HomeMy WebLinkAboutBJ's Chicago Pizzeria - Chicago Pizza Associates, Inc. - 1994-06-06t
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REQUEST FOR COUNCIL/REDEVELOPMENT
APPROVED BY CITY COUNCIL
GENCY ACTION
ED 94-23
Date: June_6,_1994
Submitted to: Honorable Mayor/Chairman and City Council/Agency Members
Submitted by: Michael T. Uberuaga, City Administrator/Executive Directo_k�,
Prepared by: Barbara A. Kaiser, Deputy City Administrator/Economic Development`
Subject: ASSIGNMENT OF KOURY LEASE TO BJ'S CHICAGO PIZZERIA —ACCEPT& CE OF
COVENANT AND LIEN FOR IN -LIEU PARKING FEE, MAMPIER REDEVELOPMENT
PROJECT AREA
Coruistent %ith Council Policy? Qq Yes [ ] New Policy or Exception
Statement of Issue, Recommendation, Analysis, Funding Source, Alternative Actions, Attachments:
STATENTEh"r OF ISSM
The Redevelopment Agency entered into a 5 year lease with Robert Koury for 200 Main Street, Suite 101
(Main Promenade) for the purpose of providing temporary relocation space for Jack's Surfboards while
Oceanview Promenade was under construction. Jack's has relocated into their new facility, therefore the
Agency no longer needs this retail space and it should be assigned to another responsible party alleviating the
Agency of any further obligation.
BJ's Chicago Pizzeria was approved for a Conditional Use Permit No. 93-22 with a condition of approval
that in -lieu parking fees be paid for Suite 101 at 200 Main Street (Main -Promenade). City and
Redevelopment Agency acceptance is needed of the Covenant and Lien which secures the owner's obligation
to pay an in -lieu parking fee. In addition, the Redevelopment Agency is requested to provide the matching
in -lieu parking fee.
BKOMNI TENDATION:
1. Approve the Assignment of Lease from the Redevelopment Agency to Chicago Pizzeria Associates, Inc.
2. Approve Covenant for Payment of In -Lieu Parking Fee, Stipulation of Lien between - the City
of Huntington Beach and Robert Koury, and authorize execution by the Mayor and
City Clerk.
3. Approve appropriation of funds by the Agency of an in -lieu parking fee of $108,000 (as adjusted yearly
by the Consumer Price Index [CPI]) on behalf of BFs Chicago Pizzeria, located at 200 Main Street, Suite
101, subject to the terms and conditions outlined in this report.
1
N LYi•
On August 31, 1992, as a part of the Second Amendment to the Owner Participation Agreement with
Abdelmuti Development Company (staff report attached), the City/Agency entered into a five year lease with
Robert Koury for 3,616 square feet located at 200 Main Street, Suite 101. The City/Agency leased this
property for the sole purpose of providing Jack's Surfboards temporary relocation space from which to
operate Jack's while their new facility in Oceanview Promenade was being constructed. In exchange for this,
the Abdelumti Development Company agreed to release the Agency of a potential payment of $1.5 million in
business losses. The lease term is $2.00 per square foot plus triple net charges of .28 cents a square foot
with 5 % annual increases for five years. The Agency's outside exposure for the entire five years totaled
approximately $458,000. If the assignment with BJ's is approved it will reduce the Agency's expense by
approximately $338,000. The Agency's financial obligation would end as of June 30, 1994.
Attached is a Covenant and Lien in the amount of $100,800 ($108,000 minus the first payment of $7,200) to
be executed by the property owner to provide security for their total share of the per space cost. The
Covenant and Stipulation of Lien must be accepted as sufficient surety in terms of the Downtown Specific
Plan requirements to secure the inAleu parking fee.
At the City Council/Agency meeting of October 25, 1993, the Council/Agency approved an in -lieu parking
fee for businesses located within the downtown Specific Plan area. The fee was set at $6,000/space for
businesses, the option to make payments at $400/yearlspace over 15 years (also with CPI increases). The
Redevelopment Agency agreed to pay an additional $6,000/space (for a total per space fee of $12,000),
subject to separate consideration of each new business. BJ's Chicago Pizzeria has requested that the Agency
pay half of the in -lieu fee and therefore, the Redevelopment Agency must agree whether or not to pay the
balance of the fee for this particular business. BJ's Chicago Pizzeria will be located in the Main Promenade
at 200 Main Street, Suite 101.
Staff recommends approval of an in -lieu fee of $108,000 for BJ's Chicago Pizzeria to be paid by the Agency
at the time of the actual construction/acquisition/developmcnt of downtown parking spaces.
This obligation on the part of the Redevelopment Agency is made subject to the following conditions and
obligations.
1) The property owner, Robert Koury, must obtain a CUP for 200 Main Street, Suite 101, requiring
payment of an in -lieu parking fee. (completed)
2) The parking fee for BJ's Chicago Pizzeria is $6,000/space for I8 spaces, asset by the City Council.
