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HomeMy WebLinkAbout2017-03-22 e-packet@600Wednesday, March 22, 2017 6:00 PM City of South San Francisco P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA Municipal Services Building, Council Chambers 33 Arroyo Drive, South San Francisco, CA Joint Special Meeting City Council and Successor Agency Special Meeting Agenda March 22, 2017Joint Special Meeting City Council and Successor Agency Special Meeting Agenda NOTICE IS HEREBY GIVEN, pursuant to Section 54956 of the Government Code of the State of California, that the Successor Agency to the City of South San Francisco Redevelopment Agency and the City Council will hold a Joint Special Meeting on Wednesday, March 22, 2017, at 6:00 p.m., in the Municipal Services Building, Council Chambers, 33 Arroyo Drive, South San Francisco, California. Purpose of the meeting: Call to Order. Roll Call. Agenda Review. Public Comments - comments are limited to items on the Joint Special Meeting Agenda. ADMINISTRATIVE BUSINESS Report regarding a Resolution approving an Exclusive Negotiating Rights Agreement (ENRA) between the City of South San Francisco, the South San Francisco Successor Agency and ROEM Development Corporation for the properties located at 418 Linden Avenue (APN 012-314-010) and 201-219 Grand Avenue (APNs 012-316-110, 012-316-100, 012-316-090 and 012-316-080). (Julie Barnard, Economic Development Coordinator) 1. Resolution approving an Exclusive Negotiating Rights Agreement (ENRA) between the South San Francisco Successor Agency, the City of South San Francisco and ROEM Development Company for the properties located at 201 Grand Avenue, 207 Grand Avenue, 217-219 Grand Avenue (APNs 012-316-100, 012-316-110, 012-316-080 and 012-316-090), and 418 Linden Avenue (APN 012-314-010). 1a. CLOSED SESSION Closed Session: Conference with Real Property Negotiators (Pursuant to Government Code Section 54956.8) Property: Former PUC Parcels: Parcel A1 (APN 011322030); Parcel A2a (APN 011326030, 093331070 & 093331080); Parcel A3 (APN 011312050) Negotiating Parties: City of South San Francisco and Oversight Board to the Successor Agency to the former Redevelopment Agency Negotiations: Review Price and Terms. 2. Adjournment. Page 2 City of South San Francisco Printed on 4/6/2017 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:17-194 Agenda Date:3/22/2017 Version:1 Item #:1. Report regarding a Resolution approving an Exclusive Negotiating Rights Agreement (ENRA)between the City of South San Francisco,the South San Francisco Successor Agency and ROEM Development Corporation for the properties located at 418 Linden Avenue (APN 012-314-010)and 201-219 Grand Avenue (APNs 012- 316-110, 012-316-100, 012-316-090 and 012-316-080). (Julie Barnard, Economic Development Coordinator) RECOMMENDATION It is recommended that the City Council and Successor Agency adopt a resolution approving an Exclusive Negotiating Rights Agreement (ENRA)between the City of South San Francisco (City),the South San Francisco Successor Agency (Agency)and ROEM Development Corporation for the properties located at 418 Linden Avenue (APN 012-314-010)and 201-219 Grand Avenue (APNs 012-316- 110, 012-316-100, 012-316-090 and 012-316-080). BACKGROUND/DISCUSSION In December 2015,the City approved the Grand &Linden Project,which will develop two key downtown parcels:201-219 Grand Avenue (site owned by Successor Agency)and 418 Linden Avenue (site owned by City), as shown on the attached site map. The two sites are approved for development as follows: ·201-219 Grand Avenue (201 Grand)is entitled for 46 housing units with ground floor commercial,a leasing office and a resident lounge. ·418 Linden Avenue is entitled for 38 housing units, with some flexibility to allow for live/work spaces. At the time of project approval,the City and Agency also approved a Disposition and Development Agreement (DDA)with Brookwood Equities LLC.In the ensuing months,Brookwood was unable to obtain financing or advance the project,and as a result the City and Agency terminated the DDA.According to the terms of the DDA,after termination,the City retained the project entitlements.This allowed the City to solicit a new developer with the entitled proposal.Staff conducted an extensive Request for Proposals (RFP)process and,on December 14,2016,the City and Agency selected a developer,ROEM Development Corporation.On January 23,2017,the Oversight Board approved the Agency’s recommendation for ROEM for the Agency-owned property (i.e., 201 Grand Ave.). Exclusive Negotiating Rights Agreement Since the developer selection,staff has been working closely with the ROEM team to negotiate an Exclusive Negotiating Rights Agreement (ENRA).The purpose of the ENRA is to establish procedures and standards for the negotiation between the Agency/City and ROEM Development in order to reach a Purchase and Sale Agreement (PSA).In addition,it provides the developer with the necessary site control and assurances to proceed with preparations for construction which would include activities such as generating construction