Exclusive Right to Negotiate Agreement (ERNA) | Roseville City Council and Panattoni Development Corporation
City of Roseville – Council Communication Meeting Date: 11/18/2020
City Council adopted a resolution authorizing the City Manager to execute the Exclusive Right to Negotiate Agreement (ERNA) with Panattoni Development Corporation (aka PDC Sacramento LPIV, LLC) for purchase and development of the property at 6328 Phillip Road in Roseville, CA.
Exclusive Right to Negotiate Agreement (ERNA) | Roseville City Council and Panattoni Development Corporation
The purpose of an Exclusive Right to Negotiate Agreement (ERNA) is to provide a period of time in which the two parties can work toward developing a project that is mutually satisfactory. The ERNA prohibits both parties from entering into negotiations with another party for the same potential project during the period of time that the ERNA is in place. The key points of the agreement are summarized below:
- City agrees to sell to Developer approximately one hundred and eighty-three (183) acres of the two hundred and thirty-seven (237) acre Property at the appraised market rate value.
- City agrees that Developer may acquire the Property in phases. The parties will negotiate the increments of acreage for the phases and whether Developer will be required to pay an option fee for reserving acreage for future purchases.
- City will retain the right to retain twenty-one (21) acres to the northwest of the future planned area for Placer Parkway.
- Developer shall have one (1) year or until Draft Environmental Impact Report (EIR) for Roseville Industrial Park Project at Phillip Road Site and rezoning has been completed, whichever is sooner, for the purposes of conducting its due diligence with respect to the Property and entitling the Property for industrial development.