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File Number: 16-047 <br />level retail without a mixed use component, and one was inconsistent with the zoning for the <br />site. <br />Of the remaining offers, all four were competitive and came from experienced, reputable <br />developers. All four of the finalists had plans to construct approximately 90 units of rental <br />housing above ground floor retail, which is consistent with the zoning. City staff, a <br />representative from CVS, and the listing agent held interviews with all four finalists to gain <br />more information about their visions for the site and their development expertise. All four <br />demonstrated the qualifications to complete a high quality project. After a careful review of the <br />offers, interviews, and direction from the City Council, Sansome Pacific was selected to move <br />forward in the process. Sansome Pacific was selected for the following reasons: <br />·A strong track record in both retail and residential properties, including numerous <br />successful projects in the Bay Area; <br />·A retail component that was more ambitious than the others offers: Sansome Pacific is <br />considering building as much as 20,000 square feet of retail on the ground level, <br />whereas some other offers had as little as 4,000 square feet; <br />·A history of working successfully with numerous retailers that are desired by the San <br />Leandro community; <br />·A partnership with a highly-regarded architect and a commitment to top-quality design <br />and construction; <br />·A design plan that includes an exploration of acquiring the adjacent PFSA property but <br />would still be successful with just the City and CVS properties. <br />Sansome Pacific also offered the highest price for the properties although all four finalists <br />were very close in this regard and price was not the determining factor in the decision. <br />After the review of offers, the City Council directed staff to negotiate a Purchase and Sale <br />Agreement with Sansome Pacific to establish terms of a sale and begin moving the project <br />forward. <br />Terms of the Purchase and Sale Agreement <br />The proposed Purchase and Sale Agreement with Sansome Pacific is a relatively <br />straightforward document. Unlike more complex Development Agreements that have been <br />used for other projects in Downtown San Leandro, this document deals primarily with the <br />timing and mechanics of the sale. This is largely because the current zoning for the site is <br />sufficient to ensure a development project that is consistent with the community’s goals and <br />vision for the site. As with any developer, Sansome Pacific will have the option to pursue <br />zoning and/or General Plan changes, but the current project concepts are permitted under the <br />zoning code. <br />Key points from the proposed Purchase and Sale Agreement are as follows: <br />·A purchase price of $1,290,000 for the City parking lot; <br />·An acknowledgement that Sansome Pacific will execute a parallel agreement for the <br />purchase of the CVS property; <br />·An initial deposit of $50,000 to be deposited into escrow within three days of executing <br />Page 4 City of San Leandro Printed on 2/10/2016