City Council Agenda and Packet 2015 09 01

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SUBJECT: 550 SOUTH MCCASLIN BLVD. URBAN RENEWAL PLAN DATE: SEPTEMBER 1, 2015 PAGE 6 OF 13 a. Lot configuration results in former Sam's Club building being narrow and deep with respect to the front entrance, rather than shallow and wide b. Building orientation makes it difficult to partition effectively; resulting spaces would be too narrow and deep for adequate retail layout c. Other non - retail uses that might be compatible with a deep, narrow layout are prohibited 2) Deterioration of site or other improvements: a. Facility is 127,000 square feet with a 600+ car parking lot, requiring significant upkeep expenses b. Currently only used during a small portion of the time by a community church, which does not generate the revenue needed for full maintenance c. Potholes, cracked parking curbs, and other signs of lower maintenance levels are evident 3) Defective or unusual conditions of title rendering the title nonmarketable: a. Restrictive covenants put in place at time of development to limit competition between tenants and sharply limit entertainment uses b. Most notable restriction is that no competing grocer to Albertsons is allowed c. More broad restrictions put in place during sale from Sam's Club to current owners after the store closed; this includes no stores selling a range of merchandise "at a discount" allowed, which is the use the site was originally developed for, and additional restrictions on entertainment uses d. Viable tenants who would fully utilize the property would likely be prevented from doing so 4) The existence of health, safety, or welfare factors requiring high levels of municipal services or substantial physical underutilization or vacancy of sites, buildings, or other improvements. a. Underutilized property b. Parking lot sits mostly empty during normal business hours c. Community Church uses a small portion of the property during only a small portion of the week These blighting conditions limit the ability to re- tenant or redevelop the building for retail purposes. The City Council made a blight determination by approving Resolution No. 60, Series 2014 on October 7, 2014. Council did not give direction at that time to begin preparation of an Urban Renewal Plan to address the blighting factors. The property owner, Centennial Valley and the tenants, Low Cost Furniture and Ascent Church, consented to the blight determination. The City Council directed staff to prepare an Urban Renewal plan for the property on January 20, 2015. COUNCIL COMMUNICATION 54