REPORT TO COUNCIL
SUBJECT
Title
Consider an Extension of the Exclusive Negotiating Agreement (ENA) with The Related Companies of California, LLC for Development of Affordable Housing on City Property Located at 441-499 W. Iowa Avenue (APNs 165-130-74, 165-130-46, 165-130-68, 165-130-45, 165-130-73, and 165-130-69 - Also Known as Block 15)
Report
BACKGROUND
On March, 12, 2018, the City Council entered into an Exclusive Negotiating Agreement with The Related Companies of California, LLC (Related) for the development of the affordable housing project on a City owned site at Mathilda Avenue/Iowa Avenue and Charles Street-which is part of Block 15 of the Downtown Specific Plan area (RTC No. 17-0082). The ENA allowed both parties to negotiate the long-term lease of the property for a term of one year and which granted the City Manager the authority to extend the term for an additional six months. During the first year, Related created a project website, completed due diligence activities, and conducted three community outreach meetings for the proposed development.
Due to financial uncertainties, the City and Related could not finalize the negotiations within the one-year term of the ENA. Since both parties were interested in continuing the project, the City Manager used the authority in the ENA and extended the ENA term for an additional six-months to September 13, 2018. During this time, Related applied for Preliminary Review of the project conceptual plans, and the parties further discussed details of a Development and Disposition Agreement (DDA) and long-term ground lease agreement.
EXISTING POLICY
General Plan, Housing Element
Goal HE-1: Assist in the provision of adequate housing to meet the diverse needs of Sunnyvale's households of all income levels.
Goal HE-5: Promote equal housing opportunities for all residents, including Sunnyvale's special needs populations, so that residents can reside in the housing of their choice.
Downtown Specific Plan
Goals ...
Click here for full text