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Resolution of the City Council approving the transfer of certain former Redevelopment Agency real property from the Successor Agency to the Former Redevelopment Agency of the City of South San Francisco to the City of South San Francisco as Housing Successor and authorizing a Second Amendment to the Land Lease Agreement with Magnolia SSF LP for 630 Baden Avenue.
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WHEREAS, following the dissolution of all redevelopment agencies in California under Assembly Bill x1 26 (ABx1 26), the City of South San Francisco serves as the Successor Agency to the Former Redevelopment Agency; and
WHEREAS, pursuant to Resolution No. 8-2012, adopted by the City Council of the City of South San Francisco on January 25, 2012, the City of South San Francisco (“City”) agreed that upon dissolution of the Redevelopment Agency of the City of South San Francisco on February 1, 2012, pursuant to Assembly Bill x1 26 (“ABx1 26”), the City would assume the housing functions of the Redevelopment Agency and serve as Housing Successor; and
WHEREAS, Health and Safety Code Section 34176(a), added by Assembly Bill x1 26 and modified by Assembly Bill 1484 (“AB 1484”), provides that the housing assets of a former redevelopment agency shall be transferred to the entity that assumes the housing functions formerly performed by such redevelopment agency (the “Housing Successor”); and
WHEREAS, the Successor Agency to the Former Redevelopment Agency of the City of South San Francisco (“Successor Agency”) is the fee owner of the land located at 630 Baden Avenue in South San Francisco; and
WHEREAS, the Former Redevelopment Agency of the City of South San Francisco and South San Francisco Magnolia Plaza Associates, a California limited partnership, were parties to that certain Land Lease dated as of May 1, 1987 (“Original Lease”). Pursuant to the Original Lease, the Magnolia Plaza project was constructed at 630 Baden Avenue, including affordable residential units; and
WHEREAS, pursuant to an Assignment and Assumption of Land Lease dated as of December 10, 2021, and together with the Original Lease, (collectively the “Lease”), the Successor Agency and South San Francisco Magnolia Plaza Associates assigned all of its right, title, and interest, as tenant under the Original Lease, to Magnolia SSF LP; and
WHEREAS, Magnolia SSF LP agreed to assume the Original Lease for the balance of the term and to perform all of the covenants, duties, and obligations of South San Francisco Magnolia Plaza Associates, as tenant under the Original Lease; and
WHEREAS, Magnolia SSF LP is in the process of securing a new loan from the County of San Mateo intended to support rehabilitation and related project expenses; and
WHEREAS, to facilitate both the loan and the long-term preservation of affordable housing, the Successor Agency wishes to formally transfer the property to the City as Housing Successor, and the City as Housing Successor wishes to formally accept the conveyance of the property.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San Francisco as Housing Successor that the City Council:
1. Hereby accepts the conveyance of real property located at 630 Baden Avenue by the Successor Agency to the City of South San Francisco Redevelopment Agency.
2. Hereby authorizes and directs the City Manager and designees to execute all documents and take all actions necessary to implement this Resolution, including without limitation the execution of grant deeds, certificates of acceptance, Second Amendment to the Land Lease Agreement in substantially the form as included as Exhibit A to this Resolution, and all other necessary instruments, as applicable, subject to approval as to form by the City Attorney.
EXHIBIT A: Draft Second Amendment to the Land Lease Agreement
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