|At its August 27 meeting, the City Council entered into negotiations with Lewis Land Developers, LLC and Province Group, LLC for the sale and development of the city-owned 13-acre parcel at Katella Avenue and Winners Circle. The first step in the process, negotiation of an Exclusive Negotiating Agreement, is complete.
An Exclusive Negotiating Agreement (ENA) is an agreement between the city and a developer specifying a period of time in which the parties will negotiate exclusively on a project. The ENA binds the parties from making any similar agreements with other parties for a specified period. It demonstrates the developer has represented its willingness and ability to undertake certain studies, plans, and other activities necessary to define the scope of a development and determine the feasibility of development on a site. The ENA serves as the basis for entering into an agreement to convey/sell the property.
The contemplated project consists of approximately 105,000 square feet of commercial development including retail, restaurant, and luxury cinema uses, plus approximately 100 hotel rooms. The developer's concept plan is attached.
During the ENA, the developer will undertake due diligence activities to evaluate the project's feasibility, including: determining if the site is suitable for development; demonstrating the developer's financial capacity to successfully complete the project; refining the concept plan in collaboration with the Community Development department; and undertaking environmental and economic feasibility studies which will determine/confirm the price at which the developer is willing to purchase the property.
During the ENA period, it is anticipated the City Council and the developer will engage in additional negotiations regarding the terms under which the city would sell the parcel. However, the ENA does not bind either party to sell/buy the property.