3) The first annual installment of the fee will be paid by the property owner prior to building permit for
tenant improvements being issued by the city's Building division.
i►]
4) The payment is the responsibility of the property owner and will be made in annual payments of
$400/space, over 15 years. Such payments will be made annually upon the anniversary date of the
Certificate of Occupancy. A covenant and lien will be placed on the property for the balance of funds
due to ensure future payment. In accordance with the resolution, the fee will automatically increase each
July 1, by the amount of percentage increase in the Consumer Price Index, as determined by the City
Treasurer.
S) The number of spaces for which the fee may be paid is limited to 18 spaces, as required under the CUP.
b) This action by the Redevelopment Agency will constitute approval of BJ's Chicago Pizzeria by the
Agency of its commitment to pay $109,000 in parking fees to match payment by BJ's Chicago Pizzeria
of its $108,000 fee requirement. The Agency fees will be paid to the City at the time of actual
construction/acquisition/development of downtown parking spaces.
7) The fees collected shall be deposited into a dedicated parking fund to be used for creating opportunities
for additional parking (i.e. valet, restriping) or construction of surface or structured parking in the
downtown area.
latilalihmmilloRm.q
The Redevelopment Agency is obligated to pay $108,000 in the future upon development of parking spaces
in the downtown area. Any resources available to the Agency at that time may be used.
' ► � 11 !a
Do not approve the Assignment of Lease and Covenant.
ATTACHMENTS:
1. Assignment of Lease
2. Covenant and Lien
3. Summary of In -Lieu Parking Fee Projects Approved to Date.
4. RCA's dated August 31, 1992 and October 25, 1994.
MMBAK/KBB:jar
1 l6tj
3
MAY 26, 1994
DOWNTOWN 1UJPMNGT,Q1N-BEA:T�
PARK! rz iN LTEU FEE PARTICIPANTS
ANNUAL, PAYMENTS
No. of
der
in
Qow
nan
Spaces
Terms
Remiyed
D-alg
120 Main St.
Wahoo's
Mrs. Wang
Ed Lee
12
Annual
$4001Space
200 Main St.
BN Pizzeria
Robert Koury
Chicago Pizza
18
Annual
$7,200
6194
Assoc., Inc.
$400/Space
Anticipated
PAYMENTS IN
FULL
No. of
Address
Busines
O-vmc
Tenant
Space s
Ism-,
Bmcivd
pig
101 Main St.
Various
Abdelmuti
Various
12
$6,000 each
$72,000
12193
in full
201 Main St.
Various
Caverlys
Various
41
$ I,000 each
$41,000
02
in full
221 Main St.
Various
Den Trainer
Various
61
$1,000 each
$61,000
TBA
in full
Anticipated
C
C')
CITY OF HUNTINGTON BEACH
2000 MAIN STREET
OFFICE OF THE CITY CLERK
COME BROCKWAY
CRY CLERK
October 26, 1994
Robert Koury
200 Main Street
Huntington Beach, CA 92648
CALIFORNIA 92648
Our office received the recorded document of the Covenant for Payment of In lieu
Parking Fee Stipulation of Lien Between Robert Koury and the City of Huntington
Beach. Enclosed is a copy for your records.
Also enclosed is a copy of the Assignment of Lease of Unit #101, 200 Main Street
Between the Redevelopment Agency and the City of Huntington Beach and Chicago
Pizza Associates, Inc.
If there are any questions regarding this matter, please call the Office of the City Clerk
(714) 536.5227.
Connie Brockway
City Clerk
Evelyn Schubert
Deputy City Clerk
cc: Keith Bohr, Economic Development
g:CCtbmem*Aq
lieloplwnr 71,M64W)
e
Recording Requested By
And When Recorded Return To
The City of Huntington Beach
2000 Main Street
Huntington Beach, CA 92648
Attn City Clerk
DOC # 94- 544711
07—SEP-1994 1 O e 34 AM
Recorded in Official Records
of Orange County, California
Lee A Brat County Recorder
Page i of 5 Fees $ 0 00
Tax $ 0 00
COVENANT FOR PAYMENT OF
IN LIEU PARKING FEE
STIPULATION OF LIEN BETWEEN
ROBERT KOURY AND THE CITY OF HUNTINGTON BEACH
In consideration of the mutual covenants set forth herein, the parties agree
as follows
This covenant and lien is entered into this :L'lo� day of
>, 1994 between ROBERT KOURY (hereinafter PARTICIPANT')
and the C y of Huntington Beach (hereinafter "CITY ) to satisfy Participants
equated portion of the on site parking requirement established by Conditional Use
Permit 93-22 and the zoning provisions of the Huntington Beach Ordinance Code,
and applicable to PARTICIPANT'S project ( the Property ) located in the Main -Pier
Redevelopment Project Area, and more specifically described in Exhibit A , ✓
attached hereto and incorporated by this reference
CITY shall permit PARTICIPANT, in lieu of providing eighteen (18) parking
spaces on site, to pay to CITY a fee equal to Six Thousand Dollars ($6,000) per
space, for a total of One Hundred Eight Thousand Dollars ($108,000) CITY shall
further permit PARTICIPANT to pay in such a manner so as to apportion the
amount over a period of fifteen (15) years in equal installments Such a fee shall
be due and payable on the anniversary of *I-e first payment The first payment
(installment) will be in the amount of A7,200
PARTICIPANT agrees to pay the sum of Four Hundred Dollars ($400) per
parking space prior to the issuance of the Certificate of Occupancy to satisfy the
first payment of the established in -lieu fee Each ensuing payment of Four
Hundred Dollars ($400) per space ovill be mGde annually, on the anniversary date
of the first payment
As security for the performance of the obligations of Participant stated
herein both parties stipulate that this agreement shall constitute a lien against the
Property under California Civil Code Section 2881 in the amount of One Hundred
Thousand and Eight Hundred Dollars ($100 800) [$108 000 minus the first
payment of $7,2001 on the property and shall be subordinate to existing
encumberance (and any refinancing of it) against the property, but shall have
1
7/g/agree/kourypkg/05/27/94
priority over any other liens or encumbrances recorded on the property. Such lien
shall be extinguished upon payment in full of One Hundred Thousand and Eight
Hundred Dollars ($100,800). This covenant shall run with the land and be binding
upon all successors in interest.
