REPORT TO COUNCIL/SUCCESSOR AGENCY
SUBJECT
Title
Direction on Article 6 of the 2010 Amended Disposition and Development and Owner Participation Agreement (ADDOPA) for Transfer of the Sunnyvale Town Center Property
Report
BACKGROUND
In August 2015, Wells Fargo Bank (REDUS SVTC, LLC), the current property owner of the Town Center property, solicited proposals for sale or transfer of the property (Attachment 1). The Town Center property consists of an approximately 20-acre area bounded by Mathilda, Washington, Sunnyvale and Iowa Avenues. The property excludes the public parking parcels that are owned by the City/Successor Agency and the parcels occupied by the Target and Macy's stores which are under separate ownership. On November 18, 2015, Wells Fargo Bank submitted a "Notice of Intent to Transfer" (Attachment 2) to sell the Town Center property to a to-be-formed joint venture comprised of affiliates of (a) Sares Regis Group of Northern California, (b) Hunter Properties, Inc., and (c) an institutional investor advised by J.P. Morgan Asset Management (hereinafter referred to as Transferee).
Under the 2010 Amended Disposition and Development and Owner Participation Agreement (ADDOPA), Article 6, the City Council acting as the Successor Agency to the Sunnyvale Redevelopment Agency (Agency), is able to review specified criteria related to the proposed Transferee's business qualifications (Attachment 3). Article 6 does not provide Agency authority to select or approve the proposed Transferee, but provides an opportunity for the Agency to assess the capabilities of the Transferee before the property transfer occurs. Certain exemptions to Agency review are stated in Article 6, including transfer of those portions of the project that have already been completed. While much of the Town Center project is pending completion, two existing office buildings (Buildings A and C) on Block 2 (see Attachment 4) have been completed and are currently occupied by Nokia an...
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