1990 AGN APR 17 I19 - Laserfiche WebLink

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� CITY OF COLTON AGENDA REPORT For Council Meeting of April 17, 1990 T0: Honorable Mayor and City Council FROM: Jennifer Thornberry, Economic Development Director �� SUBJECT: Joint Public Hearing to Consider Acquisition and Date : April 13, 1990 Sale of Real Property to K Mart Corporation '• �1� Crnmencing last year with the approval of a Memorandum of Understanding between the Redevelognent Agency, K mart Corporation, and Colton LTD, the Agency began negotiations with the K mart Corporation to develop a K mart store in the Cooley Ranch Redevelognent Project. The reason for this joint public hearing is to consider for purposes of redevelopment the acquisition and disposition of certain real property within the project area. DISCUSSION: Attached please find a proposed Redeveloprnent Disposition and Develognent Agre�ment between the Agency and K mart Corporation and a Surrmary Report on the proposed acquisition and sale of real property by the Agency to K mart Corporation. In surrmary, the major points of the Agreernent are as follows: 1. K mart Corporation agrees to construct a new 105,000 square foot K mart store together with a garden shop and related parking and landscaping improvements. This store will be the first larger store built by K mart and is expected to provide $250,000 in sales t� revenue to tl�e City each year. 2. The Agency agrees to acquire a ten-acre site frnm Colton, Ltd. for a purchase price in the amount of $4.4 million and agrees to sell the site to K mart for a total swn of $3.6 million. The disposition of the site to K mart will be concurrent with the Agency's acquisition of the site and requires an $800,000 cash contribution by the Agency to K mart for the purchase of the property. 3. K mart Corporation agrees to continuously aperate and maintain, for a period of ten (10) years a K mart store or one of its retail subsidiaries. 4. K mart Corporation agrees that liquidated d�nages be paid to the Agency as a result of its failure to perfonn. Attachments:a. A Good Faith Deposit of $50, 000 provided by K mart to the Agency will be retained by the Agency if K mart fails to close escrow. Page 1 of� � 3 Item No.� �,�,,��....._a �� ,a� - '`.,,� _ _ � r, � r , -��,�-