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Current Council Agenda and Past Meeting Information

 

CITY COUNCIL AGENDA ITEM NO. 5

Meeting Date: September 28, 2004

Subject/Title: Approve the selection of a purchase proposal for Lot 4 at Sunset Industrial Complex based on Council-approved Sales Strategy Criteria Ranking

Prepared by: Gina Rozenski, Redevelopment Manager

Submitted by: Howard Sword, Economic Development Director

RECOMMENDATION
Approve the selection of a purchase proposal for Lot 4 at Sunset Industrial Complex based on Council-approved Sales Strategy Criteria Ranking.

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.

 On October 28, 2003, the City Council approved the Sunset Industrial Complex sales strategy criteria ranking and preliminary lot layout which included the cul-de-sac site plan.

 On November 25, 2003, the City Council and Redevelopment Agency approved resolutions amending the Reimbursement Agreement between the Brentwood Redevelopment Agency and the City of Brentwood for an additional $728,000 to fund construction of cul-de-sac improvements and traffic signal improvements for the Sunset Industrial Complex.

 On January 27, 2004, the City Council amended Planned Development Zone 56 to allow for an increase in the square footage designated for retail uses with Subareas A and B, and to allow smaller lot sizes in Subarea C, in the Sunset Industrial Complex.

 On April 2, 2004, the first Final Map for Subdivision 8588 was recorded.

 On April 13, 2004, the City Council approved the Purchase Agreements for the first phase of sales.

 On June 7, 2004, the second Final Map for Subdivision 8842 was recorded.

 From April 2004 to September 2004, twelve escrows closed.

 On September 14, 2004, the City Council approved the configuration for subdividing the northerly portion of Sunset Industrial Complex.

BACKGROUND
The City purchased a 40-acre parcel off Sunset Road in 1999 for the expansion of the adjacent sports complex by 13± 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.

One of the purchasers dropped out of the first phase of sales, leaving a 1.0 acre site available, identified Lot 4 on the attached map. A sales offering to purchase the 1.0 acre site was distributed to 13 interested parties on July 20, 2004. Four purchase proposals were received, and ranked in accordance with the Sales Strategy Criteria, approved by City Council November 26, 2002, that considered business location, type, job generation and economic impacts. The evaluation of the four proposals is reflected in the following table.

Rank
Business Acreage
Allocation 0-36 Possible Points
1 Vornhagen Body and Paint 1.0 35 points
2 Kendall Auto Repair 1.0 35 points
3 ASAP Glass 1.0 28 points
4 Tidelands Construction 1.0 22 points

This ranking was prepared by Economic Development Staff. The Economic Development Subcommittee recommends the selection of Vornhagen Body & Paint as the successful candidate. The Subcommittee felt that the site constraints and parking congestion at Harvest Business Park impacts the feasibility of Vornhagen expanding his business at the current site. By relocating Vornhagen’s business to Sunset Industrial Complex, expansion opportunities are achieved at a site that will permit a higher density use, and the existing site could be re-used for a less intensive use, thereby easing the congestion at Harvest Business Park. The Subcommittee also felt that an auto body shop is driven by market forces such as insurance work rather than street exposure, while an independent auto repair shop may rely, in part, on street exposure, not available at Sunset Industrial Complex, for a successful business operation.

FISCAL IMPACT
There is no fiscal impact to this approval. The purchase agreement will be brought to the Council for approval at a later date.

Attachments:
1) Sales Strategy Criteria
2) Lot Layout identifying Lot 4

SUNSET INDUSTRIAL COMPLEX
SALES STRATEGY CRITERIA
(36 possible points)

Existing Business Location Priorities (8 Possible Points)

 Relocation from Brentwood Redevelopment Agency’s Project Areas (map enclosed). (8 Points)

 Relocation from the City of Brentwood. (5 Points)

 Relocation of businesses that have moved out of Brentwood within the past four years due to the lack of a suitable building site in the City. (5 Points)

 Relocation from unincorporated areas surrounding the City of Brentwood as defined by the attached map listed as Figure 2 and titled Brentwood Planning Area in the Brentwood General Plan, 2001 – 2021. (3 Points)

 Relocation from Far East Contra Costa County as defined as lands to the south and east of Somersville Road. (1 Point)

Business Types (5 Possible Points)

 Industrial business operations not conducive or desirable in business or high tech parks. (5 Points)

 Business with limited permitted locations in Brentwood. (4 Points)

 Business providing support services not available to local businesses. (3 Points)

Business Operation (8 Possible Points)

 Owner-occupied business that will conduct primary operation from the property. (8 Points)

 Business with long term pre-lease that accomplishes other criteria objectives. (5 Points)

 Business that will conduct satellite operation from the Site. (3 Points)

Employment Impact (5 Possible Points)

 Number of jobs that are reported to the State Franchise Tax Board as located in the City of Brentwood. (0 - 5 Points Possible)

Fiscal Impact (10 Possible Points)

 Sales tax generated by business. (0 - 5 Points Possible)

 Property tax increment generated by improvements to the property. (0 - 5 Points Possible)
 

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Brentwood, CA 94513
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