HomeMy WebLinkAbout1996-12-14 - AGENDA REPORTS - MCBEAN PKWY ST IMPROV (2)AGENDA REPORT
UNFINISHED BUSINESS
DATE: December 14, 1996
City Manager Approval
Item to be presented by:
George A. Caravalho
SUBJECT: - McBEAN PARKWAY STREET IMPROVEMENTS: WEST SIDE OF
McBEAN PARKWAY FROM VALENCIA BOULEVARD TO THE SANTA
CLARA RIVER - PROJECT NO. 95069 - ADVERTISE FOR BIDS
DEPARTMENT: Building and Engineering Services
BACKGROUND
The City Council agreed to enter into a public1private partnership for the development of the
Hotel/Conference Center and the Spectrum Club, which is currently under construction. In
order to meet this obligation, the City applied for and obtained an EDA (Economic
Development Administration) grant in the amount of $3,075,000. The Newhall Land and
Farming Company is providing approximately $24,000,000 in development -related
construction as their participation.
The EDA grant "Statement of Project Components" indicated that the City was "proposing
to use EDA funds to construct improvements consisting of a major storm drain, related
appurtenant structures such as catch basins and an outlet structure, and street
improvements on the west side of McBean Parkway." The storm drain would provide needed
drainage and flood control facilities of a regional nature along McBean Parkway to an outfall
at the Santa Clara River. The proposed roadway improvements would provide for additional
traffic flow capacities along McBean Parkway necessary to mitigate traffic impacts that may
be created by the proposed development in the area and provide for pedestrian access.
The proposed street improvements include curb, gutter, sidewalk, street lights, parkway
landscaping, and traffic signal modifications along the west side of McBean Parkway from
Valencia Boulevard to the Santa Clara River, and modification of the median on McBean
Parkway north of Magic Mountain Parkway. The engineer's estimate for construction of this
project is approximately $900,000. Construction is scheduled to begin in early March 1997,
with an anticipated completion date of July 1997.
MCBEAN PARKWAY STREET IMPROVEMENTS
December 14, 1996 - Page 2
Total Project Construction Cost
City Costs Funded by EDA Grant
Storm Drain 2,085,000
Street Improvements 990:000
Total City Costs:
NL&F Costs Toward this Project
Total Costs:
For more detail on projects costs, see Exhibit II -2.
$ 4,285,180
($3,075,000)
$ 3,075,000
$ 1,210,180
$4,285,180
Plans and specifications for this project have been completed and are available for review in
the office of the City Clerk.
1. Approve the plans and specifications for West McBean Street Improvements.
2. Authorize staff to advertise for bids on this street project.
ATTACHMENTS
Location Map (Exhibit II -0)
EDA Grant Statement of Project Components (Exhibit II -1)
EDA Grant - Project Funds Utilization Fact Sheet (Exhibit II -2)
Attachment Agenda Report dated November 28, 1995 (Agenda Item 20)
Attachment Agenda Report dated November 14, 1995 (Agenda Item 25)
Memorandum to Mayor and City Council dated November 7, 1995
Attachment Agenda Report dated July 11, 1995 (Agenda Item 30)
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City of Santa Clarita
Building and Engineering Services Department
Project Location Map
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EXHIBIT II -0
STATEMENT OF PROJECT COMPONENTS
The City of Santa Clarita is proposing to use EDA funds to construct improvements consisting
of a major storm drain, related appurtenant structures such as catch basins and an outlet
structure, and street improvements on the west side of McBean Parkway. These improvements
are expected to enhance the development of adjacent properties.
Currently, an existing open channel drains water through a natural course to the Santa Clara
River. A number of existing storm drain pipes outlet into this channel. The proposed storm
drain will be a new facility which will replace the -existing natural channel, and will be an
expansion to the existing storm drain facilities.
The west side of McBean Parkway presently consists of three travel lanes and a four foot paved
-shoulder without curb, gutter, or sidewalk.
The upstream end of the new storm drain, approximately 2200' long, -will be a double 8'6"W x
7'0"H reinforced concrete box which will be tied into an existing double 6'6"W x 5'0"H RC box.
This new section of the storm drain transitions into an existing storm drain which extends
under Magic Mountain Parkway. On the north side of Magic Mountain Parkway, a new double
9'0"W x 7'0"H RC box will tie into the existing structure. This section of the drain will extend
approximately 700' to the Santa Clara River where an outlet structure will be constructed. The
storm drain is designed to carry a flow of 1746 cfs.
In addition to accommodating the existing storm drain facilities along McBean Parkway and
Magic Mountain Parkway, four catch basins and laterals will also be constructed to outlet into
the new reinforced concrete box drain.
