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 11 OF 13 in this case the City -LRC Cooperation Agreement. For a redevelopment project, the Authority, as an initial step, will develop and approve a project description. Within the redevelopment context, among the powers authorized to the LRC are the powers to negotiate and enter into redevelopment agreements, acquire and dispose of property, provide for improvements to carry out the plan, and undertake other activities. Redevelopment agreements may include contractual provisions intended to carry out the community's objectives in adopting the plan. For example, a redevelopment agreement can establish land use restrictions and covenants; set timelines and deadlines for the commencement or completion of a project or project improvements; establish operating requirements for uses; establish arrangements for acquisition and disposition of property in the area, and detail financial agreements for project costs. If the LRC decides to acquire and then dispose of property, either through eminent domain or voluntary agreement, City Council approval would be needed under the terms of the Urban Renewal Plan. Under the Urban Renewal Law, an urban renewal authority is authorized to dispose of real property in an area to private persons only under reasonable competitive bidding procedures determined by the authority. Under these provisions, a request for proposals (RFP), for which public notice by publication is required, is used to solicit proposals for redevelopment from interested persons. The urban renewal authority then considers the redevelopment proposals received and may negotiate with any person for a redevelopment agreement that includes provisions for acquisition and transfer of property. Under these and related provisions, urban renewal authorities have the power to condemn property to remove blighting title conditions and then transfer the property subject to covenants, conditions and restrictions as are in the public interest or necessary to carry out the plan. As noted above, any redevelopment agreement of the LRC is subject to City Council approval. In sum, if the LRC chooses to pursue a project under which it would acquire and then re- convey the property, typical steps would include development and approval of a project description, issuance of an RFP to solicit proposals for redevelopment, negotiations for a redevelopment agreement, submission of the proposed redevelopment agreement to City Council, and thereafter steps to carry out the redevelopment agreement. Any exercise of eminent domain would require City Council consent; if the LRC is to acquire property and then transfer it to a private party, it must have the fee owner's consent or follow other detailed requirements. City / LRC Cooperation Agreement The City and LRC are parties to a Cooperation Agreement which provides for City Council oversight and cooperation among the parties concerning activities of the LRC. The City and LRC first entered into a Cooperation Agreement in 2006. A copy of the current Cooperation Agreement is attached. The Cooperation Agreement applies to COUNCIL COMMUNICATION 59