1986 CC ADJ MIN OCT 16 - Laserfiche WebLink

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269 PUBLIC HEARINGS: West Valley Redevelopment Project Price Club Warehouse Facility Mayor Huntoon declared the Public Hearing open. Vice -Chairman Rios declared the Public Hearing open. City Attorney Edwards stated this is a Joint Meeting of the City Council and the Redevelopment Agency. The same persons are members of both. To simplify matters, these suggestions are offered. The Mayor will chair the meeting. Without it being expressly stated, motions and votes will be action by either the Council or the Agency as appropriate. A single motion and vote may take all action required by either or both. City Clerk Ramos submitted the Affidavit of Publication and reported that no protests or objections had been received. City Manager Benest reported from his memorandum dated October 14, 1986, regarding the proposed Redevelopment Disposition and Development Agree - 0 ment between the Agency and the Price Company and a Summary Report on ❑ the proposed acquisition and sale of real property by the Agency to the Price Company. ❑ Mr. Benest then outlined the major points of the Agreement, which in - (O cluded: d 1. Price Company agrees to construct a new 125,000 square foot Price Club. The existing Price Club currently generates between $800,000 to $1,000,000 a year in sales tax to the City. While not part of the deal, Price Company plans to construct related retail develop- ment adjacent to the new facility which will also generate sales tax. 2. Price Company will lend to the Agency $2.5 million at 7% fixed in- terest rate to do three things: purchase four vacant parcels; in- stall a traffic signal at Valley and Wildrose; pay $203,000 of future assessment payments. 3. Agency will pay back loan with 50% of the sales tax generated from the site. (Any remaining balance at the end of fifteen years is forgiven) This point requires approval of a sales tax ordinance. 4. Price Company will provide a Good Faith Deposit of $250,000 to guarantee performance. Mr. Benest concluded Staff recommends the Council approve the acquisi- tion and sale of property by the Redevelopment Agency to the Price Club, and the Agency approve and authorize the Vice -Chairman to execute the Disposition and Development Agreement on behalf of the Agency and give the Executive Director the authority to approve and sign any notes and other documents related to the agreement. Mayor Huntoon asked if anyone present desired to speak on this matter. Mr. Elvin Meek, Mayor of the City of Rialto, stated this certainly is a very good deal for'Colton, and congratulated the City. Mr. Meek ad- vised that approximately two years ago the Price Club had decided to relocate to the City of Rialto, if the city would agree to close Sun- flower Avenue, allow the store to use three acres in Rialto for park- ing, and install a traffic signal on Riverside Avenue. Mr. Meek said the City of Rialto complied with these conditions, however, the reloca- tion never materialized. Mr. Meek concluded he would be happy to assist the City of Colton in any way concerning this matter. Moved by Councilman Rios, seconded by Councilman Rehrer, the Public Hearing was terminated. Unanimous vote. OCT 16 1986