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Wednesday, Oct. 18, 2006 | Regarding the article, “The Doug is Not the Problem,” the 1992 agreement for the Navy Broadway Complex is good for 25 years until the year 2017. In the event that no Developer Lease was recorded by Jan. 1, 2002, then the agreement was to be of no force and effect without amendments. In Section 4.5, it says the agreement may be amended from time to time or cancelled by mutual consent of the parties but only in the same manner as its adoption by ordinance. I believe only the City Council can pass an ordinance. The City Council passed two amendments/ordinances, the last in 2003 to change the force and effect date from Jan. 1, 2002 to Jan. 1, 2007. All the City Council has to do is pass a Third Amendment to the agreement to change the force and effect date to a later year. There is no hurry to make a decision about the project by Jan. 1, 2007, and Manchester cannot sue the city.
At any time, any portion of the property may be released from the agreement. Also, the Navy is not obligated by the agreement to redevelop any part of the Navy Broadway Complex or to enter into any Developer Lease.
Also, the Navy shall have the right to transfer or assign its rights under the agreement to the selected developers and the obligations and liabilities of the developers which are described in the agreement shall be assumed in writing by the developers. In the Indemnity and Insurance Section 4.6, the Navy shall include the city, the Redevelopment Agency of the city of San Diego and the Centre City Development Corporation, their officers, employees, contractors and agents, as protected parties and as additional insured in the indemnity and public liability insurance requirements of any Developer Lease. In the Third Parties Section 4.8, the contractual relationship between city and the Navy arising out of the agreement does not create any third party beneficiary rights. Therefore, the developer (Manchester) cannot sue. There is no contract between the city of San Diego and Manchester.
Also, the property is 13.67 acres in three parcels separated by E and F Streets. These streets currently belong to the city of San Diego, not the Navy.