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Vice Chair Martinez noted this project is a one of the top priorities for the Council and reiterated that we need to make sure we are moving as quickly as possible to get them going, noted support from Council and if any issues arise to notify the Council immediately and if staff needs an extension adding to be proactive. David Cavazos noted the item can be placed on every Council Committee agenda to keep Committee members updated on the project. Nancy Loughrey noted they are excited to be in the process, noted there are many issues they are working through and they have engaged an architect to work on the design issues on how they can use the building and expect to have hard numbers in a couple of months. Vice Chair Martinez noted there are a couple of bills at the State level with regards to financing noting there may possibly be tools for the City to utilize and keep that in mind and research on how we would be able to assist in any way. 3. ELKS LODGE UPDATE — EXPLORATION OF JOINT DEVELOPMENT OPTIONS FOR A PORTION OF THE SANTA ANA ZOO AND THE PROPERTY OWNED BY THE ELKS LOCATED ON THE WEST SIDE OF ELKS LANE {Strategic Plan No 3, 5A) Vince Fregoso provided an update on the Elks Lodge, noting on February 17, 2015, the Council approved a Memorandum of Understanding (MOU) between the City and the Elks to continue discussions on potential redevelopment of the site and joint use of the Elks property and the Santa Ana Zoo property. He noted staff met with a potential developer for the Elks but do not have a plan as of yet. The next step is for the Elks to select a developer and partner with them and do due diligence, research and analysis on how to get a good project for the City and Elks, and noted Larry Kosmont is working on this project. Vice Chair Martinez commented on financial opportunities from the State, noted the First Street Corridor is vital, noted the need to be open - minded and looking at the opportunities that we can present to these partners from an incentive perspective, noted the need to move beyond and make sure we present incentives to retain and attract developers to provide quality projects in the city. Mr. Cavazos noted one of the benefits of the projects is there is a lot of public right of way and the dedication of Elks Lane and possibly make a joint entrance to the Zoo and the project. Mr. Fregoso noted staff will work with Kosmont & Associates to help identify some financial incentives and will explore all avenues for getting the right incentives in place for the best possible project. Peter Katz, resident, suggested to consider developing a condominium project on that site that would require association dues with a percentage of those fees go towards maintaining the upkeep of the Zoo and built right into the sale price of those units. Development & Transp.Council Committee Minutes 2 February 26, 2015 13A -4