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HomeMy WebLinkAbout25K - AGMT WILLOWICKREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: APRIL 3, 2018 TITLE: APPROVE AGREEMENT WITH GARDEN GROVE TO EXPLORE THE REDEVELOPMENT OF WILLOWICK GOLF COURSE LOCATED AT 3017 W. 5T" STREET {STRATEGIC PLAN NO. 3,5A) S tr �ImANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 15' Reading ❑ Ordinance on 20d Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Authorize the City Manager and the Clerk of the Council to execute an agreement with the City of Garden Grove to explore the redevelopment of the Willowick Golf Course site located at 3017 W. 5t' Street for the period of April 1, 2018 through March 31, 2023, subject to non - substantive changes approved by the City Manager and City Attorney. DISCUSSION Willowick Golf Course is a 101.5 -acre property located at 3017 W. 5t' Street, owned by the City of Garden Grove, within the jurisdictional boundaries of the City of Santa Ana. On September 19, 2017, the City entered into a Memorandum of Understanding (MOU) with the City of Garden Grove to engage in discussions relating to the potential redevelopment of the Willowick Golf Course. The MOU acknowledged that both cities had mutual interest in examining options for potential development of the Willowick Golf Course site and scheduled a joint City Council meeting that took place on December 4, 2017 at the City of Santa Ana. At the joint City Council meeting, direction was given to work with Garden Grove staff to develop options for potential redevelopment of the Willowick site. Options were to carefully consider impacts of redevelopment on surrounding neighborhoods, evaluate "Lessons Learned" from similar reuse projects, identify community needs and develop a project vision based on the identified needs. To proceed with next steps, an agreement between the City of Santa Ana and Garden Grove is presented for City Council consideration (Exhibit 1). The agreement authorizes the City Manager to enter into two (2) professional services agreements. Under the first professional services 25K-1 Agreement with Garden Grove - Willowick April 3, 2018 Page 2 agreement an economic advisory consultant would be retained to advise on potential land use options and provide third party assessment of development proposals. Under the second professional services agreement, a facilitator would be hired to conduct extensive community outreach to identify community needs that will guide development of a vision for reuse of the site. Each city would commit up to and no more than $25,000 for each of the professional services agreements. The City's maximum contribution for both agreements is $50,000; however, reimbursement of the City's contribution will be included as a term of an Agreement with a Master Developer further described below. The agreement also specifies that the City of Garden Grove may serve as the party to retain the two professional service consultants. If this option is exercised, Santa Ana will reimburse Garden Grove up to the $50,000 maximum. Concurrent with the hiring of the two consultants, both Cities will jointly develop a solicitation for a Master Developer. The solicitation is intended to enable the cities to select a Master Developer to begin working to undertake land use planning of the site based on the vision that will be developed through the community outreach process. This agreement also establishes a Willowick Ad Hoc Steering Committee on which three (3) members of each City Council will be requested to serve. STRATEGIC PLAN ALIGNMENT Approval of this item allows the City 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 Funds in the amount of $50,000 are available in the Community Development Agency's Enterprise Zone, Contract Services -Professional account (no. 02518820-62300) for possible expenditure in FY 2017-18. Any unexpended amount will be budgeted for expenditure in FY 2018-19. APPROVED AS TO FUNDS AND ACCOUNTS: Obert M. Zur c i Francisco Gutierrez W Interim Executiv irector Executive Director Community Development Agency Finance and Management Services Agency Exhibit: 1. Agreement with City of Garden Grove 25K-2 Exhibit 1 AGREEMENT BETWEEN CITY OF SANTA ANA AND CITY OF GARDEN GROVE TO EXPLORE THE REDEVELOPMENT OF THE WILLOWICK GOLF COURSE WHEREAS, the City of Garden Grove (Garden Grove) owns the Willowick Golf Course property ("Property"), which is comprised of approximately 101.5 acres located at 3017 W 5th Street, within the jurisdictional boundaries of the City of Santa Ana (Santa Ana), together, Garden Grove and Santa Ana are referred to herein as "the Parties;" and WHEREAS, in September 2017 the Parties entered into a Memorandum of Understanding wherein the Parties agreed to jointly explore the potential for redevelopment of the Property; WHEREAS, the Parties wish to enter into this Agreement to take the first steps in the joint exploration of the potential redevelopment of the Property. NOW, THEREFORE, it is agreed, by and between the City of Santa Ana, a charter city and municipal corporation duly organized and existing under the Constitution and laws of the State of California and the City of Garden Grove, a municipal corporation duly organized and existing under the Constitution and laws of the State of California as follows: 1. Term. The term of this Agreement commences on April 1, 2018 and remains in effect for five years through March 31, 2023, -unless sooner terminated by 30 days' notice of one Party to the other. Any work completed by any consultant hired by the Parties will be shared by the Parties through the date of termination. Except as provided in Section 3 below, the hiring of any consultant or contractor pursuant to this Agreement will require the prior approval of both Parties. 