drawings. In their RFP response,ROEM Development proposed increasing the number of affordable units from 17 to 38 units,distributed evenly over the two buildings (i.e.,201 Grand and 418 Linden).The affordability levels would be amended from 60 to 80 percent of Area Mean Income (AMI)to all below 60 percent of AMI. Therefore,in addition to negotiating a PSA during the ENRA term,the City and ROEM will also negotiate an City of South San Francisco Printed on 4/6/2017Page 1 of 2 powered by Legistar™ File #:17-194 Agenda Date:3/22/2017 Version:1 Item #:1. Affordable Housing Agreement (AHA) and Development Agreement (DA). Key business points that are contained in the ENRA include the following: ·Sale price: $1,000,000 for 418 Linden Avenue and $1,200,000 for 201 Grand Avenue. ·Deposit:$200,000 deposit will be required upon execution of the ENRA (Agency and City may recover costs for third party assistance and staff time). ·Term:The ENRA is set initially at 120 days with administrative authority to extend by up to 90 days at a charge to the developer of $25,000, if required. ·Documentation of Financial Feasibility:Within 45 days of the ENRA expiration,ROEM must submit a draft pro-forma as well as proof of financing and equity. Next Steps If the ENRA is approved,staff and ROEM will proceed with negotiating the PSA,DA and AHA which is anticipated to appear before the City Council in summer 2017.ROEM has its own general contractor team and wishes to commence construction as quickly as possible. CONCLUSION It is recommended that the City Council and Successor Agency adopt a resolution approving an Exclusive Negotiating Rights Agreement (ENRA)between the City of South San Francisco,the South San Francisco Successor Agency and ROEM Development Corporation for the properties located at 418 Linden Avenue (APN 012-314-010)and 201-219 Grand Avenue (APNs 012-316-110,012-316-100,012-316-090 and 012-316- 080). Attachment: Site Map of Grand Avenue and Linden Avenue City of South San Francisco Printed on 4/6/2017Page 2 of 2 powered by Legistar™ 201 Grand46 units 418 Linden Avenue38 unitsMiller AvenueGrand Avenue Baden A v e n u e Comme r c i a l A v e n u e Air p o r t B o u l e v a r d Cypress AvenueLinden AvenueMaple AvenueSpruce Avenue SSF City Hall Lux Avenue Future SSF Caltrain Station City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:17-230 Agenda Date:3/22/2017 Version:1 Item #:1a. Resolution approving an Exclusive Negotiating Rights Agreement (ENRA)between the South San Francisco Successor Agency,the City of South San Francisco and ROEM Development Company for the properties located at 201 Grand Avenue,207 Grand Avenue,217-219 Grand Avenue (APNs 012-316-100,012-316-110, 012-316-080 and 012-316-090), and 418 Linden Avenue (APN 012-314-010). WHEREAS,the City of South San Francisco (“City”)is the owner of certain real property (“418 Linden”) located in the City of South San Francisco,California,known as County Assessor’s Parcel Numbers (“APN”) 012-314-010; and WHEREAS,the Successor Agency (“Agency”)is the owner of certain real property at 201 Grand Avenue,207 Grand Avenue,217-219 Grand Avenue (“201 Grand”)located in the City of South San Francisco,California, known as APNs 012-316-100, 012-316-110, 012-316-080 and 012-316-090; and WHEREAS,201 Grand is entitled for 46 housing units with ground floor commercial,a leasing office and a resident lounge; and WHEREAS,418 Linden is entitled for 38 housing units,with some potential ground floor live/work spaces; and WHEREAS,the City and Agency approved a Disposition and Development Agreement (“DDA”)with Brookwood Equities LLC; and WHEREAS,the City and Agency terminated the DDA with Brookwood and subsequently solicited a new developer for the development of 201 Grand and 418 Linden; and WHEREAS, ROEM Development Corporation was selected as the preferred developer (“Developer”); and WHEREAS,City staff and Developer have negotiated an Exclusive Negotiating Rights Agreement (“ENRA”), hereto attached as Exhibit A; and WHEREAS,the purpose of the ENRA is to establish procedures and standards for the negotiation between the Agency/City and Developer in order to reach a Purchase and Sale Agreement (“PSA”). NOW THEREFORE BE IT RESOLVED that the Agency Board and City Council does hereby resolve as follows: 1.The Recitals set forth above are true and correct, and are incorporated herein by reference. 