G.8 - Greens amendment #2Amendment #2 to the Purchase and Sale and Reimbursement Agreements Between the City of Grant Terrace and Greens INV 11, LLC.
JULY 13, 2021
2030 VISION STATEMENT 2019-2020 PRIORITY PROJECTS
Goal #3, Promote Economic Development
Sale of property for ultimate development
Priority Projects List
Top Priority Project
•City Manager
•Planning and Development Services
Successor
AgencyBauman
Parcel C
22273 Barton Rd
APN 1167-231-02
Parcel A
22317 Barton Rd
APN 1167-311-01
Parcel B
22293 Barton Rd
APN 1167-231-01
ORIGINAL PURCHASE AND SALE AGREEMENT
Purchase Price
$1,502,523
10% Deposit at opening of escrow ($150,000)
Due Diligence Period
180 days
Buyer can terminate during this period
Escrow closes
30 days after due diligence
10 days after entitlement appeal period ends
PURCHASE
AND SALE
AGREEMENT
Concept Plan-mixed use development
•Buyer submits 60 days after escrow opens
•Preferred uses: Hotel, office, restaurants, retail uses and multiple family
•Non permitted uses: Gas station, automotive sales, laundromats, pawn shops, used appliances, schools
CEQA and Entitlements
•Buyer responsible for obtaining land use approvals and CEQA clearances
•Buyer can terminate if not in agreement with conditions
PURCHASE
AND SALE
AGREEMENT
Development Covenants and Re-purchase Option
•Construction plans for on-site and off-site work (excluding buildings)
•Construction of on-site and off-site work
•Grading, building pads, utilities and parking lots
•Complete in 24 months, with 24-month extension in the event of an economic downturn
•If completed, covenants and repurchase option is terminated
Should grantee default and prior to release of covenants, City may repurchase
•Buy back at purchase price, plus third party costs
Background
In accordance with the executed PSA, escrow was
opened with a deposit of $150,000; Concept Plans
were approved by the Council on October 22,
2019; and the entitlement process needed to start
45 days after Council approved Concept Plans.
City Staff and Greens Group worked diligently to
advance the project.
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Amendment #1
In March, 2020 the Greens Group
contacted the City to reiterate its
commitment to the project but expressed
concerns as the economy began to shut
down, because of COVID-19.
Amendment #1
Under the proposal presented to the Council, the current
$150,000 in deposit will be re-allocated as follows:
$100,000 will be returned from escrow to Greens Group
to provide Greens Group additional liquidity for the
development of the project.
$15,000 will be retained in deposit in escrow.
$35,000 will be provided to the City as consideration for
this amendment, including the extensions, additional
carry costs, and, due to the delay.
Amendment #1
The amendment made no other changes
to the original PSA, including the purchase
price. Additionally, the Reimbursement
and Indemnification Agreement is not
affected and, therefore, remains in effect
as originally approved by the City and
Greens Group.
AGENDA ITEM G.8
The Greens Group Amendment #2
Amendment #2
Purchase with Promissory Note of ($1027,523) and Balance of Purchase in Good Funds (Cash of approximately $460,000
Amendment to Grant Deed
Entitlement Period –3 years
Work Covenants –Grantee has 2 years to complete site work and off-site construction work (can provide security bond
Property can be sold to another developer but must comply with approved concept plans.
Recommendation
This Amendment further demonstrates the Greens
INV 11, LLC, is still committed to the project and
ensures the developer will diligently move forward
with entitlements and work covenants.
Recommendation
Staff recommends the City Council approve
Amendment #2 to the Purchase and Sales
Agreement with 1 modification as identified by
Mayor McNaboe.
Questions