HomeMy WebLinkAboutNoyan Frazier Properties - Midstate Bowl Site Expansion Reimbursement - 20119360m -8
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THIS AGREEMENT FOR CONSTRUCTION OF PUBLIC IMPROVEMENTS
phis "Agreemmt" ), is mode and entered into this -a day of Mev, 2011, by and la teem the
CITY OF FRESNO REDEVELOPMENT AGENCY, a Public Body, Corporate and Politic
CF DA") and Noyaraff i aster Properties, LLC., C`Developet)
RECITALS
WHEREAS, the MA has adopted and is responsible for implementing its Freewev
99/Golden Stare Corridor Redeveloommr project Area PI ( "Plan"); and
Whereas, The Plan provides for public improvemmtS including, without Invitation,
water, sewer, strum drain, threat, and traffic signal impmvammts. Constructing these public
improvements will help eliminate blighting influences in On Project Area by doing the
following Enmumging existing businesses to reason or expand, attracting new businesses, thus
stimulating employment and economic growth, and strengthening the economic base of the
Pmjmt Arae; and
Whereas, The Agency is responsible for and is engaged in redevelopment activities to
carry out the Plan; and
WHEREAS, under the authority prrvidul by the Ordinance Code of the City of Friction,
the City has required Developer to construct certain off -sire public Improvements
("Improvements'), as depicted in Exhibit I and hereto and inmrynmted herein by this reference,
as pan of the development of Midstate Bowl Site Expansion ("Project" ; and
AGREEMENT No.
REIMBURSEMENT AGREEMENT FOR CONSTRUCTION
OF PUBLIC IMPROVEMENTS
THIS AGREEMENT FOR CONSTRUCTION OF PUBLIC IMPROVEMENTS
phis "Agreemmt" ), is mode and entered into this -a day of Mev, 2011, by and la teem the
CITY OF FRESNO REDEVELOPMENT AGENCY, a Public Body, Corporate and Politic
CF DA") and Noyaraff i aster Properties, LLC., C`Developet)
RECITALS
WHEREAS, the MA has adopted and is responsible for implementing its Freewev
99/Golden Stare Corridor Redeveloommr project Area PI ( "Plan"); and
Whereas, The Plan provides for public improvemmtS including, without Invitation,
water, sewer, strum drain, threat, and traffic signal impmvammts. Constructing these public
improvements will help eliminate blighting influences in On Project Area by doing the
following Enmumging existing businesses to reason or expand, attracting new businesses, thus
stimulating employment and economic growth, and strengthening the economic base of the
Pmjmt Arae; and
Whereas, The Agency is responsible for and is engaged in redevelopment activities to
carry out the Plan; and
WHEREAS, under the authority prrvidul by the Ordinance Code of the City of Friction,
the City has required Developer to construct certain off -sire public Improvements
("Improvements'), as depicted in Exhibit I and hereto and inmrynmted herein by this reference,
as pan of the development of Midstate Bowl Site Expansion ("Project" ; and
WHEREAS, the RDA desires the Developer to construct the Project as depicted in
Exhibit No. 1 attached. and include within the Pmjed, the consimcfimn of the Impmvemenm
also as depicted in Exhibit No. I, and
WHEREAS, the RDA teres to reimburse the Developer for the cost of commenting the
Improvements to harbor the elimination of blighting influences in the Project Area;
NOW, TEIEREFORE, in consideration of the recitals set forth above, which are herein
incorporated by this retereoce, and the mutual coveaaots and undertakings ser form herein, the
mutual rsript and sufficiency of which is heeby acknowledged, the RDA and the Develops agate
as follows:
1 The Developer said construct the Improvements in accordance with all City of
Fresno approved plans, drawings, standards and specifications pursuant to the terms of
this Agement and dedicate all required rights-oFway as determined by the City of
Fresno.
2. The RDA shall reimburse the Developer for the cost of constructing the
Improvements for an amount up to but not to excret the Preliminary Estimate of
Construction Costs provided in Ne RDA. A descripusin of the Improvements and a
preliminary estimate of their costs is descnbcd in Exbibit No. 2, attached hecto and
mcorpomted herein by tris reference. Fired payment to the Developer shall be based on
the Developer's actual cash expenditures for the ImPmvements bre will not exceed Ne
original agreed to and attached Froliminary Esfimnte of Concoction Costs.
