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Cal Coast ENRA October 20, 2008 Exclusive Negotiating Rights Agreement with Cal Coast to be brought to the City Council in October 2008. Staff reviewed the draft ENRA with the Ad Hoc Committee prior to forwarding a draft to the Shoreline-Marina Committee in September. The draft ENRA includes the following provisions: • An 18 month term with the ability to extend for a maximum of 18 additional months. • A $50,000 initial deposit to cover the City's third party financial and legal consulting fees, with an additional $25,000 due upon extension of the agreement. • Developer studies, such as financial feasibility, soils, design, etc., shall be at Cal Coast's expense and copies shall be provided to the City within ten business days. • If required, City will select consultant for preparation of the Environmental Impact Report and Developer will pay City and consultant costs. • City and Cal Coast to work cooperatively on hydrology and other tidal action studies. • City to retain ownership of the site. • Requirements for community participation such as involvement in the Shoreline Development Citizens Advisory Committee, community and town hall meetings and general responsiveness to the public. • Requirement that the project be fiscally neutral with respect to the City's General Fund. • Developer and its contractors shall comply with Prevailing Wage Laws and the City of San Leandro Living Wage Ordinance. The Living Wage Ordinance also applies to sublessees. At the September 23, 2008 Shoreline-Marina Committee meeting, Building Trades Council representative Barry Luboviski presented the following language regarding labor peace and requested its inclusion in the ENRA as Section 19 (iii). 19. Execution of Defuutive Agreement (iii) To insure Labor Peace both during construction of the Marina and for the operation of a Hotel at the Marina and to thus protect the proprietary interests of the City of San Leandro, the Developer will meet with the Labor Unions and shall come to agreement on specific provisions to address those issues and insure Labor Peace. The Shoreline-Marina Committee recommended inclusion of the language in the ENRA and requested staff forward the proposed language to the City's legal counsel and Cal Coast for review. Legal counsel advised that it would be premature to include the specific requested language in the ENRA because the project scope has not yet been defined, the Developer and the City are still assessing the feasibility of the development and the various components of the project, and the ENRA is intended to be a preliminary document that governs negotiations between the City and Developer. If the Developer and the City reach agreement on the scope of the project, then more specific language relating to labor issues may be included in the ground lease and project documents. Cal Coast also expressed concerns with the language as they believe it is premature at this point not knowing specifically what the potential uses at the shoreline would be. Once uses are identified, Cal Coast is willing to discuss the specifics regarding union participation in the development. 2