2.The Exclusive Negotiating Rights Agreement,substantially in the form attached hereto as Exhibit A,is hereby approved,and the Executive Director or his designee is hereby authorized to execute it on behalf City of South San Francisco Printed on 4/6/2017Page 1 of 2 powered by Legistar™ File #:17-230 Agenda Date:3/22/2017 Version:1 Item #:1a. hereby approved,and the Executive Director or his designee is hereby authorized to execute it on behalf of the Successor Agency;and the City Manager or his designee is hereby authorized to execute it on behalf of the City. 3.The Executive Director/City Manager is hereby authorized to make revisions to the Exclusive Negotiating Right Agreement,which do not materially or substantially increase the Agency’s or City’s obligations thereunder;to sign all documents;to make all approvals and take all actions necessary or appropriate to carry out and implement the intent of this Resolution,with review and approval as to form by the City Attorney/Agency Counsel. ****** City of South San Francisco Printed on 4/6/2017Page 2 of 2 powered by Legistar™ EXHIBIT A EXCLUSIVE NEGOTIATING RIGHTS AGREEMENT ROEM DEVELOPMENT CORPORATION EXCLUSIVE NEGOTIATING RIGHTS AGREEMENT by and amongst ROEM DEVELOPMENT CORPORATION, CITY OF SOUTH SAN FRANCISCO, and SOUTH SAN FRANCISCO SUCCESSOR AGENCY DRAFT 02-14-2017 EXCLUSIVE NEGOTIATING RIGHTS AGREEMENT ROEM DEVELOPMENT CORPORATION -1- THIS EXCLUSIVE NEGOTIATING RIGHTS AGREEMENT (this "Agreement") is entered into by and between the CITY OF SOUTH SAN FRANCISCO, a municipal corporation ("City"), the SOUTH SAN FRANCISCO SUCCESSOR AGENCY, a public agency ("Agency"), and ROEM DEVELOPMENT CORP, a Corporation ("Developer"), dated as of______________ (the "Effective Date"), which along with the South San Francisco Oversight Board, are each referred to as "Party" or collectively referred to as the "Parties." WHEREAS, the City is the owner of certain real property ("Linden Property") located in the City of South San Francisco, California, known as County Assessor's Parcel Numbers 012-314-010 (418 Linden Avenue), and the Agency is the owner of certain real property ("Grand Property") located in the City of South San Francisco, California, known as County Assessor's Parcel Numbers 012-316-110, 012-316-100, 012-316-090 and 012-316-080 (201- 219 Grand Avenue); as more particularly described in Exhibit A attached hereto and incorporated herein by this reference (together, “Properties”); and WHEREAS, Developer intends to create two special purpose entities: ROEM Grand Venture LLC ("RGV") for the development of the Grand Property and ROEM Linden Venture LLC ("RLV") for the development of the Linden Property, to serve as the ownership entities for each respective property; and WHEREAS, on June 29, 2011 the legislature of the State of California (the “State”) adopted Assembly Bill x1 26 (“AB 26”), which amended provisions of the Redevelopment Law; and WHEREAS, pursuant to AB 26 and the California Supreme Court decision in California Redevelopment Association, et al. v. Ana Matosantos, et al., which upheld AB 26 (together with AB 1484, the “Dissolution Law”), the Agency was dissolved on February 1, 2012; and WHEREAS, pursuant to the Dissolution Law, the South San Francisco Successor Agency (“Agency”) prepared a Long Range Property Management Plan (“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 California Department of Finance (“DOF”) on October 1, 2015; and, WHEREAS, the Grand Property is included in the LRPMP and is identified as part of an Approved Redevelopment Plan; and, WHEREAS, the LRPMP identifies the Grand Property for disposition and development consistent with those redevelopment plans; and, WHEREAS, the Agency and City are interested in selling the Properties to Developer contingent upon Developer preparing all construction documents necessary for approval by the City of South San Francisco and securing all necessary funding for the construction of 84 dwelling units (“Project”) on the Properties; and EXHIBIT A EXCLUSIVE NEGOTIATING RIGHTS AGREEMENT ROEM DEVELOPMENT CORPORATION WHEREAS, the Developer has requested the exclusive right to collaborate and negotiate with the Agency and the City for the purpose of reaching agreement on a project description, appropriate land uses, economic feasibility, and a definitive agreement whose terms and conditions would govern any conveyance of the Properties and the development of the Properties; and WHEREAS, Agency and City desire to grant Developer the exclusive right to collaborate and negotiate with Agency and City with regard to development of the Properties. NOW THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows. 1. Good Faith Efforts to Negotiate. The Parties will use their best reasonable efforts to successfully negotiate: (i) a Purchase Agreement which will describe the terms and conditions governing the purchase of the Properties, and (ii) a Development Agreement between the Developer and City that will set forth the requirements and entitlements for the Project. The Parties will diligently and in good faith pursue such negotiations. Furthermore, the Parties will use their best reasonable efforts to obtain any third-party consent, authorization, approval, or exemption required in connection with the transactions contemplated hereby. This Agreement does not impose a binding obligation on Agency or City to convey any interest in the Properties to Developer, nor does it obligate the Agency or City to grant any approvals or authorizations required for the Properties or any project or improvements constructed thereon. a. If Developer has not continued to negotiate diligently and in good faith, Agency or City will give written notice thereof to Developer who will then have ten (10) business days to commence negotiating in