For Economic Development Committee Meeting [January 30, 2019]
TO: Economic Development Committee Members
APPROVAL: Sean Grayson, Interim City Administrator
FROM: Robb R. Steel, ACA/Development Services Director
Title
Request Economic Development Committee Recommend to the City Council to Approve Amendment #3 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.
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 and on July 10, 2018 approved ERN Amendment #2 extending the termination date to January 31, 2019. See Exhibit A for ERN.
The Successor Agency owns seven (7) parcels totaling 15.5 acres ("SA Parcel") between the former Wal-Mart property and the new Wal-Mart Supercenter and Rialto Marketplace, which the City proposes to develop a retail center. See Exhibit B for a site map.
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 January 30, 2019, the Developer will present an update of its activities during the latest extension period and whether sufficient tenant interest has been captured to warrant formal negotiations of the disposition and development agreement.
ANALYSIS/DISCUSSION:
The ERN expires on January 30, 2019, if the...
Click here for full text