03-19-2002 RA RPT 06 - Laserfiche WebLink

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CITY OF RIVERSIDE Riverside ~ AII-America C; , 1111. AGENCy/COUNCIL MEMORANDUM People Serving People 1998 HONORABLE MAYOR, CITY COUNCIL AND AGENCY MEMBERS DATE: March 19,2002 SUBJECT: ITEM NO: 6 CONSIDERATION OF RESOLUTION TO REIMBURSE EXPENDITURES RELATED TO THE CONSTRUCTION AND ACQUISITION OF PUBLIC FACILITIES WITHIN COMMUNITY FACILITIES DISTRICT NO. 92-1--UNIVERSITY CORRIDOR/SYCAMORE CANYON REDEVELOPMENT PROJECT BACKGROUND: On February 19, 2002, the City council adopted a resolution commencing proceedings to consider ordering an amendment and restatement of the rate and method of apportionment of special taxes for Community Facilities District 92-1 ("CFD"), Sycamore Canyon Business Park ("Business Park"), and set a public hearing for March 26, 2002. The special taxes of the revised CFD bonds, in the approximate amount of $9,000,000, are intended to finance the design, construction and acquisition of certain public facilities within and for the CFD with the proceeds from the sale of bonds. CURRENT ISSUE: The lack of public improvements in the Business Park has been a detriment to development. The majority of the land within the CFD still remains vacant and undeveloped despite the thriving economic environment. However, several development proposals are currently before the City, one of which is for the development of two industrial buildings totaling 861,529 sq. ft. on approximately 45 vacant acres on the northerly side of Cottonwood Avenue, east of Sycamore Canyon Drive. A second proposal is for a 400,000 sq. ft., build-to-suit project south of Cottonwood Avenue. In order for the proposed developments to proceed, certain public improvements must be installed, which include Cottonwood Avenue street improvements, signalization, and marsh construction. Attraction of these larger industrial users is necessary in order to establish infrastructure in the Sycamore Canyon Business Park that will enable smaller flexible manufacturing space. To facilitate the industrial development, the Redevelopment Agency is proposing to advance funds to the City in the amount not to exceed $720,000 to construct and install the Cottonwood Avenue improvements and traffic signal facilities as delineated in the attached Exhibit 1 ("Cottonwood Avenue Facilities"), which are included within the proposed CFD. The public improvements are consistent with the University Corridor/Sycamore Canyon Redevelopment Plan and Five Year Implementation Plan. Once the CFD bonds are issued and sold, the Agency will be reimbursed the amounts advanced by it for the Facilities. Construction of the marsh improvements are also anticipated to be funded and constructed by the CFD, but may be necessary for the Agency to fund the marsh construction if the CFD is not approved. The marsh improvement costs have been estimated at $350,000. To proceed with construction of the Cottonwood Avenue Facilities, a resolution needs to be adopted by the City Council to allow qualified expenditures related to the design and construction of the Facilities to be reimbursed to the Agency from CFD bond proceeds once they are received. FISCAL IMPACT: Funds are available for transfer to the Cottonwood Avenue Improvement Account No. 9756700-440446 from the Sycamore Canyon Rail Improvement Account No. 9739700-440446, which has a current 6-1