AgdaPkt 2003-05-19 - Laserfiche WebLink

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5.2 A -1 May 19, 2003 Subject GID 1 -64 Development Agreement Temporary Extension Recommendation Introduce an Ordinance approving and authorizing the seventh amendment to the Development Agreement between the City of Redwood City, General Improvement District No. 1 -64 (GID 1 -64) and Redwood Shores Properties, for a temporary extension up to and including September 30, 2003. Background On May 20"', 2002, after a public hearing, the City Council approved the concept to pursue an extension of GID 1 -64 Development Agreement with Redwood Shores Properties. On October 14, 2002, City Council approved a sixth amendment to the Development Agreement granting a temporary extension (up to June 23, 2003) to allow time for the preparation of all documents necessary to extend the Development Agreement for another three years. The continuous short-term extensions are due to the complexity of the GID 1 -64 voting rights between Ryland Homes and Redwood Shores Properties. In 1997, Redwood Shores Properties signed an Irrevocable Proxy Agreement with Ryland Homes to permit Ryland Homes to appoint three (3) members to the GID 1 -64 Committee. However, Redwood Shores Properties continue as the signatory of the GID 1 -64 Development Agreement with Redwood City (GID 1 -64). In the past year, Ryland Homes refused to return its three voting rights to Redwood Shores Properties for two reasons: (1) Ryland Homes' request for reimbursement for GID- related construction costs has been rejected by the City, and (2) There are pending legal issues between homeowners and Ryland Homes. Redwood Shores Properties, however, is only willing to further extend the Development Agreement for three years with the City, if they receive the proxies back from Ryland Homes. As of this date, Ryland Homes has accepted the City's offer of final reimbursement GID expenses. Legal Council from Ryland Homes has also agreed to review the document to terminate the Irrevocable Proxy Agreement with Redwood Shores Properties. Therefore, the City GID 1 -64, and Redwood Shores Properties have agreed to temporarily extend the existing Development Agreement up to September 30, 2003; any further extension will require the resolution of Irrevocable Proxy Agreement.