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HomeMy WebLinkAboutRDA 02 LIBRARY EXP. 12-09-02AGENDA REPORT RDA NO. 2 12-09-02 MEETING DATE: ,DECEMBER 9, 2OO2 TO: FROM: SUBJECT: WILLIAM A. HUSTON, EXECUTIVE DIRECTOR REDEVELOPMENT AGENCY STAFF REQUEST FOR AUTHORIZATION TO EXTEND OPTION TO PURCHASE TIME PERIODS AND TO RENEGOTIATE AN EXTENDED OPTION PERIOD 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 335-339 Preble Drive (Blanchard); 300-304 Third Street (Shinagawa); 325-329 Preble Drive (Potiker); and 305 E. Main Street (Masonic Temple). RECOMMENDATION It is recommended that the Agency authorize the Executive Director or his designee to extend each option period as necessary through March 15, 2003 and to negotiate an additional time frame for such extension through at least the expected conclusion of the Second Funding Cycle under the California Library Bond Act. FISCAL IMPACT There are two existing remaining option periods in each Option to Purchase Agreement as follows: December 15, 2002 through February 1, 2003 and February 1, 2003 to March 15, 2003. Exercise of each option period requires payment of $1,000 to each property owner for a total cost of $8,000 for all four properties through March 15, 2003. Adequate funds are available in the Town Center Debt Service Fund. Staff would return to the Agency for approval of any extension payments needed beyond March 15, 2003. BACKGROUND/DISCUSSION In conjunction with the Tustin Library Project, the Agency previously entered into Option to Purchase Agreements for certain properties as follows: William A. Huston, Executive Director December 9, 2002 Page 2 Owner Address APN No. Blanchard Shinagawa Potiker Masonic Temple 335-339 Preble Drive 300-304 S. Third Street 325-329 Preble Drive 305 E. Main Street 401-592-12 401-592-10 401-592-11 401-592-13, 14, 15 These subject agreements provide for two remaining option extension periods through March 15, 2003 with a provision in the agreement which also provides for the potential for additional time frames for extending the option agreement by mutual consent of the property owner and City. If the City wishes to proceed with submittal of an application for the Second Funding Cycle under the California Library Bond Act, current option extensions in the agreements through March 15, 2003 will be required as well as negotiation of an additional extension of the option period through at least November 1, 2003. Any subsequent agreed upon extensions to the original Option to Purchase Agreements will be brought back for Agency approval. Christine Shingleton (/~/ Assistant City Manager"'