HomeMy WebLinkAbout11/02/1993, C-1 - CONSIDERATION OF AN AMENDMENT TO THE SUBDIVISION AGREEMENT FOR TRACT NO. 1750 (UNITS 1 & 2), EXTENDING THE TIME TO SUBMIT THE SURETY TO GUARANTEE THE SUBDIVISION IMPROVEMENTS. (ROB ROSSI, SUBDIVIDER) IIIII�I�IIIIVIIIII�III�iIIII��I r - MO, E1993
p��ui► c� o sane suis osispo No . Z
COUNCIL AGENDA REPORT ITEM NUMBER: +/
FROM:
Michael McCluskey, Public Works Director�✓ "
Prepared by: Gerald W. Kenny, Supervising Civil Engineer }
SUBJECT:
Consideration of an amendment to the subdivision agreement for Tract No. 1750 (Units 1
& 2), extending the time to submit the surety to guarantee the subdivision improvements.
(Rob Rossi, Subdivider)
CAO RECOMMENDATION:
Adopt resolution amending the subdivision agreement to allow for an additional 90 days
to submit the surety guaranteeing the subdivision improvements for Tract No. 1750 (Units
1 & 2).
BACKGROUND:
Tract No. 1750 (Units 1 & 2) was "conditionally approved" on November 10, 1992 per Resolution
No. 8086 (1992 Series). All conditions were met to allow the recordation of the final map except
submittal of the surety. The Subdivider had been working on securing bonds and was confident
that they would be issued soon after that approval. The recordation was conditioned upon
submittal of the surety within 90 days. Apparently, due to the economy and other factors, 90
days was not adequate to complete the issuance of the bonds and the Council granted three
additional 90 day extensions in order to secure the bonds per Resolution Nos. 8119, 8163 and
8200 (1993 Series). The current expiration date is November 8, 1993.
i
The Subdivider has entered into a contract with Centex-Mangano Homes; who intend to acquire
the project and pursue its construction. However, prior to the purchase, a Level 1 Environ-
mental Assessment must be completed. The report is expected to be completed by the end of
October. (See attached letter from Rob Rossi dated 10-14-93) Bonds could, therefore, be
submitted prior to the November 2 City Council meeting, thus eliminating the need for this time
extension.
Staff has been discussing the status of the bonds with the Subdivider on a regular basis. Due to
the possibility that the Subdivider may not secure the bonds by November 8th, Mr. Rossi has
requested another 90 day extension of the subdivision agreement. The Faithful Performance and
Labor & Materials bonding amounts are $1,966,500.00 and $ 983,250.00, respectively. The
conditions of this PUD are duplicate conditions of Tract 1750 (Units 1 & 2).
As mentioned above, the final map has not yet been recorded, nor have the Islay Hill open-space
and Islay Park deeds, pending the submittal of the surety. All fees have been received as noted
on the Fee and Bond List. If the time extension is not granted, certain fees would also need to
be returned to the Subdivider.
The Subdivider has executed the attached additional amendment to the Subdivision Agreement
providing for a 90 day extension to February 6, 1994.
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oi��m1►i�IUIIIIIIUIII°�u'9�UIU city of San LUIS OBISPO
COUNCIL AGENDA REPORT
Tract No. 1750 (Units 1 & 2)
Meeting of November 2, 1993
Page Two
ALTERNATIVES:
Option 1: Deny extension of the time to submit the subdivision surety.
CONSEQUENCES OF NOT TAKING THE RECOMMENDED ACTION:
The final map would not be recorded and the Subdivider would need to process a new tentative
and final map. A question of validity of the recently approved tentative map (Tract 2134) would
be an issue, since that map was processed as a re-subdivision of this tract.
Under the Subdivision Agreement, the Subdivider agrees to install "all' of the park improvements
without any City capital funds. This savings to the City of several thousand dollars, as compared
to the phasing and financial plan approved with the tentative map for this tract and provided for
in the Edna-Islay Specific Plan would be lost.
The residents in the existing homes in the Arbors development have been eagerly awaiting the
park development, having contributed towards its development via $ 750 per lot assessments,
paid to the City through escrow, as the homes were sold.
The Open-Space easement deed for Islay Hill would be returned. It would still be a condition of
a new subdivision, but may not be dedicated as early in the development of the area per the
Specific Plan.
The lot for the Housing Authority would not be created for development until a new subdivision
was processed and recorded.
FISCAL IMPACT:
I
There are no new fiscal impacts related to the recommended action.
CONCURRENCES:
The Community Development Director and City Attorney concur with the recommended action.
