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Home My WebLink AboutR1-Redevelopment Agency Ii_VBLOPMBNT MJ8ICY......8T FOR ~/COUNCL ACTION 'lm: Glenda Saul, Executive Director Subject: BASELINE & MEDICAL CENTER DRIVE UDAG - ALEXANDER HAAGAN - NORTHWEST Dept: Redevelopment Agency Date: January 9, 1987 Synopsis of Previous Commission/Council action: 6/2/86 7/21/86 7/21/86 7/31/86 9/8/86 9/8/86 9/29/86 1/5/87 Authorized RFQ/RFP for development of Baseline & Muscott. Approved Exclusive Right with Alexander Haagan. First UDAG Hearing. Second UDAG Public Hearing. Approval in concept of terms and conditions of Haagan Shopping Center Agreement. Resolution 14929 & 14930 adopted authorizing issuance of tax allocation bonds. Received and filed report on UDAG status. Consideration of revised terms and conditions referred to Redevelopment Committee for recomendation. Recommended motion: (COMMUNITY DEVELOPMENT COMMISSION) a.) Move approval IN CONCEPT of revised terms and conditions of Development Agreement with Alexander Hasgan for shopping Center at Baseline & Medical Center Drive. b.) Move approval of extension of Exclusive Right to Negotiate with Alexander Haagan, with expiration to coincide with UDAG process. ,A&~ M . Signature Contact person: Glenda Saul 383-5081 6th Phone: YES Supporting data attached: Amount: $ N/A Ward: Project: Northwest FUNDING REQUIREMENTS: Date: No adverse Impact on City: mcil Notes: 19~2".'il. 1/5/87 ' ' Agenda Item No.\, ~ J The Redevelopment Committee .et on January 8, 1987 to review the revised terms and conditions of proposed Development Agreement with Alexander Haagan Development for the shopping center at Baseline and Medical Center Drive. The Committee recommends approval IN CONCEPT. Following UDAG approval the Development Agreement will be prepared and brought back to the Commission for approval. Background In September we notified the Commission that our application for an Urban Development Action Grant (UDAG) for Baseline and Medical Center Drive had made the funding list but was not funded this round. Making the "funding list" means that BUD considers the project worthy of funding. Projects are ranked by BUD and placed on the list in the order of their ranking. Once the budget amount is determined, projects are funded in the order of their ranking until the budget has been depleted. The next round starts January 1, 1987. Any additional information regarding our proposed project must be received by BUD between January 1 - 15, 1987 Staff has been working with Alexander Haagans office to refine the numbers previously submitted. The project has been reduced from a 14 acre site to a 10 acre site (Phase I). It is anticipated that the Development Agreement will include a Phase II (2-4 additional acres) and perhaps a Phase III (4 acres). Below is a sumary of the project as approved in concept on September 8, 1986 and thereafter submitted to UDAG along with the recommended revisions: APPROVED IN "CONCEPT" 9-8-96 RECOMMENDED REVISIONS "IN CONCEPT" DUE TO REDUCTION IN SIZE Agency o To acquire site and convey same (sale or lease) to developer No Change - exact terms of lease to be deterained after UDAG approval and to be incorporated into Development Agreement. o Pay for public improvements, estimated at approximately t2 million. (Through issuance of tax allocation bonds). No Change o Assist developer with No Change obtaining financing for shopping center 1942G/SL 1/5/87 City AS APPROVED IN CONCEPT 9/8/86 o Seek and provide UDAG funding and lend same to developer. o To waive and rebate those eligible items under the Enterprise Zone. Developer o To construct Shopping Center of approximately 155,500 Sq.Ft. to include a major food market, major drug store, financial institution, and satellite retail stores, home improvement center and junior department store. o Guarantee continual occupancy of center through executed leases. o To provide year round security and maintenance. o Guarantee the dept service for assisted financing by Letter for Credit. o Negotiate for repayment of UDAG loan. o Negotiate a particiption agreeaent with the Agency. RECOMMENDED REVISION No Change No Change 82,000 SF-home improvement center and Jr. Department Store have been eliminated on this 10 acre site - Haagan will consider for future expansion. No Change - City to consider relocation of its Police Community Services Office from 10th and Medical Center Drive to within proposed shopping center. - Developer to construct Community Service Office and provide same to the City at no charge - Developer to provide its own security. No Change No Change No Change 1942G/SL 1/5/87 Cost Estimates Development Land and Carry Less Private Tenant Investment Proposed Financing AS APPROVED IN CONCEPT 9/8/76 $13,745,813 1,750,000 $15,495,813 1,895,813 $13.600.000 o UDAG t 2,500,000 o Fee Waiver/Rebates 250,000 o Agency to by Land & Lease 1,750,000 to developer (Land, relocate, demolition) o Tax Increment Proceeds 2,000,000 Resolution of Issuance for not to exceed $3,500,000 approved 9/8/86. Tax Increments from NW to meet debt service. o Taxable Financing 6,600,000 Developer to guarantee debt service - Agency used as conduit to secure favorable interest rate o Equity 500,000 .13.600,000 RECOMMENDED REVISION $ 8,875,000 1,325,000 $10.200.000 $ 2,000,000 - Developer is also seeking EDA Grant funds. If UDAG is only approved for $1,000,000, the shortfall could be made up by the grant. 200,000 1,325,000 2,000,000 4,175,000 500,000 $10.200,000 1942G/SL 1/5/87 All necessary information will be submitted to UDAG tbe tbis week. We should receive notification by the last week in February. The current criteria that is used for ranking is existing impaction and distress and the age of existing housing. In competing with the eastern cities, California by its very nature would rank lower. We are hopeful that our impaction and distress ranking will be high enough to off-set our lower ranking in age of existing housing. If we are not funded this round we will remain on the "funding list" to be reconsidered again in April/May. Attached as additional information is: Map of Area Acquisition Summary 1942G/SL 1/5/87 ) - co co co co co 0 . CIO CIO CIO CIO CIO 0 ....... ....... ....... ....... ....... G .. N N N N N - fI) U N N N N N ~ fI)\ G G Ofl) ....... ....... ....... ....... ....... O)Q) ~ .a -w N N N N N GG C c.J - - - - - ..J ~ ::) . .c &n ~ ~ ~ ~ U N .- . .c N .... 0) N +1 . ~ CO CIO C"') ~ N 0) N ~ wI (I) fI) - - -\ - - - - CD Q) 0 ~(I) N ~ &n ~ .. G G Q) -0 - &n UG ~ ~ 0- 0c.J N N - C"') fI)~ - .. t- *' W .". 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