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HomeMy WebLinkAbout0488.092, ! I ~ , , f October 29, 1992 HONORABLE CIrV COUNCIL Palo Alto, California / CIVIC CENTER PLAZA IMP~QVEMENTS -INTEREST ON~!SD,OOO DEPOSIT Members of the Council: Report in Br1eJ 6 This report fa~ards to Counctl a Budget Amendmp.nt Ordinance to a110w for ~ayment tf $8,727 of interest on a $150,000 deposit made by Premier Properties representirlg S29 Bryant Street Partners. The deposit was made to f!nsure compretior of (ll(';c Center Plaza imprcliGments as a part of the public benefit for the Planned (orrmunity zone change at 529 Brj'ant Street. Backgroun.d On July 16, 1990, the Council appro,ed a Planned Community (PC) Zone for the ftH'ITIE'T PacTel Building at 529 Bryant Street. The PC zone alTowed for the ground flo~r of the building to be offices instead of the normally required Ground Floor (GF) retail. As a public benefit for the PC lone, the applicant offered to make certain improvements to the Civic Center Plaza that would enhance the pedestrian environmt!nt. The co:;t of the improvements ..... as not to •• ceed $150,000. At the t ime ~he appl icant ..... H ready to occupy the 529 Bryant str€et bui 1di n9, tnt! Plaza improvements were not ready to be implemented. Staff accepted a payment of $150,01)0 on May 20~ 1991 from tnt! dev€loper to b~ used for-the improve.raents with the understanding that the de ... eloper would oversee preparation of the plans and constl'uction. Current Status The improv~ments to t~e Piaza include additional steps up to the Plaza from batt; Ramona and Bryant Streets. :he concept was developed by the Urban Desi'3n Cc~ittee and is in keeping with plans r~viewed by the Architectural Review Board. Construction began August 26. CHR:4BB:91 1: .' Tt.e City does not -ge-nenl1y pay 1nti!rest on sureties or deposits. KoweY~r, staff ;s reco~ndin-g that an except1~n be made in this particular case, due tn thi! p~bl1t benefit derived from the construction deposit. Interest ha:; been calculated ~ased nn the City's calculated rate of retur~ fnr a s~ort·term fnvest~ent over the term of this deposit. Due to some unforeseen construction c.orl!.tr-aints. the C.ost of the project will probably sllghtly exceed the anticipated SI50,000. In addition, it ,ho"ld be noted that any funds left in the deposit account after completion of construction are payable to Premier Properti~s, re~resenting the 529 Bryant Street Partners. ' The attached Budget Amendment Ordinar.ce transfers S8,727 from the Rese,'ve for Capital Projects into the Civic Center Plaza deposit account. That a~ount represents the interest earned through June 30, 1992. farnings fnr the 1992· 93 fiscal year and through tk2 c10sure of the deposit ~ccount when plaza work 1S completed will be made on a monthly basis, as part of the (ity's regular portfolio interest earnings process. Rer:::DftlT!endatiQfl Staff recommends that the Council appro~e the attached Budget Amendment Ordiniilnce~ •• Respectfully submitted, -t: ~f-:i~ ~,tA'Mk--( . lJt-U '.,,, <- J/ _ /-+7 f. i~{~1 /i.?);;J~,?/t II· ..Jt/:{£U,,/ AMES E. GILLILAND KENNETH R. SCHREIBER .n.ge~2~~e~ts -JO£ ';lEMING 0 ~m City Hanag r Director of Planning and Commu~ity Environme~t Attachments: L2tter from Ji~ Baer dated September 2, 1992 Budget Amendme~t Ordinance cc: Plannjng Camrnission Architect~ra' Review Board Jim S;Jer CMR:488: 92 p: \OIr\atlrbllobr 10/29/91 Page 2 • ;.' J-~i,· ': ~. ;.~ ,; -~----,".-. ",.- ~PERRTIES • f5)Ga.~H~~lID \% So? rJ 1992 OEPARTMEI\:T 01= PLA: .. ~11NG CITY OF PALO ALTO M;. Bill Zaner City Manager City of Palo Alto 250 Hamilton Avenue, 7th Floor Palo Alto, CA 94301 September 2, 1992 Re: Civic Center Plaza/Intcrest OD $150,000 Deposit Dear Bill: B0507-903200 The purpose of this letter is to provide a leminder which, hopefuLly, can serve as the basis for a: simpJe staff report to City Council requesting that interest be imputed to the S 150,000 deposited with respect to the Civic Center Plaza step imp=-ovements. which funds were deposited in December 1990 2S pan of the planned community zone change for 529 Bryant Street. 