Agenda Item #13.9
For Council Meeting of: July 9, 2024
CITY OF SANTA ROSA
CITY COUNCIL
TO: MAYOR AND CITY COUNCIL
FROM: JILL SCOTT, ACTING DEPUTY DIRECTOR/REAL ESTATE MANAGER SUBJECT: APPROVAL TO EXTEND THE TERM OF THE EXCLUSIVE NEGOTIATION AGREEMENT AMONG THE CITY OF SANTA ROSA, BURBANK HOUSING DEVELOPMENT CORPORATION, AND 10 E STREET, LLC FOR THE REAL PROPERTY LOCATED AT 730 3RD STREET, SANTA ROSA, CALIFORNIA AGENDA ACTION: RESOLUTION
RECOMMENDATION
It is recommended by Real Estate Services that the Council, by resolution, approve an amendment extending the term of the Exclusive Negotiation Agreement dated January 19, 2024, among the City of Santa Rosa, Burbank Housing Development Corporation and 10 E Street, LLC, for an additional sixty (60) days, in order to reach agreement on a term sheet for the potential disposition and development of the real property located at 730 3rd Street, Santa Rosa, California, also known as Assessor Parcel Number 009-072-044 or White House Site (the “Property”).
EXECUTIVE SUMMARY
In September 2023, Council approved entering into an Exclusive Negotiation Agreement (as amended, the “ENA”) with Burbank Housing Development Corporation and 10 E Street, LLC (collectively, “Developer”), and over the past several months staff and Developer have been negotiating a term sheet for purposes of entering into a Disposition and Development Agreement (“DDA”) for potential disposition and development of the real property located at 730 3rd Street, Santa Rosa, CA. The parties would like an additional sixty (60) day extension on the deadline set forth in the ENA in order to reach an agreement on the term sheet, after which they would return to Council in closed session, before entering into a sixty day negotiation period during which to draft and finalize the DDA and bring it back to Council in open session for approval.
BACKGROUND
Developer and City entered into an Exclusive Negotiation Agreement (“ENA”) dated January 19, 2024, as amended by that certain First Amendment to Exclusive Negotiation Agreement dated April 18, 2024. Due to the complexities of the negotiations, Staff is seeking additional time beyond the remaining negotiation period during which to agree to the terms of a term sheet before returning to Council in closed session.
PRIOR CITY COUNCIL REVIEW
On September 12, 2023, the City Council, by Resolution No. RES-2023-160: 1) approved entering into an Exclusive Negotiation Agreement with Developer for the potential disposition and development of the Property, 2) authorized the City Manager to execute an Exclusive Negotiation Agreement and any amendments thereto, subject to approval as to form by the City Attorney’s Office; and 3) directed staff to initiate negotiations to enter into a Disposition and Development Agreement for the Property.
ANALYSIS
The City and Developer entered into an ENA dated January 19, 2024. The initial period of the ENA ran for ninety (90) days, and was extended by the City Manager pursuant to the First Amendment to Exclusive Negotiation Agreement dated April 18, 2024, for an additional 90 days, in accordance with the terms of the ENA. The parties are approaching the end of the negotiation period and would like an additional sixty (60) day extension in order to reach an agreement on the term sheet. If granted, the additional sixty day extension would allow the parties to finalize the term sheet by the deadline set forth in the ENA, as extended, and enter into the remaining sixty day negotiation period, during which the parties must prepare a mutually acceptable Disposition and Development Agreement (“DDA”) for consideration and action by the Council. Once a tentative agreement has been reached, the DDA will be brought to Council in open session for approval.
FISCAL IMPACT
Approval of this action does not have a fiscal impact on the General Fund.
ENVIRONMENTAL IMPACT
This action is exempt from the California Environmental Quality Act (CEQA) because it is not a project which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, pursuant to CEQA Guidelines Section 15378.
In the alternative, if this action is deemed to be a project, it is statutorily exempt from CEQA pursuant to California Government Code section 65457 and CEQA Guidelines Section 15182 (c) as a potential residential project implementing the Downtown Station Area Specific Plan, and pursuant to California Public Resources Code Section 21155.4 and CEQA Guidelines Section 15182 (b) as a mixed use project that is consistent with the local Sustainable Communities Strategy, located within a transit priority area and consistent with the Downtown Station Area Specific Plan. The Environmental Impact Report for the Downtown Station Area Specific Plan was certified by the City Council in October 2020, and no events described in CEQA Guidelines Section 15162 have occurred to require additional environmental analysis.
BOARD/COMMISSION/COMMITTEE REVIEW AND RECOMMENDATIONS
Not applicable
NOTIFICATION
Not applicable
ATTACHMENTS
Resolution
PRESENTER
Jill Scott, Acting Deputy Director /Real Estate Manager APPROVAL TO EXTEND THE TERM OF THE EXCLUSIVE NEGOTIATION AGREEMENT DATED JANUARY 19, 2024 AMONG THE CITY OF SANTA ROSA, BURBANK HOUSING DEVELOPMENT CORPORATION, AND 10 E STREET, LLC FOR THE REAL PROPERTY LOCATED AT 730 3RD STREET, SANTA ROSA, CA PAGE 2 OF 4