| | | | | | | | Agenda Item - 4.b.
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
| To: | Scott C. Stiles
| From: | Lisa L. Kim
| | Dept.: | City Manager
| Dept.: | Economic Development
| | Subject: | Approval of an Extension of Term of Negotiation Period to the Second Amended and Restated Exclusive Negotiation Agreement between the City of Garden Grove and Kam Sang Company for property located on the northwest corner of Twintree Avenue and Harbor Boulevard, Garden Grove, California. (Action Item) | Date: | 11/27/2018 |
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| | | | | | | | OBJECTIVE
To request the City Council consider approval of an Extension of Term of Negotiation Period to the Second Amended and Restated Exclusive Negotiation Agreement (ENA) between the City and Kam Sang Company (as successor to Palm Court Lodging) (“Developer”) for the development of approximately 9.08 acres of real property located on the northwest corner of Twintree Avenue and Harbor Boulevard, Garden Grove, California. |
| | | | | | | | BACKGROUND
On April 24, 2018, the City Council approved a Second Amended and Restated ENA between the City and the Developer for the development of an approximately 9.08 acre site that includes property that is subject to an enforceable disposition and development agreement between the Developer and the former Agency for Community Development. Since then, the Developer has made progress on the development of the Nickelodeon Resort, and has completed the following required items pursuant to the Second Amended ENA: the CEQA and NEPA Studies Phase I Environmental Report, the Geotechnical Study, and has initiated the Traffic Study. |
| | | | | | | | DISCUSSION
The Developer has requested the City consider an Extension of Term of Negotiation Period to the Second Amended and Restated Exclusive Negotiation Agreement to modify the certain business points, which will allow the Developer to complete the following:
- Complete the CEQA and NEPA Environmental Review Process;
- Prepare an updated timeline; and
- Prepare a detailed construction schedule of development.
After completion and approval of both the CEQA and NEPA Environmental Review Process, staff will bring forward a Disposition and Development Agreement “DDA” for City Council consideration. |
| | | | | | | | FINANCIAL IMPACT
There is no impact to the City’s General Fund. If the City determines and proceeds with a DDA with the Developer, the project is anticipated to generate significant new annual property tax revenues. Additional financial impacts will be identified in connection with the final DDA consideration. |
| | | | | | | | RECOMMENDATION
It is recommended that the City Council:
- Consider approving the attached Extension of Term of Negotiation Period to the Second Amended and Restated Exclusive Negotiation Agreement; and
- Authorize the City Manager to make minor modifications, execute pertinent documents, and amend or extend the ENA period.
By: Monica L. Covarrubias, Project Manager
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