HomeMy WebLinkAboutRDA RES 450RESOLUTION NO. 450
A RESOLUTION OF THE PALM DESERT REDEVELOPMENT AGENCY
APPROVING THE SALE BY THE PALM DESERT REDEVELOPMENT
AGENCY OF CERTAIN REAL PROPERTY CONSISTING OF
APPROXIMATELY 0.39 ACRES ON A PARCEL LOCATED BETWEEN
PAINTERS PATH, HIGHWAY 111, THE PALM VALLEY STORM
CHANNEL AND WEST EL PASEO PURSUANT TO A DISPOSITION
AND DEVELOPMENT AGREEMENT BY AND BETWEEN THE PALM
DESERT REDEVELOPMENT AGENCY AND DERVIEUX, INC. (D/B/A
CUISTOT)
The Palm Desert Redevelopment Agency hereby finds, determines, resolves,
and orders as follows:
Section 1. On July 11, 2002, the City Council of the City of Palm Desert
(the "City") and the Palm Desert Redevelopment Agency (the "Agency") held a
duly noticed joint public hearing on the approval of the Agency's proposed sale of
certain rea{ property consisting of approximately 0.39 acres located in the
Agency's Project Area No. 1(the "Property"!, as described in that certain
Disposition and Development Agreement (the "Agreement") by and between
DERVIEUX, INC., A CALIFORNIA CORPORATfON D!B/A CUISTOT (the
"Developer") and the Agency, at which time all persons desiring to comment on or
ask questions concerning the Agreement and the lease of the Property to
Developer were given the opportunity to do so. On or before June 27, 2002,
information concerning the Agency's proposed sale of the Property to Developer, a
copy of the Agreement, and the Summary Report prepared pursuant to California
Health and Safety Code Section 33433 were made available for pubfic inspection
and copying in the offices of the Palm Desert Redevelopment Agency at 73-510
Fred Waring Drive, Palm Desert, California 92260 between the hours of 8:00 a.m.
and 5:00 p.m., Monday through Friday. Notice of the public hearing was
published in The Desert Sun on Thursday, June 27, 2002, and Thursday, July 4,
2002.
Resolution No. 450
Section 2. Pursuant to the Agreement, the Developer covenants to
construct certain improvements on the Property within a certain time period as
therein described, including but not limited to an approximately 7,500 square foot
restaurant facility, including a 2,000 square foot exterior patio, and certain public
improvements.
Section 3. The Agency reviewed and considered all written and oral
comments, questions and concerns regarding the Agency's proposed sale of the
Property to Developer received prior to and at the public hearing on July 1 1, 2002.
Section 4. The Property contains approximately 0.39 acres and, pursuant
to the Agreement, will be sold to the Developer for a purchase price of 5750,000.
The Agency Staff obtained a report prepared by a real estate analysis services
company which evaluated the fair market value of the Property at its highest and
best use, and determined that the probable fai� market value of the Property at its
highest and best use is approximately S20.50 per square foot. A summary report
prepared pursuant to California Health and Safety Code Section 33433 is attached
hereto as Exhibit "A."
Section 5. Project Area No. 1 is an area which has previously been
identified in the Redevelopment Plan for Project Area No. 1 originally approved and
adopted by the City Council of the City pursuant to Ordinance No. 80 on July 16,
1975, as may be amended from time to time, as a blighted area. The area has
previously been determined to create a social and economic burden on the
community which cannot reasonably be expected to be reversed or alleviated by
private enterprise or governmental action, or both, without redevelopment. In
699253-3
Resolution No. 450
addition, Project Area No. 1 contains vacant and under-utilized properties and
properties which suffer from economic dislocation, deterioration or disuse,
including depreciated or stagnant property values and impaired investments.
Project Area No. 1 is characterized by the existence of inadequate public
improvements, pubfic facilities and open spaces which cannot be remedied by
private o� governmental action without redevelopment.
Section 6. The Agency hereby finds that the sale of the Property pursuant
to the Agreement will assist in the elimination of blight by providing for
Developer's construction of certain improvements and use described in the
Agreement on previously vacant, under-utilized land, which will remedy the lack of
adequate public improvements, assist in the revitalization of Project Area No. 1,
encourage private sector investment and create job opportunities, all for the
health, safety and welfare of the residents and taxpayers of the City.
