DRAFT 11/14/2024_________
T-CDD-240091/77569 1
Council Agenda: 11/19/2024
Item No.:
RESOLUTION NO. ______
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SUNNYVALE AUTHORIZING THE CITY MANAGER
TO ENTER INTO AN EIGHTY-FIVE (85) YEAR GROUND
LEASE WITH MIDPEN HOUSING, OR AN AFFILIATED
ENTITY, AT 1171 SONORA COURT IN SUNNYVALE,
CALIFORNIA
WHEREAS, on August 13, 2024, the City Council of the City of Sunnyvale approved an award of ap
proximately $14 million funded by the City’s Housing Mitigation Funds and Below Market R
ate In-Lieu Funds for the acquisition, predevelopment, and/or development of a new 172-unit affordable housing development located at 1171 Sonora Court (the “Pr
oject”); and
WHEREAS, the funding award is intended to support the City’s acquisition of the 1171 Sonora Court property
(“Property”) from MP Land Holdings, LLC for $12.5 million, as well as a loan of $1,533,000 to MP 1171 Sonora I Associates, L.P. to support predevelopment costs for the Project; and
WHEREAS, on No
vember 19, 2024, the City Council directed st aff to execute a Purchase and Sale agreement with MP Land Holdings, LLC to purchase the Property for $12,500,000; and WHEREAS, the City
Council also directed staff to execute a Disposition and Development Agreement with MP 1171 Sonora I Associates, L.P., which sets forth the terms of the affordable hous
ing development of the Project, the predevelopment loan, and the long-term ground lease of the Property.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SUNNYVALE THAT:
1. The City Council authorizes the City Manager to enter into a long-term ground lease with MP 1171 Sonora
I Associates, L.P., or an affiliated entity, for the term of 85 years, provided that the City Manager may agree to a longer term if MP 1171 Sonora I Associates, L.P., or an affiliated entity, demonstrates to the City's
satisfaction that a longer term is necessary to address tax structuring requirements, once all conditions have been met and in a form approved by the City Attorney.
2. A notice was published in the Sunnyvale Sun on November 8, 2024, and all noticing requirements have been
met pursuant to Sunnyvale Municipal Code
Section 2.07.060.
Attachment 3
T-CDD-240091/77569 2
Council Agenda: 11/19/2024
Item No.:
Adopted by the City Council at a regular meeting held on November 19, 2024, by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
RECUSAL:
ATTEST: APPROVED:
__________________________________ _________________________________
DAVID CARNAHAN
City Clerk
LARRY KLEIN
Mayor
(SEAL)
APPROVED AS TO FORM:
___________________________________
REBECCA L. MOON
City Attorney
Attachment 3