HomeMy WebLinkAbout0003_1_Implementation Agrmt - SRREPORT TO SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF
THE CITY OF LAKE ELSINORE
To:Honorable Chair Magee
and Members of the Successor Agency
From:Grant Yates, Executive Director
Prepared by: Barbara Leibold, Successor Agency Counsel
Date:January 24, 2017
Subject:Second Implementation Agreement Pursuant To Amended and Restated
DDA, Summerly
Recommendation
adopt A RESOLUTION OF THE SUCCESSOR AGENCY OF THE
REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE, CALIFORNIA,
APPROVING THE SECOND IMPLEMENTATION AGREEMENT PURSUANT TO
AMENDED AND RESTATED DDA, SUMMERLY
Background
In 2002, the former Redevelopment Agency of the City of Lake Elsinore entered into
a Disposition and Development Agreement with Civic Partners-Elsinore LLC (“Master
Developer”) and Laing-CP Lake Elsinore LLC relating to the acquisition and
development of certain property located within the East Lake Specific Plan (ELSP)
commonly known as “Summerly”. The Disposition and Development Agreement was
amended and restated in 2011 by and among the Agency, the Master Developer and
McMillin Summerly, LLC (“Developer”) as the successor in interest to Laing following
the Developer’s acquisition of the property and entitlements for the Summerly project.
Since the dissolution of the former Redevelopment Agency, the irrevocable pledge of
property tax increment in the DDA has been listed on the Successor Agency ROPS
(lines 12 and 13) and recognized as an enforceable obligation. In 2015, the
California Department of Finance (“DOF”) issued a final and conclusive determination
regarding the DDA, finding both ROPS items to be enforceable obligations.
Implementation Agreement
January 24, 2017
Page 2
Discussion
Since approval of the DDA, the Developer has complied with its obligations and the
Summerly project is being developed in phases in accordance with the provisions of
the DDA. The City has approved several modifications to the Summerly project
entitlements, including subdivision of a future school site determined to be
unnecessary by the school district, relocating the Summerly recreation center to a
more central location and entering into a Park Implementation Agreement to provide
for the phased completion by the Developer of the turn-key 24-acre regional park.
The purpose of the Implementation Agreement is to implement these changes into
the DDA so that the timing and phasing of development of the Summerly Project are
consistent and clearly defined. The Implementation Agreement also addresses the
Successor Agency’s obligation to issue bonds secured by the pledge of property tax
increment in the DDA in accordance with Health & Safety Code Section
34177.5(a)(4).
Exhibits
A - Resolution
B – Agreement
C – Implementation Matrix
D – Map