RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RIVERSIDE, CALIFORNIA, AS SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF RIVERSIDE, REAFFIRMING APPROVAL FOR THE SUCCESSOR AGENCY TO EXTEND THE LEASEBACK AGREEMENT WITH THE STATE OF CALIFORNIA - DEPARTMENT OF GENERAL SERVICES TO LEASE THE CALIFORNIA TOWER BUILDING - GROUND FLOOR RETAIL, LOCATED AT 3737 MAIN STREET, FOR AN ADDITIONAL TEN YEARS, FROM OCTOBER 1, 2024 THROUGH SEPTEMBER 30, 2034, AS APPROVED IN THE SUCCESSOR AGENCY’S LONG-RANGE PROPERTY MANAGEMENT PLAN.
WHEREAS, pursuant to Resolution No. 22322, adopted by the City Council of the City of Riverside (“City”) on January 10, 2012, the City of Riverside agreed to serve as the Successor Agency (“Successor Agency”) to the Redevelopment Agency of the City of Riverside (“RDA”), commencing upon dissolution of the Redevelopment Agency on February 1, 2012, pursuant to Assembly Bill X1 26 (“AB 26” – “Dissolution Act”); and WHEREAS, Health and Safety Code Section 34191.3 mandates that the long-range property management plan once approved by the State of California – Department of Finance (“DOF”), will govern and supersede all other provisions of the Dissolution Act in association with the disposition and use of the real properties and other assets of the former RDA; and WHEREAS, the Successor Agency is required to follow the approved plan in the implementation of the former RDA’s enforceable obligations; and WHEREAS, Health and Safety Code Section 34177(i) provides that a successor agency is required to continue to oversee development of the former RDA’s properties until the contracted work has been completed or the contractual obligations of the former RDA can be transferred to other parties; and WHEREAS, on April 26, 1994, the former RDA entered into a lease agreement (“Lease Agreement”) with the State of California – Department of General Services (“DGS”) to lease the entire 1.2-acre parcel with 160,000-square-foot office tower and approximately 22,400 square feet of ground floor retail and office space (“Ground Floor”), located at 3737 Main Street, commonly known as “California Tower” (“Property”), for the term of 30 years; and WHEREAS, the former RDA and DGS also entered into a Leaseback Agreement (“Leaseback Agreement”) in which the former RDA leases back from DGS the Ground Floor for the same term of 30 years; and WHEREAS, the key provisions of the Lease Agreement and Leaseback Agreement are as follows:
DGS may assume ownership of the California Tower at the conclusion of the Lease Agreement, on October 1, 2024, for One Dollar ($1.00) (Option to Purchase) as shown in Attachment 3 of the staff report.
DGS may purchase the California Tower prior to 2024, but the State would be required to repay the bonds that were issued in 1994 to fund the purchase and improvement of the Property.
RDA has an option to extend the Leaseback Agreement for an additional ten years, which would extend the Leaseback Agreement until October 1, 2034 (Option to Extend) as shown in Attachment 3 of the staff report.
RDA is responsible for the operation, ordinary and extraordinary maintenance and repairs, and leasing and funding of tenant improvements associated with the Ground Floor; and WHEREAS, the expiration of both the Lease Agreement and Leaseback Agreement is September 30, 2024; and WHEREAS, pursuant to Assembly Bill (“AB 1484”) and Health and Safety Code Section 34191.5(c)(2), the Successor Agency prepared a draft Long-Range Property Management Plan, dated February 25, 2014, for the disposition of the former RDA real properties and other assets, which included the Property; and WHEREAS, on March 6, 2014, the DOF approved the Successor Agency’s Long-Range Property Management Plan (“LRPMP”) and in its determination letter, the DOF reaffirmed the approval of the use and disposition of all the former RDA’s real properties and other assets (“Approved LRPMP”); and WHEREAS, pursuant to the Approved LRPMP and the Leaseback Agreement, the Ground Floor of the Property is currently leased by the Successor Agency from DGS; and WHEREAS, pursuant to the Approved LRPMP and the Leaseback Agreement, the Successor Agency may, among other things, lease vacant spaces on the Ground Floor of the Property to commercial tenants; and
WHEREAS, pursuant to the Approved LRPMP and Section 17 of the Leaseback Agreement, the Successor Agency has the right to extend the term of the Leaseback Agreement for an additional ten (10) years, which would cause the term to expire on September 30, 2034; and WHEREAS, pursuant to Health and Safety Code Section 34191.3, once the Approved LRPMP was approved by DOF, this document governs and supersedes all other provisions of the Dissolution Act in association with the disposition and use of the real properties and other assets of the former RDA and the Successor Agency is required to follow the Approved LRPMP in the implementation of the former RDA’s enforceable obligations; and WHEREAS, to maximize the community benefits and implement the planning objectives for which properties were original acquired by the RDA, the Successor Agency desires to execute the Option to Extend the Leaseback Agreement as approved by all the approval bodies, which includes the Successor Agency, the Oversight Board, the Countywide Oversight Board, and the DOF.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Riverside, California, as the Successor Agency to the Redevelopment Agency of the City of Riverside, as follows:
Section 1. The above recitals are incorporated herein as if set forth herein in full.
Section 2. It is in the best interest of the Successor Agency to exercise its Option to Extend the Leaseback Agreement with the State of California - Department of General Services, to lease the Ground Floor located at 3737 Main Street, commonly known as “California Tower”, from October 1, 2024 through September 30, 2034.
Section 3. That the City Manager, or his designee, acting on behalf of the Successor Agency, is authorized to execute the Option to Extend the Leaseback Agreement with the State of California - Department of General Services, and any other documents that may be necessary and appropriate to carry out the intent of this Resolution.
ADOPTED by the City Council as the Successor Agency, this _________ day of _____________, 2023. ___________________________
PATRICIAL LOCK DAWSON
Mayor of the City of Riverside
Attest:
_____________________________
DONESIA GAUSE
City Clerk of the City of Riverside
I, Donesia Gause, City Clerk of the City of Riverside, California, acting as the Secretary of the Successor Agency to the Redevelopment Agency of the City of Riverside, hereby certify that the foregoing resolution was duly and regularly adopted at a meeting of the City Council of said City, acting as the Secretary of the Successor Agency to the Redevelopment Agency of the City of Riverside, at its meeting held on the _________ day of _____________, 2023, by the following vote, to wit:
Ayes:
Noes:
Absent:
Abstain:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Riverside, California, this ________ day of ______________, 2023. _________________________________
DONESIA GAUSE
City Clerk of the City
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