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File #: 18-866    Version: 1 Name:
Type: Public Hearing/General Business Status: Agenda Ready
File created: 6/15/2018 In control: Council and Authorities Concurrent Meeting
On agenda: 7/17/2018 Final action:
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
Attachments: 1. DRAFT Franklin Street Option Agreement
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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