65A - SANTORA BUILDING AD HOC RPT

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REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: JULY 2, 2012 TITLE: SANTORA BUILDING AD HOC REPORT 1 CITY MANAGER RECOMMENDED ACTION Receive and file. DISCUSSION CLERK OF COUNCIL USE ONLY: APPROVED ? As Recommended ? As Amended ? Ordinance on 1 s' Reading ? Ordinance on 2"' Reading ? Implementing Resolution ? Set Public Hearing For_ CONTINUED TO FILE NUMBER In light of the property owner of the Santora Building considering the sale of the historic building (located at 207 N. Broadway) to a religious institution, supporters of the arts and the Downtown Artists Village attended public meetings of the City Council to protest the sale. Because of the significant investment made by the City in the Downtown Artists Village and the City's support of the arts, Mayor Pulido appointed an ad hoc committee consisting of City Council Members David Benavides, Carlos Bustamante and Michele Martinez to review prior agreements between the owner of the Santora Building, the City and its former Community Redevelopment Agency (CRA). The Ad Hoc Committee met on May 24, 2012 at 3:00 pm. After receiving a report from staff and comments from numerous community members representing the arts and the Artists Village, the Ad Hoc Committee directed staff to prepare this report to Council and to include as attachments the former agreements and easements referenced in the report. Analysis 1. Previous Agreements • Feb. 20, 2001 -Rehabilitation Loan Agreement between CRA and Santora Partners for $450,000 (Exhibit 1). Loan Agreement dated April 27, 2001. Contains use covenant for "art related uses" for 10 years (Section 401 A) and Attachment No. 4 "Use Covenants and Permitted Uses" with 80% of leasable square footage of Santora Building, excluding restaurant area, for art-related uses. 65A-1