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8C Consent 2007 0319
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8C Consent 2007 0319
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Last modified
5/4/2007 12:40:45 PM
Creation date
3/14/2007 3:32:30 PM
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CM City Clerk-City Council
CM City Clerk-City Council - Document Type
Staff Report
Document Date (6)
3/19/2007
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PERM
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_CC Agenda 2007 0319
(Reference)
Path:
\City Clerk\City Council\Agenda Packets\2007\Packet 2007 0319
RDA Reso 2007-003
(Reference)
Path:
\City Clerk\City Council\Resolutions\2007
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<br />Throughout the past 10 years, several real estate developers, including the John Benjamin <br />Company, have investigated the feasibility of purchasing and redeveloping 326-340 MacArthur <br />Boulevard. Unfortunately, the speculation surrounding environmental contamination on the site, <br />along with the pre~development costs of conducting the appropriate studies to determine the <br />extent, if any, of the contamination, has been a redevelopment deterrent time and time again. <br />The current property owners are a couple who used to reside in the single family home and do <br />not have the financial resources to perform the necessary environmental assessment. <br /> <br />In recent months, the John Benjamin Company met with City staff to discuss their renewed <br />interest in purchasing and redeveloping 326-340 MacArthur. As a result of the discussion, staff <br />and the John Benjamin Company were in agreement that redevelopment at 326-340 would <br />continue to be generally unfeasible without Redevelopment Agency assistance to determine the <br />level of contamination, if any, prior to redevelopment of the site. Therefore, in an attempt to <br />facilitate potential redevelopment of 326-340 MacArthur Boulevard, Office of Business <br />Development and Environmental Services staff worked in conjunction with the Regional Water <br />Quality Control Board to establish a scope of work for an environmental assessment which will <br />determine the extent of environmental contamination at 326-340 MacArthur Boulevard. Once <br />such an assessment is completed, either development will be allowed to proceed per City zoning <br />requirements, or a framework for further environmental remediation efforts will be established. <br /> <br />It is estimated that a complete environmental assessment of 326-340 MacArthur Boulevard will <br />cost $40,000. As required by the Reimbursement Agreement, the John Benjamin Company will <br />be responsible for obtaining an option to purchase the property and retaining an environmental <br />consultant to conduct the assessment, the scope of which will be pre-approved by Office of <br />Business Development and Environmental Services staff. The John Benjamin Company will be <br />responsible for paying for the up-front costs associated with the assessment; however, per the <br />agreement, it may be reimbursed for approved costs up to a maximum $40,000. <br /> <br />Current Redevelopment A1!encv Policy <br />. Chapter 3.20.060 of the City of San Leandro Redevelopment Plan for the West San <br />Leandro/MacArthur Boulevard Redevelopment Proj ect area states that "the Agency may <br />take any actions that it determines are necessary and that are consistent with other state <br />and federal laws to remedy or remove a release of hazardous substances on, under, or <br />from property within the project area whether Agency owns that property or not". <br /> <br />Previous Redevelopment A!!encv Action(s) <br />N/A <br /> <br />City CounciJJRedevelopment A!!encv Committee Review and Action <br />The Business and Housing Development Committee received an update on this item on <br />Thursday, February 8, 2007 and were in general agreement that Agency assistance may help <br />bring a development project forward on the subject site. <br /> <br />Applicable General Plan Policy <br />. Policy 7.06 - Adaptive Re-use - Encourage private investment in vacant or underutilized <br />industrial and commercial real estate to adapt such property to changing economic <br />needs. <br /> <br />G:\DEP1\Office of Business Development\Files RDA \ WSL-MacArthur Area \326-340 MacArthur\Staff Report.RDA.Final.doc <br />
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