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Home My WebLink AboutRDA O2 REDEV PROPERTY 04-15-02AGENDA REPORT RDA NO. 2 04-15-02 MEETING DATE: TO: FROM: SUBJECT: APRIL 15, 2002 400-10 WILLIAM A. HUSTON, EXECUTIVE DIRECTOR REDEVELOPMENT AGENCY STAFF APPROVAL OF AMENDMENT NO. 1 TO DISPOSITION AND DEVELOPMENT AGREEMENTS FOR THE REDEVELOPMENT OF PROPERTY LOCATED 301 EL CAMINO REAL SUMMARY Agency approval is requested for Amendment No. I to the Old Town Plaza Commercial Rehabilitation Project Disposition and Development Agreement (DDA) for a site to be redeveloped in the Town Center Project Area. RECOMMENDATION Staff recommends the Redevelopment Agency take the following actions: Approve Amendment No. 1 to the DDA between the Tustin Community Redevelopment Agency and Philippe Iszak, Marta Escabar, Charles C. Virzi and Patricia J. Virzi, all as Tenants in Common ("Owner"), for rehabilitation of the commercial property located at 301 El Camino Real. Approve an additional amount of $7,500 out of the Tustin Lighting District funds, thereby increasing the total amount to $87,500 for the rehabilitation of the commercial property. FISCAL IMPACT The Agency Assistance for the commercial rehabilitation project is estimated not to exceed $80,000 from Town Center Redevelopment Project tax increment funds and $7,500 from the Tustin Lighting District funds. BACKGROUND/DISCUSSION On February 20, 2001 the Agency approved a Development and Disposition Agreement for the commercial rehabilitation project of the property at 301-307 El Camino Real. The Old Town Plaza Commercial Rehabilitation Project DDA with the Owner calls for the renovation of the commercial property at 301-307 El Camino Real to improve the business environment in the Old Town Tustin commercial district. The Commercial Rehabilitation Project DDA requires Owner to construct certain rehabilitation improvements to the commercial property. The improvements will be William A. Huston Approval of Amendment No. 1 to DDA for 301 El Camino Real April 15, 2002 Page 2 constructed in compliance with all provisions of the DDA and with all "Conditions of Approval" stipulated by the Tustin Planning Commission, the City Council and other applicable governmental agencies having jurisdiction. Under the DDA, the total rehabilitation budget was estimated to be $116,250 with total Agency assistance to be in the sum up to $80,000. The Owner's obligation for the improvements is the sum not less than $36,250. During the course of construction the Agency and Owner identified desirable improvements within the budgeted amount, specifically the undergrounding of existing overhead electric utility lines and provision for installation of lighting and electrical utilities as part of the Agency planned public alley improvements in the Old Town district, but were unable to completely eliminate the cost overruns without substantially diminishing the quality of the improvements originally described in the DDA. The Owner and Agency have negotiated mutual contributions to cover the increased costs for the Rehabilitation Project. The Owner's contribution would provide to the City of Tustin a public utility easement and right of entry for installation of public improvements along the easterly boundary of the property adjacent to the public alley and Agency's contribution would increase to its sum up to $87,250. Agency financial assistance is to be provided as progress payments to reimburse the Owner for the construction of the Rehabilitation Improvements. CEQA CATEGORICAL EXEMPTION The Commercial Rehabilitation DDA and project has been determined to be categorically exempt pursuant to Class 3, Section 15303 of Title 14, Chapter 3 of the California Code of Regulations (Guidelines for the California Environmental Quality Act). FINDING OF BENEFIT The site is located in the Town Center Project Area. On March 6, 2000 the Tustin Community Redevelopment Agency adopted a Second Five-Year Implementation Plan for the Town Center and South/Central Redevelopment Project areas for fiscal years 2000-2001 through 2004-2005. The Implementation Plan was composed of two parts, a five-year plan for redevelopment activities and a five-year plan for housing activities. -'-I- William A. Huston Approval of Amendment No. 1 to DDA for 301 El Camino Real April 15, 2002 Page 3 The proposed commercial rehabilitation project is consistent with the Implementation Plan's five-year plan for redevelopment activities for the Town Center Project Area. The Agency's assistance will rehabilitate the existing substandard and deteriorating structures to improve building conditions, increase functionality and desirability, and to integrate design characteristics with the aim of creating a cohesive commercial district in the Project Area. The project will remove a blighting influence in the Project Area due to deterioration, age and obsolescence, and stimulate expansion and retention of existing and new business in the Project Area. Christine Shingleton Assistant City Manager Attachments RDA~rdareport~Apr 15 Amend No 1 Old.Town Plaza.doc AMENDMENT NO. 1 TO OLD TOWN PLAZA COMMERCIAL REHABILITATION PROJECT DISPOSITION AND DEVELOPMENT AGREEMENT by and among THE TUSTIN COMMUNITY REDEVELOPMENT AGENCY, as Agency and PHILIPPE IZSAK, MARTA ESCABAR, CHARLES C. VIRZl, AND PATRIClA J. VIRZI as Owner - T' AMENDMENT NO. 1 TO OLD TOWN PLAZA COMMERCIAL REHABILITATION PROJECT DISPOSITION AND DEVELOPMENT AGREEMENT This Amendment No. 1 is entered into by and among the Tustin Community Redevelopment Agency, a public body and politic, to wit, a California community redevelopment agency ("Agency"), and Philippe Iszak, Marta Escabar, Charles C. Virzi, and Patricia J. Virzi ("Owner"), with reference to the following facts: A. On May 10, 2001, Agency and Owner entered into a Disposition and Development Agreement (the DDA) with regard to the rehabilitation of the commercial Site as more fully described therein and known as the Old Town Plaza Retail Center. B. Under the provisions of the DDA, Owner is required to construct or cause the construction of rehabilitation improvements as described more fully therein. In addition, the DDA identifies the estimated costs for such improvements to be $116,250.00, and that the costs for the Rehabilitation Project to be borne as follows: (1) the sum not less than $36,250.00 by Owner; and (2) the sum up to $80,000.00 by Agency. C. Owner and Developer have obtained responsible contractor bids for the Rehabilitation Project, which total $123,750.00 and under the provisions of the DDA the Owner and Agency negotiated to increase their contributions to cover the increased costs for the Rehabilitation Project. D. The Agency has an interest in seeing the rehabilitation improvements substantially as originally proposed. NOW AND THEREFORE, based on the above facts and the mutual promises and conditions contained herein, the parties hereto agree as follows: 1. Agency agrees to increase its contribution to the costs to be borne by the Agency up to the sum of Eighty Five Thousand Five Hundred Dollars ($87,500.00). 2. Owner agrees to provide to the City of Tustin a public utility easement with Right of Entry along the easterly boundary of the Property adjacent to the public alley to provide for installation of lighting and electrical utilities as part of the Agency's planned public alley improvements in the Old Town commercial district attached hereto as Exhibit 1. 3. Except as expressly amended herein, all other provisions of the DDA shall remain in full force and effect. 4. The effective date of the Amendment No.1 shall be the date when it shall have been signed by Agency. IN WITNESS WHEREOF, Agency and Owner have each signed this Amendment No. 1 on the respective dates set forth below. Dated: "Agency" TUSTIN COMMINITY REDEVELOPMENT AGENCY, a California community redevelopment agency APPROVED AS TO FORM: By: By: Lois E. Jeffrey, Agency Counsel ATTEST: Recording Secretary Dated: "Owner" By: Philippe Iszak By: Marta Escabar By: Charles C. Virzi By: Patricia J. Virzi Recording requested by City of Tustin When recorded return to: City of Tustin City Clerks Office 300 Centennial Way Tustin, CA 92780-3715 APN 401-585-02 SPACE ABOVE THIS LINE FOR RECORDER'S USE EASEMENT DEED For valuable consideration, receipt of which is hereby acknowledged, Philippe Izsak and Marta Escobar, husband and wife, as Community Property, as to an undivided 65% interest, and Charles C. Virzi and Patricia J. Virzi, husband and wife, as Joint Tenants, as to an undivided 35% interest, all as Tenants in Common, hereinafter collectively referred to as "Grantor", do hereby grant to the City of Tustin, a Municipal Corporation hereinafter referred to as "GRANTEE", an easement and right-of-way for street, alley, utilities, landscaping and other public purposes, in, on and over the real property in the City of Tustin, County of Orange, State of California, described as: See EXHIBIT "A" and as shown on Exhibit "B" attached hereto and by reference made a part hereof. By By Philippe Izsak Date Marta Escobar Date By By. Charles C. Virzi Date Patricia J. Virzi Date C:~My Documents\D Donahue'.l-17-02 301 E! Carnino legal\Easement Deed, Alley.doc State of California ) ss County of Orange ) On ,20 before me appeared , a Notary Public, personally personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the instrument the person, or the entity upon behalf of which the person acted. executed the instrument. Witness my hand and official seal. Signature of the Notary C:\My Documents\D Donahue\1-17-02 301 El Cam[no legal\F_.asement Deed. Alley.doc EXHIBIT "A" ALLEY - EAST OF EL CAMINO REAL BETWEEN MAIN STREET AND THIRD STREET LEGAL DESCRIPTION THE EAST 3.83 FEET OF THE WEST 140.00 FEET TOGETHER WITH THE SOUTH 4.00 FEET OF THE OF THE EAST 12.00 FEET OF THAT PORTION OF THE WEST 140.00 FEET OF THE NORTH 162.50 FEET OF BLOCK B OF TRACT NO. 3, IN THE CITY OF TUSTIN, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS SHOWN ON A MAP RECORDED IN BOOK 9, PAGE 4 OF MISCELLANEOUS MAPS, RECORDS OF SAID COUNTY. THE ABOVE DESCRIBED PARCEL CONTAINS 656.86 SQUARE FEET PREPARED UNDER MY SUPERVISION: DENNIS T. DONAHUE, PE DATE C.'\My Documents~.'D Donahue',1-17-02 301 El Camino legal',1-17-02 Alley Legal.doc EXHIBIT "B" ALLEY-EAST OF EL CAMINO REAL BETWEEN MAIN STEET .~qD THIRD STREET PLAT TO ACCOMPANY LEGAL DESCRIPTION THIRD STREET 40' 140.00' 4.01 140.00' 12.00' PREPARED UND .Eg MY SUPERVISION / ~,,?..,~.~ ~ ,..' /.,, , DENNIS T. DONAI-IUE, PE DATE Hall & Foreman, Inc. · Civil Engineenng · P1anmng · Surveying · Public Works 2o.3 N Goide~ Circle Dr. Suil[e 300 ,Sohio Ano. CA 92705-4010. 714/664-0570 4739 1-28-02 EAST At. LEY