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0 CITY OF SAN MATEO
RESOLUTION NO. ____ (2026)
APPROPRIATING $2.9M INTO THE BESPOKE PREDEVELOPMENT PROJECT WHEREAS, on January 4, 2021, the City Council approved Resolution No.3 (2021) declaring the City- owned parking at East 4th Avenue and South Railroad Avenue (APNs 034-179-050 and 034-179-060, herein referred to as the “Property”) as “surplus land” and subsequently released a Notice of Surplus Lands Availability to all housing developers that have registered with the State Department of Housing and Community Development (HCD); and
WHEREAS, on April 19, 2021, the City received four proposals for the acquisition and development of the Property, including a proposal from the three-party Development Team composed of Prometheus Real Estate Group and Harvest Properties (collectively referred to as “Commercial Developer”), and Alta Housing (“Residential Developer”); and
WHEREAS, on October 4, 2021, the City Council approved the City entering into an Exclusive Negotiating Agreement (ENA) with DTSM Housing, LLC for the redevelopment of the Property; and WHEREAS, the City, the Commercial Developer, and the Residential Developer desire for the Development Team to construct a mixed-use development totaling 239,628 square feet and consisting of one seven-story, 76,072 square-foot affordable housing building that includes approximately 5,964 square feet of ground floor community space (“Residential Improvements”); one six-story, 162,926 square-foot office/commercial building (“Commercial Improvements”); and an underground parking garage, located at 445 South B Street (collectively referred to as the “Project”); and WHEREAS, pursuant to the Disposition and Development Agreement between the City, AH Bespoke LP, and DTSM Housing, LLC (“Agreement”), the Commercial Developer will make a contribution to the City in the amount of $2,900,000 (the “Developer Equity Contribution”), which shall be held by the City and provided to the Residential Developer in the form of a loan (“Predevelopment Loan”) to pay predevelopment expenses associated with the Residential Development, as defined in the Agreement; and WHEREAS, the terms and conditions of the Predevelopment Loan are contained in the Agreement and associated Predevelopment Loan documents for the Project; WHEREAS, an appropriation of $2,900,000 in revenue in the form of the Developer Equity Contribution to the Predevelopment Bespoke Project and $2,900,000 in expenditures is necessary to fund the Predevelopment Loan.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN MATEO, CALIFORNIA, HEREBY RESOLVES that:
1. This fund appropriation is not a project of CEQA because it is an organizational or administrative activity that will not impact the environment (CEQA Guidelines Section 15378(b)(5).
2. The appropriation of $2,900,000 in revenue into the Predevelopment Bespoke Project and $2,900,000 in expenditures is approved.