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Council Agenda: 9/27/2022
Item No.: 8.2
DRAFT—Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final Document.
RESOLUTION NO. ______________
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN
JOSE DECLARING THE CITY-OWNED PROPERTY
LOCATED AT 1488 NORTH FIRST STREET “EXEMPT
SURPLUS LAND” UNDER CAL . GOV. CODE
§54221(F)(1)(D), SAN JOSE M UNICIPAL CODE § 4.20.080
AND IN ACCORDANCE WITH COUNCIL POLICY 7 -
13(D)(3); AUTHORIZING THE SALE OF THE CIT Y-
OWNED PROPERTY SURESTA Y HOTEL BY BEST
WESTERN, LOCATED AT 1488 NORTH FIRST STREET
AND IDENTIFIED AS ASSESSOR’S PARCEL NUMBER
235-02-034, TO THE SANTA CLARA COUNTY HOUSING
AUTHORITY FOR ONE DOLLAR ($1); AUTHORIZING
THE CITY MANAGER OR HER D ESIGNEE TO
NEGOTIATE AND EXECUTE THE PURCHASE AND S ALE
AGREEMENT, DEED AND ALL O THER DOCUMENTS
NECESSARY TO COMPLETE THE SALE OF 1488 NORTH
FIRST STREET TO THE SANTA CLARA CO UNTY
HOUSING AUTHO RITY; AND AUTHORIZING THE
DIRECTOR OF HOUSING OR HER DESIGNEE TO
NEGOTIATE AND EXECUTE AN AGREEMENT WITH
LIFEMOVES, NOT TO EXCEED $1,700,000, F ROM
OCTOBER 1, 2022 TO JUNE 30, 2023 FOR PROPERTY
MANAGEMENT AND SUPP ORTIVE SERVIC ES AT 1488
NORTH FIRST STREET
WHEREAS, the City purchased the SureStay Hotel by Best Western (“SureStay Hotel”), a 76-unit, two-story hotel on an approximately 65,981 square foot site that is improved with three buildings consisting of 76 motel rooms, a community room, and a detached two-bedroom manager’s apartment, located at 1488 N. First Street and identified as Assessor’s Parcel Number 235-02-034 (“Property”), on October 30, 2020 using $12,230,477 in California Department of Housing and Community Development (“HCD”) Project HomeKey award funds in order to provide housing opportunities for extremely- low-income households experiencing homelessness for a minimum of five years; and
NVF:HAH:CEG
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Council Agenda: 9/27/2022
Item No.: 8.2
DRAFT—Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final Document.
WHEREAS, the sale of the Property to the Santa Clara County Housing Authority (“Housing Authority”) will shift the responsibility of managing the SureStay Hotel to a more experienced housing provider and will position the Housing Authority to assemble adjacent properties in order to ultimately redevelop the site that will increase the supply of affordable housing in the City; and
WHEREAS, in order to effectuate the sale, the Property is to be declared as “exempt surplus land” in conformance with California’s Surplus Land Act and San José Municipal Code for One Dollar ($1); and
WHEREAS, the California Surplus Land Act (§54221 (f) (1) (D)) allows a local agency to transfer property to another local, state, or federal agency for the agency’s use as exempt surplus land; and
WHEREAS, the Housing Authority meets the definition of a local agency, and the City will transfer the property for the provision of affordable housing, therefore qualifying for an exemption under the Surplus Land Act; and
WHEREAS, prior to the City’s transfer, an approval letter shall be obtained from HCD authorizing the sale consistent with the Surplus Land Act; and
WHEREAS, the Housing Authority Board will need to approve this sale transaction at the Board’s November 3, 2022, meeting; and
WHEREAS, the transfer of the Property is anticipated to be completed in early 2023 within 30 days of the execution of the Purchase and Sale Agreement by the City and the Housing Authority; and
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Council Agenda: 9/27/2022
Item No.: 8.2
DRAFT—Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final Document.
WHEREAS, the Housing Authority has selected the Jamboree Housing Corporation (“Jamboree”), a nonprofit developer of affordable housing, to manage and operate the SureStay Hotel as a shelter providing housing and supportive services; and
WHEREAS, the current property manager and service provider, Abode Services, will transition out as the onsite service provider of the SureStay Hotel at the end of September 2022 and, LifeMoves, through a Request for Qualifications process was selected by the City to serve as the interim property manager and service provider for the SureStay Hotel through the transition of property management services to Jamboree; and
WHEREAS, the City Manager will negotiate and execute an agreement with LifeMoves not to exceed $1,700,000 from October 1, 2022, to June 20, 2023, for property management and resident services at the SureStay Hotel; and
WHEREAS, the Housing Authority will ground lease the property to Jamboree, who will manage the Property consistent with Project HomeKey requirements;
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF SAN JOSE THAT:
1. The City-owned property located at 1488 North First Street and known as the SureStay Hotel by Best Western is hereby declared “Exempt Surplus Land” under Cal. Gov. Code §54221(F)(1)(D), San Jose Municipal Code §4.20.080 and in accordance with Council Policy 7-13(D)(3).
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Council Agenda: 9/27/2022
Item No.: 8.2
DRAFT—Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final Document.
2. The City Manager or her designee is hereby authorized to enter into the sale transaction of 1488 North First Street to the Santa Clara County Housing Authority for One Dollar ($1).
3. The City Manager or her designee is hereby authorized to negotiate and execute the Purchase and Sale Agreement, the deed, and all other documents necessary to complete the sale of the City-owned property located at 1488 North First Street from the City to the Housing Authority.
4. The Director of Housing or her designee is hereby authorized to negotiate and execute an agreement with LifeMoves not to exceed $1,700,000 for property management and supportive services from October 1, 2022, to June 30, 2023 at 1488 North First Street known as the SureStay Hotel by Best Western.
NVF:HAH:CEG
9/12/2022
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Council Agenda: 9/27/2022
Item No.: 8.2
DRAFT—Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final Document.
ADOPTED this _____ day of ___________, 2022, by the following vote:
AYES:
NOES:
ABSENT:
DISQUALIFIED:
SAM LICCARDO
Mayor
ATTEST:
TONI J. TABER, CMC
City Clerk