For City Council Meeting [January 9, 2018]
TO: Honorable Mayor and City Council
FROM: Robb R. Steel, Interim City Administrator
Title
Request City Council to Approve Amendment #1 to Exclusive Right to Negotiate Agreement with NewMark Merrill for the Development of Approximately 15.5 Acres of Property located west of Riverside Avenue and north of Valley Boulevard.
(ACTION)
Body
BACKGROUND:
On June 27, 2017, the City Council approved an Exclusive Right to Negotiate Agreement (ERN) with NewMark Merrill ("Developer") for the development of approximately 15.5 Acres ("Site") of property located west of Riverside Avenue and north of Valley Boulevard. The City selected the Developer through a "Request for Proposals/Qualifications" process. See (Exhibit A) for ERN.
The Successor Agency owns seven (7) parcels totaling 18.5 acres ("SA Parcel") between the former Wal-Mart property and the new Wal-Mart Supercenter and Rialto Marketplace. The City proposes to develop a retail center on 15.5 acres and Fire Station 205 and a community center on 3 acres of the SA Parcel. See Exhibit B for a site map.
In April 2017, Wal-Mart relocated to the Wal-Mart Supercenter building. In July 2017, Pacifica Companies acquired the Vacant Wal-Mart Property. In November 2017, Pacifica submitted entitlement applications to the Planning Division to develop three satellite buildings and subdivide the existing building for three tenants.
The ERN allows the Developer to prepare proposals, conduct feasibility assessments, and market the Site to potential users. The ERN confers no development rights, but is simply a good faith statement of the party's intention to negotiate a disposition, development agreement (DDA) on terms acceptable to both parties.
On November 15, 2017, the Economic Development Committee received a presentation from the Developer on current leasing activity and preliminary site plans.
ANALYSIS/DISCUSSION:
The ERN expires on January 23, 2018, if the parties have ...
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