Title
Staff Report for and Presentation by Innisfree Ventures II on Revisions to the Village Marketplace Development at 1550 East 14th Street
Staffreport
SUMMARY AND RECOMMENDATION
In 2009, the Redevelopment Agency purchased 1550 East 14th Street to provide temporary parking during the construction of the downtown parking garage and then develop into a project which would serve as a catalyst for downtown retail. The Redevelopment Agency worked in partnership with developer Innisfree Ventures II and the community for three years to create the Village Marketplace, a retail project with a specialty grocery store anchor. Revisions to the Village Marketplace development were necessitated by the loss of the grocery anchor. In Summer 2013, Innisfree identified an alternative anchor tenant and submitted revised designs and elevations to the City for approval. This high profile project is being brought to the Council for direction.
BACKGROUND
In 1947, Lucky began operating a grocery store at 1550 East 14th Street (Site). In May 2005, Red Mountain Retail Group acquired a portfolio of Lucky properties, including the Site. Red Mountain held ownership of the Site through Norcal AL LLC, a limited liability corporation. In September 2005 the grocery store, which had changed to an Albertsons, closed due to underperformance.
In 2007, Norcal filed a series of lawsuits against the City contending that various planning and zoning actions related to the City's approval of the Transit Oriented Development Strategy violated its constitutional rights or were otherwise contrary to law. In 2008, the Council placed a priority on resolving the litigation due to the prominence of this downtown site and the blight created by the store vacancy. In April 2009, the Council voted unanimously to approve settlement terms which included the Redevelopment Agency's purchase of the Site for $6.175 million, a price that included Norcal's demolition of the building. The se...
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