09-21-2004 CC RPT 10 - 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 21, 2004 ITEM NO: 10 SUBJECT: REQUEST AUTHORIZATION TO COMMENCE OWNER PARTICIPATION PROCESS AND CONDUCT APPRAISAL WORK IN CONNECTION WITH THE PROPERTIES SITUATED AT THE NORTHEAST CORNER OF MAGNOLIA AVENUE AND VAN BUREN BOULEVARD--ARLINGTON REDEVELOPMENT PROJECT AREA BACKGROUND: Agency staff has received a conceptual proposal for a mixed-used development at the northeast corner of Magnolia Avenue, Van Buren Boulevard and Hayes Street in the Arlington Village (Exhibit "A" attached). World Premier Investments ("Developer"), proposes a village design project, which includes 21,000 sq. ft. of retail shops, 18,400 sq. ft. of office, 6,000 sq. ft. of restaurant, and 14,000 sq. ft. of pharmacy/drugstore ("Proposed Project"). The Proposed Project would include demolition and reconstruction of a portion of the Arlington Village fronting the north side of Magnolia and development of a pharmacy and restaurants to the rear of the Village fronting Van Buren (Exhibit "B" attached). Objectives of the Proposed Project include creating a strong sense of community in Arlington by re- establishing the traditional Arlington business district; assisting in improving, upgrading and expanding existing local businesses; and promoting a comprehensive planning, redesign, reconstruction and/or rehabilitation of the Arlington Village. CURRENT ISSUE: Agency staff has commenced preliminary discussions with the Developer regarding appropriate procedures and terms by which the Agency could help facilitate the Proposed Project. However, because there are multiple ownerships within the Proposed Project, prior to entering into any agreement, Community Redevelopment Law requires that staff notify the affected property owners and businesses of their ownership participation rights pursuant to the Rules Governing Participation and Preferences for Owners, Operators of Businesses and Tenants ("OP Rules") and provide them an opportunity to submit competing development proposals ("OP Process"). Notification to the affected property owners and businesses of their owner participation rights does not commit the Agency to participating in the Proposed Project, either with the Developer or with any interested property owner. Should the Agency receive a qualified development proposal from an affected property owner during the OP Process, staff will return to the Agency Board for its review and consideration. Also, any future agreement with the Developer following the OP Process will likewise be brought before the Agency Board. In order to help evaluate the feasibility of Agency involvement in the Proposed Project, staff recommends concurrently commencing acquisition cost estimations, which is essential for subsequent project evaluation and deal structuring. This would include property appraisals and relocation estimates. Costs of these studies will be borne by the Developer. 10-1