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Background and Project Summary
• ENA approved with R.D. Olson Development on
Nov. 21 2010. It required good faith exclusive
negotiations & preparation of a DDA.
• Purpose of DDA 2011-01 is to:
❑ effectuate disposition and development in
accordance with the Pacific Center East Specific Plan,
the South Central Redevelopment Plan
❑ off -set a portion of
City's acquisition of
Reconfiguration and
Project.
the City's costs associated with
right-of-way for the SR -55 Ramp
Newport Ave. Extension, Phase I
DEVELOPMENT
Background and Project Summary
• Site bounded by the SR -55 Freeway, Edinger Ave.
to
the
north, Newport
Avenue
on the east, and
SR
-55
Freeway off -ramp on the
south
• 7.53 acres (3 parcels) to be sold to Developer
• On an additional .85 acre adjacent Water Well
Parcel located in City of Santa Ana to be retained
for water utility purposes, City will provide a
grant under declaration of reciprocal easement
(for parking and access) to Developer.
DEVELOPMENT
Background and ProjectSummary
Hotel Sites (Parcel A & C)
• Hilton Homewood Suites or Class
A Alternatives
— 139 guestrooms
— 4-sto ry
— 1,500 sf of meeting space
— 147 parking stalls to be
provided
— FAR: 0.76
• Hilton Garden Inn or Class A
Alternatives
— 159 guestrooms
— 6 -story
— 4,000 sf of meeting space
— 160 parking stalls to be
provided
— FAR: 0.94
Retail/Restaurant Site (Parcel B)
• 16,000 sf of total rentable Class A
retail space
• 2 separate pads (10,000 sf and
6,000 sf)
• Potential to pad lease each site to
major restaurant/bar or build out
retail space to lease to multiple
tenants
• 132 parking stalls provided
• FAR: 0.17
1
DEVELOPMENT
-- __ S.R. 55 FREEWAY
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LOT C. (EXCWDM WAM WULPARCLL)
SIIF MFA' = 3226 ACRES = 3 98.561 S.F.
LAAl11XIG MFA
cm ¢. 9nuFA wu H.GI. 24.M 5 F. 1 (m) = r4m sr.
Lot C Wn w - ..
" LOT A: LOT B: OVERALL SITE DATA:
um *a RAMF BR,69O /96,]14 = Q94 FAR.
SIIC ARFA = 33.66 AO1E5 = 3133360 S.F. �y I� = 3221 iCRff = 3 98,310 S.F gIL AffA F0.IAL = f6.4 ACfES =3365,&10 SF.
IAIFL 900r OPONP
OHUl6'C ASraves m BUIDIXG iJIFA MGI. 12 L FLx - 101 woos OPFN SPICE PR➢MOFn = SF- i Yj
'f^ MEKL
N,H.S.. 29,M5nU..R 23905 SS. ) = 101,183 Sr. RUAL & SFS. NA 6,000 S.F. CROSS WON FOOTPAINF = 70" S.F. (161)
A = _ RESTWPoMT SIF XA = 1. SF. H.61,. 162 1 - 1M �� GRO55 FLOOR MFA R4FI0 05, (0.80 pll OeEb)
N.T.B. 140[0 _lrm= wc— Ptll£S R@BIRm
R]ON IFFA RATi(I: 101,163 / 137300 = 0.76 FAA NOINO SPICES R£EWEO = 437 SPACES
� ROOR MFA RAIM14N0 J 95,955 = 0.17 FAR
,y' NOIR RG01 oY,N�Fp_FLg ]�[�,
131 XW CI C PksW SPIfF6 PMMIIF,1 ftl �P#54 51VAEP PIRUNG — FAGIOR LRL1LAlI0N:
Nx l B�RrP WATER WELL PARCEL: x.R.s = 142 r 685 = ,:, SPACES
' PAMIIS_®IIRE0. Hpi11E5 SQQ AtT/l B.ON 59F1. 1 SPWEJffiJ 3iFi.)j - 3P 9WC6 H.CJ. - ,66.0.95 - 161 SPICES
NHS. 139 3 • ,X2 SPl'ffi X63NOUNF 14006 SaR. �1 SPACf/IPO S.nl 100 S M S gR ,tea. = f0.06 ACRE = i 3I,Ifi0 S:F CESXMW/g L = 130 r IJIO = 130 SPACE
M.iX Ynl PUMrI PUInIO
9�
TOTAL PAIIXINC SPAC€5 PROV1fE-0� - Y39 SPICES
VICINVTY MAP
CCNC FOND RAOLSOM
d�ra� �� HILTON HOMEWOOD SUITES I GARDEN INN OVERALL SITE PLAN 'E6
SUITES —
IlilMn TUS11N, CALIFORNIA SCALL ,' 50'-0' oA'rE: s2]n1 ,�. �
DEVELOPMENT
Hilton Homewood Suites
Lobby/Public Space
Guestrooms
- A�, AM, �
DEVELOPMENT
Hilton Garden Inn
Lobby/Public Space
Guestrooms
DEVELOPMENT
✓elopment
Cost Category
�`� HMO[]
�'� Garden Inn
Retail
16,000 SF
Total Project
Costs
Land Acquisition
