HomeMy WebLinkAboutAgenda Statement 1986/07/10 Item 2 REDEVELOPMENT AGENCY/COUNCIL AGENDA STATEMENT
Item 2
Meeting Date 7/10/86
ITEM TITLE: Resolution I/ Approving a Statement of Intention with Homart
Development Co. for the development of plans for the renovation
of the Chula Vista Shopping Center
SUBMITTED BY: Community Development Director
REVIEWED BY: City Manager (4/5ths Vote: Yes No X )
The Agency has been working with the Homart Development Company towards the
renovation of the Chula Vista Shopping Center at Broadway and "H" Streets.
Homart has invested substantial funds in the planning of this project and has
entered into an escrow for the purchase of the sections of the Center owned by
Louis Nohl and Carter Hawley Hale Stores, Inc. They have requested an agree-
ment with the City and Agency establishing an understanding and outlining
actions toward the renovation of the Center. The Agency asked that prior to
consideration of such a document, "outside" counsel be obtained.
RECOMMENDATION: That the Council adopt the Statement of Intention and direct
staff to work with Homart to process plans, revise the Town Centre II
Redevelopment Plan and pursue other actions as may be required.
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable.
DISCUSSION:
The proposed Statement of Intention specifies actions on the part of Homart,
City, and Agency staff towards the development and processing of plans for
renovation of the Center. Homart will develop plans for the addition of
approximately 140,000 square feet of rentable retail space and the renovation
of existing stores into a first class center. They will also proceed with the
purchase of sections of the Center currently owned by Louis Nohl and Carter
Hawley Hale. The City is requested to assist Homart by expeditiously reviewing
plans and conveying the Boys Club property, if this project proceeds. The
City and Agency are also requested to investigate the closure of Fifth Avenue,
undertake related environmental studies, and consider the relocation of
utilities and construction of public improvements as may be required.
Finally, the Agency is requested to agree to amend the Town Centre II
Redevelopment Plan to allow for the collection of tax increments which may
be used to finance public improvements for the project. Key elements that
should be noted include:
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Page 2, Item 2
Meeting Date 7/10/86
a. The City/Agency will evaluate factors jointly based upon a pro forma
of all costs.
b. The document is not intended to be a binding agreement, but rather
a statement of intention prior to proceeding to the next step.
On May 13, 1986 the City Council entered into a contract with Donald Frischer
& Associates to undertake a feasibility study for the closing of Fifth Avenue.
The cost of this study will be shared equally with Homart Development Co.
On June 24 and again on June 26, the Council/Agency discussed the matter. At
Homart's request, the statement of intention was deferred to this date. The
draft document submitted at this time will have been reviewed by qualified,
"outside" consultants who are well versed in the dynamics of shopping center
development. Because of the time element involved, details of a revised
document reflecting the consultants ' input is not available at this writing
but will be provided separately.
FISCAL IMPACT: The City would gain as sales tax 1% of all gross sales;
increased activity at the Center would have a beneficial effect on the
surrounding properties thus also improving the economic health of the area.