TO: HONORABLE MAYOR FROM: Nanci Klein
AND CITY COUNCIL
SUBJECT: SEE BELOW DATE: March 21, 2022
Approved Date
3/24/2022
COUNCIL DISTRICT: 3
SUBJECT: ACCEPTANCE OF FEE INTEREST OF FOUR PARCELS OF REAL
PROPERTY ALONG PARK AVENUE BETWEEN SOUTH ALMADEN
BOULEVARD AND MARKET STREET, DECLARATION OF
PROPERTY AS EXEMPT SURPLUS LAND, AND AUTHORIZATION TO
SELL FEE INTEREST
RECOMMENDATION
Adopt a resolution:
(a) Accepting the Final Orders of Condemnation for the acquisition of a fee interest
through eminent domain proceedings of the four parcels consisting of approximately 6,224 square feet of real property located at Park Avenue, between South Almaden Boulevard and Market Street;
(b) Declaring approximately 14,351 square feet of real property located at Park Avenue, between South Almaden Boulevard and Market Street, as “exempt surplus land” under Cal. Gov. Code §54221(f)(1)(E) as the land is a former street, right of way, or easement, is conveyed to an owner of an adjacent property, and is surplus to the needs of the City;
(c) Authorizing the sale of the approximately 14,351 square foot portion of City-owned surplus property located on a portion of Park Avenue, between South Almaden Boulevard and Market Street, to SJ CityView LLC for $5,925,724; (d) Authorizing the City Manager, or her designee, to negotiate and execute a quitclaim deed and all other documents necessary to effectuate the sale of the property; and (e) Authorizing the use of up to $3.0 million from the sale proceeds for the City’s contribution toward the Park Avenue Reconfiguration Project, subject to the appropriation of funds.
COUNCIL AGENDA: 4/5/22
FILE: 22-447
ITEM: 8.2
HONORABLE MAYOR AND CITY COUNCIL
March 21, 2022
Subject: Acceptance of Fee Interest of Four Parcels of Real Property Along Park Avenue between South Almaden Boulevard and Market Street, Declaration of Property as Exempt Surplus Land, and Authorization to Sell Fee Interest
OUTCOME
Approval of the resolution allows the City to officially accept fee interest in four parcels of real property totaling approximately 6,224 square feet located at Park Avenue between South Almaden Boulevard and Market Street, as described in Attachment D. Upon the satisfaction of certain conditions and recording of a resolution of vacation as authorized by City Council on April 13, 2021, in Resolution No. 79967, the Subject Property described in Attachment B shall be abandoned as a public street. This vacation will allow the Transfer Property, described in Attachment E consisting of 14,351 square feet of City-owned real property on a portion of Park Avenue between South Almaden Boulevard and Market Street, to be declared as “exempt surplus land” and transferred to the adjacent landowner, SJ CityView LLC in conformance with California Surplus Land Act Gov. Code §54221(f)(1)(E), San José Municipal Code §4.20.070(A), and the Real Property Purchase and Sale and Cost Payment Agreement dated December 4, 2020 as approved by City Council on November 3, 2020.
EXECUTIVE SUMMARY
On September 3, 2019, the City Council approved a Determination of Consistency with the Downtown Strategy 2040 Final Environmental Impact Report (SCH # 2003042127) and Statement of Exemption for the realignment of Park Avenue (Park Avenue Reconfiguration Project) project to reconfigure the Park Avenue right-of-way between the Guadalupe River and South Market Street to reduce the area for vehicular circulation, maximize the area for pedestrians, and integrate the street with adjacent open space on private property.
On June 16, 2020, the City Council approved the CityView Plaza Project under Site Development Permit No. H19-016 (CityView Development), which allows for construction of an office development totaling approximately 3.8 million square feet of office and commercial space on an approximately 8.1 gross-acre site by SJ CityView LLC (Developer). The Developer included an approximately 14,348 square foot portion of real property located at Park Avenue (Subject Property) as part of its approved project plans, included as Attachment B. All parcels in the Subject Property are part of the Park Avenue right-of-way that is a part of the Park Avenue Reconfiguration Project.
In order to accomplish the land use plan as approved under H19-016, the Developer must acquire the Subject Property. For this to be achieved, the City needed to acquire by condemnation the fee interest in the four parcels consisting of approximately 6,224 square feet of real property (the Acquisition Parcels included as Attachment D) located within Park Avenue and subsequently convey its fee interests in those parcels along with its fee interests in the City-owned parcels to the Developer.
