Exclusive Negotiating Agreement
between the City of National City and
Tower 999, LLC
JANUARY 17, 2023
Carlos Aguirre, Housing Authority Director
Background
City-owned property
• Generally located at 921, 925 and 929 National City Boulevard (APN’s 556-471-03 and 556-471-04)
• A Request for Proposals for development was issued by the City in March 2017 - no proposals were received
• Southwestern College included the parcel for expansion in 2018 Facilities Master Plan and City continued conversations about student housing development
Developer-owned property
• Generally located at 999 National City Boulevard (APN 556-471-17) • Developer approached City about project with City-owned property o City Council felt it was appropriate to enter negotiations if the City-owned property can apply the surplus land act and
Developer coordinate with Southwestern College on potential partnership
• Developer desires to purchase City-owned property through the surplus land act with intent to develop a mixed-use and mixedincome project 2 January 17, 2023
N
City-owned property
Developer-owned property
Tower 999 ENA
Tower 999 Project • Seven-story, mixed-use building
(119,800 +/- sq. feet)
• 9,300 +/- sq. feet of ground floor
retail/commercial space
• 127 residential dwelling units
o 60% market rate apartments and 40% affordable
units
• Three parking spaces for retail component and
looking at options to lease additional parking
o High-frequency transit stops along 8th Street
• Program includes the following amenities:
o Podium apartments, laundry room and a large,
central plaza on the 4th floor
o 7,800 gross square-foot rooftop terrace
• Preliminary concept and will be further refined
during the ENA process
o Initiate a conformance review with additional
property
3 Tower 999 ENA January 17, 2023
PRELIMINARY CONCEPT
Exclusive Negotiation Agreement (“ENA”)
• Make sure that Tower 999, LLC is in position to move forward with the appropriate financial commitments and capacity to develop the Project • Guide the process of negotiations through the establishment of exclusive rights, negotiation timelines, development objectives, limitations, and responsibilities • Structure mutually-acceptable terms and conditions for Project Agreement that would set forth terms and conditions for the sale of the City-owned property • Require Developer to pay costs of City consultants needed throughout the ENA period and legal costs for preparing Project agreements • Establishes an Exclusive Negotiation Period that commences on January 17, 2023 and ends on July 17, 2023 with the potential to extend
• Helps ensure compliance with the affordability requirements of the Surplus Land Act 4 Tower 999 ENA January 17, 2023
Affordable Housing Requirements of Surplus
Land Act Exemption
5 2022 Area Median Income (AMI)
San Diego County: $106,900
Family
Size
80% of AMI
Low Income
50% of AMI
Very Low Income
30% of AMI
Extremely Low
Income
1 72,900 45,550 27,350
2 83,300 52,050 31,250
3 93,700 58,550 35,150
4 104,100 65,050 39,050
5 112,450 70,300 42,200
6 120,800 75,500 45,300
7 129,100 80,700 48,450
8 137,450 85,900 51,550
Exemption Category 2:
Land destined for affordable housing
If seeking an exemption under Government Code
section 54221, subdivision (f)(1)(A), is the local
agency transferring land for a development where:
(i) At least 80% of the property's area is used for
housing;
(ii) At least 40% of units are affordable to
households at or below 60% of AMI;
(iii) At least half of the above affordable units are
affordable to very low-income households; and
(iv) Affordable units are subject to at least a 30-
year regulatory agreement
Tower 999 ENA January 17, 2023
ENA Obligations
• Negotiation of the price and terms of sale for the City Property (both) • Appraisal of the City Property (both)
• Approvals from all taxing entities (Developer)
• Due diligence (Developer)
• Proposed schedule for development of the Project (Developer) • Financial pro forma (Developer)
• Preliminary evidence of financially viability to complete the development of the Project (Developer)
• Name and qualifications of the proposed architect for the Project (Developer) • Project refinement prior to entry into the Project Agreement (Developer) • E.g., concept schematic design and site plan, detailed Project pro forma, evidence of Developer financial capacity to complete the Project, and detailed descriptions of the responsibilities, schedule, and financial parameters for the design and development of the Project costs and expenses of activities related to the ENA • Draft mutually acceptable Project agreements for the development of the Project (both) Staff Recommendation
Approve a Resolution entitled, “Resolution of the City Council of the City of National City, California authorizing the City Manager to execute an Exclusive Negotiating Agreement by and between the City of National City and Tower 999, LLC, a Nevada limited liability company for the disposition of City-owned real property located at 921, 925, and 929 National City Boulevard and development of a seven-story, mixed use building with approximately 9,294 square feet of retail/commercial space and 127 rental dwelling units.” 7 Q&A
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