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REDEVELOPMENT AGENCY ."QUEST FOR COMMISSION/COUNCIL ACTION
'm: 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 #4929 & #4930 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 Haagan 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.
/6&~ ~
. Signature
Contact person:
Supporting data attached:
Glenda Saul
Phone: 383-5081
YES
6th
Ward:
Amount: $
N/A
Project: Northwest
FUNDING REQUIREMENTS:
Date:
mcil Notes:
No adverse I mpact on City:
19'.2G/SL
1/5/87
AQenda Item No. J
The Redevelopment Committee met 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 HUD 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 HUD 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 determined after UDAG
approval and to be incorporated
into Development Agreement.
o
Pay for public improvements,
estimated at approximately $2 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
o
o
o
AS APPROVED IN CONCEPT 9/8/86
City
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.
Guarantee the dept service for
assisted financing by Letter for
Credit.
Negotiate for repayment of UDAG loan.
Negotiate a particiption agreement 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
o UDAG
o Fee Waiver/Rebates
o Agency to by Land & Lease
to developer (Land,
relocate, demolition)
o Tax Increment Proceeds
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
Developer to guarantee debt
service - Agency used as
conduit to secure favorable
interest rate
o Equity
AS APPROVED IN
CONCEPT 9/8/76
$13,745,813
1,750,000
515,495,813
1,895,813
$13.600.000
5 2,500,000
250,000
1,750,000
2,000,000
6,600,000
500,000
i13.600.000
RECOMMENDED
REVISION
$ 8,875,000
1,325,000
$10.200.000
5 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 the this 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
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