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Resolution approving a Third Amendment to the Purchase and Sale Agreement for the property located at 432 Baden assigning the Agreement from Baden Developments LLC to For the Future Housing, modifying the development to a fully-affordable housing product, and reducing the purchase price from $1,100,000 to $1.
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WHEREAS, on June 29, 2011, the Legislature of the State of California (“State”) adopted Assembly Bill x1 26 (“AB 26”), which amended provisions of the State’s Community Redevelopment Law (Health and Safety Code sections 33000 et seq.) (“Dissolution Law”), pursuant to which the former Redevelopment Agency of the City of South San Francisco (“City”) was dissolved on February 1, 2012; and
WHEREAS, the City elected to become the Successor Agency to the Redevelopment Agency of the City of South San Francisco (“Successor Agency”); and
WHEREAS, pursuant to Health and Safety Code Section 34191.5(c)(2)(C), property shall not be transferred to a successor agency, city, county or city and county, unless a Long Range Property Management Plan (“LRPMP”) has been approved by the Oversight Board and the California Department of Finance (“DOF”); and
WHEREAS, in accordance with the Dissolution Law, the Successor Agency prepared a 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 DOF on October 1, 2015; and
WHEREAS, consistent with the Dissolution Law and the LRPMP, certain real properties located in the City of South San Francisco, that were previously owned by the former Redevelopment Agency, were transferred to the Successor Agency (“Agency Properties”); and
WHEREAS, on October 18, 2016, the City entered into an Amended and Restated Master Agreement for Taxing Entity Compensation (“Compensation Agreement”) with the various local agencies who receive shares of property tax revenues from the former redevelopment project area (“Taxing Entities”), which provides that upon approval by the Oversight Board of the sale price, and consistent with the LRPMP, the proceeds from the sale of any of the Agency Properties will be distributed to the Taxing Entities in accordance with their proportionate contributions to the Real Property Tax Trust Fund for the former Redevelopment Agency; and
WHEREAS, the LRPMP, prepared by the Successor Agency and approved by the Oversight Board for the Successor Agency to the Redevelopment Agency of the City of South San Francisco (“Oversight Board”), designated 432 Baden Avenue (“the Site”), County Assessor' s Parcel Number 012-321-160 (“Property”), to be sold, with the proceeds of the sale distributed to the taxing entities; and,
WHEREAS, to carry out the terms of the LRPMP, the Successor Agency transferred the Agency Properties, including the Property, to the City for disposition consistent with the terms of the LRPMP; and,
WHEREAS, the Property was transferred from the Agency to the City pursuant to Grant Deeds recorded on May 16, 2017; and,
WHEREAS, Baden Developments LLC (“Baden”) own the adjacent property, 428 Baden Avenue; and,
WHEREAS, on September 23, 2019, Baden provided the City with a Letter of Intent (“LOI”) for the purchase of the Property for $1,100,000 (“Purchase Price”); and,
WHEREAS, City and Baden entered into that certain Purchase And Sale Agreement And Joint Escrow Instructions (“PSA”) dated February 19, 2020, and;
WHEREAS, City and Baden entered into the First Amendment to the PSA (collectively, “the First Amendment”) on April 9, 2020 which extended the due diligence period and Close of Escrow by six months; and,
WHEREAS, City and Baden entered into the Second Amendment to the PSA (collectively, “the Agreements”) on December 21, 2020 which extended the Close of Escrow period to May 17, 2021 and allowed for two 90-day administrative extensions; and,
WHEREAS, on April 29, 2021, Baden opted to utilize one of the administrative extensions which extended the Close of Escrow period to August 16, 2021; and,
WHEREAS, on August 6, 2020, the City of South San Francisco Planning Commission adopted Resolution 2866-2020 approving Conditional Use Permit (UP19-0005) and Design Review (DR19-0022) for a development project proposed at the Property; and,
WHEREAS, specifically, Resolution 2866-2020 approves a residential development, consisting of 36 rental units utilizing the State Density Bonus Law where three of the units will be dedicated to very low income households and be subject to an Affordable Housing Agreement, and provide 28 parking spaces over 0.32 acres on 428 and 432 Baden Avenue (consisting of two parcels (APNs: 012-321-170 and 012-321-160)) collectively referred to herein as the “Project Site” in the City; and
WHEREAS, For the Future Housing (“Buyer”) have made an offer to Baden to purchase the Project Site; and,
WHEREAS, City and Baden wish to assign Baden’s obligations under the PSA to Buyer; and,
WHEREAS, Buyer has requested the City to reduce the $1,100,000 purchase price and instead effectuate a land donation via nominal purchase price of $1; and,
WHEREAS, in exchange, Buyer will provide a fully-affordable housing development and deliver thirty-six Below Market Rate (“BMR”) units and assume all obligations of Baden under the PSA; and
WHEREAS, the parties have negotiated a Third Amendment to the PSA (“Third Amendment”) to memorialize the foregoing terms and other related provisions.
NOW, THEREFORE, the City Council of the City of South San Francisco does hereby resolve as follows:
1. The Recitals set forth above are true and correct, and are incorporated herein by reference.
2. The Third Amendment, in the form attached hereto as Exhibit A and incorporated herein, is hereby approved, and the City Manager or his designee is hereby authorized to execute it on behalf of the City of South San Francisco; to make minor revisions to the Third Amendment, with review and approval by the City Attorney, which do not materially or substantially increase the 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.
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