12/18/2001 RA RPT 11 - Laserfiche WebLink

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CITY OF RIVERSIDE Riverside tEO.Jd 'fijr AGENCY MEMORANDUM People Serving People 1998 HONORABLE MAYOR AND AGENCY MEMBERS DATE: December 18, 2001 ITEM NO: 11 SUBJECT: MEMORANDUM OF UNDERSTANDING I HELIPORT SITE BACKGROUND: In 1998 and subsequent years, the Redevelopment Agency entered into Negotiation Agreements and Memorandums of Understanding with Germania Construction and KPC Global Care for the development of Class "A" medical and office space at the site bounded by State Route 60, Market Street and Fairmount Boulevard. Then, in 2000, the City of Riverside was awarded a $917,000 federal public works grant to assist with the infrastructure improvements that were necessary to develop the site. In addition, the Redevelopment Agency acquired the adjacent properties that were necessary to make-up the 7.11 acres for the proposed development. Ultimately, KPC Global Care experienced severe financial troubles, and was unable to move forward with the development of the site. CURRENT ISSUE: For the past several months, staff has had discussions with Mr. David Botfeld of The Stewart Group, LLC. Mr. Botfeld is a developer with extensive office development experience. He proposes a project that would be constructed in phases consisting of, at a minimum, the construction and leasing of 80,000 square feet of Class "A" commercial office space configured in a two- and four-story office building or two separate three-story buildings. In addition, a 10,000 square foot building pad suitable for retail/restaurant uses would be made available. It is also conceivable that a hotel could be developed on the property, which is closest to the State Route 60 on-ramp at Market Street. Given the time constraints associated with the federal grant, it is extremely important to move this project forward for Agency consideration. The attached draft Memorandum of Understanding (MOU) is attached for your review. The MOU provides for a term of up to six months, including extensions, during which time a Disposition and Development Agreement will be prepared and brought back for Agency consideration. FISCAL IMPACT: There is no financial impact associated with the execution of the Memorandum of Understanding. However, should the project proceed, it is likely that Agency assistance will be required; and the project will be brought back to the Agency for consideration. ALTERNATIVES: To not move forward with the approval of the Memorandum of Understanding, which would delay or cause the developer from proceeding with obtaining entitlements. Or, the Agency could direct staff to prepare and distribute a Request for Proposal for developing the site. In either case, the City risks losing the federal grant if construction is not underway by October 2002. 11-1