AgdaPkt 2003-02-24 - Laserfiche WebLink

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REPORT From the City To the Honorable Mayor and City Council February 24, 2003 Subject Initiation of Eminent Domain Proceedings of 870 Jefferson Avenue for the Downtown Underground Public Parking Garage and Retail- Cinema Project Recommendation Adopt a Resolution of Necessity initiating eminent domain proceedings for property located at 870 Jefferson Avenue (APN 052 - 366 -050) in the 2100 Block of Broadway (Block One) for purposes of constructing an underground public parking garage and retail- cinema project in the downtown area of Redwood City. The property owner(s) is Magnolia Tree, LLC, a Delaware limited liability company. Background On December 9, 2002, the City Council and Redevelopment Agency approved an Amended and Restated Disposition and Development Agreement (DDA) with BHV Innisfree Ventures I, LLC for development of an underground public parking garage and a retail- cinema project in the downtown area of Redwood City. The project boundary is the 2100 block of Broadway bounded by Broadway, Jefferson Ave. and Middlefield Road. The Redevelopment Agency owns one large parcel (Way -to -go building and parking lot) in the block. The Underground Public Parking Garage ( "the Project ") is part of the Downtown Retail cinema development and is a joint project by and between the City of Redwood City ( "City") and the Redevelopment Agency of Redwood City ( "Agency "). Initially, the Agency was to conduct the acquisition activities; and therefore, acquisition offers were made on behalf of the Agency. However, a lawsuit filed in 2002 raised an issue as to the Agency's power to condemn property. That lawsuit is pending. Although the staff and the attorneys for the City and the Agency are of the firm opinion that the Agency does, in fact, maintain its statutory condemnation powers, the staff recommends that the Project acquisition of the properties now be conducted by the City under its statutory condemnation powers. Thus, acquisition offers on behalf of the City were made on or about February 11, 2003. Negotiations are continuing and will continue on behalf of the City, but to date, settlement has not been reached and due to Project construction time constraints, it is necessary to consider the adoption by the City of a Resolution of Necessity (i.e., "Eminent Domain Resolution ") to acquire the Project properties and obtain possession by June 2003, in advance of a judgment, in order to meet the construction schedule. -1-