HomeMy WebLinkAboutReso 93-2014 RESOLUTION NO. 93-2014
CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA
A RESOLUTION APPROVING THE TERMS OF A REVENUE
SHARING AGREEMENT AND DIRECTING STAFF TO
NEGOTIATE AND PREPARE A REVENUE SHARING
AGREEMENT FOR PRESENTATION TO THE OVERSIGHT
BOARD
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SOUTH SAN FRANCISCO ("AGENCY") THAT THE CITY COUNCIL DOES HEREBY
RESOLVE, ORDER AND DETERMINE AS FOLLOWS:
WHEREAS, the property at 636 El Camino Real (the "Property") contains a mixed-use
affordable housing development constructed by Mid-Peninsula Housing Coalition and sponsored
by the former Redevelopment Agency of the City of South San Francisco (the "RDA"); and
WHEREAS, the Property was transferred to the City of South San Francisco (the "City")
as Housing Successor to the former RDA, pursuant to Health and Safety Code Section 34176;
and
WHEREAS,the Property contains approximately 5,160 square feet of retail space: and
WHEREAS, pursuant to a Master Lease Agreement for the Property, the RDA leased the
retail space back from Mid-Pen pursuant to a 75-year lease; and
WHEREAS, pursuant to Health and Safety Code Section 34176(f), the Oversight Board
for the Successor Agency to the RDA (the "Oversight Board"), and the State Department of
Finance ("DOF"), authorized the assignment of the lease to the City, on the condition that the
disposition of lease revenue be accomplished by a revenue sharing agreement with the affected
taxing entities, as approved by the Oversight Board; and
WHEREAS, pursuant to two subleases for three of the commercial spaces, with
occupancy expected to occur this month, a revenue sharing agreement must be prepared and
presented to the Oversight Board; and
WHEREAS, based upon projections, at rent stabilization in year 3, of net revenue for the
commercial square footage at the Property, City staff calculates that $1,300 will be available
annually for distribution to the taxing entities, and will increase by 3% annually thereafter; and
WHEREAS, the net rental revenue for the commercial space square footage will be
distributed to the taxing entities on a pro rata basis in proportion to each taxing entity's share of
the base property tax revenues, as determined by the San Mateo County Auditor-Controller.
NOW, THEREFORE, the City Council of the City of South San Francisco hereby: (1)
approves the terms of a revenue sharing agreement with the affected taxing entities as set forth
herein and in the accompanying staff report; (2) authorizes City staff to negotiate and prepare a
revenue sharing agreement with the affected taxing entities for the net rental revenue from the
commercial space square footage at 636 El Camino Real; and (3) authorizes City staff to present
the terms thereof and the subsequent revenue sharing agreement to the Oversight Board and DOF
for approval.
* * * * *
I hereby certify that the foregoing Resolution was regularly introduced and adopted by
the City Council of the City of South San Francisco at a regular meeting held on the 13t day of
August, 2014 by the following vote:
AYES: Councilmembers Mark N. Addiego, Pradeep Gupta, and Liza Normandy
Vice Mayor Richard A. Garbarino and Mayor Karyl Matsumoto
NOES: None
ABSTAIN: None
ABSENT: None
ATTEST: 0-A-AN-a-C—fl"--- -B/ erl-L-- -
Anna Brown, Deputy City Clerk