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HomeMy WebLinkAbout1996-06-11 - AGENDA REPORTS - EDA GRANT FUNDS THEATER (2)AGENDA REPORT City Manager Approval .X�tt Item to be presented by: Ken Pulskamp NEW BUSINESS DATE: June 11, 1996 SUBJECT: MEMORANDUM OF UNDERSTANDING FOR THE USE OF ECONOMIC DEVELOPMENT ADMINISTRATION (E.D.A.) GRANT FUNDS FOR THE EDWARDS THEATER PROJECT LOCATED AT 18830 SOLEDAD CANYON ROAD DEPARTMENT: Community Development BACKGROUND During discussions on the use of City awarded E.D.A.grant money, the City Council directed staff to allocate a portion of these funds for a project in the Canyon Country area. Upon receiving this direction, staff organized a meeting with representatives from the Chamber of Commerce to discuss potential projects in the Canyon Country area. A commercial/entertainment center, including a theater; was one of the priority projects identified by the group as being of significant benefit to the Canyon Country area. Based upon these discussions with the Chamber, staff approached the developer of the former Soledad Canyon Elementary School about the possibility of attracting a theater to the property. On January 28, 1992, the City Council approved a 98,050 square foot commercial center on the property. This approval was still valid and the project site was large enough to accommodate a potential theater project. In return for including a theater with the project, staff would commit $500,000 in E.D.A. grant money for public infrastructure improvements associated with the project. The most important of these improvements being the construction of the realigned Luther Drive. Concept Centers, L.P., the site developer, was successful in signing Edwards Theater for the project. Based upon this commitment from staff, the Sulphur Springs School District and Concept Centers, L.P. submitted a revised conditional use permit application to allow for a ten-plex theater on the project site, This revision also resulted in the downsizing of the project from 98,000 square feet to approximately 75,000 square feet, of which 37,500 square feet would be allocated to the Edwards Theater, The Planning Commission approved this revision, by a vote of 5-0, on April 2, 1996. Significant benefits of the project include meeting a long standing community desire for an entertainment/theater complex in the Canyon Country area and the provision of funds, via a long-term lease of the property to the developer, to the Sul hur Springs School District, APPROVED Agenda'1 Attached is a Memorandum of Understanding between the City, the Sulphur Springs School District and Concept Centers outlining the benefits and obligations of each party. The key obligations include the City committing $500,000 of E.D.A. money for the construction of public infrastructure associated with the project and the District and Concept Centers constructing the project per the revised conditional use permit, which requires occupancy of a portion of the project with a movie theater, 1) Authorize the City Manager to execute the attached Memorandum of Understanding; 2) Approve a public funding contribution of $500,000 in E.D.A. funds towards the construction of infrastructure improvements associated with the project; 3) Direct staff to include appropriation of $500,000 in EDA monies in the 96/97 budget. ATTACHMENT Memorandum of Understanding GAC:GEA:lep Council\annouedw.,n This letter will summarize our agreement regarding the development of a 74,785 square foot commercial center, including a 37,500 square foot Movie Theater (ten-plex) located at 18830 Soledad Canyon Road. The principal purpose of this letter is to ensure that the City of Santa Clarita ("City"), the Sulphur Springs Union School District ("District") and Concept Centers, L.P. ("Concept Centers") have reached an understanding with respect to the fundamental points relating to development of the project. We each recognize that all of the points outlined below are essential to the District proceeding with the development. The benefits to both the City, District and Concept Centers are outlined below. In addition, we have summarized, our understanding regarding our respective financial obligations. City Benefits • Meets long standing community desire for entertainment/theater complex in the Canyon Country area of the City • Will generate new public revenue • Jobs creation (construction and permanent) • Will foster business growth and compliment area businesses District and Concept Centers Benefits • Increased development potential • Reduce off-site improvement costs • Once the center is constructed and occupied, a long-term leaseof the land to the. developer will provide funds for the District Financial Obligations • Concept Centers, the developer of the project, will make an investment of approximately 9.1 million dollars to develop the project City will commit $500,000 of Federal Economic Development Administration funds for public infrastructure improvements (realignment of Luther Drive and deceleration lane improvements along Soledad Canyon Road) relating to the development of the project. The City agrees to complete the infrastructure improvements in accordance with a construction schedule to be agreed upon between City and District and Concept Centers: If following the completion of the infrastructure improvements by the City the project is not constructed, the District and Concept Centers will reimburse the City for the cost of the aforementioned infrastructure improvements not to exceed $500,000, subject to the following conditions: 1. City will not commence construction of the infrastructure improvements until written approval is received from both the District and Concept Centers. 2. Construction and occupancy of the project within two years, commencing at site development, and in accordance with Revised C.U.P. 90-021 (which requires occupancy of a portion of the project with a qualified movie theater) shall relieve the District and Concept Centers of any obligation to pay for any portion of the infrastructure improvements. Each person executing this letter of agreement represents that the transaction contemplated by this letter agreement has been duly authorized by their respective party and each party's obligations are legally binding and do not require the consent of any other party; however, the City acknowledges that the District Board approval will be required and the District acknowledges that City Council approval will be required. Miscellaneous Time will be of the essence in the performance of each of our respective obligations, including permit processing, and the completion of infrastructure improvements. This letter of agreement sets forth the entire understanding and agreement of City and the District with respect to the project and there are no oral or written understandings or agreements that are not contained in this letter agreement. Upon execution of this letter by the District Board and the City Council, the City agrees to expeditiously process the building and improvement plans for the Movie Theater project. If the foregoing correctly sets forth our understanding, please sign one copy of this letter and return it to us. CITY OF SANTA CLARITA THE SULPHUR SPRINGS UNION SCHOOL DISTRICT George A. Caravalho City Manager ATTEST: City Clerk Approved as to form: City Attorney wuncil\theatenmou Dr. Robert Nolet Superintendent CONCEPT CENTERS, L.P. Dick Darling