Legislation Details

File #: HIST-13086    Version: 1 Subject:
Type: Historical Status: Action Item
In control: HISTORICAL - REDEVELOPMENT
On agenda: 12/14/2009 Final action: 12/14/2009
Title: REDEVELOPMENT AGENCY BOARD AGENDA ITEM: Consideration to Adopt a Resolution that Terminates the Disposition and Development Agreement with Rush Pacifica LLC for 9300 Culver Boulevard; Consideration to Approve a Notice of Termination of the Disposition and Development Agreement with Rush Pacifica LLC for 9300 Culver Boulevard; and Consideration to Terminate the Infrastructure Improvement Agreement with Rush Pacifica Inc. for Construction of the Town Plaza Expansion.
Attachments: 1. REDEVELOPMENT AGENCY BOARD AGENDA ITEM: Considera - A-1__09_12-14__CDD__REDEVELOPMENT AGENCY__Termination of DDA with Rush Pacifica - COLE FINAL.doc, 2. REDEVELOPMENT AGENCY BOARD AGENDA ITEM: Considera - 09-12-14 CDD RDA Termination of DDA with Rush Pacifica Attachments.pdf
City of Culver City, California Agenda Item Report Meeting Date: 12/14/2009 Item Number: A-1 REDEVELOPMENT AGENCY BOARD AGENDA ITEM: (1) Adoption of a Resolution Making Certain Findings and Determinations and Authorizing the Execution and Delivery of a Notice of Termination Terminating the Disposition and Development Agreement with Rush Pacifica LLC for 9300 Culver Boulevard and (2) Termination of the Infrastructure Improvement Agreement with Rush Pacifica Inc. for Construction of the Town Plaza Expansion. Contact Person/Dept.: Joe Susca/ Redevelopment Phone Number: 310-253-5763 Fiscal Impact: Yes [] No [X] General Fund: Yes [] No [X] Public Hearing: [] Action Item: [X] Attachments: [X] Commission Action Required: Yes [] No [X] Date: _______________ Public Notification: (E-Mail) Meetings and Agendas – Redevelopment Agency (12/08/09), (Fed-Ex) Rush Pacifica LLC (12/08/09); (E-Mail) Downtown Business Association (12/09/09). Department Approval: Sol Blumenfeld (12/08/09) Agency General Counsel Approval: Murray Kane (12/08/09) Chief Financial Officer Approval: Mark Scott (by Martin Cole) (12/08/09) Executive Director Approval: Mark Scott (12/08/09) RECOMMENDATION: Staff recommends that the Redevelopment Agency Board (Board) (1) adopt a resolution making certain findings and determinations and authorizing the execution and delivery of a Notice of Termination terminating the Disposition and Development Agreement (the “DDA”) by and between the Culver City Redevelopment Agency (Agency) and Rush Pacifica LLC (RPLLC) for the sale of 9300 Culver Boulevard and (2) terminate the Infrastructure Improvement Agreement with Rush Pacifica Incorporated (RPI) for construction of the Town Plaza Expansion in Downtown. BACKGROUND: On July 10, 2006 the Board approved the DDA with RPLLC to sell the 9300 Culver Boulevard parcel (a surface parking lot Downtown commonly referred to as “Parcel B”) from the Agency to RPLLC. Simultaneously, the Board also approved an Infrastructure Improvement Agreement (the “IIA”) with RPI whereby RPI agreed to design and then construct the realignment of Washington Boulevard in Downtown (now completed) and to subsequently build Town Plaza’s expansion on behalf of the Agency concurrently with construction of the Parcel B building. DISCUSSION: City of Culver City, California Agenda Item Report On June 1, 2009 the Board directed staff to place RPLLC on notice of several defaults of the DDA with a subsequent 30-day right to cure period as stipulated in the DDA. RPLLC failed to cure any of the defaults within the 30 day period and responded to the Agency by letter on July 6, 2009. The Agency subsequently replied by letter to RPLLC on August 18, 2009 (see all letters attached). It is for these DDA defaults and the other findings and determinations found in the proposed resolution that staff recommends the Agency adopt said resolution terminating the DDA and authorizing the execution and delivery of a Notice of Termination to RPLLC. Further, it is recommended the Board adopt a motion authorizing the Executive Director to execute and deliver a Notice of Termination to RPI terminating the IIA. FISCAL ANALYSIS: If the project were built by RPLLC, the Agency would have received $5,938,686 for the land sale. Staff also estimates that the project would have generated Tax Increment receipts (projected to be $424,000 in year 1 with 2% annual growth thereafter), City building permit fees (approximately $1,000,000 in one-time permit fees), and other City tax revenues (i.e. Sales Tax, Business Tax and Utility Users Tax totaling approximately $265,000 annually). ATTACHMENTS: • June 4, 2009 Agency Notice of Default Letter to the Developer • July 6, 2009 Developer Letter of Reply to the Notice of Default • August 18, 2009 Agency Letter of Response to the Developer Reply • December 8, 2009 Agency Letter of Notice to Developer Regarding Consideration to Terminate of the DDA and IIA on December 14, 2009. • December 15, 2009 Agency Notice of Termination Letter to Developer of the DDA • December 15, 2009 Agency Notice of Termination Letter to Developer of the IIA • Agency Resolution No. 2009-A_____ MOTION: That the Redevelopment Agency Board: 1. Adopt a Resolution making certain findings and determinations and authorizing the Executive Director to execute and deliver a Notice of Termination terminating the Disposition and Development Agreement by and between the Culver City Redevelopment Agency and Rush Pacifica LLC; and, City of Culver City, California Agenda Item Report 2. By motion, direct the Executive Director to execute and deliver a Notice of Termination to Rush Pacifica Incorporated (acting under the authority of Rush Pacifica LLC) terminating the Infrastructure Improvement Agreement. MEETING DATE: 12/14/09 AGENDA ITEM: REDEVELOPMENT AGENCY BOARD AGENDA ITEM: Consideration to Adopt a Resolution that Terminates the Disposition and Development Agreement with Rush Pacifica LLC for 9300 Culver Boulevard; Consideration to Approve a Notice of Termination of the Disposition and Development Agreement with Rush Pacifica LLC for 9300 Culver Boulevard; and Consideration to Terminate the Infrastructure Improvement Agreement with Rush Pacifica LLC for Construction of the Town Plaza Expansion. ATTACHMENTS Item Pages 1 2 3 4 5 6 7 June 4, 2009 Agency Notice of Default Letter to the Developer July 6, 2009 Developer Letter of Reply to the Notice of Default August 18, 2009 Agency Letter of Response to the Developer Reply December 8, 2009 Agency Letter of Notice to Developer Regarding Consideration to Terminate of the DDA and IIA on December 14, 2009. December 15, 2009 Agency Notice of Termination Letter to Developer of the DDA December 15, 2009 Agency Notice of Termination Letter to Developer of the IIA Agency Resolution No. 2009-A___ Terminating the DDA 1-3 4-8 9-19 20-21 22-23 24-25 26-28  ATTACHMENT 1 1ATTACHMENT 1 2ATTACHMENT 1 3 July 6, 2009 Via Overnight Courier and Email Culver City Redevelopment Agency Attn: Sol Blumenfeld, Assistant Executive Director 9770 Culver Boulevard Culver City CA 90232-0507 Via Overnight Courier and Email The City of Culver City Attn: Mark Scott, City Manager 9770 Culver Boulevard Culver City CA 90232-0507 Re: Culver Studios Plaza Mr. Blumenfeld and Mr. Scott: We are in receipt of your June 4 th letter (received by us on June 10 th ) that purports to claim that Developer is in default under the DDA and that a 30-day cure period has commenced. All initial- capitalized terms in this letter shall have the same meaning as set forth in the DDA. This letter is a preliminary response on behalf of the Developer, Rush Pacifica LLC, and The Plaza at Culver Studios LLC, to your June 4 th letter. We reserve the right to supplement this letter as we deem appropriate. Your letter also purports to list several areas in which Developer defaulted under the DDA. First, you claim that “Developer failed to submit its Evidence of Financing by March 5, 2008, as required by the Schedule of Performance.” As you are aware, this assertion is baseless and has no relation to the reality faced by both the Agency and Developer as time has passed. As the project evolved and the parties mutually cooperated, the actions of the Agency and the City waived the time limit. The following timeline might be of assistance in this regard: October 26, 2004 Developer and Agency signed their Exclusive Negotiation Agreement. December 2004 Developer engaged Gensler Architects to design the project, as Agency did not like the original design proposed prior to Developer selection. July 2005 City decided to move forward with the process of closing Washington Boulevard, which contributed significantly to the ATTACHMENT 2 4Culver City Redevelopment Agency The City of Culver City July 6, 2009 Page 2 delay in the signing of the DDA. This added 14 months to the original schedule. November 8, 2005 Developer received first draft of the DDA from the City’s attorney. February 2006 Developer and Agency agreed on the price of Parcel B following 19 months of negotiations. February 24, 2006 Developer agreed to cause an affiliate to supervise all construction management for the Town Plaza public works project without remuneration as an accommodation to the Agency and City. April 17, 2006 At Agency’s request, Developer agreed to hire Christine Deshaine of Lee Associates to handle retail leasing. February-to-October 2006 Developer continued pre-leasing activity and presented several retail and restaurant tenants to Agency. Agency rejected the majority of prospective tenants because, although