On May 9, 2017, the City Council approved an Amended ENA between the City and the Developer for the development of an approximately 9.08 acre site that includes property that is subject to an enforceable disposition and development agreement between Developer and the former redevelopment agency.  Since then, the Developer has made progress on the development of the Nickelodeon Resort, and has completed the following required items pursuant to the Amended ENA: engaged the services of both CEQA and NEPA consultants who have initiated the Environmental Review Process, which typically takes a year to complete.   

The Developer has requested the City consider a Second Amended and Restated Exclusive Negotiation Agreement to modify the certain business points, and allow an extension of one year to complete the following:  

• Complete the CEQA and NEPA Environmental Review Process;
• Prepare an updated timeline; and
• Prepare a detailed construction schedule of development.

After completion and approval of both the CEQA and NEPA Environmental Review Process, staff will bring forward a Disposition and Development Agreement for City Council consideration.

The project costs associated with property acquisition and relocation is estimated to be approximately $18 million. The primary business points that are part of the ENA will be memorialized into a formal Disposition and Development Agreement (DDA) in which the Developer will contribute approximately $13 million dollars of these project costs to:

1. Fund third party costs incurred by the City in connection with the acquisition and relocation efforts to acquire the Single Family Properties,
2. Acquire the Single Family Properties and Tamerlane Apartments,
3. Relocate displaced persons, and
4. Process entitlements for the Project. Any properties acquired with funds provided by the Developer shall be the property of the Developer. 

The Developer acknowledges there is an approximately $5 million dollar gap between the required funds and the available funds.  Prior to finalizing a DDA, the Parties will jointly seek to reduce such costs and/or seek alternative methods of funding the gap such as contribution from Nickelodeon.

There is no impact to the City’s General Fund.  If the City determines and proceeds with a DDA with the Developer, the project is anticipated to generate significant annual property tax revenues.  Additional financial impacts will be identified in connection with the final DDA consideration.

It is recommended that the City Council:

• Consider approving the attached Second Amended and Restated Exclusive Negotiation Agreement; and
  
  

• Authorize the City Manager to make minor modifications, execute pertinent documents, and amend or extend the ENA period.   

By:  Monica L. Covarrubias, Project Manager