I. RECOMMENDATION:
Staff is recommending the City Council approve and authorize the City Manager to sign the First Amendment to the Warthan Meadows Subdivision Agreement in order to facilitate the sale of a 53 lot of Tentative Subdivision Map No. 5451 for Tract No. 5776.
II. BACKGROUND:
On March 3, 2005, by Resolution No. 3076, the City Council of the City approved Tentative Map 5451 (application number 04-03) for subdivision of the real property (the “Subdivision”), together with Conditions of Approval. The conditions of approval for the tentative map of Tract No. 5776 (53 lots) require improvements within and adjacent to the Subdivision and satisfaction of certain other conditions. A final map was approved on June 7, 2007 along with the execution of a subdivision agreement to ensure the security (in the form of a bond) if such improvements do not occur.
The property is currently in escrow to be sold to a new buyer who is interested in building out the 53 lots within the Warthan Meadows subdivision. In order to facilitate the sale, the buyer, seller and the City need to execute an amendment to the existing subdivision agreement to ensure the City maintains security (active bond) for the required improvements through the sale.
III. DISCUSSION:
The first amendment to the subdivision agreement (both original agreement and amendment are attached) insures performance by the buyer of its obligations under the City Subdivision Ordinance and Map Act for the development of a subdivision pursuant to map TSM 5451 for Tract No. 5776. The amendment transfers the responsibilities in the original subdivision agreement from the existing owner to the new owner upon close of escrow and final sale. It also, ensures the new owner secures faithful performance of the agreement through a performance bond covering 100% of the estimated cost of improvements (worksheets attached). This agreement essentially ensures that the City maintains guaranteed security of improvements through the sale of the property.
IV. ALTERNATIVES:
Do not authorize the City Manager to execute the contract - Staff does not recommended as this would result in the sale not occurring.
V. FISCAL IMPACT:
None determined at this time. | | |