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HomeMy WebLinkAboutSA_2016-06-14_Agenda PacketSPECIAL MEETING CITY OF ATASCADERO CITY COUNCIL IN THE CAPACITY OF SUCCESSOR AGENCY TO THE COMMUNITY REDEVELOPMENT AGENCY OF ATASCADERO FOR REDEVELOPMENT AND HOUSING PURPOSES1 AGENDA Tuesday, June 14, 2016 (Immediately following the City Council Regular Session) City Hall Council Chambers, 4th floor 6500 Palma Avenue Atascadero, California (Enter from Lewis Avenue) REGULAR SESSION – CALL TO ORDER: ROLL CALL: Mayor O’Malley Mayor Pro Tem Moreno Council Member Fonzi Council Member Kelley Council Member Sturtevant APPROVAL OF AGENDA: Roll Call 1 On January 10, 2012, the Atascadero City Council adopted Resolution No. 2012-002, electing to serve as the successor to the Community Redevelopment Agency of Atascadero for redevelopment purposes, and also elected to retain the housing assets and functions previously performed by the Community Redevelopment Agency of Atascadero. A. CONSENT CALENDAR: 1. Successor Agency Draft Action Minutes – January 26, 2016  Recommendation: Council in the capacity of the Successor Agency to the Community Redevelopment Agency of Atascadero approve the Successor Agency Draft Action Minutes of January 26, 2016. [City Clerk] COMMUNITY FORUM: (This portion of the meeting is reserved for persons wanting to address the Board on any matter not on this agenda and over which the Board has jurisdiction. Speakers are limited to three minutes. Please state your name and address for the record before making your presentation. The Board may take action to direct the staff to place a matter of business on a future agenda. A maximum of 30 minutes will be allowed for Community Forum, unless changed by the Board.) B. PUBLIC HEARINGS: None C. MANAGEMENT REPORTS: 1. Suspension of Creekside Building RFQ Process  Fiscal Impact: If the Successor Agency is eventually successful in selling the Creekside Building to the developer, there would be an overall expected savings for the Successor Agency.  Recommendations: Successor Agency Board: 1. Approve the suspension of the Request for Qualifications (RFQ) process for a real estate broker to facilitate the disposition of the Creekside Building; and 2. Direct staff to take all actions necessary to enter into negotiations with Pacific Management and Development Corporation and, if negotiations prove successful, return to the Successor Agency with a purchase and sale agreement for the property that will be reviewed and acted on by the Agency Board. [Administrative Services] BOARD ANNOUNCEMENTS AND REPORTS: (On their own initiative, the Board Members may make a brief announcement or a brief report on their own activities. Board Members may ask a question for clarification, make a referral to staff or ta ke action to have staff place a matter of business on a future agenda. The Board may take action on items listed on the Agenda.) D. ADJOURNMENT ITEM NUMBER: SA A-1 DATE: 06/14/16 Atascadero Successor Agency January 26, 2016 Page 1 of 3 SPECIAL MEETING CITY OF ATASCADERO CITY COUNCIL IN THE CAPACITY OF SUCCESSOR AGENCY TO THE COMMUNITY REDEVELOPMENT AGENCY OF ATASCADERO FOR REDEVELOPMENT AND HOUSING PURPOSES1 DRAFT MINUTES Tuesday, January 26, 2016 (Immediately following the City Council Regular Session) City Hall Council Chambers, 4th floor 6500 Palma Avenue Atascadero, California REGULAR SESSION – CALL TO ORDER: Mayor O’Malley called the meeting to order at 11:04 p.m. ROLL CALL: Present: Council Members Kelley, Fonzi, Sturtevant, Mayor Pro Tem Moreno, and Mayor O’Malley Absent: None Others Present: City Clerk Marcia McClure Torgerson 1 On January 10, 2012, the Atascadero City Council adopted Resolution No. 2012-002, electing to serve as the successor to the Community Redevelopment Agency of Atascadero for redevelopment purposes, and also elected to retain the housing assets and functions previously performed by the Community Redevelopment Agency of Atascadero. ITEM NUMBER: SA A-1 DATE: 06/14/16 Atascadero Successor Agency January 26, 2016 Page 2 of 3 Staff Present: City Manager Rachelle Rickard, Administrative Services Director Jeri Rangel, Community Development Director Phil Dunsmore, Public Works Director Nick DeBar, Police Chief Jerel Haley, Fire Chief Kurt Stone, City Attorney Brian Pierik, and Deputy City Manager Lara Christensen. APPROVAL OF AGENDA: MOTION: By Council Member Sturtevant and seconded by Council Member Kelley to approve the agenda. Motion passed 5:0 by a roll-call vote. A. CONSENT CALENDAR: 1. Successor Agency Draft Action Minutes – September 22, 2015  Recommendation: Council in the capacity of the Successor Agency to the Community Redevelopment Agency of Atascadero approve the Successor Agency Draft Action Minutes of September 22, 2015. [City Clerk] MOTION: By Mayor Pro Tem Moreno and seconded by Council Member Sturtevant to approve the Consent Calendar. Motion passed 5:0 by a voice vote. COMMUNITY FORUM: None B. PUBLIC HEARINGS: None C. MANAGEMENT REPORTS: 1. Approval of Recognized Obligation Payment Schedule 16-17 July 1, 2016 – June 30, 2017  Fiscal Impact: None for this action.  