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HomeMy WebLinkAbout20A - BOWERS EXPANSION STEADFAST REQUEST FOR COUNCIL ACTION ~ ~ CITY COUNCIL MEETING DATE: CLERK OF COUNCIL USE ONLY: APRIL 17, 2006 TITLE: APPROVED o As Recommended o As Amended o Ordinance on 1 st Reading o Ordinance on 2nd Reading o Implementing Resolution o Set Public Hearing For APPROPRIATION ADJUSTMENT AND AMENDMENT TO VARIOUS AGREEMENTS AND LAND EXCHANGES RELATING TO BOWERS MUSEUM EXPANSION AND STEADFAST COURT(ll!.{1~ CITY MANAGER CONTINUED TO FILE NUMBER RECOMMENDED ACTION 1. Approve an appropriation adjustment to recognize $750,000 from Steadfast Courtyards, L.P. to pay a portion of the cost of the Bowers Museum's new north parking lot. 2. Approve an amendment to the Land Exchange Agreement between the City of Santa Ana and Steadfast Courtyards, L.P. 3. Approve First Amendment to the Ground Lease and Second Amendment of the Amended and Restated Operating Agreement between the City of Santa Ana and the Charles W. Bowers Museum Corporation. DISCUSSION In September 2005, the City Council and Redevelopment Agency approved and authorized several actions to facilitate the 30,000 square feet expansion of the Bowers Museum. As part of the expansion, the City effectuated a land exchange with Steadfast, the residential developer who owns the property immediately north of the Museum. Under the exchange, Steadfast will develop a luxury condominium proj ect on the Museum's existing 20th Street parking lot, and the museum will be expanded upon the former Steadfast parcel. Amendments to the Land Exchange Agreement, the Amended and Restated Operating Agreement, and Ground Lease are needed in order to fulfill the land exchange and development of the Bowers Museum expansion and Steadfast's Cordoba proj ect. Changes to the agreements call for the following actions to occur: 20A-1 Agreement with American Hot Foods Systems January 3, 2006 Page 2 . Steadfast to demolish and clear all building improvements structures on its existing property north of the Museum, provide the City with a clean, rough graded site. Ci ty will access rights to inspect the site prior to close of escrow. and and have · Steadfast to pay the sum of $750,000.00 toward the costs incurred by City in constructing the Museum's north parking lot. · City responsible for additional costs of constructing north parking lot. · Simultaneous escrow closing and delivery of possession of City and Steadfast properties. · Immediately following escrow closing, City will lease back its former 20th Street parking lot from Steadfast for a 90 day period for the sum of one dollar, and will allow Bowers Museum to continue to use the lot for parking during construction of the new lot. Commencement of construction of the museum's new improvements has begun and is scheduled for completion in October 2006. Development of Steadfast's condominium proj ect is anticipated to begin in September 2006. FISCAL IMPACT Upon approval of the appropriation adjustment, funds will be available in the Bowers Museum Improvement Other than Buildings account (account no. 11-221-6631, Project 06-7214). APPROVED AS TO FUNDS AND ACCOUNTS v2e e will; Patricia C. Whitaker Executive Director Community Development Agency ~\\.~"'<\.~~~A) ~~ L... Francisco Gutierrez Executive Director ~ Finance & Management Services Agency PCW/JLQ/mlr H:\ACTIONS\2006 4-17-06 CC Bowers-Steadfast agmts.doc 20A-2