creditworthy, they were not sufficiently unique and boutique to satisfy the subjective tastes of Agency personnel. October 16, 2006 Developer and Agency finally signed DDA, two full years after the ENA was signed. The last four months were dedicated to negotiating the Infrastructure Improvement Agreement (Town Plaza public works agreement), which arose due to Developer’s acquiescence to the Agency’s request for Developer to oversee the public works project. November 17, 2006 Developer submitted preliminary drawings for review. December 20, 2006 City/Agency approved preliminary design. January 15, 2007 Developer submitted schematic drawings. February 7, 2007 In a meeting with the Agency and its sub-committee, the Agency rejected the revised exterior architectural detailing and colors, in spite of the fact that the Agency had previously approved the design. March 26, 2007 After working with City/Agency staff and obtaining staff’s preliminary approval, Developer re-submitted exterior redesign. April 3, 2007 City notified Developer that it again rejected exterior color and asked for additional architectural changes to the exterior. City also notified Developer that the City Manager had determined that a formal approval by the Agency with public input was required. July 11, 2007 City Council approved project design drawings nearly eight months after Developer submitted its preliminary drawings and ATTACHMENT 2 5Culver City Redevelopment Agency The City of Culver City July 6, 2009 Page 3 six months after submitting schematic drawings. The DDA Schedule of Performance requirements were ignored as the City had second thoughts about having initially approved Developer’s design. July 25, 2007 Parties signed 2 nd Amendment to DDA, extending the closing date to 4/21/08. August 28, 2007 Agency rejected Vitamin Shoppe as potential tenants. This was but one of several rejections of prospective tenants by Agency. October 4, 2007 Resubmitted revised design development drawings to Agency. October 30, 2007 Agency approved revised drawings with staff comments. February 6, 2008 Developer timely submitted construction plans to Agency/City for permit approval as required by the revised schedule. May 30, 2008 Final Plan Check documents delivered to City. June 25, 2008 City approved plans for permit issuance. Process took 4½ months involving extensive plan check delays from the City. September 2008 Lehman Brothers (controlling partner of Culver Studios and a joint venture partner with Developer) withdrew as joint venture partner in early September and declared bankruptcy on September 15 th . November 2008 PCCP (minor partner in Culver Studios) notified Developer that Culver Studios would not fulfill the Lease it had signed for the entire 3 rd floor. In spite of this, Developer continued to work with its lenders by agreeing to a much lower loan in order to move forward with the project. February 2009 Room & Board, Inc. withdrew as a tenant of approx. 39,614 sf. As this timeline demonstrates, Developer was repeatedly delayed in moving forward with the project due to the actions, delays, and inactions of the City and Agency. Time and again, the project was delayed due to the City and Agency to the point that Developer found itself subject to an entirely new reality caused by the economic meltdown that was in full swing by late summer 2008. The impact of this reality is that, since late 2008, construction and permanent financing was no longer available, other than those with onerous terms that likely would have resulted in a foreclosed project. The pool of prospective tenants for Parcel B dried up, which underscored the regrettable and repeated rejections of numerous tenants by the Agency over the past two years on grounds that were arbitrary and meaningless. This negative environment was made worse by the ever-increasing supply of cheap office and retail space in the west Los Angeles/Culver City market. This made it even more unrealistic to lease space at sensible rents to any tenant that would justify the cost to complete the proposed Parcel B project, let alone at the rents that the Agency might deem to approve on any given date. ATTACHMENT 2 6Culver City Redevelopment Agency The City of Culver City July 6, 2009 Page 4 The City and Agency were fully aware of these and other challenges, yet now they are arguing that Developer unduly delayed the project. This is difficult to understand in light of the City’s and Agency’s knowledge of Developer’s ongoing expenditure of funds and demonstration of its commitment to complete the project. Moreover, both the City and Agency knew that Developer repeatedly undertook to ensure the success of the project and even agreed to undertake construction oversight duties for the public works