On May 10, 2016, the City Council approved an 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. During the ENA period, the Developer has made progress on the development of the Nickelodeon Resort, and has completed the following required items pursuant to the ENA: an economic proforma; sources of financing; scope of development; draft relocation plan; and a draft developer site plan prepared by Gensler, the Developers architect.

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

• “Revised Draft Final Development Concept Package,” include a highly detailed proposed scope of development including minimum and appropriate square footages of buildings, a detailed parking and access plan, a reasonably detailed landscape plan, and a proposed financing plan;
• An updated timeline; and
• A detailed construction schedule of development.

After receipt of the complete Revised Draft Final Development Concept Package, the City will review the Revised Draft Final Development Concept Package. The Final Development Concept Package is a prerequisite for starting the CEQA/NEPA process.

The budget for property acquisition and relocation is estimated to be approximately $25 million. (See Attached Transaction Memorandum). It is anticipated that following execution of a Disposition Development Agreement (DDA), the Developer will provide approximately $10 million dollars to: (i) fund third party costs incurred by the City in connection with the acquisition and relocation efforts to acquire the Single Family Properties, (ii) acquire the Single Family Properties and Tamerlane Apartments, (iii) relocate displaced persons, and (iv) 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 $15 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 decides to enter into a DDA with the Developer, the project would 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 Amended and Restated Agreement; and
  

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

By: Greg Blodgett, Sr. Project Manager