REPORT TO COUNCIL
SUBJECT
Title
Action on Consent to Assignment and Assumption of Reimbursement Agreement for the Patrick Henry Specific Plan Project [Council Pillar: Promote and Enhance Economic, Housing and Transportation Development]
Report
BACKGROUND
Following prior City Council direction, the City is preparing a Specific Plan for the Patrick Henry Plan Area using planning consultant Moore Iacofano Goltsman, Inc. (MIG). As provided for in the City's General Plan, the consultant agreement for the Specific Plan is fully funded by a Reimbursement Agreement entered into by the City with a group of ten developers with real estate interests within the Specific Plan area.
DISCUSSION
The Sobrato Organization, LLC, (Sobrato) is one of the ten parties to the existing Reimbursement Agreement (Agreement). Sobrato recently sold its property interest within the Specific Plan area to the entity "4590 Patrick Henry LLC", an affiliate of Walnut Hill Acquisitions.
Pursuant to Article VI.B of the Reimbursement Agreement, assignment of the agreement from one party to another is subject to City approval. The Sobrato Organization, LLC, and 4590 Patrick Henry LLC have mutually agreed to the terms of the attached Assignment and Assumption of Reimbursement Agreement and have requested the City's consent to said agreement. The City's current procedures require the City Council to approve such an assignment.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a "project" within the meaning of the California Environmental Quality Act ("CEQA") pursuant to CEQA Guidelines section 15378(a) as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.
FISCAL IMPACT
There is no fiscal impact associated with this consent to assignment agreement. The financial obligations of the original reimbursement agreement will be transferred to the new ownership party, 4590 ...
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