|
Title:
|
Authorization to Enter into Development Agreement with US RELP NORTERRA EAST 1, LLC (Ordinance S-46543)
|
Title
Authorization to Enter into Development Agreement with US RELP NORTERRA EAST 1, LLC (Ordinance S-46543)
Description
Request to authorize the City Manager, or his designee, to enter into a Development Agreement (DA), and other agreements as necessary, with US RELP NORTERRA EAST 1, LLC (Developer) to provide public infrastructure assistance for a mixed-use commercial development at the intersection of Happy Valley Road and 21st Avenue. Further request to authorize the City Controller to disburse funds related to this item, estimated at approximately $400,000. Funding is available in the Strategic Economic Development Fund.
Report
Summary
The Developer, a partnership of United Services Automobile Association (USAA), is constructing a mixed-use commercial development at the northwest corner of Happy Valley Road and 21st Avenue. The development of this 42-acre mixed-use project will include more than 75,000 square feet (SF) of commercial, office and other mixed-use space (Project). As a previously announced expansion, USAA is approaching their commitment to hire up to 1,100 new jobs at their 1.1 million SF facility just north of this site. To accommodate for these new jobs and growth resulting from these efforts, additional public infrastructure is necessary at the intersection of Happy Valley Road and 21st Avenue.
The City recognizes the resulting substantial economic impacts to the City and region from the Project and USAA expansion. To remain competitive and allow for continued economic growth in this area, the following terms have been negotiated:
Developer and City shall enter into the DA within 6 months of City Council authorization of the business terms.
Developer shall construct an approximately 42-acre mixed-use development in phases which shall include not less than 75,000 SF of commercial, office and other mixed-use space.
Within 10 years of the execution of the DA, Developer shall:
Design and construct Phase 1 of the Project, which will include no less than 30,000 square feet of commercial, office and mixed-use space.
Complete any necessary dedications for the future installation of the traffic signal at Happy Valley Road and 21st Avenue.
City shall, when traffic counts warrant, design and construct a traffic signal at Happy Valley Road and 21st Avenue.
The DA will include other terms and conditions as required by the City.
Contract Term
The DA is for a maximum term of 10 years with no extensions.
Financial Impact
The estimated cost of the traffic signal is approximately $400,000. Funding is available in the Street Transportation Department's Capital Improvement Program budget beginning in Fiscal Year 2021-2022.
Location
Northwest corner of Happy Valley Road and 21st Avenue.
Council District: 1
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 Street Transportation departments.