CDC - Item 3B - Update on Status of Exclusive Negotiation Agreement for the Sale of the Glendon Hotel
E M
5
° 9 ° ROSEMEAD COMMUNITY
DEVELOPMENT COMMISSION
Op ORATED T9y0 STAFF REPORT
TO: THE HONORABLE CHAIRMAN AND COMMISSION MEMBERS
FROM: JEFF ALLRED, EXECUTIVE DIRECTOR /M
DATE: JULY 27, 2010
SUBJECT: UPDATE ON STATUS OF EXCLUSIVE NEGOTIATION AGREEMENT
(ENA) FOR THE SALE OF THE GLENDON HOTEL
SUMMARY
On May 25, 2010, the Rosemead Community Development Commission approved an
Exclusive Negotiating Agreement (ENA) with the Qiao Garden Group Real Estate
Company, Ltd. (Qiao Garden Group) for the development of a Purchase and Sale
Agreement of 8832 Glendon Way (Glendon Hotel). The term of the ENA provided an
initial negotiation period of 90 calendar days, subject to one (1) 90 calendar days
extension, within which the Commission and the Qiao Garden Group would work to
develop a Purchase and Sale Agreement setting forth the specific terms related to the
sale of the Glendon Hotel. The ENA is set to expire on August 22, 2010.
Staff Recommendation
It is recommended that the Community Development Commission extend the Exclusive
Negotiating Agreement (ENA) with Qiao Garden Group Real Estate Company, Ltd. for
the development of a Purchase and Sale Agreement of the Glendon Hotel for another
ninety (90) calendar days beginning from August 23, 2010 (see Attachment A).
ANALYSIS
Over the last few months, staff has diligently been working with the Qiao Garden Group
on the development of a Purchase and Sale Agreement for the Glendon Hotel. There
have been several requests made by both parties that need to be completed before an
agreeable Purchase and Sale Agreement can be entered. It is assumed that these
tasks will take longer than the 90 calendar days provided for in the initial ENA to
complete: Therefore, it is recommended that the Commission extent the ENA with the
Qiao Garden Group for another 90-calendar days to expire on November 20, 2010.
FISCAL ANALYSIS
The sale of the property would generate onetime revenues of $4.4 million for the
Commission. In addition, future property tax increment revenues will accrue to the
Commission and TOT revenues will be realized by the City.
ITEM NO.
APPROVED FOR CITY COUNCIL AGENDA:
Community Development Commission
July 27, 2010
Page 2 of 2
PUBLIC NOTICE PROCESS
This item has been noticed according to the California Health and Safety Code Section
33490.
Prepared by:
Lokka
Michelle G. Ramirez
Economic Development Administrator
Submitted by:
Stan Wong
Community Development Director
Attachment A: First Amendment to Exclusive Negotiation Agreement
FIRST AMENDMENT TO EXCLUSIVE NEGOTIATION AGREEMENT
This FIRST AMENDMENT TO EXCLUSIVE NEGOTIATION AGREEMENT ("First
Amendment") is made as of this 27`h day of July 2010, by and between the COMMUNITY
DEVELOPMENT COMMISSION OF THE CITY OF ROSEMEAD, a public body, corporate
and politic (the "Commission"), and QIAO GARDEN GROUP REAL ESTATE COMPANY,
LTD (the "Purchaser"), and amends that certain Exclusive Negotiation Agreement
("Agreement") entered into by and between the Commission and the Purchaser on May 25, 2010.
Section 1. Section 3.a. of the Agreement is hereby amended in its entirety to read as
follows:
"3. Negotiation Period.
a. Negotiation Period. The term of this Agreement shall extend through and include
November 20, 2010, subject to extension or termination as provided below (the "Negotiation
Period")."
Section 2. Except as expressly amended herein, all other terms and provisions of the
Agreement are and remain in full force and effect.
In witness whereof the parties have had their duly authorized officers execute this First
Amendment this 27`h day of July 2010.
PURCHASER:
QIAO GARDEN GROUP REAL ESTATE CO. LTD
By:
Lian Yue Song, President and CEO
COMMISSION:
ROSEMEAD COMMUNITY
DEVELOPMENT COMMISSION,
a public body corporate and politic
By:
Gary Taylor, Chairman
ENA - Qiao Garden Group Real Estate Co. Ltd 1 07272009
APPROVED AS TO FORM
By:
Joseph M. Montes
Burke, Williams & Sorensen, LLP
Commission General Counsel
ATTEST:
By:
Gloria Molleda, Commission Secretary
ENA- Qiao Garden Group Real Estate Co. Ltd 2 07272010