REPORT TO COUNCIL
SUBJECT
Title
Authorize the City Manager to Execute an Agreement for Professional Real Estate Broker Services Related to the Sale of Onizuka Parcels at 1050 & 1060 Innovation Way (F17-099) and Approve Budget Modification No. 43
Report
BACKGROUND
On February 7, 2017 (RTC No. 16-0664), City Council took the following actions regarding the Onizuka Site:
* Directed staff to proceed with a Request for Proposal for real estate broker services for the sale of the property on the open market (this report)
* Directed staff to proceed with the drafting of an amendment to the Moffett Park Specific Plan for City Council consideration at a future date to allow higher floor area ratio in connection with redevelopment of the Onizuka Parcels as described in the report (Council approved an agreement with Kimley Horn on April 25, 2017)
* Approved Budget Modification No 28 to Appropriate $20,000 for updated appraisals and a Phase I Environmental Assessment (underway)
EXISTING POLICY
Council Policy 1.2.7 Acquisition, Leasing and Disposition of City-Owned Real Property Section 3: Disposing of surplus property shall be done in a manner to maximize the benefit to the community and should be done whenever real estate market conditions are favorable to the City.
Section 3.D: The City may use any of the following methods or combination thereof to maximize the benefit to the community. Methods of disposition should be determined on a case-by-case basis and may include:
* Auction
* Negotiated Sale
* Exchange
* Lease
* Request for Proposal
Discounts will not be negotiated unless an extraordinary need or circumstance is recognized by the City Council prior to negotiation, setting forth the amount of the discount and the justification for it. The purpose of this requirement is to demonstrate to the community that the City is not making a gift of public assets.
Section 3.E: Costs associated with the disposition of property shall come from proceeds of the sale or char...
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