3.0 HRSR 12-07-2015 - Laserfiche WebLink

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i. Purchase Price. CPED Staff shall not recommend a Purchase Price less than the Fair Reuse Value for the proposed redevelopment, unless a Writedown has been deemed appropriate as described in Section (B)(3) below. The Fair Reuse Value may be decreased or increased based on appropriate Fair Market Value valuation methods, such as appraisals or assessor data, which may be negotiated between CPED Staff and the Purchaser. Any such adjustments to the Fair Reuse Value shall be approved by the CPED Appraiser. Contact the CPED Appraiser using the linked form: Request for Reuse Value Opinion ii. Lease Rate. Development Properties must be leased at a rental rate that is based upon the Fair Reuse Value for the specific use for which the Development Property is being leased. The Fair Reuse Value Lease Rate may be reduced in an amount equal to the actual cost of: (i) any non-tenant improvements made by a tenant that permanently improve the Development Property and are customarily the responsibility of the landlord; or(ii) any customary landlord costs or expenses the tenant agrees to assume. Any Lease Rate reduction may not reduce the monthly Lease Rate by more than fifty percent(50%). iii. Writedown. CPED Staff may recommend that a Writedown be given to the Purchaser for a redevelopment proposal where there is a valid public purpose pursuant to the Redevelopment Law, and where the Writedown is necessary for the financial viability of the redevelopment proposal. The amount of the Writedown shall be equal to the value of the public benefit to be received as approved by the City Council. In no event shall a Writedown reduce the Purchase Price or Lease Rate to less than one dollar($1.00). The City may sell, transfer or lease any of its Properties to another governmental entity for any public use by gift or exchange or at any Writedown. CPED Staff shall state the basis for the determination of the Purchase Price or Lease Rate and any Writedown that will be recommended for the redevelopment proposal in the City Council Report regarding the redevelopment proposal and offer. c. Soil Correction Allowance and Escrow i. Determining the Soil Correction Allowance. Where it can be demonstrated that Development Property contains substantial amounts of Unsuitable Soils, CPED Staff may recommend for CPED Director or City Council approval that the Purchaser be given a Soil Correction allowance. Upon such demonstration, CPED Staff shall prepare a Soil Correction Report describing, to the extent the information is available: (i)the nature and extent of the Unsuitable Soils; (ii) the soil tests and other site investigations evidencing the Unsuitable Soils; (iii)the Soil Correction strategy and methods; (iv)the actual or estimated cost of the Soil Correction as evidenced by invoices, bids or estimates; and (v)the recommended amount of the Soil Correction allowance, which allowance amount, along with any Writedowns and other City deductible costs, shall not reduce the Purchase Price to less than one dollar($1.00). CPED Staff shall submit the Soil Correction Report for approval by the CPED Director if the Soil Correction allowance is $100,000.00 or less, or to the City Council for approval if the Soil Correction allowance exceeds $100,000. The Soil Correction allowance shall not exceed the net Purchase Price. The Soil Correction report should be made a part of the Land Sale Report if the information is available at the time of preparation of that report. If the Purchase Price has already been adjusted for known Unsuitable Soils and is being sold on an "as is" basis, the Purchaser shall not be eligible for a Soil Correction allowance. Updated as of 10/6/04 8