good faith. Following the failure of Developer to thereafter commence negotiating in good faith within such ten (10) business day period, this Agreement may be terminated by Agency or City. If this Agreement is terminated by Agency or City pursuant to the above sentence, Developer acknowledges and agrees that Agency and City will suffer damages, including lost opportunities to pursue other development alternatives for the Property and delayed receipt of property tax revenues from the Property, and that it is impracticable and infeasible to fix the actual amount of such damages. Therefore, the Parties agree that if this Agreement is terminated as provided above, Agency and City will retain the Payment (as defined in Section 5 of this Agreement, infra), plus any interest thereon, as fixed and liquidated damages and not as a penalty. b. If Agency or City has not continued to negotiate diligently and in good faith, Developer will give written notice thereof to Agency or City which will then have ten (10) business days to commence negotiating in good faith. Following the failure of Agency or City to thereafter commence negotiating in good faith within such ten (10) business-day period, this Agreement may be terminated by Developer. In the EXHIBIT A EXCLUSIVE NEGOTIATING RIGHTS AGREEMENT ROEM DEVELOPMENT CORPORATION event of such termination by Developer, Agency and City will return the unused portion of the Payment to Developer in accordance with the provisions of Section 5 of this Agreement. c. If, notwithstanding Agency's, City’s, and Developer's mutual diligent, good faith negotiations, the Parties have not entered into a Purchase Agreement on or before expiration of the Term of this Agreement (as defined in Section 3 of this Agreement) or any extension thereof, Agency and City will return the Payment after deducting any expenditures made for costs incurred by the Agency and City pursuant to this Agreement. d. If performance of this Agreement results in execution of a Purchase Agreement, the Agency and City will apply any unused portion of the Payment to either the agreed- upon deposit or purchase price of the Purchase Agreement. 2. Developer’s Exclusive Right to Negotiate With Agency and City. Agency and City agree that it will not, during the term of this Agreement, directly or indirectly, through any officer, employee, agent, or otherwise, solicit, initiate or encourage the submission of bids, offers or proposals by any person or entity with respect to the acquisition of any interest in the Properties or the development of the Properties, and Agency and City will not engage any broker, financial adviser or consultant to initiate or encourage proposals or offers from other parties with respect to the disposition or development of the Property or any portion thereof. Furthermore, Agency and City will not, directly or indirectly, through any officer, employee, agent or otherwise, engage in negotiations concerning any such transaction with, or provide information to, any person other than Developer and its representatives with a view to engaging, or preparing to engage, that person with respect to the disposition or development of the Properties or any portion thereof. 3. Term. a. The term of this Agreement (“Term”) commences on the Effective Date, and will terminate one hundred and twenty (120) days from the Effective Date, unless extended or earlier terminated as provided herein. b. During the Term, Developer will provide Agency and City with progress reports every thirty (30) days with respect to Developer’s due diligence review of the Properties, preparation of architectural and construction plans, and general progress toward development of the Properties. c. The Term of this Agreement may be extended for up to a maximum of ninety (90) additional days upon the mutual written agreement of Developer, City, and Agency acting through and in the discretion of its Agency Executive Director/City Manager, or his/her designee and the payment by Developer of $25,000. Developer understands that the Agency and City will only consider an extension of the Term of this Agreement where Developer has demonstrated, to the Agency’s EXHIBIT A EXCLUSIVE NEGOTIATING RIGHTS AGREEMENT ROEM DEVELOPMENT CORPORATION and City’s satisfaction, substantial progress towards development of the Properties, such as by submittal of a building permit application, submittal of architecture and construction plans, payment of any applicable processing and plan check fees , or undergoing City review of any necessary land use entitlements , including a Development Agreement. 4. Relationship of the Parties. Nothing in this Agreement creates between the Parties the relationship of lessor and lessee, of buyer and seller, or of partners or joint venturers. 