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Home My Public Portal About18. Fourth Amendment to the Negotiating Agreement with Village Partners Ventures1►0 ,E 1997 - File #: 4288 Claremont City Council Agenda Report TO: ADAM PIRRIE, CITY MANAGER FROM: JAMIE EARL, ASSISTANT CITY MANAGER DATE: J U LY 26, 2022 SUBJECT: Item No: 18. Reviewed by: City Manager: AP FOURTH AMENDMENT TO THE EXCLUSIVE NEGOTIATING AGREEMENT WITH VILLAGE PARTNERS VENTURES, LLC FOR THE POTENTIAL PURCHASE OF CITY -OWNED PROPERTY, LOCATED AT 451 WEST ARROW HIGHWAY (FUNDING SOURCE: GENERAL FUND) SUMMARY In November 2020, the City and Village Partners Ventures, LLC (Village Partners) entered into an Exclusive Negotiating Agreement (ENA) to negotiate in good faith regarding the potential purchase and sale of real property owned by the City of Claremont. The initial term of the negotiating period was 90 days, with an additional period of 120 days granted under the authority of the City Manager. In June 2021, the City and Village Partners entered into a First Amendment to the ENA, which extended the negotiating period for an additional 90 days, with the option to extend an additional 60 days under the authority of the City Manager. In October 2021, the City and Village Partners entered into a Second Amendment to the ENA, which extended the negotiating period for an additional 90 days, with the option to extend an additional 60 days under the authority of the City Manager. In March 2022, the City and Village Partners entered into a Third Amendment to the ENA, which extended the negotiating period for an additional 90 days, with the option to extend an additional 60 days under the authority of the City Manager. The City and Village Partners have been negotiating in good faith but require additional time to complete the negotiations. The parties wish to extend the negotiating period for an additional 90 days, with the option to extend an additional 60 days under the authority of the City Manager. Extending the negotiating period must be authorized by the City Council. RECOMMENDATION Staff recommends that the City Council authorize the City Manager to execute a Fourth Amendment to the Exclusive Negotiating Agreement with Village Partners Ventures, LLC, extending the negotiating period for an additional 90 days, with the option to extend an additional 60 days under the authority of the City Manager, for the potential purchase of City -owned property located at 451 West CLAREMONT Page 1 of 3 Printed on 7/21/2022 Arrow Highway. ALTERNATIVES TO RECOMMENDATION In addition to the recommendation, there are the following alternatives: A. Request additional information. B. Do not approve the Fourth Amendment to the Exclusive Negotiating Agreement (ENA), in which case the current ENA would expire on August 21, 2022. FINANCIAL REVIEW There is no direct cost associated to amending the Exclusive Negotiating Agreement. The purchase price of the parcel will be determined during the negotiations and will be considered by the City Council at a later date. The staff cost to research and prepare this report is estimated at $431 and is included in the operating budget of the Administrative Services Department. ANALYSIS The City and Village Partners Ventures, LLC (Village Partners), entered into an Exclusive Negotiating Agreement (ENA) to negotiate the potential purchase and sale of real property owned by the City of Claremont. The subject parcel is located at 451 West Arrow Highway and was the last remaining Claremont Redevelopment Agency (RDA) property to be disposed of. The City purchased the parcel from the Claremont Successor Agency in 2018 with the intent to sell the parcel for future development. The initial term of the negotiating period was 90 days, with an additional period of 120 days granted under the authority of the City Manager. In June 2021, the City Council authorized a First Amendment to the ENA, which extended the negotiating period for an additional 90 days, with the option to extend an additional 60 days under the authority of the City Manager. In October 2021, the City Council authorized a Second Amendment to the ENA, which extended the negotiating period for an additional 90 days, with the option to extend an additional 60 days under the authority of the City Manager. In March 2022, the City and Village Partners entered into a Third Amendment to the ENA, which extended the negotiating period for an additional 90 days, with the option to extend an additional 60 days under the authority of the City Manager. The current ENA will expire on August 21, 2022, unless a Fourth Amendment is authorized by the City Council. The parties have been negotiating in good faith, but require additional time to complete the negotiations, which must be authorized by the City Council. Staff recommends that the City Council authorize the City Manager to execute a Fourth Amendment to the ENA extending the negotiating period for an additional 90 days, with the option to extend an additional 60 days under the authority of the City Manager. If approved, the amended ENA would expire on November 19, 2022, with the City Manager's discretion to extend through January 18, 2023. Staff does not anticipate that further extensions will be required. LEGAL REVIEW The Fourth Amendment to the Exclusive Negotiating Agreement was prepared by the City's legal firm CLAREMONT Page 2 of 3 Printed on 7/21/2022 and approved as to form by the City Attorney. RELATIONSHIP TO CITY PLANNING DOCUMENTS Staff has evaluated the agenda item in relationship to the City's strategic and visioning documents and finds that it applies to the following City Planning Documents: Council Priorities and the 2022-24 Budget. CEQA REVIEW Authorizing staff to enter into a fourth amendment to an exclusive negotiating agreement is not subject to environmental review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and Section 15060(c)(3) (the activity is not a "project" as defined in Section 15378)/ CEQA Guidelines Section 15378(b)(2), (4), and (5) excludes `[c]ontinuing administrative of maintenance activities," `[t]he creation of government funding mechanisms or other government fiscal activities which do not involve any commitment to any specific project which may result in a potentially significant impact on the environment,' and `[o]rganizational or administrative activities of governments that will not result in direct or indirect physical changes to the environment" from its definition of "project". This action is also covered by the general rule that the California Environmental Quality Act (CEQA) applies only to projects that have the potential for causing a significant effect on the environment in accordance with Section 15031(b)(3) of the Guidelines. Entering into a fourth amendment to an agreement will not, in and of itself, result in any physical changes to the environment. Thus, no additional environmental review is needed at this time. PUBLIC NOTICE PROCESS The agenda and staff report for this item have been posted on the City website and distributed to interested parties. If you desire a copy, please contact the City Clerk's Office. Submitted by: Prepared by: Jamie Earl Katie Wand Assistant City Manager Assistant to the City Manager CLAREMONT Page 3 of 3 Printed on 7/21/2022