AgdaPkt 2002-12-09 - Laserfiche WebLink

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9. �-5 _ agreement that worked for all partios. The amended DDA presented to the Agency Board and City Council contains this new agreement between the developer, the City and the Redevelopment Agency. The Amended DDA being considered by the City and Agency on December 9, 2002 , The project now oonsists of only Block 1— the property bounded by Jefferson, Broadway, Middlefield and Winslow. The developer will build a two-level retail cinema project with approximately 85,000 square feet of retail shop and restaurant space on the ground level, a 20-screen, 4,200 seat theater on the second level, and an approximately 590 space parking garage underground on the project site that extends beneath the adjacent Middlefield road right-of-way. The Agency will pay for the garage. Parking is a major concem for the City and the developer. The City wants to ensure that the proper amount of parking is provided to enable the Downtown to function. The developerwants to ensure that sufficient parking exists to enable the cinema and the retail tenants to flourish. At a per-parking space cost of approximately $33,000 neither party wishes to require more parking than necessary. The previous DDA had a 108,000 square foot office building and 800 net new parking spaces. The new proposal eliminates the 108,000 square foot office building yet still develops 700 net new parking spaces. It should also be noted that 149 parking spaces have been added to downtown since the original project was proposed, giving a total of 849 net new spaces with the proposed public underground garage. The details on the parking agreement can be found in Attachment 7 to the DDA. In summary, in the Amended DDA the Agency will pay for the underground garage. The Agency will be responsible for acquisition budget costs that exceed $7,500,000, up to a cap of $11,000,000. If the acquisition costs exceed $11,000,000 the Agency has the right to terminate the agreement if it wishes. If the parties cannot agree on the public garage costs or the City and/or Agency cannot determine a feasible method of financing the garage, then the City or Agency have the right to terminate the agreement. Underthe prior DDA the value of Block 2— particularly the creation of the pad for the office building — paid for the costs to acquire the site. Under the Amended DDA the costs for Block 1— the underground parking and the acquisition costs — will still be off-set by the development of Block 2 but development of Block 2 will not be concurrent with the development of Block 1 as in the prior DDA. We reviewed some possible uses of Block 2 at our December 2, 2002 study session on the Downtown. This block will, when developed, contribute revenue to the City and Agency and off-set the Agency's costs ef Block One. WhaYs Next Assuming the Amended I�DA is executed in December, the developer will then prepare and present designs for the project. Concept designs have been reviewed but a more thorough final review wili allow the City to be assured that the project meets our quality standards. If agreement on the design details cannot be reached within four months of execution of the Amended DDA, any of the parties may terminate the agreement. - Assuming agreement is reached on the design, the Agency will prepare appraisals and 4