HomeMy WebLinkAbout19K - 3RD AND BROADWAY PROJECTREQUEST FOR
COUNCIL ACTION :mot
CITY COUNCIL MEETING DATE:
MAY 2, 2017
TITLE:
CITY OF SANTA ANA THIRD STREET AND
BROADWAY DEVELOPMENT PROJECT
UPDATE - STATUS REPORT
(STRATEGIC PLAN NO. 3, §A)
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
❑ As Recommended
❑ As Amended
❑ Ordinance on 1" Reading
❑ Ordinance on Z' Reading
❑ Implementing Resolution
❑ Set Public Hearing For
CONTINUED TO
FILE NUMBER
Receive and file City of Santa Ana Third Street and Broadway Development Project Update
status report.
DISCUSSION
On March 21, 2017, the City Council authorized the City Manager and Clerk of the Council to
enter into an Exclusive Negotiation Agreement (ENA) with the Reimbursement Agreement for
consideration to be executed with Caribou Industries Inc. ( "Developer ") for the Third Street and
Broadway Development Project with the Proposed Scope of the project, subject to non -
substantive changes approved by the City Manager and City Attorney.
On April 4, 2017, City Staff met with the Developer to discuss the terms of the ENA and the 29
Proposed Scope of said Project.
The result of the meeting was that of the 29 Proposed Scope of the Project, both City staff and
the Developer agreed on 8 conditions that were proposed. The conditions agreed on were
numbers: 13, 14, 15, 18, 21, 24, 25, and 29.
However, there are discrepancies between 21 of the conditions proposed by the Developer and
those outlined by the City.
The following are the conditions where the Developer's proposal deviates from the City's
requirements:
1. Developer is to submit audited financial statements to the City of Santa Ana.
2. Developer is to purchase the property at market value with the intention of
demolishing the existing parking garage and building a mixed use residential /retail/
office /hotel project.
3. The City shall impose a lien on the property for the market value purchase of said
19K -1
City of Santa Ana Third Street & Broadway Project Update
May 2, 2017
Page 2
property. Said lien shall be maintained for no less than 25 years.
4. The City shall release the lien after 25 years and upon the developer's
accomplishment of all performance requirements and terms of the loan as outlined
in the DDA.
5. The developer shall be required to deposit a determined amount within five (5) days
of opening an escrow.
6. The transfer of the title of the property shall only take place after certain City of
Santa conditions have been met by the developer.
7. The developer shall obtain all necessary entitlements at their own expense prior to
transfer of property titles from the City to the developer.
8. The developer shall prepare a complete environmental document consistent with
California Environmental Quality Act (CEQA) for the proposed project,
9. A minimum four (4) -star hotel component, consisting of no fewer than 60 rooms is a
required component of the proposed project. The hotel may be built at the same
time as the rest of the project or in a subsequent phase, as described by the
developer with a justification for its phasing and timing. Developer must submit
documentation to verify a commitment from a major hotel, development proforma
for the hotel, and signed labor agreements as required but the City in order to meet
the hotel component requirement for the project.
10. A hotel tax rebate incentive may be negotiated between the City and the hotel
operator consistent with the City's Hotel Incentive Program.
11. The developer shall build the project paying prevailing wages and the hotel
component shall employ unionized labor at prevailing wages for its operations.
12. The developer will not be required to replace the existing public parking. Therefore,
no public funds shall be directed to the development project for the purpose of
creation of public parking.
16. Any unauthorized delays by the developer at any agreed upon phase of
construction shall be subject to penalties set forth in the DDA.
17. The new development project shall be designed by a highly credible design team to
exemplify the City's commitment to excellent design and sustainability in Santa
Ana.
19. Prior to issuance of final certificates of occupancy, general, standard, and specific
conditions and obligations set forth for this project shall be met within the timelines
outlined in the DDA.
20. Developer is required to provide Community Outreach with all stakeholders to hear
and address concerns over parking and construction during and after construction.
22. Developer shall reconstruct Sycamore Street between 3rd Street and 4th Street for
all modes of transportation at the developer's expense. The reconstruction of
Sycamore Street shall be performed according to all zoning, open space, and public
right -of -way standards to the satisfaction of the Planning and Building and Public
Works Agencies.
23. Existing street parking meter and parking activity must remain intact.
26. Developer shall provide ground floor, pedestrian - oriented commercial uses as will
19K-2
City of Santa Ana Third Street & Broadway Project Update
May 2, 2017
Page 3
be detailed during the entitlement process. The developer shall meet specific
performance milestones set forth in the DDA,
27. The developer shall provide a detailed construction schedule, staging, and
management plan to be reviewed and approved by the City to eliminate or mitigate
impacts to the surrounding businesses and the public during construction.
28. Developer shall be fully responsible for securing and leasing staging locations at
the developer's expense to the satisfaction of the City. The construction staging
location and equipment shall not impede day -to -day activities in surrounding areas.
On April 27, 2017, City Staff again met with the Developer and the result of the meeting was the
execution of the ENA and the commencement of the 60 days negotiation period.
City Staff and the Developer agreed to meet the following week to review and discuss the 21
discrepancy conditions in the Scope of the Project to achieve the goals established as part of the
City's Strategic Plan. The attached is the proposed Scope of the Project discrepancy comparison
chart. (Exhibit 1).
STRATEGIC PLAN ALIGNMENT
Approval of this item supports the City's efforts to meet Goal #3 - Economic Development,
Objective #5 (Leverage private investment that results in tax base expansion and job creation
citywide), Strategy A (Identify and market underutilized properties for new development that will
create new jobs and expand the City's tax base).
FISCAL IMPACT
There is no fiscal impact associated with this action at this time.
Hassan Hagh ni, AICP
Executive Director
Planning and Building Agency
SM:rb
rb \reports \smW%nd RroadwayU pd ate. CC. 4, 26.17
EXHIBIT: 1. Scope of the Project Discrepancy Comparison Chart
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