3. Developer understands and agrees that cons[meion of the Improvements is
subjed to the prevoiling wage rectuiremons contained in California Iebor Cede §§ 1720
et seq. It is Developer's sole ooponsibli ty to comply with the requirements of that
section.
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4. The RDA shall retain the right to periodically inspect as it deems appropriate and
approve or disapprove the construction of the Improvements prior to the Developer's
final acceptance of the Improvements from the concoction requ seem. Upon completion
of construction by Developer of the Improvements, and within ten (10) calendar days
after receipt of the notification of completion, RDA or its' designee, shell inspect the
Improvements and (i) accept, in writing those facilities so constructed which conform in
all material respects to the Project Plans, and (ii) notify the Developer in wnfing of any
portion of the Improvements which do not conform to the Project Plans, and the specific
respects is which they do not conform. In the event that any of the Improvements so
concocted do not confomn in all maenad respects to Ne Project Plans, Nc RDA shall
cause such nonconformity to be corrected, at no additional cost to the RDA, prior to the
RDA's acceptance of those Improvements. if the nonconformity cannot he cmun,nd
within a reasonable time, not less than sixty (60) calendar day, after receipt of such
written notice by the RDA, the RDA may reject the nonconforming Improvements, or
may accept Nem in writing If the RDA accepts any such nonconforming Improvements,
the munbumemenl recui ad pursuant to Paragraph No. 2 l meof may be adjusted as
mumally determined by the RDA and Ne Developer to reflect the reduced value of the
welded nonconforming Improvements. Those Improvements that do not coNbrm to the
Project Plans and are not accepted by the RDA shell not be subject to any reimbursement.
9. Subsequent to Developer's completion of all its obligations hereunder, (which
obligations are conditions precedent to all of RDA's rights hemwder) reimbursement
slsall be made to Developer by the RDA for an amount not to exceed the Preliminary
Estimate of Construction Costs as delineated in P,xhibit 2 herein, subject to the
presentation to the RDA of a entry of the Notice of Completion and evidence of
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construction costs from DLvelepers Contractor
6. To the furthest extent allowed by law, Developer "I indemnify, hold harmless
and defend RDA and each of its oticers, officials, employees, ageata and volanteers but,
any and all loss, liability, fines, penalties, forfeitures, costs and damages (whether in
contract, tort or strict liability, including but nut limited to persoml injury, death at eery
time arta property damage) incurred by RDA. Developer or any other person, and from
any and all claims, demands and actions in law or equity (including anomeys tees and
litigation expenses), arising or alleged to have anscet directly or indirectly out of
performance of this Agreement or the construction crony Improvements as described in
P.xhibit No. 2 as attached to this Agreement. Developer's obligations under the preceding
sentence shell apply regardless of wirether RDA or any of its officers, officials,
employees, agents or volunteers are passively negligent, but shall not apply to any lase,
liability, fines, penalties, forfeitures, costs or damages caused by the active or sole
negligence, or the willful misconduct, of RDA or any of its offrcere, officials, employees„
agents or volunumm.
This section shall survive temilnadon or expiration of this Agreement
0 Miscellaneous.
(a) Entlr Aurcera This Agreement (including the E,xWble hereto) contains
the entire agreement betweerr RDA and Developer in regard to the subject matter hereof,
and no oral statements or prior written documents not specifically incorimmued into this
Agreement shell he any force or effect.
(b) Modifications. ]his Agree neat may be modified only by a written document
executed by both parties hereto.
