HAYWARD CITY COUNCIL
RESOLUTION NO. _______________
Introduced By Council Member _______________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HAYWARD authorizing the conveyance of $8.6 million FROM THE GENERAL FUND to the Hayward Economic Development Corporation for purchase of 1069 B Street, LLC’s leasehold interest in the Cinema Place property and finding the action is exempt from CEQA review WHEREAS, in 2005, the Hayward Redevelopment Agency (RDA) entered into a ground lease with the Cinema Place developer, which expires in 2056, for the Property located at 22631-228522 Foothill Blvd., (APN 428-0066-086 and 428-0066-085) (Property); and WHEREAS, in 2007, the RDA entered into a Parking Lot Maintenance Agreement with the Cinema Place developer for Municipal Lot 3; and WHEREAS, the lease and parking agreements were subsequently transferred to the Hayward Redevelopment Successor Agency (Successor Agency) and the current tenant: 1069 B Street, LLC, which holds a leasehold interest in the Property under the Ground Lease and holds specified rights under the Parking Agreement; and WHEREAS, 1069 B Street, LLC, recently notified the City of Hayward ("City") and the Successor Agency of its desire to sell and transfer its rights, duties and obligations in the Property and under the various agreements that govern the relationship between it and the Successor Agency; and WHEREAS, the City recognizes the benefits associated with the creation of economic opportunity and community economic development in the city; and WHEREAS, the City has formed a nonprofit public benefit corporation known as Hayward Economic Development Corporation (the "Corporation"); and WHEREAS, in an effort to further the City’s economic development goals and activities for the downtown area, the Corporation determined to purchase, from the 1069 B Street, LLC, the rights, duties, and obligations in the Property and entered into negotiations regarding the same; and WHEREAS, the Corporation and 1069 B Street, LLC, have reached agreement to purchase the leasehold interest of 1069 B Street, LLC, in the Property and assume its rights, duties and obligations under the various agreements for a sum not to exceed $8.5 million; and WHEREAS, in order to complete the transfer, the City intends to capitalize the corporation and convey $8.5 million plus closing and other additional costs; and WHEREAS, City intends that the Corporation will repay these and any additional funds to the City’s General Fund on an annual basis through a formalized repayment agreement which the City and the Corporation will enter into at a later date; and WHEREAS, this action is categorically exempt from CEQA per State CEQA Guidelines Section 15301, Class 1, Existing Facilities Exemption; Section 15061 (b) (3), General Rule or “Common Sense” Exemption.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Hayward, finds the above recitals true and correct and by this reference makes them a part hereof.
BE IT FURTHER RESOLVED, that in order to further the City’s economic development goals of the City, the City Council authorizes the conveyance of an amount not to exceed $8.6 million from the City’s General Fund to the Hayward Economic Development Corporation.
BE IT FURTHER RESOLVED, that the City Manager is hereby authorized and directed to execute any and all documents necessary to effectuate the conveyance of the funds to the Hayward Economic Development Corporation.
IN COUNCIL, HAYWARD, CALIFORNIA, January _________, 2024 ADOPTED BY THE FOLLOWING VOTE:
AYES: COUNCIL MEMBERS:
MAYOR:
NOES: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
ATTEST: ___
City Clerk of the City of Hayward
APPROVED AS TO FORM:
___________________________________________
City Attorney for the City of Hayward
163\10\979140.4
ATTACHMENT II
ATTACHMENT II