The Parties have reached agreement on specific language for the amendment and desire to memorialize it herein.

Now, therefore it is agreed as follows:

1. That the first paragraph of Section 1.03 of the Agreement, as amended, is hereby amended in its entirety as follows:

1.03 Escrow. The City has opened an escrow with North American Title Company, as escrow agent (the “Escrow Agent”) in Brentwood, California. The date of opening of escrow (“Opening Date”) is the date the City deposited the Deposit with the Escrow Agent. The close of escrow shall mean the recordation of the grant deed (“Closing Date”). The Closing Date shall occur by February 15, 2007.

2. All other provisions of the Agreement, as amended, will remain in full force and effect.

3. The individuals executing this Amendment No. 4 and the instruments referenced in it on behalf of Purchaser represent and warrant that they have the legal power, right and actual authority to bind Purchaser to the terms and conditions of this Amendment No. 4.

IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 4 to be executed by their respective representatives thereunto duly authorized.

CITY OF BRENTWOOD PURCHASER:
PIZZAGONI FAMILY, INC.


Donna Landeros, City Manager
Kristina Reynolds



ATTEST:



Margaret Wimberly, City Clerk



APPROVED AS TO FORM:



Damien B. Brower, City Attorney

 

City Administration
City of Brentwood City Council
150 City Park Way
Brentwood, CA 94513
(925) 516-5440
Fax (925) 516-5441
E-mail allcouncil@brentwoodca.gov