Actions Related to Real Property Located at
Park Avenue Between South
Almaden Boulevard and Market Street.
Item 8.2
April 5, 2022
Nanci Klein, Director, Economic Development and Cultural Affairs Kevin Ice, Senior Manager, Real Estate Services
Recommendations
• Accept the Final Orders of Condemnation for the acquisition of a fee interest through eminent domain proceedings of the four parcels consisting of 6,224 square feet of real property located at Park Avenue, between South Almaden Boulevard and Market Street
• Declare approximately 14,351 square feet of real property located at Park Avenue, between South Almaden Boulevard and Market Street, as “exempt surplus land”
• Authorize 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
• Authorize the use of up to $3 million from the sale proceeds for the City’s contributions toward the Park Avenue Reconfiguration Project, subject to the appropriation of funds
Background
• CityView site development permit for construction of 3.8 million square feet of office space approved June 16, 2020
• CityView project included a 14,348 square foot area of Park Avenue in approved plans
– Allows implementation of the Park Avenue Reconfiguration Project • Council authorized the Real Property Purchase and Sale and Cost Payment Agreement on November 3, 2020
• Council approved the conditional vacation of the Subject Property and adopted four Resolutions of Necessity authorizing City to acquire the Acquisition Parcels through eminent domain April 3, 2021
• City completed eminent domain to acquire 6,224 square feet and assemble ownership of the 14,348 square foot area
Park Avenue Reconfiguration Project
• Park Avenue reconfiguration establishes a pedestrian focus – Goal to enhance pedestrian experience from SJSU to Guadalupe River Trail
Transfer Property Exhibit
Acquisition Parcels Exhibit
Overview
• City to vacate the right of way and transfer to developer for fair market value of $5,925,724
– $413 per square foot
• Developer prefunded a reimbursement account to pay all costs associated with acquiring the Acquisition Parcels via eminent domain
– Developer advanced $1,689,603 as early payment to cover City’s acquisition costs through eminent domain
• Developer owes remaining balance of $4,236,121 to the City
Next Steps
• City will finalize the sale of the Transfer Property
pending vacation of the Subject Property
• Staff will return to Council to:
– Recognize the net proceeds from the sale of the Transfer Property in the General Fund
– Reserve and/or allocate up to $3 million in funding for City’s contributions toward the Park Avenue
Reconfiguration Project
Actions Related to Real Property Located at
Park Avenue Between South
Almaden Boulevard and Market Street.
Item 8.2
April 5, 2022
Nanci Klein, Director, Economic Development and Cultural Affairs Kevin Ice, Senior Manager, Real Estate Services