01/02/2001 RA RPT 03 - Laserfiche WebLink

Home

. CITY OF RIVERSIDE REDEVELOPMENT AGENCY MEMORANDUM Honorable Mayor & Agency Members Date: Item No.: January 2, 2001 3 Subject: Consent to Sale Agreement for the Transfer of the Ironworks Property to Ironworks Building, LLC Within the Riverside Marketplace in the University Corridor/Sycamore Canyon Project Area Background On December 21, 1989, the Agency entered into an Owner Participation Agreement (OP A) with Birtcher Campbell Properties II to effectuate the disposition of property and redevelopment of the Marketplace development project. Pursuant to Section 314 of the OP A, the developer shall not attempt to assign the OP A, or make any total or partial sale, transfer, and conveyance of the properties located within the Riverside Marketplace without prior written approval of such proposed assignee by the Agency. Current Issue MBK Southern California Ltd., as successor-in-interest to Birtcher Campbell Properties, has entered into a purchase and sale agreement with Mr. Alan Mruvka for the sale ofthe Ironworks Building and adjoining property. Mr.Mruvka has an extensive background in the rehabilitation of historic buildings, and proposes to seismically retrofit the building and lease the unique space for office and restaurant uses, Agency staff has reviewed the proposal of Mr. Mruvka and concludes that the Agency can make the following findings in accordance with the terms of the OPA: a. That Mr, Mruvka has past experience and success in developing, operation and managing similar, comparable developments; b, That Mr, Mruvka's proposal is consistent with the Scope of Development and the Scope of Performance of the OPA; c, The Purchase and Sale Agreement between MBK Southern California Ltd. and Mr, Mruvka provides for appropriate and reasonable protections and limitations which assures that the covenants, conditions and restrictions which run with the Site and inure to the benefit of the Agency and City shall inure to the burden of Mr. Mruvka. Further, an assumption agreement pertaining to said covenants, conditions, and restrictions will be entered into between the buyer and seller; and d, Mr. Mruvka has provided evidence to the Agency of definite and certain financing for the construction of improvements which are consistent with the terms of the OP A. The attached Consent to Sale Agreement will, upon execution, provide MBK with documentation of the Agency's concurrence in the sale of the property to Mr. Mruvka, Analysis The Ironworks Building has remained vacant for the past decade, suffering from extensive vandalism and deterioration, Various parties have been interested in the building. However the rehabilitation costs, which will exceed $1 million, have deterred said parties from pursuing the acquisition. Approving the agreement will allow the building to be sold and rehabilitated, thus generating additional tax increment, Ultimately, new or expanding 3-1