project to facilitate the request of the Agency. It is difficult to see how the City and Agency could make this first claim in good faith in light of their actual knowledge of the facts. Second, you claim that Developer “failed to meet the Agency’s Conditions Precedent to Closing and accept conveyance of the Property by the Outside Closing Date, which was 4/28/08”. As the City and Agency are fully aware, this date was impossible to meet since the plans were not approved by the City until May 25, 2008. The City and Agency waived this date and continued thereafter to cooperate with Developer to move the project forward. With complete disclosure and cooperation, Developer placed its steel order on May 15, 2008 for $4,104,170. While Developer offered to close the land purchase on multiple occasions, it could not close the construction loan and commence construction without a complete set of construction drawings and 80% pre-leasing. Agency delays, commencing in December 2006 when it questioned the pre-approved building design and exterior architecture, are significant contributors to the delays. With few exceptions, the Agency approval process took considerably longer than outlined in the DDA’s Schedule of Performance. As stated above, it was unrealistic and impossible for Developer to meet the May 25 th deadline, and the City and Agency fully waived compliance with it. Third, you claim that Developer committed a default by failing to commence construction by May 6, 2008. Even after that date however, notwithstanding significant delays, the loss of the two main tenants and a market meltdown (all of which were beyond Developer’s control), Developer, Agency and Agency’s outside counsel continued to work in good faith to finalize the 3rd Amendment to the DDA well into early 2009. This can hardly be deemed a default when all parties were aware that Developer could not be held to this deadline. In February 2009, the Agency requested a meeting to discuss the future of Parcel B. It was clear that the market conditions and leasing market had deteriorated significantly and continued cooperation was essential. Over the next couple of months, the Agency took the liberty of holding meetings with Developer’s leasing agents to determine if there were tenants willing to commit to lease sufficient space and at rents to satisfy the bank’s pre-leasing requirements. For these and the above reasons, Developer rejects this third claim of default. Fourth, you claim that the letter of credit ("LOC") provided by Developer expired in contravention of DDA § 301.2. In March, the Agency asked for a proposal from Developer for a revised Schedule of Performance and details as to the leasing program. The City and Agency were aware that the LOC was payable to Rush Pacifica LLC, not the Agency, and therefore the LOC served no purpose whatsoever ATTACHMENT 2 7Culver City Redevelopment Agency The City of Culver City July 6, 2009 Page 5 other than to show good faith and Developer’s financial abilities. The LOC cost Developer the bank fees to acquire or renew. Its presence or absence did nothing to enhance the Agency’s position. The only conceivable purpose of the LOC was to demonstrate that Developer was willing to throw away its funds without any project or political benefit. What would possibly be the point and what form of public scrutiny would argue in its favor? Developer’s expenditures and financial condition clearly indicate its wherewithal and ability to perform to make this project succeed. The Agency and City consistently failed to meet their own schedule requirements, not the least effect of which is the excessive time lost after each of the submissions of concept, schematic, design documents and construction documents. Developer believes that without the Agency’s delays, the project could very well have been in construction 18 months to two years earlier and well before the economic collapse. On May 10, 2009, Developer requested additional time to (1) allow the market to recover to avoid costly redesign of the building plans in reaction to falling market lease rates and conditions, (2) continue a pre-leasing effort, (3) explore all options with the Agency and its contractors to reduce the cost of the building, (4) look for any other reasonable options that may make sense for both parties, and (5) preserve the time and money invested over the past 4½ years. Developer has invested nearly $1,300,000 in the building design alone. Developer has incurred nearly $4,000,000 in total project expenses to date. The City’s and Agency’s June 4 th letter ignores their responsibilities and would result in Developer’s loss of its investment and future profits, a result that Developer will not permit to happen. Developer would prefer