The URL can be used to link to this page

Home My WebLink About19F - YMCA NEGOTIATING AGMTREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: MAY 19, 2015 TiTLE: EXCLUSIVE NEGOTIATING AGREEMENT FOR RENOVATION AND REUSE OF THE YMCA PROPERTY (STRATEGIC PLA O.3, 5A) '% Q2 C./7. CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: CI As Recommended El As Amended • Ordinance on 181 Reading • Ordinance on 2 o Reading ® Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Receive and file this update to the Exclusive Negotiating Agreement which grants a 180 day extension. r The YMCA building, located at 205 West Civic Center Drive, was purchased by the City in 1992 and has been vacant since that time. The building is in serious disrepair due to age, vandalism and deferred maintenance. Addressing the exterior appearance of the YMCA building and enhancing the security is an Important interim measure that has been accomplished shortly after the September 2014 approval of the Exclusive Negotiating Agreement (ENA) with St, Joseph Health and Taller San Jose. A significant factor associated with the reuse of the YMCA building concerns the unanticipated hazardous dust and airborne particulates in the building. This hazardous condition has been determined to be quite significant and this has resulted in ongoing delays in our team gaining access to the building. After conducting a lead and asbestos survey of the building, National Econ, the city's hazardous material consultant, had the following recommendations: • First responders and any others entering the building be required to wear protective gear, respirators and be fit tested. • Incorporate a lead and asbestos abatement plan pursuant to state laws in the St. Joseph/Taller San Jose scope of work, Guiding principles associated with the YMCA project management work of at, Joseph Health and Taller San Jose have included: 19F -1 YMCA Agreement -- Renovation /Reuse May 19, 2015 Page 2 • The City Council's stated objective to implement a strong economic development program in the Downtown which provides a linkage between the Civic Center and related professional office and nonprofit organizations. • The St. Joseph/Taller San Jose team proposal to share operating revenues and expenses, lending strength to their financial proposal while ensuring the long term viability of the project, • The St. Joseph/Taller San Jose team being end users of the building thereby providing a more secure venue than a speculative commercial development, • The St. Joseph /Taller San Jose team proposing to complete the project within 3 years. The ENA outlines the parameters, deal points and the performance milestones of the future Development Agreement. The initial term of the ENA was for 180 days with the option of a 180 day extension to be granted by the City Manager, The deal points contained in the ENA are summarized as follows: Economic Feasibility: Developer will conduct an economic feasibility study which will be evaluated by an independent financial consultant, compared with the proposed scope of work and used as the basis for any City financial assistance. • Environmental Reviews: City and Developer will agree on appropriate environmental reviews at developer's expense. Entitlements: The City will work cooperatively with the developer to identify any approval requirements related to the development team including any zoning, parking requirements and conditional use permits. City will provide guidelines and community assistance which are applicable to the rehabilitation or new construction including signage, setback, special uses, and urban design features. Historic Rehab Requirements., Developer will meet and confer with the City's Historic Preservation Planner who will furnish developer with historic rehabilitation guidelines to ensure historical preservation requirements are met. • Project Budget: Project Budget will be developed containing details of each type of expenditure and the applicable sources of funds. St. Joseph Rehabilitation Team: St. Joseph Rehabilitation Team will be required to have experience with historic rehabilitation. 19F -2 YMCA Agreement — Renovation /Reuse May 19, 2016 Page 3 • Parking Payments: The existing lease with Sycamore Parking will not be terminated. Developer will provide the City an estimate of the parking spaces required by the developer Reimbursement Agreement: As stipulated in Reimbursement Agreement, the developer will pay up to $40,000 of the costs of the City's consultant, to be determined by the parties. City staff and the developer have worked diligently over the past several months to negotiate a strong development agreement that comprehensively takes into account all of the deal points mentioned above. There remain several significant areas where additional negotiations and work by consultants is incomplete. These areas include: 1) resolution of title issues identified subsequent to the approval of the ENA; 2) value engineering; 3) completion of the re -use appraisal and analysis; and 4) resolution of easement issues associated with the adjacent parking structure. For these reasons, the City Manager has agreed to extend the agreement with St. Joseph Health and Taller San Jose, as provided for in the ENA. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #3 Economic Development, Objective #5 (Leverage private investment that results in tax base expansion and job creation citywide), Strategy A (Identify and market underutilized properties (city and non -oity owned) for new development that will create new jobs and expand the City's flax base, FISCAL IMPACT There is no fiscal impact associated with this action ��Amq) Kelly Reqoders LJ Executive Director Community Development Agency SK/sb Exhibit; 1, Map 19F -3 C r v a FIRST SEVENTEENTH ST. Al GENERALAGROULTURAT CR COMMERDALFFSDENIIAL -8 PARANGMODIFICATION GC GOVERNMENTCENTER GEM COMMERCALSDUTHMAIN M1 LIGHTINDUMAL CI CDMMUNDYCOMMEYJAL M2 HFAUVINDUSIRAL Cl -MD GWM. OCMMEFQAUMUS MDIS CT MO MILITAWOPEPAnONS C2 GENE>ALOCMMMAL 0 OPEN SPACE C3 CENTFALBUIDIABS P PRD EESONAL G3 -A FCO RANN®COMMUNIWDE OENENT C4 PLANNED SHOPS NG CENTER FFO RANNEDRESDENTIALDEEE.OPMENT 05 AR ALCOMMESIAL `NA 1 MCA YMCA BUILDING 209 WEST CIVIC CENTER DRIVE 1" = 1000 FEET RI SNGLEFAMILYRESDENTIAL F2 TWO FAMILY FES DENCE R3 MULiI EDENSTYMULTIRE FAMILYRESDENCE R4 S)@JF84NAA1RIMEJTS FE RESDIFF7ALESFATE SD SEMACOEVO.OPMENT S° S' RCPLAN SrTE — = 500 FEET P L A N N I N G A N D B U I L D I N G A G E N C Y EXHIBIT 1 19F -4