HomeMy WebLinkAboutResolution - - 2001-343/1592 - 10/30/2001•
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CITY COUNCIL RESOLUTION NO. 2001-343
REDEVELOPMENT AGENCY RESOLUTION NO. 1592
A JOINT RESOLUTION OF THE COUNCIL AND THE
REDEVELOPMENT AGENCY OF THE CITY OF FRESNO
APPROVING AN OWNER PARTICIPATION AGREEMENT
BETWEEN ALGEN HOTEL DEVELOPMENT COMPANY,
LLC,THE CITY OF FRESNO AND THE REDEVELOPMENT
AGENCY,AND MAKING CERTAIN FINDINGS PURSUANT
TO SECTION 33445
WHEREAS, the Mariposa Project Urban Renewal Plan and the Convention Center
• Redevelopment Project Area(the"Redevelopment Plans"or"Plans"),and any amendments thereto,
have been duly adopted; and
WHEREAS,the plan areas within each Redevelopment Plan(the"Project Areas")have been
merged into an ten-project area known as the Merger No. 1 Project Area; and
WHEREAS,on November 29, 1994,the Agency enacted Resolution No. 1409 approving a
Multi-Project Implementation Plan for Merger No. 1 Project Areas in the Central Area (the
"Implementation Plan"),pursuant to Section 33490 of the California Health&Safety Code,which
includes the Project Areas; and
WHEREAS,the Implementation Plan calls for programs involving the planning,design and
construction related to the expansion and upgrading of the existing convention center complex and
associated facilities including hotels,parking,pedestrian linkages/lighting/safety improvements,and
activities that include site work,parking improvements and landscaping; and
WHEREAS,the Redevelopment Agency of the City of Fresno(the"Agency")is engaged in
activities necessary to execute and implement the Redevelopment Plans,the Merger No. 1 Project
Area, and the Implementation Plan; and
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WHEREAS, the Plans each provide for property owners, who agree to participate in
redevelopment in conformity with the Plans to participate in the redevelopment of property in the
Project Area; and,
WHEREAS,ALGEN HOTEL DEVELOPMENT COMPANY,L.L.C.,a California limited
liability company, a.k.a., ALGEN HOTEL DEVELOPMENT, LLC (the "Owner-Participant")
proposes to enter into an Owner-Participation Agreement ("OPA") with the Agency and the City
pursuant to which(a)the Owner Participant will construct an upscale,400-room, 15-story Wyndham
Hotel on privately owned property, commonly known as 800-808 "M" street (the "Site"), related
improvements to the City's New Expanded Exhibit Hall, and related off-site improvements and
improvements that encroach on or over public rights of way (the "Project"), at an approximate
project cost of$61 million; and
WHEREAS,the proposed Project will be adjacent to,and will connect with,the City's New
Expanded Exhibit Hall,and the Project will include modifications to the New Expanded Exhibit Hall
for the integration with exhibit hall and banquet spaces to be leased to the City on the first two floors
of the hotel; and
WHEREAS a primary term of the OPA provides for Agency Project assistance as follows:
from the net tax increment generated by, and received by the Agency from, the Project during the
first ten years after completion, the Agency will reimburse Owner Participant for certain eligible
Project costs defined in the OPA,which include the fair market value of the land, site preparation
such as demolition,clearance and grading,air-rights site support,off-site public improvements,and
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City Council Resolution 2001-343
Redevelopment Agency Resolution No. 1592
OPA between Algen Hotel,Agency, and City
Page 3
certain preconstruction soft costs; and
WHEREAS, to further the objectives of the California Community Redevelopment Law
(California Health and Safety Code Section 33000 et seq.) (the"Law"), and to carry out the Plans,
and the Implementation Plan, the Agency and City wish to enter the OPA; and
WHEREAS,pursuant to Section 33440 of the Law, the Agency may assist with structural
forms necessary to provide or utilize air rights sites for commercial buildings or other uses
contemplated in the Plan; and
WHEREAS,pursuant to Section 33421.1 of the Law,the Agency,with prior consent of the
Council, and upon a certain Council finding, may develop or cause the development of a site for
commercial use by providing streets,sidewalks,utilities,or other improvements which an owner or
operator of the site would otherwise be obliged to provide; and
WHEREAS, Section 33445 of the Redevelopment Law,permits the Agency,with Council
consent, and upon certain Council determinations,to pay for the value of the land and for the costs
of installing and constructing public owned improvements within the Project Areas; and
WHEREAS,the Plans provide for certain public improvements including,without limitation,
street improvements(including curbs,gutters,sidewalks,paving,landscaping,among other things),
and utility relocation; and
WHEREAS, the Plan authorizes the Agency to do the following: (i) install, construct or
reconstruct public improvements or facilities to eliminate blight,(ii)cause or provide for installing
