For Economic Development Committee Meeting [June 27, 2018]
TO: Economic Development Committee
APPROVAL: Robb R. Steel, Interim City Administrator
FROM: John Dutrey, Project Manager
Title
Request EDC to Consider Amendment #2 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.
On January 9, 2018, the City Council approved ERN Amendment #1 extending the termination date to July 31, 2018.
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.
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.
ANALYSIS/DISCUSSION:
The ERN expires on July 31, 2018, if the parties have not completed a DDA for consideration by the City Council. If warranted, the City Council can extend the ERN period.
Since July 2017, the Developer and the City have undertaken several tasks to initiate the potential retail development. The Developer continues to market the site to potential retailers and entertainment uses. The Developer and staff request a six-month extension...
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