ITEM 4. 11
CITY MANAGER' S REPORT
TUNE 12, 2023 CITY COUNCIL REGULAR MEETING
ITEM: APPROVE AGREEMENT TO ADOPT ALTERNATIVE
METHOD OF MEETING REQUIREMENTS OF
DEVELOPMENT AGREEMENT WITH SOUTH LATHROP
LAND, LLC FOR THE SOUTH LATHROP COMMERCE
CENTER
RECOMMENDATION: Adopt Resolution Approving Agreement to Adopt Alternative Method of Meeting Requirements of
Section 7. 04. 7. 1 of the Development Agreement with
South Lathrop Land, LLC for the South Lathrop
Commerce Center
SUMMARY:
On March 2, 2018, South Lathrop Land, LLC ( SLL) purchased all of Richland Developers, Inc.' s land holdings and entitlements in the South Lathrop Specific Plan SLSP) to take on the role of the master developer of the infrastructure and improvements as shown and outlined in the previously approved Specific Plan and consistent with the related Development Agreement ( DA).
Section 7. 04. 7. 1 of the DA required a SLSP trail program, which includes linear trails covering approximately 21 net acres. The trail would run along the western boundary of the project, adjacent to the levee, and incorporate a pedestrian walkway, bike trail, and passive use amenities such as benches and picnic tables ( linear park).
Staff has determined that the linear park is no longer needed in the SLSP area due to the probability of use and practicality of the location. Therefore, staff is requesting for approval of an Agreement to provide an alternative method of meeting requirements of Section 7. 04. 7. 1 of the DA ( Agreement), included as Attachment D". The alternative method includes the installation of street landscaping, trees, and fencing as shown in the plans provided by SLL ( Attachment " C").
BACKGROUND:
On July 20, 2015, the South Lathrop Specific Plan ( SLSP) was adopted by City Council and annexed to the City of Lathrop on June 14, 2016. The SLSP annexation includes a 99- acre portion of the Lathrop Gateway Business Park Specific Plan and encompasses a 315- acre area that includes commercial office uses, limited industrial uses and open space.
On April 18, 2016, City Council approved South Lathrop Commerce Center Vesting Tentative Parcel Map No. VTM 15- 94 with Conditions of Approval for development consistent with the SLSP. The South Lathrop Commerce Center ( SLCC) Project is generally located at the southeast portion of the City limits bounded by State Route CITY MANAGER' S REPORT PAGE 2
JUNE 12, 2023 CITY COUNCIL REGULAR MEETING
APPROVE AGREEMENT TO ADOPT ALTERNATIVE METHOD OF MEETING
REQUIREMENTS OF DEVELOPMENT AGREEMENT WITH SLL FOR SLCC 120 to the north, San Joaquin River to the west, and the Union Pacific Railroad to the south.
On March 2, 2018, South Lathrop Land, LLC ( SLL) purchased all of Richland Developers, Inc.' s land holdings and entitlements in SLSP and took on the role of master developer of the infrastructure and improvements as shown and outlined in the previously approved Specific Plan and consistent with the related DA.
Section 7. 04. 7. 1 of the DA requires the inclusion of a SLSP trail program, which encompasses linear trails spanning around 21 net acres. The trails were planned to be situated along the project' s western boundary, running parallel to the levee, and will feature a pedestrian walkway, bike trail, and various passive amenities like benches and picnic tables ( linear park).
Staff has determined that the linear park is no longer necessary or practical in the SLCC area. As a result, staff recommends Council approve the Agreement, included as Attachment " D". The alternative method includes the installation of street landscaping, trees, and fencing instead if the linear park as shown on the plans included as Attachment " C".
REASON FOR RECOMMENDATION:
The linear park in the SLCC area is no longer needed or practical; therefore, staff recommends that Council find that the park is no longer necessary or practical and to approve the Agreement to provide alternative to Section 7. 04. 7. 1 of the DA to only include the improvements shown in Attachment " C".
BUDGET IMPACT:
There is no budget impact to the City as all costs are covered by SLL and any shortfalls in the City' s maintenance and operating costs are covered by the CFD' s adopted by property owners of SLSP.
