APPROVED AS TO FORM AND LEGALITY
___________________________
CITY ATTORNEY’S OFFICE
OAKLAND CITY COUNCIL
RESOLUTION NO. ______________ C.M.S.
INTRODUCED BY COUNCILMEMBER CARROLL FIFE
RESOLUTION (1) AUTHORIZING TH E CITY ADMINISTRATOR TO
NEGOTIATE TERMS FOR AN EXCLUSIVE NEGOTIATING
AGREEMENT WITH COSTCO WH OLESALE CORPORATION AND
DECA COMPANIES, LLC TO DEVELOP A COSTCO WHOLESALE AND
RETAIL GENERAL MERCHANDISE FACILITY IN THE NORTH
GATEWAY DEVELOPMENT AREA OF THE FORMER OAKLAND
ARMY BASE AND (2) DECLARING THE PROPERTY EXEMPT
SURPLUS LAND
WHEREAS, on July 1, 2000, the Redevelopment Agency adopted the Redevelopment Plan for the Oakland Army Base Redevelopmen t Project ("Oakland Army Base Redevelopment Plan"); and
WHEREAS, one of the goals included in the Oakland Army Base Redevelopment Plan was subdividing the site into parcels suitable for modern, integrated development; and
WHEREAS, one of the proposed actions included in the Oakland Army Base Redevelopment Plan was redevelopment of land by private enterprise; and
WHEREAS, the City acquired the 22-acre Nort h Gateway parcel from the federal government on August 8, 2003; and
WHEREAS, the potential development of wholes ale and retail general merchandise facility in the North Gateway development area of the former Oakland Army Base would improve the economic conditions in the Area; and
WHEREAS, Oakland has expressed interest in development of a Costco store on the North Gateway site; and
WHEREAS, the City previously entered into Exclusive Negotiating Agreement and Lease and Disposition Development Agreement (L/DDA) with two recycling firms to relocate their operations to the parcel; and
WHEREAS, on February 12, 2012, the City ente red into an Exclusive Negotiating Agreement (North Gateway Recy clers Project) with CASS and California Waste Solutions
2 (“CWS”) (the “Joint ENA”), to jointly relocate their recycling operations to the North Gateway Area of the Oakland Army Base but that joint ENA expired in 2016; and
WHEREAS, the City then entered into individual ENAs with the recyclers and eventually an L/DDA with CWS in 2021, but there are no longer any agreements with the two entities concerning the North Gateway site; and
WHEREAS, there have also been multiple effort s to utilize the North Gateway site for homeless shelter intervention(s) but the site is subject to deed restric tions that prohibit any residential housing unless a waiver is obtained from the Department of Toxic Substances Control (DTSC) and extensive toxics mitigation is completed; and
WHEREAS, an Informational Report was presented to the City C ouncil on June 7, 2022 (the “Informational Report”) ou tlining the process and associat ed costs to waive the deed restrictions prohibiting residential housing; and
WHEREAS, the crisis of homelessness is immediate and because of the time it would take to prepare this site for human us e, experts have argued that it is neither timely, nor financially or administratively feasible for the City to secure a DTSC waiver and c onduct the necessary site mitigation; and
WHEREAS, on the December 17, 2024, the City Council approved Ordinance No. 13829 C.M.S., authorizing the City Administrator to negotiate and execute a lease agreement with UCSF Benioff Children’s Hospital Oakland for 8.4-acre of the North Gateway property for a temporary helipad/helistop for emergency transportation services for an approximately four year term; and
WHEREAS, the City finds that exploring longer term uses for the parcel will not conflict with the agreement pursuant to Ordinance No. 13829; and
WHEREAS, bringing a wholesale retailer to the s ite is important for jobs, tax revenue, development, and economic vitality to Oakland; and
WHEREAS, improving access to retail, with more op tions for area residents to shop in Oakland, will strengthen the economy and improve quality of life, and has been a recommendation of multiple economic and planning reports; and
WHEREAS, the City of Oakland, Costco Wholesale Corporation, and Deca Companies, LLC wish to enter into a period of preliminary study and negotiations, understanding that this does not constitute a binding commitment on the part of the City to any project or developer for the property; and
WHEREAS, under the California Surplus Land Act (Government Code Section 54220 et seq.) (the “Surplus Land Act”), surplus property is defined as land owned by any local agency no longer necessary for the agency’s use; and
WHEREAS, based on the results of the discussion of terms for a potential ENA, the City may opt to waive the competitive process pursu ant to Chapter 2.42 of the Oakland Municipal Code; now therefore be it
3 RESOLVED: That the City Council hereby authorizes the City Administrator to negotiate the terms of an Exclusive Negotiating Agreemen t with Costco Wholesale Corporation and Deca Companies, LLC, for purposes of studying and evaluating the feasibility of, and negotiating terms and conditions for the potential development of a Costco Wh olesale and Retail General Merchandise facility in North Gateway Development Area; and be it
FURTHER RESOLVED: That upon successful negotiation, the proposed terms of an Exclusive Negotiating Agreement will be pres ented to the City Council for approval and authorization to enter into an Exclusive Ne gotiating Agreement along with the adoption of requisite findings for a waiver of the competitive process under Chapter 2.42; and be it
FURTHER RESOLVED: That the City Council finds and determines on an independent basis, that the property is exempt surplu s land pursuant to Government Code Section 54221(f)(1)(J) of the Surplus Land Act because the pr operty is subject to a valid legal restriction not imposed by the City which pr ohibits any residential housing a nd, for the reasons outlined in the Informational Re port, there is no f easible method to satisfactor ily mitigate or avoid the prohibition on the site; and be it
FURTHER RESOLVED: That the City has independently reviewed and considered this environmental determination, and the City finds and determines that this action will. not result in a direct or indirect physical ch ange in the environment and does not in-and of-itself constitute a "project" pursuant to the Calif ornia Environmental Quality Act (CEQA) Guidelines Section 15378; and be it
FURTHER RESOLVED: That the City Council finds and determines any proposed disposition of the Property will require further disc retionary actions of the City Council, and the City retains full discretion, following conclusion of the negotiation of terms for an Exclusive Negotiating Agreement to proceed with dispositi on of its interest in the subject property in compliance with the California Environmental Quality Act ("CEQA"); and be it
FURTHER RESOLVED: That the City Administrator is further authorized to take whatever action is necessary wi th respect to the negotiation of the terms for an Exclusive Negotiating Agreement consistent with this Resolution and its basic purposes.
IN COUNCIL, OAKLAND, CALIFORNIA,
PASSED BY THE FOLLOWING VOTE:
AYES - BROWN, FIFE, GALLO, HOUSTON, RAMACHANDRAN, UNGER, WANG, AND
PRESIDENT JENKINS
NOES –
ABSENT –
ABSTENTION –
ATTEST:
ASHA REED
City Clerk and Clerk of the Council of the
City of Oakland, California