11/07/2000 RA RPT 05 - Laserfiche WebLink

Home

. CITY OF RIVERSIDE REDEVELOPMENT AGENCY MEMORANDUM Honorable Mayor & Agency Members Date: November 7,2000 Item No.: 5 Subject: Approval of Limited Right to Negotiate with Regional Properties, Inc. for the Proposed Development of 8Ii1rban Inf'I1I Market-rate Residential Development on Agency Property generally located at First and Market Streets in the Merged Downtown! Airport Industrial Redevelopment Project Area Background In June 1999, the Agency entered into a Limited Right to Negotiate ("LRN") with The Olson Company to determine if negotiations would lead to a Disposition and Development Agreement ("DDN') to develop Agency property generally located at First and Market Streets with a single-family infill residential project. The Olson Company and the Agency failed to reach an agreement and the LRN terminated in June 2000. Staff re-initiated discussions with several developers who had expressed interest with development in Downtown and the Riverside area. One developer, who has developed several projects in the Riverside area, expressed interest in the development of the First and Market Streets site and has submitted a concept plan as an indication of his interest. Current Issue To determine the extent of the developer's interest in the development of the Agency property and his capability to complete the development, staff and the developer, Regional Properties, Inc., represented by Mr. Mark Rubin, have negotiated the attached LRN for the Agency's consideration and approval. The LRN will provide a maximum period of six (6) months to negotiate terms of the sale of the Agency property and the development of the property. If successful, the negotiation would lead to a DDA. Analysis The proposed project is intended to replace the blighted property with an attractive single-family urban infill residential development. The development of some 45 to 50 dwellings would be sensitive to the nearby historic neighborhoods and are currently intended to be sold at market-rate. Some of the new buyers, depending on household income, would be offered down-payment assistance. It is anticipated that the proposed development will have a homeowners' association to maintain the common areas of the project and to enforce certain standards of property maintenance and owner-occupancy. Fiscal Impact Funds for legal services for the preparation of the LRN and DDA, economic feasibility analysis, and real property services are available in the budgeted Mission Village Homeownership Zone Professional Services Account No. 9733010-421002. The combined cost for this work is estimated to not exceed $15,000. Alternatives The Agency could elect not to approve the Limited Right to Negotiate with Regional Properties, Inc. and could direct the staff to seek other proposals from other developers. This would delay the development of the Agency property under this proposal. The vacant property would remain a blighting influence upon the are"a until it is developed. 5-1