529 Bryant Street Partners \10'3.S required as a condition to itS-PC Ordmance either co complete the Civic Center PLaza steps prior to issuanc~ of an occupancy permit with or to deposit $150,000 as a bond far performing this work The Civic Center Plaza steps were not completed by December 1990 when an occupancy permit for the project was requesu'd. Accordingly, a $150,000 deposit was made. The steps at the Civic Center Plaza were nat completed. both becaLise of the busyness of the applicant in completing 250 University, 529 Bryant Street, and the Parking Lot .: two story 3::!dHio!"., :!.'1d beC"2:.!Se the Ur'b-:m Design Comrr:i!!ee \' .. as nQt i~ ~ pcsiticn to make recommendations with respect to the nature of step improvements fa the Civic 'C:'enter Plaza. Members a! the Planning Staff and J discussed holding off un performing the Civic Center Plaza improvements until a later date. The Civic Center Plaza Sieps are now under construction and only now has it curne to my attention th-3t the $150,000 was not placed i:1to an interest bearing reserve account as i~ the case for typical onsile improvements which are banded by an applicant. It had always been my unders.tanding that the $150,000 was in a separate account which was bearing interest. 1 think it --_._---- °TO CotItact JUn &c:r. Cio W:m-A 1"~. 400 HamillOCI Aorenue, Palo Alto, CalJfornLa '94301·152j . Telephcme:-(41"'i) 32B-(l.~-61. Fax; (4;.5) 3~;·~ r )It Mr. Bill Zaner September 2, 1992 Page 2 is fair to say !hat Jim Gilliland of the Planning Departmenl is. supportive of my position that this offsite bond should nol have been treated any ciff;:rently than o:heT offsite bonds. I reqtJC'st that interest be imputed to the $150,000 as was my e.xpeclalion at the time the $150,000 payment was made, and as Ls the case for other c.::sn perf('rmance bends. I appreciate your wil1ingness to review this matter with the City CounciL e<:' Ken Schreiber Jim Gilliland IWle Fleming Sin-.:uely YO'Jrs. {J-~ James E Baer J : l, , . • ORDINANCE NO. ORDIN1L~CE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING THE BUDGET FOR THE FISCAL YEAR 1992-93 TO PROVIDE FOR lNTEREST EARNINGS ON THE CIVIC CENTER PLAZA DEPOSIT ACCOUNT WHEREAS, pursuant to the provisions of S€:ction 12 of Article ::::11 of the Charter of the City of Palo ".lto, the council en June 22, 1992 did adopt a budget for fiscal year 1992-93; and ~ERF.AS, council approved on July 16, 1990 a Planned conmlUnity (PC) Zone for the former PacTel Building at 5~9 Bryant st.; and WHEREAS, the PC zone allo"wled for the ground floor of the building to be used tor office uses instead of the normally required retail use, the applicant offered to make certaii1_ improvements to the civic Center Plaza to enhance the pedestrian enviror~ent; and ~~ERRAS, the applicant made a deposit of $150,000 on May 20, 1991 to the city to be used to reimburse the applicant for expenditures made to improve Civic Center Plaz8; and WHER:F.AS, the deposit account to date has not been credited with interest earnings; NOW I THEREFORE, the council of the City of Palo Alto does ORDAIN as follows: SECTION_J. The deposit .account for Civic center Plaza improvements is hereby a:.lthorized to be credited .-ith any interest earned .. and the earnings rate is based on the City's rate of return for short-term investments. SECTION 2. The amount of interest that .ill be credited from the time period of May 20, 1991 through June 30, 1992 is $8,727. That amount is hereby transferred to the Civic Center plaza deposit account. and the Reserve for capital Projects is correspondingly decreased. SECTION 3. This transaction .... ill reduce the Roeserve from $10,609,000 to $10,600,273 as of June 3D, 1992. SECTION ___ ..!. Interest earnings from the period after June 30, 1992 shall be credited to the deposit account, and shall continue to be earned by the deposit account until its closure, and shall be based on the City's rate of return for short-term investments. • ~GTIQH-2' The Council of the City of Palo Alto hereby finds that the enactment of thi:s ordinance is not a project "I.lnder the California Environmental Quality Act and, therefore, no environmen­ tal imp&ct assessment is nece5sazy. SECTION 6. Municipal Code, adoption. As provided in Section 2.04.375 of the Palo Alto this ordinance shall become effective upon INTRODUCED A!'IV PASSED: AYES: NOES, ABSTEN'rIONS: ABSENT: I>TTEST: APPROVED: City Clerk Mayor APPROVED AS TO FORM: Sr~ Asst. city Attorney APPROVED: city Manager Director of F1nance D~rector of Planning and co~unlty £nvirQn~ent 92-3,7 ~ • ."