Street improvements including curb, gutter, sidewalk and an eight foot wide paved shoulder will
be constructed along the west side of McBean Parkway.
No problems which might delay construction have been identified. Provisions have been made
to include the construction of a temporary drain to direct the flow of water away from the,
construction site.
The preliminary construction cost estimate for the project is $2,685,000. Refer to attached
Exhibit II -3 for preliminary project quantities and cost estimate breakdown.
The construction project will be competitively bid.
7'll:
EDA Grant approval amount
City funds to be expended
Storm Drain:
Design
Soils Investigation & Report
Soils surcharge, shoring of utilities,etc.
Demolition and Grading
Surveying, testing, inspection
Environmental consultants, fees, mise
Engineers estimate for construction
Actual bid for construction
Contingency
Estimated costs for:
Construction Management
Inspection
Materials Testing
Surveying
Outlet Structure Revision
Design
Environmental consulting
Estimate for construction
Total
Remaining balance of EDA Grant
Street Improvements
Design
Estimate for:
Construction
Construction Management
Inspection
Materials Testing
Surveying
Total
Remaining balance of EDA Grant
(Work paid for by NL&f
$3,075,000
$ 0
(Paid for by NLF $92,200)
(Paid for by NLF $13,500)
(Paid for by NL&F $158,995)
(Paid for by NL&F $702,000)
(Paid for by NL&F $144,000)
(Paid for by NL&F $ 44,685)
$2,600,000
$1,633,978
$ 80,000
$ 34,000
$ 16,000
$ 88,000
$ 8,200
(Paid for by NL&F $39,800)
(Paid for by NL&F $15,000)
$ 224,822
$2,085,000
$ 990,000
(Paid for by NL&F amount unknown)
$ 900,000
$ 27,000
$ 10,000
$ 43,000
$ 10,000
$ 990,000
$ 0
$1,210,180)
Note: If project costs exceed the EDA grant, overruns will be paid_ by NL&F
EXHIBIT II -2
AGENDA REPORT
City Manager Approval
Item to be presented by.
UNFINISHED BUSINESS
DATE: November 28, 1995
SUBJECT: HOTEL / CONFERENCE CENTER
DEPARTMENT: Community Development
BACKGROUND
Ken Pulskamp
Based on community interest expressed for local meeting and banquet facilities as stated in
the community strategic planning sessions, the City's Economic Development Division has
been working to establish a hotel/conference center. The Newhall Land and Farming
Company has developed a joint public/private hotel conference center proposal for
consideration. The project envisions a 200 room hotel with an adjoining conference center.
It would represent approximately $32 million in tax revenue over the next 30 years and the
creation of 150 new jobs.
Based on previous direction from the City Council, the City Manager has continued
negotiations with respect to the level of public financial participation in the project and has
reached a common agreement as spelled out in a Hotel/Conference Center Development
Project Memorandum of Understanding (M.O.U.). The key public policy points contained in
the M.O.U. are use of the name "Santa Clarita" in the name of the conference facility, a
guaranteed annual time allotment for public use of the conference center facility, and public
sector financial participation in the conference center project for an amount not to exceed
$3,075,000 million dollars in Economic Development Administration (E.D.A.) funds.
1 �: YI►
It is recommended that the City Council: 1) approve the attached Memorandum of
Understanding between the City of Santa Clarita and Newhall Land and Farming Company,
2) approve a public funding contribution of $3,075,000 E.D.A. funds toward the development
of a conference facility; and 3) increase Estimated Revenue Account #01-95053-227 by
$3,075,000 and appropriate $3,075,000 in Account #01.95053-227.
ATTACHMENT
Hotel/Conference Center Development Project Memorandum of Understanding (M.O.U.).
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Agenda Item:. 910
N E W H A L L L A N D
November , 1995
City of Santa Clarita
23920 Valencia Boulevard, Suite 300
Santa Clarita, CA 91355
Attn: City Manager, George Caravalho
Re: Proposed Conference Center/Hotel
This letter will summarize our agreement.regarding the
development of -a 18,000 square foot conference center and a 200
room, full service hotel ("Conference Center/Hotel"), near the
southwest corner of McBean Parkway and Town Center Drive.
The principal purpose of this letter is ensure that the
City of Santa Clarita ("City") and The Newhall Land and Farming
Company ("NLF") have reached an understanding with respect to the
fundamental points relating to development of the Conference
Center/Hotel, without which, the time and effort that will go
into NLF's designing, making application for entitlements and
permits and constructing the Conference Center/Hotel would not be
warranted. We each recognize that all of the points outlined
below are essential to NLF's proceeding with the development of
the Conference Center/Hotel.