HONORABLE MAYOR AND CITY COUNCIL
March 21, 2022
Subject: Acceptance of Fee Interest of Four Parcels of Real Property Along Park Avenue between South Almaden Boulevard and Market Street, Declaration of Property as Exempt Surplus Land, and Authorization to Sell Fee Interest
On November 3, 2020, the City Council adopted a resolution authorizing the City Manager to negotiate and execute a Real Property Purchase and Sale and Cost Payment Agreement (Purchase and Reimbursement Agreement) requiring Developer to reimburse the City for City- incurred costs, fees, and expenses associated with the acquisition, through negotiation or through a condemnation action, of the Acquisition Parcels to support the CityView Development project.
On April 13, 2021, the City Council adopted a resolution conditionally vacating the Subject Property and four Resolutions of Necessity authorizing the City’s acquisition by eminent domain of the Acquisition Parcels to accomplish the land use plan as approved under H19-016. As authorized by the Resolutions of Necessity, the City proceeded to file in the Superior Court, County of Santa Clara (Superior Court), the Complaints in Eminent Domain against the four owners of the Acquisition Parcels. City Council additionally approved the Conditional Vacation of the Subject Property, authorizing its abandonment as a public street once certain conditions are met. The Developer is anticipated to meet these conditions in the next three to six months.
As of January 7, 2022, the City has received the Final Orders of Condemnation for the Acquisition Parcels, certifying that the City is the fee owner of the entirety of the 14,348 square foot Subject Property. With this action, the City will formally accept the Final Orders of Condemnation. There was no cost to the City to acquire the Acquisition Parcels by eminent domain as the Developer prefunded the reimbursement account to pay all costs associated with the acquisitions. To facilitate the land use plan as approved under H19-016, the City shall accept the Final Orders of Condemnation as formal acquisition of fee interest in the Acquisition Parcels, complete the previously conditionally approved vacation of the Subject Property, and convey the fee interest in the Subject Property and an additional three-square feet property adjacent to the Subject Property, totaling approximately 14,351 square feet (Transfer Property as shown in Attachment E) to the Developer.
City shall declare the Transfer Property “exempt surplus land” under Cal. Gov. Code §54221 (f)(1)(E) and sell the Transfer Property to Developer, conditioned upon the satisfaction of certain conditions and recording of a resolution of vacation as authorized by City Council on April 13, 2021, in Resolution No. 79967, for fair market value which has been determined to be $5,925,724, subject to $1,689,603 in reimbursable outlays already made by the Developer on the City’s behalf, for a net payment to the City of $4,236,121. The net proceeds from the sale of the Transfer Property, when completed, will be recognized in the General Fund. A portion of these proceeds, up to $3.0 million, will support the costs of improving the Park Avenue frontage along the City-owned Tech Interactive parcel per the Park Avenue Improvement Plan.
HONORABLE MAYOR AND CITY COUNCIL
March 21, 2022
Subject: Acceptance of Fee Interest of Four Parcels of Real Property Along Park Avenue between South Almaden Boulevard and Market Street, Declaration of Property as Exempt Surplus Land, and Authorization to Sell Fee Interest
BACKGROUND
Park Avenue Reconfiguration Project
In 2016, the City of San José was selected to be part of the Cities + initiative, which partnered municipalities with top architecture and design firms to address and reimagine social and environmental opportunities in their communities. This opportunity, presented to the City through its close relationship with the Knight Foundation, intended to support visionary thinking, world-class design, and actionable next steps to help reimagine and redevelop up to three key civic assets. The Cities + project brought together key Downtown stakeholders to explore and achieve the potential of San José central walking and commercial corridor running from San José State University via the Paseo de San Antonio and Park Avenue to the Guadalupe River Park Trail.
A number of major developments and financial opportunities made the Paseo/Park Avenue Corridor ripe for re-imagination and redevelopment. These developments included: support inside City Hall from elected officials and executive staff, transition of program management and implementation of the Hammer Theater to San José State University, newly planned developments in the vicinity of the corridor, engaged leadership at anchor institutions in the area (e.g., Adobe, SJ Museum of Art, the Tech Interactive, Team San José) and planning for a robust Diridon Intermodal Station. A clear, compelling, and community-supported vision and conceptual plan for this corridor would enable alignment and attraction of resources—including city, private, and philanthropic. The conceptual plan generated through input from a series of community and one-on-one meetings in 2016, referred to as the Park Paseo vision, evolved to a schematic design in 2018 and then design guidelines for the portion of the corridor between Plaza de Cesar Chavez and Woz Way by 2019. The Park Paseo design guidelines were then incorporated into development plans for the approximately 5.5 million square feet of commercial office space being proposed along the corridor.
