80A - BOWERS MUSEUM CORP 1902-1914 N MAIN STREET

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Joint P.H.- DDA with The Charles Bowers Museum Corporation for 1902-1914 North Main Street February 17, 2009 Page 2 1) the City Council adopt a resolution making certain findings with respect to the consideration to be received by the Community Redevelopment Agency pursuant to a Disposition and Development Agreement between the Community Redevelopment Agency and The Charles Bowers Museum Corporation, a California non-profit public benefit corporation, for the sale of certain real property in the Merged Redevelopment Project Areas and approving the sale of said real property upon the terms and conditions contained in that Agreement, and 2) the Community Redevelopment Agency adopt a resolution approving a Disposition and Development Agreement with The Charles Bowers Museum Corporation, a California non-profit public benefit corporation (Museum). DI ~C'i1S ST(~N In September 2005, the City Council and Redevelopment Agency approved and authorized several actions to facilitate the 30,000 square foot expansion of the Bowers Museum. As part of the transaction, the City effectuated a land exchange with Steadfast Companies, a residential developer who owned the property immediately north of the Museum. Under the exchange, Steadfast was to develop a luxury condominium project on the City's existing 20th Street parking lot, and the Museum was to expand its operation on the northerly Steadfast parcel. The Museum has completed its $14 million expansion; however, the Steadfast development has been on hold due to market conditions. Steadfast recently expressed a willingness to sell the lot to the Agency as they are not interested in pursuing development of the site. Steadfast has agreed to sell their parcel to the Agency for $1,300,000, which is considerably below market value. In turn, the Agency proposes to enter into a Disposition and Development Agreement (DDA) with the Museum for parking on an interim basis and future museum expansion. The DDA provides that the Agency will convey the property to Bowers for $1. At such time as Bowers determines the scope of its future expansion, the appropriate zoning actions will be taken. In the meantime, the existing parking lot will remain and be maintained by Bowers. The DDA contains a deed restriction for the term of the project area (2026) to allow only a public and/or museum use on the property. In return for the property, the Bowers Corporation will be reimbursing the City's general fund for prior year operating expenses in the amount of $1.3 million. These funds will be paid after close of escrow on the parking lot parcel. The City Council will need to take a subsequent action to appropriate the funds once received. 80A-2