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Amendment to Batarse Agre�nent 2 • April 1, 2002 <br /> Yokota Nursery Development <br /> The original agreements sold the dealers equally sized parcels. However, Lavery California has <br /> completed an approved site plan for a Volvo dealership which can be accommodated on a <br /> smaller parcel. Accordingly, the developer wishes to exercise his right given in his DDA to sell <br /> back the "surplus" land, 8,420 s.f., to the Agency. The adjacent developer has agreed to <br /> purchase the land for the same price at which he purchased his original parcel. The payment <br /> would be made out of the future revenue obligated to him by the Agency, $600,000 specified in <br /> the DDA that becomes payable annually in an amount equal to half the sales tax generated by the <br /> new dealership once it is open. The transfer of the 8,420 s.f. will be structured then as: <br /> 1. Lavery California sells the Agency 8,420 s.f. at its purchase price, $25.30/s.f. <br /> 2. The Agency sells the Batarse Trust 8,420 s.f. at its purchase price, $20/s.f. <br /> 3. The land write-down of$5.30/s.f. is an Agency development cost ($44,625 for 8,420 <br /> s.f.) <br /> 4. The Batarse purchase price of $168,395 is realized by a reduction in the future <br /> obligation to Batarse contained in the DDA, now to be capped at $431,605 (rather <br /> than the $600,000 cap in the original DDA) over the multi-year payment period. <br /> As before, there will be a minimum of two new dealerships on the site, and the two developers <br /> will cooperatively maintain a reciprocal easement for a driveway in between the two properties. <br /> The amendments' primary effect is the transfer of the 8,420 s.f. of land and the financial impact <br /> of the two different purchase prices as agreed upon in the original DDAs. <br /> BACKGROUND <br /> Current City Council/Redevelopment Agency Policy <br /> On July 17, 2001, the Agency Board approved a Purchase and Sale Agreement for the <br /> Yokota property with a 90-day escrow period. On October 1, 2001, the Agency Board <br /> approved the agreements with the auto dealers to buy the property from the Agency. On <br /> November 13, 2001, the Agency approved amendments to both agreements and an <br /> addendum to the Lavery California agreement to reflect a change in development plans <br /> that no longer required new public right-of-way. <br /> City Council Committee Review and Action <br /> N/A <br /> Applicable General Plan Policy <br /> N/A <br /> Permits and Variances Granted <br /> N/A <br /> Environmental Review <br /> N/A <br /> Code Compliance Review <br /> N/A <br /> 320 <br />