04-27-2004 CC RPT 02 - Laserfiche WebLink

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People Serving People CITY OF RIVERSIDE AGENCY MEMORANDUM P. iverside ~lI-America Cit'~ 1998 HONORABLE MAYOR AND AGENCY MEMBERS DATE: April 27, 2004 ITEM NO: 2 SUBJECT: RECOMMENDATION REGARDING REQUEST FOR AUTHORIZATION TO APPRAISE COMMERCIAL PROPERTY LOCATED AT 3801 MISSION INN AVENUE: MERGED DOWNTOWN/AIRPORT INDUSTRIAL PROJECT AREA BACKGROUND: On December 18, 2001 the Redevelopment Agency approved an Owner Participation Agreement ("OPA") with Mr. H. J. "Joe" Zivnak to facilitate the completion of seismic improvements and roof replacement at the historic landmark theater. Other than certain selected improvements within the interior of the structure, the most significant structural and roofing modifications as contemplated under the OPA have not moved forward. At present, the building is occupied by ground level service commercial tenants. In addition, occasional movies/live performances have been scheduled in the building. However, the existing physical condition of the structure and the cost to fully rehabilitate and renovate the structure remains a significant obstacle to realizing the long-term vision for the use of the property. Because the Agency Board has priority objective to eliminate blight and encourage private development along the Market Street corridor and in the Downtown area in general, staff requests that the Agency Board consider initiating steps that may lead to acquisition of the property for redevelopment. To determine the market value of the property, staff recommends ordering an appraisal. CURRENT ISSUE: Combined, the three parcels, Assessor's Parcel Numbers 213-221-005, 006, and 007 total 32,538 s.f. (.75 acres). In its current condition the subject property, while an obvious structure of architectural merit, is not being utilized to its fullest potential as a catalyst for Downtown activity. The location of the Fox Theater at the Downtown crossroads of Mission Inn Aw.~nue and Market Street, and progress toward its rehabilitation, represents an important symbol for the future of Downtown. The building has the potential for generating evening and weekend activity as a regional destination in the heart of the commercial core. With this action, staff is only requesting authorization to complete an appraisal. Once it is completed and transmitted to the Agency, staff will return to the Agency Board for further direction. .FISCAL IMPACT: The cost of the appraisal is estimated at $15,000 plus costs for reimbursable expenses. Funds are available for such consultant work in Downtown/Airport Capital Projects Professional Services account number 2830802-421002 for the Merged Downtown/rAirport Industrial Project Area. ALTERNATIVES: To not appraise the property, which would prevent the Agency from assessing the feasibility of acquiring the property to promote redevelopment of the sile. 2-1