5. Payment for Agency and City Costs. a. In consideration for this Agreement and the costs the Agency and City have and will incur in furtherance of this Agreement and the negotiation of the Purchase Agreement, Developer will, within five (5) days of the Effective Date, submit to Agency and City a deposit (“Payment”) in the amount of Two Hundred Thousand Dollars ($200,000) in immediately available funds, split equally between the Agency and the City. b. Agency and City will deposit the Payment in separate interest bearing accounts of the Agency and the City and any interest, when received by Agency or City, will become part of the Payment. Agency and City agree to account for deposit, interest earnings, and any expenditures made related to the execution of this Agreement consistent with all reporting requirements of the State of California Department of Finance (“DOF”). c. On or before the expiration of the Term of this Agreement, the Agency or City may, in accordance with the provisions of Section 1(c) of this Agreement, draw on the Payment to reimburse the Agency’s or City’s cost for third-party assistance, legal fees, and staff time in the negotiations for and preparation of the Purchase Agreement and any related documents. The Agency or City will notify the Developer of the identity, qualifications, scope of work and budget for any third party consultants that will be paid for by the Payment prior to authorizing work under any such third party contract and will provide Developer a written account of such reimbursement, including copies of any third party invoices under approved scopes of work (not including any information subject to attorney client privilege) upon the request of Developer. d. Any amount remaining in the Payment after expiration of the Term of this Agreement or execution of a Purchase Agreement, whichever comes first, and taking into account expenditures authorized by Section 5(b) above, will be disposed of as provided in Section 1 of this Agreement. 6. Terms and Conditions of the Purchase Agreement. The Parties agree to use their best reasonable efforts to successfully negotiate a Purchase Agreement including, but not limited to, the terms set forth in Exhibit B. The Parties agree the terms shall be generally EXHIBIT A EXCLUSIVE NEGOTIATING RIGHTS AGREEMENT ROEM DEVELOPMENT CORPORATION based on those set forth herein and in Exhibit B attached hereto and incorporated herein by reference. 7. Developer’s Studies; Right of Entry. a. During the Term of this Agreement, Developer will use its best reasonable efforts to prepare, at Developer’s expense, any studies, surveys, plans, specifications and reports (“Developer’s Studies”) Developer deems necessary or desirable in Developer’s sole discretion, to complete its due diligence for the Property. Developer’s Studies may include, without limitation, title investigation, marketing, feasibility, soils, seismic and environmental studies, financial feasibility analyses and design studies. The Developer will have rights of access to the Property to prepare the Developer’s Studies. b. Developer hereby agrees to notify the Agency and City twenty-four (24) hours in advance of its intention to enter the Property. c. Developer will provide the Agency and City with work plans, drawings, and descriptions of any intrusive sampling it intends to do. Developer must keep the Property in a safe condition during its entry. Developer shall repair, restore and return the Property to its condition immediately preceding Developer’s entry thereon at Developer’s sole expense. d. Without limiting any other indemnity provisions set forth in this Agreement, Developer shall indemnify, defend (with counsel approved by Agency and City) and hold the Agency and City, its officials, officers, employees, consultants, contractors and volunteers ("Indemnities") harmless from and against all claims resulting from or arising in connection with entry upon the Property by Developer or Developer’s agents, employees, consultants, contractors or subcontractors pursuant to this Section 7; provided however, Developer will have no indemnification obligation with respect to the gross negligence or willful misconduct of any Agency and City Indemnities. Developer’s indemnification obligations set forth in this Section 7 shall survive the termination of this Agreement and shall apply to any claims filed against the Agency or City within eighteen months of termination of this Agreement. e. If upon expiration of the Term of this Agreement the Parties have not successfully negotiated a Purchase Agreement, Developer will provide Agency and City within fifteen (15) days following said date of expiration copies of the Developer’s Studies completed by such date, not including the intellectual property of Developer. Developer will also provide Agency and City with copies of any Developer’s Studies completed after the expiration of the Term within fifteen (15) days following completion of such studies, or if Developer intends not to complete any Developer Studies, Developer will provide Agency and City with copies of such uncompleted studies. EXHIBIT A EXCLUSIVE NEGOTIATING RIGHTS AGREEMENT ROEM DEVELOPMENT CORPORATION 8. City's Reports and Studies. Within twenty (20) days following the Effective Date, City will make available to Developer for review or copying at Developer's expense all nonprivileged