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Title:
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Authorize Deposit Agreement with Jefferson Place Partners, LLC and a Concurrent Non-Project Activity of the South Central Extension Downtown Hub Light Rail Project located at 101 S. Central Ave. (Ordinance S-48490)
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Title
Authorize Deposit Agreement with Jefferson Place Partners, LLC and a Concurrent Non-Project Activity of the South Central Extension Downtown Hub Light Rail Project located at 101 S. Central Ave. (Ordinance S-48490)
Description
Request to authorize the City Manager, or his designee, to enter into a deposit agreement, and other agreements as necessary (Agreements), with Jefferson Place Partners, LLC, or its City-approved designee (Developer), to fund a Concurrent Non-Project Activity (CNPA) of the South Central Extension Downtown Hub (SCE-DH) Light Rail Project (Project) adjacent to the Developer’s property at 101 S. Central Ave. (Site). This authorization shall further authorize staff to enter into a CNPA Agreement with Valley Metro Rail, Inc. (Valley Metro) who is constructing the Project. Further requests authorization for the City Treasurer to accept funds and the City Controller to disburse funds related to this item. The project will have no impact to the General Fund.
Report
Summary
Developer intends to construct a mixed-use high-rise project at the Site and wishes for the SCE-DH Project plans to reflect changes in the public right-of-way on Central Avenue compatible with the Developer’s future project. Developer has submitted plans for off-site improvements to the City and pending review and approval from the Planning and Development Department (PDD), staff would transmit those plans to Valley Metro who would review the feasibility of revising the Project plans.
Based on a preliminary review of the Developer’s off-site plans, Valley Metro has indicated it can construct a new curbline, drainage, sidewalk, paving and valley gutter to the Developer’s specifications. In addition, the Project can also relocate a proposed gutter to the new proposed curbline on Central Avenue. Since these improvements are not part of the current Project plans, the City must authorize this work as a CNPA. Furthermore, since the improvements are at the request of the Developer, they must be paid for by the Developer.
Without agreeing to the Developer’s proposed alterations, the current Project improvements in the public right-of-way (ROW) adjacent to the Site are at risk of being removed and replaced when the Developer moves forward with its proposed project. Therefore, in order to safeguard the City’s investment in the new ROW improvements, staff recommends authorizing the CNPA and a Deposit Agreement (DA) with the Developer to fund 100 percent of the new ROW improvements. In order to facilitate this work, the following business terms have been negotiated between the Community and Economic Development Department and the Developer:
Developer and City shall enter into a DA within one month of Council approval.
Upon signing the DA, the Developer shall pay to the City $131,250. This is the estimated increase in construction costs to build the new ROW improvements.
The City will transmit funds to Valley Metro per the costs outlined in the CNPA. Any unused funds shall be reimbursed to the Developer.
Valley Metro via the CNPA will deliver the new improvements on construction timelines compatible with the Project, ensuring a completed ROW condition surrounding the Site is available to the public once the SCE-DH Light Rail Project is completed.
Financial Impact
Developer shall pay all costs associated with the work. There is no impact to the General Fund as a result of this item.
Location
101 S. Central Ave.
Council District: 7
Department
Responsible Department
This item is submitted by Deputy City Managers Mario Paniagua and Ginger Spencer and the Public Transit and Community and Economic Development Departments.