HANNA & VAN ATTA
JOHN PAUL HANNA ATTORNEYS AT LAW
A PARTNERSHIP OF PROFESSIONAL CORPORATIONS TELEPHONE
A PROFESSIONAL CORPORATION 525 MIDDLEFIELD ROAD, SUITE 210 650) 321-5700 DAVID M. VAN ATTA MENLO PARK, CALIFORNIA 94025
www.hanvan.com FACSIMILE
A PROFESSIONAL CORPORATION (650) 321-5639
WILLIAM R. GARRETT
A PROFESSIONAL CORPORATION
December 18, 2024
City of Palo Alto
250 Hamilton Avenue
Palo Alto, CA 94301
Department Yang, Esq. City Atorney and Jonathan Lai, Director - Planing and Development RE: Sheridan Plaza BMR Buyout
Dear Albert and Jonathan:
We seem to have a disconnect between our discussions and the documentation that we have been discussing as to the buyout of the BMR requirements for the Sheridan Plaza.
The Subdivision Improvement Agreement, dated and executed on September 11, 1995, recorded in the Official Records of Santa Clara County on October 27, 1995, after the making of resolution made as of April 3, 1995 by the City Council enacting Ordinance No. 4268 ("City Resolution"), clearly laid out and set forth an agreement between the parties [the City of Palo Alto and Court House Plaza Company, a limited partnership, the then Sheridan Plaza ownership] as to the buy out of the BMR requirements, to be based upon 8.33% of the valuation of the property as a rental apartment and clearly not as a condominium.
This was expressly agreed upon and negotiated at the time, decades ago. We note that this wording in the Subdivision Improvement Agreement was based upon a letter agreement dated February 3, 1995 from the City of Palo Alto to Harold Hohbach from Kenneth R. Schreiber, Director of Planning and Community Development. This letter clearly stated that this was the agreement of the City as to this particular issue.
It is inappropriate and legally unsound for the City now to fall back on somewhat ambiguous wording in the City Resolution as being the touchstone for the payment of this buyout of the BMR fee rather than the provisions of a subsequent agreement that clearly set forth the agreed upon intent of the parties.
We adamantly disagree with the City's stance that the City should obtain an appraisal of the property as a condominium project as well as a rental property. That was clearly not the intent of the agreement made and executed by the City and the Sheridan Plaza ownership, signed off by various parties including the city attorney's office at the time and recorded in the Official Records of the County.
We hope that we can reach resolution of this matter promptly. If you have the time and inclination to do so, let's talk tomorrow to resolve this matter.
Best regards,
David M. Van Atta
cc: Sheridan Plaza LLC Marcus Wood and Doug Hohbach