8N Consent 2008 0902 - Laserfiche WebLink

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Purchase and Sale Agreement -Page 2 of 3 August 20, 2008 The Agency agrees to build the Chamber a 2,000 square foot Class B office condominium on the ground level of Estudillo Avenue in the Callan Parking Garage Replacement Project. The Agency, as owner of the Callan Parking Garage (Garage), will charge no condominium association fees. Three parking spaces in the garage will be made available to the Chamber at no charge. The design details fora "turnkey" office space will be presented to the Chamber for approval. The office building will have separate utilities, such as water, electricity, gas, telephone and sewer. The Chamber will be responsible for user fees and the maintenance and repair of all utilities. • The Chamber agrees to Agency plans to demolish the office building on the Property for temporary parking. The Agency will pay any and all costs associated with demolition. • The Chamber knowingly elects to, after having the opportunity to seek legal advice, receive and shall be paid $10,000 in lieu of making any and all relocation claims and receiving payment for any and all such benefits to which the Chamber maybe entitled. • Upon issuance of an occupancy permit, a concurrent escrow closing will occur to exchange the Property for the Agency office condominium in the Garage. The Agency shall pay the Chamber an additional $10,000 to cover costs associated with the relocation and re-establishment of their offices to the Garage. • The Agreement shall be for a term of three years, with a two (2) year option to extend should the City not complete the garage plans within three years. If for an unforeseen reason the Agency does not build the Garage, Agency will pay $700,000 in exchange for the deed to Property. The Property, identified on the attached map titled Town Hall Square as RDA Acquisition Site, is the third site the Agency has acquired to date in furtherance of the Town Hall Square development project. The Agency acquired 250 - 258 Davis Street (Washington Mutual Bank) and 290 Davis Street (Mustang Bar) in 2004. Land-banking the sites in voluntary transactions preserves the flexibility of the Agency's options for future development. Acquisition of the Property at this time is recommended as the Agency owned parcels on this block will provide needed parking during the demolition and reconstruction of the Garage. If the Lease, Purchase and Sale Agreement is authorized, the Agency plans to demolish the building on the Property in 2009. Current City Council Policy -The Transit Oriented Development Strategy adopted by Council in September 2007 identified development of Town Hall Square into a mixed use development as a priority. Previous City Council Actions - The Agency reviewed this item in closed session on July 14, 2008 and July 28, 2008, and no action was reported out of the closed session. City Council Committee Review and Action -Not Applicable