ITEM # 13A
CITY COUNCIL OF THE CITY OF SOUTH SAN FRANCISCO
NOVEMBER 8, 2023 — ITEM #13A
ERRATA SHEET
TO THE PROPOSED SECOND AMENDMENT TO THE PURCHASE AND SALE AGREEMENT
AND JOINT ESCROW INSTRUCTIONS WITH FIREHOUSE LIVE LLC
Staff recommends edits to Section 1(d) of the Proposed Second Amendment to the Purchase and Sale Agreement and Joint Escrow Instructions (“PSA”) with Firehouse Live LLC (referenced as Eden in the accompanying staff report) to include a provision that would provide for City and Eden to concurrently explore and negotiate a ground lease for the 201 Baden Avenue parcel. If consensus is reached, the parties will work to further amend the PSA to convert it into a ground lease rather than a land conveyance. The terms and conditions of such future amendment/ground lease would be subject to approval by the City Council.
The proposed edits are shown in double underline format. Other sections, subsections, paragraphs, and texts are not amended and are not included in this errata sheet.
SECOND AMENDMENT TO THE PURCHASE AND SALE AGREEMENT AND JOINT ESCROW
INSTRUCTIONS
. . .
. . .
AGREEMENT
. . .
1. Amendment to Agreement. Buyer and Seller hereby amend the Agreement as follows:
. . .
d) Pursuant to Section 6(h), Buyer agrees to develop and construct the Affordable Housing Project at the Property. As a condition for Seller agreeing to Buyer developing the Affordable Housing Project, Seller and Buyer agree that they shall, within ninety (90) days from the execution of this Amendment and concurrently with the development of the Affordable Housing Project, commence negotiation in good faith for the parties to enter into a ground lease where the Property would be leased by Seller to Buyer. Seller agrees that Buyer shall not be required to re-convey the Property to Seller as long as Buyer proceeds with the development and construction of the Affordable Housing Project and negotiation of the ground lease as provided herein. In the event that Buyer is unable to develop and construct the Affordable Government Code Section 54957.5 SB 343
Item Agenda: 11/08/2023 REG CC - Item
#13
Housing Project, the Property shall revert to the City as set forth in Section 6(g). In the event that Seller and Buyer negotiates a mutually acceptable leasehold arrangement for the Property as provided above, Seller and Buyer shall cooperate in good faith to convert the Agreement into a ground lease document and take all necessary steps to effectuate the ground lease, including but not limited to executing a subsequent Agreement amendment. Buyer’s obligation to negotiate and execute a Purchase and Sale Agreement to acquire the KFC/Taco Bell Site pursuant to Section 6(h) is hereby deleted.
. . .