11-19-2002 CC RPT 07 - Laserfiche WebLink

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People Serving People CITY OF RIVERSIDE AGENCY MEMORANDUM Riverside ill-America Oit'~ 1998 HONORABLE MAYOR AND AGENCY MEMBERS DATE: November 19, 2002 ITEM NO: 7 SUBJECT: AGENCY ACQUISITION OF PROPERTY IN THE RIVERSIDE MARKETPLACE DEVELOPMENTPURSUANTTO EXISTING SETTLEMENTAGREEMENT- UNIVERSlTY CORRIDO~SYCAMORECANYON PROJECT-ADDITIONAL APPROPRIATION BACKGROUND: In a December 19, 1995 Settlement Agreement between the Redevelopment Agency, Bircher Campbell Properties (MBK) and W.H. Latimer, a commitment was made by the Agency to pay $400,000 for the development of a parking lot on property situated on Vine Street adjacent to the 91 freeway for general public parking in the Riverside Marketplace. Upon the complete payoff of this $400,000 (providing it is within ten years after the date of the Agreement), the Agency has the right to acquire this property without payment of any further consideration to MBK. The Agency currently owes only $91,181.87 of the $400,000 on a 10 year, 10% per annum note payable to MBK. According to the terms of the note, there are no prepayment penalties in the event of early payoff. The subject property, which is known as Parcel 13, contains a 52 space parking lot and a 67' Marketplace sign. Caltrans notified MBK, the current owner of Parcel 13, that this parcel is being impacted by a right- of-way requirement for Caltrans freeway construction that will begin in January of 2003. Caltrans would be purchasing, through eminent domain, a portion of Parcel 13 that contains 22 parking spaces and the 67' Marketplace sign (net area consists of 4,543 s.f.). Staff suggests that the Agency consider exercising its option to acquire Parcel 13 (through early payoff of the existing note) in order to protect its right to claim just compensation in the eminent domain proceeding and preserve freeway frontage signage for the Marketplace. Caltrans represents that the sign could be relocated outside of their right-of-way take area with freeway visibility. CURRENTISSUES: Retention of the existing pylon sign and long term preservation of the remaining parking on the parcel can only be assured if the Agency pays off the note payable to MBK and exercises its option to acquire Parcel 13. Ownership of Parcel 13 will enable the Agency to relocate the Pylon Sign to another section of the parking lot on Parcel 13 outside of the right-of-way take area. If the sign does not get moved from the right-of-way, freeway frontage advertising may be lost. Ownership would also enable the Agency to ensure that the remaining portion of the parcel is returned to a useable public parking lot. Caltrans estimates that approximately 35 spaces may be re-designed into the remainder of the parking lot after the Caltrans right-of-way is taken. In addition to the pylon sign issue, the Settlement Agreement provides that the Agency's option may only be exercised within the 10-year period of the note. No provision is made for an exercise of the option after that time. Moreover, MBK's responsibilities to maintain the property terminate at the end of the ten- year period, thereby leaving in doubt the long-term survival of Parcel 13 as a viable public parking facility. 7-1