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HomeMy WebLinkAboutRDA 02 LIBRARY FUNDS 10-17-05 8 AGENDA REPORT Agenda Item RDA2 Reviewed: #£ City Manager Finance Director MEETING DATE: OCTOBER 17, 2005 TO: FROM: WilLIAM A. HUSTON, EXECUTIVE DIRECTOR REDEVELOPMENT AGENCY STAFF SUBJECT: APPROPRIATION OF FUNDS FOR THE TUSTIN LIBRARY PROJECT COMMERCIAL RELOCATION ACTIVITIES. SUMMARY Agency appropriation of funding is requested for relocation of commercial tenants located on City-ownedproperty based on Notice of Entitlement and Conditional Entitlements letters. RECOMMENDATION Staff recommends that the Redevelopment Agency appropriate $285,000 from the unappropriated Town Center Redevelopment Project Area fund balance for expenses associated with relocation of commercial tenants as needed for the Tustin Library Project. FISCAL IMPACT The anticipated fiscal impacts for the relocation of the commercial tenants at the properties located at 295 East Main Street ançJ 305 East Main Street is in an amount of approximately $285,000. Said amount is based on a current estimate which may require a future adjustment. BACKGROUND In January 2004 the Agency authorized the City Manager to execute an Agreement with Overland Pacific & Cutler, Inc. for property management and relocation services associated with the Tustin Library Project and approved appropriations in the amounts of $42,300 for property management and commercial relocation consulting services and of $872,700 for housing related relocation payments and consulting services. At that time, Staff indicated that the City would continue the occupancies of the commercial properties until the City was further along in the architectural design and funding process with the rental payments to cover property management expenses. Staff also indicated that a subsequent estimate and appropriation William A. Huston Appropriation for Commercial Tenant Relocations October 17, 2005 Page 2 request would be brought forward to the Agency in the future for funding associated with the commercial tenant relocation payments. At this time, the City anticipates relocation of the commercial tenants to occur by or before mid January, 2006 to allow for the orderly and timely relocation of the tenants so that the City may complete the site investigations as a part of the construction design process. Under the previously approved Consulting Services Agreement with Overland Pacific & Cutler, the consultant performed preliminary investigations of suitable relocation properties to serve the tenants of the properties, and prepared individual relocation benefit calculations. FINDING OF BENEFIT The Properties are located in the Town Center Project Area. In March, 2000, the Tustin Community Redevelopment Agency adopted a Second Five-Year Implementation Plan for the Town Center and the South/Central Redevelopment Projects for fiscal years 2000-2001 to 2004-2005. Anticipated accomplishments and expenditures for the five-year period included property acquisitions, design studies and State funding assistance applications to support and facilitate the redevelopment and expansion of the Tustin Library. The Tustin Library Project is consistent with the Implementation Plan for the Town Center Redevelopment Project Area. It would remove the existing library facility in the Project Area, which is nearing the end of its useful life and which is characterized by a number of deterioration problems, over-utilization and insufficient parking, and assemble aging disparate ownership apartment buildings and two commercial properties to provide for the much needed expanded library. The proposed project will substantially expand the Tustin Branch Library and its services, provide educational and recreational improvements, and stimulate economic development in the area. Approval of the proposed appropriation of funds requested herein will allow the expeditious relocation of all remaining commercial tenants at the properties. Staff will be available at the Agency meeting to answer any questions the Agency may have. ~~~ Redevelopment Program Manager rda reportlOct 17 2005 Preble Drive Relocation Additional Appropriation.doc