1993-0420_GLENFED DEV CORP._G3a_Agenda Report AGENDA ITEM April 20, 1993
TO: George Scarborough, City Manager
FROM: William M. Huber, Director of Engineering & Building
SUBJECT: Approval of Assignments of Improvement Agreement, Tracts 12262 and
12423, GlenFed Development Corporation and CCL Realty Ltd.
RECOMMENDATION
By resolution, approve the proposed Assignments of Improvement Agreement from
GlenFed Development Corporation to CCL Realty Ltd.
SITUATION
A. Summary and Recommendation
GlenFed Development Corporation sold 97 buildable lots within Tracts 12262 and
12423 to CCL Realty Ltd. for whom Newport National Corp. is the builder. GlenFed
completed the majority of the public and private improvement work required by the
tracts' Improvement Agreements (Exhibits Cl and C2) and the bonds were reduced
accordingly.
GlenFed's remaining bonds were released and the City accepted the substitute
sureties submitted by CCL Realty. In order to transfer the responsibilities for
completion of the remaining work, it is necessary for an assignment agreement to be
executed by both GlenFed and CCL Realty as well as by the City.
B. Background
On February 17, 1988, the City Council approved the Final Map for Tracts 12262 and
12423, as well as the corresponding Improvement Agreements with GlenFed
Development Corporation who was the original developer of said tracts. The
majority of the construction work required by the Improvement Agreements was
completed by GlenFed and the corresponding sureties held as bonds were reduced .
accordingly by the City in July and August, 1992.
About a year ago, GlenFed was in the process of selling the remaining empty,
buildable lots of these tracts to CCL Realty Ltd. for whom Newport National
Corporation is the development/construction manager. The requirement of the
escrow for selling these properties was that GlenFed's sureties be replaced by the
new proprietors. Consequently, these remaining sureties were fully replaced with
certificates of deposit from CCL Realty Ltd. on November 3, 1992.
The Improvement Agreements do not allow the developer to transfer his
construction improvement obligations to a third party unless the third party's name
and mailing address are incorporated into the agreements. In order to transfer all
obligations, duties and rights from GlenFed to CCL, two Assignments of
FOR CITY COUNCIL AGEN !...
AGENDA ITEM
April 20, 1993
Page 2
Improvement Agreement (Exhibits B1 and B2), signed by both parties, were
submitted to the City with a request for review and execution. The Assignments
have been reviewed by staff and City Attorney and appear to be appropriate.
It is staff's recommendation to approve the request for approval of assignments in
view of the fact that the majority of the private and public improvement work has
already been completed by GlenFed and the minor remaining work, including street
and sidewalk repair, would be accomplished by the new builder prior to the release
of certificates of occupancy.
FINANCIAL CONSIDERATIONS
None
NOTIFICATION
GlenFed Development Corporation
CCL Realty Ltd.
Newport National Corporation
ALTERNATE ACTIONS
1. Adopt the resolutions approving the Assignments of Improvement Agreement.
2. Do not adopt the resolutions.
3. Request additional information from staff.
RECOMMENDATION
By resolution, approve the proposed Assignments of Improvement Agreement from
GlenFed Development Corporation to CCL Realty Ltd.
Respectfully submitted,
1/11/1
William M. Huber, P.E.
IV WMH/SS:cl
Attachments: 1. Resolution for Tract 12262
2. Resolution for Tract 12423
3. Assignment of Improvement Agreement for Tract 12262 (Exhibit B1)
4. Assignment of Improvement Agreement for Tract 12423 (Exhibit B2)
5. Improvement Agreement of 2/16/88 for Tract 12262 (Exhibit C1)
6. Improvement Agreement of 2/16/88 for Tract 12423 (Exhibit C2)
7. Location Map (Exhibit D)