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CITY OF RIVERSIDE Riverside ~ AIJ..America c; ~ 1111. AGENCY MEMORANDUM People Serving People 1998 HONORABLE MAYOR AND AGENCY MEMBERS DATE: December 11, 2001 ITEM NO: 1 SUBJECT: PUBLIC HEARING TO CONSIDER APPROVAL OF A MEMORANDUM OF UNDERSTANDING BETWEEN THE AGENCY AND THE REGENTS OF THE UNIVERSITY OF CALIFORNIA FOR THE UCRlCULVER CENTER FOR THE ARTS AND TO CONSIDER CASE EP-013-012 -DOWNTOWN/AIRPORT INDUSTRIAL REDEVELOPMENT PROJECT AREA BACKGROUND: On November 6, 2001, the City Council and the Redevelopment Agency approved Purchase and Sale Agreements ("Agreements") for the acquisition of three properties located on Main Street and allocated funds necessary to complete the acquisitions. This was a continuance of City Council action on August 28, 2001, approving financial assistance to the University of California, Riverside ("UCR"), in its endeavor to develop the UCR/Barbara & Art Culver Center for the Arts ("the Project") adjacent to the UCR/California Museum of Photography. The Project is envisioned as an interactive arts facility, enabling UCR to enhance arts outreach programs to the community. UCR proposes to renovate and seismically retrofit the Rouse Building property for use in various graduate studies programs in the arts. Future conceptual plans may include a bookshop, cafe, studio art and dance studios, faculty offices, and related storage. A second phase of the Project is anticipated to include construction of a performance auditorium, sculpture garden and parking area on the adjacent Wurms Building and parking lot properties (see attached conceptual site plan). The close proximity of the Project to the Mission Inn, Fox Theatre, proposed California School of the Performing Arts, Riverside Art Museum, and Riverside Municipal Auditorium will allow UCR to better collaborate and cooperate with other arts providers and educators in the downtown Riverside area. CURRENT ISSUE: At the November 6, 2001, joint meeting the Agency Board was advised that the Agreements were contingent upon Agency approval of a Memorandum of Understanding ("MOU") with UCR, which would be presented to the Agency at a future meeting, and successful concurrent closing of double escrows with the property owners and UCR, anticipated to be no later than January 15, 2002. Since, staff has completed negotiations with UCR to assist in acquiring the properties necessary for the Project and relocating a business tenant. The attached MOU sets forth the financial commitments of each party with regard to property acquisition costs and relocation expenses, which are highlighted below: Agency Financial Commitments Acquisition Price Relocation Assistance Due Diligence Costs Escrow Fees/Closing Costs $1.575,033 less UCR's commitment of $1 ,261 ,783 ($358,250) 50% of up to $500,000; 100% of expenses exceeding $500,000 appraisals, Phase 1/11 environmentals, asbestos and lead paint testing estimated cost (not including Phase II) $14,900 Y:.. estimated at $3,350 1-1