Report Prepared by: Frank Quintero, Director of Economic Development, Office of Economic Development
Title
SUBJECT: Appropriation from the Economic Development Opportunity Fund (074-2002-617-65-00) to Line 074-2002-572-17-00 (Professional Services) for Appraisal and Other Consulting Services
REPORT IN BRIEF
The requested Appropriation transfers a total of $10,000 in funds for appraisal and other consulting services to be used for the Merced Downtown Commons Project.
RECOMMENDATION:
Parking Authority - Adopt a Motion Appropriating $10,000 to Line 074-2002-572-17-00 (Professional Services - Economic Development Opportunities Fund) for appraisals and other consulting services to be used for the Merced Downtown Commons Project.
Body
ALTERNATIVES
1. Approve as recommended by Staff; or,
2. Approve, subject to conditions other than recommended by Staff (identify specific findings and/or conditions amended to be addressed in the motion; or,
3. Deny; or
4. Continue to a future meeting (date and time to be specified in the motion.)
AUTHORITY
Charter of the City of Merced, Section 200
CITY COUNCIL PRIORITIES
As provided for in the 2016-17 Adopted Budget
DISCUSSION
As part of the FY 16-17 budget process, the City Council created a new Fund (074 - Economic Development Opportunity Fund) combining funds from the General Fund ($812,025) and Airport Industrial Park ($1,086,577) for a total of $1,898,602. The Economic Development Opportunity Fund was established in order to take advantage of business development and job creation opportunities.
Currently, the City is taking on business development opportunity through the Merced Downtown Commons project. Requests for Proposals have been issued for the mixed-use (retail, office, and apartment) project, and are due by August 26, 2016. The project calls for the construction of a mixed-use development on a 1.4-acre site bordered by W. 18th Street, N Street, and W. 19th Street. The City owns four (Parking Lots) of the five parcels making up the project site. The parcel not owned by the City is owned by Fluetsch and Busby, Incorporated. One component of the Downtown Commons project calls for the acquisition of the Fluetsch and Busby building. To initiate the purchase of the Fluetsch and Busby building, an appraisal is necessary to establish a fair market value. The appraisal will also consider the value of the parking lots owned by the City of Merced.
Staff is now requesting the transfer of $10,000 to move forward with the appraisal of the Fluetsch and Busby Building and to establish a value for the City-owned parking lots included in the Merced Downtown Commons project. The Downtown Commons project is the City’s first major downtown revitalization project since the dissolution of Redevelopment by the State of California in 2012.
IMPACT ON CITY RESOURCES
Staff recommends appropriating $10,000 from Fund 74 (Economic Development Opportunity Fund) to Line 074-2002-572-17-00 (Professional Services - Economic Development Opportunity Fund) for appraisal and consultant services relative to the Merced Downtown Commons project.
ATTACHMENTS
None