07/10/2001 RA RPT 04 - Laserfiche WebLink

Home

& CITY OF RIVERSIDE REDEVELOPMENT AGENCY MEMORANDUM Honorable Mayor & Agency Members Date: Item No.: July 10,2001 4 Subject: Appeal of Determination to Reject the Owner's Participation Proposal from Gracal Corporation-Magnolia Center Redevelopment Project Area Background In accordance with the Rules Governing Participation and Preferences for Owners. Operators of Businesses and Tenonts ("OP Rules") for the Magnolia Center Redevelopment Project Area, this is a review ofthe decision ofthe Executive Director to select a development proposal for the block generally bounded by Central A venue, Riverside A venue, Merril Avenue and De Anza Avenue. The decision of the Executive Director is the first step in the consideration of redevelopment for the selected site and is not a final approval on the merits of any project. Current Issue As a result of preliminary discussions initiated by Litchfield Advisors ("Litchfield") with staff, on November 7, 2000, the Agency Board authorized staff to engage in two initial activities: First, to receive expense reimbursement funds from Litchfield, without further obligation of the Agency, to pay for the costs of professional services in order to conduct appraisals and evaluate the feasibility of Agency involvement in the revitalization of the Riverside Plaza. Second, the Agency also authorized the commencement of the owner participation process by notifYing all other affected property owners of their right to submit competing proposals or other statements of participation with regard to the Plaza revitalization. Following Agency action, on November 8, 2000, staff mailed the first round of letters of solicitation for development proposals to Cal Fed Bank and Gracal Corporation ("Gracal"). On December 5, 2000, staffre- mailed the Gracalletter following return of the first letter due to undeliverable address. A second round of solicitation letters was mailed to Wards and Y ons on February 21, 2001. As a result ofthe solicitation, development proposals were submitted by Litchfield, Gracal and Yons within the timeline provided in the solicitation letters. (Cal Fed Bank and Wards did not submit proposals.) Analysis Summary of Each Development Proposal Litchfield Scope of Development: Encompasses the entire mall and some adjacent parcels within the same block. Proposed Development: In both Scheme A and SchemeR, demolish and reconfigure the existing enclosed mall, creating an open-air shopping center that is pedestrian friendly with outdoor seating, entertainment and dining. Includes the relocation of Trader Joe's and Save-On to the northeast corner of the site; a new, expanded Yon's supermarket; stores for lifestyle and home accessories retailers surrounding the existing Gottschalks; a Main Street entry with outdoor dining; the addition of a multiplex theater in Scheme A; and three alternatives for the Wards building to include, I) reuse of a portion of the building and the additi~n ?f a separate: smaller build~ng, 2) demolishing the building and replacing with a smaller building, and 3) demohshmg the bUlldmg and replacmg with the proposed theater. Experience: Team comprised of I) Litchfield, the proj~ct propo~ent, which i~ a multi-faceted inves~ent, development and real estate advisory firm, with extensIVe exp~rt'se m m~nagmg ~omplex real est~t~ Iss~es for investors and corporations in the U.S., Europe, Asia, and MeXICO, 2) PaCific Retail ~artners, spec~ahzes m tenant mix, site planning, security, reciprocal documents and lease structure and is marketmg t~e R,verslde Plaza to prospective retailers, restaurants and other users, and4~isponsible for all lease negotiatIOns, and 3) The Kenney