1995 JT MIN FEB 21 - Laserfiche WebLink

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to commit both parties to a certain type of pre -construction or pre -development type obligations. The Agency has certain obligations to convey the property to make the site ready for development and the developer has an obligation to obtain the construction loan. The termination provision and the right of reversion are the types of remedies available to the Agency in the event the developer does not perform. Under any DDA, the Agency goal is not to let the title to the property get out of its hand until well into the process. One of the things accomplished here is that by structuring the project as a lease, the Agency does not have to be concerned about the developer purchasing it and not developing the project. The DDA sets obligations on both parties with regard to future performance and termination provisions because of non-performance by the other party. Mayor/Member Fulp asked if the developer did any kind of marketing analysis to determine if that area can absorb through existing traffic another restaurant. Mr. Steward said a study was done and that the area can accommodate five or six more sitdown restaurants. Councilmember/Chairperson Beltran stated that in selecting a Zendejas, it was felt that it would instill something in our Hispanic youth that not only do we have Spanish surname individuals in this City, but that we have others that can be entrepreneurs and this would be a showcase for them to look up to. Director Gabriel said he wished to respond to Councilmember/Member Hutton's earlier question with regard to the interest payments to be received by the Agency. Director Gabriel said that the annual interest on the full amount would be $19,000 or about $1,600 per month that would be paid by the developer to the Agency. Councilmember/Member Bennett asked why the Agency and Chamber of Commerce did not work together to obtain the same project. She also stated the Letter of Intent between Mr. Steward and Zendejas should have been included in the packet. Upon roll call vote, the motion to reject Redevelopment Agency Resolution No. 657 and the DDA in its present form, carried. Counci lmembers /Members Sandoval, Cook and Councilmember/Chairperson Beltran voting "No". RECESS: The Agency recessed at 6:44 p.m., to take up the business of the City Council. The Agency reconvened at 12:34 p.m. ADJOURNMENT• There being no further business to come before the Agency at this time, Chairperson Beltran declared the meeting adjourned at 12:35 - 5 - F L 2 2 1 1995