HomeMy WebLinkAboutD-1 - Consider Amendment to Prior Direction on Block 36SCHEDULED ITEM
D-1
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
VIA: TROY L. BUTZLAFF, ICMA-CM, CITY MANAGER
FROM: KURT E. CHRISTIANSEN, FAICP, DIRECTOR OF ECONOMIC AND COMMUNITY
DEVELOPMENT
DATE: JUNE 6, 2016
SUBJECT: CONSIDER AMENDMENT TO PRIOR DIRECTION REGARDING DEVELOPMENT ON
BLOCK 36 LOCATED AT SOUTHEAST CORNER OF AZUSA AVENUE AND FOOTHILL
BOULEVARD TO DIRECT STAFF TO NEGOTIATE EXCLUSIVE NEGOTIATING
AGREEMENTS WITH BOTH CHARLES COMPANY AND SERRANO DEVELOPMENT
GROUP FOR BLOCK 36 AND OTHER CITY OWNED PROPERTIES
SUMMARY:
At the May 16, 2016 City Council Meeting, the City Council heard presentations from the Charles Company and
Serrano Development Group regarding their development proposals for Block 36, located at the southeast corner
of Azusa Avenue and Foothill Boulevard. At the conclusion of the presentations, the City Council reviewed both
proposals and directed questions to Staff and the Developers. Several Council members expressed a desire to see
both development proposals accommodated. On June 1, 2016, the Charles Company submitted a letter stating
their willingness to relocate to another location within the downtown.
RECOMMENDATION:
Staff recommends that the City Council consider the following options:
Options 1
Amend the prior City Council direction and direct Staff to negotiate with:
a) The Charles Company for the development of mixed-use retail/housing project featuring a
Family Fun Center/Bowling Alley/restaurants on other property within the City; and
b)The Serrano Development Group for the development of mixed-use retail/housing project
featuring a Laemmle movie theatre and associated retail/restaurants on Block 36 located at
the southeast corner of Azusa Avenue and Foothill Boulevard.
Option 2
Continue with the direction provided at the May 16, 2016 City Council Meeting and direct staff to
continue negotiations with the Charles Company for an Exclusive Negotiation Agreement (ENA)
on Block 36.
APPROVED COUNCIL
MEETING 6/6/2016 OPTION 1 WAS
SELECTED
Consider Amendment to Prior Direction on Block 36
June 6, 2016
Page Two
DISCUSSION:
At the May 16, 2016 City Council Meeting, the City Council heard presentations from the Charles Company and
Serrano Investments regarding their development proposals for Block 36, located at the southeast corner of Azusa
Avenue and Foothill Boulevard. The proposals submitted for Block 36 can be generally summarized as follows:
1. Charles Company - Mixed-use retail/residential project featuring a Family Fun Center/Bowling
Alley/restaurants (117 residential units)
2. Serrano Development Group - Mixed-use retail/residential project featuring a Laemmle art house
movie theatre and associated retail/restaurants. (108 residential units)
At the conclusion of the presentations, the City Council reviewed both proposals and directed questions at Staff
and the Developers. Several City Council members expressed a desire to see both development proposals
accommodated within the City. At the conclusion of the discussion, the City Council, by a vote of 3-2, directed
Staff to negotiate an ENA with the Charles Company and to bring back a final document for City Council
consideration. Subsequent approval of an ENA would bind the City and require it to negotiate with only the
Charles Company for the sale and development of the property.
As part of the preliminary negotiations for an ENA with the Charles Company, Staff discussed whether the
Charles Company would consider moving their proposed development to other City owned sites and non-City
owned sites. The Charles Company considered this option. On June 1, 2016, the Charles Company submitted a
letter expressing a willingness to relocate their project to another site within the City (Attachment 1). Serrano
Development also confirmed with Staff their continued interest in developing Block 36(Attachment 2).
As a result, the City Council may wish to revisit the prior direction given to Staff and take advantage of both
parties’ willingness to locate their proposed developments within the City on different sites. It should be noted
that due to the size requirements of the Charles Company project, discussion will have to be focused on larger
City and non-City owned properties. Nevertheless, there are several options that can be explored.
FISCAL IMPACT:
There is no fiscal impact related to the project at this time. Once the process is completed, the City owned
property will be sold to the successful developer.
Prepared by: Reviewed and approved:
Kurt E. Christiansen, FAICP Louie F. Lacasella
Economic and Community Development Director Management Analyst
Reviewed and Approved:
Troy L. Butzlaff, ICMA-CM
City Manager
Attachments:
1) Charles Company Letter
2) Serrano Development Group Letter
ATTACHMENT 1
ATTACHMENT 2