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HomeMy WebLinkAboutMinutes - City Council - 2008-08-18 - Special Meeting 150 City Council, Special Meeting Council Chambers 777 Cypress Avenue Redding, California August 18, 2008 5: 15 p.m. The meeting was called to order by Mayor Stegall with the following Council Members present: Bosetti, Dickerson, Jones, and Murray. Also present were City Manager Starman, City Attorney Duvernay, Assistant City Manager Tippin, Redevelopment Manager Morgon, and Assistant City Clerk Sherman. . I JOINT MEETING OF THE CITY COUNCIL AND REDDING REDEVELOPMENT AGENCY JOINT PUBLIC HEARING - Disposition and Development Agreement with Riverfront Playhouse RESOLUTION - Disposition of Agency-owned Property at 1701 Pine Street (R-030-145-050 & C-070-200) The hour of 5: 15 p.m. having arrived, Chair Bosetti and Mayor Stegall opened the public hearing regarding the disposition of Redding Redevelopment Agency (RRA)-owned property at 1701 Pine Street and associated Disposition and Development Agreement (DDA) with Riverfront Playhouse The following document is on file in the Office of the City Clerk: Affidavit of Publication - Notice of Public Hearing Assistant City Clerk Sherman advised that no comments had been received. Redevelopment Manager Morgon provided an overview of the Report to City Council and Redding Redevelopment Agency (Agency) dated July 15, 2008, incorporated herein by reference, concerning the disposition of Agency-owned property located at 1701 Pine Street to Riverfront. I Mr. Morgon recalled that the Agency acquired the former Carl's Automotive and Tire Center property in late 2004 from The McConnell Foundation to help relocate Riverfront from the east side of Redding to Downtown within the Market Street Project Area. He said that in June 2005, the Agency confirmed its intent to sell this Property to Riverfront, and entered into a month-to-month Commercial Lease Agreement in February 2007 for $1 per month, plus utilities, and limited use ofthe premises. Under the terms of the proposed DDA, Mr. Morgon explained that Riverfront would construct an approximate 12,000-square- foot, 184- seat theater to include a manager's office, green room, and other amenities. The Agency would transfer the Property to Riverfront carrying back a note, at no interest, secured by a Deed of Trust in the amount of$325,000 (the fair market value of the property), with escrow to close after all entitlements are obtained by Riverfront, which should be in place by the end ofthe year. He noted that the total cost of the project is approximately $2.9 million and, to date, Riverfront has received $581,000 in pledged donations. Mr. Morgon pointed out that, if undertaken, construction is to be completed within two years and, upon completion of improvements, the loan will be forgiven. Mr. Morgon recommended that the City Council, adopt a resolution approving the disposition of the real property at 1701 Pine Street to Riverfront, accepting the 33433 summary report, finding that the disposition of the Property will assist in the elimination of blight, is consistent with the Implementation Plan for the Market Street Redevelopment Project Area, and that the consideration for the Property is not less than the market value or and with the covenants and conditions and development costs authorized by the sale. In addition, it is recommended that the City Council approve the DDA with Riverfront Playhouse. I Dan Kupsky, Vice President of Riverfront's Board of Directors, explained that Riverfront has been in its location on East Cypress A venue since 1981, and the proposed action was vital to obtaining grants for the project and will help further the goal of constructing a state- of-the-art community theater in the heart of Downtown. He said that during demolition and retrofitting, Riverfront will be saving a large part of the building in recognition of its historical and structural value. 8/18/2008 151 Council Member/Agency Member Murray and Mayor/Agency Member Stegall expressed enthusiasm for the project, and applauded the efforts made by Riverfront. Mayor Stegall determined that no one else wished to speak on the matter and closed the public hearing. I MOTION: Made by Council Member Murray, seconded by Council Member Bosetti, adopting Resolution No. 2008-147, a resolution ofthe City Council ofthe City of Redding approving the disposition of real property at 1701 Pine Street to Riverfront Playhouse, accepting the 33433 Summary Report, and finding that the disposition ofthe property will assist in the elimination of blight, is consistent with the Implementation Plan for the Market Street Project Area, and that consideration for the property is not less than the market value or fair reuse value of the property at the use and with the covenants and conditions and development costs authorized by the sale and approving the Disposition and Development Agreement with Riverfront Playhouse. The Vote: AYES: Council Members - ^ Bosetti, Dickerson, Jones, Murray, and Stegall NOES: Council Members - None ABSTAIN: Council Members - None ABSENT: Council Members - None Resolution No. 2008-147 is on file in the office of the City Clerk. I MOTION: Made by Agency Member Murray, seconded by Agency Member Stegall, adopting Resolution No. 2008-07, a resolution of the Redding Redevelopment Agency approving the disposition of real property at 1701 Pine Street to Riverfront Playhouse, accepting the 33433 Summary Report and making the necessary findings required by Section 33433 of the Health & Safety Code, and authorizing the Chairperson to execute the Disposition and Development Agreement, supplementary documents, and amendments to the Disposition and Development Agreement that are reasonable and necessary to conform to lender requirements. Voting was as follows: AYES: Agency Members - NOES: Agency Members - ABSTAIN: Agency Members - ABSENT: Agency Members - Dickerson, Jones, Murray, Stegall, and Bosetti None None None Resolution No. 2008-07 is on file in the office of the Redding Redevelopment Agency. There being no further business, at the hour of 6: 13 p.m., Mayor Stegall declared the meeting adjourned. APPROVED ~~~ ATTEST: I 8/18/2008