TOWN HALL SQUARE
PSA AMENDMENT
JULY 2022
Overview
Background – work to facilitate redevelopment of long-underutilized intersection of East 14th and Davis Sts.
Concept – multifamily housing development
Purchase & Sale Agreement – proposed amendment to facilitate sale and success of project
Existing Site
Beam Devel.
Beam Devel.
TOD Strategy – Opportunity Sites
East 14th & Davis – 5 Years
East 14th & Davis – 10 Years
East 14th & Davis – 20 Years
Disposition of Former RDA Properties
2000s: Redevelopment Agency (RDA) identified site as key to revitalization of downtown and began to purchase (‘assemble’) properties
Several agreements with developers for purchase failed due to difficulty of purchasing neighboring properties and economic downturns
2012: Redevelopment Agency dissolved per State Law
2015: Long Range Property Management Plan (LRPMP) – established a plan to transfer or sell 22 former RDA properties
2016: Issued Request for Proposals (RFP) for sale of properties at 3 sites: Parrott/Washington, Former Fire Station, and Town Hall Square
2017: Developers selected and Purchase & Sale Agreements executed 2017–2022: Beam Development performed Due Diligence & purchased neighboring properites Development Challenges
Multiple properties and owners
Chevron Gas Station likely to remain
Union Bank lease through 2022
Inclusion of bank building and parking may require developer secure alternate location for bank on or off site
Long Due Diligence Period
Developer commitment of $25,000 required for each annual extension Selected: BEAM Development
➢ Quality design – attractive and accessible frontage that can act as gateway feature
➢ Experience – team has track record in Bay Area
➢ Feasible plan to obtain adjacent properties
➢ Price is competitive
➢ Development Team: Branagh Construction, BDE
Architecture, Sandis Engineering
Team Project Examples
Ashland Place – Unincorporated Alameda County
Branagh Construction
Bella Tierra – Unincorporated Alameda County
BEAM & Branagh Construction
BDE – Artists Walk - Fremont
Project Concept
Over 150 Multifamily Housing Units - 15% affordable
Indoor parking and bike storage spaces
Outdoor courtyards and tenant gathering and workspace Street-level activation through architectural design and open tenant uses on the ground floor
Sale Price: $2.1M (est. $850,000 to City/RDA)
Established: 2017
Due Diligence: 12 months
Closing: (5) 12 month extensions - through 2023
Amendments: Extended DD period (but not Closing period) with $25,000 deposit to allow for time for:
Negotiate purchase of adjacent properties
Complete physical evaluation, including related to soils Evaluate impact of environmental findings and changing economic conditions, materials costs, etc. from the pandemic
Purchase and Sale Agreement
Respond to changing conditions & Facilitate completion of sale by end of 2022 Acknowledge that:
terms of sale do not require mixed use (subject to CUP) Buyer is working in good faith toward obtaining discretionary entitlements Buyer has already satisfied the condition of sale pertaining to purchase of the Adjacent Properties, completion of geotechnical and environmental site assessments, and is in the process of preparing to submit its project application to the City Closing will need to occur prior to completion of entitlements Buyer will agree to waive Buyer’s Condition to Closing of Entitlements if:
conveyance documents contain a clause pertaining to a “condition subsequent” by which if Buyer has not received entitlements by specified date, or has received litigation, the property will revert to the City/RDA and purchase price returned [mechanics/costs to be finalized]
Fifth Amendment to PSA
Community Goals
City Council Priorities
Housing and Homelessness
Community & Business Development
General Plan Goals
Policy ED-5.2 - Housing Production. Substantially increase the production of a variety of housing types meeting the needs of persons at all income levels.
Policy LU-3.4 - Promotion of Infill. Encourage infill development on vacant or underused sites within residential and commercial areas.
Policy LU-6.6 - Downtown Housing Diversity. Encourage a mix of market-rate and affordable housing in the Downtown area, including ownership and rental housing at a variety of price points. Recognize the opportunity to make future Downtown housing more affordable by reducing accompanying transportation costs and making it more feasible to use transit, bicycles, bicycle and car-sharing, and other innovative modes of transportation as these become viable. Developer Due Diligence
Developer negotiations with neighboring properties
Project planning & entitlements – in progress
Purchase City Properties – by December 2023
Entitlements Public Hearing – by Q2 2023
Building permits & project development – 2023/2024
Steps to Forward Development
Adopt Resolution approving Fifth Amendment to Purchase & Sale Agreement for City and Successor Agency-owned properties to Facilitate the Development of Town Hall Square Project
Recommendation