not to argue about its rights under the law and DDA, but it will not hesitate to enforce those rights if the City and Agency leave it with no other choice. Rest assured that Developer stands ready, willing and able to pursue this project with the cooperation of the City and Agency and it expects your cooperation as requested in our May 10, 2009 letter. Sincerely, Evan Mead Stone cc: Leibold, McClendon & Mann, PC Attn: Barbara Zeid Leibold, Esq. Attn: Joy Heuser Otsuki, Esq. 23422 Mill Creek Drive, Suite 105 Laguna Hills CA 92653 Joe Susca / Agency ATTACHMENT 3 9ATTACHMENT 3 10ATTACHMENT 3 11ATTACHMENT 3 12ATTACHMENT 3 13ATTACHMENT 3 14ATTACHMENT 3 15ATTACHMENT 3 16ATTACHMENT 3 17ATTACHMENT 3 18ATTACHMENT 3 19ATTACHMENT 3 20ATTACHMENT 4 21ATTACHMENT 4 22To be considered by Agency Board December 14, 2009 December 15, 2009 Via Email and FedEx Dr. Jeffrey L. Rush Rush Pacifica, LLC 12348 High Bluff Drive, Suite 100 San Diego, CA 92130 Evan Stone, Esq. Pacific Medical Buildings, L.P. 12348 High Bluff Drive, Suite 100 San Diego, CA 92130 Re: NOTICE OF TERMINATION: Disposition and Development Agreement (9300 Culver Blvd.) Gentlemen: Reference is made to that certain Disposition and Development Agreement (9300 Culver Blvd.), dated for identification purposes only as of October 16, 2006, by and between the Culver City Redevelopment Agency, a public body, corporate and politic (the “Agency”), and Rush Pacifica, LLC, a California limited liability company (the “Developer”), as amended by Amendment Nos. 1 and 2 thereto (collectively, the “DDA”). Capitalized terms used but not defined in this letter shall have the meaning given in the DDA. In a letter dated June 4, 2009, the Agency notified you of your default(s) under the DDA (the “Default Letter”). In accordance with Section 701 of the DDA, a 30-day right-to-cure period commenced upon your receipt of that letter. No cure has been tendered to date, resulting in an Event of Default under the DDA. Further, the Default Letter notified you that, pursuant to Section 704 of the DDA, the Agency has additional rights to terminate the DDA as set forth therein. ATTACHMENT 5 23Rush Pacifica, LLC December 15, 2009 Page 2 of 2 At its meeting at 7:00 pm on December 14, 2009, the Agency Board voted to terminate the DDA. This letter acts as Notice to the Developer of Termination of the DDA by the Agency pursuant to Section 701 of the DDA. From this date forward, the DDA is hereby terminated. If you have any questions, you may contact the undersigned. Sincerely, CULVER CITY REDEVELOPMENT AGENCY, a public body, corporate and politic DRAFT By: Sol Blumenfeld Its: Assistant Executive Director cc: Mark Scott, Executive Director Todd Tipton, Redevelopment Administrator Joe Susca, Redevelopment Project Manager Murray O. Kane, Esq., Kane Ballmer & Berkman Greg Nelson, Senior Vice President, Pacific Medical Buildings Barbara Zeid Leibold, Esq., Leibold, McClendon and Mann Joy Heuser Otsuki, Esq., Leibold, McClendon and Mann ATTACHMENT 5 24To be considered by Agency Board December 14, 2009 December 15, 2009 Via Email and FedEx Dr. Jeffrey L. Rush, President Rush Pacifica, Inc. 12348 High Bluff Drive, Suite 100 San Diego, California 92130 Evan Stone, Esq. Pacific Medical Buildings, L.P. 12348 High Bluff Drive, Suite 100 San Diego, CA 92130 Re: NOTICE OF TERMINATION: Infrastructure Improvement Agreement Gentlemen: The Culver City Redevelopment Agency, a public body, corporate and politic (the “Agency”) and Rush Pacifica Inc., a California corporation (the “Developer”) have previously entered into that certain Infrastructure Improvement Agreement (the “Agreement”) dated for identification purposes as of October 16, 2006. All capitalized terms not defined herein shall have the meaning set forth in the Agreement. Pursuant to Section 6.10 of the Agreement, the Agreement may be terminated for convenience in accordance with Section 9.1 of the Construction Manager Obligations. Section 9.1.2 of the Construction Manager Obligations states that the Agency may, at any time, for any reason and upon thirty days’ (30 days’) written notice, terminate the Agreement. At its meeting at 7:00 pm on December 14, 2009, the Agency Board voted to terminate the Agreement. This letter acts as Notice to the Developer of Termination of the Agreement by ATTACHMENT 6 25Rush Pacifica, LLC December 15, 2009 Page 2 of 2 the Agency pursuant to Section 6.10 of the Agreement. From such date as is 30 days from your receipt of this letter, the Agreement is hereby terminated. If you have any questions, you may contact the undersigned. Sincerely, CULVER CITY REDEVELOPMENT AGENCY, a public body, corporate and politic DRAFT By: Sol Blumenfeld Its: Assistant Executive Director cc: Mark Scott, Executive Director Todd