Attachments:
1 - Draft resolution and agreement amendment
2 - Map
3 - Resolution No. 8200 (1993 Series)
4 - Rob Rossi letter dated 10-14-93
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RESOLUTION NO. (1993 SERIES)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO
APPROVING AN AMENDMENT TO THE SUBDIVISION AGREEMENT
FOR TRACT NO. 1750 (UNITS 1 & 2)
EXTENDING THE TIME TO SUBMIT SURETY
(Rob Rossi, Subdivider)
WHEREAS, the City Council conditionally approved the final map for Tract 1750
(Units 1 & 2) per Resolution No. 8086 (1992 Series), subject to submittal of adequate
surety by February 10, 1993, guaranteeing installation of the required subdivision
improvements , and
WHEREAS, the City Council approved amendments to the subdivision agreement,
the last of which extended the time to submit required surety to November 8, 1993 per
Resolution No. 8200 (1993 Series), and
WHEREAS, the Subdivider has requested an additional 90 days in order to provide
said surety.
NOW THEREFORE, BE IT RESOLVED that the attached amendment (Exhibit A)
to the Subdivision Agreement for Tract No. 1750 (Units 1 & 2) is hereby approved and
the Mayor is authorized to sign the amendment.
The surety shall be submitted on, or before February 6, 1994, or this approval
shall become null and void. The final map shall not be recorded until submittal and
approval of the surety, to the satisfaction of the City Attorney.
On motion of , seconded by and on the following roll
call vote:
Resolution No. (1993 Series)
Page Two
AYES:
NOES:
ABSENT:
the foregoing Resolution was passed and adopted this day of , 1993.
ATTEST: MAYOR
CITY CLERK
APPROVED AS TO FORM:
*iAtt ey
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EXHIBIT A
SUBDIVISION AGREEMENT AMENDMENT
THIS AGREEMENT, dated this day of ,
1993 by and between Robin L. Rossi, herein referred to as
"SUBDIVIDER", and the City of San Luis Obispo, herein referred to
as "City".
WITNESSETH:
Reference is hereby made to that certain real property in the
City of San Luis Obispo, County of San Luis Obispo, State of
California, as shown on the final map of Tract No. 1750 (Units 1
& 2) , as approved by the City Council on November 10, 1992 .
WHEREAS, a Subdivision Agreement was entered into between the
above-mentioned parties to guarantee completion of the subdivi-
sion requirements, and
WHEREAS, the subdivision agreement provided for satisfactory
surety to be submitted by February 10, 1993 , and
WHEREAS, the City Council approved an amendment to the
subdivision agreement per Resolution No. 8220 (1993 Series) which
extended the time to submit the surety to November 8, 1993 , and
WHEREAS, the subdivider has requested an additional 90 days
to submit said surety.
Tract No. 1750 (Units 1 & 2)
Page Two
NOW THEREFORE BE IT RESOLVED that the subdivision agreement
dated November 10, 1992 for Tract No. 1750 (Units 1 & 2) is
hereby modified to extend the time to submit the required
Faithful Performance and Labor & Materials surety by an
additional 90 days to February 6, 1994. All other provisions of
the aforementioned Subdivision Agreement shall remain in force.
IN WITNESS WHEREOF, this agreement has been executed by:
SU D
R bin L. Rossi
APPROVED: City of San Luis Obispo
MAYOR - Peg Pinard
ATTEST:
CITY CLERK - Diane Gladwell
APPROVED AS TO FORM:
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RESOLUTION NO8200(1993 SERIES)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO
APPROVING AN AMENDMENT SUBDIVISION SUBDIVISION AGREEMENT
FOR TRACT O. UNITS 1 & 2)
EXTENDING THE TIME TO SUBMIT SURETY
(Rob Rossi, Subdivider)
WHEREAS, the City Council conditionally approved the final map for Tract 1750
(Units 1 & 2) per Resolution No. 8086 (1992 Series), subject to submittal of adequate
surety by February 10, 1993, guaranteeing installation of the required subdivision
improvements , and
WHEREAS, the City Council approved an amendments to the subdivision
agreement per resolution No. 8119 (1993 Series) on February 6, 1993 which extended the
time to submit the surety to May 11, 1993, and per resolution No. 8163 (1993 Series) on
May 4, 1993 which extended the time to submit the surety to August 9, 1993, and
WHEREAS, the Subdivider has requested an additional 90 days in order to provide
said surety.
NOW THEREFORE, BE IT RESOLVED that the amendment to the subdivision
Agreement for Tract No. 1750 (Units 1 & 2) is hereby approved and the Mayor is
authorized to execute the amendment.
