Title
Memorandum of Understanding for Power District Catalyst Project (B)
Explanation
The City Commission designated the CRA as the lead agency, and designated the CRA Director as the Champion for the City's Strategic Initiative 2.3, which involves planning for redevelopment of a portion of real property owned by the City and listed as a GRU asset and located in the general vicinity of Depot Park and the Kelly Power Plant. This Strategic Initiative Project is commonly referred to as the "Power District." A portion of the Power District property is no longer needed for GRU operations, due to the relocation of GRU's operations facilities to the new GRU Eastside Operation Center (EOC) on North Main Street, and can be declared surplus and made available for private ownership and/or use.
At its meeting on November 21, 2011, the CRA Board received a Letter of Intent from Prioria Robotics, Inc. a company interested in occupying a portion of the Power District property approximately located at 555 SE 5th Avenue (Tax Parcel Identification Number 12720-000-000) . The CRA Board authorized the Executive Director to review and analyze the proposed project and negotiate terms and conditions for Prioria's use of certain property within the Power District and bring back a draft mutual letter of intent or other form of agreement for consideration by the CRA Board, subject to approval by the CRA Attorney as to form and legality. The City Commission took similar action at its meeting on November 17, 2011.
Since November 21, CRA, City and GRU management, attorneys and other staff have been meeting to review and analyze an initial catalyst project for the Power District and have identified key actions that must be taken to bring any such project to fruition. The attached draft Memorandum of Understanding (MOU) is the first step outlining key tasks and authorizations to move a catalyst project forward. Under the terms of the MOU, the CRA would act as agent for the City and GRU in changing the land use and zoning of the property and in negotiating with Prioria and other third parties for use/occupancy of the property. In addition, the CRA is being authorized to develop a plan for funding necessary improvements to the property and to make improvements to the property, as may be approved by GRU.
The Power District project is being carried out in accordance with the Downtown Redevelopment Area Plan; Power District redevelopment carries out a number of Initiatives identified in the Redevelopment Plan, particularly those identified under the Economic Development, Commercial & Business Activity, and Urban Form Redevelopment Objectives.
In furtherance of the MOU and the Downtown Redevelopment Area Plan, the CRA staff proposes to fund engineering and design work on the catalyst project site. The initial proposed scope of work will include design criteria as well as preliminary investigation of building envelope stabilization. This work is necessary regardless of the specific end use or occupant. This initial phase of this work is proposed to be carried out under a continuing contract that the City has with Brown & Cullen, Inc. The work will commence immediately and will occur simultaneously with zoning changes, financing arrangements and occupancy negotiations. If financing and occupancy negotiations are successful, future phases of engineering and design work will be necessary to develop construction documents and to address more specific needs of the property and end user. Additional information for design will be brought to the Board in February.
Fiscal Note
The cost for this phase of engineering and design work is estimated not to exceed $50,000. Funding will come from the Downtown budget for GRU/Power District Redevelopment and Downtown Professional Services.
Recommendation
CRA Executive Director to CRA Board: 1) Approve the Memorandum of Understanding between the CRA, the City and GRU, subject to approval as to form and legality by the CRA Attorney; and 2) Appropriate an amount not to exceed $50,000 from the Downtown budget for GRU/Power District Redevelopment and Downtown Professional Services.