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<br />EXCLUSIVE RIGHT TO NEGOTIATE TO URBAN PACIFIC DEVELOPMENT CORPORATION (A-11)
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<br />Roger Kooi, Downtown Development Commission Director, identified the A-11 Site using
<br />~ a Downtown development site map. The site is bounded by First Street on the south,
<br />. Main Street on the east, Third Street on the north, and by Sycamore Street on the
<br />west. The site excludes the historic Builders Exchange building. Kevin Wieck, Vice
<br />President of Development with the Urban Pacific Development Corporation, described
<br />the proposal for this site. The proposal consists of 124 one and two bedroom
<br />apartments; 112,000 square feet of office space; and 38,000 square feet of retail
<br />space. Johannes Van Tilburg, AIA and project designer, narrated a slide presentation
<br />outlining the site area and further describing the proposal. Mr. Van Tilburg
<br />projected the proposal for a mixed-use development inclusive of a six-story office
<br />tower at Third and Main Streets, specialty shops, boutiques, restaurants and having a
<br />total development value of $ 19 - 20 million. Ms. McGuigan inquired regarding
<br />parking, and Mr. Van Tilburg stated that the project includes one subterranean
<br />parking garage. Ms. McGuigan expressed concern that unreasonable demands are being
<br />made of the Downtown Parking Garage. Rex Swanson, Deputy City Manager/Development,
<br />asserted that the site cannot be developed economically with extensive on-site
<br />parking provisions and that the Downtown is different from suburbs in that a central
<br />city undergoes changing demands during the day. Mr. Swanson stated that the Agency
<br />will shortly be contracting for a Downtown parking management study. Jay Meehan, of
<br />CM Properties, addressed the Agency in support of the proposed development and
<br />emphasized the importance of this site to the entire Downtown. Hal Butts, of Warner,
<br />Huston, and Butts, urged caution in Downtown development with regard to parking, and
<br />. voiced the opinion that too much of a demand is currently placed on the parking
<br />structure. Zika Djokovich, Downtown business and property owner, stated that he is
<br />disappointed in the proposed use of the A-11 site, that there is simply not enough
<br />parking in the area, and that residential use is proposed on the same corner of First
<br />and Main Streets. Mr. Swanson reassured the Agency that the results of the pending
<br />parking study will be available prior to any request for a development agreement for
<br />this site. Contingent upon receipt and perusal of a parking management study, it was
<br />moved by Mr. Johnson, seconded by Mr. Hart and carried unanimously (5:0) to grant a
<br />90-day Exclusive Right to Negotiate to the Urban Pacific Development Corporation for
<br />development of the A-11 site.
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<br />EXCLUSIVE RIGHT TO NEGOTIATE FOR REHABILITATION OF 302 CAFE BUILDING
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<br />Mr. Kooi deferred to Edward V. Henning, Downtown Development Commission Assistant
<br />Director, for background on this matter. Mr. Henning recalled that this structure,
<br />located at 302 North Main Street, had originally been included within the A-11 site
<br />boundaries. Pursuant to a commercial rehabilitation feasibility study performed by
<br />Heritage Orange County, however, the desirability of the Agency adopting a proactive
<br />and facilitative role in the rehabilitation of the highly visible structure became
<br />apparent. Through a joint venture arrangement with CM Properties, Heritage Orange
<br />County has made repeated attempts to acquire the building at a fair market value from
<br />4IÞ its present owner, Arthur Jensen, to no avail. Mr. Jensen has indicated no desire to
<br />sell the property, as well as an absence of any effort to improve the exterior
<br />appearance of the building or the current tenant mix. Mr. Henning introduced Ms.
<br />Kathy Les, of Heritage Orange County, and Mr. Jay Meehan, of CM Properties. Ms. Les
<br />explained that the 302 Cafe building, when completed, would be one of the few Art
<br />Deco style buildings in the Downtown. Mr. Hart was excused in consideration of the
<br />possibili ty that Mr. Jensen may be a client of Mr. Hart's private legal practice.
<br />Jack McCulloch, a Downtown property and business owner, expressed strong opposition
<br />to restoring this structure rather than using the parcel for parking. Mr. McCulloch
<br />read briefly from an undated letter to himself from A. J. Wilson, in which the former
<br />City Manager expressed his support for the development of parking in the Downtown
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