HomeMy WebLinkAboutMinutes 2018-11-28 @6:31WEDNESDAY, NOVEMBER 28, 2018
6:31 P.M.
CALL TO ORDER Time: 6:59 p.m.
ROLL CALL Present: Boardmembers Addiego, Garbarino and Gupta,
Vice Chair Matsumoto and Chair Normandy.
Absent: None.
AGENDA REVIEW
None.
PUBLIC COMMENTS - comments are limited to items on the Special Meeting Agenda
None.
MATTERS FOR CONSIDERATION
Report regarding a resolution approving the first amendment to the Purchase and Sale
Agreement between the South San Francisco Successor Agency and SSF Miller Cypress
Phase 2, LLC amending the supplemental purchase price for 216 Miller Avenue (APN 012-
314-220) to a fixed amount of $2,000,000 (Alex Greenwood, Economic and Community
Development Director).
1 a. Resolution No. 4-2018 approving the first amendment to the Purchase and Sale
Agreement between the South San Francisco Successor Agency and SSF Miller
Cypress Phase 2, LLC amending the supplemental purchase price for 216 Miller
Avenue (APN 012-314-220) to a fixed amount of $2,000,000.
Director of Economic and Community Development Greenwood presented the staff report
recommending that the Agency adopt a resolution approving the first amendment to the Purchase and
Sale Agreement between the South San Francisco Successor Agency and SSF Miller Cypress Phase
2, LLC amending the supplemental purchase price for 216 Miller Avenue (APN 012-314-220) to a
fixed amount of $2,000,000. Director Greenwood explained that pursuant to Section 2.3 of the
Agreement, the Agency and Sares Regis mutually selected Vathana Duong of Colliers International
Valuation and Advisory Services to conduct the appraisal. The appraisal valued Parcel C at
$3,700,000. Subsequently, based on the cost of assembling the larger development site, Sares Regis
contested the appraised value and initially offered $1,118,538 for Parcel C. In a separate analysis of
the stand-alone development option for Parcel C, staff determined the realistic price offer the Agency
MINUTES
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SUCCESSOR AGENCY
CITY OF SOUTH SAN FRANCISCO
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SPECIAL MEETING
MUNICIPAL SERVICES BUILDING
COUNCIL CHAMBERS
33 ARROYO DRIVE
SOUTH SAN FRANCISCO, CA
WEDNESDAY, NOVEMBER 28, 2018
6:31 P.M.
CALL TO ORDER Time: 6:59 p.m.
ROLL CALL Present: Boardmembers Addiego, Garbarino and Gupta,
Vice Chair Matsumoto and Chair Normandy.
Absent: None.
AGENDA REVIEW
None.
PUBLIC COMMENTS - comments are limited to items on the Special Meeting Agenda
None.
MATTERS FOR CONSIDERATION
Report regarding a resolution approving the first amendment to the Purchase and Sale
Agreement between the South San Francisco Successor Agency and SSF Miller Cypress
Phase 2, LLC amending the supplemental purchase price for 216 Miller Avenue (APN 012-
314-220) to a fixed amount of $2,000,000 (Alex Greenwood, Economic and Community
Development Director).
1 a. Resolution No. 4-2018 approving the first amendment to the Purchase and Sale
Agreement between the South San Francisco Successor Agency and SSF Miller
Cypress Phase 2, LLC amending the supplemental purchase price for 216 Miller
Avenue (APN 012-314-220) to a fixed amount of $2,000,000.
Director of Economic and Community Development Greenwood presented the staff report
recommending that the Agency adopt a resolution approving the first amendment to the Purchase and
Sale Agreement between the South San Francisco Successor Agency and SSF Miller Cypress Phase
2, LLC amending the supplemental purchase price for 216 Miller Avenue (APN 012-314-220) to a
fixed amount of $2,000,000. Director Greenwood explained that pursuant to Section 2.3 of the
Agreement, the Agency and Sares Regis mutually selected Vathana Duong of Colliers International
Valuation and Advisory Services to conduct the appraisal. The appraisal valued Parcel C at
$3,700,000. Subsequently, based on the cost of assembling the larger development site, Sares Regis
contested the appraised value and initially offered $1,118,538 for Parcel C. In a separate analysis of
the stand-alone development option for Parcel C, staff determined the realistic price offer the Agency
could expect to receive would be approximately $1.5 million. Finally, staff evaluated the property tax
implications over the next ten years of selling Parcel C to Sares Regis versus selling the property
within three years as a stand-alone site. Staff conservatively estimated the property taxes over the
next ten years to be $7,805,274 if Parcel C is sold to Sares Regis and just $2,260,036 if it is sold as a
stand-alone site.
Director Greenwood continued noting that although Sares Regis made an initial offer of $1,118,538
for Parcel C, the County of San Mateo Countywide Oversight Board ("Oversight Board") rejected the
$1,118,538 price offer and continued to negotiate with Sares Regis. On November 26, 2018, the
Oversight Board approved a final sale price of $2,000,000 subject to Successor Agency approval.
Vice Chair Matsumoto queried the recommendation that the Agency drop its price from $3 million to
$2 million.
City Manager Futrell reiterated the appraisal differentials based upon property assemblage. Since the
Agency owned parcel was valued at $1.8 million stand-alone, the Oversight Board believed a
negotiated price of $2 million given the higher value to Sares Regis on property assemblage was
reasonable.
Motion—Councilman Gupta/Second—Councilman Garbarino: To approve Resolution No. 4-2018.
Unanimously approved by roll call vote.
ADJOURNMENT
Being no further business, Chair Normandy adjourned the meeting at 7:03 p.m.
S mitted: Ap oved:
Krista . M nelli, erk on Submission , Chair
Success gency, City of South San Francisc sor Agency, City of South San Francisco
SPECIAL SUCCESSOR AGENCY MEETING NOVEMBER 28, 2018
MINUTES PAGE 2