HomeMy WebLinkAboutRDA 01 LIBRARY EXP 12-09-02AGENDA REPORT RDA NO. 1 12-09-02 MEETING DATE: I)ECEm~ER 9, 2002 TO: FROM: SUBJECT: WILLIAM A. HUSTON, EXECUTIVE DIRECTOR REDEVELOPMENT AGENCY STAFF. REQUEST FOR AUTHORIZATION TO EXERCISE THE OPTION TO PURCHASE AGREEMENTS FOR CERTAIN REAL PROPERTY FOR THE TUSTIN LIBRARY EXPANSION PROJECT SUMMARY The Agency previously authorized the City Manager/Executive Director to enter into Option to Purchase Agreements for property necessary for the Tustin Library Expansion Project located at 285 Main Street (De Nicola) and 280-284 E. Third Street, 320-324 Preble and 330-334 Preble Drive (Emery). RECOMMENDATION It is recommended that the Agency authorize the Executive Director or his designee to provide written notice of the exercise of the Option to Purchase Agreements for the De Nicola and Emery properties on or before December 15, 2002 (Option Period) setting forth an intended purchase price to be paid by the Agency based on an Agency appraisal of the fair market value of the properties, and to negotiate purchase of the subject properties. FISCAL IMPACT Adequate funds are available in the Town Center debt service funds to fund the acquisition of the subject properties subject to subsequent approval of a purchase agreement by the Agency which would also involve a specific appropriation request. BACKGROUND/DISCUSSION The Agency and City have completed design studies and propose removal of the existing Tustin Library Branch Library and construction of a new single story facility on the present site, expanded to include additional land area not currently owned by the Agency or City. The Agency has previously entered into Option to Purchase Agreements for properties at 285 E. Main Street (Walter and Marilyn Emery: APN No. 401-593-04) and at 280-284 E. Third Street and 320-324 and 330-334 Preble Drive (APN No. 401-593-1,2, 3). William A. Huston, Executive Director December 9, 2002- Page 2 While the City was unsuccessful in obtaining California Library Bond Act funds in the First Funding Cycle on December 2, 2002, development of the Tustin Library Expansion project remains a priority of the City. There will be two more cycles of funding: the Second Funding Cycle will provide approximately $110 million and the Third Funding Cycle all remaining funds (approximately $40 million). The application submittal dates for each additional cycle is as follows: Second Funding Cycle: Third Funding Cycle: March 28, 2003 January 16, 2004 At each application submittal stage, the development site must be secured either by actual ownership, purchase agreements or option agreements. Unfortunately on both the Emery and De Nicola properties the current option agreements expire December 15, 2002 and were initially quite expensive to secure with no defined extended option periods previously agreed to by the owners. Staff is also concerned that a negotiation of option extension through the fall of 2004 (anticipated end of the Second Funding Cycle) would be difficult to secure and not cost effective if the subject properties are necessary to implement a library expansion project. Staff, therefore, seek authorization to proceed with the exercise of the option to purchase and release of a notice of intent to acquire both properties at the Agency's appraisal value. Staff will submit to the Agency in the future any negotiated purchase agreements for Agency approval when signed by the subject property owners. Christine Shingleton ~/' Assistant City Manager