3B Public Hearing 2012 0521 - Laserfiche WebLink

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To: Cynthia Battenberg May 1, 2012 Subject: Village Marketplace Page 2 The Project will consist of the development of a first -class retail project constructed with high quality building materials, which will include public amenities including a fountain, outdoor dining areas, high - quality fagade improvements, landscaping, paving and signage. Current design concepts for the Village Marketplace, as the planned retail center is known, envision a high - quality, Mediterranean -style neighborhood retail center of roughly 28,000 square feet, anchored by a specialty grocery store. As part of the Project, Developer will construct, at Developer's expense, a public art component that may include a fountain, sculpture, mural or other art form. Developer will also reconstruct the sidewalks surrounding the Property, will add street trees along East 14 Street, and will replace street trees on Dolores Avenue and Juana Avenue as detailed in the approved Site Improvement Plans for the Project. The Developer will also install and maintain bike racks on the Property, including multiple bike racks near the outdoor seating area to be created on the southeast corner of Juana and East 14 Street. The Agreement also requires the Developer to comply with the state prevailing wage laws. The Agreement requires the Developer to ensure that a full- service restaurant is opened on the Property within the earlier of 24 months following the date upon which City issues a certificate of occupancy, or 48 months following the effective date of the Agreement. The approximate size of the restaurant is 3,995 sq. ft. This requirement results in the developer funding additional tenant improvements. Also per the Agreement, Developer will commence construction of the Project not later than 120 days following the closing date, and Developer will diligently pursue the construction work to completion in order to allow City to issue a final certificate of occupancy within 18 months following commencement of construction, and no later than 24 months following the effective date of the Agreement. Estimated Reuse Value /Residual Land Value The reuse value of the site is defined as the highest price in terms of cash or its equivalent that a site or development right is expected to bring for a specified use in a competitive open market, subject to the covenants, conditions, and restrictions imposed by the Agreement. The Agreement contains specific covenants and conditions designed to ensure that the conveyance of the Property will be carried out in a manner to achieve the City's objectives, standards, and criteria. KMA estimated the reuse value of the Site based on the anticipated development economics of the proposed Project. The private investment supported by the anticipated income is compared with the estimated development costs. The analysis uses the 001 -002; jf 19096.040