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Report regarding a resolution approving the third amendment to the Purchase and Sale Agreement for the property located at 432 Baden Avenue. (Julie Barnard, Economic Development Coordinator)
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RECOMMENDATION
Recommendation
Staff recommends that Council adopt a resolution approving the third amendment to the Purchase and Sale Agreement, which includes:
1. Changing the developer from Baden Developments LLC to For the Future Housing,
2. Modifying the project scope from market rate housing to a fully-affordable housing, and
3. Reducing the purchase price from $1,100,000 to $1.
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BACKGROUND
In 1997, the former Redevelopment Agency to the City of South San Francisco ("Redevelopment Agency") purchased 432 Baden Avenue ("the Property") for $270,000 for the development of a public parking lot to serve the 400 block of Grand Avenue. Previously, this section of the downtown had no public parking facilities, resulting in parking problems for the area. The Agency demolished the residential building that existed on the site and developed a 16-space surface parking lot.
The City of South San Francisco ("City") is responsible for the disposition of the former Redevelopment Agency properties in accordance with the procedures and requirements of the approved Long Range Property Management Plan ("LRPMP"). Under the LRPMP, the Property is required to be sold through a sale using a negotiated purchase and sale agreement. The City is required to select a buyer that proposes the highest net value to the taxing agencies through a combination of sale proceeds and future tax revenues. Reducing the price of the Property from $1.1 million to $0 will require an action by the San Mateo County Countywide Oversight Board ("Oversight Board") to accept this lower sales price.
In September 2018, Baden Development, LLC (then Sierra Investment Group) ("Developer") purchased 428 Baden Avenue, for development of a small multi-family housing project. During the entitlement proc...
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