- Initial Contact
- Preliminary Review
- Basic Concept Approval
- Exclusive Negotiations
- Competing Proposal
- Attainment of Agency Goals
- Development Review Process
- Development Agreement Negotiation
- Contact Information
- Partner Websites
The initial interaction between the Successor Agency formerly known as the Community Redevelopment Agency staff and prospective developers shall involve a general orientation to project plans, Agency goals and development opportunities. Additionally, the statutory role of the Agency in directing and implementing the plan is to be explained to the prospective developer. If the developer elects to proceed, a letter addressed to the Agency's Executive Director shall be required and shall include the following:
a) Indication of development interest and request for basic concept approval
b) Scope of development, including square footage totals, use and number of parking spaces
c) Estimated development value (by square foot for land use subtotal
d) Tangible benefits including jobs, sales taxes and property taxes accruing to the Agency
e) Summary of developer qualifications, including other members of the development team
f) Development financial pro forma
g) Summary of financial commitments and capabilities for the projects
h) Location/site plans
i) Conceptual elevation views
j) Typical or illustrative floor plans
k) Participation requested from Agency
l) List of any and all projects developed
Once a letter of interest is received, it is reviewed by the Successor Agency formerly known as the Community Redevelopment Agency, Planning Department, Public Works Department, and other departments for completeness and for consistency with project goals, objectives and financial feasibility. The letter along with the accompanying materials is then presented to the UCDC (Urban Community Development Corporation) for basic concept approval.
Basic Concept Approval is an indication from the Agency that the land use and concept proposed are desirable; however, it is not an exclusive right to negotiate. If Basic Concept Approval is granted, affected property owners, if any, are notified of the development interest and afforded a (60 day) period to submit their own proposals for development of their property.
In the absence of competing proposals or if the commission elects to proceed with a developer on exclusive basis, the developer shall submit additional information to staff for evaluation including:
a) Corporate and individual tax returns for the past three (3) years
b) Name and address of bank and bank officer where redeveloper conducts business
c) Identification of collateral and/or personal/corporate guarantees pledged to project
d) List of tenant commitments and any evidence thereof including letters and lease agreements
e) Permission to obtain law enforcement profile and
f) Indication as to whether corporation or principals have ever filed bankruptcy
After staff reviews the additional information for completeness, the entire proposal consisting of all submissions shall be forwarded to UCDC for consideration of an Exclusive Negotiation Agreement. Staff shall recommend a term for said exclusive negotiations that will lead to a Disposition and Development Agreement or an Owner Participation Agreement. A good faith deposit shall be required from the developer in an amount based on the following schedule:
Developer shall be required to deposit 5% of the Fair Market Value of the proposed site for the first $1,000,000 of the Fair Market Value. Thereafter, Developer shall pay an additional 1% of the Fair Market Value as deposit for any amount above the first $1,000,000 of Fair Market Value.
During the exclusive negotiation period staff shall pursue contract discussions and prepare legally required economic and environmental review documents. Only a Disposition and Development Agreement (DDA) or Owner Participation Agreement (OPA) shall contractually obligate both the Agency and developer to the project.
It is possible for two or more proposals to receive Basic Concept Approval and compete for the same site. Under such a circumstance, the Commission shall authorize staff to initiate a Developer Selection Committee consisting of representatives from other city departments. Each developer is to be notified that a selection process will be undertaken and afforded the opportunity to participate on a competitive basis. The assigned staff person will develop evaluation criteria to numerically rank each project. The developers will be informed of the criteria, the date, time and place to make their presentation. The evaluation criteria shall include, but not be limited to the following:
a. Development team qualifications
b. Project concept and architectural design features
c. Timing
d. Tenant potential
e. Agency financial requirements and benefits
Each developer's concept and associated documentation shall be provided to selection committee members for review prior to the selection interviews. If the committee requires additional information to aid the decision-making process, this request shall be forwarded to the developer. Upon conclusion of the selection process, the selection committee shall render its ranking for UCDC consideration.
Each proposal is considered proprietary and shall not be shared with competing interests. Prospective developer shall not be provided an opportunity to view their competitor's proposal during the committee's review.
In order to attain the goals of the project area, the Agency reserves the right to issue: Requests for Proposals (RFP), Request for Qualifications (RFQ) and otherwise market project area sites for development. This may be done even if a proposal exists for a site and has been granted basic concept approval. The Agency further reserves the right to reject all proposals if the Commission determines such proposals will not satisfactorily fulfill the goals of the Agency.
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DEVELOPMENT AGREEMENT NEGOTIATION
Following developer selection and the execution of an Exclusive Negotiation Agreement, staff will commence negotiation of a Disposition and Development Agreement (DDA) or Owner Participation Agreement (OPA). Copies of the conceptual plans shall be routed to various city departments for review and comment. The developer proforma shall be reviewed by staff and/or an economic consultant to obtain a land reuse value analysis. Staff shall initiate the necessary environment review in compliance with applicable environmental laws.
Once the terms of development are agreed upon, a contract is prepared and taken under consideration by the Agency and City Council. Approval of the development agreement is accomplished through a public hearing, whereby a public notice of the sale of land by the Agency to the developer is given. If the developer owns the entire site, a joint public hearing is not required and all documents are approved by the UCDC.
After execution, the DDA or OPA shall serve to direct future Agency/Developer relationships. Each party shall perform responsibilities according to schedule assigned in the contract. Upon fulfillment of all contract provisions, a Certificate of Completion shall be recorded as evidence of project compliance with the Redevelopment Plan.
The Successor Agency formerly known as the Community Redevelopment Agency
205 S. Willowbrook Avenue
Compton, CA 90220
(310) 605-5511
7:00 am – 6:00 pm
Monday through Thursday
Director: Kofi Sefa-Boakye
US Department of Housing and Urban Development: www.hud.gov
City of Compton Public Works: www.comptoncity.org