' Participant may substitute collateral of equal value to secure the payment of
S. the in -lieu fee with the express written permission of the CITY, which shall be
given provided the collateral is deemed by the City Council to be of equal value.
If any section, subsection, sentence, clause, phrase or portion of this lien,
or any future amendments or -auditions hereto, -is -for any reason held to be -invalid -"-
or unconstitutional by the decision of any court of competent jurisdiction, such
decision shall not affect the validity of the remaining portions of this document, or
any future amendments or additions hereto, unless such invalidation materially
affects the remainder of the provisions or renders the remainder senseless.
If future action by the City Council of the City of Huntington Beach
G) Abolishes the CITY in -lieu fee, then, in such event, this lien shall be deemed
extinguished and obligations herein evidenced discharged on the date upon which
the law abolishing the fee takes effect; and/or, (ii) changes the nature of the
security that must be posted to evidence the obligation to pay in -lieu fees, then, in
such event, at the election of PARTICIPANT, this security may similarly be
changed to give PARTICIPANT the benefit of that change; andlor, (iii) adopts a
new formula or ratio that has the effect of downgrading or lessening the number
of parking spaces required by a Property Owner in the Downtown Area of
Huntington Beach to an amount less than that which is currently required of
PARTICIPANT, then, in such event, PARTICIPANT shall abe entitled to take
advantage of that new formula or ratio and PARTICIPANT'S total in -lieu fee shall
be reduced accordingly and, in addition, PARTICIPANT will be given credit for the
amount of in -lieu fees PARTICIPANT has already paid and, if applicable, given a
refund for any excess in -lieu fees overpaid.
PA &-0
A T: THE CIT F HUNTINGTON BEACH - --
By: �
BE J. K0URY Mayor
ATTEST: _ APPROVED AS TO FORM:
By: z-iuQ. "w By: c
City Clerk �_o.' F
sty Attorney
REVIE ED AND APPROVED: INITIATED AND APPROVED:
y• Byc.
City Admi rator Director of Commu ' y Development
2
71glagreelkourypkgt05127194
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
No. SW7
State of
County of
On 1 before me,`
Vt- tbATE NAME. TITLE OF OFFICER - E.G.. JANE DOE, tkTARY PUBLIC -
personally appeared r�ue
r7 J
NAMES) OF SIGNER($)
OR - proved to me on the .basis of satisfactory evidence
to be the person(s) whose name(s)Qs'"
subscribed to the within instrument and ac-
.:"-•'
O",CIAL SEAL
nzxA & VANDE ipP
Notary PL b1C-Cd:'Crr 1a
w 4 ; :
CRAW7, COL'tin�
C0m(nLz1on Exct-a
r
Apr) 1a. 19%
r�.OR
ON
knowledged to _me that�Tsfze�t� executed
the same in (21;JAefA4teir a thorized
capacity(ias}, and that by Ve—pperson(s),
Ir
signature(s) on the instrument
or the entity Capon behalf of which the
person(s) acted, execrated the instrument.
WITNE my hand and o ` 'al 1.
• SIGNATUR OF NOTARY
OPTIONAL
Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent
fraudulent reattachment at this form.
APACITY CLAIMED BY SIGNER
tND1vlDUAt_
❑ CORPORATE OFFICER
TITLE(5)
❑ PARTNER(S) ❑ LIMITED
❑ GENERAL
❑ ATTORNEY -IN -FACT
❑ TRUSTEE(S)
❑ GUARDIARICONSERVATOR
❑ OTHER:
•. SIGNER IS REPRESENTING-
+ - NAME OF PERSON(S) OR ENTITY(IES)
DESCRIPTION OF ATTACHED DOCUMENT
- ; ,TIT1E : R T79ff
MENT
16
NUMBER OF PAGES
DATE OF DOCUMENT
SIG ( OTHER THAN NAMED ABOVE
01993 NATIONAL NOTARY ASSOCIATION - 6236 Aemmet Ave., P.O. Box 7184 • Canoga Park, CA 91309-7184
p r -
j, _
CALIFORNIA ALL-PURPOSYACKNOWLEDGMENT
No. NO?
