09/19/2000 RA RPT 08 - Laserfiche WebLink

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, CITY OF RIVERSIDE REDEVELOPMENT AGENCY MEMORANDUM Honorable Mayor & Agency Members Date: Item No.: September 19, 2000 8 Subject: Request Authorization to Purchase Five Parcels Comprising 2.81 Acres at Market Street and Fairmount Boulevard (Osborn & Singletary Properties/Landmark Project)- Downtown! Airport Merged Project Area Background Since July, 1998, the Agency has been negotiating with Germania Construction and Global Medical Malls, LLC regarding the development of a 200,000 square foot medical office building on the property bounded by Highway 60, Market Street and Fairmount Boulevard (a.k.a. the Landmark Project). As part of the negotiations, the City sought and obtained HUD approval to amend the site into the Mission Village boundaries, and $1.2 million in Section 108 funds were allocated for land acquisition. Additionally, the City submitted a $917,000 grant application to the Department of Commerce Economic Development Administration (EDA) to offset the significant infrastructure costs associated with the proposed $35 million project. A positive response is anticipated from EDA within the next month. Current Issue In order to develop the proposed medical office building, the Agency must assemble the property depicted on the attached map. A large portion of the subject property - which is owned by the City of Riverside Park and Recreation Department -- is known as the Heliport Property. Five other parcels (under two separate ownerships), joined with the Heliport Property, comprise the main area of development for the Landmark project. Those parcels are described as follows: . 2167,2191 and 2223 Fairmount Blvd. (Assessor Parcel Nos. 207-120-020,207-120-021 and 207-120-022), owned by Philip G. Osborn, Trustee Under Declaration of Trust Dated July 10, 1986, entitled "Philip G. Osborn 1986 Trust" . Northerly side of Market Street (Assessor Parcel Nos. 207-120-001 and 207-120-002), owned by Gaylor W. Singletary, a widower, as to an undivided '12 interest, and Gaylor W. Singletary, as Trustee of the Testamentary Trust created under Will of Maxine J. Singletary, deceased, as to an undivided '12 interest Negotiations with the property owners have resulted in the attached Agreements of Purchase and Sale, which have been executed by the respective property owners. Essentially, the agreement with Mr. Osborn provides for a $514,000 purchase price for his 1.18 acres (or approximately $10 per square foot), and a non-refundable deposit of $5,000. The agreement with Mr. Singletary provides for a purchase price of $650,000 for his 1.63 acres (or approximately $10 per square foot when taking into account the net-developable area of his property), and a non- refundable deposit of $10,000. Both agreements provide that escrow close on or before November 30, 2000, although escrow can be extended to February 28, 2001, upon tendering an additional deposit of $5,000 for Singletary and $2,500 for Osborn. All deposit money is applicable to the purchase price, but is non-refundable if the Agency elects, in its sole and absolute discretion, not to close escrow for any reason. The deposits will secure the Agency's option to purchase the property while staff proceeds with normal due-diligence reviews of the property, including physical conditions affecting the property and its development, and continues negotiations with the developer of the Landmark project. 8-1