08/22/2000 RA RPT 04 - Laserfiche WebLink

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CITY OF RIVERSIDE REDEVELOPMENT AGENCY MEMORANDUM Honorable Mayor & Agency Members Date: .August 22, 2000 Item No.: 4 Subject: Authorize approval of the Business Agreement, University Village Center Parking - Component of the University Village Fourth Implementation Agreement Background On July 25, 2000, the Agency Board approved the University Village Fourth Implementation Agreement. One of the components to the Implementation Agreement includes the Business Agreement, University Village Center Parking with the University of California, Riverside. -Staff indicated that the Business Agreement, upon completion, would be presented to the Agency for consideration of approval. Current Issue The Business Agreement provides the Agency to lease to the University of California, Riverside CUCR") the Agency' s Exclusive Easement rights to four hundred (400) parking spaces, at the uppermost portion of the Parking Structure, for the purposes of providing student/faculty parking. The Business Agreement between the Agency, University Village, LLC and UCR shall be for a term of ten (10) years, with rental payments annually of Ninety Thousand Dollars ($90,000). The Agreement allows for the termination of the Agreement, in whole or in part, upon twelve (12) months notice from the developer and/or Agency. This provision is to assure the developer that parking spaces will be available as ongoing development occurs at University Village. If the UCR Agreement is cancelled in whole or in part, offsetting provisions in the Fourth Implementation Agreement would come into effect in order to replace any lost revenue. Fiscal Impact Not applicable. The fiscal impact of the University Village Fourth Implementation Agreement, which included the UCR parking item was outlined in detail in the staff reports dated July 11 and July 25, 2000. The Business Agreement with UCR implements the business terms outlined in the University Village Implementation document. Alternatives The Agency may elect not to approve the Business Agreement; however, the escrow on the University Village Fourth Implementation Agreement cannot close without the Business Agreement. Committee Action The actual Business Agreement document was not presented to the Development Committee, however, the purpose and content of the Agreement was presented to them as part of the University Village Fourth Implementation Agreement. Recommendations That the Redevelopment Agency: 1. Approve the Business Agreement, University Village Center Parking; and 2. Authorize the Executive Director or his designee to execute the Agreement and to make non-substantive changes as deemed necessary to the attached Agreement. 4-1