11/06/2001 RA RPT 07 - Laserfiche WebLink

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i CITY OF RIVERSIDE COUNCIL/AGENCY MEMORANDUM Honorable Mayor & City Council and Redevelopment Agency Date: Item No.: November 6, 2001 7 Subject: Consider Approval of Purchase and Sale Agreements for the Acquisition of Properties Located at 3834 Main Street, 3866 Main Street, and 3870 Main Street-Merged Downtown/Airport Industrial Redevelopment Project-Fund Transfers-Supplemental Appropriation Background On August 28, 200 I, the City Council approved financial assistance, up to $730,000, to the University of California, Riverside ("UCR"), in its endeavor to bring a portion of its Arts Department programming into the downtown area of the City. Known as the Barbara & Art Culver Center for the Arts ("the Project"), UCR proposes to renovate and seismically retrofit the Rouse building, to include a bookshop, cafe, studio art and dance studios, artist live-work space, faculty offices, expansion of the California Museum of Photography to house the Keystone Mast collection, and related storage space. The Project also includes creation of new parking and a possible sculpture garden. A second phase of the Project includes the construction and operation of an 8,000 sq. ft., 250-seat performance auditorium/theater (see attached conceptual site plan). Current Issue Since, staff has completed negotiations with the owners of properties located at 3844 Main Street, 3866 Main Street, and 3870 Main Street, which include the Rouse building, the Wurm's building, and the adjoining parking lot. Negotiations have resulted in the attached Purchase and Sale Agreements, and the following business points: 3834 Main Street (Rouse Bldg.) Purchase Price $1,016,783 3866 Main Street (Wurm's Bldg.) Purchase Price $205,000 Deposit $ 10,000 3870 Main Street (parking lot) Purchase Price $353,250 Deposit $ 3,532.50 Escrow fees Agency pays up to $1500 The Purchase and Sale Agreements are contingent upon Agency approval of a Memorandum of Understanding ("Mal)") with UCR and successful concurrent closing of double escrows with the property owners and UCR, which escrow closing date will be no later than January 15, 2002. A MOU with UCR will be presented to the Agency for consideration at its meeting of November 20, 2001, which is the key factor in proceeding with the Project. An environmental review is underway of both the acquisition and MOU, which will also be considered at the November 20'h meeting. Analysis Appraisals Appraisals have been performed on the properties, and, since few comparative properties exist to perform the analysis, it was difficult to find equivalent appraised values. The purchase price for the Wurms property is within 7-1