State of
County of�
On before me, W&O-AS-.0
PATE NAIVE. TRLE OFFICER . E.G.. •JANE DOE, NOTA
personally appeared
f"E(Sl OF Stc.NENS) `/
Q personally known to me - Ott - _
to be the person(o whose nameLs}+3� are
subscribed to the within instrument and ac-
knowledged to me that #,e{ they executed
WAY7lA=LJOW40N -the same in -hWheNtheir authorized
COWs99tm f capacity ies , and that by efi/their
MIICorlxn.fm*ssWY11.f997 signature(s)on the instrument the person{,
or the entity Upon behalf of which the
person(A) acted, executed the instrument.
WITNESS my hand and official seal.
OPTIONAL
Though the data below is not required by law, it may prove valuablo to persons relying on the document and could prevent
fraudulent reattachment of this corm.
CAPACITY CLAIMED BY SIGNER
❑ INDIVIDUAL
❑ CORPORATE OFFICER
TnLE(S)
❑ PARTNER(S) ❑ LIMITED
❑ GENERAL
❑ ATTORNEY -IN -FACT
❑ TRUSTEE(S)
❑ GUARDIAWCONSERVATOR
2'OTHER:,
DESCRIPTION OF ATTACHED DOCUMENT
TITLE R TYPE DOCUMENT
F..&C - 7is6 two"'j,
a?
NUMBER OF PAGES
DATE OF DOCUMENT
SIGNER IS REPRESENTING- /�
NAME OF PERSONS) 'R ENTMT IES) ff/ �. / /'��_ .
' sl ER(S) oTH6 TAN NAMI~ ABOVE
01993 NATIONAL NOTARY ASSOCIATION • SM Rommel Ave.. P.O. Box 7184 • Canoga Park, CA 9t309-7184
EXHIBIT "A"
ATTACHMENT NO 2
LEGAL DESCRIPTION
Block 203 of The Huntington Beach M M 3-36 Tract as shown
a map recorded in book 24, page 14 of Assessor's Maps records
of Orange County
ASSIGNMENT OF LEASE OF UNIT #101,
200 MAIN STREET BETWEEN THE REDEVELOPMENT
AGENCY OF THE CITY OF HUNTINGTON BEACH AND
CHICAGO PIZZA ASSOCIATES, INC.
THIS ASSIGNMENT is made this Z3e3 day of _ fn2n 1994 b
and between the REDEVELOPMENT AGENCY OF THE CITY OF
HUNTINGTON BEACH, a public body, corporate and politic in the State of
California (hereinafter referred to as "Assignor") and CHICAGO PIZZA
ASSOCIATES, INC., a California corporation, doing business as "BJ's Chicago
Pizzeria" (hereinafter referred to as "Assignee").
RECITALS
WHEREAS, ROBERT J. KOURY, as Landlord, and Assignor as Tenant,
executed a Lease on or about August 27, 1992 (hereinafter referred to as said
"Lease") a copy of which is attached hereto, marked "EXHIBIT A," and
incorporated herein by this express reference; and,
By the terms of said Lease, certain space containing approximately Three
Thousand Six Hundred And Sixteen (3,616) square feet of floor area, situated in
Unit #101 at 200 Main Street in the City of Huntington Beach, County of Orange,
State of California (hereinafter referred to as said "Premises") was leased to
Assignor as Tenant for a term of Five (5) years, commencing
October 1, 1992 and ending September 30, 1997, subject to earlier termination
As therein provided; and
Assignor now desires to assign said Lease to Assignee, and Assignee desires to
accept the assignment thereof.
NOW, THEREFORE, IT IS HEREBY AGREED by and between Assignor and
Assignee as follows:
ASSIGNMENT
For value received, receipt of which is hereby acknowledged, Assignor
hereby assigns and transfers to Assignee all of its right, title and interest in and
to said Lease hereinbefore described.
7lglagreelkourylsl0 5123194
'T
Subject to and contingent upon the Redevelopment Agency of the City of
Huntington Beach (or, the City Council of the City of Huntington Beach)
approving this Assignment on or before June 6, 1994 and, in addition, the City of
Huntington Beach issuing all necessary Building Permits on or before June 7,
1994 which shall be required to allow Assignee to commence its improvements
at the subject Premises, Assignee hereby agrees to and does accept the
assignment.
Assignee expressly assumes and agrees to keep, perform and fulfill all of
the terms, covenants, conditions and obligations required to be kept, performed
and fulfilled by Assignee as Tenant thereunder, including the making of all
payments due to and payable on behalf of Landlord under said Lease when due
and payable. if any provision of the lease is by its very terms impossible to be
performed or inapplicable to Assignee, the remaining provisions shall
nevertheless be in futt force and effect and binding on Assignee.
This Assignment shall take effect immediately.
EXECUTED at Huntington Beach, California, on the day and year first
above written.
