The Agency and the City are continuing implementation of the Victorian Square Development Plan (the “Redevelopment Plan”), a part of the Town Center 2000 Amended Redevelopment Plan as most recently amended by the Second Amendment adopted on February 9, 2015.

The Redevelopment Plan calls for reconfiguration of parcels in the area formerly between 12^th and 13^th Streets and between Victorian Avenue (formerly B Street) and Avenue of the Oaks (formerly C Street).  The parcels within this area are located north and south of the alley alignment between Victorian Avenue and Avenue of the Oaks (the “B/C Alley Alignment”). Implementation of the Redevelopment Plan required the acquisition of property to provide the public right-of-way needed for the street couplet bordering the Victorian Square Plaza (the “Plaza”) to place into the ownership of the City the land needed to modify the Plaza and for property to be exchanged with the former (Sparks Nugget, Inc.) and current (Wolfhound Holdings, LLC) owners of the Sparks Nugget to reconfigure parcel boundaries as called for in the Redevelopment Plan.

In 2008, the Agency acquired the parcel identified as Washoe County Assessor’s Parcel Number 032-136-11 from Pacific Pawnbrokers and, in 2010, acquired APN 032-136-06 from Victorian Partners LLC for these purposes.  The parcels north of the B/C Alley Alignment and south of Avenue of the Oaks in the area formerly between 12^th and 13^th Streets were consequently reconfigured in 2010 by Parcel Map No. 5024.

In December of 2014, in furtherance of the Redevelopment Plan, the City and Agency entered into an Exclusive Negotiating Agreement (ENA) with Silverwing Development that provides for Silverwing to acquire up to nine parcels from the Agency for residential and mixed-use development.  As part of the ENA, the Agency agreed to seek to acquire, through an exchange, a parcel owned by Wolfhound with APN 032-135-14 (the “Wolfhound Parcel”).  Agency acquisition of the Wolfhound Parcel, and subsequent sale to Silverwing Development, would allow for Silverwing to incorporate the parcel into its proposed Fountainhouse project.

The City and Redevelopment Agency now propose to enter into the Victorian Square Property Exchange Agreement (the “Agreement”) with Wolfhound Holdings, LLC involving property in the Victorian Square area.

The exchange involves the Agency’s acquisition of the Wolfhound Parcel to complete land assembly for a site proposed for redevelopment as a multi-family residential and mixed-use project.  Under NRS 279.486, the Agency must obtain the consent of the City Council and before the City Council may give its consent, it must find (1) that the property being acquired is of benefit to the redevelopment area and (2) no other reasonable means of financing the land are available.

The exchange also involves the disposition of a parcel at the southwest corner of Victorian Avenue and Victorian Square Plaza to be created in part from a parcel owned by the Redevelopment Agency with APN 032-136-11.  Because APN 032-136-11 was acquired in part with funds from the Redevelopment Revolving Account, under NRS 279.630(3) the Agency must obtain the consent of the City Council to sell it.  The consent must be by resolution, following a public hearing upon notice that must be published at least once a week for two weeks.  Such notice has been published.

The actions necessary to implement the agreement include the reconfiguration of parcel boundaries, which requires a future City Council approval and recordation of a parcel map (see Exhibit 1 of the Agreement) in the area along and including the Plaza between Victorian Avenue and Avenue of the Oaks.  To do so, the City will first need to vacate public right-of-way – also to be considered by the City Council at a future meeting – that would be incorporated into the new parcels, identified as parcels I and J on the merger and resubdivision parcel map (the “Parcel Map”, attached as Exhibit 1 to the Agreement).  Parcel J, which is to be created largely from the Wolfhound Holdings parcel with APN 032-136-19, and will be the same size (11,204+ square feet) as the existing parcel, will be owned by Wolfhound Holdings.  Parcel I (11,250+ square feet), which will be created from a portion of the Redevelopment Agency owned parcel with APN 032-136-11 and vacated public right-of-way, will be conveyed to Wolfhound Holdings in exchange for the Wolfhound Parcel (APN 032-135-14; 10,110+ square feet in size).

The City is involved as a party to the Agreement in order to vacate certain public easements and right-of-way and to approve the Parcel Map.  Accordingly, the City Council is also asked to approve entering into the Agreement itself.

The proposed Agreement is intended to allow the Redevelopment Agency and the City to accomplish two objectives.

First, it will allow the Redevelopment Agency to complete the reconfiguration of parcels and public right-of-way in the area bordering and including Victorian Square Plaza (the “Plaza”) between Victorian Avenue and Avenue of the Oaks, as called for in the Victorian Square Development Plan amendments to the Town Center Redevelopment Plan.  There will be four parcels, two each on the east and west sides of the Plaza bordering the north-south street couplet between Avenue of the Oaks and Victorian Avenue.  These four parcels are designated for mixed use development featuring retail, dining and entertainment uses on the ground floor and residential and/or office uses on one or more of the upper floors.  If the Agreement is approved and fully implemented, Wolfhound Holdings will own all four, which should facilitate future development of these properties.

Second, the Redevelopment Agency will acquire APN 032-135-14, which will complete the Agency’s assembly of the property along Victorian Avenue between what was formerly 13^th Street and Victorian Plaza Circle.  Doing so will enable the Redevelopment Agency to sell this parcel, along with other Redevelopment Agency parcels, to Silverwing Development for their proposed Fountainhouse multi-family residential and mixed-use project, as contemplated in the December 2014 ENA between the City, the Redevelopment Agency and Silverwing.

