Monday, January 8, 2024
6:00 PM
CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
Conference Room 2A and Virtual Platform (Zoom)
City Council
Agenda
January 8, 2024City Council Agenda
SPECIAL JOINT CITY COUNCIL/HAYWARD REDEVELOPMENT SUCCESSOR
AGENCY (HRSA) BOARD/HAYWARD ECONOMIC DEVELOPMENT
CORPORATION (HEDC) BOARD MEETING
Hayward City Hall, 777 B Street, Conference Room 2A, Hayward 6:00 PM (or when the Council Sustainability Committee meeting concludes)
PUBLIC PARTICIPATION
How to observe the Meeting:
YouTube Live stream: https://www.youtube.com/user/cityofhayward How to submit written Public Comment:
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SPECIAL JOINT CITY COUNCIL/HAYWARD REDEVELOPMENT SUCCESSOR
AGENCY (HRSA) BOARD/HAYWARD ECONOMIC DEVELOPMENT
CORPORATION (HEDC) BOARD MEETING
Pursuant to Government Code section 54953, the meeting will include a teleconference location at Courtyard by Marriott Atlanta Midtown, 640 Peachtree Street, Atlanta, GA 30308. Council Member Bonilla Jr. will participate via teleconference. The agenda will be posted at the teleconference location and the public will have an opportunity to address the City Council.
January 8, 2024City Council Agenda
CALL TO ORDER: Mayor/HRSA/HEDC Chair Salinas
Pledge of Allegiance: Mayor/HRSA/HEDC Chair Salinas
AB 2449 TELECONFERENCE NOTIFICATIONS AND CONSIDERATION
ROLL CALL
PUBLIC COMMENTS
Limited to Items on the Agenda.
ACTION ITEMS
The Council will permit comment as each item is called for the Consent Calendar, Public Hearings, and Legislative Business. In the case of the Consent Calendar, a specific item will need to be pulled by a Council Member in order for the Council to discuss the item or to permit public comment on the item. Please notify the City Clerk any time before the Consent Calendar is voted on by Council if you wish to speak on a Consent Item.
CONSENT
Adopt Resolutions Pertaining to: City of Hayward Authorizing Conveyance of Funds to the Hayward Economic Development Corporation (Corporation); Hayward Redevelopment
Successor Agency Approving the Conveyance Agreement and Consenting to the Transfer of the Property Located at
22631-228522 Foothill Blvd., and the Assignment of the
Seller's Rights, Duties, and Obligations to the Corporation; and Corporation Approving the Conveyance Agreement and
Assignment of Enforceable Obligations; and Finding the Action is Exempt from CEQA Review
CONS 24-0141.
Attachments: Attachment I Staff Report
Attachment II Council Resolution
Attachment III HRSA Resolution
Attachment IV HEDC Resolution
COUNCIL REPORTS AND ANNOUNCEMENTS
Council Members can provide oral reports on attendance at intergovernmental agency meetings, conferences, seminars, or other Council events to comply with AB 1234 requirements (reimbursable expenses for official activities).
COUNCIL REFERRAL
January 8, 2024City Council Agenda
Council Members may bring forward a Council Referral Memorandum (Memo) on any topic to be considered by the entire Council. The intent of this Council Referrals section of the agenda is to provide an orderly means through which an individual Council Member can raise an issue for discussion and possible direction by the Council to the appropriate Council Appointed Officers for action by the applicable City staff.
ADJOURNMENT
NEXT MEETING, January 23, 2024, 7:00 PM
January 16, 2024 Meeting Canceled
PUBLIC COMMENT RULES
Any member of the public desiring to address the Council shall limit their comments to three (3) minutes unless less or further time has been granted by the Presiding Officer or in accordance with the section under Public Hearings. The Presiding Officer has the discretion to shorten or lengthen the maximum time members may speak. Speakers will be asked for their name before speaking and are expected to honor the allotted time.
PLEASE TAKE NOTICE
That if you file a lawsuit challenging any final decision on any public hearing or legislative business item listed in this agenda, the issues in the lawsuit may be limited to the issues that were raised at the City's public hearing or presented in writing to the City Clerk at or before the public hearing.
