NVF:CHD:JMD
10/5/2023
T-46324 / 2058255 1
Council Agenda: 10-17-2023
Item No.: 2.9(a)
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 (A) CONSENTING TO THE TRANSFER OF TITLE TO
THE PROPERTY CURRENTLY OWNED BY SC SJ
HOLDINGS, LLC, AND COMMONLY REFERRED TO AS
THE SIGNIA BY HILTON “SOUTH TOWER PROPERTY”
LOCATED AT 170 SOUTH MARKET STREET TO AG170,
LLC; (B) CONSENTING TO THE SEPARATION OF THE
NORTH TOWER PROPERTY AND THE SOUTH TOWER
PROPERTY AS REFERENCED I N THE LOT TIE
AGREEMENT AND COVENANT REGARDING TRANSFER
AND CERTAIN SERVICES DATED MARCH 15, 2022
BETWEEN LIGHT TOWER ASSOCIATES I, LLC AND
LIGHT TOWER ASSOCIATES II, LLC, AND SUBSEQUENT
TERMINATION OF SAME AGREEMENT; AND (C)
AUTHORIZING THE CITY MANAGER OR THEIR
DESIGNEE TO NEGOTIATE AND EXECUTE ANY
DOCUMENTS AS NECESSARY TO MEMORIALIZE THE
CITY’S CONSENT
WHEREAS, the property located at 170 South Market Street, commonly known as the “South Tower Property,” is currently operated as part of the Signia by Hilton San José hotel in conjunction with the adjoining property, commonly known as the “North Tower Property,” both of which are currently owned by SC SJ Holdings, LLC, and in which SC SJ Holdings, LLC, seeks to sell the South Tower Property to a developer, AG170, LLC; and
WHEREAS, in 2002, the previous property owners, known as Light Tower Associates I & Light Tower Associates II, owners of the North Tower Property and South Tower Property, respectively, entered into a Lot Tie Agreement and Covenant Regarding Transfer and Certain Services dated March 15, 2002 (Lot Tie Agreement), with one another which restricts the property owner’s ability to sell or transfer the South Tower Property to any entity that does not hold one hundred percent (100%) of the interest in the North Tower Property, unless they receive the prior written consent of the City of San José (City); and
NVF:CHD:JMD
10/5/2023
T-46324 / 2058255 2
Council Agenda: 10-17-2023
Item No.: 2.9(a)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
WHEREAS, the Board of Trustees of the California State University, on behalf of San José State University, desires to lease the South Tower Property from AG170, LLC, with the option to purchase the property in the future; and
WHEREAS, although the City is not a party to the Lot Tie Agreement, it is an express beneficiary and is required to give consent to the separation and sale of the South Tower Property to any entity other than the owner of the North Tower Property;
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF SAN JOSE THAT:
The City Council hereby:
A. Consents to the transfer of title to the property currently owned by SC SJ Holdings, LLC and commonly referred to as the Signia by Hilton “South Tower Property” located at 170 South Market Street to AG170, LLC;
B. Consents to the separation of the North Tower property and the South Tower property as referenced in the Lot Tie Agreement dated March 15, 2022, between the Light Tower Associates I, LLC and Light Tower Associates II, LLC, and the subsequent termination of same agreement; and
C. Authorizes the City Manager or their designee to negotiate and execute any documents necessary to memorial the City’s consent.
NVF:CHD:JMD
10/5/2023
T-46324 / 2058255 3
Council Agenda: 10-17-2023
Item No.: 2.9(a)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
ADOPTED this _____ day of ___________, 2023, by the following vote:
AYES:
NOES:
ABSENT:
DISQUALIFIED:
MATT MAHAN
Mayor
ATTEST:
TONI J. TABER, CMC
City Clerk