09-07-2004 CC RPT 11 - Laserfiche WebLink

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People Serving People CITY OF RIVERSIDE AGENCY MEMORANDUM Riverside ~lI-America Ct'~ HONORABLE MAYOR AND AGENCY MEMBERS DATE: September 7, 2004 ITEM NO: 11 SUBJECT: RECOMMENDATION REGARDING EXCLUSIVE RIGHT TO NEGOTIATE AGREEMENT WITH RIVERSIDE RENAISSANCE~ LLC REGARDING THE PROPOSED LA VALENCIANNA MIXED USE PROJECT; MERGED DOWNTOWN/AIRPORT INDUSTRIAL PROJECT AREA BACKGROUND: The Downtown Specific Plan identifies the addition of residential uses Downtown as among the most important Specific Plan implementation steps for the Agency to bring about the desired revitalization of Downtown. With the approval of Measure G, Downtown Fire Station Number 1 is programmed to be relocated out of the Downtown core area to a preferred site at Olivewood near 14th Street responding to a stated need for a larger fire station site. The new fire station is currently targeted for completion in March, 2006. This relocation will render the current fire station site vacant and an outstanding candidate for infill residential and/or mixed-use development as called for in the Specific Plan. CURRENT ISSUE: The La Valencianna project is proposed to include the development of approximately 100-120 residential units above a ground level of commercial space totaling approximately 45,000 sq. ft. All project-required parking and service functions will be located on-site in a subterranean parking facility or in combination with parking resources located on adjacent sites in support of the commercial uses. As a first step to negotiating the terms of a Disposition and Development Agreement for the La Valencianna project, staff is recommending the Redevelopment Agency Board enter into a Exclusive Right to Negotiate Agreement ("ERN") for the project. In sum, the ERN establishes a period of time within which Agency staff and project developer Riverside Renaissance LLC ("Renaissance") will move forward with the negotiation of business terms related to development of the projecL The ERN provides for an initial nine-month negotiating period, with an option to extend by mutual agreement of the parties in six-month increments for a period not to exceed twelve months with a maximum number of two extensions. During the negotiating period, Renaissance will provide to the Agency a deposit to be held by the Agency against costs incurred by the Agency in preparing the development agreement for the project. Renaissance is to further provide during the negotiating period the development concept and proforma, and additional information as necessary to fully evaluate the project and to determine business terms as they affect the Redevelopment Agency. FISCAL IMPACT: The ERN provides for a deposit amount to be received from Renaissance and to be held by the Agency as a deposit against costs incurred by the Agency in preparing the Redevelopment Agreement. Developer agrees that the Agency may withdraw and use funds from the deposit to pay for consulting, drafting, legal, and other reasonable expenses incurred by the Agency in the preparation of the Agreement. No direct fiscal impact to the Agency is anticipated as a result of entering into the ERN. 11-1