Joint Special CC/BFPD/Public
Facilities Corporatio
07/17/23 06:00 PM
City Manager Department
Willie A Hopkins
Contract
Doc ID: 5413
COUNCIL AGENDA ITEM
AGENDA MATTER:
APPROVAL OF EXCLUSIVE NEGOTIATING AGREEMENT WITH LEWIS ACQUISITION COMPANY, LLC
EXECUTIVE SUMMARY:
Staff recommends the City Council approve the proposed Exclusive Negotiating Agreement with the Lewis Acquisition Company, LLC. The proposed Exclusive Negotiating Agreement commits the City and the Lewis Acquisition Company only to negotiate regarding the possible acquisition and development of certain parcels in the Lenwood Area. Consideration of any future Disposition and Development Agreement would have to be considered by the City Council at a future open session meeting of the City Council, after required public hearings, Council and Planning Commission review, and potential environmental impact reviews.
DISCUSSION:
The City is considering trying to acquire land from the Bureau of Land Management (“BLM”), a federal land management agency, with the intent to, in turn, transfer the land to the Lewis Group for the development of a mixed-use project. The land under consideration is the BLM Land east and north of the commercial developments along Highpoint Parkway, off Lenwood Road.
City staff has negotiated a draft Exclusive Negotiating Agreement with the Lewis Acquisition Company, LLC (“Lewis Group”) for the Council’s consideration for the land that the City would seek to acquire from the Bureau of Land Management. An exclusive negotiating agreement is an agreement between a government agency and a private developer where the parties agree to negotiate for a set period, and to not negotiate with others, except as required by law, for developing a particular site.
Key Terms of the Exclusive Negotiating Agreement
· City will only negotiate with the Lewis Group for the BLM property o City cannot negotiate with other interested developers, except as required by law · Lewis Group will work with City to identify which BLM parcels interest the City, assist City in valuing the BLM parcels, and determine the best process for working with BLM to designate the property for transfer to the City
· The Exclusive Negotiating Agreement has an initial six-month period, renewable for successive six month periods, and may be terminated by either party on 30 days’ notice · The City and the Lewis Group will in good faith negotiate a Disposition and Development Agreement for developing a mixed-use project at the site.
No payment is contemplated under the terms of the Exclusive Negotiating Agreement.
Joint Special CC/BFPD/Public
Facilities Corporatio
07/17/23 06:00 PM
City Manager Department
Willie A Hopkins
Contract
Doc ID: 5413
COUNCIL AGENDA ITEM
If the City enters into the Exclusive Negotiating Agreement with the Lewis Group, it is under no requirement to approve a Disposition and Development Agreement with the Lewis Group. The Agreement states that by entering into this Agreement the City is not making any commitment that it will approve any future agreement(s) for a project with the Lewis Group or lease or sell any property to the Lewis Group.
The City specifically retains the right to approve or deny proposed future agreement(s), or to approve an alternative Project, or to impose any conditions or mitigation measures upon the Project in its sole discretion. If negotiations under the Agreement result in future agreement(s), City Council approval of those agreements could occur only after compliance, as may be required, with all applicable laws and ordinances including, without limitation, the California Environmental Quality Act, Public Resources Code Section 21000, et seq. Consideration of any future Disposition and Development Agreement would have to be considered by the City Council at a future open session meeting of the City Council, after required public hearings, Council and Planning Commission review, and potential environmental impacts reviews.
FISCAL IMPACT:
RECOMMENDED ACTION:
Approve the proposed Exclusive Negotiating Agreement with the Lewis Acquisition Company, LLC.