REPORT TO COUNCIL
SUBJECT
Title
Town Center Status Update and Proposed Schedule of Key Milestones (Information Only)
Report
BACKGROUND
In December 2015, the Successor Agency to the former Sunnyvale Redevelopment Agency, whose Board is comprised of the City Councilmembers, acknowledged the financial capability and professional experience of the proposed development team to acquire, finance and complete the Town Center project. Wells Fargo Bank has entered into a purchase agreement with the selected development team: a joint venture consisting of J.P. Morgan Asset Management, Hunter Properties, Inc., and Sares Regis of Northern California. Sale of the two office buildings on Mathilda Avenue (Buildings A and C occupied by Nokia and Apple) closed in December 2015 with J.P. Morgan Asset Management as the sole owner. The recently formed joint venture, STC Venture, LLC, (Developer) is currently in its due diligence period for acquisition of the remainder of the Town Center property.
DISCUSSION
Considerable progress has been made with the Developer to address a number of items involving multiple project documents. Staff has met almost weekly since January 2016 with representatives of J.P. Morgan, Hunter Properties and Sares Regis to facilitate the timely resolution of issues. The two most critical actions are summarized below:
* Update 2010 Amended Disposition and Development and Owner Participation Agreement (ADDOPA) - A modified and restated ADDOPA between the Successor Agency and STC Venture, LLC has been drafted and is under review. Subject to appropriate approvals, the proposal is to extend the ADDOPA to December 31, 2020 for completion of the Minimum Project. A number of modifications and updates to the ADDOPA have been discussed with primary revisions covering of the following items:
(1) Scope of the Minimum Project, including the construction schedule and intermediate milestone dates for completion of project elements;
(2) Conditions that will...
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