EAST PALO ALTO
CITY COUNCIL
STAFF REPORT
DATE: March 15, 2022
TO: Honorable Mayor and Members of the City Council
VIA: Jaime M. Fontes, City Manager
BY: Patrick Heisinger, Assistant City Manager
Patrick Heisinger, Assistant City Manager
SUBJECT: Council consideration of extension of 90-day due diligence period of library site acquistion
Recommendation
Adopt a Resolution (Attachment 1) authorizing the City Manager to execute an amendment to the Purchase and Sale Agreement (“PSA”), in a form approved by the City Attorney, between the City of East Palo Alto and the East Palo Alto Youth Arts & Music Center, LLC for the potential acquisition of the property located near the corner of Bay Road and Pulgas Avenue (APN: 063-240-490) (“Site”) to extend the due diligence period by an additional 30-days.
Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:
Priority No. 4: Improve Public Facilities and Infrastructure Background
On December 7, 2021, the City Council adopted a Resolution:
1. Authorizing the City Manager to execute a PSA between the City of East Palo Alto and the East Palo Alto Youth Arts & Music Center, LLC (an affiliate of the John and Marcia Goldman Foundation) for the potential acquisition of the Site for potential future development of a new public library; and
2. Appropriate $110,000 from the General Fund Reserve to provide funding for the acquisition deposit and any unforeseen costs incurred during the contract term, as further described in this staff report.
The PSA stipulated that the City is allowed a 90-day due-diligence period that would commence when the PSA was fully executed. The PSA was fully executed on December 28, 2021, therefore all due-diligence items must be completed by the City by March 28, 2022.
To date, the City has commissioned a Phase 1 Environmental Site Analysis and is in the process of obtaining a Phase 2 report.
The purpose of this staff report is to seek City Council approval for a 30-day extension to the due-diligence period, to ensure ample time for completing additional necessary review activities.
Analysis
A 30-day extension of the PSA due-diligence timeline to April 28, 2022, will ensure that the City is allowed ample time to finalize all necessary due-diligence activities.
In response to staff communication, the Goldman Foundation has indication support for the extension.
Staff also seeks delegated authority to the City Manager to extend the due-diligence period and other deadlines in the PSA, as needed, with Owner agreement. This authority will allow staff to complete the required due diligence items prior to the final deadline, while being responsive to timeline shifts resulting from individual tasks, and not to impact the overall project schedule.
Fiscal Impact
At this time, there is no fiscal impact to the City associated with this report.
Public Notice
The public was provided notice of this agenda item by posting the City Council agenda on the City’s official bulletin board outside City Hall and making the agenda and report available at the City’s website and at the San Mateo Co. Library located at 2415 University Avenue, East Palo Alto.
Environmental
The action being considered does not constitute a “Project” within the meaning of the California Environmental Quality Act (CEQA), pursuant to CEQA Guideline section 15378 (b)(5), in that it is a government administrative activity that will not result in direct or indirect changes in the environment.
Attachments
1. Resolution