ACTION ITEM
SPONSOR: Teniade Broughton, Chairperson
SUBJECT:
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CONSTRUCTION COMMENCEMENT EXTENSION REQUEST - 150 S BAYLEN STREET REDEVELOPMENT PROJECT
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RECOMMENDATION:
recommendation
That the Community Redevelopment Agency (CRA) consider a request from Red Feather Developers, LLC for an extension to the construction commencement deadline on redevelopment of the property at 150 South Baylen Street for a period of one year, through March 31, 2024.
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SUMMARY:
On April 10, 2017, the CRA approved an award of contract for the sale of surplus property at 150 South Baylen Street (an underutilized parking lot) to Studer Properties, LLP. The property sold at its appraised value of $510,000. The special warranty deed required that construction on the property begin by April 4, 2021. On March 8, 2021, the CRA approved and was notified that the property was under contract to Red Feather Developers, LLC. On that date, the CRA approved a request by Red Feather to extend the construction deadline to September 30, 2021.
On August 12, 2021, Red Feather submitted notification to CRA that a title encumbrance had been placed on the property. The pending litigation to resolve the encumbrance issue would not likely be resolved prior to the end of September. Due to the litigation, the CRA approved an extension of the date to commence construction through September 30, 2022.
At the CRA’s September 12, 2022 meeting, it approved the developer’s request for an additional extension of the construction commencement deadline through March 31, 2023, as well as the notice of intent to repurchase deadline through May 30, 2023 and the repurchase deadline through September 27, 2023.
Red Feather Developers, LLC submitted a request to the CRA Office on February 15, 2023 to further extend the construction commencement deadline for a period of one (1) year ending on March 31, 2024. The developer’s full request is attached.
At this time, the developer has submitted plans to the Architectural Review Board (ARB) for conceptual approval. The plans were approved with comments on August 18, 2022, subject to final approval at a future meeting. A site work permit application has also been submitted to the Building Inspections Office.
In accordance with the terms of the special warranty deed, extension of the construction commencement deadline would also extend out the deadlines for the CRA’s repurchase option. The repurchase option deadlines would be modified as follows:
• Notice of Intent to Repurchase: Extended from May 30, 2023 to May 30, 2024.
• Repurchase Deadline: Extended from September 27, 2023 to September 27, 2024.
PRIOR ACTION:
December 5, 2016 - The CRA declared the property at 150 S. Baylen Street surplus.
December 23, 2016 - A 30-day Notice of Property Disposition/RFP was published.
January 22, 2017 - A purchase offer of $510,000 was received from Studer Properties, LLP.
April 10, 2017 - The CRA awarded a contract for the sale of 150 S. Baylen Street to Studer Properties, LLP.
April 13, 2017 - City Council approved the contract for the sale of 150 S. Baylen St to Studer Properties, LLP.
August 31, 2017 - The property was conveyed by Special Warranty Deed.
August 5, 2019 - the CRA approved a partial extension to the plan submittal deadline through February 29, 2020.
April 20, 2020 - The CRA approved a full extension of the plan submittal deadline through August 31, 2020.
October 5, 2020 - The CRA reviewed and accepted the developer’s design plans for the site.
March 8, 2021 - The CRA approved extension of the construction start deadline to September 30, 2021.
October 11, 2021 - The CRA approved extension of the construction start deadline to September 30, 2022.
September 12, 2022 - The CRA approved extension of the deadline to commence construction through March 31, 2023, as well as, the repurchase deadline through September 27, 2023 and the notice of intent to repurchase deadline through May 30, 2023.
FUNDING:
N/A
FINANCIAL IMPACT:
None.
LEGAL REVIEW ONLY BY CITY ATTORNEY: Yes
2/23/2023
STAFF CONTACT:
David Forte, Deputy City Administrator - Community Development
Sherry Morris, Development Services Director
Victoria D’Angelo, CRA Assistant Manager
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ATTACHMENTS:
1) Extension Request - February 15, 2023
PRESENTATION: No end