ORDINANCE NO. _____
An Ordinance Of The City Council Of The City Of Emeryville Approving And Authorizing The City Manager To Enter Into And Execute A Lease Disposition And Development Agreement Between The City Of Emeryville And EAH, Inc. And Related Ground Leases For The Development And Operation Of Three Affordable Housing Projects At 5890, 5900 And 6150 Christie Avenue (APNs 049-1493-003, 049-1493-004 And 049-1493-005) And Authorizing The City Manager To Take Necessary Actions To Execute The Lease Disposition and Development Agreement And Related Ground Leases (CEQA Determination: Exempt Pursuant State CEQA Guidelines Sections 15268(a) And 15332)
WHEREAS, the City owns the property located at 5890, 5900 and 6150 Christie Avenue (the “Site”); and
WHEREAS, on June 22, 2022, the City issued a Request for Proposals (“RFP”) for the redevelopment of the Site that will maximize the number of housing units and the number of affordable housing units on site, serve a broad spectrum of income levels and ages including three and/or four bedroom units, provide an energy efficient development, expand Christie Park, provide connections to the Marketplace Redevelopment Project and integrate with existing and planned pedestrian routes and bikeways, and provide a sustainable commercial or nonprofit transportation use; and WHEREAS, EAH, Inc. (“Developer”) submitted a timely response to the RFP, which response proposed the construction of a 367-unit family affordable housing project and expansion of Christie Avenue Park (the “Project”); and
WHEREAS, on November 15, 2022, the City Council adopted Resolution No. 22-153 selecting the Developer as the first-choice developer for the Project and authorizing the City Manager to execute an Exclusive Right to Negotiate Agreement (“ERN”) with Developer; and
WHEREAS, pursuant to Resolution No. 22-153, the City and the Developer entered into an ERN on March 23, 2023, which provided for an initial negotiation period of 180 days, with a permitted extension of an additional 180 days; and WHEREAS, on December 14, 2023, the Planning Commission made a finding supporting the disposition of City owned real property as the purpose and extent of the Project conforms with the General Plan; and
WHEREAS, the City and Developer desire to enter into the Lease Disposition and Development Agreement ("LDDA") and, pursuant to Government Code section 37380, the Ground Lease, attached to this Ordinance as Exhibit A, for the construction and operation of the Project.
DocuSign Envelope ID: 58385178-6E18-4D61-BE13-CD4B07CDBA7E Ordinance No. 24-_____
Christie Avenue Sites LDDA and Ground Lease
City Council Meeting | January 16, 2024
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF EMERYVILLE DOES HEREBY ORDAIN AS FOLLOWS:
SECTION ONE. TITLE
This Ordinance shall be known as the “Christie Avenue Sites Lease Disposition and Development Agreement and Ground Lease Ordinance.”
SECTION TWO. FINDINGS AND PURPOSES DECLARATION
The purpose of this ordinance is to facilitate the development of City-owned property located at 5890, 5900 and 6150 Christie Avenue, Emeryville, California. The development is to provide an expansion of Christie Avenue Park, three affordable housing buildings for very-low and low-income families and individuals, retail space for a community serving local non-profit, and space for resident services and programming.
The City Council finds that, by awarding the LDDA and Ground Lease to Developer, the City will facilitate the development of an affordable housing project that furthers the City’s policies relating to increasing the production of affordable housing.
SECTION THREE. APPROVAL AND AUTHORIZATION TO EXECUTE LEASE
DISPOSITION AND DEVELOPMENT AGREEMENT AND GROUND LEASE
The City Council hereby approves and authorizes the City Manager to execute and enter into a LDDA that is substantially the same form as the LDDA attached hereto as Exhibit A. The City Council hereby approves and authorizes the City Manager to execute and enter into three Ground Leases, each for a term of 99 years, that are in substantially the same form as the Ground Lease attached as Exhibit G to the LDDA, provided the terms and conditions precedent to execution of the Ground Leases as set forth in the LDDA executed by the parties are satisfied.
SECTION FOUR. APPROVAL AND AUTHORIZATION TO EXECUTE AGREEMENTS The City Council hereby approves and authorizes the City Manager to execute and enter into agreements necessary to implement the LDDA and the Ground Leases with Developer.
SECTION FIVE. APPROVAL AND AUTHORIZATION TO EXECUTE AMENDMENTS A) Minor Amendments: The City Council hereby authorizes the City Manager to execute and enter into amendments to the LDDA and Ground Leases with Developer as may be agreed to by the City Manager and approved as to form by the City Attorney that do not materially increase the obligations of the City thereunder.
DocuSign Envelope ID: 58385178-6E18-4D61-BE13-CD4B07CDBA7E Ordinance No. 24-_____
Christie Avenue Sites LDDA and Ground Lease
City Council Meeting | January 16, 2024
B) Major Amendments: For any amendments not characterized as Minor Amendments pursuant to Section 5(A) of this ordinance, the City Council is authorized to approve any such amendments to the LDDA and Ground Leases by a resolution of the City Council.
SECTION SIX. CEQA DETERMINATION
The City Council finds that adoption of this ordinance is exempt from the California Environmental Quality Act (“CEQA”) pursuant to the statutory exemption at Section 15268(a) of the State CEQA Guidelines, which states that “ministerial projects are exempt from the requirements of CEQA,” and the categorical exemption at Section 15332 governing infill development projects because (i) the project is consistent with the Emeryville General Plan and Planning regulations, (ii) the development will be constructed on a site of no more than 5 acres (the Site is approximately 2.01 acres) and is surrounded by urban uses, (iii) the Site has no value as habitat for endangered, rare or threatened species, (iv) approval of the project will not result in any significant effects relating to traffic, noise, air quality or water quality, and (v) the Site is adequately served by all required utilities and public service.
SECTION SEVEN. SEVERABILITY
Every section, paragraph, clause, and phrase of this ordinance is hereby declared to be severable. If for any reason, any section, paragraph, clause, or phrase is held to be invalid or unconstitutional, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining section, paragraphs, clauses or phrases.
SECTION EIGHT. EFFECTIVE DATE
This Ordinance shall take effect 30 days following its final passage. The City Clerk is directed to cause copies of this Ordinance to be posted or published as required by Government Code section 33693.
SECTION NINE. CODIFICATION
This ordinance shall NOT be codified.
DocuSign Envelope ID: 58385178-6E18-4D61-BE13-CD4B07CDBA7E Ordinance No. 24-_____
Christie Avenue Sites LDDA and Ground Lease
City Council Meeting | January 16, 2024
This Ordinance was INTRODUCED AND FIRST READ by the City Council of the City of Emeryville at a regular meeting held Tuesday, January 16, 2024, and PASSED AND ADOPTED by the City Council of the City of Emeryville at a regular meeting held Tuesday, February 6, 2024, by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
MAYOR
ATTEST: APPROVED AS TO FORM:
CITY CLERK CITY ATTORNEY
ATTACHMENTS
Exhibit A – Lease Disposition and Development Agreement with EAH, Inc.
DocuSign Envelope ID: 58385178-6E18-4D61-BE13-CD4B07CDBA7E