TO: HONORABLE MAYOR FROM: Nanci Klein
AND CITY COUNCIL
SUBJECT: SEE BELOW DATE: October 18, 2022
Approved Date
10/18/2022
COUNCIL DISTRICT: 3
SUBJECT: FILE NO. DA22-001. THIRD AMENDMENT TO THE DEVELOPMENT
AGREEMENT WITH JACKSON TAYLOR PARTNERS, LLC FOR THE
JAPANTOWN CORPORATION YARD REDEVELOPMENT PROJECT
(ORDINANCE NO. 29528) LOCATED AT 696 NORTH 6TH STREET
REASON FOR SUPPLEMENTAL
The purpose of this supplemental memorandum is to provide additional information and clarification for Recommendation (b), which authorizes the City Manager, or designee, to negotiate and execute a Ground Lease between the City of San Jose and ICS Corporate Yard Multifamily, LLC consistent with the terms in the Third Amendment to the Development Agreement with Jackson Taylor Partners, LLC (now assigned to ICS Corporate Yard Multifamily, LLC).
ANALYSIS
On September 28, 2022, the Planning Commission recommended approval (8-0-1, Cantrell absent) of the proposed Third Amendment to the Development Agreement (Third Amendment) with Jackson Taylor Partners, LLC (assigned to ICS Corporate Yard Multifamily, LLC) (Developer), revising the Developer’s Performance Center obligations. The Third Amendment changes the City’s compensation for the Performance Center site to obligate the Developer, as lessor, to enter into a ground lease with the City for the use of the Performance Center for a term of 65 years, with three, five-year options to extend. The lease will be at no cost to the City other than payment of triple net fees such as utility and common area maintenance charges allocable to the Performance Center.
COUNCIL AGENDA: 10/25/22
FILE: 22-1575
ITEM: 10.3
HONORABLE MAYOR AND CITY COUNCIL
October 14, 2022
Subject: File No. Da22-001. Third Amendment to the Development Agreement with Jackson Taylor Partners, LLC for the Japantown Corporation Yard Redevelopment Project (Ordinance No. 29528) Located at 696 North 6th Street
Recommendation (b) was not included in the Planning Commission’s approval as executing ground leases is not in the scope of the Planning Commission’s authority. Accordingly, authority to execute the ground lease is added to the memorandum to City Council to clarify that if the City Council approves the Third Amendment via Recommendation (a), then the subsequent Ground Lease will also be approved as it is included in the terms of the Third Amendment.
COORDINATION
This supplemental memorandum was coordinated with the City Attorney’s Office.
/s/
NANCI KLEIN
Director, Office of Economic Development
and Cultural Affairs
For questions, please contact Kevin Ice, Senior Manager, Real Estate Services, at [email protected].