Item #12
Date: February 7, 2023
To: Mayor and City Council
From: Dan Flores, Community Development Director
Jim Schaad, City Manager
Subject: Disposition and Development Agreement for the B Street Property Recommendation:
Pass a Motion to authorize the City Manager, or designee, to execute the Disposition and Development Agreement (DDA) with Engstrom Properties, Inc. and Presidio Companies, LLC (the Developers) for the B Street location.
Rationale for Recommendation:
The rationale for this agreement is to facilitate the sale and development of real property located on City Owned B Street property located between 12th and 14th Streets in Marysville.
Background:
The Developers were selected by the City, through an RFP selection process, to submit a DDA outlining their proposed development.
Discussion & Analysis:
CEQA Exemption
The project qualifies for an exemption from the California Environmental Quality Act (CEQA) per Section 153332 of the CEQA Guidelines, the Class 32 “Infill Development” Categorical Exemption exempts the construction of infill development from CEQA review provided that the development is consistent with the zoning and General Plan designations, occurs within city limits, is served by public utilities, and doesn’t result in significant effects relating to traffic, noise, air quality and water quality. Staff feels that this project, as conditioned, meets the requirements of this statutory exemption.
DDA
The developers intend to acquire the site from the City for the purpose of developing a hotel, banquet hall, restaurant, and grocery store. The project is described an attachment with the staff report. The sale and development of the site is in the best interest of the City and its residents in accordance with the public purpose and provisions of law. The site consists of approximately 5 acres and is described in detail in the Development Agreement. The City will sell the site to the developer for $1.26 million. The developer is required to relocate the Veterans Memorial bench on the site to an alternate location identified by the City. The City will also be entitled to schedule up to three events per year in the banquet hall, located in the hotel. The developer will pay a negotiated impact fees as described in Section 3.15 of Item #12
the Development Agreement. All the specific details regarding the sale and development of the site are spelled out in the attached Disposition and Development Agreement.
Financial Impact
The City will receive $1,260,000 for the sale of the property with the possibility of expenditures of up to $260,000 for off-site improvements. The City will also receive $225,000 in impact fees as mitigation for impacts of the project.
Legal Review:
The City Attorney has reviewed and approved the recommended CEQA exemption and DDA.
Alignment with City Council Goal(s):
Goal #2: Expand Economic Development.
Attachment:
1) Disposition and Development Agreement