05/16/2000 RA RPT 10 - Laserfiche WebLink

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CITY OF RIVERSIDE REDEVELOPMENT AGENCY MEMORANDUM Honorable Mayor & Agency Members Date: May 16, 2000 Item No.: 10 Subject: Request Authorization to Enter Into A Memorandum of Understanding with The Fancher Companies Regarding the Development of the Entertainment District in Downtown Riverside Background On January 18, 2000, the Redevelopment Agency Board of Directors approved the Downtown Riverside Retail Entertainment Strategy and Action Plan, which was prepared by Keyser Marston Associates. The Plan formulated a strategy for the continued revitalization of Downtown Riverside through the attraction of a variety of upscale restaurants, specialty retail and entertainment opportunities. Additionally, the document provided a number of steps the Agency should take in order to implement the Plan. Said steps include determining the source of funds that will support the public financial contribution necessary for a feasible project, negotiating purchase options on priority properties, and holding informal discussions with recognized retail developers to test market interest. Current Issue In anticipation of the of the Downtown entertainment/retail project, the City pursued and received approval to amend the Mission Village Plan and reallocate $1,025,000 in Section 108 funds and $975,000 in Economic Development Initiative funds. Said funds have been identified for land acquisition. Should the project require additional assistance, other timding sources will be identified. Staff is also negotiating and/or obtaining purchase options on specific Downtown properties. Additionally, staff has met with numerous recognized retail/entertainment developers. While several developers have conveyed interest, the Fancher Companies has advanced the furthest and stands out due to the variety and scope of previous development projects. It is proposed that the Agency enter into a Memorandum of Understanding with the Fancher Companies regarding the development of a Downtown entertainment/retail center. Execution of the Memorandum of Understanding is merely an agreement to work toward a negotiating agreement, reserving final discretion and approval for the Agency as to any subsequent development agreements. Analysis Downtown Riverside is at a critical point as far as future development is concerned. As identified in the Keyser Marston study, certain steps must be taken in order to stimulate Downtown nighttime and weekend activities. A majority of the required funding has been secured. Additionally, purchase options have been obtained or are being negotiated on key parcels. The next logical step is to move forward with a Memorandum of Understanding with a qualified, competent developer who has experience in the development of entertainment/retail developments. Fiscal Impact There is no financial impact associated with the approval of the Memorandum of Understanding. Costs will be incurred should the Agency pursue a negotiating agreement and/or future development agreement. Said costs will then be identified. 10-1