Section 7. The Agency hereby finds that the proposed sale of the Property
is consistent with the Agency`s implementation plan adopted pursuant to California
Health and Safety Code Section 33490.
Section 8. The Agency hereby finds that the consideration to be paid by
Developer pursuant to the Agreement is not less than the fair market value of the
Property at its highest and best use in accordance with the Redevelopment Plan for
the Agency's Project Area No. 1.
Section 9. In 1989, an Environmental Impact Report was prepared and
approved for the Ahmanson Commercial Development Plan, which was proposed for
the same approximately twelve (12) acre site of which the Property is a part (the
"Master Site"1, pursuant to the requirements of the California Environmental Quality
699253-3
Resolution No. 450
Act (CEQA1. The Agency Staff and the Director of Community Development have
found that (a) the proposed project (sale of the Property for construction of a
restaurant facility) is a project within the scope of the EIR prepared for the Master Site,
(b) the proposed project constitutes a less intensive use than the proposed
development of the Master Site contemplated by the EIR, and (c) pursuant to California
Public Resources Code Section 21090 and State CEQA Guidelines Section 15180,
further environmenta! review of the project is not required. The Agency Staff found,
and the Board finds, in the exercise of its independent judgment, that none of the
factors specified in State CEQA Guidelines Section 15162 or 15163 apply and
therefore no subsequent or supplemental EIR or Negative Declaration is required.
Specifically, substantial changes have not occurred with respect to the circumstances
under which the project is undertaken which require major revisions to the previous EIR
due to the involvement of new significant environmentai effects or a substantial
increase in the severity of previously identified significant effects. In addition, new
information of substantial importance, which was not known and could not have been
known with the exercise of reasonable diligence, is not present in this matter and does
not arise due to the proposed Agreement. Based on all the information in the record of
this matter, and on the grounds, including but not limited to those specified above, the
Agency Board hereby finds the project exempt from CEQA pursuant to State CEQA
Guidelines Section 15180. The Agency Board further finds that the project will have a
de minimus impact on wildlife resources. The Agency Board directs staff to file a
Notice of Exemption and any other required environmental filings with the County
Clerk's Office.
Section 10. The Agency hereby approves the Agreement and the Agency's
sale of the Property to Developer in accordance with the terms and conditions of
the Agreement pursuant to the requirements of California Health and Safety Code
Section 33433(b), and directs its Executive Director and/or any other authorized
699253-3
Resolution No. 450
officers to take such actions, perform such deeds, and execute, acknowledge and
deliver such instruments and documents as it deems necessary in connection
therewith. The Agency hereby directs its Executive Director and/or any other
authorized officers to enter into the Agreement in substantially the form now on
file with the City Clerk, with such changes therein as may be necessary and as the
Executive Director may approve, in its discretion, as being in the best interests of
the City, such approval to be conclusively evidenced by the execution and delivery
thereof, in order to effectuate the development and operation of the Property by
the Deve4oper, and to take such actions, perform such deeds, and execute,
acknowtedge and deliver such instruments and documents as it deems necessary
in connection therewith.
PASSED, APPROVED and ADOPTED this 11'" day of July, 2002, by the
following vote to wit:
AYES: BENSON, CRITES, SPIEGEL, KELLY
NOES: NONE
ABSTAIN: NONE
ABSENT: FERGUSON
r
R ARD S. K LLY, CHAf R AN
ATTEST:
S
RACHELLE D. KLASSEN, C CLERK
— 699253-3
Resolution No. 450
STATE OF CALIFORNIA )
) ss.