ATTACHMENTS:
A. Resolution Approving Agreement to Provide and Alternative Method of Meeting Requirements of Section 7. 04. 7. 1 of the Development Agreement with South Lathrop Land, LLC for the South Lathrop Commerce Center B. Vicinity Map - Area of Improvements
C. Approved Plans
D. Agreement with South Lathrop Land, LLC to Provide Alternative Method of Meeting Requirements of Section 7. 04. 7. 1 of the Development Agreement with South Lathrop Land, LLC for the South Lathrop Commerce Center
CITY MANAGER' S REPORT
JUNE 12, 2023 CITY COUNCIL REGULAR MEETING
PAGE 3
APPROVE AGREEMENT TO ADOPT ALTERNATIVE METHOD OF MEETING
REQUIREMENTS OF DEVELOPMENT AGREEMENT WITH SLL FOR SLCC
APPROVALS
XOZ/,(
Bellal Nabizadah
Assistant Engineer
X'
2 odd astian
Parks and Recreation Director
AZ
Brad 7raylor
City Engineer
Cad Jame!
Finance Di
Michael King
Assistant City Manager
Salvador Navarrete
City Attorney
Stephen Salvatore
City Manager
5/ 23
Date
d1,6/ 2Oz3
Date
6/ 5/; 0Z3
Date
Date
Date
51- z3
Date
7- 23
Date
RESOLUTION NO. 23-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP
APPROVING AGREEMENT TO PROVIDE ALTERNATIVE METHOD OF MEETING REQUIREMENTS OF SECTION 7. 04. 7. 1 OF THE DEVELOPMENT AGREEMENT
WITH SOUTH LATHROP LAND, LLC FOR THE SOUTH LATHROP COMMERCE CENTER
WHEREAS, on July 20, 2015, the South Lathrop Specific Plan ( SLSP) was adopted by City Council and annexed to the City of Lathrop on June 14, 2016. The SLSP annexation includes a 99- acre portion of the Lathrop Gateway Business Park Specific Plan and encompasses a 315- acre area that includes commercial office uses, limited industrial uses and open space; and
WHEREAS, on April 18, 2016, City Council approved South Lathrop Commerce Center ( SLCC) Vesting Tentative Parcel Map No. VTM 15- 94 with Conditions of Approval for development consistent with the SLSP. The South Lathrop Commerce Center ( SLCC) Project is generally located at the southeast portion of the City limits bounded by State Route 120 to the north, San Joaquin River to the west, and the Union Pacific Railroad to the south; and
WHEREAS, on March 2, 2018, South Lathrop Land, LLC ( SLL) purchased all of Richland Developers, Inc.' s land holdings and entitlements in SLSP and took on the role of master developer of the infrastructure and improvements as shown and outlined in the previously approved Specific Plan and consistent with the related Development Agreement ( DA); and
WHEREAS, Section 7. 04. 7. 1 of the DA requires the inclusion of a SLSP trail program, which encompasses linear trails spanning around 21 net acres. The trails were planned to be situated along the project' s western boundary, running parallel to the levee, and will feature a pedestrian walkway, bike trail, and various passive amenities like benches and picnic tables ( linear park); and WHEREAS, staff has determined that the linear park is no longer necessary or practical in the SLCC area; and
WHEREAS, as a result, staff recommends Council to find that the park is no longer necessary or practical and to approve the Agreement ( Attachment " D" to the City Manager' s Report that accompanied this resolution) to provide an alternative method for SLL to meet the requirements of Section 7. 04. 7. 1 of the DA.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Lathrop finds that the linear park is no longer necessary or practical and approves the proposed agreement with SLL included as Attachment " D" to the CMR that accompanied this resolution and authorizes the City Manager or their designee to execute the agreement to provide an alternative method for SLL to meet the requirements of Section 7. 04. 7. 1 of the DA.
