The City Manager submitted a report to the City Council regarding six City-owned properties around the Civic Auditorium. The report recommends the Council provide direction on options including taking no action, developing a master plan, declaring the properties surplus, or accepting an unsolicited proposal from developers. Developing the properties could benefit the city economically but may cost over $1 million, while taking no action would have no fiscal impact.
The City Manager submitted a report to the City Council regarding six City-owned properties around the Civic Auditorium. The report recommends the Council provide direction on options including taking no action, developing a master plan, declaring the properties surplus, or accepting an unsolicited proposal from developers. Developing the properties could benefit the city economically but may cost over $1 million, while taking no action would have no fiscal impact.
Original Description:
Presentation from Populous about proposed Civic Auditorium land deal
The City Manager submitted a report to the City Council regarding six City-owned properties around the Civic Auditorium. The report recommends the Council provide direction on options including taking no action, developing a master plan, declaring the properties surplus, or accepting an unsolicited proposal from developers. Developing the properties could benefit the city economically but may cost over $1 million, while taking no action would have no fiscal impact.
The City Manager submitted a report to the City Council regarding six City-owned properties around the Civic Auditorium. The report recommends the Council provide direction on options including taking no action, developing a master plan, declaring the properties surplus, or accepting an unsolicited proposal from developers. Developing the properties could benefit the city economically but may cost over $1 million, while taking no action would have no fiscal impact.
[email protected] SUBJECT: 9.1(e)--Consider report and provide direction to staff regarding City of Redding- owned properties located in and around the Civic Auditorium.
Recommendation
Accept report and provide direction to staff regarding the following option(s) available regarding the City of Redding (City)-owned properties identified as Assessor’s Parcel Numbers 102-040- 015, 102-170-025, 102-170-026, 102-020-015, 102-040-009, and 102-040-013, (otherwise known collectively as City-owned property in and around the Civic Auditorium): (1) Take no action; (2) Direct staff to develop a request for proposals to develop a Master Plan for the area; (3) Direct staff to surplus any or all of the listed parcels pursuant to the regulations set in Government Code 54222, also known as the Surplus Property Act; and (4) Direct staff to develop a request for proposals to sell the properties for development; or (5) Accept and/or provide direction relative to the unsolicited proposal from Populous, K2 Development Companies, Turtle Bay Exploration Park, and the McConnell Foundation.
Fiscal Impact
The fiscal impact is dependent on the direction given by the City Council (Council) and may range from no impact, a potential cost of $1 million or more, or even a net positive as a result of the proceeds from a land sale.
Alternative Action
The Council could provide direction, other than that identified in the recommendation, which may require the item to be agendized at a future meeting.
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Report to Redding City Council September 15, 2021 Re: 9.1(e)--Consider report regarding City-owned properties Page 2
Background/Analysis
The City of Redding (City) received an unsolicited offer for the subject properties from Populous, K2 Development Companies, Turtle Bay Exploration Park, and The McConnell Foundation (The Parties). As recommended by Council Policy 1901, allowed by the “Brown Act,” and established in past practice, the item was scheduled to be considered by the Council in a Closed Session meeting on September 7, 2021. Due to comments received by the community, the Council chose not to consider the item as agendized. During the regularly scheduled meeting, under Agenda Item Number 12, SUGGESTIONS FROM COUNCIL MEMBERS RELATIVE TO POTENTIAL TOPICS FOR FUTURE CITY COUNCIL MEETINGS, the Council directed staff to bring a report to the next council meeting and provide options for the Council’s consideration regarding the subject properties. That is the intent of this report.
As noted above, there are four basic options available to the Council, plus the requirement to declare the property surplus if needed, and they are further described below:
Take no Action
Should the Council decide to take no action, the situation would remain as it is today and no additional work on this topic would proceed. This would not preclude the Council from providing future direction, it simply means at this particular time any efforts would cease.
Direct staff to develop a Request for Proposals to Develop a Master Plan for the area
This direction would result in an RFP being developed for the development of a Master Plan for the area in which the subject properties are located. A Master Plan establishes the creation of a framework in which development of parcels, massing, heights, relationships of buildings, circulation, and streets are defined in enough detail to determine predictable outcomes but with sufficient flexibility to allow various responses of actual developers and designers, of which there may be several or many, within one Master Plan area. Once the Master Plan is completed, the Council would determine whether or not to pursue development of the area in accordance with the Master Plan.
Direct staff to develop a Request for Proposals to sell the properties for development
With this direction, staff would develop a request for proposals (RFP) based on parameters established by the Council. Once developed, the RFP would be presented to the Council for approval or modification. Once approved, the RFP would be advertised, proposals received and evaluated, and the Council would ultimately approve an award of a contract to the successful proposer, or would reject all proposals and provide further direction to staff, as determined necessary. Pursuant to State of California legislation, if this option is pursued, the parcels must be designated surplus by adhering to specific surplus property procedures. The City will need to comply with Government Code Section 54222 as it relates to offering the property to public agencies, and designated developers through the State of California Housing and Community Development (HCD), for purchase prior to proceeding with any further negotiations.
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Report to Redding City Council September 15, 2021 Re: 9.1(e)--Consider report regarding City-owned properties Page 3
Accept or provide direction relative to the submitted proposal from The Parties
The City received the attached, unsolicited, proposal from The Parties. The proposal includes a rough timeline and schedule of activities and events, including stakeholder engagement and development of a Master Plan. The Parties are fully prepared to present the unsolicited proposal to the Council should the Council desire. Any plan to sell any portion of the listed properties would require the City to comply with Government Code Section 54222 prior to any negotiations taking place.
It is important to note that some of the subject properties are encumbered with covenants due to various grants acquired over the years or due to the method in which it was acquired.
Council Priority/City Manager Goals
x Communication and Transparency – “Improve the quality of communication with the
public and City employees to enhance knowledge and increase transparency to improve public trust.” x Government of the 21st Century – “Be relevant and proactive to the opportunities and challenges of today’s residents and workforce. Anticipate the future to make better decisions today.” x Economic Development – “Facilitate and become a catalyst for economic development in Redding to create jobs, retain current businesses and attract new ones, and encourage investment in the community.”
