201 Baden Ave: Property Reconveyance and
Financing Rescission
City Council
May 14, 2025
Government Code Section
54957.5 SB 343 Item 22 Agenda:
05/14/2025 REGULAR CC
Staff Recommendation
Staff recommends City Council adopt two resolutions:
Resolution 1 (“PSA Resolution”) Resolution 2 (“Budget Resolution”) Authorize the City Manager to execute a 3rd
Amendment to a Purchase and Sale Agreement
(PSA) with Eden Housing to reconvey (retake
ownership of) 201 Baden
Approve a Budget Amendment to remove a
$1,025,000 budget designation in Fund 823 for 201
Baden
Reimburse Eden Housing $66,192 for
predevelopment costs
Approve rescinding a Letter of Intent to fund the 201
Baden project
Objectives
• Retake ownership of 201 Baden Ave (parking lot)
• Reimburse Eden for predevelopment work products
(environmental/geotechnical reports, etc.) that could be utilized towards a future project
• Remove a budget designation for the formerly planned project • Rescind a funding commitment letter make Local Housing Trust Fund (LHTF) dollars available to another project
201 Baden Ave Background
• Split in 2: City sold firehouse to Group4 and reserved parking lot for affordable housing
• November 2021: City and Eden executed a PSA that:
• Sold Eden the parking lot for $1 ($1,440,000 appraised value) • Required Eden to buy the adjacent property at 199 Airport BLVD • Required Eden to complete an 82-unit project across 201 Baden + 199 Airport
• City offered project funding:
• ~$1M predevelopment loan (never claimed)
• ~$2.4M LHTF grant from the State (never claimed)
History of
Challenges
• Small and oddly shaped project site => challenging
• Negotiation challenges with 199 Airport => time extension PSA amendment (2022)
• Continued challenges => 2nd PSA amendment (2023) that:
• Reduced project to 68 units on just the 0.3-acre parking lot • City may retake property if not project not completed by December 2024 • May 2025: no necessary approvals/entitlements obtained Property Reconveyance
• September 2024: Eden letter requesting the City:
• Retake ownership of 201 Baden
• Reimburse Eden for predevelopment costs
• What does the City have to gain?
• Decide the future of the property
• Environmental/geotechnical reports
• Re-allocate the ~$2.4M LHTF grant to a timelier project • Close out the ~$1M budget designation for the predevelopment loan 3rd PSA Amendment Proposal
Building Appraisal $3,393
Land Acquisition $1,326
Environmental Consulting $27,493
Geotech / Soils Report $6,000
Permits & Fees - Other $6,281
Reversion Estimate $15,000
Recording Costs $6,699
Total $66,192
May 2025: Eden/staff came to the
following tentative proposal:
• Reconvey 201 Baden back
to the City
• City reimburses Eden for
the purchase/sale + usable
work products as follows
• Eden transmits all
environmental/geotechnica
l reports to the City
Council Action
Staff recommends City Council adopt two resolutions:
Resolution 1 (“PSA Resolution”) Resolution 2 (“Budget Resolution”) Authorize the City Manager to execute a 3rd
Amendment to a Purchase and Sale Agreement
(PSA) with Eden Housing to reconvey (retake
ownership) of 201 Baden
Approve a Budget Amendment to remove a
$1,025,000 budget designation in Fund 823 for 201
Baden
Reimburse Eden Housing $66,192 for
predevelopment costs
Approve rescinding a Letter of Intent to fund the 201
Baden project