PASSED AND ADOPTED by the City Council of the City of Lathrop this 12tn day of June 2023 by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Sonny Dhaliwal, Mayor
ATTEST: APPROVED AS FORM:
Teresa Vargas, City Clerk Salvador Navarrete, City Attorney
ATTACHMEN
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ATTACHMENT
D «
AGREEMENT
TO PROVIDE AN ALTERATIVE METHOD OF MEETING REQUIREMENTS OF SECTION 7.04. 7. 1 OF THE DEVELOPMENT AGREEMENT FOR SOUTH LATHROP
COMMERCE CENTER
This Agreement to provide an alternative method of meeting requirements of Section 7.04.7. 1 of the Development Agreement for the South Lathrop Commerce Center is made and entered into on the 12th day of June 2023, by and between the CITY OF LATHROP, a municipal corporation of the State of California (hereinafter referred to as the " CITY"), and South Lathrop Land, LLC, a Delaware limited liability company ( hereinafter referred to as " SLL"), ( the " Agreement").
RECITALS
A. This Agreement is in reference to the construction of the Linear Park as part of the development of South Lathrop Commerce Center pursuant to that certain Development Agreement by and between the City of Lathrop (" City") and South Lathrop Land, LLC, a Delaware limited liability company (" South Lathrop Land") (as successor -in -interest to Richland Developers, Inc., a Delaware corporation), recorded on September 2, 2015 ( Document No. 2015- 106926) and Transfer Agreement Relating to Development Agreement dated March 2, 2018 as approved by City via Lathrop Ordinance No. 18- 390 (" DA"). Capitalized terms not defined herein shall have the meanings ascribed to them in the Development Agreement. South Lathrop Land has provided Approved Plans, which plans are attached hereto as Exhibit A ("Approved Plans").
NOW THEREFORE, City agrees to allow SLL to meet the requirements of Section
7. 04. 7. 1 of the DA by providing only the improvements shown on the Approved Plans. City acknowledges and agrees that SLL' s construction and dedication of improvements depicted on the Approved Plans and any additional reasonably necessary associated improvements (i) fully satisfy the requirements for the Modified Condition as set forth in the Development Agreement, and ( ii) comply with the Conditions of Approval on Vesting Tentative Parcel Map No. 15- 94 ( approved by the City Council on or about April 18, 2016, pursuant to Resolution No. 16- 4059).
South Lathrop Land has provided City both a performance bond and a materials and labor bond collectively referred to as the " Bonds") for the construction of the Linear Park, in accordance with the Subdivision Improvement Agreement dated September 18, 2018, between the City and South Lathrop Land (the " Subdivision Improvement Agreement"). The Bonds were calculated based on the engineer's estimate of the construction costs for the Linear Park at the time of the City's approval of the Subdivision Improvement Agreement. City agrees that upon South Lathrop Land' s completion of the construction of the improvements in accordance with the Approved Plans and acceptance of the same by the City after inspection by staff and receipt of lien releases and Agreement to Modify Condition ( South Lathrop Land, LLQ Linear Park at South Lathrop Commerce Center
warranty bond, City will release bonds for the Linear Park. The bond values provided with the Subdivision Improvement Agreement for the Linear Park are $ 1, 100, 000 for performance and 550, 000 for labor and materials. City will accept a warranty bond ( the " New Bond") based on the amount determined by the City in accordance with the engineer' s estimate for this work. The New Bond shall remain in place for one ( 1) year following City's acceptance of the completed improvements, in accordance with Section 12 of the Subdivision Improvement Agreement.
South Lathrop Land and City agree that the above terms are intended to clarify certain provisions of the Development Agreement and the Subdivision Improvement Agreement based on current conditions, but do not intend to specifically amend either document. The Development Agreement and the Subdivision Improvement Agreement remain in full force and effect.
The following miscellaneous provision are applicable:
a. Consent. Whenever in this Agreement the approval or consent of a party is required, such approval or consent shall be in writing and shall be executed by a person having the express authority to grant such approval or consent. b. Controlling Law. The parties agree that this Agreement shall be governed and construed by and in accordance with the Laws of the State of California.
