11-19-2002 CC RPT 33 - Laserfiche WebLink

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CITY OF RIVERSIDE People Serving People HONORABLE MAYOR, CITY COUNCIL AND AGENCY MEMBERS DATE: November 19, 2002 ITEM NO: 33 SUBJECT: APPROVAL OF PROFESSIONAL SERVICES AGREEMENT WITH GRC REDEVELOPMENT CONSULTANTS FOR PROJECT FORMATION SERVICES AND DESIGNATION OF SURVEY AREA BOUNDARIES FOR THE PROPOSED HUNTER PARK/NORTHSlDE REDEVELOPMENT PROJECT AREA BACKGROUND: At the request of Agency staff, the firm of GRC Redevelopment Consultants ("GRC") has completed a study for the possibility of forming a new project area in the northern portion of the City. Because the process for forming a new project area is lengthy and expensive, the purpose of the study was to determine the feasibility of making such a commitment. CURRENTISSUE: Preliminary boundaries were given to GRC for study purposes. GRC conducted field investigations and interviews with key City personnel. The results of the initial field work and interviews show that significant economic and physical conditions of blight exist throughout much of the study area. A separate financial feasibility analysis was also conducted, which indicates sufficient tax increment growth in the study area to support redevelopment activities. Based on these preliminary findings, GRC has recommended that the Agency continue with the project area formation process for adoption of the proposed Hunter Park/Northside Redevelopment Project Area ("Project Area"). The first step in this process is adoption of the attached City Council resolution establishing the boundaries of a Survey Area (map attached). The resolution also calls for the Planning Commission to select Project Area boundaries from within the Survey Area boundaries and to formulate a Preliminary Plan for the Project Area in accordance with California Redevelopment Law. To carry out the project formation services, staff is proposing to contract with GRC in the amount of $112,100. GRC specializes in project formation, amendment and expansion services and has previously provided these services to the Agency in forming the Magnolia Center Project Area and amending the Casa Blanca and Arlington Project Areas. The firm's redevelopment expertise and familiarity with the study area, combined with their knowledge of Riverside, will expedite the plan formation process. The firm's direct experience with the expansion of the County's Highgrove Project Area is especially valuable. FISCALIMPACT: The GRC contract total is $112,100. There will be additional costs for filing fees, engineering services for preparation of a legal description, and interdepartmental services. The total estimated budget for the proposed Project Area formation is $135,000. Sufficient funds are available in the Economic Development Reserve account number 7235000-450100. Should the project formation effort be successful, these funds would be characterized as a loan, to be repaid over time from Project Area tax increment and returned to the Economic Development Reserve. In accordance with City Council Resolution No. 18714, the use of Economic Development funds for this 33-1