January 8, 2024City Council Agenda
PLEASE TAKE FURTHER NOTICE
That the City Council adopted Resolution No. 87-181 C.S., which imposes the 90-day deadline set forth in Code of Civil Procedure section 1094.6 for filing of any lawsuit challenging final action on an agenda item which is subject to Code of Civil Procedure section 1094.5. ***Materials related to an item on the agenda submitted to the Council after distribution of the agenda packet are available for public inspection in the City Clerk ’s Office, City Hall, 777 B Street, 4th Floor, Hayward, during normal business hours. An online version of this agenda and staff reports are available on the City ’s website. Written comments submitted to the Council in connection with agenda items will be posted on the City ’s website. All Council Meetings are broadcast simultaneously on the City website, Cable Channel 15 - KHRT, and YouTube. ***
Assistance will be provided to those requiring accommodations for disabilities in compliance with the Americans with Disabilities Act of 1990. Interested persons must request the accommodation at least 48 hours in advance of the meeting by contacting the City Clerk at (510) 583-4400 or [email protected].
Assistance will be provided to those requiring language assistance. To ensure that interpreters are available at the meeting, interested persons must request the accommodation at least 48 hours in advance of the meeting by contacting the City Clerk at (510) 583-4400.
CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: CONS 24-014
DATE: January 8, 2024
TO: Mayor and City Council
Hayward Redevelopment Successor Agency Board of Directors Hayward Economic Development Corporation Board of Directors FROM: Assistant City Manager
SUBJECT
Adopt Resolutions Pertaining to: City of Hayward Authorizing Conveyance of Funds to the Hayward Economic Development Corporation (Corporation); Hayward Redevelopment Successor Agency Approving the Conveyance Agreement and Consenting to the Transfer of the Property Located at 22631- 228522 Foothill Blvd., and the Assignment of the Seller's Rights, Duties, and Obligations to the Corporation; and Corporation Approving the Conveyance Agreement and Assignment of Enforceable Obligations; and Finding the Action is Exempt from CEQA Review
RECOMMENDATION
That the Council adopts a resolution (Attachment II) authorizing the conveyance of $8.6 million 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.
That the Successor Agency Board of Directors adopts a resolution (Attachment III) approving the Conveyance Agreement and consenting to the transfer of the leasehold interest in the Cinema Place property from 1069 B Street, LLC, to the Hayward Economic Development Corporation, and approving assignment of rights and duties under the various agreements that govern the relationship between the 1069 B Street, LLC and the Successor Agency, as well as finding the action is exempt from CEQA review.
That the Hayward Economic Development Corporation Board of Directors adopts a resolution (Attachment IV) approving the Conveyance Agreement for the transfer of the leasehold interest in the Cinema Place property from 1069 B Street, LLC, to the Hayward Economic Development Corporation, and accepting the assignment of rights and duties under the various agreements that govern the relationship between the Seller and the Successor Agency.
SUMMARY
1069 B Street, LLC, which holds a leasehold interest in the Cinema Place property, recently notified the Successor Agency of its intent to sell and transfer its rights, duties, and obligations regarding Cinema CITY OF HAYWARD Printed on 1/4/2024Page 1 of 2
powered by Legistar™
File #:CONS 24-014
Place. In an effort to further the City’s economic development goals and activities for the downtown area, the recently formed Hayward Economic Development Corporation (Corporation) determined to purchase, from the 1069 B Street, LLC, the rights, duties, and obligations pursuant to the leasehold interest to the Cinema Place Property, for $8.5 million. In order to complete the transaction, the City authorizes a conveyance of $8.5 million from the General Fund, plus closing and other related costs to the Corporation. Furthermore, Successor Agency, as property owner, approves the conveyance agreement.
ATTACHMENTS
Attachment I Staff Report
Attachment II City Resolution
Attachment III HRSA Resolution
Attachment IV HEDC Resolution
CITY OF HAYWARD Printed on 1/4/2024Page 2 of 2
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DATE: January 8, 2024
TO: Mayor and City Council
Hayward Redevelopment Successor Agency Board of Directors Hayward Economic Development Corporation Board of Directors
FROM: Assistant City Manager
SUBJECT: Adopt Resolutions Pertaining to: City of Hayward Authorizing Conveyance of Funds to the Hayward Economic Development Corporation (Corporation); Hayward Redevelopment Successor Agency Approving the Conveyance Agreement and Consenting to the Transfer of the Property Located at 22631- 228522 Foothill Blvd., and the Assignment of the Seller's Rights, Duties, and Obligations to the Corporation; and Corporation Approving the Conveyance Agreement and Assignment of Enforceable Obligations; and Finding the Action is Exempt from CEQA Review
RECOMMENDATION
That the Council adopts a resolution (Attachment II) authorizing the conveyance of $8.6 million 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.
