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Resolution approving a Purchase and Sale Agreement with Genentech, Inc. for the disposition of the vacated public streets Cabot Road, Point San Bruno Boulevard, and DNA Way located entirely within the Genentech Campus for the sum of $25,000,000 and authorizing the City Manager to execute the Purchase and Sale Agreement.
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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 Cabot Road, Point San Bruno Boulevard, and DNA as described and depicted in Exhibit A and Exhibit B to the Purchase and Sale Agreement, attached hereto and incorporated herein as Attachment 1; and
WHEREAS, on November 24, 2020, and December 1, 2020, the City Council of the City of San South San Francisco unanimously approved the Genentech Campus Master Plan Update project, which approval included, but was not limited to, adoption of the Development Agreement, certification of that certain Environmental Impact Report for the Genentech Master Plan Update (State Clearinghouse No. 2017052064), approval of that certain Genentech Master Plan Update (“Master Plan”), and approval of certain amendments to the City’s Genentech Master Plan Zoning District so as to facilitate implementation of the Master Plan; and
WHEREAS, the Master Plan articulates a vision for new growth and development within the Campus that fosters intensification of development and infill development by serving as a general guide for the future placement and design of individual buildings and other Campus improvements over time. Because the Master Plan is an overall development that provides the basis for future approvals, it provides for flexibility during implementation. Rather than establishing the location, size, or design of individual buildings and improvements, the Master Plan authorizes such details to be developed in conjunction with future Campus-related land use approvals proposed by Genentech and approved by City in accordance with applicable law, including, but not limited to, the Master Plan and the City’s Municipal Code; and
WHEREAS, to promote the Master Plan’s stated objective of establishing an integrated and walkable Campus that implements a more pedestrian-oriented shared street concept that prioritizes people over motorized vehicles, the Master Plan contemplates the potential reconfiguration of portions of DNA Way where it passes through the central portion of the Master Plan’s “Upper Campus” planning area, thereby improving pedestrian connections between indoor spaces and outdoor spaces so as to activate the Campus core while also permitting continued service vehicle and emergency access along said portions of the existing DNA Way right-of-way through the use of special pavers or other appropriate design treatments; and
WHEREAS, to facilitate the design and future improvement of pedestrian-oriented circulation improvements in accordance with the Master Plan and applicable administrative or discretionary approval processes set forth in the City of South San Francisco Municipal Code, the Parties desire to enter into the Purchase and Sale Agreement to set forth the terms and conditions pursuant to which the City would sell to Genentech the real property that comprises DNA Way, Cabot Road, and Point San Bruno Boulevard; and
WHEREAS, the Purchase and Sale Agreement includes the following deal points:
• Genentech will pay $25,000,000 for the Property and shall be responsible for the costs of maintaining the Property,
• Prior to close of escrow, Genentech and City will execute a Maintenance and Public Access License Agreement which will provide public, City, and emergency access to the Property and outline Genentech’s maintenance obligations for the Property,
• As part of a future development application, Genentech may seek closure of Vacation Area #2 (orange section) without change to the Purchase Price because the Purchase Price set forth in the Purchase and Sale Agreement includes the FMV of said portions of the Property if redeveloped as a non-roadway use,
• Genentech may seek closure of Vacation Area #3 (blue section) and Vacation Area #4 (pink section) after January 1, 2031 as part of a development application to the City but such closure shall require the preparation of an appraisal and supplemental payment to the City,
• Vacation Area #1 (green section) shall remain publicly accessible in perpetuity to ensure public access to the Wind Harp.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of South San Francisco hereby:
1. Approves the Purchase and Sale Agreement between City and Genentech for the disposition of Cabot Road, Point San Bruno Boulevard, and DNA Way located entirely within the Genentech Campus for the sum of $25,000,000, substantially in the form attached hereto and incorporated herein as Attachment 1; and
2. Authorizes the City Manager to execute the Purchase and Sale Agreement, subject to review by the City Attorney and subject to minor revisions and clarifications of the City Attorney that do not otherwise expand the City’s obligations; and
3. Authorizes the City Manager to take any other related actions consistent with the intent of the resolution.
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