04-15-1997 RA RPT 07 - Laserfiche WebLink

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Item No:. 7 Date: April 15, 1997 To: Redevelopment Agency Subject: Request Authorization to Provide Relocation Assistance to Modern Tattoo located at 1450 University Avenue in the University Center Shopping Center at Cranford and University Avenues - Central Industrial Project Area Background Over the past several years, the Agency has been vigorously pursuing various revitatization strategies for University Avenue with the goal of spurring self-sustaining private sector investment. For example, the City's Public Works Department in conjunction with the Public Utilities Department and the Redevelopment Agency have recently completed the University Avenue Streetscape Improvements proiect which included improvements from the 60/215 Freeway to Ottawa Avenue. The investment for the streetscape proiect totaled over $4.2 million. Similarly, the Agency's efforts at bringing about the University Village development have been aimed at creating a major anchor for University Avenue retail business. At least in part because of these efforts, businesses on the Avenue have also invested substantial resources into facade improvements, renovations and new construction as seen in proiects such as Magnuson Tire, Taco Bell, Courtyard by Marriott, and SuperTrak Auto. Current Issue Recently, a new business, Modern Tattoo, began to move into University Center located at the corner of Cranford and University Avenues. As a result of discussions between Agency staff, the business owner, Moses Sarinana, and the shopping center's management, a proposal has been advanced to terminate final tenant improvements so that Modern Tattoo can relocate to an alternate location. Relocation is seen as desirable by the University Center's management, which has hopes of attracting larger tenants because of the success of University Village. So, too, the business owner has hopes of finding an equally suitable or better location. To make the relocation possible, University's Center's management has agreed to lease termination concessions; the business owner has agreed to absorb losses with business startup; and together they have asked for relocation assistance from the Agency in the amount of $9,000 for partial offset of the costs associated with the relocation of the business to a new location. In light of the investment on University Avenue, both the management of the shopping center and the owner/operator along with Redevelopment Agency staff believe that the relocation of the business would be mutually beneficial for all parties. In a related matter, it should be noted that an amendment to the Zoning Ordinance concerning tattoo and body piercing salons has been initiated by the City Council. Therefore, although staff is seeking authorization to offer $9,000 in relocation assistance, the offer of assistance and subsequent appropriation of funds should not occur until such time as amendments to the Zoning Code are in place.