The benefits to both City and NLF are outlined below.
In addition, we have summarized our understanding regarding our
respective financial obligations and the Conference
Center/Hotel's entitlements.
T.E NENwn4 LINO AND FARMING Caw,w 23823 VA,!NCA BOILEVAPO. VALENCIA. CALIFORNIA 91355 18051 255-4000
RISILVER 99999 239537 2
City of Santa Clarita
November 1995
Page 2
City Benefits
• Meets Long Standing Community Desire for Local
Meeting and Banquet Facilities
• Will Generate New Public Revenue, Including
Transient Occupancy Tax from Related Hotel
Development
• Jobs Creation (Construction and Permanent)
• Development of Public Accommodations and Community
Facilities
Will Foster Business Growth and Accommodate Public
Events
NLF Benefits
• Development Certainty
• Will Augment Community Facilities
Financial Obligations
• NLF will make an investment of approximately $23.6
million (including land and improvements) to'develop the
Conference Center/Hotel.
• City will invest $3.075 million of Federal Economic
Development Administration Funds for the public infrastructure
RISILVER 99999 239537 2
City of Santa Clarita
November , 1995
Page 3
improvements described in Exhibit 1 relating to the development
of the conference Center/Hotel and other commercial projects
within the general area. City agrees to complete the
infrastructure improvements in accordance with a construction
schedule to be agreed upon between City and NLF. If following
the completion of the infrastructure improvements by the City,
NLF decides not to construct the Conference Center, it will
reimburse the City for the cost of the aforementioned
infrastructure improvements not to exceed $3.075 million.
Entitlements Schedule
The Planning Commission will process applications for
approval of a Conditional Use Permit, Minor Use Permit and any
other discretionary approvals that may be required to develop the
Conference Center/Hotel. The Conference Center/Hotel will•be
scheduled for consideration by the Planning Commission as early
as practical following completion of application.
Construction
City and NLF agree to use their respective reasonable
best efforts'to ensure that the Conference Center/Hotel is
constructed and open for business by year end, 1997.
RISILVER 99999 2395372
City of santa Clarita
November , 1995
Page 4
Operations
The operations of the Conference Center/Hotel will be
managed by a hotel operator/partner selected by NLF.
Project Name
The Conference Center will have exterior signage
identifying it as "Santa Clarita Conference Center" and will
include the Hotel's name and.logo.
Community Usage
The hotel operator will work with the City to develop a
schedule to provide a minimum of 12 events per year for use by
the local community of the Conference Center banquet facilities
at prevailing rates. It is the intention of the hotel operator
to make every effort to accommodate requests from the community.
Authority
Each person executing this letter 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
RISILVER 99599 239537 2
City of santa Clarita
November , 1995
Page 5
any other party; however, City acknowledges that final NLF Board
approval will be required and an agreement with a hotel operator/
partner remains to be finalized; and NLF recognizes that land use
entitlements will be processed by the City in accordance with
state law and City's ordinances.
Miscellaneous
Time will be of the essence in the performance of each
of our respective obligations, including entitlement and building
permit processing, the completion of infrastructure construction
and the development and construction of the Conference
Center/Hotel.
This letter agreement sets forth the entire
understanding and agreement of City and NLF with respect to the
Conference Center and Hotel project and there are no oral or
written understandings or agreements that are not contained in
this letter agreement.
Conclusion
Upon execution of this letter, NLF agrees to proceed
diligently with obtaining its Board of Directors' approval, the
selection of a hotel operator/partner, the design and application
RISILVER 99999 239537 2
City of. Santa Clarita
November 1995
Page 6
for approval of the Conference Center/Hotel project and City
agrees to expeditiously process the applications.for approval of
the development and construction of the Conference Center/Hotel
project.
If the foregoing correctly sets forth our understanding,
please sign one copy of this letter and return it to us.
CIArgeA.
L
ARITA
Caravalho
City Manager
THE NEWHALL LAND AND FARMING COMPANY
(A CALIFORNIA LIMITED -PARTNERSHIP), a
California limited partnership
By: NEWHALL MANAGEMENT LIMITED
PARTNERSHIP, a California limited
partnership, Managing Partner
RISILVER 99999 239537 2
By: NEWHALL MANAGEMENT
CORPORATION, a California
corporation, Managing General
Partner
ts•
City Manager Approi
Item to be presented
Ken Pulskamp
UNFINISHED BUSINESS
DATE: November 14,1995
SUBJECT: HOTEL / CONFERENCE CENTER PROPOSAL
DEPARTMENT: Community Development
Based on community interest expressed for meeting and banquet facilities as stated in the
community strategic planning session, the City s Economic Development Division has. been
working to establish a hotel/conference center. In cooperation with Newhall Land and Farming
Company (NLF), a 200 room hotel/ 20,000 square foot conference center development proposal
is being presented for. City Councirs consideration.