On September 3, 2019, the City Council approved a Determination of Consistency with the Downtown Strategy 2040 Final Environmental Impact Report (SCH # 2003042127) and Statement of Exemption for the realignment of Park Avenue (Park Avenue Reconfiguration Project). Specific to the properties discussed in this memorandum, the street alignment along Park Avenue from Almaden Boulevard to Market Street will shift south, the median island will be removed, and the curb line to curb line width will be reduced from 94 feet to 34 feet in order to maximize the area for pedestrians. The City’s approved Park Avenue Reconfiguration Project will reduce the area for vehicular circulation, maximize the area for pedestrian and bike circulation, create more open space and landscaped areas with more trees and public space and seating, and regrade the street to achieve a flush curb with new paving and plantings to better integrate the street with the adjacent open space on the approved CityView Plaza development.
A diagram of the project plan is included as Attachment A. The Park Avenue Reconfiguration Project includes the following elements:
HONORABLE MAYOR AND CITY COUNCIL
March 21, 2022
Subject: Acceptance of Fee Interest of Four Parcels of Real Property Along Park Avenue between South Almaden Boulevard and Market Street, Declaration of Property as Exempt Surplus Land, and Authorization to Sell Fee Interest
• Reduced Vehicle Travel Area and Increased Bicycle and Pedestrian Areas: The Park Avenue Reconfiguration Project includes expansion of the median island and lane reduction (one in each direction) between the Guadalupe River and Almaden Boulevard to provide public open space. Between Almaden Boulevard and Market Street, the median island will be removed in order to reduce the curb-to-curb width (travel lanes will remain at two lanes, one in each direction) within a new shared use zone to accommodate bicycles and cars in the same lanes, and a new turn lane on Park Avenue at Almaden Boulevard which will allow the traffic light sequencing at this intersection to remain the same as current conditions. The alignment of the travel lanes/shared-use zone will shift northward midblock and enter the intersection at Market Street at the location of the current eastbound travel lanes. In addition, the project will include raised table-top intersections at Park Avenue/Market Street and Park Avenue/Almaden Boulevard. The shift in alignment and installation of table-top intersections will reduce traffic speeds and create improved pedestrian areas along Park Avenue. Wide pedestrian crossings at the shared-use zone will be identified with tactile paving and crosswalk markings. The area will be maximized for both pedestrian and bike circulation. • U
tility Relocation and Upgrade: The Park Avenue Reconfiguration Project requires the relocation and/or consolidation of existing wet and dry utility systems within the public right-of-way. In addition, storm water in ground flow-through planters will be added to the public right-of-way.
• F
lush Curb: Existing paving and sub-base will be removed, and the street regraded to achieve a flush curb with new paving and planting.
• P ublic Amenities: New amenities along this section of Park Avenue may include trees and planting areas, lighting, seating areas, and decorative street paving to orient this section of street to people instead of cars and define this area for pedestrian activity and special events. There will be a seamless public and private domain with the open space area along the CityView Plaza’s frontage.
• G reen Infrastructure: The newly reconfigured Park Avenue will include new biotreatment areas within the public right-of-way to treat stormwater runoff.
Each of the three new development projects fronting Park Avenue between Market Street and Almaden Avenue (200 Park, CityView, and Park Habitat) will construct the Park Avenue improvements adjacent to their project as a part of their public improvement plans. These three projects will build out the majority of the identified improvements. However, the City is responsible for the sidewalk and roadway improvements adjacent to The Tech Interactive, a City-owned facility.
Upon completion of the transaction, up to $3.0 million from the sale of this City-owned surplus property are recommended to be reinvested into the Park Avenue Reconfiguration project to complete this buildout and capitalize on the improvements undertaken by private ownership.
