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MINUTES OF THE
CITY OF SAN RAMON – REDEVELOPMENT AGENCY
December 11, 2012

A regular meeting of the Successor Agency of the City of San Ramon was held on December 11, 2012 at 4:33 p.m. in the City Council Chamber at City Hall, 2222 Camino Ramon, Chair Clarkson presiding. 
PRESENT:  Agency Members Livingstone (late), O’Loane, Perkins, Vice Chair Hudson, and Chair Clarkson.
STAFF PRESENT:  City Manager Greg Rogers, Interim City Attorney Bob Saxe, Economic Development Director Marc Fontes, and Agency Secretary Patricia Edwards.

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PLEDGE OF ALLEGIANCE

Roz Rogoff led those present in the pledge of allegiance.

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ANNOUNCEMENTS

The Agency Secretary noted that there were no changes to the agenda. 

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PUBLIC COMMENT

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APPROVAL OF MINUTES

(#5.1) Minutes of the October 23, 2012 regular meeting.

Mbr. Perkins’ motion to adopt the October 23, 2012 regular Successor Agency minutes was seconded by Vice Chair Hudson and passed 3-0-1-1.  Mbr. Livingstone was absent and Mbr. O’Loane abstained.

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CONSENT CALENDAR

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UNFINISHED BUSINESS

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NEW BUSINESS

(#8.1) Resolution No. SA 2012-011 – Directing the Successor Agency’s Executive Director to Serve a Written Demand on the Developer Pertaining to the Disposition and Development Agreement for the Mudd's Property.

The staff report was presented by Marc Fontes, Economic Development Director.  He reviewed the history of the discussions with Mr. Michael LeBlanc concerning potential redevelopment of the Mudd's Property.  On February 24, 2011, the Redevelopment Agency entered into a Disposition and Development Agreement (DDA) with Mr. LeBlanc.  The DDA required Mr. LeBlanc to submit satisfactory evidence of financing for the proposed project by February 28, 2012.  On February 24, 2012, Mr. LeBlanc sent a letter to the Redevelopment Agency requesting a 90-day extension of time for submitting the required evidence of project financing, representing that he would have a financing agreement "finalized shortly." 

On March 27, 2012, the Successor Agency (SA) adopted Resolution SA 2012-004 referring the extension request to the OB for its consideration.  The DDA provides that failure to submit satisfactory evidence of financing in a timely manner constitutes a default, allowing the Successor Agency to terminate the DDA if the default is not cured within thirty (30) days after the date of a written demand by the SA.  Failure to cure the default gives the SA the right to terminate the DDA in its entirety.  On December 3, 2012, the Oversight Board adopted resolution OB No. 2012-008 giving direction to the SA to serve a written demand on the Developer to cure his default resulting from failure to submit evidence of financing for the proposed project as required by the DDA.

Mbr. Perkins asked if the purpose of this resolution is to clear the issue regarding the DDA.  Mr. Fontes responded that Mr. LeBlanc must either respond or cure the default.

Chair Clarkson opened public comment.

Roz Rogoff, resident, stated that the OB resolution allowed the SA the possibility to provide a second 30 day extension to cure the Demand letter.  She requested that the SA remove this provision and provide a 30 day demand period.  Chair Clarkson asked why the OB included this language.  Interim City Attorney Bob Saxe stated he was not sure why the language was included.  The 30 additional days may have been provided to accommodate unexpected issues.  He noted that the SA is bound by the direction of the OB to provide the 30 day notice.  An additional 30 days could be provided at the discretion of the SA.  Mbr. Perkins stated that the OB may have included the second 30 days as it may be difficult for the developer to make financial arrangements during the holiday period.  Chair Clarkson reviewed the procedures for dealing with the DDA after the Redevelopment Agency was eliminated by the state.  He asked if the demand letter provides an expectation that the SA has the authority to sell the property.  Mr. Saxe clarified that the extension request from Mr. LeBlanc came when the Redevelopment Agency was defunct.  The SA was unable to take action until directed by the OB.  The 30 day notice is provided under the DDA and does not create any new rights.  Chair Clarkson asked if the SA is protected if Mr. LeBlanc secures financing to complete the transaction and the state declines approval of the sale.  Mr. Saxe stated that the DDA is a valid contractual obligation.  The SA is carrying out its responsibility under the DDA.  There is no indication that adoption of the Redevelopment Dissolution Law by the state terminates Mr. LeBlanc’s DDA.  Mbr. O’Loane stated his support for the OB’s advice to provide the additional 30 days.  Mbr. Perkins stated that if the SA pursues a different tact, the OB would have to review the SA’s proposed letter and this would delay action on the issue into 2013.  He suggested that the SA deal with Mr. LeBlanc’s response when it is received.

Mbr. Perkins’ motion to adopt Resolution No. SA 2012-011 was seconded by Vice Chair Hudson and passed 5-0.

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PUBLIC COMMENT

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ADJOURNMENT

At 4:46 p.m., there being no further business, Chair Clarkson adjourned the meeting.


Bill Clarkson, Chair
Patricia Edwards, Agency Secretary

Approved at the January 8, 2013 Successor Agency meeting 5-0.

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