(END OF PAGE)
2
7lglagreelkouryis105133194
ASSIGNEE
CHICAGO PIZZA ASSOCIATES, INC
Doing Busin BJ's Chicago
Pizzeria
By
(Signature)
Avg A
(Print Name)
(Title)
(Title)
ASSIGNOR
REDEVELOPMENT AGENCY OF THE
CITY OF HUNTINGTON BEACH
- w--wm; --
Chairman
ATTEST
By
Agency Clerk
INITIATED AND APPROVED
Director of Economic Development
CONSENT OF LANDLORD
ROBERT J KOURY, the undersigned, is the Landlord in said Lease
described in the foregoing Assignment, and subject to and contingent upon
Assignor's payment, and Landlord's receipt, of rent for the months of May and
June 1994, hereby consents to the assignment of said Lease by the
REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH,
Assignor, to CHICAGO PIZZA ASSOCIATES, INC, doing business as BJ's
Chicago Pizzeria, Assignee, and, in doing so, hereby expressly releases the
REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH,
Assignor, from any further liability or obligation for rent and other charges under
the terms of said Lease
DATED 1994 gD�
ROBER KOURY
3
7/g /agree/kou ryls/05 /2 3/94
RETURN ADDRESS: DATE rr f q— 74
655-cp- Ci kyV,
Hani--,'neon BQckc�
We are returAin UNRECORDED Ca,(mPa naming
g g t<flu�y
together with your remittance of $ , Ck. No. 1�
for the reasons checked below:
(1) The recorder can find no provision in the law authorizing the recording of the enclosed
document(s).
(2) Recording cannot be performed in this county, please forward to county shown on the
document.
(3) For proper indexing:
a. "Et al" is not acceptable; all parties must be named.
b. The name of the company, corporation or partnership must be at the signature
point.
c. The trustee of a trust must be identified as such.
d. The names in the caption, execution and notary acknowledgment must match.
(4) The Documentary Transfer Tax declaration must be completed to show either the amount of tax
due or an acceptable reason for exemption. (see bulletin)
(5) The city where the property is located or "unincorporated area" must be stated on the deed and
the tax declaration must indicate how the tax was computed.
(6) The preliminary change of ownership report is incomplete or unsigned. Please complete or
correct the areas checked in red.
(7) The notary acknowledgment is incomplete (please see red check) or is an incorrect form.
A form is required.
(8) The notary seal/signature is missing or is illegible.
(9) Portion(s) of the document are illegible (please see red check). You may either execute and
submit a new original or you may add a legible copy and a certification by the party creating the
copy under penalty of perjury that it is a true copy of the original. (Gov. Code section 27361.7)
(10) The legal descriptionlexhibit has been omitted. All exhibits must also be referenced in the body
of the document and appropriately labeled.
(11) Recording reference (date and document number or book and page) of the prior recorded
document is incorrect or was omitted.
(12) Abstracts of judgment must contain the address of the judgment creditor(s), the address of the
judgment debtor(s) and the address at which the summons was served or mailed.
(13) Pursuant to Government Code sections 27288.1 and 27201, all parties whose interest is
affected must be identified (i.e. owner etc.)
(14) To properly perfect a security interest, this UCC-1 must be filed with the Secretary of State,
Uniform Commercial Code Division, P.O. Box 1738, Sacramento, CA 95808, unless it is a
"fixture filing" pursuant to UCC section 9313. Any Financing Statem n Covering fixtures must
include a statement that it is a fixture filing to be recorded in the real a records, a
description of real property in Orange County and, if the debtor does o own the real property,
the name of the owner.
(15) We have received your check without a document or letter of instruction. We are unable to
determine the intent of the fees.
(16) The correct fees will be $ . If an attachment is added to the
document, the fee will increase $3.00 per page or portion thereof.
,i (17) OTHER: UhNr�-- N kxS L �Mlr 11,r ,
LEE A. BRANCH, ORANGE COUNTY RECORDER
BY PNYLLIS JOHNSON
Deputy Recorder
W
�, „ CITY OF HUNTINGTON BEACH
2000 MAIN STREET CALIFORNIA 92648
June 28, 1994
Lee A. Branch, County Recorder
P. 0. Box 238
Santa Ana, CA 92702
Enclosed for recording is a Covenant for Payment of In Lieu Parking
Fee Stipulation of Lien Between Robert -Koury and the City of Huntington
Beach. After recording, please return to the Office of the City Clerk,
City of Huntington Beach, CA 92648.
Also enclosed is a copy of the Covenant to be conformed and returned,
stamped, self-addressed envelope provided.
Connie Brockway
City Clerk
CB/ES
Enclosure
REQU -.vT FOR CITY COUKJL/
REDEVELOPMENT AGENCY ACTION ED 92-39
August 31, 1992
Honorable Mayor/Chairman & City CouncilaRtBdevelopment Agency Members
Submitted to: Michael T. Uberuaga, City Administrator/Executive Director
Submitted by: Barbara A. Kaiser, Deputy City Ad minis trator/Economic Development
Prepared by: Second Amendment to Owner Participation Agreement between Abdelmuti
Development Company and the Redevelopment Agency of the City of
Subject: Huntington Beach/Main-Pier Redevelopment Project Area
Consistent with Council Policy? [ ] Yes [ ] New Policy or Exception
Statement of Issue, Recommendation, Analysis, Funding Source, Alternative Actions, Attachments:
Transmitted to the City Council/Redevelopment Agency for consideration is a Second
Amendment to the Abdelmuti Development Company Owner Participation Agreement.