C. Definitions. The definitions and terms are as defined in this Agreement. d. Force Majeure. Neither party shall be deemed to be in default on account of any delay or failure to perform its obligations under this Agreement that directly results from an Act of God or an act of a superior governmental authority. e. Headings. The paragraph headings are not a part of this Agreement and shall have no effect upon the construction or interpretation of any part of this Agreement. f. Incorporation of Documents. All documents constituting the Agreement documents as described herein and all documents which may, from time to time, be referred to in any duly executed amendment hereto are by such reference incorporated in the Agreement and shall be deemed to be part of this Agreement. g. Integration. This Agreement and any amendments hereto between the parties constitute the entire agreement between the parties concerning the deferral of the frontage improvements. There are no other prior oral or written agreements between the parties that are not incorporated in this Agreement regarding the timing of such frontage improvements.
h. Modification of Agreement. This Agreement shall not be modified or be binding upon the parties unless such modification is agreed to in writing and signed by the Agreement to Modify Condition ( South Lathrop Land, LLQ Linear Park at South Lathrop Commerce Center
parties.
i. Provision. Any agreement, covenant, condition, clause, qualification, restriction, reservation, term, or other stipulation in the Agreement shall define or otherwise control, establish or limit the performance required or permitted or to be required of or permitted by either party. All provisions, whether covenants or conditions, shall be deemed to be both covenants and conditions.
j. Severability. If a court of competent jurisdiction finds or rules that any provision of this Agreement is void or unenforceable, the provisions of this Agreement not so affected shall remain in full force and effect.
k. Successors and Assigns. Except as otherwise expressly provided herein, the provisions of this Agreement shall inure to the benefit of, and shall apply to and bind, the successors and assigns of the Parties.
1. Time is of the Essence. Time is of the essence of this Agreement and each of its provisions, in the calculation of time hereunder, the time in which an act is to be performed shall be computed by excluding the first Day and including the last. If the time in which an act is to be performed falls on a Saturday, Sunday, or any Day observed as a legal holiday by CITY, the time for performance shall be extended to the following Business Day.
M. Venue. In the event that suit is brought by either party hereunder, the parties agree that trial of such action shall be vested exclusively in the state courts of California in the County of San Joaquin or in the United States District Court for the Eastern District of California.
n. In the event that there are any changes to the law that make any part of this Agreement invalid, that portion of the Agreement shall be severed from the Agreement and the remaining portions of the Agreement shall remain in full force and effect.
o. In the event of any controversy, claim, or dispute relating to this instrument or the breach thereof, the prevailing party shall be entitled to recover from the losing party reasonable expenses, attorney' s fees, and costs.
Agreement to Modify Condition ( South Lathrop Land, LLQ Linear Park at South Lathrop Commerce Center
ATTACHMENTS:
EXHIBIT A APPROVED PLANS
EXHIBIT B AREA OF IMPROVEMENTS
Agreement to Modify Condition ( South Lathrop Land, LLQ Linear Park at South Lathrop Commerce Center
IN WITNESS WHEREOF, the parties hereto have executed this Agreement on this 121h day of June 2023, at Lathrop, California.
ATTEST: TERESA VARGAS
City Clerk of and for the City
of Lathrop, State of California
Teresa Vargas Date
City Clerk
CITY OF LATHROP, a
municipal corporation of the
State of California
M.
Stephen J. Salvatore Date
City Manager
APPROVED AS TO ORM BY THE CITY OF LATHROP CITY ATTORNEY BY: ZG Z S
Salvador Navarrete Date
City Attorney
Agreement to Modify Condition ( South Lathrop Land, LLC) Linear Park at South Lathrop Commerce Center
South Lathrop Land, LLC,
a Delaware limited liability company
By: CHI West 109 South Lathrop Land, L.P.,
a Delaware limited partnership,
its managing member
By: CHI LTH GP, L.L.C..
a Delaware limited liability company,
its general partner
By:
Name:
Its:
Agreement to Modify Condition ( South Lathrop Land, LLQ Linear Park at South Lathrop Commerce Center
EXHIBIT " A"
APPROVED PLANS
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