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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, „14(id William M. Huber, P.E. 'I/ 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) RESOLUTION NO. 93-4-20-3 ASSIGNMENT OF IMPROVEMENT AGREEMENT FROM GLENFED DEVELOPMENT CORPORATION TO CCL REALTY, LTD. (TRACT 12262) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, APPROVING THE ASSIGNMENT OF IMPROVEMENT AGREEMENT TO TRANSFER ALL OBLIGATIONS, DUTIES AND RIGHTS FROM GLENFED DEVELOPMENT CORPORATION, A CALIFORNIA CORPORATION, TO CCL REALTY (CALIFORNIA) LTD. WHEREAS, on February 17, 1988, the city of San Juan Capistrano entered into an Improvement Agreement with Glenfed Development Corporation, a California Corporation, providing for the construction of certain public and private improvements within Tract 12262; and, WHEREAS, said agreement specifically identifies the developer as "Glenfed Development Corporation of 16601 Ventura Boulevard, Encino, California 91436; and, WHEREAS, Paragraph 1 of the agreement indicates that said developer shall, at its sole cost and expense, provide and furnish all labor, material and equipment for the installation of all required improvements; and, WHEREAS, said developer has sold the remaining empty, buildable lots to a third party prior to completion of all obligations under the agreement; and, WHEREAS, all necessary sureties required to ascertain completion of the remaining unfinished improvements have been properly transferred and submitted to the City; and, WHEREAS, Glenfed and the third party, CCL Realty Ltd., have requested the right to assign and be assigned the subject Improvement Agreement from Glenfed Development Corporation to CCL Realty Ltd.; and, WHEREAS, the City of San Juan Capistrano has no objection to said assignment. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of San Juan Capistrano does hereby approve the proposed transfer and assignment of said Improvement Agreement from Glenfed Development Corporation to CCL Realty Ltd. PASSED, APPROVED, AND ADOPTED this 20th day of April , 1993. GI ES, MAYOR ATTEST: TTY CLE -1- • • STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss CITY OF SAN JUAN CAPISTRANO ) I, CHERYL JOHNSON, City Clerk of the City of San Juan Capistrano, California, DO HEREBY CERTIFY that the foregoing is a true and correct copy of Resolution No. 93-1-20-3 adopted by the City Council of the City of San Juan Capistrano, California, at a regular meeting thereof held on the 20th day of April , 1993, by the following vote: AYES: Council Members Nash, llausdorfer, Campbell , Vasquez and Mayor Jones NOES: None ABSTAIN: None ABSENT: None (SEAL) CHER JOHNSO , CI CLERK -2-