HomeMy WebLinkAbout1977-09-06; City Council; 3481-10; Bullock's Temporary Encroachment Agreement</ ** .- I-
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CITY OF CARLSBAD
Initial:
Dept. Hd.
* AGENDA BILL NO. &f/ e /D
DATE : S-er 6, 1977 C. Atty.VF4
DEPARTMENT : City AttqSnev C. Mgr.
- Subject:
BULLOCK ’ S TEMPORARY ENCROAC€I?4ENT AGREE”F3T
Statement of the Matter
With the approval of the City ?Tanager, your attorney has
negotiated a Temporary Encroachment Agreement which would
allow May Company to accomplish certain construction
activities on Parking Authority property. A memorandum
to the City Manager discussing the details is attached.
Exhibits
Yemorandum to City Manager from Citv Attorney, dated August 22,
1977.
i. Agreement.
Resolution N~.J’)”)’~ , approving agreement. ,
Recommendation
If the City Council concurs, vour action is to adopt
Resolution No .d3 approving Bullock ’ s Temporary
Encroachment Agreement.
Council action
8-30-77 Resolution #5183 was adopted, approving Bullock’s Temporary
Encroachment Agreement.
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MEMORANDUM
DATE : August 22, 1977
TO : City Manager
FROY: City Attorney
SUBJECT. BULLOCK'S TEMPORARY ENCROACHMENT AGREEMENT
As you know, our master agreement with May Company for expansion of the center provides that the City and Parking
Authority will exchange the portion of the existing parking
lot necessary for the Bullock's Store for a parcel of
property outside the existing lot presently owned by May Company which will be improved in connection with the con-
struction of the new parking lot. Because of May Company's
construction schedule and the desire to open the Bullock's
Store prior to the 1978 Christmas Season, it is necessary for them to commence construction early in September. It will not be possible to consummate the land exchange in time
since that is dependent upon the recordation of the final
map which still is in process. In order to accommodate the developer, it is necessary to execute a Temporary Encroach- ment Agreement.
The attached agreement has been prepared along the lines of the
existing agreement for the Broadway surcharge. The agreement
gives the developer the right to perform certain work on our
parking lot for a temporary period of time. When construction
is complete, the developer is obligated to restore the improve-
ments to their original state. This obligation is secured by
a surety bond in the amount of $60,000. The agreement also provides that the developer will pay rent to the City which we are then obligated to apply to our lease payments to the Parking Authority. The rental payment is in the same proportion to our total rent obligation as the number of spaces taken out
of service bears to the total number of spaces.
The exhibit to the agreement identifies Parcel "A" and Parcel "B". Parcel "A" is that portion which we will exchange when the final map records. When the escrow closes, the rent on that parcel will abate. It is estimated that will occur within the next four months. The encroachment on Parcel "B" will be for a longer
C.
City Manager -2- August 22, 1977
period, corresponding with the construction process on the new Bullock's Store. It is our estimate that that will be completed by December 31, 1978. The engineers indicate the encroachment on Parcel "B" is necessary because there are certain things which must be done on that part of the lot in connection with the expansion of the center that are best done at the same time as the excavation and development of the Bullock's site. Rent on Parcel "B" will continue until the encroachment is removed and the lot restored.
With your concurrence, it is my intention to submit the agreement to the City Council at their meeting of September 6,
1977 and to the Parking Authority as soon as possible there- after. The developer intends to commence work on the encrroach- ment area as soon as the agreements have been approved.
VINCENT F. BIONDO, JR. City Attorney
VFB/mla
Attachment
's This agreement is made t5i.s 23rd (lay of August , 1377,
by and between the City of Carlsbad., California (the "City"),
the Parking Authority of the City of Carlshad (the "Auth.ori.?-y")
and. Plaza Camino Real, a California limited partnership
("Developer") .
WI TIil E S S ET H
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WHEREAS, Deve3.oper has entered into an agrecnent dared
1'JovernSer 5, 1975 with Authorj-ty and City with respect+ to the
expansion of the Plaza Camirio Real. Reqional. Shopping Center
hy the addition of two major stores (the "Expansion Agreement");
and .
