05/16/2000 RA RPT 05 - Laserfiche WebLink

Home

CITY OF RIVERSIDE REDEVELOPMENT AGENCY MEMORANDUM Honorable Mayor & Agency Members Date: May 16, 2000 Item No.: 5 Subject: Option to Purchase Two Parcels on Twelfth Street, West of Chicago Avenue; Assessor Parcel Nos. 221-161-005 and 221-161-026 (Town Square Shopping Center Revitalization Project) Background The Redevelopment Agency is currently entertaining discussions with a developer who is interested in the revitalization of the Town Square Shopping Center located at the southwest comer of University Avenue and Chicago Avenue. Discussions have revealed that one or more major anchor tenants are considering the possibility of locating to the Town Square property. Developer site plans have been prepared, lines of sight have been analyzed, and a variety of development concepts have been studied. This information has revealed that it may be necessary to acquire properties along the south side of Twelfth Street in order to accommodate the tenants' needs. Or, perhaps, another use of the property might be needed for construction of replacement housing as a result of the acquisition of single-family residential properties located to the west of the existing Town Square Shopping Center property. Current Issue There are currently two vacant parcels of land listed for sale on the south side of Twelfth Street about 300 feet west of Chicago Avenue. They are owned by David C. Maddox and Dorothy S. Maddox, as Trustees of the Maddox Family Trust dated 9-17-68 (Assessor Parcel Nos. 221-161-005 and 221-161-026). One lot is approximately 0. 1 5 acre, or 6,534 square feet (APN 221-161-005) and the other is approximately 0. 19 acre, or 8,276 square feet (APN 221-161-026). The property owners are asking $19,900 for each of their parcels. We have consulted with an appraiser who has determined that the asking price is within a reasonable range of the market for similar property. The Agency can purchase land for the price offered for sale to the public without going through the usual property acquisition procedures (i.e., obtaining an appraisal, making a formal offer, etc.). In light of the possibility that the land may be useful for the future revitalization of the Town Square Shopping Center, Property Services and Agency staff have negotiated with the owners, through their real estate agent, an agreement for an option to purchase the land for a total of $39,800. The option would extend for a period of six months upon payment of option money in the amount of $2,000. The option money will be applied to the purchase price if the option is exercised. The signed Option Agreement is attached to this report. Analysis At this time, it is difficult to determine whether the subject properties will be necessary for the future revitalization of the Town Square Shopping Center. Agency staff believes that this will become known over the next six months, since decisions by the major anchor tenants should be made by then. Entering into the Option Agreement will allow the Agency to purchase the property at the listed sales price at a substantial savings in terms of normal acquisition costs. It should be noted that the Agency currently holds two other option agreements for the purchase of four parcels on Twelfth Street. The two additional parcels owned by the Maddox Trust would complete the section along Twelfth Street that may be useful to the revitalization of the Town Square Shopping Center, as described above. 5-1