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CITY COUNCIL AGENDA ITEM NO. 10

Meeting Date: October 28, 2003

Subject/Title: Approve the Sunset Industrial Complex Sales Strategy Criteria Ranking and Preliminary Lot Layout.

Submitted by: Howard Sword, Economic Development Director

Approved by: John Stevenson, City Manager

RECOMMENDATION

Approve the Sunset Industrial Complex Sales Strategy Criteria Ranking and Preliminary Lot Layout Map.

PREVIOUS ACTION

 City Council authorized the purchase of approximately 40 acres of property located at the northeast corner the Tresch and Sunset Roads.

 City Council authorized various consultant contracts to master-plan and prepare environmental documents for approximately 132 acres of city owned land northeast of Tresch and Sunset Roads to include a 49.2 acre Wastewater Treatment Plant, 2.7 acre Solid Waste Plant, 37.7 Sports Park, 13.3 acre Corporation Yard and a 28.4 acre Industrial Complex.

 City Council authorized a consultant contract with McGill Martin Self to prepare infrastructure improvement plan for the Sunset Industrial Complex.

 On June 4, 2002, the Planning Commission certified the Environment Impact Report for the Sunset Industrial Complex, and on June 6 the Notice of Determination was filed with the County.

 On July 23, 2002 the City Council adopted Ordinance 710 approving the PD Zoning for Sunset Industrial Complex, and also awarded the construction contract for the Sunset Industrial Complex Improvements Project (CIP No. 336-3128) to Teichert Construction.

 On November 26, 2002 the City Council approved a sales strategy for property located at the Sunset Industrial Complex and adopt criteria for the selection of successful candidates to purchase the subject property.

 On September 23, 2003 authorize the City Manager to execute a professional services agreement with Carlson Barbee & Gibson, Inc. to prepare a Survey, Tentative Map, Final Map and related work for the Sunset Industrial Complex and amend the CIP Project # 337-3128 budget.

BACKGROUND

The City purchased a 40-acre parcel off Sunset Road in 1999 for the expansion of the adjacent sports complex by 16± acres, and to implement an economic development strategy by zoning the remaining acres for medium industrial land use in the 2001 General Plan update. The City intends to sell parcels within the Sunset Industrial Complex to end-users. The sale revenues to the City will be then used to reimburse the City for its cost of the land, planning, engineering and a portion of the infrastructure improvements. The sales revenues will also reimburse the Redevelopment Agency for paying a portion of the cost of improvements. Therefore, both the City and the Agency expect to receive full reimbursement for their out-of-pocket costs associated with developing the Sunset Industrial Complex as parcels are sold. Any excess receipts from the proceeds of the sales beyond the actual costs shall be shared between the City and Agency in amounts equitable to their contributions.

The project construction improvements are presently 95% complete. Requests for proposals (RFPs), following Council approved guidelines, to purchase property in the Complex have been distributed. Preliminary RFPs have been received that will account for all of the available property if all proposals result in successful sales transactions. The financial capacities of the proposals to complete a successful sales transaction are currently being evaluated.

The Sales Strategy Criteria, approved by City Council November 26, 2002, that considered business location, type, job generation and economic impacts has been evaluated and is reflected in the following table.

Rank
Business Acreage
Allocation 0-36 Possible Points
1 Brentwood Ready Mix 2.5 34 points
2 Town & Country Roofing 3.0 33 points
3 Pizzagoni Towing 1.8 30 points
4 R Brothers Concrete 1.5 29 points
5 Brockman Engineering 2.5 26 points
6 Five Star Plumbing 1.0 24 points
6 Woodmore Painting 1.0 24 points
8 Eco Water 1.15 23 points
9 Thorpe Design 1.0 22 points
10 Henson Plumbing 1.0 20 points
10 HFW Construction Supply 1.0 20 points
10 California Stone 1.0 20 points
10 Cannon Enterprises 1.15 20 points
14 Pottery World 2.0 15 points
Total Acreage 21.7

AA Concrete 2.5 (N/A)*

Total Acreage Requested 25.25 acres
Total Acreage Available 21.70 acres

*Not applicable due to environmental impact considerations.

This ranking was prepared by Economic Development Staff and is recommended by the Economic Development Sub Committee. Staff is particularly pleased that one of the project’s main goals of relocating blighted business properties from the Brentwood Boulevard Corridor has been accomplished through the successful relocation of the Brentwood Ready Mix concrete batch plant and Pizzagoni’s Towing storage yard in the Industrial Complex.

The determination that the AA Concrete batch plant was not an applicable proposal for the Complex was made after consultation with the firm that prepared the Environment Impact Report (EIR) for the project. That consultation resulted in the following opinions.

1. A specific location for a batch plant was studied in the EIR. That location was the farthest possible site from any residential land use. The City has already entered into a sales agreement for that specific site with Brentwood Ready Mix. No other suitable site for a second concrete batch plant was contemplated in the EIR, and the site that was studied is reserved for Brentwood Ready Mix by a legal contract.

2. The EIR did not anticipate more than one concrete batch plant operation and it is doubtful that the document is adequate to support the inclusion of a second batch plant operation.

3. Traffic impacts for the type of trucks and time of day for a batch plant operation are additive and are likely to exceed community acceptance with the addition of a second batch plant.

4. Noise impacts for a batch plant operation are cumulative and are likely to exceed community acceptance with the addition of a second batch plant.

A map showing the preliminary lot layout for the fourteen businesses is attached.

Sunset Industrial Complex Purchase Transactions are expected to proceed according to the following schedule.

• October 28, 2003 Council site selection and priority.
• October 31, 2003 Mail selection letters to Purchasers.
• December 5, 2003 Purchasers to execute and deliver MOU
and 10% Deposit to City.
• December 12, 2003 ED Dept. submittal of Tentative Map
Application to City.
• January 15, 2004 Execute Purchase Agreement.
• February 3, 2004 Planning Commission approval of
Tentative Map.
• February 24, 2004 City Council first reading of ordinance.
• March 9, 2004 City Council second reading of
ordinance.
• April 9, 2004 Final Map recordation.
• April 23, 2004 Close of Escrow.

FISCAL IMPACT

There is no Fiscal Impact to these approvals.

ATTCHMENTS

Exhibit A – Preliminary Lot Layout
 

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