Resolution No. XX-2023 1 of 3
RESOLUTION NO. XX – 2023
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF EAST PALO ALTO
AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE THE PURCHASE AND
SALE AGREEMENT BETWEEN THE CITY OF EAST PALO ALTO AND THE EAST PALO ALTO
YOUTH ARTS & MUSIC CENTER LLC FOR THE ACQUISITION OF THE SITE LOCATED AT THE CORNER OF BAY ROAD AND PULGAS AVENUE (APN 063-240-490) FOR POTENTIAL FUTURE
DEVELOPMENT OF A NEW PUBLIC LIBRARY OR COMMUNITY CENTER AND TAKE OTHER
NECESSARY ACTIONS
WHEREAS, on December 7, 2021, the City Council adopted a Resolution Authorizing the City Manager to execute a Purchase and Sale Agreement (“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
WHEREAS, in 2019-2020, the San Mateo County Library JPA (SMCL) embarked on a community-led design process to design a future library on the Site, which did not result in a finalized physical design for the library but explored possibilities and community priorities for a new library, the future design of which would be required to go through the City’s planning review process; and WHEREAS, since Fall 2020, the City and Goldman Foundation have continued discussions regarding the possibility of entering into an agreement for the Site, while further considering the potential placement of a new library; and
WHEREAS, in February 2021, the City commissioned an appraisal, which determined the Site’s value to be $3,260,000; and
WHEREAS, on September 7, 2021, the City Council directed the City Manager to execute a Letter of Intent (LOI) to develop terms of a Purchase and Sale Agreement (PSA) for the Site, and on December 7, 2021, the City Council approved the terms of the PSA; and WHEREAS, on September 6, 2022, and February 7, 2023, the City Council agreed to extend the term of the PSA to provide additional time for staff to complete the processes required by the California Environmental Quality Act (CEQA) prior to purchasing the Site; and WHEREAS, on February 17, 2023, the City circulated an Initial Study/Mitigated Negative Declaration (IS/MND) for a 30-day public review period, which ends on March 20, 2023; and WHEREAS, the term of the PSA expired on January 31, 2023, but both parties have agreed to extend the term to March 31, 2023; and
WHEREAS, the San Mateo County Library JPA committed $1,918,000 in Measure K funding towards acquisition of the Site; and
WHEREAS, the City desires to purchase the Site for a total of $3,260,000 and has already deposited $147,800 in escrow for purchase of the site; and Resolution No. XX-2023 2 of 3
WHEREAS, as part of the original PSA, the City and Goldman Foundation agreed to negotiate final CC&R language acceptable to all parties to ensure that the Site is developed in a way that is mutually agreeable to all parties and now the City and Goldman Foundation have negotiated this language and recommend the key elements be included in a recorded covenant prior to the close of escrow, including permitted and prohibited uses for the Site, and a meet-and-confer requirement for any future change in use;
NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF EAST PALO ALTO HEREBY:
1. Authorizes the City Manager to negotiate and execute 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 acquisition of the property located near the corner of Bay Road and Pulgas Avenue (APN: 063-240-490) (“Site”) for use as a public library or community center and other uses set forth therein;
2. Authorizes the City Manager, in consultation with the City Attorney, to extend the term of the PSA for up to 90-days in the event of unforeseen issues prior to the close of the transaction;
3. Accepts the San Mateo County Library JPA’s (SMCL) $1,918,000 contribution toward site acquisition;
4. Appropriates $1,194,200 in General Fund Reserves and the $1,918,000 SMCL contribution for purchase price;
5. Authorizes the City Manager to negotiate and execute a Certificate of Acceptance and Declaration of Covenants, Conditions and Restrictions in conjunction with purchase of the site; and
6. Adopts the Initial Study and Mitigated Negative Declaration and Mitigation and Monitoring and Reporting Program for site acquisition.
PASSED AND ADOPTED this 21st day of March 2023 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Resolution No. XX-2023 3 of 3
Lisa Gauthier, Mayor
ATTEST: APPROVED AS TO FORM:
James Colin, City Clerk John D. Lê, City Attorney