3,600,000
2,598,000
2,560,000
$8,758,000
Other Land Costs
290,918
260,603
155,183
$706,705
Financing/Legal
1,488,020
1,582,997
328,599
$3,399,617
Design Consultants
1,013,462
1,057,934
275,113
$2,346,509
Municipal Fees
1,316,794
1,409,126
209,767
$2,935,686
Construction
13,684,507
15,710,573
2,647,945
$32,043,025
FF&E
3,233,568
3,785,413
0
$7,018,981
Pre -Opening
269,000
392,000
246,718
$907,718
Contingency
746,888
803,899
192,700
$1,743,487
Developer Fee
1,025,726
1,104,022
264,641
$2,394,389
Total Project Costs
$26,668,885
$28,704,567
$6,880,665
$62,254,117
Project Financial Summary & Impacts
Purchase Price
❑ Parcel A: $3,600,000 or $27 sq.ft. based on survey (Phase 1
Purchase)
❑ Parcel B: $2,550,000 or $26.50 sq.ft. based on survey ( Phase 1
Purchase)
❑ Parcel C: $2,560,000 or balance remaining after Phase 1 which
would equal $8,710,000 for all Phases (Phase 2 Purchase)
Value of Easement across Water Well Parcel
❑ $48,000
Purchase Price & Value of Easement
❑ Not Less than "Fair Market Value " based on an Independent
Appraisal conducted by City
Deposit of $250,000
❑ $150,000 applied to Phase I
❑ $100,000 to Phase 2.
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IIA DEVELOPMENT
Project Financial Summary & Impacts
Projected RDA and City Transient Occupancy
(TOT) Revenues at build -out
LJ $ 4701,000 annually to RDA South Central Project
LJ $700,000 annually under current TOT rate of 6%
or $25.5 million over 25 years could go up to
$1,200,000 annually or up to $43.76 million over
25 years if TOT rate is raised subject to a
Proposition 218 hearing
1A DEVELOPMENT
Summary of Other DDA Provisions
• Close of Escrow:
❑ Phase 1: earlier of 60 days after rough grading or building
permits or 18 calendar months after Effective Date of DDA
❑ Phase 2: earlier of 60 days after rough grading or building
permits or 12 months after Phase 1 closing
• Developer retains a financing contingency expiring 6
months from "Effective Date" of DDA
• Developer required to submit evidence of funds
available/financing
• Developer has the normal 90 day due diligence period
• Property is being sold on a "AS -IS, WHERE IS, WITH ALL
FAULTS" basis
• Developer required to obtain all land use entitlements
�'- DEVELOPMENT
Summary of Other DDA Obligations
• Developer will fund all project development costs
including all direct, and indirect costs for acquisition,
construction and entitlements there is no City or
RDA subsidy involved.
• 25 Year Land Use Covenant on Class A Hotel and Retail
Uses
• DDA includes other typical DDA provisions, including:
Schedule of Performance, transfer restrictions, City's
rights of reversion or repurchase if there is a Developer
Default, maintenance covenants, requirements for
insurance and indemnification and default provisions
and available remedies.
A'A DEVELOPMENT
Recommendations
• Adopt Resolution No. 11-48
❑ Finding that an Initial Study was completed & evaluated
Project. Based on the Initial Study and a review of the
Pacific Center East Specific Plan EIR 90-01 and Supplement
#1 for the Specific Plan, it has been determined that no
additional environmental analysis or action is required.
Additional Findings that support this conclusion are
contained in staff report and in Resolution No. 11-48
• Approve DDA and authorize execution, subject to any
non -substantive modifications as may be determined
necessary, and authorize staff to carry out any and all
actions to implement the DDA and as required for
closings.
DEVELOPMENT