That the Successor Agency Board of Directors adopts a resolution (Attachment III) approving the Conveyance Agreement and consenting to the transfer of the leasehold interest in the Cinema Place property from 1069 B Street, LLC, to the Hayward Economic Development Corporation, and approving assignment of rights and duties under the various agreements that govern the relationship between the 1069 B Street, LLC and the Successor Agency, as well as finding the action is exempt from CEQA review.
That the Hayward Economic Development Corporation Board of Directors adopts a resolution (Attachment IV) approving the Conveyance Agreement for the transfer of the leasehold interest in the Cinema Place property from 1069 B Street, LLC, to the Hayward Economic Development Corporation, and accepting the assignment of rights and duties under the various agreements that govern the relationship between the Seller and the Successor Agency.
SUMMARY
1069 B Street, LLC, which holds a leasehold interest in the Cinema Place property, recently notified the Successor Agency of its intent to sell and transfer its rights, duties, and obligations regarding Cinema Place. In an effort to further the City’s economic development goals and activities for the downtown area, the recently formed Hayward Economic Development Corporation (Corporation) determined to purchase, from the 1069 B Street, LLC, the rights, duties, and obligations pursuant to the leasehold interest to the Cinema Place Property, for $8.5 million.
In order to complete the transaction, the City authorizes a conveyance of $8.5 million from the General Fund, plus closing and other related costs to the Corporation. Furthermore, Successor Agency, as property owner, approves the conveyance agreement.
BACKGROUND AND DISCUSSION
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). In 2007, the RDA entered into a Parking Lot Maintenance Agreement with the Cinema Place developer for Municipal Lot 3 (the City oversees the maintenance, including utilities, cleaning contracts, and facility updates). The lease and parking agreements were subsequently transferred to the Hayward Redevelopment Successor Agency (Successor Agency) and the current tenant: 1069 B Street, LLC. 1069 B Street, LLC, holds a leasehold interest in the Property under the Ground Lease and holds specified rights under the Parking Agreement.
On November 8, 2013, the Successor Agency received a "Finding of Completion" from the California Department of Finance (the "Department") pursuant to Section 34179.7 of the Health and Safety Code, confirming that the Successor Agency had made specified required payments under the Dissolution Act and entitling Successor Agency to prepare and submit a Long-Range Property Management Plan (the "LRPMP") for approval by its local oversight board and the Department.
Successor Agency staff prepared a proposed LRPMP, and obtained its local oversight board's approval of the proposed LRPMP. In accordance with Section 34191.3 of the Health and Safety Code, the Successor Agency staff submitted the LRPMP to the Department for consideration.
The Department approved the LRPMP by determination letter issued on September 4, 2015.
The Property is subject to the Existing Disposition Agreement, the Ground Lease, and the Parking Agreement are collectively referred to as the "Cinema Place Enforceable Obligations.”
Consistent with the Approved LRPMP, the Successor Agency will continue to retain the fee interest in the Property for the entire term of the Cinema Place Enforceable Obligations (through July 11, 2057, but subject to a ten-year extension to July, 11, 2067).
During the Summer of 2023, 1069 B Street, LLC (Seller), informed the Successor Agency of its desire to transfer its rights, duties, and obligations in the Property and under the various agreements that govern the relationship between the Seller and the Successor Agency.
The City of Hayward recently formed the Hayward Economic Development Corporation (Corporation). The City’s intent in forming this public benefit corporation was to allow for the City to continue to achieve its economic development activities and implement the economic development goals of the City. In an effort to further the City’s economic development goals and activities for the downtown area, the Corporation determined to purchase, from the Seller, the rights, duties, and obligations in the Property and entered into negotiations regarding the same.
The Corporation and Seller have reached agreement regarding terms and are ready to sign the Conveyance Agreement, under which the Corporation agrees to buy the Seller's leasehold interest in the Property and assume the Seller's rights, duties, and obligations under Cinema Place Enforceable Obligations for a sum not to exceed $8.5 million. In addition to providing for assignment of Seller’s interest in the Property and Cinema Place Enforceable Obligations, the Conveyance Agreement requires deposits be made, some of which may be reimbursable under specified circumstances if the Conveyance Agreement is terminated, and allows for potential reductions in the purchase price if the Property is not in similar condition as it was described in an August 2023 property condition report. The transfer of interest in the Property from the Seller to the Corporation is subject to approval rights of the Countywide Oversight Board and State Department of Finance.
