AgdaPkt 2003-03-24 - Laserfiche WebLink

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REPORT I E � To the Honorable Mayor and City From the Citv March 24, 2003 Subject Appropriation of funds for property acquisition of properties located in the Underground Public Parking Garage and Downtown Retail- Cinema project site Recommendation Approve a bridge loan from the Redwood City Water, Internal Services, and Self - Insurance funds for $8 million to the Redwood City Capital Projects fund in order to allow the site acquisition process to continue on a fast track schedule. A portion of this loan will be refunded by the developer at the time the air rights for the private portion of the project (the retail- cinema building) are transferred to the developer. Background The acquisition of the properties in the 2100 Block of Broadway (western block) is proceeding on a fast track schedule in order to allow the construction of the Underground Public Parking Garage to begin prior to next year's rainy season (03 -04). Since the first phase of the construction is for the public portion of the project, the City intends to advance the funds for the site acquisition. The City will retain the underlying fee title to the land and will own the garage. These funds will then be partially refunded ($7.5 million per the Amended and Restated Dispostion and Development Agreement (DDA)) by the developer in exchange for the air rights over the underground public parking garage to construct the building that will contain the ground floor retail and second floor cinema multiplex. On February 24, 2003, the City Council approved the Resolutions of Necessity to begin eminent domain proceedings for the six properties contained within the block. The City's eminent domain attorney immediately filed with the court on February 25, 2003. At that time, it was necessary to deposit with the court the exact amount of the appraised fair market value (including the improvements to the realty) for each of the properties in question. This amount was $7,919,485. Approval of this loan formalizes the appropriation of these funds. Alternative If the loan between funds is not approved, the project would be delayed until such time as another source of funding can be determined. Fiscal Impacts The funding for the site acquisition is a loan. The developer is committed to refund $7.5 million of this money per the terms of the Amended and Restated Disposition and Development Agreement at the time the air rights to build the project are conveyed to