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Home My WebLink About040504 Agmt CSUF Grand Central Art CenterREQUEST FOR COUNCIUAGENCY ACTION MEETING DATE: APRIL 5, 2004 TITLE: AGREEMENT WITH CALIFORNIA STATE UNIVERSITY, FULLERTON FOUNDATION FOR THE GRAND CENTRAL ART CENTER �UCTt,on lsf 41TYMAN�AGER ECUTIVE DIRECTOR RECOMMENDED ACTION CITY COUNCIL ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1st Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Direct the City Attorney to prepare and authorize the City Manager and the Clerk of the Council to execute an agreement to accept the assignment of the California State University, Fullerton premises from the Agency. COMMUNITY REDEVELOPMENT AGENCY ACTION 1. Direct the Agency General Counsel to prepare and authorize the Executive Director to execute an agreement with the California State University, Fullerton Foundation to amend their contract to operate the Grand Central Art Center for an additional 20 years. 2. Direct the Agency General Counsel to prepare and authorize the Executive Director and Secretary to execute an agreement to assign this lease to the City of Santa Ana. DISCUSSION In 1995, the Community Redevelopment Agency entered into an agreement with the California State University, Fullerton (CSUF) Foundation to 5 Agreement with California State University, Fullerton Foundation for the Grand Central Art Center April 5, 2004 Page 2 operate its graduate visual arts program at the Grand Central building located at East Second Street and Broadway in the Artists Village. The building was completely renovated by the Agency for use by the University. Construction was completed on this historic building in 1999, triggering the 10 -year Operating Agreement. The Grand Central Art Center includes three art galleries, a live performance "black box" theater, a printmaking studio and a restaurant. There are also 27 student residential units with studio space for each resident student. The building opened in February 1999. been a tremendous asset to the City, Downtown. Under the terms of the provide an operating subsidy for th, projected annual operating deficit subsidy expired in December 2002. Since that time, the facility has the Artists Village and the entire agreement, the Agency agreed to first four years based upon the to the University. This annual At the mutual request of staff and CSUF, it is recommended that the lease be extended for an additional 20 years or until 2029. In addition, due to unexpected operating cost increases and somewhat lower revenues from the Gypsy Den restaurant lease and less than anticipated use of the black box theater, a new operating subsidy is recommended for the next five years. The additional assistance to be paid by the Agency will be as follows: 2003 - $80,000 2004 - 75,000 2005 - 70,000 2006 - 65,000 2007 - 60,000 The 20 -year extension may only be rescinded upon the mutual agreement of both parties. This 20 -year lease extension will ensure the long -term presence of Cal State Fullerton in the heart of the Artists Village, thereby solidifying the City's long -term vision for that area of the Downtown. Under the subject agreement, the Agency will assign the fee simple interest in the premises to the City of Santa Ana, and CSUF will consent to this assignment subject to the City's compliance with all terms and conditions of this lease. This is necessary, as the Agency cannot enter into a long -term lease with CSUF under California Redevelopment Law. 5 Agreement with California State University, Fullerton Foundation for the Grand Central Art Center April 5, 2004 Page 3 FISCAL IMPACT Funds for this agreement are available in the South Main Redevelopment Project Area account (account no. 550 - 936- 6291). dId Jo P. Reekstin Executive Director Community Development Agency JPR /LDY /kla H: Actions\2004CCUTCC- CRAAgr "CSUFFndmGmdCtrIArtCtr- 4 -5 -04 APPROVED AS TO FUNDS AND ACCOUNTS: 46..E o q oma ph Executi e Director Finance & Management Services Agency 7 REQUESTFOR COUNCIL /AGENCY ACTION - MEETING DATE: APRIL 5, 2004 TITI..F APPROPRIATION ADJUSTMENT AND CONTRACT AWARD FOR FESTIVAL HALL NOISE MITIGATION (PROJECT 2741) RECOMMENDED ACTION CITY COUNCIL ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1st Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER 1. Approve an appropriation adjustment authorizing a $233,770 loan repayment from South Main Redevelopment Project Area and appropriating $233,770 to the Capital Outlay Fund for Improvements Other Than Buildings. 