Title
Report regarding a resolution authorizing the City Manager to execute a Third Amendment to the Purchase and Sale Agreement with Ensemble Investments, LLC for the disposition of the City-owned property located at 367 Marina Boulevard (APN 015-011-350) for a hotel development. (Nell Selander, Economic and Community Development Director).
Recommendation
Staff recommends City Council approve a resolution authorizing the City Manager to execute a Third Amendment to the Purchase and Sale Agreement with Ensemble Investments, LLC for the disposition of the City-owned property located at 367 Marina Boulevard (APN 015-011-350) for a hotel development.
Body
BACKGROUND
The eastern peninsula of Oyster Point was formerly operated as a municipal landfill ("landfill") from 1956 until it stopped accepting waste in 1970. It was closed in the 1970s and 1980s in accordance with the State of California Water Quality Control Board ("Water Board") regulatory guidelines that governed at that time. The majority of the Oyster Point development area is located over the former landfill and includes multiple office and research & development buildings. The development of Oyster Point covers 41 acres in four phases, as agreed upon in the Disposition and Development Agreement ("DDA") that was executed between Oyster Point Ventures and the City/Redevelopment Agency on March 23, 2011.
The DDA and subsequently approved Oyster Point Specific Plan ("Specific Plan") identified a 4.7-acre, City-owned parcel as an opportunity site for the development of a full-service hotel development. The Specific Plan provided California Environmental Quality Act ("CEQA") clearance for up to 350 rooms on the site. The DDA was assigned to Kilroy Realty ("Kilroy") in 2017. In accordance with the DDA, Phase I included a clay cap repair of the landfill, relocation of refuse, and grading of the site in preparation for development. This work is completed.
In February 2017, staff began an extensive hotel de...
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