City of Sacramento
City Council - 5PM Report
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www.cityofsacramento.org
File ID: 2023-01355 10/24/2023 Consent Item 10.
Administrative Services Agreement with the Downtown Sacramento Revitalization Corporation (“DSRC”)
File ID: 2023-01355
Location: Central City, District 4, Represented by Councilmember Valenzuela and Mayor Steinberg Recommendation: Pass a Motion: 1) authorizing the City Manager or City Manager’s designee to execute an administrative services agreement with the DSRC; and 2) authorizing the City Manager or the City Manager’s designee to execute one, two-year extension so long as the cumulative amount of the agreement including the two-year extension does not exceed $250,000.
Contact: Denise Malvetti, Deputy Director, (916) 808-7064, [email protected]; Leslie Fritzsche, Community Investment Manager, (916) 808-5450, [email protected], City Manager’s Office of Innovation and Economic Development Presenter: None
Attachments:
1-Description/Analysis
2-Administrative Services Agreement
Additional Description/Analysis
Issue Detail: In November 2004, the City Council consented to the establishment of the DSRC. The DSRC was subsequently formed in December 2004 and received its tax-exempt status in late 2005.
The DSRC is a 501(c)(3) non-profit corporation, and pursuant to its articles of incorporation was formed to lessen the burdens of government by assisting the City of Sacramento and the former Redevelopment Agency of the City of Sacramento to revitalize redevelopment project areas within the Downtown area by owning, acquiring, developing, financing (including but not limited to loaning money in connection with), assisting, leasing, and managing projects in the former River District, Railyards and Merged Downtown redevelopment project areas. The boundaries have since been expanded to include the area bound by the Sacramento River on the West, the American River to the North, Highway 80/Capital City Freeway to the East and Highway 50 to the South.
File ID: 2023-01355 10/24/2023 Consent Item 10.
Shortly after the DSRC was formed, the City and the DSRC entered into an administrative services agreement to have the City provide the DSRC with the following staffing services: general administration, reporting requirements, strategic planning and marketing, and individual project management and coordination. The agreement has been renewed several times since 2005, and the current agreement is set to expire on October 31, 2023. The renewal of this agreement would allow the City’s Office of Innovation and Economic Development staff to continue providing staffing services to the DSRC for the next three years, with the potential to provide services an additional two -year term if DSRC exercises the option to extend the agreement.
Policy Considerations: Partnering with the DSRC aligns with the ScaleUp Sacramento goal to make Sacramento a prosperous place to live, work and play by preparing our region for sustainable, inclusive growth in the “Next Economy,” a dynamic, knowledge-based global economy that thrives on innovation, productivity, and building on its existing assets.
Economic Impacts: None.
Environmental Considerations: Entering into this administrative services agreement does not constitute a project for the purposes of the California Environmental Quality Act (CEQA). (CEQA Guidelines, Cal. Code Regs. tit.14, §15378.)
Sustainability: The DSRC promotes sustainability by focusing on infill opportunities located in the area bound by the Sacramento River on the West, the American River to the North, Highway 80/Capital City Freeway to the East and Highway 50 to the South.
Commission/Committee Action: None.
Rationale for Recommendation: The DSRC was formed to assist the City and former Redevelopment Agency with achieving economic development goals in the former River District, Railyards and Merged Downtown redevelopment areas. The DSRC is currently involved in three City -supported projects, the management of the city-owned Greyhound terminal, as an equity partner in the 700 Block of K Street, and a lender to The Marshall Hotel/Hyatt Centric. With the elimination of redevelopment agencies in the State of California and the limited availability of resources, it is increasingly important for the City to partner with organizations like the DSRC.
Financial Considerations: The administrative services agreement requires the DSRC to reimburse the City for staff time spent working on DSRC activities. The total amount of reimbursement over the initial three-year term is limited to $60,000. The motion also authorizes the City Manager to approve a two-year extension so long as the cumulative amount of the agreement including the two-year extension do not exceed $250,000.
Local Business Enterprise (LBE): Not applicable.
File ID: 2023-01355 10/24/2023 Consent Item 10.