COUNTY OF RIVERSIDE)
I, Rachelle n xiasse� Agency Secretary of the Palm Desert Redevelopment
Agency, Palm Desert, California, do hereby certify that the entire number of inembers of
the Palm Desert Redevelopment Agency is five; that the foregoing resolution, being
Resolution No. 45o was duly and regularly adopted by said Agency at a regular
meeting duly held on the 11�' day of July, 2002, and that the same was passed and
adopted by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
AGENCY MEMBERS: BENSON, CRITES, SPIEGEL, KELLY
AGENCY MEMBERS: NONE
AGENCY MEMBERS: NONE
AGENCY MEMBERS: FERcusorr
RACHELLE D. KLASSEN
AGENCY SECRETARY
Resolution No. 450
Exhibit "A"
Summary Report Prepared pursuant to Section 33433
(To be providedJ
REAL ESTATE ANALYSIS SERVICES CO.
POST OFfICE BOX 2809. PALM DESERT. CALIFORNIA 92261
' TEL: (760) 34a1429; FAX: (7fi� 34a2041; EMAIL• LRWREASC0�10LCOM
June 26, 2002
Ms Lauri Aytaian Coaies to: David Y►igoyen
Project Admir�a�or Justln McCarthy
PALM DESERT REOEVELOPMENT AGENCY
CITY OF PALM DESERT
73�10 Fred Wariny Drive
Palm Desert, Califomia 82260
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SUBJECT: Reoort Pursuant To Sectton 35433 Of The CadHornia Hwlth And Sat�etv Code
NOTE 1: This report is basad on the benns and conditions of the Dtsposffbn and Devebprt�t
I1o�ement dabed July 11, 20D2 betwrsn the Palm Desert R�develoPment AQencY (1he
"Apency'� and Derviaux, Inc., a CalltorMa corporation, dib/a Culstot
Dear Ms Aylaian,
Section 33433 of the Califomia Flealth and SafeRy Code stipulabes that before anY P�'oP�Y ���Y, �uired
�rectly ar ind�ecUy with tax increme�t funda, is add or leased for development purpo�es p�x�s�mrrt to tfie
r��d�,re�o�r,e�t a�ar,, the sale or lease shap fxst be aPPr� bY ���Y bY ��� � P�
hsaring. The propsrty tlie Agency propo�es to seH � Dervie�nc, Inc. faqs inbo the cabegory coVer�ed by Sectio� 33433.
I have prepared a comprehensive report (included as an adac�rr�ent to this letter) which is required in order bo
comply with Section 33433. Purwarrt b the report, I have conduded th�t the fodowing findings can be inCuded
in the ►esolution aaarwirw the sale:
FINDIf�G �{'1: The Proparty Is curr�tty completely unlmprov�d� and 1he development ot the ProJect wIU
assist in tfie aliminatlon of bll�ht lo the area.
�INDING �2: 8aN M the Property is �nslstent wlth the knplemantatlon pan adopeed pursuant
�0 3ectlon 33490 of tl�e Calltornla Heatth and 3afety Code.
FINDING �i: The conslderaffon Is noR less that tlw Falr Market value.
The raitionale for these fi�dings can be found in the atteched report
Yaxs truly,
Leona�-a, R. wot7v
Leorrard R. Wdk, President •
Real Estate Malysis Services Company (REA8C0)
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This report was prepared to comply with the �equirements of Califomia Heafth and Safety Code Section 33433.
The report contains the following sections: Section 1, a summary of the terms and conditions of the proposed
Dispos�ion and Qevelopment Agreement (the "DDA'� between the Palm Desert Redevebpment Agency (the
"Agency'�, and De►vieux, Inc., a Califomia corporation d/b/a Cuistot (the "Develope�. cor►ceming the proposed
acquisition by the Developer aF ce►tain real property awned by the Agency; Seetion 2, the cost of the DDA to the
Agency; Sedion 3, the estimated value of the interest to be conveyed, detemiined at the highest and best uses
permitted under the Redevelopment Plan; Section 4, the estimated value of the interest to be conveyed,
determined at the use and wdh the cond�ions, covenents and developm�t costs requ�ed by the DDA (the "reuse
value'�; and 5ection 5, �ecommended Findings to be included in the resokition approving the sale.
SECTION 1: SUMIIAARY OF 1HE M�UOR BUSIl�ESS POINTS OF THE DDA:
Reference is rtwde to the ODA tor tull particulars of any provisloo desctibed I�ereln. and in tl�e evenR
of an�► b�on.�► beRwee� er�e pro�►�lor� neran and er�e ooa � oor► snaa oo�ao�.
