REPORT TO COUNCIL
SUBJECT
Title
Action on Authorizing the City Manager to Enter Into Two Option Agreements with Park Central Apartments L.P. (Prometheus) for the Franklin and Washington Street Right-of-Way Easement Acquisition
Report
BACKGROUND
On June 12, 2017 staff presented to the City Council (18-468) on the key terms of a proposed Option Agreement for the purchase of an easement for the future Franklin and Washington Streets. The staff report discussed the following elements:
* The current vision for the downtown and reconstruction of the street grid system
* The complexity of reinstating the grid and the multiple property owners affected
* The options for the future street sections of Franklin and Washington Streets
* The existing constraints within the Prometheus property and how different street sections affect the property
* The land value negotiation and appraisal process
* And the key terms of the agreement
The key terms of the agreement for Council consideration were the following:
* The option is for acquisition of a Right-of-Way (ROW) Easement in perpetuity
* The City has a 10 year-option and requires a $90,000 non-refundable deposit
* If the City exercises the option in the first 4 years, the City is required to pay:
o $1.8 million for the easement
o $800,000 for parking and rent loss (prior to construction)
* If the City exercises the option between years 5 and 10
o A new appraisal will be required for the easement
o The value of the Consumer Price Index (CPI) will be added to the parking and rent
* The City can purchase the easement before they are ready to proceed with construction of the roadway. Prometheus can continue to use the property until roadway construction begins.
* The City does not have to pay for rent and parking loss until construction begins
* The City will provide 39 replacement parking spaces adjacent to the Prometheus site until the Prometheus site redevelops
* The City is responsible for all construction costs, includin...
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