05/16/2000 RA RPT 11 - Laserfiche WebLink

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CITY OF RIVERSIDE REDEVELOPMENT AGENCY MEMORANDUM Honorable Mayor & Agency Members Date: May ] 6, 2000 Item No.: Z 1 Subject: Request Authorization to Enter Into a Memorandum of Understanding with Hopkins Real Estate Group for Development of that Area Generally Bounded by Indiana Avenue, Lincoln Avenue, Van Buren Boulevard and Gibson Street Within the Arlington Redevelopment Project Area Background Agency staff has been approached by Larry Weese~ Vice President of Hopkins Real Estate Group ("Developer")~ regarding the potential for a mixed-use, master-planned development to incorporate approximately 50 acres within the area bounded by Indiana Ave.~ Lincoln Ave., Gibson St., and both sides of Van Buren Bivd. Currently this area consists of vacant parcels, abandoned commercial buildings, a drive-in theater, and three tenant- occupied single family residences. The mixed-use development proposes to combine multi-family and residential housing with some additional commercial/retail development, including an expansion of the retail center located at the corner of Lincoln and Van Buren. Current Issue The proposed project is in the preliminary stages of analyses, however. the Developer has indicated the need for Agency assistance. He has also requested that the Agency enter into a Memorandum of Understanding ("MOU") to set forth provisions to negotiate towards either a Limited or Exclusive Right to Negotiate regarding their development proposal. Since the original Arlington Project Area has not generated revenues to support redevelopment activities, and was only recently amended to add approximately 1,000 acres~ it currently does not have a budget sufficient to undertake direct financial assistance in the proposed project. The MOU, therefore, restricts any Agency participation to land acquisition and assembly that might be required to facilitate the master planned development. Also. during this period. staff will notify the affected property owners of their owner participation rights pursuant to the Owner Participation Rules adopted for the Arlington Redevelopment Project Area, and provide them an opportunity to submit competing development proposals. Analysis Upon execution of the MOU, a detailed analysis and financial feasibility will be conducted as the project proposal formulates. As this is a very large undertaking, should the project move forward, staff anticipates the potential for considerable new investment, resulting in increased tax increment and sales tax revenues to the Agency and City respectively. Fiscal lmpact Costs are limited at this point to staff time and legal services for preparation of the MOU, a future Limited or Exclusive Right to Negotiate, and the owner participation rights process. Funds are available in the Arlington Capital Projects Professional Services Account No. 28301020421002 in the amount of $8,165. Alternatives The Agency could chose not to recommend approval of the MOU. which could jeopardize the proposed project and the investment potential it represents for the Arlington Project Area. 11-1