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
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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 .
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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
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