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HomeMy WebLinkAboutInfo Update - Alessandro West Imprvmnt PrjctCITY OF PALM DESERT ECONOMIC DEVELOPMENT DEPARTMENT STAFF REPORT REQUEST: RECEIVE AND FILE INFORMATION UPDATE ON THE ALESSANDRO WEST IMPROVEMENT PROJECT SUBMITTED BY: Martin Alvarez, Director of Economic Development DATE: February 11, 2016 CONTENTS: Site Maps Recommendation Receive and file informational update on the Alessandro West Improvement Project Background Alessandro West Improvement Project Over the last decade the former Redevelopment Agency acquired several properties located adjacent to the Alessandro Alley, between Las Palmas Avenue to 300 feet east of Monterey Avenue (see attached map). The intent of the acquisition was to implement an improvement project that would assist in renovating the blighted area and provide improvements that would stimulate new economic development and expansion of the commercial properties located to the south. The project proposes to widen and improve the Alessandro West corridor by adding new public parking spaces with landscaping and lighting improvements from Las Palmas Avenue to approximately 300 feet east of Monterey Avenue. The project would widen the majority of Alessandro West by 27.0 feet to a total width of 47.0 feet, and would provide public parking at a 90-degree angle on the north side of Alessandro West, perpendicular to a new six foot block wall barrier adjoining residential parcels to the north. Discussion The Alessandro West Improvement Project continues to make progress toward the commencement of construction. Below is an update on the various components of the project, including project schedule, funding, property acquisitions, and the formation of the property and business improvement district. Project Schedule: The architectural and engineering construction plans are now complete and the plans are currently in plan check. It is anticipated that the project will be out to bid in April of this year and construction is scheduled to commence this summer. Staff Report Receive and File Informational Update on Alessandro West Improvement Project February 11, 2016 Page 2 of 2 Project Funding: With the approval of the Successor Agency's Finding of Completion in 2013, by the State Department of Finance, the Successor Agency can now utilize its bond funds including those associated with Project Area 1 Bond Proceeds. Only capital projects listed in the original Project Area bond documents can be funded. Alessandro Alley Improvement Project qualifies as a capital project listed in the original bond fund documents. In order to expend bond funds associated with the project design, property acquisitions and construction, the State Department of Finance (DOF) required the approval of a Bond Proceeds Funding Agreement. The Successor Agency, Oversight Board and the DOF have approved a reimbursement agreement for the Alessandro West project which allows the City to expend funds to implement the project and be reimbursed by Successor Agency Project Area 1 Bond Proceeds. On August 22, 2013, the Successor Agency/City held a Study Session to discuss the prioritization and funding availability of former Redevelopment Agency bond funded projects. The Alessandro West Improvement Project was identified as one of the projects eligible under Project Area 1 bond funds and $2,100,000 was programmed for this project. To date the former Redevelopment Agency and Successor Agency have spent $3.4M for property acquisitions, professional services, fees and deconstruction costs. The project's estimated construction cost is $2M. Alessandro West Property Acquisitions Holtz Parcel - The eminent domain action has been filed with the court. The City Attorney continues to have settlement discussions with Ms. Holtz's attorney. However, Ms. Holtz has been unresponsive recently. The City Attorney intends to hire a process server to effect service and require her to answer the complaint and move forward with the legal proceedings to obtain possession. Castelli Parcel — In 2009, the City acquired 10.5 feet from the rear of Michael Castelli's residential parcel. This parcel is east of Ms. Holtz's parcel. Staff is continuing discussions with Mr. Castelli to acquire an additional 16.5 feet from his parcel to secure a total of 27 feet, which would allow the City to fully implement the Alessandro West improvements (see attached map). Alessandro West Business Improvement District Formation: In anticipation of the Alessandro West Project implementation, staff has hired Willdan Financial Services to assist with the formation of a Property and Business Improvement District (PBID) that would assist with the project's future maintenance cost. The PBID formation will require majority of the commercial property owners to approve an assessment through a balloting proceeding. Staff is in the process of developing an estimated 5 year maintenance budget that will be used to establish the annual assessment for each commercial property owner. Staff anticipates holding a commercial property owners meeting in April 2016 to discuss the PBID formation and assessment. The property owners balloting is expected to occur in May of 2016. GAEcon Development\Martin Alvarez\2016\SRWlessandro West CC Update 2-11-16.doc Staff Report Receive and File Informational Update on Alessandro West Improvement Project February 11, 2016 Page 2 of 2 Fiscal Analysis There is no fiscal impact with this action. Submitted By: Martin Alvarez Director of Economic Development Reviewed: Paul S. Gibson, Director of Finance G City Manager Department Head: Rudy osta Assistant City Manager GAEcon DevelopmentWartin Alvarez\2016\SR\Alessandro West CC Update 2-11-16.doc