HONORABLE MAYOR AND CITY COUNCIL
March 21, 2022
Subject: Acceptance of Fee Interest of Four Parcels of Real Property Along Park Avenue between South Almaden Boulevard and Market Street, Declaration of Property as Exempt Surplus Land, and Authorization to Sell Fee Interest
Maintenance of the improvements along Park Avenue would be shared between each private property owner, the City and the Property-Based Improvement District through services delivered by Groundwerx. The City has received an estimate that the design along the Tech Interactive frontage, as currently proposed, will cost approximately $2 million to build; however, this design was completed in 2019-2020 and does not account for inflation, as this buildout is anticipated to occur between 2024 and 2026. Action will be brought forward for City Council consideration to reserve and/or allocate funding for the final project scope following completion of the vacation and sale of the Transfer Property.
CityView Plaza Development (File No. H19-016)
On June 16, 2020, the City Council adopted a resolution certifying the CityView Supplemental Environmental Impact report and approving the CityView Plaza Project under Site Development Permit No. H19-016 (CityView Development) located at the northeast corner of South Almaden Boulevard and Park Avenue (150 South Almaden Boulevard, San José). The CityView Development calls for the demolition of the approximately 960,567 square-foot CityView Plaza and construction of an office development totaling approximately 3.8 million square feet of office and commercial space above a five-level, subterranean parking garage on an approximately 8.1 gross-acre site by SJ CityView LLC (Developer). The subterranean parking garage serving the development is partially located beneath the property, described below, which is planned to be conveyed to the Developer.
The CityView development project is expected to create 2,600 full-time construction jobs a year during the five years of development and approximately 20,000 jobs at the campus once it is completed, strengthening downtown San José as a regional job center.
The Developer included the approximately 14,348 square foot Subject Property located in the Park Avenue right-of-way as part of its approved project plans. The Subject Property is located on Park Avenue, between Market Street and Almaden Boulevard, and has been an operating public right-of-way since at least 1886. On April 13, 2021, the City Council approved the Conditional Vacation of the Subject Property, authorizing its abandonment as a public street once the Developer’s construction agreement and bonds for the public improvements are executed, all existing utilities are relocated within the future right of way, and written confirmation from the Public Works Director and City Attorney certifies that the conditions have been satisfied. These conditions are anticipated to be met in the next three to six months.
The Site Development Permit’s conditions of approval require the Developer to improve its property’s frontage on Park Avenue consistent with the Park Avenue Reconfiguration Plan. The Developer does not own the Subject Property and desires to receive conveyance of the Subject Property to meet these requirements. A title report was issued for the Subject Property, determining that it is owned by the City of San José and four other parties that are deceased.
HONORABLE MAYOR AND CITY COUNCIL
March 21, 2022
Subject: Acceptance of Fee Interest of Four Parcels of Real Property Along Park Avenue between South Almaden Boulevard and Market Street, Declaration of Property as Exempt Surplus Land, and Authorization to Sell Fee Interest
Property Ownership and Eminent Domain Proceedings
The City of San José is the fee owner of a portion of the Subject Property containing approximately 8,124 square feet (City-Owned Parcels) and an additional approximately three- square feet that will remain as part of the public street, totaling approximately 8,127 square feet as described in Attachment C. The City has received Final Orders of Condemnation via eminent domain for the Acquisition Parcels, which comprise the remaining 6,224 square feet of the Subject Property. The City will be the fee owner of the Acquisition Parcels upon acceptance of the Final Orders of Condemnation.
In order to accomplish the land use plan as approved under H19-016, the Developer must acquire the Subject Property. The City and the Developer entered into a Real Property Purchase and Sale and Cost Payment Agreement dated December 4, 2020 (Purchase and Reimbursement Agreement) whereby the Developer agreed to pay the City fair market value to acquire the Subject Property once the Acquisition Parcels are under City ownership, and to reimburse the City for its costs and expenses incurred in acquiring the Acquisition Parcels, including retaining outside counsel. The Developer prefunded a reimbursement account to promptly reimburse the City for any City-incurred costs, fees, and expenses associated with the pursuit and completion of the condemnation action for the Acquisition Parcels as well as provide a portion of the Developer’s payment for the fair value purchase price to City early for the City to use to purchase the Acquisition Parcels. The early payment of Developer’s purchase price for City’s use to acquire the Acquisition Parcels would be credited against the Developer’s payment of fair market value to the City.
