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People Serving
<br />People
<br />
<br /> CITY OF RIVERSIDE
<br />
<br />AGENCY MEMORANDUM
<br />
<br />tLiverside
<br />
<br />ill-America Ci~
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<br />HONORABLE MAYOR AND AGENCY MEMBERS
<br />
<br />SUBJECT:
<br />
<br /> DATE: September 14, 2004
<br /> ITEM NO: 22
<br />
<br />RECOMMENDATION REGARDING FIRST AMENDMENT TO AMENDED AND
<br />RESTATED RELOCATION SETrLEMENT AGREEMENT: TAMALE FACTORY
<br />RESTAURANT: MERGED DOWNTOWN/AIRPORT INDUSTRIAL PROJECT AREA-
<br />
<br />SUPPLEMENTAL APPROPRATION
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<br />BACKGROUND:
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<br />On November 6, 2001, the Redevelopment Agency approved the Purchase and Sale Agreements for the
<br />acquisitions of properties located at 3834, 3866, and 3870 Main Street, and the conveyance of said
<br />properties to UCR for the Culver Center fer the Arts. Concurrently, the Agency authorized funding for
<br />environmental studies, title, and escrow fees;, legal and other consulting services, filing fees, appraisals and
<br />relocation costs of the sole tenant within the building, The Tamale Factory Restaurant.
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<br />Acting as staff to the Redevelopment Agency, the Real Property Services division retained Pacific Relocation
<br />Consultants ("PRC") to determine the amount of relocation benefits that Charles and Naomi Avila, the owners
<br />of Tamale Factory, would be eligible to receive. PRC concluded that the Tamale Factory was eligible to
<br />receive $550,000, which included the cost to relocate from the current location at 3834 Main Street, and re-
<br />establish their business, including furniture, fixtures, equipment and/or loss of goodwill associated with the
<br />business. Pursuant to a Memorandum of Understanding ("MOU") by and between the Redevelopment
<br />Agency and UCR approved by the Agency on December 18, 2001, UCR is to assist with up to 50 percent of
<br />the relocation costs of the Tamale Factory, up to a maximum of $250,000.
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<br />On January 8, 2002, the Agency approved the Relocation Settlement Agreement, which provided for the
<br />Avila's to receive the above-referenced $550,000 in full satisfaction of the Agency's obligations under the
<br />Relocation Settlement Agreement. Subsequently, the Agency worked directly with the Avila's to identify a
<br />new site for the relocation of the Tamale Factory business. Following the analysis of several alternatives, the
<br />Avila's expressed a direct interest in the vacant lot located at 3663 Main Street and formerly known as the
<br />Pietro/Sinkhorn lot, immediately north of the Loring Building. On October 15, 2002, the Agency considered
<br />and approved a Purchase and Sale Agreement for the conveyance of the subject relocation for the
<br />determined fair market value of $93,500. To comply with the terms of the property conveyance, which among
<br />other things required the reservation of a pedestrian paseo connecting the Main Street pedestrian mall with
<br />the future pedestrian improvements as part of the proposed Villaggio project, as well as to ensure compliance
<br />with Planning Department design and development standards, an increase in construction-related costs of
<br />$60,000 was identified by the Avila's. Therefore, also on October 15, 2002, the Agency considered and
<br />approved the Amended and Restated Relocation Settlement Agreement which increased the total relocation
<br />benefits to $610,000, also requiring the Avila's to relocate the business to the subject Main Street site.
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<br />The new Tamale Factory project proposes the construction of a three-story building of approximately 7,475
<br />square feet in a Spanish Colonial Revival architectural style, with the restaurant on the ground floor, banquet
<br />facilities on the second floor, and offices on the third floor. The scope of development includes the
<br />construction of the pedestrian paseo improvements connecting the Main Street pedestrian mall with future
<br />pedestrian improvements as part of developments to the immediate west.
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<br />22-1
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