10/16/2001 RA RPT 06 - Laserfiche WebLink

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CITY OF RIVERSIDE REDEVELOPMENT AGENCY MEMORANDUM Honorable Mayor & Agency Members Date: October 16, 2001 Item No.: 6 SubJect: Consent to Sale Agreement for the Transfer of the MBK Property to Spooner Properties, LLC Within the Riverside Marketplace in the University Corridor/Sycamore Canyon Project Area Backgrouad On December 21, 1989, the Agency entered into an Owner Participation Agreement (OPA) with Birtcher Campbell Properties II to effectuate the disposition of property and redevelopment of the Marketplace development project. Pursuant to Section 314 of the OPA, the developer shall not attempt to assign the OPA, 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 hsue MBK Riverside Marketplace Partners, Ltd., as successor-in-interest to Birtcher Campbell Properties, has entered into a purchase and sale agreement with Mr. Jay Haskell of Spooner Properties, LLC for the sale of the approximate half-acre parcel located at the northwest coruer of Vine Street and Mission Inn Avenue. Mr. Haskell has an extensive background in the development and management of commercial properties, and proposes to construct a 3,600 square restaurant on the subject property. Agency staff has reviewed the proposal of Mr. Haskell and concludes that upon the receipt of the following information, the Agency will be able to make the necessary findings in accordance with the terms of the OPA: a. That Mr. Haskell has past experience and success in developing, operation and managing similar, comparable developments; b. That Mr. Haskell's prupesal is consistent with the Scope of Development and the Scope of Performance of the OPA; c. The Purchase and Sale Agreement between MBK Riverside Marketplace Partners, Ltd. and Spoonar Properties, LLC 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 Spooner Properties, LLC.; and d. Mr. Flaskell has provided evidence to the Agency of definite and certain financing for the construction of improvements which are consistent with the terms of the OPA. 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 Spooner Properties, LLC. Analysis The proparty located at the northwest comer of Mission lnn Avenue and Vine Street has been vacant for more than a decade. During that time, there has been limited development interest in the site. Approving the Consent to Sale agreoment will allow the property to be sold and developed, thus resulting in new job creation and increased activity at the Marketplace development project along with the generation additional sales tax and tax increment. Ultimately, a 6,000 square foot business bank will be developed on the adjacent (Slamal) property, which will provide additional parking for the anticipated evening customer traffic. It should be noted that the Slamal property is not subject to the requirements of the Owner Participation Agreement; thus a Consent to Sale is not required for the development of the proposed use on that site.