A The Subiect ProDertv'
1. The Agency awns fee title to certain teal ptoperty (the "Property") in the C�y of Palm Desert (the'CQy").
The Property is legally desc�bed in E�d�bR A of the DOA arM is comp�ised of apprwdmately
16,900 squere feet. (0.39 acxes), on which Devebper mtends to construd a fine restaurant..
2. The P�operty conatitutes a portion of a Mreke acre Master Ske, ownec! in fee title by the Agency and
IegaUy described in F�Q�i�it F of the DDA The Master Site ia to be developed in accordance wdh the
� Master Site PNan (described in 6di�b� G of the DDA), and is adjacent to and east of the Desert Crossing
Shopping Center i� Palm Desert.
B. PurcNase and sale of the Pra�aartr:
1. Subject to tfie terms �d cond�ions of the DDA, the Agency proposes to seU to Developer fee simple
title to the Property for a purchase price d 5750,000.
2. The purchase price ahaq be payable as fotlows: WRhin 2 business days after the DOA has been fully
executed, Developer shaU deposd t20,000 into an interest bearing escrow account, aa �rnest money
(the "DeposR'�, to be credited to the purchase price. Prior to the close of esaow, Developer shap deposit
the baiance of the purchase price wRh Me Escrow Holder. Provided, howev�er, if escrow does nd close
by November 30, 2002, due to Developer's defauR, then the Agency shaA receive, as fiquidated
damages, the Deposit and aN acuued interest, subject to the cond'Rion descr�ed i� Parayraph C.4.
af this report.
3. If Developer fai� to Qu�chase the Proparty whert Developer is ob�gated to do so under the tem�s of the
DDA, and all conditions preoede�t to Developer's ob�gation to purchase the Property hav�e been
satisfied or waived, then the Agency may cancel the Escrow and the Agency shap thereupon be released
from its abligations pursuant to the DDA.
Refer to Article 2 of the DDA for further details about the purchase and sale of the Property.
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SECTION 1: SUMIAARY OF THE IIAA.lOR BUSINESS POIN7'3 OF TF� DDA (CONTi1rUED1:
C. Oaer�irg and closirt� oi Escrow:
1. Within five business days of the Agency's approval of the dDA, the Agency and Developer shaU causs
an escrow to be opened with Escrow Hdder for the sale of the Property from the Agency to Developer.
2. Eacrow shaA cbse after aN the conditans specified in Section 2.3 of the DDA have been m�, but io no
event later than November 30, 2002.
3. ff Escrow does not cbse on or before November 30, 2002 due to the non-satiafaction by the Agency of
the Conditions in Section 2.3.3 of the ODA relating to the permits and entitlementa �ecessary for the
Public Improvements end in SecGon 2.3.4 of the DDA relating to the tuming over by tF�e Agency of the
bu�lding pad, tfien Developer may terminate the DDA and canc�l the escrav, and the DeposR (less hatf
of the escrow cancellation coata) wdl be refunded to Dev�ebper,
4. !f Eacrow doea �d clo�e on or before November 30, 2002 due to the non-satisfaction by Developer
of any c�nd'dion precedent af Section 2.3 of the DDA, but Developer has made a good faRh effort to
satiafy such cond'd'an, then the Deposd (less halF of the escrow cancetlaRion costs) wiN be refur�ded
to Dev�eloper.
Refer to ArtiGe 2 of the DDA for further details about the opening and closing of escrow..
D. Devsloanent of tl�e Pror�e�tv:
1. Devebper shaa devebp, or cause to be developed, the enprovements on the Property in accordance
with the Scape oi Development and !he Schedule of Perfamance (E�ibits B and C of the DDA,
r�pectivety). The cost for developing and consUuding the improvements shaA be bome sdey
by Devebper.
