INTRODUCED BY COUNCILMEMBER LOREN TAYLOR
RESOLUTION AUTHORIZING THE CITY ADMINISTRATOR TO
NEGOTIATE THE REMOVAL, AMENDMENT, OR WAIVER OF
RESTRICTIONS IMPOSED ON THE CITY-OWNED 7101 FOOTHILL
BOULEVARD PARCEL (APN 039-3291-020) THAT RESTRICTS
OCCUPANCY BY RESTAURANTS THAT COMPETE WITH
MCDONALDS AND TACO BELL IN ORDER TO SIGNIFICANTLY
FURTHER ECONOMIC DEVELOPMENT AND AFFORDABLE
HOUSING IN EAST OAKLAND
WHEREAS, in October 2008 the former Oakland Redevelopment Agency (Agency) executed an agreement of purchase and sale with East Oak Land Associates, LLC, for an approximately 1.22 acre parcel of land located on the northwest comer of 73rd Avenue & Foothill Boulevard, Oakland, California (APN 039-3291-020) (Property) within the Eastmont neighborhood in Council District 6 for $2,214,755 pursuant to Agency Resolution No. 2008-0063; and
WHEREAS, the Property abuts the Eastmont Town Center and is adjacent to AC Transit’s Eastmont Transit Center and was originally part of an old Chevrolet auto assembly plant from 1916 to 1963, and in 2010, the City demolished the Firestone tire center that was on the site; and WHEREAS, over the next decade, the City explored several mixed use and commercial development proposals for the Property, including an education center shared with a new public library branch, and a Peralta Community College District satellite campus for Merritt College, and a retail center anchored by a Starbucks community store with dedicated classrooms for local rlliof 1 aK ril/'l lln +*•<-» i«i«rr AlftfirtAn Taw ■rfAii+Ui A /-jnnnnmfifp Ia
benefits Doolan Foster Enterprises, Inc., dba Taco Bell (Taco Bell) and its franchise located at 6900 Bancroft Avenue in the Eastmont Town Center pursuant to a ground lease between Eastmont Building Associates and Taco Bell, and the covenant prohibits the Property be used for a food outlet selling more than Ten Percent (10%) Mexican style food; and WHEREAS, the Taco Bell restriction does not apply to a lease with El Polio Loco nor any lease for retail restaurant use within the food court of the Eastmont Town Center mall; and WHEREAS, on April 18,2017, the City Council authorized a prior Exclusive Negotiating Agreement (ENA) with Portfolio Development Properties LLC, or related affiliates, for one year, with one optional six-month administrative extension, for the potential disposition and development of a retail project on the City-owned Property pursuant to Resolution No. 86688 C.M.S.; and
WHEREAS, due to the McDonald’s and Taco Bell restrictions that restrict occupancy on the Property by restaurants that compete, the proposed economic development of the site for use by Starbucks Coffee as a retail store and youth training center where local nonprofits would be able to conduct job-skills training classes for youth pursuant to the 2017 ENA was not realized; and
WHEREAS, in April 2020, the City activated the Property through a license agreement with the Black Cultural Zone Collaborative, a partnership of more than 20 local nonprofits that together established and manage what is currently known as Liberation Park and brings a variety of services to the Eastmont neighborhood, including the Akoma Outdoor Market, free meals distributed by the World Central Kitchen, COVID-19 testing by Umoja in Health; and WHEREAS, on July 21, 2020, the City Council declared the Property to be surplus land under the California Surplus Land Act (Government Code sections 54220 et seq.) (SLA) and Art AA + «rt«n frt A a W-I vt 1 r -wtti+Ia 4-Ia «-* CT A • 4
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is in the public interest; and
WHEREAS, on August 26, 2021, McDonald’s denied the City’s request to waive or otherwise the permit the sale of any food item prohibited by the covenant or restriction (Attachment 3); and
WHEREAS, due to the McDonald’s and Taco Bell continued restrictions that restrict occupancy on the Property by restaurants that compete, the proposed development of the site as a food serving and food preparing Market Hall site pursuant to the 2021 ENA is impacted; now, therefore, be it
RESOLVED: That City Administrator is authorized to negotiate the removal, amendment, or waiver of restrictions imposed on the City-owned 7101 Foothill Boulevard parcel (APN 039- 3291-020) that restricts occupancy by restaurants that compete with McDonald’s and Taco Bell in order to significantly further economic development and affordable housing in East Oakland; and be it
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IN COUNCIL, OAKLAND, CALIFORNIA,
PASSED BY THE FOLLOWING VOTE:
FIFE, GALLO, KALB, KAPLAN, REID, TAYLOR, TFIAO AND —AYES- NOES - (p
ABSENT-^
ABSTENTION -dp
- v ^30%
ATTEST:
City Clerk and Clerk of the Council of the
City of Oakland, California