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File Number: 13-201 <br />Leandro. The Chamber Property was identified as a priority because of its location in the <br />downtown area, adjacent to other Agency-owned property. The Property and the adjoining <br />parcels were the focus of a specific planning effort to redevelop the entire block and create <br />Town Hall Square. Preliminary design schematics were for a mixed use development (retail <br />on the ground floor and residential above) including the closure of Hays Street. <br />The Chamber was open to selling the Chamber Property, subject to specific criteria. The <br />main criterion for the Chamber was the ability to relocate to another downtown location <br />without significantly increasing costs. <br />The Agency’s and the Chamber’s negotiations culminated in a Lease with Option to Purchase <br />Agreement dated September 2, 2008. Following are the major deal points of that agreement: <br />·The Agency would lease, with an option to purchase, the Chamber Property for a <br />period of up to three (3) years at $2,900 per month. <br />·The Agency agreed to build the Chamber a 2,000 square foot Class B office <br />condominium on the ground level of 120 Estudillo Avenue in the new parking garage <br />that was to be built. The City, as owner of the garage, would charge no condominium <br />association fees. Three parking spaces in the garage would be made available to the <br />Chamber at no charge. The office space would have separate utilities, such as water, <br />electricity, gas, communications, and sewer. The Chamber would be responsible for <br />user fees and the maintenance and repair of all utilities. <br />·The Chamber agreed to allow the Agency to demolish the office building on the <br />Chamber Property for temporary parking. The Agency paid all costs associated with <br />the demolition. <br />·The Chamber elected to receive $10,000 in lieu of making any and all relocation claims <br />and receiving payment for any and all such benefits to which the Chamber may have <br />been entitled when it relocated its offices from 262 Davis Street. <br />·Upon issuance of an occupancy permit, a concurrent escrow closing would occur to <br />exchange the Chamber Property for the Agency office condominium in the garage. <br />The Agency agreed to pay the Chamber an additional $10,000 to cover costs <br />associated with the relocation and re-establishment of its offices at the garage. <br />·The 2008 agreement was for a term of three years, with a two (2) year option to extend <br />should the City not complete the garage within three years. <br />When the 2008 agreement was reached, it was envisioned that the Chamber of Commerce <br />would have an office condominium within the garage structure. As the garage was built, staff <br />determined that rather than a condominium, a Vertical Parcel Map splitting off the Chamber’s <br />office from the remainder of the parking structure with a reciprocal easement agreement <br />between the two parties to address utilities, parking, and access would be a less cumbersome <br />approach. No association would need to be formed nor assessments levied and funded. The <br />City’s property and the Chamber’s office space would be identified as separate lots on the <br />Parcel Map. The Chamber agreed to this approach. <br />Page 2 City of San Leandro Printed on 4/30/2013