TITLE
Recommendation to receive supporting documentation into the record, conclude the public hearing, and adopt resolution making certain findings; and authorize City Manager to execute a First Amendment to the Disposition and Development Agreement with Lyon Promenade, LLC for The Promenade project. (District 2)
DISCUSSION
On June 26, 2006, the Redevelopment Agency (Agency) approved a Disposition and Development Agreement (DDA) with Lyon Promenade, LLC (Developer) for the redevelopment of land on the east side of The Promenade between Third Street and Broadway (Exhibit A - Site Map).
According to the terms of the DDA, the Developer will pay the fair market value of $2,912,200 for the 28,600-square-foot parcel at the southeast corner of The Promenade and Third Street, and for the 29,076-square-foot parcel on Long Beach Boulevard between Third Street and Broadway. Of this total, $234,132 will be paid in cash and earmarked for public art in The Promenade. The balance of this purchase price ($2,678,068) was to have been paid with in-kind improvements to public facilities, specifically the construction of 159 public parking spaces.
The Developer's cost to create the public parking spaces has increased significantly and is now estimated to be $5,565,000. With this increase, it is no longer economically feasible for either the Developer to build or the Agency to purchase the public parking spaces. Accordingly, the terms of the DDA have been renegotiated as outlined below.
The Developer will still build 159 parking spaces above code-required parking, but will now own and operate the entire parking structure as part of a private project. This amendment will remove the public easement requirement for the 159 spaces and remove the requirement that they be part of the Agency's Parking Validation Program.
In exchange for the Developer privately creating additional parking inventory, the Developer requests that the 10-year covenant to maintain the project as rental apa...
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