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Title:
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Consideration of an Amendment to the Commitment Letter with Regency Centers Acquisition LLC for the Sale and Redevelopment of City Owned Property at the Northerly Corners of the Washington Boulevard and Centinela Avenue Intersection.
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City of Culver City, California
Agenda Item Report
Meeting Date: 04/02/12 Item Number: __A-1__
CITY COUNCIL AGENDA ITEM: Consideration of an Amendment to the Commitment
Letter with Regency Centers Acquisition LLC for the Sale and Redevelopment of City
Owned Property at the Northerly Corners of the Washington Boulevard and Centinela
Avenue Intersection.
Contact Person / Department:
Joe Susca/CDD
Todd Tipton/ CDD
Phone Number:
(310) 253-5763
(310) 253-5783
Fiscal Impact: Yes [] No [X] General Fund: Yes [] No [X]
Public Hearing: [] Action Item: [X] Attachments: [X]
Commission Action Required: Yes [] No [X] Date: _______________
Public Notification (E-Mail) Redevelopment Agency Projects (03/30/12); (E-Mail)
Meetings and Agendas – City Council and Redevelopment Agency (03/30/12); (E-Mail)
The Advisory Committee on Redevelopment (03/30/12); (E-Mail and by Telephone)
Members of the public who attended the August 20, 2011 Open House and August 31,
2011 community meeting and/or pulled speaker cards on the topic (03/30/12); The
Culver West Neighborhood Association (03/30/12); (E-Mail) The Herbert Street
Homeowners Association (03/30/12); (E-Mail) The Culver Triangle Neighborhood
Association (03/30/12)
Department Approval:
Sol Blumenfeld: (03/30/12)
City Special Counsel Approval:
Murray Kane: (03/30/12)
City Attorney Approval:
Carol Schwab (by H. Baker) (03/30/12)
Chief Financial Officer Approval:
Jeff Muir (03/30/12)
Executive Director Approval:
John M. Nachbar: (03/30/12)
RECOMMENDATION:
Staff recommends the City Council approve an amendment to the Commitment
Letter with Regency Centers Acquisition, LLC (Regency) to extend the due diligence
period by 60 days for the City owned property located on the northeast and
northwest corners of the Washington Boulevard and Centinela Avenue intersection
(Property) for development of a Market Hall.
BACKGROUND:
On June 27, 2011, the City Council approved redevelopment of the Property as a
Market Hall with specialty retail and artisanal food vendors in a uniquely designed
Market Hall (the Project). The Market Hall will be a place-making development that
will complement efforts to improve West Washington Boulevard and has been
embraced by the community. A low rise public parking structure (1.5 – 2 stories) will
also be constructed by the City to provide parking for the Project and the commercial
area. City of Culver City, California
Agenda Item Report
On February 13, 2012 the City Council authorized entering into a Commitment Letter
with Regency to sell the Property to develop the Market Hall and authorized entering
into an agreement with International Parking Design for the public parking structure.|1010|
DISCUSSION:
The Commitment Letter requires Regency to complete its due diligence review,
including a feasibility analysis of the Project and review of the Property’s
environmental and geotechnical documents within a 45-day period. Regency
requires additional time to complete its analysis of the Market Hall size and tenanting
to ensure the long-term success of the Project. Regency has requested the study
period be extended by 60 days to provide sufficient time to complete the process (to
May 30, 2012).
FISCAL ANALYSIS:
There is no financial impact to extending the period for Regency to complete their
due diligence.
MOTION:
That the City Council:
1. Approve an amendment to the Commitment Letter with Regency Centers
Acquisition, LLC extending the due diligence period from 45 days to 105 days;
and
2. Authorize City Special Counsel/City Attorney to review/prepare the necessary
documents; and
3. Authorize the City Manager to execute such documents on behalf of the City.
NOTES:
|1010|The Commitment Letter dated 2/13/2012 with Regency includes the following terms:
• A land offer of $1,278,950, plus an additional $1,134,000 (a total of $2,412,950) for $684,000 of
offsite improvements including neighborhood traffic calming measures; and $250,000 for aerial
utility relocation related to the 217-space parking garage and Market Hall; and $200,000 for
construction management fees for the public parking structure at no cost to the City.
• Regency agrees to construct the Market Hall as outlined in the Request for Proposals and agrees
to hire JRDV Architects, the firm who prepared the conceptual plans and preliminary design
studies.
• Regency agrees to pay prevailing wages for Project construction.