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(c) No=ee. All ounces required or permitted by this Agreement or applicable law
shall he in writing and may be delivered in presort (by band or by courier) or may be sent
by regular, certified or registernd mail or U.S. Postal Service Express Mail, with postage
prepaid, or by facsimile transmission, and shall be demand sufficently given if served
in a manner specified in this Paragraph 7e. The addresses noted below shall be that
patty's address for delivery or mailing of notices. Either party may by written entice to
the other specify a different address for mfice. Any notice sent by registered or
certified mail, return receipt requested, shall be deemed given on the dote of delivery
shown on the receipt card, or if no delivery date is shown, two (2) days after the
postmark therem. If amt by regular mail the notice shall be deemed given forty-eight
(48) hours after the ammo is addreirsed as expired herein and mailed with postage
prepaid Notices dolivernd by United States Express Mail or overnight canner that
guazantee next day delivery shall be deemed given twenty-four (24) hours after delivery
of the same to the Postal Service or courier Nadces vanamitted by facsimile
transmission or similar mems shall be demand delivered upon telephone confir a4on
of receipt (confirmation report from fax machine is sufficient), provided a copy is edea
delivered via delivery or mail. If notice is received after 4'30 p.m. in the tlme zone in
which the patty is located or on a Saturday, Sunday or legal holiday, it shall be deemed
received on the next business day
City of greater Redevelopment Anon
2344 Tulare Street. Suite 200
Fission, CA 93721
Attn: Marlene Murphy
DEVELOPER
NoyatiFrazicr Properties, LLC
685 west Alluvial, #101
Prince, CA 93711
5
Ann : Mehmet Noyan
(d)Sevembild Ifanypmvisionofthis Agreementishdd Nbeillegal,invalidor
unenforceable under present or Poture laws, such provision shall be fray severable, and
Nis Agreement shall be construed said enforced as if such illegal, invalid, or
unenforceableprovision were not a parchereof, and the remairdng Provisions herznf slmll
remain in full more and effect. In lieu of any such illegal, invalid, or marderceeble
provision herein, there shall be mumnatically added as a part of this Agreement a
Proclaim' as similar in its ten's to such illegal, invalid or unenforceable proclaim' as may
be possible and be legal, valid and emercerible.
(e) Construction. The parties hereto acknowledge that each party has, or has had
the offsamnity In have, murtsel of its own choosing review and revise this
Agrecmenf such Net the normal rate of commuction to the effect that any ambiguities
aro to be resolved against the drafting party shall not be employed in the interpretation of
this Agreement or any exhibits or amendments berate.
(f) Governmuz law and Vanua. This Agreement shall be governed by, and
conatraed and unforced he accordancewith, the laws ofthe State of California. Venue Por
the purposes mfthe Fling of any action mgardivg the enffarccment or iMerpretetion mfthis
Agrwnmt and any rights and duties hereunder shall be Fresno County, California.
(g) Waiver. No feilme or delay by a party to insist on the sola pertormance of
any provision of this Agreement, or to exercise any right or remedy consequent on e
breach thereof, shall constitute a weaver of any breach or subsealrrant breach of such
provision.. The waiver by either party of a breach by the other of any provision of this
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Agreement shall not candidate a continuing waiver or a waiver of any subsequent breech
of either the same or a different provision of this Agreement. No provisions of this
Agreement may be waived unh as in writing and signed by all parties to this AgreeTnmL
Waiver of my one provision herein shall not be deemed to be a wawa of any other
provis on herein.
(h) Asdgaf trt. Neither party hereto shall assign this Agreement, or any interest
therein, without the prior written commt of the other Avy such attempted assigvmmt iv
violation of this Agreement shall be null and void.
(i) Bim. Once this Agremsent is signed by all parks, it shall be binding
upon, and shall inure to the benefit of, all panics, and mob probes, respective heirs,
successors, assigns, contractors, submntmctors, transferees, agents, servants, employees,
and representatives.
M WITNESS W IEMOF, the parties hereto have executed Us DRA on the day and
year set out below.
