REDEVELOPMENT AGENCY AGENDA REPORT
City of Anaheim
COMMUNITY DEVELOPMENT DEPARTMENT
DATE:NOVEMBER 28, 2006
FROM:COMMUNITY DEVELOPMENT DEPARTMENT
SUBJECT:SUPPLEMENTAL DISPOSITION AND DEVELOPMENT AGREEMENT (FIVE POINTS PROJECT) WITH CLEAN CITY, INC.
ATTACHMENT (Y/N):YESITEM # 02
201 S. Anaheim Blvd.
Second Floor
Anaheim, CA92805
Tel: (714) 765-4320
Fax: (714) 765-4331
F:\DOCS\ECONDEV\STAFFREP\LAS6B13AFivePointsSupplDDAAgency.DOC
AMENDED AND RESTATED DISPOSITION & DEVELOPMENT AGREEMENT (FIVE POINTS)
NOVEMBER 28, 2006
PAGE 1 OF 2
RECOMMENDATION:
Subsequent to a joint public hearing, that the Governing Board of the Anaheim Redevelopment Agency, adopt that certain Resolution of the Governing Board of the Anaheim Redevelopment Agency approving a Supplemental Disposition and Development Agreement by and between the Anaheim Redevelopment Agency and Clean City, Inc. regarding certain property at the southwest corner of Lincoln Avenue and West Street and making certain environmental and other findings in connection therewith.
DISCUSSION:
The FivePointsBuilding at the southwest corner of Lincoln Avenue and West Street (see attached map) represents the cornerstone of the Five Points Historic District and is the subject of an existing Amended and Restated Disposition and Development Agreement ("DDA") with the Agency. The DDA provides for the preservation,substantial interior and exterior historic rehabilitation in keeping with the Secretary of the Interior’s Standards for historic preservation, and re-use of the FivePointsBuilding for commercial and residential uses. The proposed Supplemental Disposition and Development Agreement (“Supplemental Agreement”) documents the economic terms of the sale of the additional land to Clean City, Inc. ("Developer") to accommodate a new commercial use not previously anticipated.
The Developer is finalizing negotiations with a tenant for the commercial portion of the FivePointsBuilding. The proposed use for the site requires additional land to accommodate parking requirements in excess of what was contemplated under the existing DDA. The Agency is the owner of adjacent property (“Supplemental Agency Parcels”) totaling approximately 13,851 square feet.
Key Business Terms
Under the Supplemental Disposition and Development Agreement, the Developer will purchase the supplemental Agency parcels for $475,000. The Agency’s independent real estate economist has determined that this represents Fair Market Price.The Agency incurred out of pocket expenditures of $420,800 to acquire the supplemental Agency parcels.
The purchase price will be paid to the Agency through a promissory note with the following terms: a) $10,000 principle and accrued interest payment per month; b) principle balance will accrue interest at 7% annually; and c) entire loan balance due and payable upon the second anniversary of the escrow closing date.
Project Summary
The Five Points Project (“Project”) entails the rehabilitation and re-use of a 7,191 square foot mixed-use residential and commercial building. The Project will include two residential rental units and approximately 4,000 square feet of commercial retail/ restaurant space to accommodate a casual dining restaurant. The Developer has commenced the rehabilitation, including relocating the building to its permanent location. Along with the requirement to construct and maintain all of the improvements on the site, including the landscaped area east of the building location, the Developer is required to incorporate the adjacent properties into the Project to support the parking. The Project is expected to be completed by late March 2008.
Project benefits include the elimination of blight, preservation of a locally historic significant resource, and enhancement of the gateway to both the Anaheim Colony Historic District and the Five Points Historic District.
IMPACT ON BUDGET:
There is no impact on the General Fund.
Respectfully submitted,Concur:
Brad L. HobsonElisa Stipkovich
Deputy DirectorExecutive Director
Attachments:
1.Resolution
2.Disposition and Development Agreement
3.Map