An auto repair shop across from the Old Town Newhall Library was demolished over the weekend to make way for a mixed-use development project including a theater.

The city purchased the Insurance Auto Collision Center building at 22520 Lyons Avenue in 2009 when it acquired the entire 1.7-acre block for redevelopment. It demolished the other buildings in June 2012 but had to wait for the Insurance Auto Collision business owner’s lease to expire at the end of 2014 before it could demolish the 1946 auto shop building.

According to a Feb. 24 city staff report, the plan calls for the city to select a developer “to create a mixed-use project on this site that combines retail and residential uses, a theater component, and public parking.”

“(A) Laemmle (theater) is one thing we have heard from the community most that they would like to see here,” said Jason Crawford, the city’s economic development manager. “We are hopeful we will get them or someone like them there.”

A concept for the development project should go before the City Council this summer, according to the staff report.

The staff report follows:

The Redevelopment Agency of the City of Santa Clarita (Redevelopment Agency) acquired a block of property in Old Town Newhall in November 2008. The approximately 2-acre site encompasses one full city block, directly across the street from the Old Town Newhall Library, bounded by Lyons Avenue to the north, Railroad Avenue to the east, 9th Street to the south, and

Main Street to the west. As a result of the dissolution of the Redevelopment Agency as dictated by AB X1 26 and AB 1484, the entire block now has multiple ownership interests: the City, the City as the Housing Successor Agency to the former Redevelopment Agency, and the Successor Agency to the former Redevelopment Agency.

This property is currently the subject property of a Request for Qualifications for development, which was released in November 2014. Staff is currently going through the evaluation process of submitted responses to ultimately recommend to City Council a developer to create a mixed- use project on this site that combines retail and residential uses, a theater component, and public parking. This concept is anticipated to be presented to the City Council in Summer 2015. A portion of this property is currently being used to provide public parking for the Old Town Newhall area.

At the time the property was purchased, there were four structures on the property: three buildings leased to private automotive uses and a building previously occupied by the City for the former Newhall Community Center, which was also utilized as the construction office for the duration of the construction of the Old Town Newhall Library. Two of the three automotive uses vacated the property in 2011. In 2012, those two former automotive buildings, as well as the former Newhall Community Center/construction office, were demolished.

The last remaining automotive use tenant located on this property vacated in December 2014. Staff is proposing to utilize rental income received from the former tenant to complete the demolition of this building in preparation for the future development of the site and to ensure the health and safety of the surrounding areas.

Staff will be utilizing an open contract for “As Needed General Contractor Services” to complete this work. On November 27, 2013, a bid was posted on the City’s Bid Management website for “As Needed General Contractor Services.” Planet Bids notified 442 vendors, and 40 vendors downloaded the bid package. As a result, seven bids in response were received and opened by Purchasing staff on January 8, 2014. City Council awarded contracts on February 11, 2014, for “As Needed General Contractor Services.”

The contractor has provided a quote of $66,000 to complete the demolition work. Staff has already had the site inspected for environmental concerns, including asbestos and lead based paint. Asbestos was found on the property, and therefore, the remediation of asbestos is included in the price provided by the contractor. It is estimated that the demolition, including the environmental remediation, will take one week to complete.

Upon approval of the recommended action, the budget will be adjusted accordingly. The rental income the City received from this tenant was determined by the Department of Finance to be a Housing Asset, and therefore, the City, as Housing Successor Agency to the Former Redevelopment Agency, has collected rent and placed it in Fund 393. The $66,000 of rental income from the subject property (fund balance in Fund 393) will be used to demolish the existing structure located at 22520 Lyons Ave.