TITLE
Recommendation to authorize City Manager to execute a three-party Exclusive Negotiation Agreement with the Redevelopment Agency and Wilmac Enterprises, Inc., for the northwest corner of Pacific Coast Highway and Martin Luther King Jr. Boulevard. (District 6)
DISCUSSION
Approval is recommended to enter into a three-party Exclusive Negotiation Agreement (Agreement) with the Redevelopment Agency and Wilmac Enterprises, Inc., for the development of the northwest corner of Pacific Coast Highway and Martin Luther King Jr. Boulevard.
The Central Long Beach Strategic Guide for Development (Guide) identifies the neighborhood along Pacific Coast Highway between Alamitos Avenue and Pacific Avenue as a focus area for concentrated redevelopment activity. One of the goals prioritized by the community is the development of regionally focused retail along Pacific Coast Highway (PCH). To further the goals of the Guide, the Redevelopment Agency (Agency) previously assembled a 15,782-square-foot site located at the northwest corner of PCH and Martin Luther King Jr. Boulevard (Project Site) (Exhibit A - Site Photos). The Project Site was previously occupied by a liquor store, which had been a major blighting influence and a source of nuisance in the neighborhood.
In accordance with the land use recommendations of the Guide and the desire to facilitate a development that is compatible with the area's needs, Wilmac Enterprises, Inc. (Participant), approached staff and wishes to pursue a commercial/retail development at the Project Site. The Participant is interested in developing a commercial/retail project that complements the neighborhood, creates jobs, and furthers the community's vision for Central Long Beach.
Wilmac Enterprises, Inc., is a private real estate development firm founded in 1998 that focuses on neighborhood-serving retail. The firm has demonstrated a strong interest to reinvest in Central Long Beach. Staff proposes entering into a 180-day Exclusive Negotiation Agreement with the Participant with the ability to renew for an additional 120 days at the discretion of the Executive Director of the Agency. The intention is to negotiate a development agreement that will further direct the development of the Project Site.
A good faith deposit of $25,000 will be required and held by the Agency upon full execution of the Agreement. Of this amount, $10,000 shall be non-refundable. The remaining $15,000 of the good faith deposit will be used to pay for outside attorneys and third-party consultant fees incurred to negotiate and perform its obligations under the Agreement.
On March 21,2011, the Redevelopment Agency Board approved a recommendation to authorize the execution of the Agreement (Exhibit B - Redevelopment Agency Board Staff Report).
This letter was reviewed by Chief Assistant City Attorney Heather Mahood on April 6, 2011, and by Budget Management Officer Victoria Bell on April 13, 2011.
TIMING CONSIDERATIONS
City Council action is requested on May 17, 2011, to expedite implementation of the proposed Agreement.
FISCAL IMPACT
There is no impact to the General Fund and no local job impact associated with this action. The good faith deposit of $25,000 will be placed in the Capital Projects Fund (CP) in the Department of Development Services (DV) to offset future costs.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
AMY J. BODEK, AICP
DIRECTOR OF DEVELOPMENT SERVICES
APPROVED:
PATRICK H. WEST
CITY MANAGER