On April 13, 2021, City Council adopted a resolution conditionally vacating the Subject Property and four Resolutions of Necessity authorizing the City’s acquisition by eminent domain of the Acquisition Parcels to accomplish the land use plan as approved under H19-016. As authorized by the Resolutions of Necessity, the City proceeded to file in the Superior Court, County of Santa Clara (Superior Court), the Complaints in Eminent Domain against the four owners of the Acquisition Parcels.
Staff applied for an Order for Possession before Judgment which allowed the City to have possession of the parcels prior to the ultimate court order, or agreement, to transfer fee interest, which required City to deposit money to the State of California’s Treasury Condemnation Deposit Fund (State of California) equal to the statutory summary appraisal amount for each of the four parcels (Parcels A through D, as described in Attachment D), or as otherwise ordered by the Superior Court, as condition of granting the Order for Possession. Developer prefunded the reimbursement account with the amounts detailed in the below table to allow City to make the necessary deposits to the State of California.
HONORABLE MAYOR AND CITY COUNCIL
March 21, 2022
Subject: Acceptance of Fee Interest of Four Parcels of Real Property Along Park Avenue between South Almaden Boulevard and Market Street, Declaration of Property as Exempt Surplus Land, and Authorization to Sell Fee Interest
Acquisition Parcel Owner: Deposit to the State of CA:
Parcel A – James Smith $45,000
Parcel B – Jose M. Villar $100,000
Parcel C – Carmen I. De Quevada $25,000
Parcel D – Francois Baptiste Christian $45,000
Total Deposits: $215,000
Since no living heirs were discovered for James Smith (owner of Parcel A) and Francois Baptiste Christian (owner of Parcel D), the amounts paid to acquire the fee interest of Parcels A and D are the original deposits to the State of California, totaling $90,000 as detailed in the table above.
Since living heirs were discovered for Carmen I. De Quevada (owner of Parcel C) and Jose M.
Villar (owner of Parcel B), staff and Developer agreed to pay what they reasonably determined to be fair market value, which was $413 per square foot, for the acquisition of the identified descendants’ property interests. This required the City to submit payments to the living descendants to obtain the Final Orders of Condemnation from the Superior Court to record in the office of the County Recorder, which the Developer also provided funds for in the reimbursement account. The amounts paid to acquire the fee interest in these two parcels is detailed in the table below.
Parcel: Amount Paid to Heirs:
Parcel B – Jose M. Villar $1,176,637
Parcel C – Carmen I. De Quevada $322,966
Total Paid to Heirs: $1,499,603
There was no direct costs to the City of San José to acquire the Acquisition Parcels by eminent domain as the Developer prefunded the reimbursement account with an early payment of a portion of the Developers’ purchase price for the City to use to pay the deposit and acquisition amounts detailed in the tables above.
As part of the eminent domain process, the State of California is required to reimburse the condemner the deposits for any parcels for which heirs were identified and will retain deposits for the parcels for which heirs were not identified. As such, the State of California reimbursed the City the $25,000 deposit for the acquisition of Parcel C and the $100,000 deposit for the acquisition of Parcel B. The City subsequently refunded the $25,000 deposit for the acquisition of Parcel C to the Developer but has not yet refunded the $100,000 deposit for the acquisition of Parcel B to the Developer.
HONORABLE MAYOR AND CITY COUNCIL
March 21, 2022
Subject: Acceptance of Fee Interest of Four Parcels of Real Property Along Park Avenue between South Almaden Boulevard and Market Street, Declaration of Property as Exempt Surplus Land, and Authorization to Sell Fee Interest
ANALYSIS
Staff recommends the City declare the Subject Property and an additional approximately three- square feet adjacent to the Subject Property, totaling approximately 14,351 square feet (Transfer Property as shown in Attachment E) as “exempt surplus land” under Cal. Gov. Code §54221 as the land is surplus to the needs of the City. Staff recommends selling the Transfer Property to Developer, conditioned upon the satisfaction of certain conditions, and recording of a resolution of vacation as authorized by City Council on April 13, 2021, in Resolution No. 79967, for fair market value which staff has determined to be $5,925,724. In determining fair market value for the Subject Property, staff established a value of $413 per square foot based on a previously Council-approved sale to the same Developer for a comparable transaction of a separate, similarly situated City right-of-way located across the street from the CityView Development project. Staff also recommends including the adjacent three-square feet, which will remain as part of the public street, shown in Attachment E, with the Transfer Property at no cost so the City does not keep ownership of a three-square foot remnant sliver of undevelopable right of way.
