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HomeMy WebLinkAboutMinutes - City Council - 2010-01-25 - Special Meeting (2) I I I 34 City Council, Special Meeting Council Chambers 777 Cypress Avenue Redding, California January 25,2010 5:15 p.m. The meeting was called to order by Mayor Jones with the following Council Members present: Dickerson, McArthur, and Stegall. Council Member Bosetti was absent. Also present were City Manager Starman, City Attorney Duvernay, Assistant City Manager Tippin, Assistant to City Manager Clark, Redevelopment Manager Thompson, Senior Redevelopment Project Coordinator Haddox, Associate Redevelopment Project Coordinator Bade, Assistant Redevelopment Project Coordinator Rudolph, Deputy City Clerk Mize, and Executive Assistant Tipton. At the hour of 6: 15 p.m., Mayor Jones convened the Special Meeting of the Redding City Council for a joint meeting with the Redding Redevelopment Agency. POTENTIAL SALE OF CITY-OWNED PROPERTY LOCATED AT 1613.1625. AND 1637 PINE STREET (PARKING LOT NO.3) TO THE AGENCY AND EXCLUSIVE NEGOTIATING AGREEMENT BETWEEN MERCER CONSTRUCTION LP AND THE AGENCY. [C-070-200 / R-030-145-010] Assistant City Manager Tippin provided an overview ofthe Report to City Council (Council) and Redding Redevelopment Agency (Agency) dated January 19, 2010, incorporated herein by reference, relative to the purchase of City of Redding (City)-owned property located at 1613, 1625, and 1637 Pine Street, collectively known as Parking Lot No.3. These three parcels of land were acquired by the City in the 1950s to provide public parking in Downtown. The properties were subsequently declared surplus in 1996 due to their historically sparse usage. Mr. Tippin indicated that on September 14, 2009, Brent Weaver of Mercer Construction LP (Mercer), submitted a proposal to partner with the Agency to acquire Parking Lot No.3 from the City for the development of a multi-story, mixed-use, mixed-income project on the subject site. Mercer's proposed development would incorporate commercial/retail space on the ground floor and approximately eight to 12 residential units, which would be a combination of market-rate and affordable residential units on the upper floors. Subsequently, at its meeting on October 20, 2009, the Council, in closed session, directed staff to attempt to negotiate an Exclusive Negotiating Agreement (ENA) between the Agency and Mercer for the proposed development. Mr. Tippin explained that while near-term Downtown parking issues are anticipated to be minimal should the subject site be redeveloped, the potential long-term impacts on parking in the Downtown are a key consideration. Since uses within the Market Street Promenade area, formerly known as the Downtown Mall, will likely remain the major drivers of parking needs in Downtown, it is staffs opinion that Parking Lot No.3 is not likely to be a significant parking resource due to its location. Mr. Tippin recalled that in 2006, the City created an ad hoc Downtown Parking Committee (Committee) to study Downtown parking issues. In January 2007, the Committee presented the culmination of its work, the Downtown Parking Committee Summary Report to the City Council. In summary, the report states that there is adequate parking capacity today in Downtown to accommodate smaller scale developments. Additionally, the report recommended that Parking Lot No.3 be retained for public parking purposes in light of the then proposed sale of Parking Lot No. 4 for the Theatre Square project, which has subsequently been abandoned. Accordingly, in September 2009, a letter was sent to each member of the former Committee inviting comments regarding the potential sale and development of Parking Lot No.3. The only former Committee Member to respond was Michele Goedert, of the Midtown Mall Benefit Corporation, recommending that if Parking Lot No.3 is sold, the City commit to preserving Parking Lot No.4 for public parking. Mr. Tippin explained that to facilitate ongoing negotiations with Mercer, it is proposed that the Agency acquire Parking Lot No.3 from the City. The purchase price of the property would be $210,000, the fair market value of the property as determined by an appraisal 01/25/2010 35 prepared by Ryan Real Estate Appraisers and Consultants dated December 1, 2009. Acquisition of the property would allow the Agency to enter into an ENA with Mercer for a six-month period. During this time, the terms can be negotiated governing the scope, process, and timing of the redevelopment effort; stating