Item-01
To: Mayor and City Council
From: Dan Flores, Community Development and
Economic Director
Subject: Request for Assignment of DDA for the B-Street Property Development to Berryessa LLC Recommendation:
Staff recommends that the City Council approve the assignment of the DDA from Engstrom Properties, LLC and Presidio, LLC to Berryessa LLC, subject to the below stated conditions. The conditions ensure that both Engstrom Properties, Inc. and Presidio, LLC remain responsible for the performance of the DDA, protecting the City’s interests while allowing the project to proceed.
Background:
The developers have submitted a request to assign the existing DDA to Berryessa LLC. After a thorough review, the following conditions must be met to ensure the assignment is in compliance with the DDA and protects the interests of the City.
Conditions of Approval:
Joint and Several Responsibility of Engstrom Properties, Inc.
The consent to the assignment is expressly conditioned upon a recital in the Grant Deed (Attachment 5 to the DDA) that Engstrom Properties, Inc. and Presidio LLC remain jointly and severally responsible for the performance of the DDA. This responsibility will continue until the Certificates of Completion for the development of the entire site are recorded. Engstrom Properties, Inc. and Presidio, LLC must acknowledge this condition with their signature.
Covenant Responsibility of Engstrom Properties, Inc.
Similarly, the consent is conditioned upon a recital in the Agreement Containing Covenants (Attachment 6 to the DDA) stating that Engstrom Properties, Inc. and Presidio, LLC remain jointly and severally responsible for fulfilling the obligations of the DDA until the Certificates of Completion for the entire development are recorded. This condition must also be acknowledged by the signature of Engstrom Properties, Inc. and Presidio, LLC.
No Encumbrances on the Property
The consent to assignment is also conditioned upon there being no liens, mortgages, deeds of trust, covenants, conditions, and restrictions (CCRs) — aside from the one in favor of the City — or any other interests granted to third parties related to the transfer from the City to the buyer.
Date: September 24, 2024
Item-01
Provision of Required Documents
The assignment consent is conditioned upon the assignee and developer providing all required documents, whether they are delivered through escrow or afterward, to ensure full compliance with the terms of the DDA.
Fiscal Analysis:
None at this time.
Attachment:
1) Original Grant Deed
2) Revised Grant Deed
3) Disposition and Development Agreement