In January 2007, the Garden Grove Agency for Community Development (“Former Agency”) entered into a Disposition and Development Agreement (“DDA”) with Landmark Companies, LLC (“Developer”) that provided for development of the Embassy Suites Hotel and a future hotel expansion.  On February, 1, 2012, all California Redevelopment Agency’s were officially dissolved. Subsequently, the Successor Agency has completed all of the requirements of the dissolution statutes and received a Finding of Completion from the California Department of Finance on May 15, 2013. 

On February 15, 2017, the Developer submitted a formal letter to the Successor Agency requesting termination of the 2007 DDA based on a failure of a condition precedent.  Under the terms of the DDA, the ability of the Former Agency and the Developer to perform, with respect to the acquisition of an interest in land and subsequent development, was premised upon the ability of the Former Agency to acquire from the Garden Grove Sanitary District, an interest in certain real property (referred in the DDA as the “Agency Parcels”).  Due to a variety of circumstances that are not the fault of either party to the DDA, neither the Former Agency nor the Successor Agency was able to acquire the requisite interest in the Agency Parcels. Therefore, it is not feasible for either party to proceed with development under the DDA due to many conditions as required by Section 204.1 and 204.2 of the DDA. Both the Successor Agency and Developer are now in mutual agreement to terminate the DDA for the Embassy Suites Expansion.  The Successor Agency   approved termination of the DDA on March 14, 2017.

There is no impact to the General Fund nor the Successor Agency’s Recognized Obligation Payment Schedule. 

It is recommended that the Oversight Board:

• Adopt the Resolution to approve the termination of the Disposition and Development Agreement with Landmark Companies, LLC; 

• Authorize the Director to execute the Notice of Termination; and

• Transmit the Notice of Termination to the Department of Finance for approval.

By:  Greg Blodgett, Sr. Project Manager