HomeMy WebLinkAboutReso 2021-244RESOLUTION NO. 2021-244
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING THE THIRD AMENDMENT TO
REAL PROPERTY PURCHASE AND SALE AGREEMENT
AND JOINT ESCROW INSTRUCTIONS BY AND BETWEEN
THE CITY OF CHULA VISTA AND TECTURE RED, LLC.
FOR THE SALE OF THE 0.14-ACRE COMMERCIAL
PROPERTY LOCATED AT 224 THIRD AVENUE
WHEREAS, in February 2015, the City Council authorized the purchase of a 0.14-acre
parcel at 224 Third Avenue, directly north of the Vogue Theater, for a purchase price of
$260,000, with the intent of holding the property for future use as an economic incentive to
encourage redevelopment of the adjacent Vogue Theater property; and
WHEREAS, Tecture Red, LLC. (“Buyer”) expressed interest in purchasing the subject
property for use in the redevelopment and revitalization of the Vogue Theater; and
WHEREAS, City staff has determined that the sale of 224 Third Avenue would enable
and incentivize Buyer to redevelop and revitalize the adjacent Vogue Theater; and
WHEREAS, Buyer offered to purchase the Property from City for $210,000, a cost
determined to be fair market value at the time the parties negotiated the agreement, subject to the
conditions to be set forth in the agreement to ensure timely completion of the project; and
WHEREAS, in April 2019, the City Council approved the Purchase and Sale Agreement
and Joint Escrow Instructions by and between the City and Tecture Red, LLC, with an escrow
close date of November 29, 2020 and time certain deadlines for Buyer to submit complete
construction documents and pull permits for the project; and
WHEREAS, on December 1, 2020, due to circumstances related to the COVID-19
pandemic, the City Council approved an amendment to the agreement to extend the escrow close
date and other time periods for Buyer to satisfy performance measures in the agreement, and to
add additional performance measures for the benefit and protection of the City; and
WHEREAS, Buyer has represented to City staff that due to the continuing hardships
caused by COVID-19 pandemic it has not been able to timely satisfy the performance measures
set forth in the agreement, and has requested an additional amendment to further extend the close
of escrow date and the deadlines for Buyer to satisfy those performance measures; and
WHEREAS, the proposed third amendment to the agreement would allow for an
additional 90-days for Buyer to provide proof of financing until March 14, 2022, an additional
180-days for Buyer to submit complete construction documents until June 13, 2022, an
additional 180-days after submittal to pull permits until December 9, 2022, and would extend the
close of escrow until January 9, 2023.
DocuSign Envelope ID: 47F39EC5-F591-4424-BE03-DF3F7CAF5398
Resolution No. 2021-244
Page No. 2
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula
Vista, that it approves Third Amendment to Real Property Purchase and Sale Agreement and
Joint Escrow Instructions between the City of Chula Vista and Tecture Red, LLC, in the form
presented, with such minor modifications as may be required or approved by the City Attorney, a
copy of which shall be kept on file in the office of the City Attorney, and authorizes and directs
the City Manager, or designee, to execute the same.
Presented by Approved as to form by
Eric C. Crockett Glen R. Googins
Deputy City Manager/Director of Economic City Attorney
Development
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 14th day of December 2021 by the following vote:
AYES: Councilmembers: Cardenas, Galvez, McCann, and Padilla
NAYS: Councilmembers: None
ABSENT: Councilmembers: None
ABSTAIN: Councilmembers: Casillas Salas
Mary Casillas Salas, Mayor
ATTEST:
Kerry K. Bigelow, MMC, City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
CITY OF CHULA VISTA )
I, Kerry K. Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Resolution No. 2021-244 was duly passed, approved, and adopted by the City Council at a
regular meeting of the Chula Vista City Council held on the 14th day of December 2021.
Executed this 14th day of December 2021.
Kerry K. Bigelow, MMC, City Clerk
DocuSign Envelope ID: 47F39EC5-F591-4424-BE03-DF3F7CAF5398