2. Aaenctra ob8cations: .
a. The qqency ahaN de6ver the Property to Devebper at cbse of escrow with a finished
(aver-excavated� badcfdled, rough graded, compacted and cxrtif'�ed) bu�7ding pad. and wrth
available temPora►Y Power, fire protection and wate� s�vice.
b. The Agency shaU construct, or cause to be construeted and campl�ed prior to a date which is nine
months after cbse of escraw, the parking bt and ap uti{�ies described in E�Q�bit C of the DDA as
"Pubkc Improvements'.
Refer to Article 3 and E��bits B and C of the DDA for further detaits about Agency's obligations..
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SECTION 1: SUIIAMARY OF THE MIUOR BU3MES3 POINTS OP THE DDA (COtdi1MJED):
E. Umitatlons on Transfers and Sacurilt► Ir�Eer+osts:
1. Prior to issuance of a Certificate of Completion for the improvements, Developer shaY not seM, assgn,
transfer, matgage, hypaRfiecate or conv�ey (colbd'nrely a"Transfer") the Property or any part thereof, or
any of Oevelupers rghts or obligafans pursuent to the DDA, without tfie Agency's prior Mrritten consent,
subject to certain exceptions deac�bed in Sedion 4.1.1 of the DDA.
Devebper acknowledgee that the identky of Devebper is of particular concem to the Agency, and � is
because of Devebper's identity that the Agency has entered into the DDA with Devebper.
Refer to Artida 4 of the DDA far fuRher details about the IKn�tation � transfers and security �terests.
2. After issuance d a Certificate af Completion for the rnprovements and the opening af the improvements
for busir►ess, Developer shaN have tfie rigM to Tranafer the Property to any pa�ty subject to the conddions
in Section 4.1.2 aF the DDA.
F. lJse of the Pronertv:
^ 1. For as period of twenty yeara after the cbse of escxow, (the "Term of Use'�, Developer and 'ds lesseea,
auccessors and assigns sAaq use the Property and the imprarvemeMs onfy for tfie operation ai a fine
dining restaurant and ancirery uses, and any other usea e�ressly perm�ted by the l�qency.
Reter to Article 5.1 oi the DDA fa further details aboul the defmition of "F'me dining".
2. During the Tertn of Use, De�veloper shaq maintain the Propeny and the mprov�erne�ts thereon in good
cond'Rion and repair and in a manner substantia�r comparable to the highest level of maintenance
provided by owners d developmenta m the Coar.hela Vadey substantisay simifar to and d sknilar age as
the improvements.
3. The common area maintenance costs as described in Exfiib� H oi the DDA and inciuding landscape
maintenance af the Parking Ld Site described in the Easeme�t I\qreement (Exh��it E of the DDA)
shaq be included w�hin the common area e�enses shared by all owners and oocupants of the Property
induded within the Master SRe. Developer ahae be respons�ble for the monthy payments b the Agency
of its pro rata share of the common area e�enses required to maintain the Parking Lat SRe. Devebpers
pro �ata share of such canmon area e�enses ahaH be based on the retio af the number of parking
spaces required for the improvements, which is adctrowladged hy the parties to the ODA to be 72, M tfie
total number of parki� spaces available within the Master Sde.
Refet to Article 5.1.2 af the DDA for furtt�er detads about Developer's payme+rt of common area costs..
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SE,f�ION 1: SUMMARY OF THE MAUOR BUSINESS POINTS OF THE DDA (CONTINUEDZ
F. lJse of tfie Proaertv (coMlnued):
4. Developer covenents and agrees to e�aecute Developer CC&R's as desc�bed in Section 5.4 of the DDA,
and that the CCB�R's shaN burden the Property and shaN run with the land for the benefit of the Agency
and/or the City and their respective aucc�ssors and asagns; provided that U►e cov�enants and
agreements set foRh in Section 5.1 of the DDA shaH e�rce twenty years after the Cbse of Escrow.
Refer to Article 5.4 of the DOA for further det�ls about Developer's CC�R's.
5. For as bng as Me DDA is in effect, Devebper is operating a fine dining restaurant on the Property
featuring French cuisine and dev�ebper is �at in materFal defauR of the ODA beyond any appficable
notice, cure or appea! periods, the Agency shaq nd permR any ather prope�rty wdhin the Master Sde to
be used for the operetion of a fine dining �estaurant, more than 10% of the menu items of which
conatRute French cuisine.
