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Resolution approving the Fourth Amendment to the Exclusive Negotiating Rights Agreement between Ensemble Investments, LLC and the City for a proposed hotel development at Oyster Point.
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WHEREAS, the City is the owner of certain real property (the “Property”) located in the City of South San Francisco, California, known as County Assessor’s Parcel Number (“APN”) 015-010-970, and more particularly shown as Parcel 6 on Parcel Map 17-0002 attached as Exhibit A; and
WHEREAS, on March 23, 2011, the City Council approved the Oyster Point Specific Plan and certified the Phase 1 Project Environmental Impact Report which, among other things, planned for and analyzed the potential environmental impacts of developing a new, full-service hotel with up to 350 rooms and 40,000 square feet of retail uses on the Property; and
WHEREAS, a Disposition and Development Agreement (“DDA”) was executed on March 23, 2011, between Oyster Point Ventures, LLC, the South San Francisco Redevelopment Agency, and the City of South San Francisco for the master development of Oyster Point, including the potential development of a hotel on the Property; and
WHEREAS, the developer obligations identified in the DDA were reassigned to KR Oyster Point, LLC (“Kilroy”) in 2018, and requires Kilroy to perform and complete certain site work, grading, and installation of infrastructure to prepare the Property for development; and
WHEREAS, in 2018, the City selected Ensemble Investments, LLC (“Ensemble”) as the preferred developer for the project and authorized the City Manager to execute an ENRA with Ensemble, attached as Exhibit B; and
WHEREAS, the City Council approved the First Amendment to the ENRA which extended the ENRA until November 25, 2020, attached as Exhibit C; and
WHEREAS, the City Council approved the Second Amendment to the ENRA which extended the ENRA until April 23, 2021, attached as Exhibit D; and
WHEREAS, the City Council approved the Third Amendment to the ENRA which extended the ENRA until July 22, 2021, attached as Exhibit E; and
WHEREAS, the City and Ensemble have remaining terms that need to be negotiated before the City Council can consider the approval of a mutually agreed upon Purchase and Sale Agreement.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San Francisco that the City Council hereby:
1. Authorizes the City Manager to execute the Fourth Amendment to the Exclusive Negotiating Rights Agreement with Ensemble Investments (Fourth Amendment), attached as Exhibit F, on behalf of the City in substantially the same form as attached hereto; to make any revisions, amendments, corrections and modifications to the Fourth Amendment, subject to the approval of the City Attorney, deemed necessary to carry out the intent of this Resolution and which do not materially alter or increase the City’s obligations thereunder; and
2. Authorizes the City Manager to take any other related actions consistent with the intent of the resolution.
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