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HomeMy WebLinkAboutOption Agmt Chinatown - lettercity Of san Luis osisp o 990 Palm Street, San Luis Obispo, CA 93401-324 9• April 26, 2005 Scott W . Wall Andre, Morris & Buttery 1102 Laurel Lane P .O . Box 73 0 San Luis Obispo, California 93406-073 0 Re : Chinatown Optio n Dear Mr . Wall : Thank you for your letter of April 13, 2005 regarding your clients' concerns about th e Chinatown Option Agreement . We have now had an opportunity to review and consider th e information included in your letter and respond as follows . With respect to your input regarding easements apparently affecting the Bello and Pie r One buildings, the City notes your clients' concerns and will consider the informatio n contained in your letter more thoroughly at such time as any action is taken to pursu e development of the property that is the subject of the Chinatown Option . However, as there i s no development plan currently on file with the respect to the subject property, the City has no t undertaken any extensive review of the viability of any particular project or the potentia l impacts of any development on neighboring properties . We believe such review would b e premature given the absence of a formal development proposal . As your clients are aware, no development in the City proceeds without extensive Cit y review and ample opportunity for and consideration of community input . The City has always found participation from community stakeholders to be an invaluable tool in assistin g both staff and the City Council in their careful analyses of development impacts o n neighboring property owners and the community as a whole . Such community input is an integral part of the City review process and staff looks forward to your clients' activ e participation in the public review process that will follow the submission of any developmen t proposal . With regard to your suggestion that the Chinatown Option expired on August 18 , 2004, we have reviewed the relevant documents and respectfully disagree . You are correc t that the Option To Purchase Agreement is hand-dated February 18, 2003 . However, both th e • Payment Agreement and the Real Property Exchange Agreement contain the Conditio n The City of San Luis Obispo is committed to include the disabled in all of its services, programs and activities . Telecommunications Device for the Deaf (805) 781-7410 . • Scott W . Wal l April 26, 2005 Page 2 Precedent to Exchange that "The City and the Copelands shall have executed the Optio n Agreement (the "Chinatown Option Agreement"), and deposited it with the Escrow Compan y with the instructions to date the Chinatown Option Agreement as of the Closing Date ..." Clearly, the insertion of the February 18 date into the agreement reflects a clerical error on th e part of the Title Company, which is inconsistent with the expressed intent and mutua l agreement of the parties to the Option Agreement . The closing occurred on November 5 , 2003 . Thus, it remains the City's position that the Option Agreement was intended to an d does extend until May 5, 2005 . Consequently, the City considers the option payment receive d from the Copelands on April 14, 2005 to be timely . Should the current option expire without action to extend or exercise the option, th e City likely would solicit requests for proposals to develop the property and certainly woul d welcome any development proposal your clients might wish to submit at the appropriate time . Thank you again for your letter and please feel free to call should you have any furthe r questions regarding this matter . Very truly yours , JPL/jc d cc : Ken Hampian, City Administrative Office r Shelly Stanwyck, Economic Development Directo r Suzanne Fryer, Esq . onathan P . Lowel l City Attorney • • •