Given the $413 per square foot value for the remaining 14,348 square feet of real property, the staff has determined $5,925,724, subject to any reimbursable outlays by Developer, to be the fair market value of the Transfer Property.
On November 19, 2019, prior to the COVID-19 pandemic-related economic impacts, the City Council approved a summary vacation and sale of a portion of land to support the 200 Park development, by the same Developer, at 200 Park Avenue, across the street from the CityView Development project. This sale contained a total of 13,204 square feet that was determined to not be independently developable, but 11,259 square feet was included in the proposed development.
City Council approved the sale of this property at the appraised value of $413 per square foot for the 11,259 square foot portion included in the proposed development.
It is in the interest of the City to include the adjacent three-square feet in the sale in order to remain consistent with the Park Avenue Reconfiguration Project and avoid retaining remnants of the property that will need to be maintained into the future. Since the adjacent additional three- square feet will remain as undevelopable public street and is not included in the project plans, staff recommends transferring this to the Developer for no additional charge.
Given that the Developer prefunded the reimbursement account with funds for the City to acquire the Acquisition Parcels through the eminent domain process, staff recommends that the Developer’s outlays be applied to the purchase price. The City was obligated to make any payments necessary to consolidate ownership of the Acquisition Parcels. Developer prefunding the reimbursement account avoided a situation in which the City would need to make the initial payments and then wait for Developer to reimburse the City. Developer paid $90,000 for the deposits to the State of California for the acquisition of Parcels A and D for which no heirs were identified, and $1,499,603 to the identified heirs for the acquisition of Parcels B and C. Since the City received the $100,000 deposit refund for Parcel B from the State of California, but has not
HONORABLE MAYOR AND CITY COUNCIL
March 21, 2022
Subject: Acceptance of Fee Interest of Four Parcels of Real Property Along Park Avenue between South Almaden Boulevard and Market Street, Declaration of Property as Exempt Surplus Land, and Authorization to Sell Fee Interest
yet reimbursed the Developer, staff recommends that the City retain these funds and apply the $100,000 to the purchase price. After applying the $1,689,603 in Developer’s early payments, the remaining balance owed to the City by Developer for the transfer of the Subject Parcels is $4,236,121.
Key terms of the previously approved Purchase and Reimbursement Agreement include:
1. SELLER: City of San José, a municipal corporation of the State of California
2. BUYER: SJ CityView LLC, a Delaware limited liability company
3. PROPERTY: Approximately 14,351 square feet of real
property located on Park Avenue, more
particularly described in Attachment C
4. PRICE: $5,925,724 total; $4,236,121 to City after
applying $1,689,603 in Developer outlays
5. FEES: Buyer shall be responsible for the full payment of all title insurance, escrow, recording fees,
documentary transfer taxes, and other fees and
charges associated with this transaction
6. AS-IS: Buyer accepts the property “As is, where is,
with all faults”
7. INDEMNITY: Buyer agrees to protect, defend, indemnify, and hold harmless City from and against all
claims
While not part of the Purchase and Reimbursement Agreement with the Developer, up to $3.0 million from the sale proceeds is recommended to be allocated to pay for the City’s portion of the Park Avenue Reconfiguration Project. The recognition of the sale proceeds and the allocation of the funding to the project will be brought forward as part of a future budget process once the transaction is complete and the funds are received by the City.
HONORABLE MAYOR AND CITY COUNCIL
March 21, 2022
Subject: Acceptance of Fee Interest of Four Parcels of Real Property Along Park Avenue between South Almaden Boulevard and Market Street, Declaration of Property as Exempt Surplus Land, and Authorization to Sell Fee Interest
CONCLUSION
Staff recommends that the City Council adopt the proposed resolutions to accomplish the land use plan as approved under H19-016. The sale of the Transfer Property will allow Developer to develop the area consistent with its future development plans and in conformance with the Park Avenue Reconfiguration Project, allowing City to reconfigure the north side of Park Avenue into a pedestrian friendly thoroughfare with greater separation between pedestrians, cyclists, cars, and the planned commercial buildings while supporting the construction of the CityView Plaza project, consisting of approximately 3.8 million square feet of office space and associated retail and ancillary uses on an 8.1-acre site located in the northeast corner of South Almaden Boulevard and Park Avenue.
