03-19-2002 RA RPT 04 - Laserfiche WebLink

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"'f"'; ,..... ~.~ .."..J Jot r tllS : tp! .., -~ :-.ftL., ,.-. ..dH.rr: CITY OF RIVERSIDE Riverside bald AII-Arnerica C; , 1111. AGENCY MEMORANDUM People Serving People 1998 HONORABLE MAYOR AND AGENCY MEMBERS DATE: March 19,2002 ITEM NO: 4 SUBJECT: REQUEST AUTHORIZATION TO ENTER INTO A LIMITED RIGHT TO NEGOTIATE WITH ALAN MRUVKA FOR THE DEVELOPMENT OF THE HALF BLOCKS ON THE EAST SIDE OF MARKET STREET BETWEEN 5TH STREET AND MISSION INN AVENUE - MERGED DOWNTOWN/AIRPORT INDUSTRIAL PROJECT AREA BACKGROUND: Agency staff has been approached by Mr. Alan Mruvka regarding the potential for a mixed-use development to incorporate the two half blocks (approximately 2.5 acres) on the east side of Market Street between Fifth Street and Mission Inn Avenue. Currently, this area consists of the Stalder Building and surface parking lots. The mixed-use project is proposed to encompass two components: 1) the Stalder Building block, which would provide a three-to-four story building consisting of retail, restaurants, entertainment and office space as well as a courtyard on the back side of the building. As envisioned, the courtyard would serve as an area for outdoor dining and a gathering place, and treated with lush landscaping and fountains that would connect to an enhanced walkway to the Main Street pedestrian mall; and 2) the Agency-owned Parking Lot 37, just north of the Stalder Building Block, which would provide parking structure, consisting of ground floor retail along Market and Sixth Streets, and could conceivably be constructed with office and/or residential on the upper levels. Recognizing the historic significance of the Stalder Building, Mr. Mruvka proposes to retain and restore the historic facade and incorporate it into the mixed-use development. It should be noted that Mr. Mruvka has successfully renovated the Ironworks Building in the Riverside Marketplace. In addition, he recently purchased the Santa Fe Depot, in which he plans an immediate renovation. Given Mr. Mruvka's significant investment in Riverside, coupled with his experience with renovation of historic buildings and mixed-use development, he is well suited for the proposed development project. CURRENT ISSUE: The proposed project is in the preliminary stages of analysis; however, Mr. Mruvka has indicated the need for Agency assistance. He has also requested that the Agency enter into a Limited Right to Negotiate "(LRN) to set forth provisions to negotiate toward a Disposition and Development Agreement regarding the development proposal. Time is of the essence to move this project forward, as the Agency's Option to Purchase on the Stalder Building expires on June 30, 2002. Therefore, the attached Limited Right to Negotiate is submitted for Agency consideration; and if approved, will memorialize the following deal points: 1) The Agency and Developer will negotiate exclusively during the gO-day term of the agreement, unless extended by mutual agreement of the parties. 2) The Agency shall commence and pursue its Owner Participation Process with regard to property owners, tenants, and business owners within the Site Area, such that by June 18,2002, the Agency will have determined the status of participation for each owner within the Site Area. 4-1