HomeMy WebLinkAboutRDA T. PLAZA SHPNG CTR 6-17-85TO:
FROM:
SU BJ ECT:
HONORABLE CHAIRMAN AND ME]~BERS O~ THE REDEVEL, OP~ENT AGENCY
COt~IJNITY OEYELOPMENT DEPARTMENT
DESIGN REVIEW AND CONSIDERATION OF AGENCY PARTICIPATION:
TUSTIN PLAZA SHOPPING CENTER
APPLICANT:
REQUEST:
CARVER OEYELOPHENT COMPANY
AUTHORIZATION TO CONSTRUCT A CO~UNZTY SHOPPING CENTER AND ~
FREESTANDING OFFICE BUILDINGS WITH FINANCIAL ASSISTANCE FROM THE
AGENCY
DISCUSSION:
Use Permit 85-9, a proposal by Carver Development to construct the Tustin Plaza
Shopping Center, is located within the Town Center project area. The
Redevelopment Agency is therefore required to consider the physical and
architectural design of a project upon determination by the Planning Commission
that the land use is appropriate for the subject property.
The City Council will be considering at its meeting on June 17th the appealed
Use Permit 85-9 approved by the Planning Commission and alternative designs
presented for Council consideration. The plan ultimately approved by Council is
subject to review by the Redevelopment Agency.
In addition to their land use proposal, Carver Development is seeking financial
assistance for the provision of public improvements and enhanced landscape and
hardscape treatment along Main Street, Newport Avenue, 6th Street and E1Camino
Real. Specifically, Carver Development would be acquiring the project site at a
price which economically favors greater office useage on the larger 7.8 acre
parcel. However, since the city has expressed concern over development of
prime retail property with non-sales tax producing businesses, Carver
acknowledges the city's desire and proposes a community shopping center plan.
To make the shopping center economically viable Carver seeks $583,000 in Agency
assistance to construct the level of quality desired by the city. In return for
the assistance, the project would include improvement of public streets to their
ultimate right-of-way with upgraded landscape and hardscape treatments to
enhance the shopping center.
Prior to staff's consideration of any financial assistance, a fiscal impact
report was required analyzing the projected costs and revenues of the project.
In summary, two types of revenue would be generated: General Fund revenues
which consist of unrestricted sales tax, business license, utility franchises
and other revenues of approximately $11,90} annually upon build out. Annual
recurring costs in theory may reach $46,525~
City Council Report
Carver/Redevelopment Agency
page two
The city would therefore estimate net recurring revenues on an annual basis of
approximately $64,378 as detailed on page five of the fiscal impact analysis
submitted by Stanley Hoffman Associates. Restricted revenues primarily consist
of property tax increment payable to the Redevelopment Agency. As indicated on
page 7, table 2-2, upon build out of the shopping center Start Hoffman
anticipates an increase of tax increment above that presently received for the
property of $1¢5,000 annually commencing in fiscal year 1986-87. Therefore
should the Agency contribute $583,000 to this project, tax increment revenues
would repay the obligation in less than five years. Based upon this scenario it
appears the city would economically benefit through both general fund revenue
and tax increment revenue should the shopping center be successful.
RECOI~ENDATION:
Should the Agency concur with Carver Development's request for contribution up
to $583,000 the Agency should direct staff to commence preparation of a
development and disposition agreement detailing the terms of assistance and
obligation of the developer to construct the center. Staff would recommend the
city administer contracts for public works construction up to 'but not to exceed
the requested amount.
DONALD D LAMM, k.y
Director of Community Development
DDL:do
attachment:
Site plan and elevations/refer to appeal of Use Permit 85-9
Fiscal Impact report from Stanley Hoffman
Community Development Department