HomeMy WebLinkAboutAgenda Statement 1988/05/24 Item 7COUNCIL AGENDA STATEMENT
• Item 7
Meeting Date 5/24/88
ITEM TITLE: RESOLUTION ~~~io Amendment to the Reciprocal Grant of
Easement and Declaration of Establishing Restrictions
and Covenants between the City of Chula Vista and Centre
City Associates, Limited - Commercial for the public
parking structure
SUBMITTED BY: Community Development Director
REVIEWED BY: City Manager ~~~~9~~" (4/5ths Vote: YES_NO X )
At the May 5, 1988 meeting, the City Council approved a report that
suggested revision to the operating agreement between the developer and
the City relative to the Town Centre parking structure.
RECOMMEivuATIUN: Approve resolution with revision to the Reciprocal Grant
of Easement and Declaration of Establishing Restrictions and Covenants
between the City of Chula Vista and Centre City Associates, Limited -
Commercial (CCAL-C).
BOARDS/COMMISSIONS RECOMMENDATION: Not Applicable.
• DISCUSSION:
The purpose of the revision is to provide a more favorable rent and payment
structure for businesses operating in the retail center at Fourth and F
Street. Presently, merchants pay part of the debt service on the parking
structure and part of the structure maintenance, as well as their rent and
cost for common area maintenance. The proposed revisions provide for an
up-front payment of $150,000 in lieu of annual payments which now amount
to approximately $21,000 per year. If capitalized, the revised cost amounts
to an approximate loss of $6,000 per year. However, if this proposal does
provide the anticipated incentives and financial advantages to the
merchants, the annual loss would be substantially offset by the annual
increase in sales tax.
There are several contingencies once this agreement is approved by the City.
They are:
A. The property must close escrow and change hands from CCAL-C to a
new owner; and,
B. Either Marie Callendar's or United Artists Theatres must agree to
the provisions of the agreement. Seeking this agreement is the
responsibility of CCAL-C.
r~
Page 2, Item ~
Meeting Date 5/24/88
• FISCAL IMPACT: $150,000 will be forthcoming as a one-time payment in lieu
of the annual payment of $21,000 to the City. This payment also does away
with overage provisions based on percentage sale for the retail merchants
in the retail center.
C
• the City ouncil of
Chula Vista„ California
Dated