P7€1ERZAS, one of said major stores will be a Bull.ock's
Department Store; and
WHERE?!-S, as set forth in the Expansion Agreement, the
southern portion of the Bullock's Store will be located on
land that is presently a part of the Existing Public Parking
Area owned b57 the Authority and leased! to Cii47, shown as
Parcel. A, on Exhibit A, attached hereto and made a part hereof;
and
WHEREAS, as contemplated by the Expansion Agreement ,
Authority 2nd City have agreed to convey said land to Developcr.
A condition prccec!c>nt to such exchaiige is the conveyance of
equivalent acreage elsewhere in the Center by Developer to
Authority. Said acreage to be improved by Developer so as to be
of at least equal value and utility for parking purposes: and
WHEREAS, the Expansion Agreement further provides that
arrangements for such conveyances must be acceptable to City
and Authority and must be made before construction is conunenced
on the Bullock's Store; and
WHEREAS, Authority, City and Developer have agreed that the
exchange will not occur until the final map has been recorded
pursuant to the Subdivision Map Act establishing the parcels
to be exchanged as separate lots; and
WHEREAS, on August 2, 1977 City approved the tentative
subdivision map for the proposed expansion which provides for
said lots and Developer is actively moving to meet the require-
ments necessary to obtain approval of the final map; and
WHEREAS, in order to achieve the scheduled date for the
opening of the Bullock's Store, it will be necessary for
Developer to commence grading and excavation for the building
pad of the Bullock's Store and to relocate certain utilities
on the portion of the Bul.lock's Store site presently owned by
the Authority prior to the recording of the final map; and
. WHEREAS, in order to accomplish the expansion in accord-
ance with the Expansion Agreement, Developer must do certain
work including, but not limited to, regrading a portion of the
existing public parking lot and the installation and relocation
2.
of utilities on said portion shown as 'Parcel B, on Exhibit A.
It is necessary that said work be accomplished in conjunction
with the grading and excavation of the Bullock's site; and
WHEREAS, as a result of the proposed expansion of the
Center, Authority will acquire, at less than cost, title to an
expanded, fully improved, public parking facilities and it is
in the Authority's and City's interest to cooperate with
Developer in their expansion efforts in order to acquire said
facilities; and
WHEREAS, City and Authority are satisfied that the number
of spaces affected will not interfere with the overall operation
of the parking facilities and are willing to accommodate the
Developer in accord with the terns of this agreement.
NOW, THEREFORE, t.he Parties hereto agree as follows:
1. Authority and City hereby grant to Developer the right
to temporarily encroach on Authority property, to grade and
excavate the portion of the Bullock's Store site presently owned
by Authority for the purpose of preparing the building pad for 9
the Bullock's Store shown as Parcel A, on Exhibit A. Developer
is also hereby granted the right to relocate any utilities
situated thereon to other portions of the existing Public
Parking Area owned by Authority, in accordance with the precise
plan of development approved by the City pursuant to the Expansion
Agreement.
2. Authority and City hereby grant to Developer the right
to temporarily encroach on Authority property, to grade, relocate
3.
.- A
and instaL1 utilities and accomplish other related work on an
area of the existing Public Parking Lot shown as Parcel B, on
Exhibit A. Developer is also granted the right to relocate any
utilities situated thereon to other portions of the existing
Public Parking Lot owned by Authority. All rights granted by
this agreement for work shall be exercised in accordance with
the Expansion Agreement and the precise plan of development
approved by City pursuant thereto.
3. All rights granted by Sections 1 and 2 hereof to
Developer, shall be exercised in accord with the City of Carlsbad
grading ordinance after securing all necessary permits. Developer
agrees to pay City $428.76 per month for the encroachment on
Parcel A, Developer agrees to pay City $714.60 per month for the
encroachment on Parcel B. Said monthly payments shall be made
in advance on the first day of. each month.
are c0mputed.i.n the proportion which the parking capacity of
Said monthly payments
said properties bear to the parking capacity of the facilities
which are the subject of that certain Lease Agreement (hereinafter
"Lease Agreement"), made and entered into as of the 21st day of
August, 1969 by and between the Authority and City. City hereby
pledges said monthly payments to the rental payments due in
connection with the aforementioned Lease Agreement.
