Title
Development Agreement with Yosemite Partners, LLC for the Sale of 814 N. 5th Ave. (Ordinance S-44806)
Description
Request to authorize the City Manager, or his designee, to enter into a development agreement, and other agreements as necessary, ("Agreements") with Yosemite Partners, LLC, or its City-approved designee (“Developer”), for the sale and development of a City-owned property located at 814 N. 5th Ave. The sale of the property will generate one-time revenue of $260,000 in sales proceeds to the City.
Report
Summary
The Developer submitted its proposal in response to the City's Request for Proposals (RFP) for the disposition and redevelopment of an approximately 7,000-square-foot, City-owned property located at 814 N. 5th Ave. ("Site"). The Site was previously developed with a small multi-family building, which was purchased with Community Development Block Grant Funds by the Neighborhood Services Department in the early 2000’s to facilitate revitalization through blight elimination in the Roosevelt Neighborhood. In November 2005, the structure suffered severe fire damage and was subsequently demolished.
The Developer's proposal is to redevelop the Site as a single-family home with a pool and a two-story garage/guest house. The Developer originally submitted a proposal for a multi-family development; however, subsequent community outreach and historic preservation analysis determined the design was not feasible. As a result, the Developer revised the proposal to consist of a single family home. The Developer has agreed to purchase the Site for $260,000, which is above the $245,000 minimum purchase price in the RFP.
This project will activate an unproductive vacant lot in the Historic Roosevelt Neighborhood and bring new residents downtown, outcomes supported by the City Council-adopted Downtown Strategic Plan. Furthermore, this project will put a vacant City property back into private and taxable use. Title for the Site will transfer upon issuance and receipt of payment for building permits. Prior to development of the home, staff shall utilize one or more tools to ensure compliance with the development as presented and prevent the developer from transferring title of the Site without the City's consent.
Procurement Information
In April 2017, the Community and Economic Development Department issued an RFP for the sale and development of the Site. One proposal was received and staff verified the proposal was responsive to the RFP requirements.
Financial Impact
The sale of the Site will generate a one time $260,000 sales proceed to the City and will put the 0.16-acre property back into private ownership, which will generate net new property tax revenues.
Concurrence/Previous Council Action
This item was heard at the Downtown, Aviation, Economy and Innovation Subcommittee meeting on June 6, 2018, and is scheduled for the Sustainability, Housing, Efficiency and Neighborhoods Subcommittee on June 19, 2018.
Public Outreach
Staff presented this proposal to the Downtown Voices Coalition on May 12, 2018 and the Roosevelt Action Association on May 15, 2018.
Location
814 N. 5th Ave.
Council District: 7
Department
Responsible Department
This item is submitted by Deputy City Managers Deanna Jonovich and Mario Paniagua, and the Community and Economic Development and Neighborhood Services departments.