03-16-2004 CC RPT 09 - Laserfiche WebLink

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People Serving People Riverside CITY OF RIVERSIDE 1998 HONORABLE MAYOR AND AGENCY MEMBERS DATE: March 16, 2004 ITEM NO: 9 SUBJECT: SELECTION OF OWNER PARTICIPATION PROPOSAL FOR REDEVELOPMENT OF PROPERTY SITUATED AT THE SOUTHEASTERLY CORNER OF CALIFORNIA AVENUE AND MONROE STREET (CALIFORNIA SQUARE)--ARLINGTON REDEVELOPMENT PROJECT AREA BACKGROUND: Last October, Agency staff received a letter of interest from Regional Properties, Inc., concerning the potential redevelopment and re-use of an older neighborhood commercial center situated at the southeasterly corner of California Avenue and Monroe Street, known as California Square ("the Project"). However, since there are multiple property ownerships and businesses operating within the Project site, as such, the Community Redevelopment Law (Health & Safety Code Sec. 33339) requires that staff notify the affected property owners and businesses of their owner participation rights pursuant to Agency's Rules Governing Participation and Preferences by Property Owners and Business Occupants ("OP Rules') and provide them an opportunity to submit competing development proposals. Accordingly, on November 4, 2003, the Agency authorized staff to commence the owner participation process. On November 5, 2003, staff mailed out 26 letters of notification and solicitation for development proposals, with a proposal due date of January 9, 2004. As a result of the solicitation, competing proposals were received from California Plaza Development Partners, LLC, and NewMark Merrill Companies (which subsequently withdrew its proposal from the process) within the timeline provided in the letters. The firm of Keyser Marston Associates, Inc. ("KMA") was contracted to provide an independent evaluation of the two developer proposals and assist with developer selection. KMA first conducted a preliminary review of the developer submittals, followed by a list of additional questions to each developer participant, and finalized a standardized comparative pro forma analysis. After completion of the initial review, on March 8, 2004, staff convened an independent Ad Hoc Selection Committee ("Committee") to conduct developer interviews and select a developer proposal for recommendation to the Agency Board. CURRENT ISSUE: The issue before the Agency is consideration of the Committee's selection of an owner participation proposal for the proposed Project. Attached is a Memorandum from KMA evaluating both the key findings of the development proposals and the discussion of the Committee. It was the consensus of the Committee to recommend the selection of Regional Properties, Inc. ("Develope('). In accordance with the OP Rules, the Committee assessed the proposals based on a number of criteria (see Evaluation Criteria attached). The Committee determined that the development proposal submitted by Developer best satisfied the Evaluation Criteria. Specific areas noted by the Committee in its selection include: · Relevant experience and financial capability · Project feasibility, including market fit and suitability to the surrounding neighborhood · Experience with developing projects in a public/private partnership 9-1