08/22/2000 RA RPT 03 - Laserfiche WebLink

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CITY OF RIVERSIDE REDEVELOPMENT AGENCY MEMORANDUM Honorable Mayor & Agency Members Date: August 22, 2000 Item No.: 3 Subject: First Amendment of Memorandum of Understanding By and Between the Redevelopment Agency of the City of Riverside and The Fancher Companies Regarding the Development of the Entertainment District in Downtown Riverside - Budget Transfer Background On May 16, 2000, the Redevelopment Agency authorized the Executive Director to Enter into a Memorandum of Understanding with The Fancher Companies regarding the development of a Downtown Riverside lifestyle entertainment district. The document allowed the developer to represent the project and solicit tenant interest at the recent annual International Council of Shopping Centers (ICSC) conference in Las Vegas. As proposed, the lifestyle entertainment district would encircle the Main Street Mall, taking advantage of the existing ambiance, and further enhancing the area by refurbishing existing historic buildings, and constructing new buildings to create a variety of retail, dining and entertainment venues. Current Issue Changes are occurring in retail development from suburban regional malls and strip centers to downtown oriented lifestyle centers. Such centers are evolving as preferred locations for retailers, restaurants and film exhibitors. Consequently, encouraging responses were received from potential tenants at ICSC when presented with information pertaining to the proposed lifestyle entertainment district in Downtown Riverside. Despite the good faith efforts of the Agency and The Fanchef Companies, the parties were unable to complete a Limited Right to Negotiate Agreement within the timeframe contemplated by the Memorandum of Understand- ing, which expires on August 30, 2000. The proposed amendment will extend the term of the MOU through the end of December. In addition, the amendment will affirm both parties' commitment to use their best efforts and good faith to complete the preparation of the Limited Right to Negotiate. Further, authorizing the amendment to the MOU will allow Agency staff to assess project compatibility with Redevelopment Plan goals and objectives and project viability. Finally, the extension will allow the developer sufficient time to provide a tenant list, construction budget and development schedule, operating proforma, anticipated parking requirements and method of financing. Once these issues have been adequately addressed, a Limited Right to Negotiate will be presented for Agency consideration. Analysis With the exception of the regional Ontario Mills Mall, there are no other entertainment centers of any significant size in the Inland Empire that are anchored by entertainment, fine dining and specialty retail. As a result, Inland Empire residents drive for an hour to Old Town Pasadena, The Irvine Spectrum, or The Block at Orange for such an experience. Riverside presents the ideal Inland Empire location to house a lifestyle center that can serve a minimum of 800,000 to one million people within a 30 minute drive, and do so in the unique physical setting surrounding the Main Street Mall of Riverside' s traditional downtown. Fiscal Impact Up until this point, any costs for legal work has originated from existing professional services funds. In 'order to facilitate future work relating to design development and feasibility, it would be appropriate to establish an 3-1