8H Consent 2009 0504 - Laserfiche WebLink

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1550 East 14`b Street -Page 2 of 3 Apri127, 2009 unanimously to the settlement terms which included the Redevelopment Agency's purchase of the Site for $b.175 million and Norcal's demolition of the building prior to close of escrow. The attached Purchase and Sale Agreement details this and other negotiated settlement terms. The Site will be used for temporary replacement parking during the 18-24 month demolition and rebuilding of the downtown parking garage located between Estudillo and Callan Avenues. Following close of escrow, the Agency will repave and landscape the Site to make it available in the fall to individuals who currently lease space in the Estudillo/Callan Garage. Thereafter, the Agency will pursue potential development opportunities in accordance with the TOD Strategy. Site acquisition will be funded as follows, based on current fund balance information: Joint Project Area Fund Balance $3,500,000 Joint Project Area 2008 TABS -Parking Garage 200,000 West San Leandro/MacArthur Blvd. Project Area Loan 2,475,000 $6,175,000 With the significant additional FY 2008-09 Joint Project Area expenditures, there is insufficient funding in the Joint Project Area to purchase the Site. Staff recommends $3.5 million of the purchase price be funded from the $4.4 million June 30, 2009 projected Joint Project Area Fund Balance. Staff also recommends that $200,000 of the purchase price be funded from the approximately $12 million set aside for construction of the Estudillo/Callan Garage as the Site is necessary for temporary replacement parking needed for the project. The remaining $2.475 million in funding is recommended to come from a loan from the West San Leandro/MacArthur Boulevard Project Area (WSL Project Area). Interest would be paid at the Local Agency Investment Fund (LAIF) rate and due and payable in ten years or 30 days after the Agency closes escrow for the sale of the Site for development, whichever is earlier. The WSL Project Area's fund balance as of June 30, 2008 was $4.177 million and the projected fund balance as of June 30, 2010 is $3.73 million. The attached Memorandum of Understanding details the terms of the inter-project area loan agreement. Current City Council Policy -The Transit Oriented Development Strategy adopted by the Council in September 2007 identified development of 1550 East 14~' Street into a mixed use development as a priority. Previous City Council Actions - The Agency reviewed this item in closed session on Apri120, 2009 during which time the Council authorized the City Attorney to enter into a settlement agreement to resolve the litigation. City Council Committee Review and Action -Not Applicable Applicable General Plan Policy -Not Required Permits and/or Variances Granted -Not Required