the terms of the property purchase; detailing the development to occur and the uses permitted; and specifying the terms and amount of any Agency assistance contemplated. Once negotiated, the DDA will come back to the Agency's Board of Directors (Board) for consideration. It was recommended that the Council authorize the sale of City-owned property located at 1613,1625, and 1637 Pine Street to the Agency. It was further recommended that the Board authorize the acquisition of Parking Lot No.3 and authorize the Chair to execute an ENA between the Agency and Mercer which provides for the negotiation of a Disposition and Development Agreement for the potential redevelopment of Parking Lot No.3 as a mixed- use project. I Council Member/Agency Chair McArthur related that she contacted Evelyn Jacobs of US Bank, Kenny Breedlove, a Downtown Business Owner, John Truitt of Viva Downtown, and Michele Goedert of Midtown Mall Benefit Corporation, for their input relative to parking issues in Downtown. Ms. McArthur noted that Evelyn Jacobs was supportive ofthe project, but would like to see Parking Lot No.4 retained for public parking. John Truitt, Executive Director of Viva Downtown (Viva), expressed his organization's support of more housing and retail in Downtown. Mr. Truitt explained that this particular parking lot is underutilized during the day and the lack of lighting does not invite night usage. Mr. Truitt emphasized that although Viva endorses the use of Parking Lot No.3 for redevelopment purposes as a mixed-use project and would like to see Parking Lot No.4 preserved for public parking, it in no way is suggesting that one parking lot be tied to the other. Mayor/Agency Member Jones stated that he favors keeping Parking Lot No.4 for public parking should Parking Lot No.3 ultimately be redeveloped. Mr. Tippin noted that staff would support looking at each parking lot on a case-by-case basis, not necessarily retaining a parking lot exclusively for public parking. I A MOTION WAS MADE BY Council Member Stegall, seconded by Council Member Dickerson, to authorize the sale of City-owned property located at 1613, 1625, and 1637 Pine Street, collectively known as Parking Lot No.3, to the Redding Redevelopment Agency. The Vote: AYES: NOES: ABSTAIN: ABSENT: Council Members - Dickerson, McArthur, Stegall, and Jones Council Members - None Council Members - None Council Members - Bosetti A MOTION WAS MADE BY Agency Member Stegall, seconded by Agency Member Jones, to authorize the acquisition of City-owned property located at 1613, 1625, and 1637 Pine Street, collectively known as Parking Lot No.3, and authorize the Chair to execute an Exclusive Negotiating Agreement with Mercer Construction LP for the potential development of Parking Lot No.3 as a mixed-use project. Voting was as follows: AYES: Agency Members - Dickerson, Jones, Stegall, and McArthur NOES: Agency Members - None ABSTAIN: Agency Members - None ABSENT: Agency Members - Bosetti ADJOURNMENT There being no further business, at the hour of 6:25 p. adjourned. I 01/25/2010 I I I 36 City Council, Special Meeting Council Chambers 777 Cypress Avenue Redding, California January 25,20105:15 p.m. The meeting was called to order by Mayor Jones with the following Council Members present: Dickerson, McArthur, and Stegall. Council Member Bosetti was absent. Also present were City Manager Starman, City Attorney Duvernay, and Assistant City Manager Tippin. At the hour of 6:40 p.m., Mayor Jones announced that the City Council would adjourn to closed session to discuss the following: Closed session pursuant to California Government Code Section 54956.8: CONFERENCE WITH REAL PROPERTY NEGOTIATOR Proposed sale of City-owned property located at 5555 Venture Parkway (APN 054- 220-015) Negotiating parties: City of Redding and 2322 Dunavant Street, LLC Agency Negotiator: Kurt Starman Under negotiation: Price and Terms [C-070] Closed session pursuant to California Government Code Section 54957.6: CONFERENCE WITH LABOR NEGOTIATOR Designated Agency Representative: Personnel Director Speer Employee Organizations: Local Union 1934 of International Association of Fire Fighters - AFL-CIO and Unrepresented Employees [P-l 00-050-050/P-l 00-050-1 00] At the hour of7:40 p.m., Mayor Jones reconvened the Special Meeting to open session and announced that no reportable action had been taken by the City Council. There being no further business, at the hour of7:43 p.m., Mayor Jones declared the meeting adjourned. ATTEST: ~~~!JI Deputy City Clerk . 1/25/20 I 0