REPORT TO COUNCIL
SUBJECT
Title
Consider Approval of Disposition and Development Agreement Between the City of Sunnyvale and Related Companies of California, LLC, Providing for Financial Assistance in The Amount of $12.5 Million in Housing Mitigation and Low and Moderate Income Housing Asset Funds (LMIHAF) To Construct an Affordable Housing Development on Iowa Avenue Between Mathilda Avenue and Charles Street (Block 15)
Report
BACKGROUND
The City owns approximately 1.44 acres of land located at 365-388 Charles Street (APN# 165-130-74), 396 Charles Street (APN# 165-130-46), 397 South Mathilda Avenue (APN# 165-130-68), 402 Charles Street (APN# 165-130-45), 406-407 Charles Street (APN# 165-130-73), and 403 South Mathilda Avenue (APN# 165-130-69) in the City of Sunnyvale. Currently there are six modest, older dwelling units on the project site, of which four are vacant and two are occupied. The land was appraised at approximately $9.4 million in October 2017, based on its value if developed consistent with the Downtown Specific Plan standards. In December 2015 Council provided policy direction and declared its intent to use this property for an affordable housing development.
On March, 12, 2018, the City entered into an Exclusive Negotiating Agreement (ENA) with The Related Companies of California, LLC (Related) to negotiate the terms of a possible Disposition and Development Agreement (DDA), a long-term ground lease, and an affordable housing agreement for the development of the affordable housing community on City owned property (RTC No. 17-0082, February 28, 2017).
The ENA allowed both parties to exclusively negotiate the details for the affordable housing development and long-term lease of the property from the City. During the ENA term, Related created a project website, completed due diligence activities, and conducted three community outreach meetings for the proposed development. However, due to financial uncertainties, the City and Related could not fin...
Click here for full text