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4. CITY OF SAN LEANDRO REDEVELOPMENT AGENCY STAFF REPORT DATE: January 9, 2001 TO: John Jermanis, Executive Director APPROVED AND FORWARDED TO CITY COUNCIL 1 John J. Jer is Q(' Execu irector, �WOI Redevelopment Agency iaT28 BY: Debbie Potter, Redevelopment Administrator 4 SUBJECT PROJECT/PROJECT DESCRIPTION: Conduct a public hearing regarding approval of a Disposition and Development Agreement (DDA) with Anthony A. Batarse, Jr., Trustee under the Batarse Family Trust for development of a portion of the site at 635 Marina Boulevard and the sites at 846-872 and 936 Marina Boulevard for a Daewoo auto dealership. SUMMARY AND RECOMMENDATION It is recommended that, following the public hearing, the attached DDA which provides for the acquisition and development of a portion of 635 Marina Boulevard and 846-872 and 936 Marina Boulevard for a Daewoo auto dealership be approved by resolution. The Redevelopment Agency currently has possession of a portion of the property located at 635 Marina Boulevard and is scheduled to take possession of 846-872 and 936 Marina Boulevard on January 19, 2001. The Agency proposes to convey the properties to the Batarse Family Trust for development of a Daewoo facility. The DDA requires that the developer begin construction of improvements to landscape, pave and light the properties in support of new and ancillary used car sales (i.e., used cars taken in trade for new car sales) no later than 90 days after the Agency obtains a final order overruling any right -to -take objections and the title company has issued title insurance on the properties. The developer must complete those improvements no later than 120 days following construction commencement. The developer must also construct a 3,000 square foot sales facility on a portion of 635 Marina Boulevard. The developer has already paid the Agency the estimated acquisition cost of all of the parcels and will pay the entire actual acquisition cost, when that amount is determined. BACKGROUND Current City Council/Redevelopment Agency Policy Development of a Daewoo dealership is part of Phase III of the Marina Square Auto Center. In 1997, the City Council approved an ordinance amending the City's Zoning Ordinance establishing an S-Overlay District for Marina Boulevard. The S-Overlay calls for development that is compatible with new car sales and regional retail uses along Marina Boulevard between San Leandro Boulevard and the I-880. In addition, in 1999, the Redevelopment Agency