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PURCHASE, SALE, AND DEVELOPMENT AGREEMENT WITH
PELICAN COMMUNITIES, LLC FOR THE SALE OF VACANT
CITY-OWNED LAND LOCATED AT 3911 UNIVERSITY AVE
AND 3775 FAIRMOUNT BLVD, FOR THE DEVELOPMENT OF
A MIXED-USE STUDENT HOUSING PROJECT
City Council
March 19, 2023
Community & Economic Development
Department
RiversideCA.gov
2 BACKGROUND
• August 8, 2017: Council approves surplus of the Property • April 8, 2019: Staff issues a Request for Proposals (RFP) • July 8, 2019: One joint proposal received from Overland Pelican Riverside (OPR) – Affiliate of Pelican Communities LLC • October 9, 2019: during negotiations, AB 1486 signed into law • August 20, 2020: Council Committee provides direction that due to AB 1486; agreement is null and void
• August 21, 2020: Staff issues 60-day Notice per AB 1486 requirements
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3 BACKGROUND
• October 20, 2020 : Staff receives one proposal from OPR in partnership with RCCD
• December 17, 2020: Committee directs staff to negotiate PSDA agreement with OPR
• October 21, 2021: Staff updates Committee recommending a new RFP as RCCD partnership dissolves, Committee directs staff to stay the course with OPR
• June 16, 2022: during negotiations, concerns regarding AB 1486 were raised by OPR
• May 2, 2023: HCD issues written notice approving the
proposal
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4 SUBJECT PROPERTY
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5 DEVELOPMENT PROPOSAL
10% of all beds will be at affordable levels
Housing: 392 student beds – 100,000 sq. ft.
Retail: 12,000 sq. ft.
Office: 16,700 sq. ft.
Library Plaza Café: 1,950 sq. ft.
Parking Garage: 335 spaces
Proposed Project:
$200 - Main Library Parking NegotiatedPurchase Price:
60 public parking stallsLibrary Parking:
$78 MillionEstimated Cost:
200 (Construction)Estimated Jobs Created:
$575,000Estimated Annual
Property Tax Generated:
RiversideCA.gov
6 CONCEPTUAL PLANS
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7 CONCEPTUAL PLANS
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8 CONCEPTUAL PLANS
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9 CONCEPTUAL PLANS
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10 LIBRARY PARKING AGREEMENT
Property Fair Market Value trade for Parking:
– Sales price $200: Appraisal = $1.83M and parking = $3.1M – 60 parking stalls dedicated to main library during operation – Perpetual (Parking) Easement Agreement recorded
– Public parking free for first three hours, to be metered and validated
– Off hour parking use for the public at City rates or higher as determined by buyer based on demand and Agreement
terms
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11 AFFORDABLE STUDENT HOUSING
Project exempt from SLA and AB 1486:
– HCD determination first in the State for Student
Housing
– Buyer wishes to provide affordability component
– 10% of beds shall be at affordable levels = 39 of 392 beds
– Regulatory Agreement in place to ensure
compliance
RiversideCA.gov
12 Strategic Priority 2, Community Well-Being Goal 2.1: facilitate the development of a quality and diverse housing supply that is available and affordable to a wide range of income levels
Strategic Priority 3, Economic Opportunity Goal 3.3: Cultivate a business climate that welcomes innovation, entrepreneurship, and investment Cross-Cutting Threads
STRATEGIC PLAN ALIGNMENT
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13 That the City Council:
1. Approve the Purchase, Sale, and Development Agreement with Pelican Communities, LLC for the sale of City-owned land located at 3911 University Avenue and 3775 Fai rmount Boulevard, identified as Assessor’s Parcel Numbers 214-2 52-019 and 213-261-029, formerly known as the Downtown Terminal Property, for the development of a mixed-use student housing project; and
2. Authorize the City Manager, or his designee, to execute the Agreement with Pelican Communities, LLC, including making minor and non-substantive changes and to sign all documents necessary to complete the transaction.
RECOMMENDATIONS
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