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, CITY OF RIVERSIDE REDEVELOPMENT AGENCY MEMORANDUM Honorable Mayor & Agency Members Date: Item No.: July 10, 2001 3 Subject: Amendment to Exclusive Rigbt to Negotiate between tbe Redevelopment Agency and Hopkins Real Estate Group for tbe Development of Villages of Van Buren--Arlington Redevelopment Project Area Background On November 13,2000, the Redevelopment Agency authorized the Executive Director to enter into an Exclusive Right to Negotiate ("ERN") with Hopkins Real Estate Group ("Hopkins") regarding the development of Villages of Van Buren. Bounded generally by Indiana Avenue, Lincoln Avenue, Van Buren Boulevard, and Gibson Street, Hopkins has proposed a mixed-use development to combine multi-family with some additional commercial/retail development, including an expansion ofthe retail center located at the corner of Lincoln Avenue and Van Buren Boulevard (the "Project'). The ERN allowed Hopkins to formalize the Project into a comprehensive development proposal, provide a schedule to include milestones for land use entitlements and permits, provide evidence of financing, obtain signed purchase and sale agreements or similar owner's binding commitment to sell parcels, continue marketing the project to obtain binding commitments from commercial tenants and residential developers, and submit a detailed financial proforma for the Project. Current Issue During the past six months Hopkins has fulfilled a number of obligations required by the ERN. The Project has been formalized into two phases: Van Buren Station (Phase I) on the west side of Van Buren, and Van Buren Village on the east side of Van Buren (Phase 11). Phase I is in the initial application stage for land use entitlements, while Phase 11, the more complex development proposal, is in the appraisal and financial analysis process. Both Phases have been extensively marketed by Hopkins in real estate and business periodicals such as International Shopping Centers and at the annual International Council of Shopping Centers (ICSC) conference in Las Vegas both in May 2000 and May 200 I. Despite the good faith efforts of the Agency and Hopkins, the parties were unable to complete the obligations necessary to develop a Disposition and Development agreement within the timeframe contemplated by the ERN, which expired on June 30, 200 I. Therefore, staff and the developer agree that it would be in the best interest of both parties to amend the ERN by extending the term through October 3 I, 200 I, to allow sufficient time to complete the obligations identified in the ERN. Fiscal Impact There is no financial impact related to the approval of the Amendment to the ERN. Alternatives The Agency could elect to not approve the Amendment to the ERN. Doing so would result in the developer ceasing efforts to attract tenants and housing developers to this portion ofthe Arlington Redevelopment Project Area. 3-1