REPORT TO COUNCIL
SUBJECT
Title
Approve an Extension of the Exclusive Negotiating Agreement and Short-Term Lease with MidPen Housing Corporation for 295 S. Mathilda Ave. and Provide Direction on Project Parameters
Report
REPORT IN BRIEF
Staff has prepared an extension to the Exclusive Negotiating Agreement (ENA) with MidPen Housing Corporation (MidPen) for the development of an affordable housing project at the City-owned property at 295 S. Mathilda Ave. for a period of six months, with one six-month option to extend. Staff is requesting Council direction on four project proposal alternatives that respond to concerns from Councilmembers and the community. Extension of the ENA and direction on project parameters will enable the City to complete negotiations for a Disposition and Development Agreement (DDA) and long-term Ground Lease with MidPen within six to 12 months.
BACKGROUND
On August 8, 2023, City Council approved the Assignment of Purchase and Sale Agreement and ENA with MidPen for 295 S. Mathilda Ave (RTC 23-0770). Pursuant to the Assignment and ENA, the City would purchase 295 S. Mathilda Ave. (the "Property") from the owner, Wells Fargo Bank, and enter into negotiations with MidPen for the development of an affordable housing project on the Property. The City and MidPen entered into the Assignment and ENA on August 30, 2023.
On September 15, 2023, City purchased the Property for $7,325,000 using City Housing Mitigation Funds (HMF) and entered into a Short-Term Lease with MidPen for the Property.
On August 13, 2024, City Council awarded $1.5 million in City HMF to MidPen for predevelopment work related to the development of affordable housing on the Property (RTC 24-0863). Approximately $730,000 in costs have been incurred for architectural drawings and environmental review; however, the City has not disbursed any funds to date.
In February 2025, MidPen requested an extension of the negotiating period to continue community engagement activities an...
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