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0 <br />CITY COUNCIL MEETING DATE: <br />MARCH 18, 2014 <br />TITLE: <br />EXCLUSIVE NEGOTIATING AGREEMENT FOR <br />RENOVATION AND REUSE OF THE YMCA <br />PROPERTY <br />tj <br />CITY MANA R <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 1" Reading <br />❑ Ordinance on 2nd Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />Authorize the City Manager and City Attorney to negotiate an Exclusive Negotiation Agreement <br />on behalf of the City of Santa Ana with St. Joseph Health and Taller San Jose for the reuse of the <br />YMCA building, and authorize the City Manager and City Attorney to negotiate, finalize and <br />execute a Reimbursement Agreement with the parties in substantially the same form attached <br />hereto, subject to non - substantive changes approved by the City Manager and City Attorney. <br />DISCUSSION <br />The YMCA building, located 205 West Civic Center Drive, was purchased by the City in 1992. <br />The building has been vacant since that time and is in serious disrepair due to age and <br />vandalism. Over the years, the City has, on numerous occasions, considered proposals to <br />renovate this historic building but none were financially feasible. In 2013, with the local economy <br />improving, it was timely to again seek proposals for the site. <br />With Council approval, a Request for Qualifications (RFQ) was released in August 2013 and <br />potential reuses identified by the Development and Transportation City Council Committee <br />(D &TC) which included: retail, office, hotel, residential and entertainment uses. As part of the <br />RFQ, staff originally envisioned a two -step process for selecting a qualified developer. Once the <br />best qualified developers were identified through the RFQ, a separate Request for Proposals <br />(RFP) was anticipated, which would result in the recommended team and their development <br />proposal being considered by the City Council. <br />The depth of submissions received as part of the RFQ process was substantial and as a result, <br />staff advised the D &TC that it was unnecessary to issue an extensive RFP; rather staff would <br />interview the top firms and ask them for additional information regarding financing the reuse and <br />renovation as well as conceptual plans for the YMCA building. Therefore, all proposals were to <br />be evaluated by a city- created selection committee which included representatives from the <br />Community Development and Planning & Building Agencies, and the City's financial consultant, <br />25J -1 <br />