Tipton, Redevelopment Administrator Joe Susca, Redevelopment Project Manager Murray O. Kane, Esq., Kane Ballmer & Berkman Greg Nelson, Senior Vice President, Pacific Medical Buildings Barbara Zeid Leibold, Esq., Leibold, McClendon and Mann Joy Heuser Otsuki, Esq., Leibold, McClendon and Mann ATTACHMENT 6 261 CULVER CITY REDEVELOPMENT AGENCY RESOLUTION NO._______ A RESOLUTION OF THE CULVER CITY REDEVELOPMENT AGENCY, MAKING CERTAIN FINDINGS AND DETERMINATIONS REGARDING THE TERMINATION OF THE DISPOSITION AND DEVELOPMENT AGREEMENT (“DDA”) WITH RUSH PACIFICA, LLC (the “Developer”) PERTAINING TO THE SALE OF 9300 CULVER BOULEVARD WHEREAS, the California Community Redevelopment Law (California Health & Safety Code sections 33000 et seq.)(the “CRL”) vests the Culver City Redevelopment Agency with powers to implement the Redevelopment Plan (“Redevelopment Plan”) for the Culver City Redevelopment Project Area (the “Project Area”), approved and adopted by the City Council of the City of Culver City on November 23, 1998 by Ordinance No. 98-015 and amended on January 12, 2004; and WHEREAS, Section 33437 of the CRL requires the Agency to obligate purchasers of property acquired in the Project Area to begin the redevelopment within a period of time which the Agency fixes as reasonable; and WHEREAS, the Agency is the owner of that certain real property with legal address of 9300 Culver Boulevard, in the City of Culver City, California (“Property”); and WHEREAS, the Property is located within the Project Area; and WHEREAS, the Agency and Rush Pacifica, LLC, a California limited liability company (“Developer”) entered into that certain Disposition and Development Agreement, dated for referenced purposes as October 16, 2006, and thereafter amended by Amendment Nos. 1 and 2 (collectively, the DDA”); and WHEREAS, the DDA contemplates sale of the Property to the Developer and the redevelopment of the Property within a specific time, as agreed to by the Agency and Developer in the DDA; and WHEREAS, Section 701 of the DDA authorizes the Agency to terminate the DDA, based upon Developer’s default of any terms and conditions in the DDA (“Default”), subject to Agency’s advance notice of the Default (“Notice of Default”) to Developer and Developer’s right to cure such Default within thirty (30) days of the notice (“Cure Period”); and WHEREAS, Section 704 of the DDA further provides that the Agency has the right to terminate the DDA as a result of Developer’s failure to cure a Default during the Cure Period and under certain other circumstances as described therein; and ATTACHMENT 7 272 WHEREAS, the Agency provided Developer with a Notice of Default, dated June 4, 2009, based upon certain events and circumstances of Default more particularly described in the Notice of Default, which is available as a public record in the offices of the Agency at 9770 Culver Boulevard, in the City of Culver City, California, and which is incorporated into this Resolution by this reference as though fully set forth herein; and WHEREAS, Developer has failed to cure said events and circumstances of Default described in the Notice of Default within the Cure Period, resulting in an Event of Default as described in Section 701 of the DDA; and WHEREAS, to facilitate the redevelopment of the Property and fulfill the Agency’s duties under the CRL, the Agency now seeks to utilize the termination provisions of the DDA to fulfill its obligations pertaining to the Redevelopment Plan; and WHEREAS, Agency has reviewed and considered a draft notice of termination for the Agency’s termination of the DDA (“Notice of Termination”); NOW, THEREFORE, the Culver City Redevelopment Agency, hereby resolves as follows: 1. The Agency hereby finds and determines that all recitals set forth in this resolution are true and correct and incorporated herein in full by this reference. 2. The Agency hereby finds and determines, based upon (i) the facts and circumstances presented in the Notice of Default and (ii) Developer’s failure to cure said Default that the conditions for termination of the DDA have been satisfied and termination is necessary and warranted to ensure the Agency’s ability to fulfill its duties under the CRL. 3. The Executive Director, or designee, is authorized to execute and deliver the Notice of Termination on behalf of the Agency to Rush Pacifica LLC, forthwith. ATTACHMENT 7 283 PASSED AND ADOPTED THIS ________________ DAY OF ______________, 2009, BY THE FOLLOWING VOTE: AYES: NOES: ABSENT: ABSTAIN: CULVER CITY REDEVELOPMENT AGENCY _______________________________ ATTEST: _______________________________ Agency Secretary APPROVED AS TO FORM: KANE BALLMER & BERKMAN _________________________________ Murray O. Kane, General Counsel to the Agency ATTACHMENT 7 29