CITY COUNCIL APPROVAL OF ACTIONS BY REDEVELOPMENT AGENCY:

THE ACQUISITION OF A PARCEL OWNED BY WOLFHOUND HOLDINGS, LLC IDENTIFIED AS WASHOE COUNTY ASSESSOR’S PARCEL NUMBER 032-135-14 (the “Wolfhound Parcel”)

The Victorian Square Development Plan

The Victorian Square Development Plan, adopted in 2005 as an amendment to the 2000 Town Center Redevelopment Plan and amended on February 9, 2015, calls for the development of multi-family residential, retail (especially dining and entertainment) and office uses in a mixed-use configuration.  If substantially accomplished, the Plan meets all the considerations required by NRS 279.486(2).  The new development will encourage the creation of new business in the area, namely the ground floor retail and potential office spaces planned along the Plaza, as set out in the Redevelopment Plan.  Those new retail stores and office spaces will create jobs and business opportunities in the area, and will increase revenues from desirable sources (tourists, residents, and office workers in the area).  These uses, in combination with the proposed multi-family residential development, will substantially increase levels of human activity in the area.  Design and construction, starting with the proposed Fountainhouse project, will be of high quality and unique to this area of Sparks.  Finally, the construction of the new buildings will require skilled labor.

How the acquisition benefits the Redevelopment Area

In furtherance of the Redevelopment Plan, the Agency is acquiring the Wolfhound Parcel for the purpose of combining it with other real property owned by the Redevelopment Agency to facilitate and accomplish the residential and mixed-use Silverwing Project.

No other reasonable means of financing

Through the exchange of Parcel I with the Wolfhound Parcel, the Agency can achieve the objectives of the Redevelopment Plan efficiently and minimize costs and delay in acquiring the Wolfhound Parcel.  Per the Agreement, the parties agree that the land exchange will not involve an exchange of money, which were the only terms acceptable to all the parties.  While the appraised value ($200,000) of the property the Agency is receiving (i.e., the Wolfhound Parcel) is less than the appraised value ($235,000) of the property (Parcel I) Wolfhound is obtaining in the exchange, the values are comparable and the exchange can be deemed to have equal value for the parties.  The exchange is occurring at the behest of the Redevelopment Agency and, per NRS 279.630(1), the Redevelopment Agency may proceed with the exchange on the proposed terms if the Agency Board finds that it is necessary to effectuate the purposes of the Redevelopment Plan.

THE DISPOSITION OF A PARCEL IDENTIFIED AS PARCEL I ON THE PARCEL MAP AND CREATED IN PART FROM WASHOE COUNTY ASSESSOR’S PARCEL NUMBER 032-136-11 OWNED BY THE REDEVELOPMENT AGENCY OF THE CITY OF SPARKS

The exchange between the Redevelopment Agency and Wolfhound Holdings involves the disposition of Parcel I (see Parcel Map, Exhibit 1).  Parcel I is to be created in part from a parcel owned by the Redevelopment Agency with APN 032-136-11.  A portion (6,752 square feet) of APN 032-136-11 will become part of the newly configured Parcel I; the remainder will be conveyed to the City as public right-of-way.

Under NRS 279.630(3), the City Council must approve the Agency’s disposition of property by resolution after notice and a public hearing.  The statute sets no specific criteria for the Council to consider or findings to make before granting that consent.  Notice for this public hearing was provided by publishing once a week for two weeks in the Reno Gazette Journal.

Disposing of Parcel I, which is to be created from the Agency parcel with APN 032-136-11, in exchange for the Wolfhound Parcel effectuates the Redevelopment Plan because: (a) it enables the Agency to acquire the Wolfhound Parcel for the purpose of combining it with other real property owned by the Redevelopment Agency to facilitate and accomplish the Silverwing Project; and, (b) it makes Parcel I available for redevelopment because it is being placed in the hands of private ownership (Wolfhound Holdings), which will own the four parcels lining the Plaza between Victorian Avenue and Avenue of the Oaks.

In short, the Agreement utilizes the value of APN 032-136-11 and the vacation of City right-of-way to propel the redevelopment of the area.  Staff respectfully recommends that the Council approve the Resolution and the Agreement.

APPROVAL OF THE AGREEMENT FOR EXECUTION BY CITY

The City’s rights and obligations under the Agreement include:

• To approve, subject to future City Council action, the (merger and resubdivision) Parcel Map.
• If the Parcel Map and exchange transaction are completed, the Redevelopment Agency will convey to the City for public right-of-way land underlying a portion of the western half of the north-south street couplet between Avenue of the Oaks and Victorian Avenue adjacent to the Plaza.
• The City will also receive from Wolfhound portions of APN 032-136-19 (approximately 1,018 square feet), as depicted in Exhibit 1 to the Agreement, that will become public right-of-way.
• The City agrees (subject to a public hearing required by NRS 278.480) to vacate public right-of-way necessary to reconfigure the parcel with APN 032-136-11 as Parcel I and APN 032-136-19 as Parcel J.  A draft of the order to vacate public right-of-way is attached as Exhibit 3.

The Council could reject or modify the Resolution or the Victorian Square Property Exchange Agreement.

The motion should come in two parts:

1. I move to approve Resolution 3284 based on the information in the staff report and information brought forward during the oral presentation and public hearing.
2. I move to approve the Victorian Square Property Exchange Agreement for execution by the city.