HomeMy WebLinkAboutA- 6 Staff Report DDA between City of Azusa and Dr. Ralph Reyes and Jeanine E ReyesHonorable Chairperson and Members of the Board
Reyes DDA
April 7, 2003
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AGENCY PUBLIC HEARING
TO: Chairperson and Members of Redevelopment Agency Board
FROM: Michael Hennessey, Director of Economic Dev. /Redevelopment
Jose Amador, Assistant Director of Economic Dev./Redevelopment
VIA: Rick Cole, Executive Director
DATE: April 7, 2003
SUBJECT: Recommendation Regarding Disposition and Development Agreement by and
between the City of Azusa Redevelopment Agency and Dr. Ralph Reyes and
Jeanine E. Reyes for Redevelopment Agency Property Located at 613-615 N.
Azusa Avenue: Downtown Redevelopment Project Area
RECOMMENDATION
Recommended that the Redevelopment Agency Board (“Agency”) and City Council conduct
a joint public hearing and following the hearing, approve the Negative Declaration and
adopt the Resolutions approving the Amendment to the Disposition and Development
Agreement dated May 6, 2002 (“DDA”) between the City of Azusa Redevelopment Agency
and Dr. Ralph Reyes and Jeanine E. Reyes (“Developer”) as approved by the City Attorney.
BACKGROUND
On May 6, 2002 Agency approved a DDA between the Agency and the Developer for the
redevelopment of the Agency owned real property located at 613-615 North Azusa Avenue.
The subject property is located in the Central Business District Redevelopment Project Area.
The DDA contains all the terms and conditions related to the sale and development of the
property.
Since approval of the DDA, the Developer has proposed a change to the development
concept for the subject property. The proposed changes require that the existing DDA be
amended to include a new scope of development, purchase price for the land, and schedule
of performance. These changes are reflected in the following sections of the DDA: Section
3.3.1 (Purchase Price/Cash Payment), Section 3.5 (Development of Property), Exhibits B
(Scope of Development), and Exhibit C (Schedule of Performance).
Honorable Chairperson and Members of the Board
Reyes DDA
April 7, 2003
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The original project provided for the development of a single story medical office building.
The new scope of development includes a medical office on the ground floor, three one-
bedroom apartment units and a conference room/office space on the second floor. By
providing a project with both a residential and professional use, the staff believes the
development will initiate day and evening activity in the area. The development will also
include an attached elevator for handicap access to the building and covered parking spaces
for the residential units. The DDA contemplates the sale of the property at a purchase price
of $75,000.
This project is the first of several work program projects in the Downtown area that Agency
staff will be bringing forward.
Fiscal Impact
The project’s immediate fiscal impact is calculated to be a loss of $137,000. However, with
tax increment revenues calculated over a period of twenty years at $175,727, there is a net
benefit to the Agency of $38,727 during that time period.
Description Estimated
(Cost)/Benefit
DDA Expenditures Since Acquisition of Property $ 212,000
Plus: Additional Developer Public Assistance $ 0
Less: Developer’s Land Payment to Agency $ 75,000
Less: Estimated Revenues and Tax Increments $ 175,727
TOTAL (COST) / BENEFIT $ 38,727
Exhibits: “A” Disposition and Development Agreement
“B” Agency Resolution
“C” Summary Report Pursuant to Section 33433 of California Community Redevelopment
Law
“D” CEQA Environmental Checklist and Negative Declaration