Laserfiche WebLink
Faced with the Governor's proposal, staff believes it prudent to enter into an Option <br /> Agreement that allows the City to acquire Agency -Owned Property at a nominal <br /> purchase price of $10 each. The City would then hold the property for redevelopment <br /> uses, future development, and /or disposition for redevelopment. The Option Agreement <br /> also allows the City to assign the property to a non - profit economic development <br /> corporation or a housing authority provided such corporation or authority assumes all <br /> rights, obligations, and responsibilities of the City. The Option Agreement provides the <br /> City and Agency the flexibility of determining when and how to shelter the real property <br /> assets owned by the Agency should the Governor's proposal to eliminate <br /> redevelopment agencies succeed. <br /> The attached resolutions authorize the Mayor and Executive Director to execute the <br /> Option Agreement and record the Memorandum of Option Agreement and, should the <br /> City exercise its option, to execute any documents in forms approved by the City <br /> Attorney and Agency Counsel, and to take any further actions necessary to carry out <br /> conveyance of the Agency Property to the City. <br /> Alternatives <br /> 1. The Council and Agency could elect not to approve the resolutions and thereby <br /> face the potential loss of current Agency real estate assets. <br /> 2. The Council could delay consideration of the resolutions and provide additional <br /> or different direction to staff, which could result in unknown consequences <br /> depending on when and how the Legislature approves the State Budget including <br /> elimination of redevelopment agencies statewide. <br /> Fiscal Impact <br /> The fiscal impact associated with execution of the Option Agreement is a cost of $10. If <br /> the City Manager exercises the City's option, the fiscal impact will be $10 for each <br /> property purchased. <br /> A <br /> Robert B. Bell, Interim City Manager <br /> Attachments <br /> 1. Council Resolution Approving and Authorizing the City Manager to execute an Option <br /> Agreement between the City of Redwood City and the Redwood City Redevelopment <br /> Agency for Real Property Owned by the Redwood City Redevelopment Agency. <br /> 2. Agency Resolution Approving and Authorizing the Executive Director to execute an <br /> Option Agreement between the City of Redwood City and the Redwood City <br /> Redevelopment Agency for Real Property Owned by the Redwood City Redevelopment <br /> Agency. <br /> 3. Option Agreement <br /> Page 2 <br /> S: \STAFF REPORTS \Redwood City Staff Report for RDA Option Agreement(2).doc <br />