AR 051507 Retail Development Group

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Redevelopment Agency Meeting May 15, 2007 Property Acquisition -- APN 0162-281-04, 0162-281-14, 0162-281-34, 0162-281-52 —Retail Development Group (Gary Schafer) Page 4 To support staff's expectations for new tax increment in the West Valley Redevelopment Project, Urban Futures Incorporated completed a preliminary fiscal impact analysis to the Redevelopment Agency based upon four potential development scenarios. These four scenarios examined the increase in Assessed Valuation from development of the Super Block area and included a tax increment pro -forma over the life of the project area. The analysis also examined current conditions within the West Valley Redevelopment Project. The findings (included in Attachment 2) demonstrate that the West Valley Redevelopment Project is currently generating surplus tax increment that could be used to pay the loan to the General Fund. The analysis also shows potential increases in assessed valuation from $400 million to $600 million if the Super Block development activity is successful. This generates between $4 million and $6 million of surplus tax increment annually in the West Valley Redevelopment Project. Finally, staff also notes that several parcels of city -owned property within the Colton Super Block will become development -ready as a result of these efforts. These properties will then be marketable as a result of this conservation & economic development strategy, bringing resources to the General Fund in excess of this initial investment to purchase the Retail Development Group property. ENVIRONMENTAL DETERMINATION Purchase of the property is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Sections 15313 (Acquisition of Lands for Wildlife Conservation Purposes) and 15325 (Transfer of Ownership in Land to Preserve Natural Conditions) of the CEQA Guidelines and the City's Policies for implementing CEQA. Purchase of the property will be used as habitat for the Delhi Sands Flower Loving Fly - Federally listed endangered species. RELATED ITEM: 1. The City Council and Redevelopment Agency will also consider a Redevelopment Cooperation Loan Agreement to finance the acquisition of the property; 2. The Redevelopment Agency will also consider adoption of an SB -211 ordinance to eliminate the deadline for the agency to incur debt repayable with tax increment revenues from the West Valley Redevelopment Project. CONFLICT OF INTEREST — Gift Disclosure Requirements Retail Development Group Contact: Gary Schafer CONSISTENCY WITH AGENCY IMPLEMENTATION PLANXITY'S ECONOMIC DEVELOPMENT STRATEGY: Approval of this item is consistent with Section 3.7.5 of the Agency's Implementation Plan and Section 1.3.1 of the Economic Development Strategic Plan. RECOMMENDATION: Adopt Agency Resolution No. 862 authorizing the Executive Director to sign a purchase and sale agreement between the Redevelopment Agency for the City of Colton and the Retail