The surety shall be submitted on, or before November 8, 1993,or this approval
shall become null and void. The final map shall not be recorded until submittal and
approval of the surety, to the satisfaction of the City Attorney.
On motion of Raupa , seconded by Settle and on the following roll
call vote:
R-8200
G./-8
Resolution Nd200(1993 Series)
Page Two
AYES: Council Members Rappa, Settle, Roalman, and Mayor Pinard
NOES: None
ABSENT: Council Member Romero
the foregoing Resolution was passed and adopted this 3r_ day of August , 1993.
ATTEST: MAYOR PEG PINARD
C CLE E R. GLADWELL
APPROVED AS TO FORM:
trey
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EXHIBIT A
SUBDIVISION AGREEMENT AMENDMENT
THIS AGREEMENT, dated this 30rd day of August ,
1993 by and between Robin L. Rossi, herein referred to as
"SUBDIVIDER" , and the City of San Luis Obispo, herein referred to
as "City" .
WITNESSETH:
Reference is hereby made to that certain real property in the
City of San Luis Obispo, County of San Luis Obispo, State of
California, as shown on the final map of Tract No. 1750 (Units 1
& 2) , as approved by the City Council on November 10, 1992 .
WHEREAS, a Subdivision Agreement was entered into between the
above-mentioned parties to guarantee completion of the
subdivision requirements, and
WHEREAS, the subdivision agreement provided for satisfactory
surety to be submitted by February 10, 1993 , and
WHEREAS, the City Council approved an amendment to the
subdivision agreement per Resolution No. 8119 (1993 Series) which
extended the time to submit the surety to May 11, 1993, and per -
Resolution No. 8163 (1993 Series) which extended the time to
submit the surety, to August 9, 1993, and
WHEREAS, the subdivider has requested an additional 90 days
to submit said surety.
Tract No. 1750 (Units 1 & 2)
Page Two
NOW THEREFORE BE IT RESOLVED that the subdivision agreement
dated November 10, 1992 for Tract No. 1750 (Units 1 & 2) is
hereby modified to extend the time to submit the required
Faithful Performance and Labor & Materials surety by 90 days
to November 8, 1993. All other provisions of the aforementioned
Subdivision Agreement shall remain in force.
IN WITNESS WHEREOF, this agreement has been executed by
SU I I ER
bin L. Rossi
APPROVED: City of San Luis Obispo
i
MAYOR -(/Peg Pinard
ATTEST:
`,7
CI Y C - Di n Gladwell
i
APPROVED AS TO FORM:
Crelf fr y Jo gensen
City Attorney
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"Enterprises
P.O.Box 2119
Avila Beach.CA 93424
October 14, 1993
i T-
Mr. Jerry Kinney
_ City of San Luis Obispo
990 Palm Street
San Luis Obispo, CA 93401
RE: Tract 1750, Units 1 and 2, Final Map
Dear Jerry:
I am writing this letter, as we discussed, to outline the present situation
with regard to Tract 1750, Units 1 and 2. As you know, it has been
difficult trying to finalize financing and bonding arrangements. We've
worked out with our bonding company and an assortment of local lenders
most of the requirements. However, we have also entered into an
agreement with a large home building company which is superseded
these arrangements.
This company is Centex, which is presently the largest home builder in
the country. They provide a home of good quality at an affordable price
and we believe they will be a real attribute to the Islay Hill project.
Our agreement has been worked out during the past month and is in the
final stages of due diligence. A number of items need to be concluded
including a Level One environmental review of the property. This study is
presently underway but is not expected to be completed until the end of
this month. We do not suspect any difficulties since the property's history
was previously rangeland. Unfortunately, the completion of the due
diligence effort is precariously close to the present expiration date for the
extension of the subdivision agreement. Therefore, we are respectfully
submitting this request to extend for an additional 90 days the present
subdivision agreement.
We expect that completion of the due diligence and subsequent bonding
may be completed prior to the November 8 date. However, we didn't want
805/595-7777
FAX 805/595-7927
A Oivinon of hdinde Horizon inc.
�a-�a
Mr. Jerry Kinney
Page 2
October 14, 1993
to deal with that close of a time circumstance at the last minute. As soon
as this due diligence activity is completed, it is the intention of Centex to
move forward and provide the bonding. We expect the map will be
recorded during the month of November.
We are pleased that we've come to agreement with Centex and are
excited about the possibility of ground breaking before year end. If you
have any questions, please give me a call.
Best regards,
Rob Rossi
cc: Centex/Mangano Homes, Robert Wood
Fred Glick, Esq.
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