Recommendation: Successor Agency Board approve the Draft Recognized Obligation Payment Schedule (ROPS) for the period of July 1, 2016 through June 30, 2017 (ROPS 16 -17), including the Administrative Budget, pursuant to Health and Safety Code. [Administrative Services] Administrative Services Director Jeri Rangel gave the staff report and answered questions from the Council. PUBLIC COMMENT: None ITEM NUMBER: SA A-1 DATE: 06/14/16 Atascadero Successor Agency January 26, 2016 Page 3 of 3 MOTION: By Mayor O’Malley and seconded by Mayor Pro Tem Moreno to approve the Draft Recognized Obligation Payment Schedule (ROPS) for the period of July 1, 2016 through June 30, 2017 (ROPS 16-17), including the Administrative Budget, pursuant to Health and Safety Code. Motion passed 5:0 by a roll-call vote. BOARD ANNOUNCEMENTS AND REPORTS: None D. ADJOURNMENT Mayor O’Malley adjourned the meeting at 11:08 p.m. MINUTES PREPARED BY: ______________________________________ Marcia McClure Torgerson, C.M.C. City Clerk ITEM NUMBER: SA C-1 DATE: 06/14/16 Successor Agency to the Community Redevelopment Agency of Atascadero Staff Report – City Manager’s Office Suspension of Creekside Building RFQ Process RECOMMENDATIONS: Successor Agency Board: 1. Approve the suspension of the Request for Qualifications (RFQ) process for a real estate broker to facilitate the disposition of the Creekside Building; and 2. Direct staff to take all actions necessary to enter into negotiations with Pacific Management and Development Corporation and, if negotiations prove successful, return to the Successor Agency with a purchase and sale agreement for the property that will be reviewed and acted on by the Agency Board. DISCUSSION: Background On May 12, 2015, the Successor Agency approved the Property Disposition and Marketing Plan, prepared by Rosenow Spevacek Group (RSG), for the Creekside Building Located at 6907 El Camino Real, Atascadero. The former Community Redevelopment Agency purchased the real property located at 6907 El Camino Real, otherwise known as the Creekside Building, in late 2004. The purchase of property had been identified as a benefit to the Redevelopment Project Area and was consistent with the former Agency’s Five Year Implementation Plan to revitalize downtown and encourage rehabilitation of deteriorated structures. Due to the damaged caused to Historic City Hall by the 2003 San Simeon Earthquake, and the need for temporary City Hall offices until the Historic City Hall was repaired, t he City and the former Agency negotiated a lease to rent the Creekside Building. The building acted as City Hall from late 2005 to August of 2013. Following the 2012 dissolution of all redevelopment agencies in California, the Successor Agency was required to prepare and approve a Long-Range Property Management Plan (LRPMP) that addresses the disposition and use of the real properties of the former redevelopment agency. The Creekside Building is the one significant piece of real property owned by the Successor Agency and the LRPMP ITEM NUMBER: SA C-1 DATE: 06/14/16 proposed the sale of this building. In July 2013, both the Successor Agency and the Oversight Board approved the LRPMP. In January 2014, the Successor Agency received a response from the Department of Finance, giving the final approval of the LRPMP. In preparation for disposal, the Successor Agency entered into a contract with RSG to conduct a market analysis and explore a range of potential development options to maximize value of the property. RSG completed the market analysis, identified feasible reuse and development options for the property in order to identi fy potential buyers, and recommended a marketing plan to target appropriate buyers under the development options. The three financially feasible development options identified