2. Award a contract to S &L Specialty Contracting, Inc., the lowest responsible bidder, in accordance with lump sum amount of $341,245 for the Festival Hall noise mitigation project. 3. Approve a Funding Analysis with a total estimated construction cost of $460,600. COMMUNITY REDEVELOPMENT AGENCY ACTION Authorize a $233,770 loan repayment from the South Main Redevelopment Project Area to the Capital Outlay Fund for Improvements Other Than Buildings. E Appropriation Adjustment and Contract Award for Festival Hall Noise Mitigation (Project 2741) April 5, 2004 Page 2 Festival Hall is a restaurant, a sports bar, and a dance hall on the southwest corner of Third and Spurgeon Streets (Exhibit 1) . In November 2001, the City Council approved Conditional Use Permit No. 01 -28 for the construction of 86 live -work units in the downtown area including 40 in the remainder of the block containing Festival Hall. Noise impacts from Festival Hall on the new residents of the live -work units were acknowledged in the Negative Declaration for this permit. Mitigation measures were identified to reduce the noise impact of Festival Hall, to comply with applicable noise regulations. This project provides measures to include the construction of vestibules for entrance doors and installation of new windows. In addition, the project will include the installation of a central air conditioning system. The Notice Inviting Bids was advertised on March 1 and 2, 2004, and bids were opened on March 23, 2004. A summary of the bid invitations mailed, the bids received, and the bid results follows. Santa Ana Contractors receiving notices: 4 Contractors requesting bidding documents: 7 Bids received: 2 Bids received from Santa Ana Contractors: 0 Name of Bidder City Bid Amount 1. S &L Specialty Contracting, Inc. Syracuse $341,245 2. Ran Enterprises, Inc. Huntington Beach $458,000 A total of two bids were received, and both were responsive. S &L Specialty Contracting, Inc. submitted the lower responsive bid for $341,245, which is below the Engineer's estimate of $400,000. The subject repayment of a portion of the Redevelopment Agency's debt from the South Main Redevelopment Project Area to the City's General Fund will provide $233,770 for improvements to Festival Hall. 1 Appropriation Adjustment and Contract Award for Festival Hall Noise Mitigation (Project 2741) April 5, 2004 Page 3 ENVIRONMENTAL IMPACT Pursuant to the California Environmental Quality Act, Environmental Review No. 01 -144 has been completed and a Negative Declaration has been filed for this project. FISCAL IMPACT The Funding Analysis shows a total estimated construction cost of $460,600 for the project (Exhibit 2). Upon approval of the loan repayment and appropriation adjustment, funds will be available in the Capital Outlay Fund for Improvements other Than Building (account no. 51- 012- 6631). James G. Ross Executive Director Public Works Agency tAfohn P. lekstin Executive Director Community Development Agency JGR \GA \DI \ET \RFCA \04 -05 -04 RFCA 2741 70 WD APPROVED AS TO FUNDS AND ACCOUNTS: I' Rod R. Coloma �41 Executive Direct Finance & Mgt. Services Agency 11 rz i/ 12 f' L ri L11-1 76 X m L I 4TH STREET 3RD STREET M PROJECT LOCATION SANTA ANA City PAgenda uDalte Title @el[ may u(MV April 5, 2004 EXHIBIT 1 w w i� 0 w a Cr a_ cn PROJECT 2741: FESTIVAL HALL NOISE MITIGATION PROJECT E FUNDING ANALYSIS PROJECT 2741 FESTIVAL HALL NOISE MITIGATION PROJECT Construction Contract $341,245 Contract Administration 20,400 Inspection and Testing 30.706 Contingencies 68,249 TOTAL ESTIMATED CONSTRUCTION COSTS $460,600 Exhibit 2 14