REPORT TO REDEVELOPMENT SUCCESSOR AGENCY
SUBJECT
Title
Discussion and Provide Direction on the 2016 Modified and Restated Amended Disposition and Development and Owner Participation Agreement for the Sunnyvale Town Center Project
Report
REPORT IN BRIEF
The Sunnyvale Town Center project is regulated by an owner participation agreement under the authority granted by California redevelopment law. The current owner participation agreement for the project is the 2010 Amended Disposition and Development Agreement (2010 ADDOPA) between the former Sunnyvale Redevelopment Agency and the former Court-Appointed Receiver representing Wells Fargo Bank. The current property owner, REDUS SVTC, LLC (Wells Fargo Bank) is proposing to transfer the property to STC Venture, LLC, a joint venture consisting of J. P. Morgan Asset Management Fund, Sares Regis Group of Northern California, and Hunter Properties, Inc. The transfer of the property is contingent on modifying the ADDOPA as well as amending the Special Development Permit (SDP), which is the City land use approval for the project. Amendments to the Final Conditions of Approval for the SDP were considered by the Planning Commission in two separate actions on May 23, 2016. One of the actions was appealed to the City Council by a member of the public. The Council heard the appeal on June 21, 2016, and denied the appeal and upheld the approval of the Planning Commission.
The draft 2016 Modified and Restated Amended Disposition and Development and Owner Participation Agreement (MRADDOPA) (Attachment 8) would supersede and replace the 2010 ADDOPA. The draft agreement is between STC Venture, LLC, (Developer) and the Successor Agency for the former Redevelopment Agency of the City of Sunnyvale (Successor Agency). Significant modifications to the 2010 ADDOPA include the following:
a) Extend the time for the Developer to complete the Minimum Project to December 31, 2020;
b) Eliminate the annual tax increment payments ...
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