G.6 - GT Third Amend to DDA Reimbursement AgreementApproval of Third Amendment to the
Disposition and Development Agreement
& Reimbursement Agreement with Lewis
Land Developers, LLC
November 14, 2023
Presented by Adrian R. Guerra, City Attorney
City Council
Goals
Goal #1
“Ensure Fiscal Viability” by securing appropriate
cost recovery for services.
Goal #2
“Promote Economic Development” by developing
proactive economic development plan to support
retention and expansion of existing businesses.
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Issue 1
Disposition
and
Development
Agreement
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December 19, 2016
Initial Agreement
City entered into DDA with
Lewis Land Developers,
LLC selling approximately
44 acres to develop a
residential project.
February 27, 2017
Amendment
No. 1 to DDA
April 28, 2017
Amendment
No. 2 to DDA
May 2, 2017
Closing Date
Section 16 of DDA
provided repurchase
right to City if Developer
did not commence
grading within 7 years
from closing date.
May 2, 2024
Outside Grading
Commencement Date
Seven-year mark triggering
City’s repurchase right.
Disposition
and
Development
Agreement
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Developer has been processing entitlements for the
project.
Environmental Impact Report, General Plan Amendment,
Gateway at Grand Terrace Specific Plan, Zone Change, and
Tentative Tract Map.
Developer has requested a 90-day extension of the
Outside Grading Commencement Date.
Third
Amendment to
DDA
Extend DDA
Parties have agreed to amend the DDA to extend the
Outside Grading Commencement Date for 90 days to
July 31, 2024.
Will allow parties to negotiate important outstanding
matters relating to the project.
Empower City Manager
City Manager will have authority to execute
documents on behalf of City.
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Issue 2
Reimbursement
Agreement
No agreements or procedures in place for
reimbursement of City’s costs related to the project.
Developer had voluntarily reimbursed certain costs.
Developer has agreed to commit to reimbursing City
for all costs.
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Reimbursement
Agreement
Reimbursement for all future costs
Staff time, consultant costs, engineering costs,
attorneys’ fees and costs, expert costs, environmental
review, etc.
Reimbursement for all previous costs
Developer shall compensate City for all previously
incurred but unreimbursed costs incurred by City
starting from the original initiation of discussions on
August 6, 3014 to the effective date of the
Reimbursement Agreement.
Deposit for future expenses
Developer will deposit $100,000 for future expenses.
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Recommendation
The City Council is recommended to adopt the
following Resolution:
“A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF GRAND TERRACE, CALIFORNIA, APPROVING THE
THIRD AMENDMENT TO THE DISPOSITION AND
DEVELOPMENT AGREEMENT AND REIMBURSEMENT
AGREEMENT WITH LEWIS LAND DEVELOPERS, LLC.”
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