In order to complete the transfer, City staff recommends authorizing the conveyance of $8.5 million from the City’s General Fund to the Corporation, plus closing and any additional related costs. The conveyance of funds to the Corporation would allow the Corporation to acquire the Seller’s interest in the Property and Cinema Place Enforceable Obligations, which would ensure the continuation and stabilization of businesses in downtown Hayward. Acquisition of the Cinema Place leasehold interest and assignment of rights and duties under various agreements will help maintain the existing tax revenue and jobs and allow for the opportunity for creation of new jobs and opportunities for economic development in the future.
It is intended that these funds will be repaid to the City’s General Fund by the Corporation on an annual basis. To formalize this agreement and terms, City staff will work with the Corporation on a repayment agreement.
Successor Agency staff recommend approval of the Conveyance Agreement and consenting to the Seller's transfer of specified interest in the Property to Corporation and the assignment of the Seller's rights, duties, and obligations under the Cinema Place Enforceable Obligations to the Corporation. Furthermore, the Successor Agency's approval and consent of the transfer from Seller to the Corporation pursuant to the Conveyance Agreement is not subject to Assembly Bill 1486 (“AB 1486”), which pertains to disposition of local agency surplus property, because the Successor Agency is not conveying any interest in the Property, and is only consenting to the transfers from the Seller to the Corporation as contemplated under the Conveyance Agreement.
Environmental Review
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.
ECONOMIC IMPACT
This project supports the City’s efforts to maintain and grow the economy and prevent a vacant downtown anchor site by ensuring active use. A direct quantification of the economic impacts is not estimable.
FISCAL IMPACT
The funding to capitalize the Corporation and allow it to complete the purchase is estimated to be $8.5 million plus closing and any additional costs. Staff estimate the overall initial fiscal impact to the City’s General Fund will be $8.6 million, made as a loan to the Economic Development Corporation. These funds will be repaid over time by the Corporation to the General Fund from lease revenues and operating proceeds of the property. The City conveyance of funds is being made pursuant to the City’s police power authority conferred by California Constitution Article XI, Section 7.
STRATEGIC ROADMAP
The proposed project supports the Strategic Priority of Grow the Economy.
SUSTAINABILITY FEATURES
The actions discussed in this report do have any known direct or identifiable sustainability features.
NEXT STEPS
Following authorization of the conveyance of funds by the City to the Corporation and Successor Agency’s approval of the conveyance by the Seller to the Corporation, the Corporation and Seller will enter into a Conveyance Agreement regarding the Property.
Thereafter, the County Oversight Board will review the item and issue a finding of approval, which will be subject to the review of the California Department of Finance.
Prepared and Recommended by: Dustin Claussen, Assistant City Manager
Approved by:
________________________________________
Kelly McAdoo, City Manager
ATTACHMENT II
HAYWARD CITY COUNCIL
RESOLUTION NO. _______________
Introduced By Council Member _______________
A RESOLUTION OF THE CI TY COUNCIL OF THE CI TY OF HAYWARD AUTHORIZING THE CONV EYANCE OF $8.6 MILLION FROM THE GENERAL
FUND TO THE HAYWARD ECON OMIC DEVELOPMENT COR PORATION FOR PURCHASE OF 1069 B STREET, LLC’S LEASEHOLD INTEREST IN THE CINEMA
PLACE PROPERTY AND F INDING 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 th e 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, ha ve 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
ATTACHMENT II
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
ATTACHMENT III
REDEVELOPMENT SUCCESSOR AGENCY OF THE CITY OF HAYWARD
RESOLUTION NO. _______________
Introduced by Board Member _______________
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT
SUCCESSOR AGENCY OF THE CITY OF HAYWARD APPROVING THE
CONVEYANCE AGREEMENT AND CONSENTING TO T HE TRANSFER OF THE LEASEHOLD INTEREST I N THE CINEMA PLACE P ROPERTY FROM 1069 B
STREET, LLC, TO THE HAYWARD ECONOMIC DEVELOPMENT CORPORATION,
AND APP ROVING ASSIGNMENT OF RIGHTS AND DUTIES UNDER THE
VARIOUS AGREEMENTS T HAT GOVERN THE RELAT IONSHIP BETWEEN THE 1069 B STREET, LLC AND THE SUCCESSOR AGENCY, AS WELL AS 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
ATTACHMENT III
WHEREAS, the Corporation and 1069 B Street, LLC, ha ve reached agreement for the Corporation 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, 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 Board of Directors of the Redevelopment Successor Agency 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 the Board of Directors approves the Conveyance Agreement and consents to the transfer of the leasehold interest in the Cinema Place property from 1069 B Street, LLC, to the Hayward Economic Development Corporation.