This Amendment provides for a $500,000 increase in their construction loan and for
assistance in relocating to a 3,6I6 square foot retail space located at 200 Main Street.
1) Conduct a joint public hearing on the Second Amendment to the Owner
Participation Agreement.
2) Adopt City Council - Resolution No. and Agency Resolution No.
authorizing the execution and implementation of the Second Amendment to the
Owner Participation Agreement.
3) Approve the reallocation of $620,000 from redevelopment funds previously
allocated to cover business losses for this project. The balance of $940,000 will
revert to the Main -Pier fund balance.
4) Authorize the Chairman and Clerk of the Agency to execute the attached lease
with Robert Koury Properties and the lease with Abdelmuti Development.
kl`.lir►F'�'E
On May 28, 1991, the City/Agency entered into an Owner Participation Agreement
(OPA) providing for the Agency to assist Abdelmuti Development Company (Developer)
In the development of a new three-story building, consisting of approximately 18,000
square feet of new commercial/retail on the ground floor, and approximately 24,000
square feet of office use on the second and third floors. The location of this proposed
project is the northeast corner of Alain street and Pacific Coast Highway.
On November 4, 1991, the City/Agency approved an amendment to the Abdelmuti OPA
providing for a four-story building consisting of 17,140 square feet of new
commercial/retail on the ground floor, and a total of 30,920 square feet of office use on
the second, third, and fourth floors - for a total of 48,060 square feet.
The participant is now requesting a Second Amendment to the OPA. The purpose of the
proposed Second Amendment is to increase the loan amount by approximately $500,000
from the previous maximum of $3.5 miIlion, or $1I0/square foot, whichever is lesser.
Additionally, the participant is requesting relocation assistance at a cost to the Agency
not to exceed $120,000. This relocation assistance will be provided as follows:
1) The Agency will lease 3,616 square feet of retail space from Robert Koury
Properties located at 200 Main Street (northeast corner of Main Street and Walnut
Avenue) which in turn the Participant subleases from the Agency for a term of 13
months for $1.00 (one month is to allow tenant improvement work to be completed).
Note: The participant must start construction by January 1, 1993, or costs of the
lease must be paid for by Mr. Abdelmutl for the entire 13 months.
2) If the participant should lease additional retail space for relocation purposes, the
Agency will reimburse the participant the difference of $120,000, less the cost of
the Koury space for one year.
For example: Total relocation budget $ 120,000
Koury lease for one year 99,000
Available to apply to
additional relocation
space rent $ 21,500
In order to secure a lease with Koury Properties. the Agency will be required to enter
Into a five-year lease. In today's financial market, lenders are requiring that income
property be at a minimum 90% leased with long-term leases (at least five-year leases)
to be eligible for take-out financing. Therefore, the Agency is required to enter into a
five-year agreement to secure the proposed lease.
The Agency's potential exposure (very unlikely) for the additional four years of the lease
If the space were to remain vacant would be $445,770.
In exchange for the above described loan increase and relocation assistance, the
participant is waiving its right to the $1,560,000 in potential business interruption losses
previously agreed to in the OPA. Therefore, the Agency has effectively reduced its net
financial exposure by $494,230.
In addition, the Second Amendment to the OPA provides for the Participant to hire a
construction manager, at his cost, for the project, and to use the former Terry Buick
site as a construction staging area in conjunction with other property owners on the
block.
Under California Redevelopment Law, the Redevelopment Agency is authorized to
provide certain types of assistance directed at supporting and promoting private sector
Investments in redevelopment project areas. The proposed Owner Participation
Agreement Second Amendment obligates the Agency to be responsible for the following:
2
.• •
The Agency is responsible and shall commit the following to the project as it relates to
this Second Amendment:
a) Provide a loan at a maximum amount of $4 million or equal to $110 per square foot
of building area, whichever is lesser, less $1.3 million participant contribution to
the project. The Agency loan will be payable in monthly installments, fully
amortized over fifteen years, at an interest rate of 7%.
b) Compensate the participant for legitimate temporary relocation costs for a
13—month period. The Agency shall lease, on behalf of the participant, 3,616 square
feet of ground floor retail space at 200 Main Street in the Koury building. The
participant will, in turn, sublease the 3,616 square foot retail space from the
Agency at a rental of $1.00. In the event the participant leases additional
temporary business space in addition to the Koury building, the Agency shall
reimburse the participant the rent paid on the additional temporary business
location in a total not to exceed $120,000, less the rent paid by the Agency to the
Koury building.
