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Disposition and Development of 2 October 1, 2001 <br /> Marina Boulevard Properties <br /> DISCUSSION <br /> The purchase, resale, and redevelopment of the approximately 8.7-acre Yokota Nursery property <br /> is intended to extend auto retail sales on Marina Boulevard consistent with the Joint Project Area <br /> Redevelopment Implementation Plan. The development concept is for the Agency to close <br /> escrow on the property as discussed with the Agency Board on July 19, process a new parcel <br /> map in October, and then sell the newly reconfigured property to two auto dealership developers. <br /> The Yokota family will contract for the demolition of the existing buildings, and the Agency will <br /> pay for demolition, residential relocation, and environmental remediation in order to deliver a <br /> cleared site to the new owners. There are six main pieces to the project: the Lavery California <br /> transaction, the Batarse Family Trust transaction, public improvements, site clearance, the F.H. <br /> Dailey agreement, and financing. <br /> Lavery California Dealership Properties No. 1 LLC. The Disposition and Development <br /> Agreement ("DDA") with Lavery will develop the eastern portion with a Volvo dealership and <br /> service facility. The land will be sold for$25.30 per square foot, the Agency's approximate cost <br /> of acquisition. The new construction must comply with City site plan review standards. The <br /> property must remain an auto dealership for at least five years. If the franchise changes, the <br /> Agency must be consulted. There is a DDA and 33433 report explaining the Agency's costs <br /> associated with this transaction. <br /> Batarse Family Trust. The agreement with Batarse is to develop the western portion with a <br /> new auto dealership. The land will be sold for $20 per square foot, which is less than the <br /> Agency's cost of acquisition; the total land write-down amount is approximately $824,000. The <br /> } Agency will also contribute dealer assistance in an amount equal to half of the annual sales tax <br /> received from the new dealership, up to a total of$600,000. The new construction must comply <br /> with City site plan review standards. The property must remain an auto dealership for at least ten <br /> years. There is a DDA and a 33433 report with a supplemental re-use valuation explaining the <br /> Agency's costs associated with this transaction. <br /> The Batarse DDA also gives the developer the right to purchase a portion of 635 Marina <br /> Boulevard from the Agency at the Agency's actual acquisition costs for the property and requires <br /> the developer to develop a new and used auto dealership at 765 Marina. The developer will be <br /> reimbursed $100,000 by the Agency for his cost to widen Marina Boulevard. The reader board <br /> sign lease will be extended through 2037 as another part of the agreement. The Batarse DDA <br /> also specifies that Batarse foregoes the development rights for 846, 872, 945, and 936 Marina, <br /> for which the Agency will compensate him $160,000. The Batarse DDA requires 890 Marina to <br /> be sold to F.H. Dailey Chevrolet for$675,000. <br /> Public improvements. A road will be constructed between the two newly-created parcels to be <br /> sold to the dealerships. The new road will be improved to City standards with paving, sidewalk, <br /> drainage, and lighting. The road will extend approximately 500 feet south from Marina <br /> Boulevard. This public right-of-way for the road is the third new parcel to be created. The <br /> fourth new parcel is also about 500 feet long, from the end of the new road to the southern <br /> Yokota property edge, and is to be held for potential extension of the road within 18 months. If <br /> at that time development plans do not require the road to be extended, the fourth parcel can be <br />