Title
Agreement with Mr. Jonathan Pring for Resolution of Physical Encroachments at 814 N. 5th Ave. (Ordinance S-46609)
Description
Request to authorize the City Manager, or his designee, to enter into an agreement, and other agreements as necessary (Agreements), with Mr. Jonathan Pring for the resolution of physical encroachments at 814 N. 5th Ave. Further request authorization for the City Treasurer to accept funds related to this item and the City Controller to disburse funds related to this item. This item has no impact on the General Fund.
Report
Summary
The City owns a vacant parcel in the downtown Roosevelt Neighborhood at 814 N. 5th Ave. (Site). The Site was purchased by the City's Neighborhood Services Department in the early 2000's with federal Community Development Block Grant funds to facilitate revitalization through blight elimination. In April 2017, the Community and Economic Development Department issued a Request for Proposals (RFP) for the sale and development of the Site. The sole proposal for this RFP was received from Yosemite Partners, LLC (Developer) and, in June 2018, City Council authorized staff to enter into a development agreement with the Developer.
Through the due diligence process, the Developer identified physical encroachments on the Site likely built by a previous owner of the adjacent property located at 818 N. 5th Ave., a property currently owned by Mr. Jonathan Pring and operated as a local business known as the Teapot. The encroachments consist of a block wall, a metal and wood cladded fence, and portions of a patio and shade structure. City staff intends to reissue an RFP for the sale and development of the Site; however, a resolution to the encroachments must be completed before the Site can be disposed.
City staff negotiated with Mr. Pring and proposes entering into an agreement which would require Mr. Pring to deposit funds into an escrow account in an amount equal to the cost to remove the encroachments based on three bids, plus 10 percent for the increasing cost of construction and any fees associated with the escrow account. Upon the disposition of the Site, the funds would be transferred to the new owner. This agreement would give Mr. Pring the flexibility to negotiate with the new owner of the Site regarding alternative solutions to the encroachments. In the event the disposition of the Site does not occur within three years of opening of escrow, the City would have the option to accept the funds and remove the encroachments. The agreement would include standard terms, conditions and other necessary requirements.
Financial Impact
There is no financial impact to the General Fund with this action.
Location
814 N. 5th Ave.
Council District: 7
Department
Responsible Department
This item is submitted by Assistant City Manager Deanna Jonovich, Deputy City Manager Mario Paniagua, and the Community and Economic Development and Neighborhood Services departments.