Report Prepared by: Joe Cardoso, P.L.S., Land Engineer
Title
SUBJECT: Terminate a Portion of the Deferment of Construction Agreement with Spalding G. Wathen and Della Wathen
REPORT IN BRIEF
Consider terminating the Deferment of Construction Agreement as it relates to the storm drain basin property at Mansionette Drive and Yosemite Avenue.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving the Partial Termination of Agreement (Deferment of Construction) with the executors of the Estate of Della Wathen and the Spalding G. Wathen Q-Tip Trust; and,
B. Authorizing the City Manager or Assistant City Manager to execute all related documents.
Body
ALTERNATIVES
1. Approve, as recommended by staff; or,
2. Approve, subject to conditions other than recommended by staff (identify specific findings and/or conditions amended to be addressed in the motion); or,
3. Deny; or,
4. Refer to staff for reconsideration of specific items (specific items to be addressed in the motion); or,
5. Continue to a future meeting (date and time to be specified in the motion).
AUTHORITY
Charter of the City of Merced, Section 200.
CITY COUNCIL PRIORITIES
As provided for in the 2017-18 Adopted Budget.
DISCUSSION
History and Past Actions:
On December 1, 1989, the County of Merced and Spalding G. and Della Wathen entered into a Deferment of Construction Agreement (attachment # 2) for their property on G Street between Yosemite Avenue and Cardella Road (Attachment # 3).
On August 20, 1990, the City of Merced (City) approved the Yosemite Annexation No. 4, which included this property. As stated in the Deferment of Construction Agreement, “Upon annexation to any city, Owner agrees to fulfill all the terms of this agreement upon demand by such City as though Owner has contracted with such City originally. Any annexing City shall have all the rights of a third party beneficiary. “
Description:
As part of Development Agreement between the City and Della Wathen and Della Wathen as Trustee of the Spalding G. Wathen Q-Tip Trust recorded on January 25, 2012, Wathen requested to reconfigure their Planned Development Project and move the existing storm drain basin located on G Street north of Yosemite Avenue to a new location on Mansionette Drive north of Yosemite Avenue, adjacent to the previously planned Police Station Site (attachment # 4). With the completion of the storm drain basin, Wathen is required to dedicate the basin to the City for public use.
Wathen has requested to grant the basin in fee instead of as a dedication. Staff does not oppose this request; however, as with all grants in fee we need to ensure the City is receiving the property clear and free of any and all encumbrances. After reviewing the title report, the Agreement for Deferment of Construction affects the basin property title.
Therefore to clear title and accept the storm drain basin property granted in fee, staff is requesting Council approve the Partial Termination of Agreement (Deferment of Construction).
IMPACT ON CITY RESOURCES
No appropriation of funds is needed.
ATTACHMENTS
1. Termination of Agreement
2. Deferment Agreement
3. Plat Map
4. Portion of Developer Agreement Doc. 2012-002753, M.C.R.