HomeMy WebLinkAboutItem 4.6 Sorrento East Public Art
STAFF REPORT CITY CLERK
File #600-30
CITY COUNCIL
DATE:February 4, 2014
TO:
Honorable Mayor and City Councilmembers
FROM:
Christopher L. Foss, Acting City Manager
SUBJECT:
Sorrento East Public Art Payment Agreement
Prepared by Lisa Hisatomi, Assistant Administrative Services Director/Budget
EXECUTIVE SUMMARY:
The City Council will consider the approval and authorizing the City Manager to enter into a
public art payment agreement with SR Structured Lot Options I, LLC.
FINANCIAL IMPACT:
The execution of the agreement will advance the City’s receipt of $85,000 in Public Art In-lieu
Fees for Fiscal Year 2013-2014.
RECOMMENDATION:
Resolution
Staff recommends that the City Council adopt Authorizing the City Manager to
Execute the Public Art Payment Agreement with SR Structured Lot Options I, LLC.
Submitted By Reviewed By
Director of Community Development Acting Assistant City Manager
DESCRIPTION:
The City and SR Structured Lot Options I, LLC entered into a development agreement for
Sorrento East at Dublin Ranch on August 7, 2007. On May 4, 2010, the City and SR Structured
Lot Options I, LLC entered into Amendment No. 1 to the development agreement, whereby SR
Structured Lot Options I, LLC would satisfy its public art responsibilities by making payments of
$300,000 in three installments of $100,000 each. Based on this schedule, the last installment
will be due on October 31, 2016.
It is anticipated that the development of the project will be complete prior to the due date of the
last payment on October 31, 2016. Both the City and SR Structured Lot Options I, LLC, desire
to close out the project and the obligations under the development agreement in conjunction
ITEM NO. 4.6
Page 1 of 2
with the completion of the project. The City is willing to accept $85,000, an amount less than
the full amount due in exchange for an earlier payment of the fees.
Staff recommends that the City Council adopt Resolution authorizing the City Manager to
execute the public art payment agreement with SR Structured Lot Options I, LLC.
NOTICING REQUIREMENTS/PUBLIC OUTREACH:
None.
ATTACHMENTS:
1. Sorrento East Pubic Art Payment Agreement
2. Resolution authorizing the City Manager to execute Public Art
Payment Agreement with SR Structured Lot Options I, LLC
Page 2 of 2
SORRENTO EAST
PUBLIC ART PAYMENT AGREEMENT
This AGREEMENT (“Agreement”) is made and entered in the City of Dublin on this ____ day
of _____, 2014, by and between the City of Dublin, a Municipal Corporation (hereafter “City”)
and SR Structured Lot Options I, LLC, a Delaware limited liability company (hereafter
“Developer”).
RECITALS
1.Pursuant to California Government Code §§ 65864 et seq. and Chapter 8.56 of the
Municipal Code of the City of Dublin, the City and Developer entered into that certain
“Development Agreement Between the City of Dublin and SR Structured Lot Options I,
LLC for Sorrento East at Dublin Ranch, dated August 7, 2007 and recorded in the
Official Records of Alameda County on November 8, 2007 as document number 20076-
7391172 ; and
2.On May 4, 2010, the City and Developer entered into Amendment No. 1 to the
Development Agreement whereby Developer would satisfy its public art responsibilities
by making a payment of $100,000 concurrently with the execution of the Amendment
and two additional payments to the City on October 31, 2012 and October 31, 2016,
both in the amount of $100,000. The Development Agreement as amended is referred
to herein as the Development Agreement; and
3.The parties anticipate that development of the project will be complete prior to the due
date of the last payment on October 31, 2016; and
4.Both parties desire to close out the project and the obligations under the Development
Agreement in conjunction with the completion of development of the project. The City
is willing to accept less than the full amount due in exchange for an earlier payment of
the fees.
NOW, THEREFORE, with reference to the foregoing recitals and in consideration of
the mutual promises, obligations and covenants herein contained, City and Developer
agree as follows:
AGREEMENT
Section 1. Concurrently with its execution of this Agreement, Developer has
delivered funds to the City equal to eighty-five thousand dollars ($85,000) to satisfy its
remaining Public Art Payment obligations under the Development Agreement. City
agrees to accept this amount in full satisfaction of Developer’s Public Art Payment
obligations under the Development Agreement.
[signature page immediately follows]
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed as of the date and year first above written.
CITY OF DUBLIN:
By: ________________________ Date: _________________________
Chris Foss, Acting City Manager
ATTEST:
By: ________________________
Caroline Soto, City Clerk
SR STRUCTURED LOT OPTIONS I, L.L.C.,
a Delaware limited liability company
Stark Offshore Management, L.L.C.,
A Wisconsin limited liability company,
Its Manager
By: ________________________ Date: _________________________
Joseph J. Lucas, III
Its Managing Member
Approved as to form
___________________________
John Bakker, City Attorney
2223781.1
RESOLUTION NO. - 14
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN
***************************
AUTHORIZING THE CITY MANAGER TO EXECUTE AN ART PAYMENT AGREEMENT WITH
SR STRUCTURED LOT OPTIONS I LLC
WHEREAS
, the City and SR Structured Lot Options I, LLC entered into a development
agreement for Sorrento East at Dublin Ranch on August 7, 2007; and
WHEREAS
, the City and SR Structured Lot Options I, LLC entered into Amendment No. 1 to
the development agreement on May 4, 2010, whereby SR Structured Lot Options I, LLC would
satisfy its public art responsibilities by making payments of $300,000 in three installments of
$100,000 each; and
WHEREAS
, the last installment will be due on October 31, 2016; and
WHEREAS
, it is anticipated that the development of the project will be complete prior to the
due date of the last payment; and
WHEREAS
, the City and SR Structured Lot Options I, LLC, desire to close out the project and
the obligations under the development agreement in conjunction with the completion of the project;
and
WHEREAS
, the City is willing to accept $85,000, an amount less than the full amount due in
exchange for an earlier payment of the fees; and
NOW, THEREFORE, BE IT RESOLVED
that the City Council of the City of Dublin hereby
authorize the City Manager to execute the public art payment agreement with SR Structured Lot
Options I, LLC.
PASSED, APPROVED AND ADOPTED
this 4th day of February, 2014.
AYES
:
NOES
:
ABSENT
:
________________________________
Mayor
ATTEST
:
____________________________
City Clerk