4. Upon the close of the exchange of land for the Bullock's
Store site, rental payments for Parcel A shall terminate. If
said exchange fails to close within such time as the parties hereto
4.
may agree, Developer agrees to vacate Parcel A and to immediately
reconstruct and restore the improvements on the subject Authority
property to the condition existing as of the date of this agree-
ment.
5. Notwithstanding the provisions of Section 4 hereof,
Developer agrees to vacate both Parcels A and B and reconstruct
and. restore the improvements to the condition existing as of
the date of this agreement upon the receipt of a written request
therefor from City or Authority. Authority and City agree
that the said request will not be made prior to Decenber 31,
1978.
6. Developer agrees that it, and its successors in interest,
will not assert any right to exercise its right of reverter
which it may have by virtue of said encroachments under that
s
certain Grant Deed, dated October 21, 1969, which Grant Deed
was recorded the same date as Document No. 193480, Official
Records of San Diego County, California. Nothing .herein shall
be construed as affecting the right of Developer and its
successors in interest to exercise its reversionary rights under
said Grant Deed in connec,tion with any other event.
7. Developer agrees to furnish a certificate evidencing,
in form satisfactory to the City Attorney, liability insurance
in favor of City and Authority for property damage and personal
injury in connection with the rights granted herein in the
amount of $1,000,000.
5.
IN WITNESS WHEREOF, the Parties hereto have executed
this agreement as of the day and year first above written.
ATTEST : CITY OF CARLSBAD
BY Mayor
BY Clerk .
ATTEST : THE PARKING AUTHORITY OF THE CITY OF
CARLSBAD, CALIFORXIA
ATTEST :
APPROVED AS TO FORM:
PLAZA CANIN0 REAL, a California limited
partnership By: The May Stores Shopping Centers, Inc.
VINCENT F. BIONDO, JR.
City Attorney
6.
.. .,
GUARANTY
The May Stores Shopping Centers, Inc., a Missouri
corporation authorized to do business j-n the State of
California, hereby guarantees Developer’s obligations
under the foregoing agreement and further agrees to
furnish security in favor of City and. Authority
guaranteeing the obligation therein set forth to restore
and reconstruct the parking lot improvements. Said
security to be a surety bond in the amount of $60,000.
ATTEST : TEE ,NAY STORES SHCPPING CENTERS, INC.
APPROVED AS TO FORM:
VINCENT F. BIONDO, JR.
City Attorney
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RESOLUTION NO. 5183
A F33SOLUTION OF THE CITY COUNCIL OF THE CITY
OF CARLSBAD, CALIFORPJIA, APPROVING AN AGREE-
MENT BETWEEN THE CITY OF CARLSBAD, THE PAPXING
AUTHORITY AND PLAZA CAMIIJO mAL FOR A TEMPORARY
ENCROACHMENT ON PAWING AUTHORITY PROPERTY TO
ALLOW DEVELOPER TO ACCOrtPLISII CERTAIN CONSTRUCTIOPJ
ACTIVITIES IN CONNECTION WITH THE BULLOCK'S STORE
AND AUTHORIZING THE MAYOR TO EXECUTE SAID
AGREEMENT.
The City Council of the City of Carlsbad, California, does
hereby resolve as follows:
1. That that certain agreement between the City of Carlsbad,
the Parking Authority and Plaza Camino Real, dated August 23, 1977
for a temporary encroachment on Parking Authority property to allc
developer to accomplish certain construction activities in
connection with the Bullock's Store, a copy of which is attached
hereto as Exhibit A, and made a part hereof, is hereby approved.
2. That the Mayor of the City of Carlsbad is hereby author-
ized and directed to execute said agreement for and on behalf of
the City of Carlsbad.
an adjourned
PASSED, APPROVED AND ADOPTED at / regular meeting of the City
Council of the City of Carlsbad, California, held on the 30th
day of August , 1977, by the following vote, to wit:
AYES : Councilmen Frazee, Lewis, Packard, Skotnicki and
NOES : None
Ccuiiciiwurrrari Casier
ABSENT: None
ATTEST: ' rHiiLm-45
E. ADA!!!!S, kity Clerk