In addition to the Agency costs detailed above, as a part of the Agreement, the Agency
accepts a contingent liability to lease 3,616 square feet of space for an additional four
year term. The maximum potential cost to the Agency, which would be incurred in the
event the space cannot be subleased during the four year period, is $445,770 in nominal
dollars ($340,170 in net present value terms). This reflects the base rent rate of $2.00
per square foot per month, plus $ .27 per square foot per month triple net charges,
escalated at 5% annually over the four year term.
E]NDiNG SOURCE:
On May 29, 1991, funds totaling $4,810,000, were originally allocated for this project —
$1,560,000 of that was for potential business interruption losses. The funds needed as it
relates to this Second Amendment are a maximum of $500,000 for an increase of the
construction loan and a maximum of $120,000 for relocation for a total of $620,000.
The $620,000 required for this second amendment is to be reallocated from the
$1,560,000 previously allocated as stated above. The balance of $940,000 will revert to
the Main —Pier fund balance.
1) Continue action on the Owner Participation Agreement and related resolutions to
allow for additional review time.
2) Direct staff to further negotiate specific points of the agreement with the
developer.
1) Health and Safety Code Report 33433
2) Second Amendment to the Owner Participation Agreement
3) Redevelopment Agency Resolutions
4) City Council Resolutions
5) Koury Lease
6) Abdelmuti Lease
MTUBAK/KBB: jar
1226r
3
Jt]CA QUE4 ST FA 01t CrTy CO'UNCIL/ItEaJL v X,i,vx J.VAM j& . A,,
�61ENCY ACTION
. TD 93-32
Pate: October 2S,1993
Submitted to: Honorable Mayor/Chairman and CS CounciUAgency Members
Submitted by: Michael T. Uberuaga, City Administrat �_,, ,
Prepared by: Barbara A. Kaiser, Director of Economic Developmen `-��'�—
. M
Subject: In -Lieu Parking Fee for Downtown Businesses
Consistent with Council Policy' fRj Yes [ ] New Policy or>Exception
Statement or Lww, Rea mmendation, Analysis, Funding Sousa, Altamtire Actions, Attadnntnts:.,,/
+ - - ----- --- - ..
Statement of issue:
On May 18, 1992, the Redevelopment Agency/City Council approved an action that requires
property owners to pay $1,000/space as an in lieu paddng fee in the 200 block of Main Street,
rather than providing parking onsite in the downtown area., Since that time, other downtown
business owners have entered negotiations to lease their buildings and they have requested that the
City Council set an in -lieu parking fee for their businesses.
2ecommendation:
1) Conduct a public hearing;
2) Adopt City Council Resolution No. 6522; and
3) Approvc the in -lieu parking fee ($4001yearlspace - initial rate), for all future requests by
downtown businesses within the Downtown Specific Plan area, as further described in this
report.
Analysts•
Staff is recommending a revision in the amount and method currently established to set an in -lieu
tj barking fee for downtown businesses. On May 18, 1992, the Redevelopment Agency/City
Council approved an action that requires property owners in the 200 block of Main Street to pay
SI,MOfspace as an in -lieu puking fee, rather than providing parking onsite in the downtown area
(see attached report), These funds are paid into a trust fund to be used for
acquisition/construction of additional parking facilities at sometime in the future when additional
;parking demsnd is created.
Since that time, additional own= have contacted the city regarding payment of in lieu
fees. Some of these owners currently have buildings under construction, and are in
negotiations with restaurant tenants.eTo continue to encourage the leasing o(downtown
facilities, staff is r000mmending approval of an in -lieu fee, as allowed under the current
Downtown Specific Platt, and in compliance with current standards. The fee will also'
remain part of the Downtown Master Parking Plan currently under consideration to be
approved by several governmental agencies, including the California Coastal
Commission (anticipated timeframe is 9 months). -
Staff recommends the following as the new in -lieu parldng fee policy.
1) All new requests by businesses within the Downtown Specific Plan area may apply
for an in lieu fee. The fee is set at $4001spacelyear to a maximum payment of
$6,0001space. Full payment of fees will take IS years under this formula.
2) The Redevelopment Agency wM contribute a matching $6,0001space for a total
payment of $12,000 to cover the cost of construction of a parking space within a
ping sftucW c. The Agency's Payment mill. be reduced accordingly if public
surface parking spaces are provided, rather than a parking structure, Agency
payment will be made at the time of actual construc tionla gtdsidoaldevelopment of
the downtown parking spaces. Agency funds will be provided through future tax
increment revenues, bond funds, developer payments, or other resources available
to the Agency.
3) The $4001spac elyear will be automatically increased annually on July 1 by the
amount of percentage increase in the Consumer Price Index, as determined by the
city treasurer.
4) The in -lieu parldng fee will be paid by property owners or tenants upon application
of the annual business license.
5) All in -lieu fees will be placed in a dedicated parldng fund to be used at
Redevelopment Agency discretion in developing new parldnd facilitiess.
