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