Dated:5 <1 ,2011. REDEVELOPMENT AGENCY OF TFIE
CITY OF FRESNO
14
Marlene Murphey p /
Executive Director \/
Dated: � 2011. NoyadFra tier Properties, LLC
B
Name Mehmet Noyan
Title: Pmsidmt
APPROV ED AS TO FORM
City Attorney's Office
Ex Officio Anomey to Agency
B
Dene E. Bradley
Deputy City Attorney
ATTEST
R IREBA-B., R499W. yvCn(W, sqq�
Ex Officio Clerk for the Agency
a_ JI9 11
Deputy
v
REPORT TO THE
REDEVELOPMENT AGENCY
AND CITY COUNCIL
DATE: May 5, 2011
FROM: Marlene Murphey, Executive Director
BY: John Ouiring, Project Manager
AGENCY ITEM NO. 9:301
AGENCY MEETING 05/05/11
y� APPROVED BY
d V�t1'4FoAk ve directed
SUBJECT: Consider approval of the following actions relating to reimbursement of costs
incurred within the Freeway 99/Golden State Corridor Redevelopment Project
Area for the installation of public improvements on West Clinton and North
Weber Avenues:
1. Adopt Findings of Categorical Exemption pursuant to Sections 15301
(Existing Facilities(, Section 15303 (New Construction or Conversion of
Small Structures( and 15304 (Minor Alterations to Land( of the CEDA
Guidelines. related to the construction of publlcally owned improvements in
a targeted area generally described as North Weber, North Hughes and
West Catch Avenues
2. JOINT RESOLUTION -Making certain findings pursuant to Section 33445
of the Community Redevelopment Law. authorizing the Agency a
reimbursement of costs Incurred within the Freeway 99/Golden State
Conidor Redevelopment Project Area for the installation of public
improvements on West Clinton and North Weber Avenues
3. Authorize Developer Reimbursement Agreement (DRA) between the
Redevelopment Agency and Notion/ Frazier Propedles, LLC and authorize
the Executive Director to execute the Developer Reimbursement
Agreement LORA)
RECOMMENDATION
It Is recommended that the Agency Board and City Council'
1. Adopt findings of Categorical Exemption as specified In Sections 15301, 15303
and 15304 of the CEOA Guidelines.
2. Pass the joint resolution making certain findings pursuant to Section 33445 of the
Community Redevelopment Law, authorizing the Agency's reimbursement of
costs for the installation of public improvements on West Clinton and North Weber
Avenues
3. Approve the Developer Reimbursement Agreement (DRA) between the
Redevelopment Agency and Noyan/Frazier Properties, LLC and authorize the
Executive Director to execute the DRA. NArnerronps puotmemrEenrr
Report to Agency
Reimbursement Agreement NoyeNFreLer Properties, LLCMay 5, 2011
Page 2
EXECUTIVE SUMMARY
NoyardFrezier Properties (NFP) and the Redevelopment Agency executed a Development
and Disposition Agreement for the development of a 8.3 acre mixed retail and office
development at the SW comer of Clinton and Weber Avenues In 2004. This project
encompasses the original site of the former Mid State Bowling lanes as wall as smaller
surrounding properties. Under the agreement, NFP was to develop the property with an
anchor tenant and other ancillary uses totaling approximately 100,000 square feet of
commercial space.
The Developer and a large parcel of the project to the City of Fresno in 20071n anticipation
of the placement of a new public safety substation being developed within the boundaries of
the site. The Developer has also completed all entitlement processing and determined all
the public off-sge infrastructure requlremems for the completion of the project. Since then,
the Projects initiation has been slowed by the lack of resources available for the Police
Department to Initiate their building project. In addition, the recession has negatively
affected the commercial real estate market and made it dRFoult for the developer to get
commitments from commercial tenants without progress on the Police substaton issue.
The Developer has identifed a significant Cottons traffic impact that has also affected his
ability to market the development project. Catrens has required the movement of the traffic
signal controlling eastbound traffic on Clinton Avenue at Weber. They have required that the
signal at this intersection be moved by the developer act that InfrasWmure Improvements
can be completed that include an additional left Wm lana onto Weber avenue and a right
tum lane be constructed onto the Developers property.
The company and developer have met with Agency staff regarding mutual goals for that the
project that may be advanced by the Agency enhancing public infrastructure for the
improvement of traffic circulation. These measures would provide the Developer with
additional ability to market the property and resolve an impacted intersection identlfied by
Catrans for public improvements.
The Developer proposes to complete the Catrans identified Improvements with Agency
assistance provided by a Developer Reimbursement Agreement (ORA) for the oR-site
improvements specried in attachment 2. Further, In its 2010-11 budget the Agency Itlentifiatl
various circulation Issues and vadous public street improvements In the greater
neighborhood generally bounded by Clinton, Shields, Weber/Hughes and Vassar Avenues.
Though a multi-year effort, the Agency is seeking to focus revitalization efforts area that is
supported by and complementary to the subject proposal.
Pursuant to the Developer Reimbursement Agreement (DRA) between Me Agency and
NFP, the Agency will reimburse the Developer for the cast of constructing the public
infrastructure improvements along Clinton and Weber Avenues for an amount up to but not
to exceed the Preliminary Estimate of Construction Costs of $147,755 provided to the RDA.
