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File #: 21-1185    Version: 1 Name:
Type: Consent Calendar Status: Agenda Ready
File created: 8/26/2021 In control: Council and Authorities Concurrent Meeting
On agenda: 9/28/2021 Final action:
Title: Action on Authorizing the City Manager to Sign Notice of Option Letters and a Continued Use License Agreement with Park Central Apartments L.P. (Prometheus) for the Franklin and Washington Street Right-of-Way Easement Acquisition
Attachments: 1. Franklin Street Option Agreement, 2. Washington Street Option Agreement, 3. Franklin Street Notice of Option Letter, 4. Washington Street Notice of Option Letter, 5. Replacement Parking Locations, 6. Franklin Street Plat and Legal Description, 7. Washington Street Plat and Legal Description
REPORT TO COUNCIL
SUBJECT
Title
Action on Authorizing the City Manager to Sign Notice of Option Letters and a Continued Use License Agreement with Park Central Apartments L.P. (Prometheus) for the Franklin and Washington Street Right-of-Way Easement Acquisition

Report
BACKGROUND
Promote and Enhance Economic, Housing, and Transportation Development

BACKGROUND
On June 17, 2018, the City Council authorized 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. Staff had presented and discussed this action at multiple Council meetings and there was significant community input as part of the process. Key discussion points at these various meetings included the following:

* 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 p...

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