by RSG for the Creekside Building consist of 1) office use for 100% of the building, 2) mixed use of office space and indoor recreational use, and 3) mixed use of offices space and a public marketplace concept. In order to maximize the development of the Creekside Building, RSG recommended that a qualified real estate broker with proven experience and expertise with office and retail properties be retained through a public Request for Qualifications (RFQ) process. The RFQ was to also provide an additional commission incentive to the selected broker for the successful sale to a progressive and creative property owner who would improve the property as a mixed use office space/public marketplace concept or a mixed use office/recreational space concept. Following the May 2015 approval of the Property Disposition and Marketing Plan by the Successor Agency, staff followed the City’s Purchasing Policy to develop and prepare the RFQ for issuance. At this time, the RFQ has been drawn up and is ready to be distributed. Analysis Prior to the planned release of the RFQ, staff was approached by Pacific Management & Development Corporation (PM&D). PM&D has expressed an interest in purchasing the Creekside building. The developer plans to put an office-type use in approximately two-thirds of the building with approximately 4 0 full-time professional employees working regular daytime business hours, and with public visitors throughout the day. The remaining one-third of the building is intended to be used for either a separate office use with 20 -25 employees or a restaurant/retail use. While the hope was to attract and/or incentivize a purchaser willing to develop a marketplace concept area within the building, the proposal of an intensive office use could also fulfill several economic development goals:  The addition of 60-75 employees in the building during the day would increase foot traffic and activity in the Colony Square development and the downtown area.  The office use would help alleviate parking conflicts as the office use would primarily be during the weekday, while the adjoining theatre and restaurant uses require more evening and weekend parking.  Development of an office use could occur in a very short time period and occupancy of the building would help alleviate some of the graffiti and transient issues that are occurring in the area. ITEM NUMBER: SA C-1 DATE: 06/14/16  Immediate occupancy of the building with a large number of visitors/employees could help stimulate other development within Colo ny Square. Staff believes that it would be beneficial to enter into discussions with the interested parties regarding the purchase of the building at this time. In order to entertain further discussions with the interested party, the RFQ process will need to be suspended. Staff is recommending that the Successor Agency temporarily suspend the RFQ process and allow staff to explore the development options for the Creekside Building with this prospective buyer. If Council chooses to suspend the RFQ process, staff will be returning to the Board for closed -session discussions about the sale of the property After a thorough review, the City Attorney has concluded tha t the Successor Agency may suspend the RFQ process and negotiate with the prospective purchaser if directed by the City Council in its role as Successor Agency governing board , and that the Agency has both the right and the solid rationale to depart from t he “Disposition and Marketing Plan” in order to conserve the financial resources that would be spent implementing that plan, so long as the end result is consistent with the LRPMP. Staff feels that this opportunity to work with a willing developer who h as the means to make the development a reality while saving money for the taxing entities should be pursued prior to completing the RFQ process and retaining a broker who will be paid out of funds that could otherwise go to those taxing entities. FISCAL IMPACT: If the Successor Agency is eventually successful in selling the Creekside Building to the developer, there would be an overall expected savings for the Successor Agency. While suspending the RFQ process and entering into negotiations would incur budgeted ROPS expenditures for staff time and other potential property sale negotiation expenses, it is anticipated that the Successor Agency would save on the cost of marketing the building and associated broker fees. ATTACHMENTS: None.