6) Each property owner or tenant will tic responsible for their own in -lieu fee,
depending upon the number of parking spaces required for their business. EQ
credit or adjustment will be made for fees paid by previous owners or tenants
towards an in -lied fee_
On June 7, 1993, the Punning Commission approved the Downtown Parldng blaster
' Plan. This Plan includes the following section under A�ditional Recommendations:
"Require that any parking in -lieu foes be full cost recovery based on the parking
requirement for specific uses. However, allow that these fees be paid over an
amortization period."
Staff believes that, to the extent financially feasible, the proposed in -lieu parking fec is
consistent with ibis recommendation (please see attached Downtown Parking Costs
Summary). r
To date, approximately $100,000 has barn received by the in -lieu parking fund.
Potential additional payments to be made during fiscal year 1993194 arc anticipated as
fouows..
Annual
120 Main Street (yahoo's) 13 spaces (400)
522 Main Street (Suzanne's Cafe) 6 spaces (400)
'Total Payment;
a nt: TQta] Due
51200 78,000
$ 7,6001yr. :$ 114,000
In addition, staff has completod a survcy of other city's parking in lieu fee programs
and this information is attacbed. .
J)pndinz gour=
None required as the result of this action.
Atta�timents. .
1) RCA dated May 18, 1992.
2) Parking Fee Survey of other cities.
IM113AMs
513
.,
3
r
DOWNTOWN PSG COSTS
1 IF
Syrfacg T& 'Sini tare
City/Agency Owned Property 11,2001space S 8,5001space.
Property to be Purchased 291,2001space 36,5001sp=
(at $801sf)
5
• EXPLANAi70N OF COSTS (CoWParkfng Spate) -
Surfed fit:
fitructuredR.lrldny:
-
improvement Cost:
$
1,200
Direct Costs
$ 61500
Land
-0
Indirect Costs (30%)
2,.n
$
1,200
$ 8,500
Improvement Cost
S
1,200
Direct Costs
$ 6,500
. Typiral Land Cost
3.500
Indirect Costs (30%)
2,000
lVicai Land Cost
a5ffl -($101sf)
$
49700
• 5 12,000
Improvement Cost
$
1,200
Direct Costs
S 6,500
land @ $801sf
28.000
Indirect Costs (307o)
2,000
$29,200
Land 0 $801sf
71M '
$ 36,500
Assumes:
* 350 sf/space
•j * Abovc-grade construction
* Costs provided by Keyser Marston Associates
Does not include purchase of residentialfcommercial buildings, relocation, etc.
C
k...%
RESOLUTION NO. 6522
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF HUNTINGTON BEACH ESTABLISHING A NEW
IN -LIEU FEE FOR PARKING
WHEREAS, the Downtown Specific Plan provides that parking
requirements for non -conforming cues or structures may be met by payment of
an "in -lieu" fee; and
The City Council of the City of Huntington Beach has determined that a
certain annual fee is necessary for implementation of the Downtown Specific
Plan and will facilitate traffic and pedestrian movement in the future.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Huntington Beach as follows:
SECTION 1. Pursuant to Section 4.2.13 of the Downtown Specific Plan of
the City of Huntington Beach, the City Council hereby establishes an in -lieu fee
of Four Hundred Dollars ($400 per space, per year for providing parking in a
parking structure for certain properties within the Downtown Specific Plan Area.
(Attachment A).
SECTION 2. The fee of established herein shall automatically increase or
decrease each year on July 1st by the amount of percentage increase or
decrease in the Consumer Price Index.
SECTION 3. All revenue from the in -lieu fee shall be segregated from the
general fund and used only for acquisition and installation of parking facilities.
1 ilGn LW82793
Z
�wl
PASSED AND ADOPTED by the City Council of the City of Huntington
adjourned
Beach at a regular'meeting thereof held on the 25th day of
October 993.
DATED:
ATTEST: .
City Clerk
REVIEWED AND APPROVED:
Mayor
APPROVED AS TO FORM:
�y
�q3
'tt� ? �
INITIATED AND APPROVED:
Director of Economic Development
2
anmreu=793
6522
V
ATTACHMENT A
PROPERTIES LOCATED WITHIN DOWNTOWN SPECIFIC PLAN AREA
201 Main Street
211 Main Street '
221 Main Street
303 Third Street
3
V tllinlieu%82723
6522
V
Res. No. 6522
STATE OF CALIFORNIA
COUNTY OF ORANGE ss:
CITY OF HUNTINGTON BEACH }
I, CONNIE BROCKWAY, the duly elected, qualified City
Clerk of the City of Huntington Beach, and ex-officio Clerk of the
City Council of said City, do hereby certify that the whole number of
members of the City Council of the City of Huntington Beach is seven;
that the foregoing resolution was passed and adopted by the affirmative
vote of at least a majority of all the members of said City Council
at a
regular
adjourned
meeting
thereof held on the ?5th day
of
October
lg
93 , by
the following vote:
. AYES:
NOES:
Councilmembers:
Moulton --Patterson, Winchell, Silva,_Sullivan, Leipzig.
Councilmembers:
Robitaille, Sullivan I " "
ABSENT: Councilmembers.-
Bauer
City- Clerk and ex-otticto ClerF_
of the City Council of the' Ci ty
of Huntington Beach, California
his
2I