BE IT FURTHER RESOLVED, that the Board of Directors approves and consents to the assignment of rights and duties under the various agreements that govern the relationship between the 1069 B Street, LLC and Redevelopment Successor Agency of the City of Hayward.
BE IT FURTHER RESOLVED, that the Executive Director is hereby authorized and directed to execute any and all documents necessary to effectuate the consent and approval of the transfer of the leasehold interest in the Cinema Place property and assignments of rights and duties under the various agreements that govern the relationship between the Redevelopment Successor Agency of the City of Hayward and 1069 B Street, LLC, from 1069 B Street, LLC to the Hayward Economic Development Corporation.
ATTACHMENT III
HAYWARD, CALIFORNIA, January _________, 2024
ADOPTED BY THE FOLLOWING VOTE:
AYES: BOARD MEMBERS:
CHAIR:
NOES: BOARD MEMBERS:
ABSTAIN: BOARD MEMBERS:
ABSENT: BOARD MEMBERS:
ATTEST: ___________________________
Secretary of the
Redevelopment Successor Agency of the City of Hayward
APPROVED AS TO FORM:
___________________________________________________________________ General Counsel of the
Redevelopment Successor Agency of the City of Hayward
ATTACHMENT IV
HAYWARD ECONOMIC DEVELOPMENT CORPORATION
RESOLUTION NO. _______________
Introduced by Board Member _______________
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE HAYWARD
ECONOMIC DEVELOPMENT CORPORATION APPROVING THE CONVEYANCE
AGREEMENT FOR THE TRANSFER OF THE LEASEHOLD INTEREST IN THE CINEMA PLACE PROPERT Y FROM 1069 B STREET , LLC, TO THE HAYWAR D
ECONOMIC DEVELOPMENT CORPORATION, AND ACCEPTING THE
ASSIGNMENT OF RIGHTS AND DUTIES UNDER TH E VARIOUS AGREEMENTS THAT GOVERN THE RELATIONSHIP BETWEEN 1069 B STREET, LLC AND THE
SUCCESSOR AGENCY
At a duly constituted meeting of the Board of Directors (the “Board”) of the Hayward Economic Development Corporation, a California nonprofit public benefit corporation, held on January 8, 2024, the following resolutions were adopted:
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
ATTACHMENT IV
WHEREAS, the Corporation and 1069 B Street, LLC, ha ve reached agreement for the Corporation 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, the City intends to convey $8.6 million to the Corporation from the City’s General Fund and the Corporation accepts the conveyance with the intent to repay the funds on an annual basis from lease revenues and operating proceeds of the Property; 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 Board of Directors of the Hayward Economic Development Corporation , finds the above recitals true and correct and by this reference makes them a part hereof.
BE IT FURTHER RESOLVED, that the Board of Directors approves the Conveyance Agreement and the transfer of the leasehold interest in the Cinema Place property from 1069 B Street, LLC, to the Hayward Economic Development Corporation.
BE IT FURTHER RESOLVED, that the Board of Directors approves the assignment and assumption of rights and duties under the various agreements that govern the relationship between the 1069 B Street, LLC and Redevelopment Successor Agency of the City of Hayward.
BE IT FURTHER RESOLVED, that the Chief Executive Officer, or their delegee, is hereby authorized and directed to execute on behalf of the Corporation the Conveyance Agreement and any and all documents necessary to accept and assume 1069 B Street, LLC’s assignment of rights and duties under the various agreements that govern their relationship with the Redevelopment Successor Agency of the City of Hayward.
ATTACHMENT IV
HAYWARD, CALIFORNIA, January _________, 2024
ADOPTED BY THE FOLLOWING VOTE:
AYES: BOARD MEMBERS:
CHAIR:
NOES: BOARD MEMBERS:
ABSTAIN: BOARD MEMBERS:
ABSENT: BOARD MEMBERS:
ATTEST: ______________________________
Secretary of the
Economic Development Corporation of the City of Hayward
APPROVED AS TO FORM:
____________________________________________________________________ General Counsel of the
Economic Development Corporation of the City of Hayward
SECRETARY’S CERTIFICATE
I, the undersigned, hereby certify that the foregoing is a true copy of the Resolution adopted by the Board of Directors of the above mentioned Corporation at a meeting of said Board held on the aforementioned date, and that said Resolution is in full force and effect.
Dated: _________________________, 2024
_______________________________________, Secretary