City Council

9. EXTENSION AND AMENDMENT OF EXCLUSIVE NEGOTIATING\nAGREEMENT WITH CD-MS (TUSTIN) LLC FOR A PORTION OF\nTUSTIN LEGACY DISPOSITION AREA 8B Request for approval of an\nextension of the Exclusive Negotiating Agreement with CD-MS (Tustin)\nLLC to continue the negotiating period for the disposition and\ndevelopment of a portion of Disposition Area 8B at Tustin Legacy for an\nadditional 270 days.\nRecommendation: It is recommended that the City Council take the\nfollowing actions: 1. Approve an extension of the Exclusive Negotiating\nAgreement for an additional period of 270 days in accordance with\nSection 4.2 of the Exclusive Negotiating Agreement, as amended. 2.\nAuthorize the City Manager to execute an amendment to the Exclusive\nNegotiating Agreement reflecting the 270-day extension request submitted\nby CD-MS (Tustin) LLC subject to non-substantive additions or\nmodifications as may be deemed necessary and/or recommended by the\nCity's special real estate counsel or the City Attorney prior to the end of\nthe Exclusive Negotiating Agreement Negotiating Period. Fiscal Impact:\nPursuant to the terms of the Exclusive Negotiating Agreement, all\nExclusive Negotiating Agreement extensions requiring City Council\napproval require a $100,000 non-refundable deposit. Pursuant to the\nExclusive Negotiating Agreement, the City retains this deposit if the\nDisposition and Development Agreement is not executed, or if the\nDisposition and Development Agreement is executed but close of escrow\ndoes not occur. If the Disposition and Development Agreement is\nexecuted and close of escrow occurs, the deposit (without interest\naccrued) is applicable to the purchase price. Prior Exclusive Negotiating\nAgreement extension deposits have been waived; however, CD-MS\n (Tustin) LLC has committed to providing the required extension deposit for\nthis Exclusive Negotiating Agreement extension request. CD-MS (Tustin)\nLLC also has a deposit account with the City that will continue to fund the\nCity transaction expenses incurred by staff and third-party consultants\nincluding the retention of legal counsel associated with the negotiation\nand drafting of the Transaction Documents.