HomeMy WebLinkAboutRDA RESCO DEVELOP 01-06-86 '~-'9EVELOPMENT AGENCY
AGENDA
1-6-86
Inter- Com
DATE: JANUARY 6, 1986
TO:
FROM:
S U BJ ECT:
THE HONORABLE CHAIRMAN AND REDEVELOPMENT AGENCY MEMBERS
COI~IUNITY DEVELOPMENT DEPARTMENT
RESCO*DEVELOPMENT
RECOI~ENOED ACTION:
It is recommended that the Redevelopment Agency approve the Development
Participation Agreement between the Tustin Community Redevelopment Agency, the
Red Hill Edinger Partnership and the city of Tustin; and authorize the Chairman
of the Redevelopment Agency to execute the agreement.
BACKGROUND:
The Redevelopment Agency has previously approved the plans proposed by Resco
Development for the construction of 62,100 square feet of R&D office and 5,470
square feet of restaurant use on a 4.7 acre site, located on the northwesterly
corner of Red Hill and Edinger Avenues.
The original development concept was amended to incorporate restaurant use, on
the condition that the Redevelopment Agency contribute up to $250,000 toward the
cost of public improvements necessary to support the project.
An analysis of costs and revenues was completed prior to the Redevelopment
Agency's approval in concept of the $250,000 public improvement contribution,
which indicated that return from the project in the form of sales taxes and
property tax increments would repay the Agency contribution within five years.
A Development Participation Agreement has been prepared between the Tustin
Community Redevelopment Agency, the city of Tustin, and the Red Hill Edinger
Partnership (the limited partnership Resco has formed to carry out the
development), which outlines the obligations of the Agency, the City, and the
Developer. The Agreement provides that:
1)
The city of Tustin will loan funds to the Tustin Community Redevelopment
Agency in an amount not to exceed $250,000 for the purpose of carrying out
the Agency's obligations under the Agreement. The Agency will repay the
loan as soon as tax increment funds are available for that purpose.
2)
If construction of the project is complete within one (1) year of the date
of the Agreement, the Tustin Community Redevelopment Agency will reimburse
the Developer for the actual cost of specific off-site public improvements
in an amount not to exceed $250,000.
Redevelopment Agency
Resco
page t~o
3) Reimbursable public improvement expenditures will be those based on plans
and bids ,approved by the city Public Works Director.
The Redevelopment Agency action of April 25, 1985, approving the $250,000 public
improvement contribution also contemplated the payment of Circulation
Improvement Fund fees for the development. The Agency should be aware that,
since the building permit for the R&D portion of the development was approved
prior to the effective date of the Circulation Improvemnt Fee peogram, fees will
not be collected for this portion of the development. The restaurant site will,
however, be subject to Circulation Improvement fees.
Redevelopment Consul rant
MW:do
Community Development Department