EVALUATION AND FOLLOW-UP
After receiving written confirmation from the Director of Public Works and the Office of the City Attorney that the conditions to the previously approved vacation have been satisfied, the City Clerk will record the resolution of vacation, at which time the vacation will be complete.
After the resolution of vacation is recorded, staff will proceed with the sale of the Transfer Property per the terms and conditions of the Real Property Purchase and Sale and Cost Payment Agreement dated December 4, 2020, by and between Developer and the City, and the terms further outlined in this memorandum. Subsequent recommendations will be brought to City Council at the appropriate time to recognize the net proceeds from the sale of the Transfer Property in the General Fund, and to reserve and/or allocate funding for The Tech Interactive frontage improvements and potential relocation of the main entrance to Park Avenue.
CLIMATE SMART SAN JOSE
The recommendation in this memorandum aligns with one or more Climate Smart San José energy, water, or mobility goals.
PUBLIC OUTREACH
This memorandum will be posted on the City’s Council Agenda website for the April 5, 2022 Council Meeting.
COORDINATION
This memorandum has been coordinated with the Department of Planning, Building, and Code Enforcement, the City Manager’s Budget Office, and the City Attorney’s Office.
HONORABLE MAYOR AND CITY COUNCIL
March 21, 2022
Subject: Acceptance of Fee Interest of Four Parcels of Real Property Along Park Avenue between South Almaden Boulevard and Market Street, Declaration of Property as Exempt Surplus Land, and Authorization to Sell Fee Interest
COMMISSION RECOMMENDATION/INPUT
No commission recommendation or input is associated with this action.
COST SUMMARY/IMPLICATIONS
After crediting the early payment of purchase funds already paid by Developer, the net proceeds from the sale of the Transfer Property are $4,236,121. This amount will be deposited in the General Fund upon final vacation. Up to $3.0 million of these proceeds are recommended to be allocated toward improving the Park Avenue frontage along the City-owned Tech Interactive parcel per the Park Avenue Improvement Plan. This City investment will supplement the improvements that the adjacent property owners are undertaking to complete the buildout of the Park Avenue Improvement Plan. The frontage along the City’s Tech Interactive parcel is the remaining frontage of this section of Park Avenue that is unaccounted for in the completion of these improvements. Staff will bring forward recommendations to City Council at the appropriate time to recognize the net proceeds from this property sale, and to reserve and/or allocate funding for The Tech Interactive frontage improvements and the potential relocation of its main entrance to Park Avenue. Should the sale be completed in fiscal year 2021-2022, excess proceeds will be credited toward current estimates for the sale of surplus properties as a component of the General Fund ending fund balance for fiscal year 2021-2022.
CEQA
Supplemental Environmental Impact Report to the Downtown Strategy 2040 Final Environmental Impact Report (Resolution No. 79586) for CityView, File No. H19-016; Addendum to the Downtown Strategy 2040 Final Environmental Impact Report for 200 Park Avenue Office Project, File No. H18-045; Determination of Consistency to the Downtown Strategy 2040 Final Environmental Impact Report for the Park Avenue Reconfiguration Project, File No. PP19-071.
/s/
NANCI KLEIN
Director of Economic Development and
Cultural Affairs
For questions, please contact Kevin Ice, Senior Manager, Real Estate Services, at [email protected].
HONORABLE MAYOR AND CITY COUNCIL
March 21, 2022
Subject: Acceptance of Fee Interest of Four Parcels of Real Property Along Park Avenue between South Almaden Boulevard and Market Street, Declaration of Property as Exempt Surplus Land, and Authorization to Sell Fee Interest
Attachments:
A - Diagram of Park Avenue Reconfiguration Project
B - Map of Subject Property
C - Plat Map of “City-Owned Parcel” and Additional Adjacent Three-Square Feet D - Plat Map of “Acquisition Parcels”
E - Plat Map of “Transfer Property”
Attachment A
Diagram of Park Avenue Reconfiguration Project
Attachment B
Map of “Subject Property”
Attachment B (continued)
Map of “Subject Property”
Attachment C
Plat Map of “City-Owned Parcel” and Additional Adjacent Three-Square Feet
Attachment C (continued)
Plat Map of “City-Owned Parcel”
Attachment C (continued)
Plat Map of “City-Owned Parcel”
Attachment D
Plat Map of “Acquisition Parcels”
Attachment D (continued)
Plat Map of “Acquisition Parcels”
Attachment E
Plat Map of “Transfer Property”