or constructing utilities and other public improvements necessary to carry out the Plan,in connection
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City Council Resolution 2001-343
Redevelopment Agency Resolution No. 1592
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with preparing any property as a building site,and(iii)specifically lists the reconstruction of streets,
curbs, gutters, sidewalks, public landscaping and public utility relocations as proposed public
improvements; and
WHEREAS,since FY 93,the funding priorities for the City of Fresno(the"City")have been
crime reduction and public safety,pursuant to which: (a)the City has added 277 new police officer
positions and 37 new firefighter positions between FY 99 and FY 01;(b)federal and state grants for
the most recent 75 officers began to decrease in FY 02,but the City paid an additional $1 million
to make up for grant reductions in FY 01; (c) an additional$4.2 million in General Fund resources
were required to fund Police and Fire Departments in FY 01,reducing reserves in the City General
Fund to nearly zero and necessitating more efficient ways to operate other General Fund operations
such as Parks,Public Works Department and Capital Improvements,including public buildings and
improvements; (d)the City will need to dedicate new General Fund revenues in FY 02 and beyond
to pay more of the new police officer and firefighter costs as the federal grant monies decrease over
the next few years; and,
WHEREAS, August 22, 2001, the Housing and Community Development Commission
("Commission"), at a regularly noticed meeting, reviewed the proposed findings and the Owner
Participation Agreement as negotiated to that date; and
WHEREAS,the Commission voted unanimously that the Council and Agency approve the
Owner Participation Agreement as then proposed, and that the Agency Executive Director, or his
designee,be authorized to sign the agreement and such further documents and to take such further
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City Council Resolution 2001-343
Redevelopment Agency Resolution No. 1592
OPA between Algen Hotel,Agency, and City
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actions as may be necessary or appropriate to carry out the Agency's obligations under the
agreement; and
WHEREAS, October 2, 2001, the Agency and Council considered and certified Program
Final ER No.2000-01 for the Convention Center Redevelopment Project Area-Downtown Prestige
Mixed Use Development within the Mariposa and Convention Center Redevelopment Project Areas
that included a proposed hotel project; and
WHEREAS, October 29, 2001, the Commission, at a specially called, noticed meeting,
reviewed the proposed findings and the Owner Participation Agreement as renegotiated; and
WHEREAS,the Commission voted unanimously to recommend that the Council and Agency
approve the Owner Participation Agreement as renegotiated; and
WHEREAS, October 30, 2001, the Council considered and adopted Environmental
Assessment No.C-01-145("EA")that the City prepared in connection with processing a conditional
use permit for the proposed Project, and; and
WHEREAS, October 30, 2001, the Council and Agency Board, reviewed the proposed
Owner Participation Agreement and evaluated all the information,testimony,and evidence presented
during the joint public meeting; and
WHEREAS, the public improvements and the proposed development will help eliminate
blight in the Project Areas,which the Council has found to contain substantial remaining blighting
conditions; and
WHEREAS,the Law authorizes the Agency,directly or indirectly,to assist the Project with
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City Council Resolution 2001-343
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certain eligible costs from net tax increment, subject to certain consents and findings; and
WHEREAS,the Agency proposes to provide the permitted assistance by reimbursing,over
the first ten years that the Project is open for business, the eligible costs from net tax increment
generated by, and received by the Agency from the Project (estimated at $2,160,000 over the ten
years); and
WHEREAS, the Project is in the best interests of the Project Areas,the City,and the health,
safety, and welfare of persons who live, work, and visit the Project Areas and the City, and is
consistent with the public purposes and provisions of the Plans and applicable state and local laws;
and,
WHEREAS, all actions required by applicable law respecting the proposed Owner
Participation Agreement have been timely and appropriately taken; and
NOW,THEREFORE,BE IT RESOLVED by the Council and the Agency of the City of
Fresno as follows:
1. Based upon substantial evidence provided in the record before it,the Council and the
Agency find and determine the following:
Finding No. 1.1: Agency assistance for proposed public infrastructure off-site
improvements within the Project Areas, through cost reimbursement, will help create a buildable
site for a commercial redevelopment project, and is necessary to achieve the purposes of, and is
consistent with,the Plan.
