For City Council Meeting [February 12, 2019]
TO: Honorable Mayor and City Council
APPROVAL: Sean Grayson, Interim City Administrator
FROM: Robb R. Steel, Assistant CA/Development Services Director
Title
Request City Council to Receive and File the Statement of Income and Expense for December 2018 related to the Construction Reimbursement Agreement with Ayala@210LLC for Off-Site Improvements on Renaissance Parkway.
Body
BACKGROUND:
On March 14, 2017, the City Council approved an Option to Purchase and Develop Site Agreement by and between the City of Rialto and Ayala@210LLC ("Developer") for a commercial development on an 8-acre site situated east of Ayala Avenue and north of Renaissance Parkway/Easton Avenue for the proposed Cracker Barrel, Sonic, and hotel ("Project").
On March 28, 2017, the City Council approved a Construction Reimbursement Agreement (CRA) by and between the City of Rialto and Developer for a maximum cost of $1,321,491 ("Approved Budget"). The CRA funds the improvements on Renaissance Parkway adjacent to the Site using development impact fees and other funds ("Off-Site Improvements"). The City established the initial CRA budget before receipt of land use entitlements and preparation of construction drawings.
On January 23, 2018, the City Council approved Amendment #1 to the CRA and adopted Resolution No. 7279 increasing the Approved Budget to $4,080,227 for the Off-Site Improvements. Additional improvement scope and actual construction costs based upon competitive bidding increased the Approved Budget.
On January 24, 2018, the City, Developer, and First American Trust FSB (FSB) entered into separate Joint Escrow Instructions for the administration of funds related to the Off-Site Improvements. FSB will hold the funding for the project, subject to periodic releases by the City to pay for authorized project related expenses.
ANALYSIS/DISCUSSION:
On February 9, 2018, the City deposited the amount of $3,806,718.00 in the FSB Escrow Acc...
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