studies, surveys, plans, specifications, reports, and other documents with respect to the Property that City has in its possession or control, which have not already been provided. Studies or documents prepared by City and its agents solely for the purpose of negotiating the terms of a Purchase Agreement are not required to be provided by City to Developer and are excluded from this requirement 9. Agency’s Reports and Studies. Within twenty (20) days following the Effective Date, Agency will make available to Developer for review or copying at Developer’s expense all nonprivileged studies, surveys, plans, specifications, reports, and other documents with respect to the Property that Agency has in its possession or control, which have not already been provided. Studies or documents prepared by Agency and its agents solely for the purpose of negotiating the terms of a Purchase A greement are not required to be provided by Agency to Developer and are excluded from this requirement. 10. Developer’s Pro Forma, Evidence of Financing and Schedule for Conveyance of Property Following Potential Approval of a Purchase Agreement. At least 45 days prior to City and Agency consideration of the Purchase Agreement, Developer will provide City and Agency with a pro forma for the Project that confirms the financial feasibility of Developer's proposed development of the Property and planned financing for the Project. The Parties agree that the Purchase Agreement will contain language that provides that: (l ) not later than forty-five (45) days prior to conveyance of the Property, Developer will provide evidence satisfactory to City and Agency (in City’s and Agency’s sole discretion) that Developer has secured binding commitments, subject only to commercially reasonable conditions, for all funding necessary for the successful purchase of the Property and completion of the Project, and (2) prior to conveyance of the Property, Developer shall obtain approval of final construction plans for the Properties, and issuance of building permits for the Properties. Not later than forty five (45) days prior to consideration of the Purchase Agreement, Developer shall provide a development schedule for all Properties. 11. Full Disclosure. Developer is required to make full disclosure to City and Agency of its principals; officers; major stockholders, partners or members; joint venturers; negotiators; development managers; consultants and directly-involved managerial employees (collectively, “Developer Parties”); and all other material information concerning Developer. Any change in the identity of the Developer Parties will be subject to the approval of City and Agency, which will not be unreasonably withheld. Developer will make and maintain full disclosure to City and Agency of its methods of financing to be used in the acquisition and development of the Property. 12. Periodic Reporting to Governing Bodies. Agency will report periodically to the Agency Board and/or the Oversight Board of the Successor Agency on the status of negotiations, City will report periodically to the City Council, and Developer may be asked to attend such meetings to provide those bodies with a status update of their development efforts related to this Agreement. EXHIBIT A EXCLUSIVE NEGOTIATING RIGHTS AGREEMENT ROEM DEVELOPMENT CORPORATION 13. Confidentiality; Dissemination of Information. To the extent permitted by law, during the term of this Agreement, each Party will obtain the consent of the other Parties prior to issuing or permitting any of its officers, employees or agents to issue any press release or other information to the press with respect to this Agreement; provided however, no Party will be prohibited from supplying any information to its representatives, agents, attorneys, advisors, financing sources and others to the extent necessary to accomplish the activities contemplated hereby so long as such representatives, agents, attorneys, advisors, financing sources and others are made aware of the terms of this Section. Nothing contained in this Agreement will prevent any Party at any time from furnishing any required information to any governmental entity or authority pursuant to a legal requirement or from complying with its legal or contractual obligations. 14. Execution of Purchase Agreement. Neither the City nor the Agency has a legal obligation to grant any approvals or authorizations for the sale of the Property or any development thereon until the Purchase Agreement has been approved by the City Council, Agency Board, and the South San Francisco Oversight Board. 