08/20/1985 - Laserfiche WebLink

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", ", . , . . 8 that staff had looked forward to bringing forth these recommendations and requested hat the Agency approve them. He then announced that Ms. Sandi Daniels, Project Area Manager, would make the staff presentation on the first public hearing. JOINT PUBLIC HEARING REGARDING OWNER PARTICIPATION AGREEMENT FOR THE C-7 SITE WITH MAIN STREET PARTNERS Chairman Griset announced that it was the time and place for the Joint Public Hearing of the Community Redevelopment Agency and the Council of the City of Santa Ana for the proposed sale of property by the Community Redevelopment Agency of the City of Santa Ana to Main Street Partners. He added that the site is bounded on the north by Owens Drive, on the west by Main Street and on the south and east by the Santiago Creek. He then asked that staff identify the property or issues and give the staff recommendation. The Project Area Manager stated that in February of 1985, the Redevelopment Agency granted an exclusive right to negotiate to Main Street Partners for development of the C-7 site, generally located at the southeast corner of Main Street and Owens Drive. She added that the developer is proposing to construct a $20 million, ten-story, 220,000 square foot office building with structured and surface parking for approximately 680 vehicles. She pointed out that they have an option to purchase two acres of the 4.76 acre site and are requesting that the Agency assist in assembling the remaining properties. She stated that staff had held several meetings with the tenants and owners of the property in this area and that they had expressed concerns about the developments being proposed for the surrounding area such as Fashion Square and others in the City of Orange. She pointed out that there primary concern was about potential traffic congestion. She added that there would be a new traffic signal installed at the intersection of Main and Owens and that Main Street would be widened to accommodate the additional traffic in the area. She stated that the developer will advance to the Agency all necessary funds, which will amount to approximately $1.3 million, to acquire the third party parcels. She added that the purchase price to be paid by the developer for the sales parcel is $975,000 or $17.50 per square foot based on a reuse appraisal prepared by Keyser Marston. She stated that the balance will be considered as a loan by the developer to the Agency to be repaid with tax increment generated solely by this development. She added that, in order to ensure a timely repayment for the City property, sixty percent of the increment will be pledged until the debt is retired, resulting in an estimated six-year payment period. She added that, following this payment, 100% of the increment will then be applied against the balance, resulting in approximately a ten-year repayment period for the developer's loan at an annual interest rate of 12%. She then introduced Mr. William Singer of William Singer Associates, one of the partners in the Main Street Partnership. Mr. Singer stated that the Main Street Partnership was a joint -2-