Finding No.1.2: Agency assistance for site acquisition and preparation, through
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OPA between Algen Hotel,Agency, and City
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reimbursement of the fair market value of the land, supporting structures for air rights use, and
certain preconstruction soft costs will substantially benefit the Project Areas and the immediate
neighborhood in which the public improvements are and will be located,and the Project is consistent
with the objectives of the Plans.
Finding No.1.4: The City has no other reasonable means of financing the public
improvements; and
Finding No. 1.5: The Project and related improvements are consistent with the
Implementation Plan.
Finding No.1.6: The Project and related improvements will benefit the Project
Areas and the community, and will help further the objectives of the Plans by productively reusing
underutilized property, generating economic activity, creating jobs, attracting new investments,
improving physical, economic, social, and environmental conditions, and eliminating one or more
blighting conditions within the Project Areas.
2. The Council consents to the Agency expending tax increment to reimburse Owner
Participant costs for public infrastructure relating to the Project.
3. The Owner Participation Agreement is approved, subject to, and the Executive
Director and the City Manager or their designees are hereby authorized and directed to negotiate final
terms,and to execute,deliver,and record all documents necessary to the Project,subject to approval
as to form by the City Attorney,as necessary to carry out the purposes and intent of this Resolution.
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City Council Resolution 2001-343
Redevelopment Agency Resolution No. 1592
OPA between Algen Hotel,Agency, and City
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4. The documents necessary to the Project and within the above authorization include,
without limitation,the Lease and Joint Use Agreement,the Agreement Affecting Real Property, the
Memorandum of Lease,the Easement and/or License Agreement,the Release of 1984 Ophelia OPA,
and a No-Build Covenant, for the City and Agency, respectively, and the City Clerk- Ex Officio
Clerk of the Agency is authorized and directed to attest thereto.
5. The City Manager and the Agency Executive Director or their designees are directed
to place a copy of the executed Owner Participation Agreement,the Lease and Joint Use Agreement,
and other executed agreements and recorded instruments and agreements with the City Clerk's
office.
6. The City Manager or his designee, and the Agency Executive Director or his
designee, are authorized and directed to take such further actions and to execute any further
instruments and documents as may be necessary or appropriate to carry out the City's and the
Agency's obligations under,and the intent and purposes of the Owner Participation Agreement and
the Lease and Joint Use Agreement.
Exhibit: A- Owner Participation Agreement(Discussion Draft)
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* * * * * * * * * * * * * *
STATE OF CALIFORNIA )
COUNTY OF FRESNO ) ss.
CITY OF FRESNO )
I,REBECCA E. KLISCH, City Clerk of the City of Fresno and Ex-Official Clerk to the
Agency, certifies that the foregoing resolution was adopted by the Council and the Agency Board
at a joint public hearing held on the 30th day of October, 2001, and that the same was passed by
the following vote.
AYES : Boyajian, Calhoun, Castillo, Duncan, Quintero, Ronquillo, Perea
NOES : None
ABSENT : None
ABSTAIN : None
REBECCA E. KLISCH
City Clerk and Ex.Officio Clerk
of the Redevelopment Agency
BY: %��°ec's/ i')Atl.,Qi
APPROVED AS TO FORM
HILDA CANTU MONTOY
City Attome d Ex Officio
Attorney o the 'edevelopm-, t
Agency /2
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/ De ,ty
10-31-01
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October 31, 2001 Council Adoption:/4/303/r 3/
Mayor Approval:
TO: MAYOR ALAN AUTRY
Mayor Veto:
FROM: REBECCA E. KLISCH, City erk Override Request:
SUBJECT: TRANSMITTAL OF COUNCIL ACTION By:
FOR APPROVAL OR VETO Deputy
At the Council meeting of 10/30/01 , Council adopted the attached Resolution No. 2001-343 ,
entitled Approving owner participation agreement w/Algen Hotel Development, LLC (8:30-B4)
, by the following vote:
Ayes : Boyajian, Calhoun, Castillo, Duncan, Quintero, Ronquillo, Perea
Noes : None
Absent None
Abstain : None
Please indicate either your formal approval or veto by completing the following sections and
executing and dating your action. Please file the completed memo with the Clerk's office on or
before 11/10/01 . Failure to file this memo with the Clerk's office within the required time limit
shall constitute approval of the ordinance, resolution or action, and it shall take effect without the
Mayor's signed approval.
Thank you.
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APPROVED:
VETOED for the following reasons: (Written objections are required by Charter; attach additional
sheets if necessary.)
/ i Date: // /i/0/
Alan i utry, Mayor
COUNCIL OVERRIDE ACTION: Date:
Ayes :
Noes
Absent :
Abstain