AgdaPkt 2002-12-09 - Laserfiche WebLink

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I� � concludes that the consideration provided by the developer is not less than the fair re-use value of the Agency-owned parcel to be conveyed, at the use and with the covenants and conditions and development costs authorized by the DDA. Tim Kelly of Keyser Marston, who prepared the Summary Report, will be available to answer any questions you may • have: Action Three: Consideratfon of the Amended DDA Both the City and the Redevelopment Agency are signatories to this agreement and so both bodies must act on it. Separate resolutions have been prepared for the City and the Redevelopment Agency. History of the Project A chronology of events related to this project is listed in Attachment 4 to this report. This chronology starts in May 1997 and extends to December 2002. The DDA Approved in January 2001 in surnmary, what follows is the broad outline of the agreement reached in January 2001. This report refers to this document as the "prior DDA" to distinguish it from the Amended DDA now being presented to Council and the Redevelopment Board. • Block 1(the property bounded by Jefferson, Broadway, Middlefield and Winslow) was to contain approximately 80,000 square feet of ground floor retail space and a 20-screen multiplex on the second level, containing 4,200 seats. . Block 2(bounded by the railroad track, Winslow and Jefferson) would contain a 108,400 square foot office building and a parking garage with at least 1,000 spaces (approximateiy 800 net new spaces). The Developer was to fund $14 miilion to pay for the purchase of the privately held properties on Blocks 1 and 2, which included costs to acquire, relocate businesses, purchase fixtures and equipment, and pay for goodwill. The Agency was to convey the "Way-to-Go" parcel on Block 1 as part of the consideration for the Developer to fund $20 million to construct the 1,000 space public parking structure on City-owned land on Block 2. Also, as part of the consideration for the $20 millian, the Agency/City was to create a 32,000 square foot parcel on Block 2, including conveyance of approximately 15,000 square feet of the City owned land, for the Developer to construct the aforementioned office building. This approach to the project relied on the office component to subsidize the site acquisition for Block 1 and to pay for the structured parking. By mid-2001 the nationwide office market was in a slump, and in the Bay Area office buildings had become impossible to finance. It was clear that the agreement reached in the prior D�A would have to be renegotiated. The Redevelopment Agency, City and developer therefore worked to find an amended 3