05 EXCLUSIVE NEGOTIATING AGMT 2012-11-19

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Exclusive Negotiating Agreement and Keyser Marston Amendment November 19, 2012 Page 3 changes that occurred as a result could not have been accomplished without the assistance of the developer, and their willingness to assume the new obligations, while working with the Agency to keep the project within the original budget. To date, all requirements of the DDA as amended and Settlement are being implemented pursuant to the terms of said agreements. Construction of the new and rehabilitated rental units is underway, with a lottery held this month (November) forthe first of the units to come on line. Plans for the for-sale units are being finalized with construction expected to commence early in 2013. As called for the in agreement, the developer has incorporated the child care and retail spaces, which are under construction in the 74-rental unit podium building. Additionally, staff facilitated a connection with the County's Child Care Coordinator, whom the developer has been working with on space design as well as identifying a provider. The developer is also working with staff to commence the marketing and outreach for the retail space. An ad hoc public art committee was established by the Agency with broad representation from the community involved in the Station District outreach effort Lacy Neighborhood President, business community representative from Waterline Technologies, SACReDIKennedy Commission representative, Santa Ana Council of Arts and Culture President, CSUF Grand Central Arts Center representative, a Community Redevelopment & Housing Commissioner, and a Planning Commissioner). The developer worked diligently with this committee to set criteria, issue an RFP and select an artist to design a sculpture to be installed at the northwest corner of Lacy and Sixth Streets, near the retail space and across from Garfield Elementary. At the committee's request, the developer made it a requirement for the selected artist Jules Rochielle} to involve the Garfield school children in the process. The second predevelopment agreement focuses on planning and development of the SARTC and larger Station District area. Since execution of this agreement, several planning efforts have been undertaken in this regard which the developer has participated in, such as: the Transit Zoning Code, SARTC master vision plan (which included a financial contribution by the developer}, the fixed guideway, and Santa Ana Boulevard grade separation studies. Thus, what remains to be accomplished is a more comprehensive master plan focusing on the SARTC area. Additionally, despite certain delays in implementation of this agreement due to the FCL lawsuit and being hindered by the dissolution of redevelopment, implementation of this agreement has continued, and specifically from City aspect since redevelopment dissolution. Staff and the developer have been in on-going discussions with the County staff over the last two years working toward a Memorandum of Understanding and an Exclusive Negotiating Agreement, which would include the County, for the joint planning and development of our respective properties. Although County staff notes the SARTC to be a "legacy project", they recently communicated a need to hold off on formalizing any partnership arrangements due to a focus on internal real estate priorities first, including developing a plan forthe relocation of the Fruit Street Public Works operations located on the subject County property. However, aCity/County working team will continue to discuss and explore options for a joint planning and development effort. Given that certain aspects of the original Predevelopment Agreement have changed since its execution, it is recommended that it be fully revised and restated as an "Exclusive Negotiating