The project would create 150 new jobs and generate approximately $32 million in tax revenue
over the next 30 years. A hotel market feasibility study has documented a clear market demand
for the project, and four first class hotel operators have expressed interest in the project.
The City's financial participation in this project would be focused on partial funding of the $8.4
million conference center, using Economic Development Administration (EDA) funds. The
project would meet EDA requirements for completion time lines, job creation, and leveraging
of private funds.
Negotiations are continuing. Any progress made will be presented at the meeting with a
request to continue this item to the November 28th City Council meeting.
emndev\111495.ar1
Agenda Item:? $
CITY OF SANTA CLARITA
INTEROFFICE MEMORANDUM
TO: Mayor Jo Anne Darcy and Members of the City Council
FROM: George A. Caravalho, City Manager
DATE: November 7, 1995
SUBJECT: HOTEL/CONFERENCE CENTER PROPOSAL
Backeround
The City's Strategic Plan has recommended that a meeting and banquet facility be developed
within the City of Santa Clarita. A hotel/conference center development proposal is being
developed in partnership with Newhall Land and Farming Company. An update of this
proposal including a project description, its history, advantages to the City, and current
financial proposals under discussion will be presented.
Recommendation
It is recommended that the City Council receive presentation from staff, solicit public opinion,
and provide direction to staff as to how to proceed with further negotiations.
MH:11
coouecov\title.ed
City Manager Approval
Item to be presented by:
Michael K. Haviland ` /
J
July 11, 1995
Proposed Expenditure of Economic Development Administration (EDA) Funds
Community Development
Following the January 17 Northridge Earthquake, the Economic Development Administration (EDA)
awarded a grant of approximately five (5) million dollars to the City of Santa Clarita for projects that
demonstrate: 1) Leveraging of the EDA dollars; and, 2) show job creation or retention.
The City Council has approved the use of $837,000 in funds to date, which are currently being
processed through EDA's preapplication process. Staff recommendation of projects was based on
the following criteria: 1) Priorities as identified in the City's Strategic Plan; 2) projects which will be
a substantial impact; and 3) projects which meet EDA requirements of being completed in three (3)
years, demonstrating additional leveraging of EDA dollars, creating jobs, and meeting all Federal
requirements for expenditure of Federal funds. The following is a staff preliminary recommendation
for projects which would allocate the remaining four (4) million dollars in EDA funds.
Conference Center - $1,675,000
This would be a joint public/private partnership with the Newhall Land and Farming Company to
construct a hotel/conference center near the Valencia Mall. The City's role would be in an investment
in the conference center portion of the project. Preliminary feasibility discussions are underway. No
agreements have been negotiated or entered into. The public interest for a conference center is
clearly documented in the City's Strategic Plan process.
Princess CruisesfNewhall Ranch Road Improv m n - $1,875,000
A memorandum of agreement would be developed and the City would participate in construction cost
of Newhall Ranch Road up to $1,875,000; if the Newhall Land and Farming Company agrees to
commit $1,875,000 of its funding to subsidize the location of Princess Cruises in Santa Clarita. This
could represent over 1,000 new jobs for Santa Clarita. Construction of the road would be subject
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to the standards of the Davis Bacon Act, and it would be requested that the Newhall Ranch Road
system be owned (dedicated) to the City.
Old Town Newhall Improvements - $320,400
The EDA grant funds must be matched by approximately $500,000. By participating in conjunction
with a tentative proposal for $2,500,000 in CDBG funds for Old Town Newhall earthquake recovery
with $320,400 in EDA funds, the City will meet its "matching" requirement and contribute to the
investment in the revitalization of the Old Town Newhall area. The funds will be used for street
improvement consistent with recommendations of the Old Town Newhall Revitalization Plan.
Staff is currently reviewing alternative investment projects for the Canyon Country area that would
qualify under the EDA guidelines. Various public infrastructure projects such as streets, curbs, and
gutter improvements in conjunction with private development are currently under consideration. No
specific project recommendations are being made at this time.
Because of the time constraints associated with spending these EDA monies, staff has identified a
project that would act as a "back-up" should proceedings on the above projects become halted or
significantly delayed. The project would be an Office/Industrial Development Revolving Loan Fund
to assist new investment into Santa Clarita's office and industrial markets.
It is recommended that the City Council review and discuss staff preliminary recommendations and
provide staff with direction to proceed with the identified projects.
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