15. Termination. a. City or Agency shall have the right to terminate this Agreement with thirty (30) days' written notice, with or without cause. b. Developer shall have the right to terminate this Agreement with cause, upon sixty (60) days’ written notice to City and Agency, if funding cannot be obtained. c. This Agreement may be terminated at any time by mutual consent of the Parties. d. City or Agency will have the right to terminate this Agreement upon its good faith determination that Developer is not proceeding diligently and in good faith to carry out its obligations pursuant to this Agreement. City or Agency will exercise such right in accordance with the provisions set forth in Section 1 of this Agreement. e. Developer will have the right to terminate this Agreement, in accordance with the provisions set forth in Section 1 of this Agreement, if the results of its investigation of the Property are unsatisfactory, in Developer’s sole and absolute discretion, with respect to Developer’s desired development activities or if Developer is unable to obtain other necessary approvals, rights or interests. f. None of the Parties will have the right to seek an award of damages as a result of the termination of this Agreement pursuant to this Section. g. With termination prior to the commencement of construction, City and Agency retains ownership of Properties. 16. Effect of Termination. Upon termination as provided herein, or upon the expiration of the Term and any extensions thereof without the Parties having successfully negotiated a Purchase Agreement, this Agreement will forthwith be void, and there will be no further EXHIBIT A EXCLUSIVE NEGOTIATING RIGHTS AGREEMENT ROEM DEVELOPMENT CORPORATION liability or obligation on the part of any of the Parties or their respective officers, employees, agents or other representatives; provided however, the provisions of Section 13 (Confidentiality; Dissemination of Information), Section 18 (Indemnification), and Section 22 (Brokers) will survive such termination. Provided further, that upon termination or expiration of this Agreement without the Parties having successfully negotiated a Purchase Agreement, Developer will deliver to City and Agency all of the Developer’s Studies pursuant to the provisions of Section 7 of this Agreement and all Reports and Studies provided pursuant to the provisions of Sections 8 and 9 of this Agreement. 17. Notices. Except as otherwise specified in this Agreement, all notices to be sent pursuant to this Agreement will be made in writing, and sent to the Parties at their respective addresses specified below or to such other address as a Party may designate by written notice delivered to the other parties in accordance with this Section. All such notices will be sent by: a. Personal delivery, in which case notice is effective upon delivery; b. Certified or registered mail, return receipt requested, in which case notice will be deemed delivered on receipt if delivery is confirmed by a return receipt; c. Nationally recognized overnight courier, with charges prepaid or charged to the sender’s account, in which case notice is effective on delivery if delivery is confirmed by the delivery service; d. Facsimile transmission, in which case notice will be deemed delivered upon transmittal, provided that: i. A duplicate copy of the notice is promptly delivered by first -class or certified mail or by overnight delivery, or ii. A transmission report is generated reflecting the accurate transmission thereof. Any notice given by facsimile will be considered to have been received on the next business day if it is received after 5:00 p.m. recipient’s time or on a nonbusiness day. City/Agency: City of South San Francisco and South San Francisco Successor Agency 400 Grand Avenue South San Francisco, CA 94080 Attn: City Manager Tel (650) 877-8501 Fax (650) 829-6609 with a copy to: Meyers Nave Attn: Jason Rosenberg 555 12th Street, Suite 1500 EXHIBIT A EXCLUSIVE NEGOTIATING RIGHTS AGREEMENT ROEM DEVELOPMENT CORPORATION Oakland, CA 94607 Tel (510) 808-2000 Fax (510) 444-1108 Developer: ROEM Development Corporation 1650 Lafayette Street Santa Clara, CA 95050 Attention: Rob Wilkins Telephone: (408) 984-5600 x16 Email: [email protected] 18. Indemnification. Developer hereby covenants, on behalf of itself and its permitted successors and assigns, to indemnify, hold harmless and defend the Agency and the City of South San Francisco and their elected and appointed officials, officers, agents, representatives and employees (“Indemnitees”) from and against all claims, costs (including without limitation reasonable attorneys’ fees and litigation costs) and liability, arising out of or in connection with this Agreement and/or arising out of or in connection with the Developer’s access to and entry on the Property pursuant to Section 7 of this Agreement; provided however, Developer will have no indemnification obligation with respect to the gross negligence or willful misconduct of any Indemnitee. 19. Severability. If any term or provision of this Agreement or the application thereof will, to any extent, be held to be invalid or unenforceable, such term or provision will be ineffective to the extent of such invalidity or unenforceability without invalidating or rendering unenforceable the remaining terms and provisions of this Agreement or the application of such terms and provisions to circumstances other than those as to which it is held invalid or unenforceable unless an essential purpose of this Agreement would be defeated by loss of the invalid or unenforceable provision. 