Refer to Articla 5 of the DDA for futther details about Devebpers exclusnre righta.
Ci. Evenls of Detatit. Rs�neclies and Tennkmtion:
1. Subjed to the provisions of Aficles 2 and 6 of the DDA repard'mg Developer's appeal righta, the
occurances whkh cor�stitute a DefauR are descnbed in Articie 6.1. of the DDA.
2. In the eve�t of a DefauR by any Party to ffie DDA prior to the Cbse of Escrow, Me non-defauking Perty
may pursue any end all of tfie remedies provided in Article 2 of the DDA.
3. In the event of a Defauk by any Party to the DDA after the Cbae of Escrow, the non-defauking PaKy
shaA be entdled to the remedies descn�ed in Article 6.2.2 oi ihe DDA.
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SECiION 2 COBT OF THE A�3REEMENT (TH5 "DDA"1 TO THE AC3Et�Y:
The coat of the DDA to the Agency is comprised of the foHowing three components: (1 �. the Iand acqu�ition cost;
(2). the cost of �y improvements to be provided by the Agency; and (3). the projected 'mterest on the source of
funds used to finance the land acquisitionn cost and the improvement cast.
A Tlw Aaencv's land acrn�sition oost
NOl'E: The Agency's p�rctpse was f�sKfed by a loan from fhe City.
1. The Agency purchased the Mastet Site on 11/1/1998 at a purchase price oi 347 917.
Therefore. the acauisition cost far the Master Site can be eomressed as follows:
ACRES SQ. FT.
a. Amount of land 12.0 522,720
b. Cost per acre; per sq. R t278,993 56.40
c. Total cost i3,347,917 =3,347,917
2. Calculation of the oro rata land acauisition cost fw the Proaertv:
I�l07'F: The Properly area k�cludes tt�e gr+oss restauark a�ea plus tl�e amotsk of tand
tor wF�ieh Developer F�ss a no�-e�tchdv�e e�seenent for 72 perldng spaoes.
PERCDIT OF
ACRES SQ. FT. MASTElt SITE
a Groas restaurant erea 0.3880 16,900 Na
� b. Plus parlcing rights area 0.4959 21,600 Na
c. Total area 0.8838 38,500 7.379G
d: Tirnes cost per acro; per aq. ft. E278,993 56.40 n/a
e. Total c�et (pro rata) 5246,565 $246,585 7.379�.
�. Cost d tl�e knorovemerrts to be urovlded bv tfw as�encv:
Tt►e Mtel, estis+ated Project cast for the Master Site (lesa Me land cost and less the cast of the Vis�or's Center)
is 53,705,131.
The portion aMocated to Devetoper ia 5841,737. The cost per acre is t952,343 (5841,737 / 0.8838)
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SECTION 2: COST OF THE AGREEME,NT (THE "DDA"1 TO THE AGENCY (CONT1Nl1ED):
C. Calculatlon of the A�encv's aroiected flrnnce coet for tfie land o�x�cF�ase:
The land acquisition cost was funded by an interest-onty loan from the C�y, whereby the interest payments were
at the aaoroariate LAIF rate. The foNowino tabb descr�es the As�cv's annual iMerest pavments to the CiN:
Loan batance
2. Tmes average
interest rate
'002 TOTALS
585 Na
a996 Na
3. A�nual interest
payme�t (2 montha in
1998 and 11 in 2002)
1998 1999
46,565 E246,585
5.433% 5.25996
503415.2041
When escrow closes on November 30, 2002, Agency will receive $750,000 from Developer, the loan balance
of $246,585 will be repaid and the remaining $503,415 will be used to pay for a po�tion of the improvement costs.
D. Calculatlon oi the Atte�►ct►'a prolecied ti�mnca cost for the Imoro�ements:
The cost of the improvements to be provided by the Agency (5841,737) will be funded from the remaining 5503,415
of Developers, 5750,000 land payment leaving a 5338,322 balance of improvemerrt costs which wnl be
funded by cash proceeds from tax increment.
