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CITY COUNCIL MEETING DATE: <br />CLERK OF COUNCIL USE ONLY: <br />NOVEMBER 3, 2015 <br />TITLE: APPROVED <br />OPTION AGREEMENT FOR SALE AND ❑ As Recommended <br />SUBSEQUENT RENOVATION AND ❑ As Amended <br />REUSE OF THE YMCA PROPERTY ❑ Ordinance on I" Reading <br />❑ Ordinance on 2ntl Reading <br />{STRATEGIC PLAN NO. 3,5A) ❑ Implementing Resolution <br />❑ Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />CITY MANAGE <br />Authorize the City Manager and City Attorney to approve an Option to Purchase Agreement on <br />behalf of the City of Santa Ana with St. Joseph Health System for the sale and subsequent <br />renovation and reuse of the YMCA property located at 205 W. Civic Center Drive, subject to non - <br />substantive changes approved by the City Manager and City Attorney. <br />DISCUSSION <br />The YMCA building, located at 205 West Civic Center Drive was purchased by the City in 1992 <br />and has been vacant since that time. The building is in serious disrepair due to age, vandalism <br />and deferred maintenance. Addressing the exterior appearance of the YMCA building and <br />enhancing building security is one important interim measure that was accomplished shortly after <br />the September 2014 approval of the Exclusive Negotiating Agreement (ENA) with St. Joseph <br />Health. <br />Since entering into the ENA, St. Joseph Health and their team of consultants have made <br />significant progress in the following areas: 1) project economic feasibility; 2) environmental <br />reviews; 3) entitlements; 4) historic rehabilitation requirements; 5) project budget; 6) assembling <br />an experienced rehabilitation team; and 7) parking assessment. <br />Guiding principles associated with the YMCA project management work of St. Joseph Health <br />remain as follows: <br />The City Council's stated objective to implement a strong economic development program <br />in the Downtown which provides a linkage between the Civic Center and related <br />professional office and nonprofit organizations. <br />The St. Joseph team proposal to share operating revenues and expenses, lending <br />strength to their financial proposal while ensuring the long term viability of the project. <br />25A-1 <br />