20. Entire Agreement; Amendments In Writing; Counterparts. This Agreement contains the entire understanding of the Parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements and understandings, oral and written, between the Parties with respect to such subject matter. This Agreement may be amended only by a written instrument executed by the Parties or their successors in interest. This Agreement may be executed in multiple counterparts, each of which will be an original and all of which together will constitute one agreement. 21. Successors and Assigns; No Third-Party Beneficiaries. This Agreement will be binding upon and inure to the benefit of the Parties and their respective successors and assigns; provided however, that neither Party will transfer or assign any of such Party’s rights hereunder by operation of law or otherwise without the prior written consent of the other Party, and any such transfer or assignment without such consent will be void. Notwithstanding the foregoing, Developer is permitted to assign this Agreement without such written consent, provided that Developer assigns this Agreement to (i) an entity that is wholly controlled by Developer, or (ii) an entity in which the Developer is a member and has day to day management responsibilities for such entity. Subject to the immediately EXHIBIT A EXCLUSIVE NEGOTIATING RIGHTS AGREEMENT ROEM DEVELOPMENT CORPORATION preceding sentence, this Agreement is not intended to benefit, and will not run to the benefit of or be enforceable by, any other person or entity other than the Parties and their permitted successors and assigns. 22. Brokers. Each Party warrants and represents to the other that no brokers have been retained or consulted in connection with this transaction. Each Party agrees to defend, indemnify and hold harmless the other Party from any claims, expenses, costs or liabilities arising in connection with a breach of this warranty and representation. The terms of this Section will survive the expiration or earlier termination of this Agreement. 23. Captions. The captions of the sections and articles of this Agreement are for convenience only and are not intended to affect the interpretation or construction of the provisions hereof. 24. Governing Law. This Agreement will be governed by and construed in accordance with the laws of the State of California. [ REMAINDER OF PAGE INTENTIONALLY LEFT BLANK ] EXHIBIT A EXCLUSIVE NEGOTIATING RIGHTS AGREEMENT ROEM DEVELOPMENT CORPORATION IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above. AGENCY By: _______________________________ Mike Futrell Executive Director ATTEST: By: _______________________________ Agency Clerk APPROVED AS TO FORM: By: _______________________________ Jason Rosenberg Agency Counsel CITY By: _______________________________ Mike Futrell City Manager ATTEST: By: _______________________________ City Clerk APPROVED AS TO FORM: By: _______________________________ Jason Rosenberg City Attorney DEVELOPER By: _______________________________ Robert Emami President EXHIBIT A EXCLUSIVE NEGOTIATING RIGHTS AGREEMENT ROEM DEVELOPMENT CORPORATION EXHIBIT A PROPERTIES (Attach legal description of Properties) EXHIBIT A EXCLUSIVE NEGOTIATING RIGHTS AGREEMENT ROEM DEVELOPMENT CORPORATION EXHIBIT B PURCHASE AGREEMENT TERMS Criteria ROEM Development Corporation Purchase Price Offered (201 Grand) $1,200,000 Purchase Price Offered (418 Linden) $1,000,000 Prevailing Wages for Construction Yes Sites 201 Grand Ave. & 418 Linden Ave. Development Type Market-rate rental units and affordable units. Height (floors) 60 feet (5 stories) Proposed Number of Units 84 Total units  Grand – 46 units  Linden – 38 units Unit Size Composition  Seven Studio apartment units  39 One-bedroom apartment units  33 Two-bedroom apartment units  Five Three-bedroom apartments units Affordable Units 20% BMR required per Inclusionary Ordinance Design & Construction Period  Six (6) months for construction documents  Eighteen (18) months for construction EXHIBIT A EXCLUSIVE NEGOTIATING RIGHTS AGREEMENT ROEM DEVELOPMENT CORPORATION EXHIBIT C SCHEDULE OF PERFORMANCE Milestone Date ENRA execution & Effective Date March 27, 2017 $200,000 Deposit Payment April 1, 2017 Progress Report 1 April 26, 2017 Progress Report 2 May 26, 2017 Progress Report 3 June 25, 2017 Developer’s Pro Forma, Evidence of Financing and Schedule for Conveyance of Property Following Potential Approval of a Purchase Agreement June 12, 2017 ENRA expires July 25, 2017 Administrative extension October 23, 2017 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:17-144 Agenda Date:3/22/2017 Version:1 Item #:2. Closed Session: Conference with Real Property Negotiators (Pursuant to Government Code Section 54956.8) Property:Former PUC Parcels:Parcel A1 (APN 011322030);Parcel A2a (APN 011326030,093331070 & 093331080); Parcel A3 (APN 011312050) Negotiating Parties:City of South San Francisco and Oversight Board to the Successor Agency to the former Redevelopment Agency Negotiations: Review Price and Terms. City of South San Francisco Printed on 4/6/2017Page 1 of 1 powered by Legistar™