1. Tha A�ency wiB bse one year of investrne�t incoma that could have been earned on the xi38,322 because the
fopowing year the tax incroment would be used to fund another prqect.
a. At a projeded LAIF rate of 3% per year, the Agency wiM bse 5�0,150.
E. Aaencv's tohl flr�nce cast In 2002 dolhrs•
1. For the lend acquis'R'a�, ban payments to the Cih► 549,227
2. Loat revenue from 5338,322 caah payrr►ent for improvernenffi 510,150
3. Total finance cost 559,37T
F. Total cost of the DDA to the A�en�w:
ACRES SQ. FT.
1. Amount of land sold to Devebper 0.3880 16,900
2. Plus parki�g rights land 0.4959 21,600
3. Totala 0.8838 38,500
DOLLl1R
AMOUNT
4. Land cost (pro rata) 5246,585
5. Plus improvement cast (pro rata) 5841,737
6. Plua fnance cost (pro rata) 559,377
7. Total cost of the DDA to the Agency 51,147,698
2000 2001
46,585 5246,585
6.252% 4.861%
�15.417 512.035
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SECTION 3: The estlmaisd value of the fnbereat �o be caae�ved. datsm�ined at the his�Mst and best uses
pennitted �x�der the Redevelodnent Plan (the "Fair Mark�sR Valua"1: .
After reviewing available, comparabb sales data, and c�onsidering its zoning and locatio�, we have concluded that
the Fair Matket Value of the Property is 520.50 per square foot, a s89Z,980 per acre.
SECTION 4: The e�na�ed value of ttw ir�erest tio ae cor�veved. da�ermk�ed at ttw usa and wfth the
conditions. �rks and dev�aloornent costs reciuh+ed bv the M�ended DDA (tlw "Falr Fieuse Valuo").
In accordance with the te►ms and conditions of the DDA, Devebper wiA pay 5750,000 for the Property and
is required to develop the Property so{ely as a�ins dining restaucant, serving lunch and dinner.
The restaurant wdl xcupy 16,900 gross square feet, and the Developer wiU have a ran-eooclusNe easement
for 72 pa�lcing spaces within the pubkc parking faciGty to be constructed by the A�ency. At 300 square fe� per
parking space, the 72 parking spaces wip occupy an additlonal 21,Bd0 square fe�. During a 24 hou� period, the
parking spaces are e�ected to be used by the restaurant from 10:00 A.M. untN 2:00 A.M. the fofloMring morning, a
taRal of 16 hours. Thereifore, tfie ta1a1 area albcated to the Devebper wi� be the restauranYa 16,900 square feet pius
21,600 square feet muRip6ed by the ratio of 16 d'nrided by 24, or 14,400 square feet; a total of 31,300 square feet.
The Developer's ST50,000 price, e�ressed on a per square foot basis wiY be s23.96 per square foot
(5750,000 / 31,300), wfilch is the Farc Reuse Value.
• l.'_ �L•: !' u�.� 1: l'r_1... '.1�L'1.!
The resok�tion ahaq contain the foAowing fmd'mgs: (1). The sale or lease of the property w� assist in the e�imination
of bl'ght; (2). The sale or lease of the praperty is consisterit wRh the impbmentation plan adopted pursuant to
Sedion 33490 af the Ca�ifomia HeaRh and SaFety Code; end one of the foUowing two add�ional fmdings: (3). The
oonsideration is not less than the fair market value at Rs highest and best use in accordance w�h the redev�elopment
plan or (4). The consideratioti is nat less tfian Me fair reuse value at the use and with the covenants and conditions
and development costs author¢ed by the sale.
The foMowlna fN�dins�s can ba iackdad ln the �esdutior� aoor+cNh� the sale:
FMDMIG �1: The Property is currently compls�ely unknpro�wd, and ths development of the ProJect
wll! assist in the eNm��stlon d bNgM In the area.
FlNDING #�2: Sale of the Property Is � wlth the Nnp�nen�tion Plan adopt�ed
pt�rsw� to Settlon 33480 of the Csiqforraa He�lth and Safety Code.
FlNDING �3: The conslderatlon is nd less that the Fatr Market Value.
'3343UCR3'/20 26•Jun-02 05:13 PM