Board adds condition requiring assignment and recording of repurchase option in Main Street sale

During discussion of the Main Street sale, board members expressed concern that the successor agency’s repurchase option would be worthless unless it could be assigned to the city and given public notice. County counsel and outside counsel explained the purchase agreement’s assignment provision and recommended preparing a separate assignment and recording a memorandum of the repurchase option so the right cannot be extinguished by an intervening sale.

Special counsel advised the board the purchase agreement includes assignment language. Kevin Teague told the board staff could prepare an assignment and "we can e easily work with the buyer to record a memorandum of repurchase option, kinda like you do on on leases on title." Patrick Enright (city attorney) said the city would accept assignment and could, if necessary, loan successor-agency funds to exercise the repurchase remedy in the future. The board’s motion required staff to prepare the assignment document and record notice; the motion passed 4-0.