2. Willowick Ad Hoe Steering Committee. Each of the Parties' City Council will appoint three officials from each Party to serve on an ad hoc steering committee to oversee the implementation of this Agreement and to from time to time provide reports to each City Council on the implementation activities outlined in this Agreement. Hiring of Consultants. The Parties will jointly procure and hire an Economic Advisory consultant and a Community Facilitation consultant as follows: (a) Economic Advisory Consultant. The Economic Advisory consultant would advise the Parties on the development possibilities for the Property and provide third party market validation of development proposals once developed. Each Party's City Manager is authorized to enter into a professional services agreement and to commit no more than $25,000 each, for a total of $50,000 shared equally between the Parties, towards the work of the Economic Advisory consultant. (b) The Community Facilitator would conduct a to -be -determined scope of community outreach that would identify a list of community needs and objectives that a reuse plan should address. The scope would include development of a 1301365.1 25K-3 "vision" for reuse of the site based on the results of the community outreach. Outreach techniques would be selected based on the best fit for the community, These could include conventional community meetings, but other outreach methods, such as use of online survey tools and focus groups, will also be considered. Special efforts will be undertaken to solicit input from non-English speaking community members. Planning Commissioners and elected officials of both cities would receive a presentation on the outcome of the outreach effort and vision developed for the Property. The vision would inform development of land use planning alternatives. Each Party's City Manager is authorized to enter into a professional services agreement and to commit no more than $25,000 each, for a total of $50,000 shared equally between the Parties, towards the work of the Community Facilitator consultant. (c) To facilitate the process of hiring the consultants, the Parties will collaborate in the selection of the consultants. Implementation of the professional services agreements may require Garden Grove to serve as the primary Party to engage the consultants, in which case Santa Ana agrees to reimburse Garden Grove for its share of the costs subject to the amounts described in Sections 3(a) and 3(b). 4. Master Developer Solicitation. Concurrent with the hiring of the Economic Advisory Consultant and the Community Facilitator, the Parties will prepare a solicitation (RFQ or RFP) for a Master Developer, which may include the selection of a neutral Third Party Facilitator to assist with the solicitation process of a Master Developer. The solicitation is intended to enable the Parties to select a Master Developer to begin working with the Parties to undertake land use planning of the Property based on the vision developed through the community outreach process. 1301365.1 Mutual Indemnification. Each Party to this Agreement is responsible for its own acts or omissions. Each Party represents that it is self-insured, participates in a joint powers agreement with other governmental entities, or maintains policies of insurance against public liability, property damage, automobile liability and worker's compensation as it may be prudent or as required by law. (a) Pursuant to California Government Code Section 895.4, Santa Ana agrees to indemnify, defend with counsel approved in writing and hold harmless Garden Grove, its elected officials, board members, officers, agents, employees and authorized volunteers from and against any and all claims, damages, demands, liability, costs, losses and expenses, including, without limitation, court costs, reasonable attorneys' fees, and expert witness fees, arising out of, in connection with or in any way related to the negligence and willful misconduct of Santa Ana relating to this Agreement. (b) Pursuant to California Government Code Section 895.4, Garden Grove agrees to indemnify, defend with counsel approved in writing and hold harmless Santa Ana, its elected officials, council members, officers, agents, employees and authorized volunteers from and against any and all claims, damages, demands, liability, 25K-4 costs, losses and expenses, including, without limitation, court costs, reasonable attorneys' fees, and expert witness fees, arising out of, in connection with or in any way related to the negligence and willful misconduct of Garden Grove relating to this Agreement. (c) The provisions of this Section will survive the termination or expiration of this Agreement. 6. Third Party Beneficiaries. Nothing in this Agreement will or can be construed to confer any rights upon any party not signatory to this Agreement. [SIGNATURE PAGE FOLLOWS] 3 1301365.1 25K-5 IN WITNESS THEREOF, THIS AGREEMENT has been executed by the Parties by their respective authorized representatives. RECOMMENDED FOR APPROVAL By: Robert C. Cortez Deputy City Manager City Manager's Office CITY OF SANTA ANA CITY OF GARDEN GROVE By: By: Miguel A. Pulido Date Steven R. Jones Date Mayor Mayor Attest: By: By: Raul Godinez II City Manager Teresa Pomeroy Date City Clerk APPROVED AS TO FORM: Sonia R. Carvalho APPROVED AS TO FORM City Atto i By: By: Omar Sandoval Ryan O o g City Attorney Attest: By: Maria D. Huizar Date City Clerk 4 1301365.1 25K-6