REPORT TO COUNCIL
SUBJECT
Title
Consider request from Related California to allow an amendment to the Block 15 Disposition and Development Agreement to allow shared access to the work product with Google, allow the Department of Developmental Services to record a Deed of Trust and Regulatory Agreements on the City owned Block 15 properties to secure a $1 million loan and Consider the award of an additional $1 million in Housing Mitigation Funds to Related California as an alternative to offset lost funding
Report
BACKGROUND
The City owns approximately 1.44 acres of land located at 365-388 Charles Street (APN No. 165-130-74), 396 Charles Street (APN No. 165-130-46), 397 South Mathilda Avenue (APN No. 165-130-68), 402 Charles Street (APN No. 165-130-45), 406-407 Charles Street (APN No. 165-130-73), and 403 South Mathilda Avenue (APN No. 165-130-69) in the City of Sunnyvale. In December 2015 Council provided policy direction and declared its intent to use this property for an affordable housing development.
After a formal Request for Qualifications (RFQ) and Request for Proposals (RFP) process, 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 a 90 unit affordable housing community on City owned property (RTC No. 17-0082, February 28, 2017). The ENA was fully executed on March 14, 2017.
On November 13, 2018 (RTC No. 18-0550), the City Council approved the final DDA and awarded a $12.5 million loan from the Housing Mitigation Fund (HMF) and Low and Moderate Income Housing Asset Fund (former redevelopment financing). The DDA was fully executed on January 3, 2019. Related has partnered with Housing Choices to provide 25% of the total 90 units for adults with intellectual and developmental disabilities (I/DD). The development has ...
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