Report 10 Agency
Reimbursement Agreement Abyan/Fraziar Rapertiea, LLCMay 5, 2011
Page 3
BACKGROUND
The identified NFP project is prepared to proceed without the public safety substation as
part of their development plan. To pursue new commercial opportunities for the site, the
RDA preposes to assist In the completion of public inhastructure improvements at the
intersection of Clinton and Weber Avenues.
Thaw Improvements would assist in the alleviation of existing congestion at this impacted
intersection as identdied by Caitrans and address circulation needs triggered by IMII
development of the subject site. The traffic improvements include moving an existing traffic
signal to an opposite comer of the intersection and undergrounding certain portions of PGE
power poles adjacent to the area. There will also be a slight lane widening required on
Weber to accommodate the traffic from a new left tum lane from east Clinton Avenue.
As stipulated in the DRA the developer veli:
1. Construct the improvements in accordance with all City of Fresno approved plans,
drawl standards and specdications pursuant M Section 3 below.
2. Dedicate any required rights of -way to the City to complete the improvements.
The Agency agrees to:
1. Reimburse the Developer for the cost of constructing the improvements for an
amount up to but not to exceed the Preliminary Estimate of $147,755 as stipulated in
the Construction Costs provided to the RDA.
This project Is consistent with the goals and objectives in the Freeway 99/Golden State
Comdor Redevelopment Project Area plan. Staff performed a preliminary environmental
assessment of this project and has determined that it falls within the Categorical Exemption
set forth in CECA Guidelines, Sections 15301 (Existing Facilities), Section 15303 (New
Construction or Conversion of Small Structures), and Section 15304 (Minor Alterations to
Land). Furthermore, Staff has determined Mat none of the exceptions to Categorical
Exemptions set forth in the CEOA Guidelines, section 15300.2 apply M this project.
The Housing and Community Development Commission unanimously approved this item at
its regularly scheduled meeting on April 27, 2011.
Funds are budgeted! and available in the FV 10111 budget.
Attachments: 1. Reimbursement Agreement
2. Map
3. Improvements Cost Estimates
4. Resolution
F bit I.
PmjmtD Prion
See AHache Memuce Mao
Exhibit 2.
PRELIMINARY COST ESTIMATE FOR
IMPROVEMENTS ELIOBILE FOR
REIMBURSEMENT TO DEVELOPER BY "A
Exhibit No.2
1_ mi Nry REr R S.01 i n,m.0
I.
Masan . SUFmi • [Ina bglnaeng
Preliminaw Enaineet's Estimate
Clinton and Weber
Fresno, CA
1. Climate Avenue puantlly LLMf Eafembn
Cathode Anshan Conduction 5uanded $)5,500
3. WebecAveree Ouanary MAft Eamm
1 tieeetLl hL21VIAeaS xl 3 e W 112M
WeMaAvmw Combustion Subroba S1;SW
Canamuclbn Subtobl $92,100
s Consulmntservices a mm Mandl
uni
Is
warned
w.chat
S29,I20
,Inj HO Re Fundamentalism
$31,015
M. Conlinsi fftessna I a 4
$9,310
Tetel Cost:
inn
FassmentRepur
a mad
Cathode Anshan Conduction 5uanded $)5,500
3. WebecAveree Ouanary MAft Eamm
1 tieeetLl hL21VIAeaS xl 3 e W 112M
WeMaAvmw Combustion Subroba S1;SW
Canamuclbn Subtobl $92,100
s Consulmntservices a mm Mandl
Cmuuaanl Services Subloull $",am
Cost Summary Summary
1. Clinton Avenue
uni
1 is
18,420 00
18.42d)
S29,I20
PrevsllinS Ii Coaft famous 163/
$31,015
M. Conlinsi fftessna I a 4
$9,310
Tetel Cost:
$1/7,755
Cmuuaanl Services Subloull $",am
Cost Summary Summary
1. Clinton Avenue
f)&'ka
1 Rasta Avenue
$14,000
a Consultant Senicm
S29,I20
PrevsllinS Ii Coaft famous 163/
$31,015
M. Conlinsi fftessna I a 4
$9,310
Tetel Cost:
$1/7,755
I.0 tna6me baud been beat settled knowledge at melime of this estimate and snap be oxlnM mhongn an
anamprabbiddingeercess
l.Rnat not ntludebNmkesnmate
09-106 peau 101