1 APPROVED AS TO FORM AND LEGALITY___________________________CITY ATTORNEYS OFFICEOAKLAND CITY COUNCILORDINANCE NO. ________________C.M.S.AN ORDINANCE AUTHORIZING THE CITY ADMINISTRATOR TO EXECUTE A SECOND AMENDMENT TO THE DISPOSITION AND DEVELOPMENT AGREEMENT (LONGFELLOW CORNER PROJECT) BETWEEN THE CITY OF OAKLAND AND LONGFELLOW CORNER, L.P., AT 3801-3807 AND 3823-3829 MARTIN LUTHER KING JR. WAY, TO EXTEND THE OUTSIDE CONSTRUCTION COMPLETION DATE BY SIX MONTHS TO SEPTEMBER 1, 2026; AND ADOPTING CALIFORNIA ENVIRONMENTAL QUALITY ACT FINDINGSWHEREAS, the City and Developer entered into that certain Disposition and Development Agreement (Longfellow Corner Project) dated as of July 31, 2023, recorded in the Official RecordsOriginal DDA; andWHEREAS, the Original DDA relates to certain real properties commonly known as 3801-3807 and 3823-3829 Martin Luther King Jr. Way, City of Oakland, California, which were Propertyto develop a mixed-use affordable housing project Project; andWHEREAS, the Original DDA was amended by that certain First (Administrative) Amendment to Disposition and Development Agreement (Longfellow Corner Project) dated as of May 16, 2024, recorded in the Official Records on May 17, 2024 as Instrument No. 2024062030 First Amendment; andWHEREAS, the financing for development of the Project closed on May 16, 2024 and construction is underway, which includes loans from the City for the Project; andWHEREAS, the Original DDA, as amended by the First Amendment, and this Second ; andWHEREAS, as a condition of a construction loan of up to Fifty-One Million Seventy-Four Thousand Six Hundred Forty-Nine Dollars ($51,074,649), U.S. Bank National Association, a Construction Lenderconstruction completion date of September 1, 2026; and
2 WHEREAS, pursuant to Section 3.1(c) of the DDA, only the City Council, in its sole and absolute discretion, may extend the Outside Completion Date (identified in the Schedule of Performance as February 28, 2026); and WHEREAS, the City and the Developer desire to amend the Schedule of Performance to revise the construction ; and NOW, THERFORE, THE CITY COUNCIL OF THE CITY OF OAKLAND DOES ORDAIN AS FOLLOWS: SECTION 1. The City Council hereby authorizes the City Administrator to (a) execute a Second Amendment to the DDA to extend the Outside Completion Date by six (6) months from February 28, 2026 to September 1, 2026; and (b) negotiate and execute such other additions, amendments or other modifications to the foregoing document that the City Administrator, in not materially increase the obligations or liabilities of the City, and are necessary or advisable to complete the transaction contemplated by this Ordinance; and (c) to negotiate and execute such implement the DDA and development of the Property in order to consummate the transaction in accordance with this Ordinance, or to otherwise effectuate the purpose of this Ordinance and its basic purposes. SECTION 2. The City Council hereby finds that this action is exempt under California since the action under consideration is limited to the Second Amendment to the DDA, an extension of an existing real estate contract, which has no reasonable possibility of an effect on the environment. SECTION 3. All agreements associated with the Property and the Project shall be the City and shall be placed on file with the City Clerk. SECTION 4. The recitals contained in this Ordinance are true and correct and are an SECTION 5. The record before this Council relating to this Ordinance, includes without limitation, the Agenda Report for this item and the attachments thereto. SECTION 6. Severability. If any section, subsection, sentence, clause or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of the Chapter. The City Council hereby declares that it would have passed this Ordinance and each section, subsection, clause or phrase thereof irrespective of the fact that one or more other sections, subsections, clauses or phrases may be declared invalid or unconstitutional.
3 SECTION 7. Effective Date. This Ordinance shall become effective immediately on final adoption if it receives six or more affirmative votes; otherwise it shall become effective upon the seventh day after final adoption. IN COUNCIL, OAKLAND, CALIFORNIA, PASSED BY THE FOLLOWING VOTE: AYES FIFE, GALLO, JENKINS, KALB, KAPLAN, RAMACHANDRAN, REID, AND PRESIDENT FORTUNATO BAS NOES ABSENT ABSTENTION ATTEST: ASHA REED City Clerk and Clerk of the Council of the City of Oakland, California Date of Attestation:
4 NOTICE AND DIGEST
AN ORDINANCE AUTHORIZING THE CITY ADMINISTRATOR TO
EXECUTE A SECOND AMENDMENT TO THE DISPOSITION AND
DEVELOPMENT AGREEMENT (LONGFELLOW CORNER PROJECT)
BETWEEN THE CITY OF OAKLAND AND LONGFELLOW CORNER,
L.P., AT 3801-3807 AND 3823-3829 MARTIN LUTHER KING JR. WAY, TO
EXTEND THE OUTSIDE C ONSTRUCTION COMPLETION DATE BY
SIX MONTHS TO SEPTEMBER 1, 2026; AND ADOPTING CALIFORNIA
ENVIRONMENTAL QUALITY ACT FINDINGS
This Ordinance authorizes a second amendment to the Disposition and Development Agreement (Longfellow Corner Project ) between the City of Oakland and Longfellow Corner, L.P. , for development of a mixed -use affordable housing project at 3801-3807 and 3823 -3829 Martin Luther King Jr. Way, City of Oakland, California, to extend the outside construction completion date by six (6) months from February 28, 2026 to September 1, 2026 ; and adopting California Environmental Quality Act findings.