HomeMy WebLinkAboutOB Reso 01-2018City of South San Francisco P.O. Box 711 (City Hall,
• 400 Grand Avenue)
South San Francisco, CA
Oversight Board
Resolution: RES 01 -2018
File Number: 18 -505 Enactment Number: RES 01 -2018
RESOLUTION APPROVING A FINAL SALE PRICE OF $3,050,000
FOR THE DISPOSITION OF THE PROPERTIES LOCATED AT 200
LINDEN AVENUE AND 212 - 216 BADEN AVENUE PURSUANT TO
THE APPROVED LONG RANGE PROPERTY MANAGEMENT
PLAN AND HEALTH AND SAFETY CODE SECTION 34191.5,
WITH THE PROCEEDS TO BE DISTRIBUTED TO THE LOCAL
TAXING ENTITIES.
WHEREAS, on June 29, 2011, the Legislature of the State of California ( "State ") adopted Assembly Bill
xl 26 ( "AB 26 "), which amended provisions of the State's Community Redevelopment Law (Health and
Safety Code sections 33000 et seq.) ( "Dissolution Law "), pursuant to which the former Redevelopment
Agency of the City of South San Francisco ( "City ") was dissolved on February 1, 2012; and
WHEREAS, the City elected to become the Successor Agency to the Redevelopment Agency of the City
of South San Francisco ( "Successor Agency "); and
WHEREAS, pursuant to Health and Safety Code Section 34191.5(c)(2)(C), property shall not be
transferred to a successor agency, city, county or city and county, unless a Long Range Property
Management Plan ( "LRPMP ") has been approved by the Oversight Board and the California Department
of Finance ( "DOF "); and
WHEREAS, in accordance with the Dissolution Law, the Successor Agency prepared a LRPMP, which
was approved by a resolution of the Oversight Board for the Successor Agency to the Redevelopment
Agency of the City of South San Francisco ( "Oversight Board ") on May 21, 2015, and was approved by
the DOF on October 1, 2015; and
WHEREAS, consistent with the Dissolution Law and the LRPMP, certain real properties located in the
City of South San Francisco, that were previously owned by the former Redevelopment Agency was
transferred to the Successor Agency ( "Agency Properties "); and
WHEREAS, on October 18, 2016, the City entered into an Amended and Restated Master Agreement for
Taxing Entity Compensation ( "Compensation Agreement ") with the various local agencies who receive
shares of property tax revenues from the former redevelopment project area ( "Taxing Entities "), which
provides that upon approval by the Oversight Board of the sale price, and consistent with the LRPMP,
the proceeds from the sale of any of the Agency Properties will be distributed to the Taxing Entities in
accordance with their proportionate contributions to the Real Property Tax Trust Fund for the former
Redevelopment Agency; and
City of South San Francisco Page 1
File Number. 18 -505
Enactment Number. RES 01 -2018
WHEREAS, on February 8, 2017, the City adopted Resolution 16 -2017 approving the transfer of the
agency properties from the Successor Agency to the City and in accordance with the requirements set
forth in the LRPMP, and on February 21, 2017, the Oversight Board adopted a resolution approving the
transfer of the redevelopment properties from the Successor Agency to the City; and
WHEREAS, consistent with the LRPMP and the Oversight Board resolution, the Successor Agency and
City executed and recorded grant deeds transferring the agency properties to the City; and
WHEREAS, the real property located at 200 Linden Avenue and 212 - 216 Baden Avenue ( "200
Linden ") located in the City of South San Francisco, California, known as assessor parcel Numbers
( "APNs ") 012334130, 012334160, 012334030 and 012334040 are agency properties and are subject to
the provisions of the LRPMP and the Compensation Agreement; and
WHEREAS, City Council selected Hisense REUS, LLC ( "Developer ") to develop the properties located
at 200 Linden in a manner consistent with the LRPMP; and
WHEREAS, on September 19, 2017, the Oversight Board adopted Resolution RES O4 -2017 approving
the Disposition and Development Agreement ( "DDA ") for 200 Linden and a purchase price of
$3,500,000; and
WHEREAS, the Developer, citing escalating construction costs, payment of prevailing wage, inclusion
of the Below Market Rate (`BMR ") units, have requested a $450,000 reduction in the sale price of 200
Linden; and
WHEREAS, the Developer has also requested financial assistance, fee waiver and other concessions
from the City; and
WHEREAS, the City will consider granting this financial assistance as well as an amendment to the
DDA at the June 27, 2018 regular meeting of the City Council of the City of South San Francisco; and
WHEREAS, while the purchase price reduction request made by the developer would result in less
initial net proceeds being distributed to the taxing entities upon disposition, the long -term ongoing
revenue stream generated by the completion of the development outweighs this immediate loss.
NOW, THEREFORE, BE IT RESOLVED that the Oversight Board for the Successor Agency to the
Redevelopment Agency of the City of South San Francisco does hereby resolve as follows:
The foregoing recitals are true and correct and made a part of this Resolution.
The proposed actions in this Resolution are consistent with the Long Range Property Management Plan.
City of South San Francisco Page 2
File Number: 18 -505
Enactment Number., RES 01 -2018
The amended final sale price of $3,050,000 for the sale and development of the properties located at 200
Linden Avenue and 212 - 216 Baden Avenue is approved. The sale proceeds from the disposition of the
properties will be distributed to the taxing entities according to Section 5 of the Amended and Restated
Master Agreement for Taxing Entity Compensation.
Subject to City Council and Successor Agency approval, the City Manager, or his designee, is authorized
to execute an amendment to the Disposition and Development Agreement, and any necessary documents
related to an amendment to the Disposition and Development Agreement consistent with the intent of
this Resolution, and take any and all other actions necessary to implement this intent of this Resolution,
subject to approval as to form by the City Attorney.
At a meeting of the Oversight Board to the Successor Agency to the former Redevelopment Agency on
6/19/2018, a motion was made by Barbara Christensen, seconded by Mark Addiego, that this Resolution be
approved. The motion passed.
Yes: 4 Addiego, Christensen, Friedman, and Scannell
No: 2 Cullen, and Krause
Absent: 1 Rodriguez
Attes
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