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Second Implementation Agreement <br />with DSC & Grant of CalTrans Easement <br />April 6, 2009 <br />Page 2 <br />as a surface parking lot. The original agreement called for DSC to have <br />financing and a building permit in place for the structure prior to <br />conveyance; however, it has become apparent that DSC would be in a <br />stronger position to secure financing and/or grants if they own the <br />property. <br />The first phase of the DSC included the remodeling and expansion of the <br />former Barker Brothers furniture building to a total of 59,205 square <br />feet. This facility was developed on the southerly portion of the site. <br />In the southern most triangular tip of the site, a large open cube was <br />built 117 feet tall, which has now been covered with a skin. In 2002, <br />the First Implementation Agreement to the DDA and amendments to the City <br />Development Agreement and associated planning documents were approved to <br />provide for an increase in the ultimate build-out of the site and <br />accommodate a bike path (under construction)to connect the existing bike <br />path along Santiago Creek to an under-crossing of the I-5 Freeway. <br />Pursuant to the approved zoning, the site can be developed with up to <br />125,725 square feet of exhibit and public space, a 275 seat theater <br />(18,000 square feet), and a separate office and storage building attached <br />to the 257 space parking structure. <br />In regard to the proposed highway easement, in the mid 1980s, the State <br />of California Department of Transportation (CalTrans) built the Broadway <br />Overcrossing over Route 5 and the Santiago Creek Channel. During the <br />design phase of the project, CalTrans identified the need for a highway <br />easement parcel over the City' s/Agency' s real property at the north end <br />of the bridge. CalTrans recently determined they had not acquired it as <br />intended. In 2006, the City granted its portion of the easement to <br />CalTrans and now stands ready to accept the Agency's portion (see Exhibit <br />2). CalTrans has been maintaining the bridge since its construction and <br />has indicated it plans to continue maintaining the bridge. Staff has <br />been working with CalTrans and supports the donation of the highway <br />easement. <br />CEQA COMPLIANCE <br />In accordance with the California Environmental Quality Act, the proposed <br />project is exempt from further review. General Rule Exemption <br />Environmental Review No. 2009-27 will be filed for this project. <br />3-2 <br />