CDC - Item 4A - Manario Realty Exclusive Negotiating Agreementi •
ROSEMEAD COMMUNITY
DEVELOPMENT COMMISSION
STAFF REPORT
TO: HONORABLE CHAIRMAN AND COMMISSION MEMBERS
FROM: OLIVER CHI, INTERIM CITY MANAGER
DATE: AUGUST 14, 2007
SUBJECT: MANARINO REALTY EXCLUSIVE NEGOTIATING AGREEMENT
SUMMARY
On November 28, 2006, the Community Development Commission approved an Exclusive
Negotiating Agreement (ENA) with Manarino Realty for the development of the 6-acre site
located at the northeast corner of Temple City and Valley Boulevards. The ENA provided an
initial six month time period within which the Commission and Mr. Manarino would work to
develop a development agreement setting forth the specific terms related to project economics
including any proposed subsidy, property acquisition, and development of the 6-acre site.
Based upon the progress made over the initial six month period, Mr. Manarino requested a 45-
day extension (which was included in his original ENA with City) to finalize the project deal
points before presenting them to the Commission.
Over the last 45 days, Mr. Manarino presented staff with a list of deal points (Attachment A) that
would require the City to take the lead role in property acquisition and included a preliminary
project proforma showing a multi-million dollar subsidy from the City to pay for property
acquisition and other expenses related to attracting desired retailers, restaurants, and grocery
uses to this site.
Based on that assessment, staff believes that the high land values and costs of assemblage
would make it difficult to complete the project without a large subsidy from the City. While Mr.
Manarino has made significant progress over the last several months, staff does not believe that
the City is in a financial position to be able to provide a subsidy of that magnitude.
Staff Recommendation
Staff recommends the Community Development Commission allow the ENA between the
Commission and Manarino Realty to expire and entertain any new development proposals for
the site at the northeast corner of Temple City and Valley Boulevards as they arise.
APPROVED FOR CITY COUNCIL AGENDA:
•
Community Development Commission
August 14, 2007
Paae 2 of 2
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
Prepared by: ~~~u9
' 4x K
Michelle G. Ramirez
Economic Development Administrator
Submi
B n eki
Interim Community Development Director
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Brian.
Generally we have to collectively take a very hard look at the assemblage. We
have made no real time progress with the assemblage due mostly to absentee
owners, extremely high prices orjust general disregard by the property owners
to participate or cooperate. Therefore I would propose the following:
1. Agency take the lead on the assemblage
2. Agency to sell the land to Developer at a land residual to provide for a 10%>
return on cost. This will require a subsidy in the tens of millions.
s. A DDA reflecting the Agency's assemblage and economic participation and
the Developer's responsibility to provide a grocer and a drug store lease
should be drafted by the Agency staff:
5. Design and architecture to be mutually agreed upon during the process.
This is just a general response in an effort to get the process going.
All the best.
Bob
MANAFLIN,O ! REALTY
Bob Manarino
President
8105 Irvine Center Drive
Suite 1110, Irvine, CA 92618
p 949.748.7800
f 949.748.7807
BobN4anarino@MaiiariiloRealty.com