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Home My WebLink AboutRESO 01-2024 (24-146)_ City of South San Francisco P.O. Box 711 (City Hall, 400 0 Grand Avenue) Joint City Council and Successor Agency South San Francisco, CA Resolution: RES 01-2024 File Number: 24-146 Enactment Number: RES 01-2024 JOINT RESOLUTION AUTHORIZING THE CITY MANAGER AND EXECUTIVE DIRECTOR TO THE SUCCESSOR AGENCY TO EXECUTE THE SECOND AMENDMENT TO THE AMENDED AND RESTATED OWNER PARTICIPATION AGREEMENT WHEREAS, on June 17, 1981, the City of South San Francisco ("City") adopted the Redevelopment Plan for the South San Francisco Gateway Redevelopment Project (the "Redevelopment Plan"). In 1981, the City, the Redevelopment Agency of South San Francisco ("Agency"), and Homart Development Co,("Homart") entered into an owner participation agreement (subsequently amended eight times) addressing the redevelopment of property owned or subsequently acquired by Homart within the Redevelopment Plan area. In 1992, the Parties entered into an Amended and Restated Owner Participation Agreement; in 1993, the Parties entered into an amendment to the Amended and Restated Owner Participation Agreement; and in 1997, the Parties entered into that certain First Amendment to the Amended and Restated Owner Participation Agreement (as amended, the "OPA"); and WHEREAS, on February 1, 2012, the State of California dissolved all redevelopment agencies in the state and established successor agencies to assume certain rights and obligations of the former agencies. Cal. Health & Safety Code §§ 34170 et seq. ("Dissolution Law"). Pursuant to the Dissolution Law, the Agency dissolved, and its assets and obligations were transferred to the successor agency to the former Agency (the "Successor Agency") and the City Council serves as the governing body of the Successor Agency. (City Resolution No. 8-2012, dated January 25, 2012). WHEREAS, the land use controls of the Redevelopment Plan expired on June 17, 2022; and WHEREAS, the OPA governs certain "Property" in the Redevelopment Plan area as depicted in Exhibit A-1 to the OPA. Within the Property, ARE -San Francisco No. 33, LLC owns 600, 630, and 650 Gateway Boulevard (the "ARE 33 Property"); ARE 901/951 Gateway Boulevard, LLC owns 901 and 951 Gateway Boulevard (the "ARE 950/951 Property"); 601 & 651 Gateway Center LP owns 601 and 651 Gateway Boulevard (the "ARE 601/651 Property"); 611 Gateway Center LP owns 611 and 631 Gateway Boulevard (the "ARE 611 Property"); 681 Gateway Center LLC owns 681 and 685 Gateway Boulevard (the "ARE 681 Property"); 701 Gateway Center LLC owns 701 Gateway Boulevard; and 751 Gateway Center LLC owns 751 Gateway Boulevard (the "ARE 751 Property). Collectively, the ARE 33 Property, ARE 901 /951 Property, ARE 601 /651 Property, ARE 611 Property, ARE 681 Property, ARE 701 Property, and ARE 751 Property are referred to herein as the "Subject Properties"; and WHEREAS, the OPA distinguishes between fee obligations as to the "Affected Property" (described in Exhibit A-2 to the OPA) and the "Homart Property" (described in Exhibit A-3 to the OPA). The Homart Property is a smaller area located entirely within the Affected Property. The Subject Properties all are within the Homart Property; and City of South San Francisco File Number: 24-146 Enactment Number: RES 01-2024 WHEREAS, the OPA obligates developers of Property outside of the Homart Property to contribute to the cost of the Oyster Point Separation Project. Due to a prior prepayment by the owners of the Homart Property pursuant to a separate obligation, the OPA only obligates developers of the Homart Property to contribute to the cost of the Oyster Point Separation Project if building permits are granted that result in construction of improvements that would contribute more than a specified number of trips, and states that the Homart Property need not contribute at all once the City has raised sufficient funds to meet its local share of the cost of the Oyster Pont Separation Project. For the purposes of the OPA, the letting of the first construction contract for the construction of the Oyster Point Separation Project is conclusive evidence that the local share of the cost of the project has been raised. The Oyster Point Separation Project has been completed and thus, there are no future circumstances where the owners of the Homart Property will be obligated to further contribute to the Oyster Point Separation Project, including without limitation the Oyster Point Separation Project fee. WHEREAS, in addition to the obligations pertaining to the Oyster Point Separation Project, the OPA contains the following obligations applicable to the Subject Properties: establishment of permitted densities; requirement that applicants for Precise Plans seek approval from an architectural control committee and the City's Design Review Board; i requirement that as a condition of Precise Plan approval, Agency may require applicants to obtain certain insurance; and WHEREAS, the foregoing obligations have been satisfied or are no longer appropriate to enforce as described below: As to permitted densities, the total amount of constructed/approved/proposed development for the Subject Properties is within the identified densities in the OPA. However, after expiration of the land use controls of the Redevelopment Plan, these densities no longer are enforceable, and the City's General Plan and Zoning dictate the appropriate densities. . As to review authority for Precise Plans, after passage of the Dissolution Law, land use review authority within the Redevelopment Project area reverted to the City. As such, City design review requirements under the Municipal Code apply, and these provisions no longer are relevant. As to insurance requirements, the owners of the Subject Property all maintain insurance in accordance with industry standards as part of development projects. WHEREAS, the obligations pertaining to the Subject Properties under the OPA have been completed or are no longer appropriate to enforce. As such, executing an amendment to remove the Subject Properties from the "Property," the "Affected Property," and the "Homart Property" governed by the OPA is appropriate and would assist in winding down the operations of the Successor Agency. Further, other current City planning and governing documents now dictate the appropriate development of the Subject Properties; and WHEREAS, the Second Amendment to the Amended and Restated Owner Participation Agreement, as attached hereto and incorporated herein as Exhibit A, provides for the removal of the Subject Properties from the "Property," the "Affected Property," and the "Homart Property" governed by the OPA, effectively terminating the OPA as to the Subject Properties. City of South San Francisco File Number: 24-146 Enactment Number: RES 01-2024 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San Francisco that: 1.The City Manager is authorized to execute the Second Amendment to the Amended and Restated Owner Participation Agreement, in substantially the same form as attached hereto and incorporated herein as Exhibit A, subject to review by the City Attorney and subject to minor revisions and clarifications of the City Attorney that do not otherwise expand the City's obligations; and 2-The City Manager is authorized to take any other related actions consistent with the intention of the resolution. NOW, THEREFORE, BE IT RESOLVED by the Board of the Successor Agency to the Redevelopment Agency for City of South San Francisco that: l.The Executive Director is authorized to execute the Second Amendment to the Amended and Restated Owner Participation Agreement, in substantially the same form as attached hereto as Exhibit A, subject to review by Agency Counsel and subject to minor revisions and clarifications of Agency Counsel that do not otherwise expand the Agency's obligations; and 2.The Executive Director is authorized to take any other related actions consistent with the intention of the resolution. At a meeting of the Joint Special City Council and Successor Agency on 2/14/2024, a motion was made by Councilmember Nicolas, seconded by Vice Mayor Flores, that this Resolution be approved. The motion passed. Yes: $ Mayor Coleman, Vice Mayor Flores, Councilmember Addiego, Co cilmember Nagales, and Councilmember Nicolas Attest by aa�— kosa Govea Acosta, City Clerk City of South San Francisco