HomeMy WebLinkAbout2007-01-09 - AGENDA REPORTS - AMERICAN RETAIL DEV MOU (2)NEW BUSINESS
DATE:
SUBJECT:
DEPARTMENT:
Agenda Item: _ /K�
CITY OF SANTA CLARITA
AGENDA REPORT
City Manager Approval
Item to be presented by:
January 9, 2007
Paul Brotzman/
MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY
AND AMERICAN RETAIL DEVELOPMENTS
Community Development
RECOMMENDED ACTION
City Council direct the City Manager to execute the MOU between the City of Santa Clarita and
American Retail Developments subject to the City Attorney review.
BACKGROUND
Over the past year, the City had been in preliminary discussions with a large retail user regarding
the construction of one of their facilities on a 20 -acre site east of Interstate 5 and north of
California Route 126/Newhall Ranch Road and south of Biscailuz Drive near the Pitchess
Detention Center. The development of the site would have required acquisition of land from the
Southern California Gas Company for access and parking. During these discussions, the property
was sold to American Retail Developments (ARD). Upon hearing the discussions that had
previously occurred regarding the project site, the new property owner continued these
discussions with the City with the understanding that the development would include a
commercial development that would generate a large amount of sales tax. This MOU is the next
logical progression in these discussions. It is important to note that the MOU requires any future
development of this property to generate a minimum of $500,000 in sales tax revenue annually
for the City to proceed with the activities outlined in the MOU.
The MOU focuses on the acquisition of a superior access from the exiting intersection of
northbound Interstate 5 off ramp and California Route 126 intersection as opposed to the existing
access from the entrance to the Pitchess Detention Center. This would involve the participation
of Caltrans to modify their recently completed interchange and the Gas Company which would
allow the City to acquire portions of the existing site for access and parking for the site. The City
would need to establish a Community Facilities District to fund the purchase and development of
these facilities.
In exchange, the City would suspend the processing of the Planned Development (PD) overlay
zone on the project site which was continued on the City Council agenda in October.
ALTERNATIVE ACTIONS
1. Deny the request for an MOU between the City and ARD and direct staff to move
forward with PD Overlay zone for the project area.
2. Modify the MOU to include additional deal points.
3. Any other action as determined by the City Council
FISCAL IMPACT
The fiscal impacts of the project are not known at this time. If the MOU is the catalyst for a large
retail development occurring on the project site, there could be an increase to the City's General
Fund from sales tax generated at the project site. However, there will be a significant staff time
cost associated with the implementation of this agreement.
ATTACHMENTS
Memorandum of Understanding Between the City and American Retail Developments