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HomeMy WebLinkAbout1999-08-24 - AGENDA REPORTS - CYNCNTRY LIBRARY (2)CITY OF SANTA CLARITA AGENDA REPORT UNFINISHED BUSINESS DATE: August 24, 1999 City Manager Appro, Item to be presented SUBJECT: PROGRESS REPORT ON CANYON COUNTRY LIBRARY LEASE/PURCHASE AGREEMENT BETWEEN TCP MANAGEMENT AND CITY OF SANTA CLARITA DEPARTMENT: City Manager's Office RECOMMENDED ACTION City Council receive progress report on the Canyon Country Library and approve the Lease/Purchase Agreement between TCP Management and the City of Santa Clarita. Authorize the City Manager to execute all documents related to this agreement, subject to City Attorney approval. City Council appropriate $800,000 to account number F3006001-8001 from General Fund fund balance to be used toward the construction costs of the Canyon Country Library. BACKGROUND The issue of library services has been discussed often over the past several months. As the current library facility in Canyon Country is not adequate to serve the needs of the residents, the City Council directed staff to work with the County of Los Angeles on building a new library facility to better serve their needs. At the December 1998 study session, the Council was presented with several options for a new larger Canyon Country library site. As a result of much review and discussion, staff was directed to work with the owner of the property located across from the Edwards Theatre Complex. Staff was also directed to continue working with the County of Los Angeles to work out the details of such a project and to involve the public in the process. The Council was given a progress report on the project February 23, 1999. At that time staff indicated that in order for this project to be successful it would require a partnership between the City, County and Developer. The role of the City in library services and the issue of funding were also discussed. It was determined that in order to expedite the construction of a new facility, the City would have to make a significant contribution from its General Fund and seek reimbursement from the County's Developer Mitigation Fee over time. Over the past six months staff has worked diligently with both the County and Developer on making this project a reality. The following information will provide a progress report on the efforts made since the last presentation. 1� ppCOa Agenda Item:))—I* Deal Points with the Developer: TCP Management, the owner's of the property located across from the Edward's Theatre Complex, were very willing to work with the City to build a new library facility as part of their project. Based on several meetings with the Developer, input from the County, a community meeting, and a meeting with the Canyon Country Beautification sub -committee, preliminary plans for a new Canyon Country Library were created. The proposed library is a 17,000 square foot, freestanding facility. The Developer has agreed to provide a complete turn -key facility. The building will include everything, except books and computers, which the County Library has agreed to provide. As a result of public input several recommendations were incorporated into the plans. For example, an outdoor courtyard area, use of stonework and tiles throughout the project, unique architecture, increased landscaping, and use of water features were added to the design. The City's recently hired architectural firm RRM Design Group also provided input on the project. Their comments included: relocating the entrance of the library; using a strong building base of natural stone with compatible texture and color, as well as different stucco or plaster finish making the library unique from the other buildings on-site. The project was also planned so that it provided transit and pedestrian friendly access. The site and elevation plans were submitted to the Planning Commission on April 20, 1999. The plans were adjusted to accommodate input from the Commission and were resubmitted to the Commission on June 1, 1999, at which time final approval was given for the project and a conditional use permit issued. The proposed library project is estimated to cost approximately $5.1 million. This estimate includes the total cost of building and off-site improvements. The following information will outline the deal negotiated with the Developer to construct this project. The City and Developer have negotiated a lease/purchase agreement for the proposed library. According to the negotiated deal the City will provide funding throughout the construction process as specific milestones are reached (outlined in the Lease/Purchase Agreement). Once the facility is completely constructed the City will have the option to either purchase the facility or enter into a lease agreement with the developer to lease the facility. If the City chooses not to purchase the facility, the monies provided throughout the construction process would be credited towards the lease cost. The City would pay all costs listed above to the Developer and seek reimbursement from the County as described below. This project is estimated to take approximately 18 months to be constructed. The City anticipates an opening of the Canyon Country Library early 2001. Deal Points with the County. The City and County are still in the process of finalizing a reimbursement and operations agreement. At this time the County has agreed to move into the new library facility and occupy 10,000 square feet of space. This would double the space currently available at the existing Canyon Country Library. The County would provide an estimated timeline for occupying the remaining 7,000 square feet. The County has agreed to utilize the Library Developer Mitigation Fee to reimburse the City the cost of the new facility. It should be noted that the Developer Mitigation Fee is dependent upon development within the Canyon Country service area and it could take several years for the City to be fully repaid. The County will provide an estimated payback schedule based on what is known at this time. The County will operate the 10,000 square foot facility and provide all the necessary staffing. The County will also supply the new facility with books, computers, etc. to the extent possible. In terms of maintenance responsibilities, the City will maintain the outside of the building and the County will maintain the inside of the building. The City has agreed to enact a City-wide Library Developer Mitigation Fee within the City of Santa Clarita. Currently the fee is only collected in the County area. The Fee ordinance is expected to be presented to Council in late September 1999. Once the City begins collecting this fee it will be used to repay the City's General Fund for the cost of the library. The City and County have agreed that the unused portion of the library facility (7,000 square feet) will be made available to the City. The City will make this space available for leasing which will generate revenue to help offset maintenance costs. Although much progress has been made in coming to agreement with the County, there are still a few issues which are yet to be resolved. The most significant issue is ownership of the facility. It is anticipated that the City and County will reach an agreement on all outstanding issues over the next two months. Once agreement is reached, a formal MOU with the County will be presented to the Council for approval. FINANCIAL IMPACT The total project costs is estimated at $5.1 million. The City would make contributions to the project on a periodic basis based on development milestones. Currently $200,000 of City general fund money is allocated to this project. It is estimated that $1 million will be needed by December 1999, therefore staff is requesting that the additional $800,000 be allocated at this time. Staff will seek the additional funding through the midyear budget process. ALTERNATIVE ACTIONS 1. City Council decides not to proceed with the construction of a new library facility at the designated location. 2. Other action as determined by Council. ATTACHMENT Lease/Purchase Agreement between TCP Management and the City of Santa Clarita S/ms 1 ken 1 hbagn.d.d"