Title
Report regarding approval of the Fourth Amendment to an Exclusive Negotiating Rights Agreement with Ensemble Investments, LLC for a proposed hotel development at Oyster Point. (Ernesto Lucero, Economic Development Coordinator)
Recommendation
Staff recommends that the City Council authorize the City Manager to execute the Fourth Amendment to the Exclusive Negotiating Rights Agreement with Ensemble Investments, LLC.
Body
BACKGROUND
In 2011, the City approved the Oyster Point Disposition and Development Agreement (DDA) and the Oyster Point Specific Plan (Specific Plan). These documents established the vision and development plan for Oyster Point; and as part of that vision they identified a 4.7 acre, City-owned parcel as an opportunity site for an upscale hotel. The Specific Plan provided preliminary entitlements for up to 350 hotel rooms and 40,000 sq. ft. of retail. The site (Attachment 1) is ideal for a full-service waterfront hotel connecting to the large employment cluster in Oyster Point, and its proximity to San Francisco International Airport.
On April 11, 2018, the City Council approved a resolution authorizing the City Manager to enter into an Exclusive Negotiating Rights Agreement (ENRA) with Ensemble Investments (Ensemble) to begin negotiating on a proposed hotel development on the City-owned parcel in Oyster Point. The agreement was executed on May 4, 2018.
Since the execution of the ENRA, Ensemble has conducted extensive due diligence, continuing to refine the programming and development of the hotel. Recognizing the complexity of the site, the Council has previously approved three ENRA amendments to allow additional time for negotiations. At this time, staff believes the City and Ensemble have made significant progress I in negotiating key project issues and business terms, and are very close to being able to finalize the terms of a Purchase and Sale Agreement (PSA) for the Council's consideration.
The current ENRA expires on July 22...
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