AgdaPkt 2011-12-12 - Laserfiche WebLink

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8. C. - Page 2 short and long term benefits to the City, both in terms of actual land value, and in the less precise metrics of increased sales and property tax revenues. Upon the selection of a preferred team, a final agreement should be ready for Council review and approval by approximately June, 2012. Design development, environmental analysis, and Planning review is expected to take about one year, with the entire development conceivably being completed within 30 to 36 months from now. Critical design issues will include the potential costs of relocating the portion of Redwood Creek that bisects Block 2 and the timing and construction of Depot Circle. Also, depending on the final developer selected, the viability of the market for the selected product, including the requirement of lenders or other financing devices, will dictate the timing of the project and the costs of development. It should also be noted that, concurrent to the review of the submittals, staff is in discussions with Century Theatres and the owner of the cinema building to amend the Parking Facilities Agreement. The envisioned amendment will allow for a more flexible and creative approach to replacing public parking in the area and providing parking for new structures on Block 2. One of the most critical issues for the successful development of the Block 2 site is the relocation of the culvert housing Redwood Creek. The culvert cuts diagonally across the northern third of the site, thereby limiting the ability to effectively construct a building or subterranean parking. To maximize the value of the property and to expedite the construction of new buildings, staff recommends that the City initiate design of the project to relocate the culvert and include the relocation and reconstruction project in the FY 2012 Capital Improvement Program. At this very early conceptual level, staff anticipates the project to cost approximately $2,000,000. Construction of this phase of work should begin during the summer of 2012 to enable the development of Block 2 to proceed in either late 2012 or early 2013. At this time, the primary cost associated with exploring these development opportunities is staff time. The proposals are also reviewed by Keyser Marston, who are under contract with the City to provide advice on financial and other deal point issues. Staff's intention is that the development results in significant net-positive revenue for the City. ALTERNATIVES Direct staff to request proposals from another development team or teams. FISCAL IMPACT The fiscal impact will vary depending on the nature of the business terms that are agreed to with the City's development partners. Funding for the design of the culvert relocation is available in the Capital Improvement Budget. ENVIRONMENTAL REVIEW Not a project.