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File Number: 22-450 <br />The PSA included a purchase price of $2.1 million and allowed for a due diligence period of up to <br />6 years. This long period was to allow for the developer to obtain adjacent properties on the <br />block, which would not be available for sale for some time, with the goal of having a cohesive <br />development area to achieve the best project possible. <br />In the years since entering into the PSA, Beam has continued to work to move the project forward <br />and has purchased two of the three additional properties on the block not covered by the PSA: <br />the Union Bank building at 1145 E. 14th St., and the parking lot to the rear. The third private <br />property where the Chevron station is located is not expected to be a part of the development. <br />Over the years, several amendments to the PSA were made, generally related to extending the <br />Due Diligence period to allow the developer additional time to perform site evaluation, <br />environmental and soils analysis, economic and market analysis, and negotiate purchase of <br />neighboring properties. Those amendments did not change the purchase price of the property or <br />any of the economic terms of the transaction. Over the past year, Beam worked to finalize the <br />scope of the project, evaluate the cost of mitigating for certain site conditions, and prepare <br />project plans for planning entitlements approval. <br />Beam is currently working with their development team, which includes Branagh Construction, <br />BDE Architecture, and Sandis Engineering to finalize their development proposal and plans, with <br />the goal of creating a well-designed and impactful multifamily building at the center of the <br />community. Their preliminary proposal includes: <br />¨Over 150 Multifamily Housing Units - 15% will be affordable per City Code <br />¨Indoor parking and bike storage spaces <br />¨Outdoor courtyards and tenant gathering and workspace <br />¨Street-level activation through architectural design and open tenant uses on the ground <br />floor <br />Analysis <br />In order to facilitate the successful sale and development of the Town Hall Square properties, <br />adjustments to the PSA are deemed necessary at this time. Since entering into the PSA in 2017, <br />the economic and regulatory feasibility of developing housing has become more challenging, <br />while the need for housing has increased. Additionally, a significant amendment to the Surplus <br />Lands Act (SB1486) was passed in 2019, which requires that the close of escrow under the PSA <br />occur by the end of 2022. <br />Over the years, Beam has continued to refine the development concept for the Property to take <br />into account the evolving circumstances including: <br />·changes related to the ever-escalating state and regional housing crisis and the <br />associated Statewide legislation removing barriers to housing development, <br />·changes in economic and related market conditions associated with rising construction <br />costs and inflation generally, <br />·uncertainty in market demand, and shifting retail demand related to the on-going effects of <br />the COVID-19 pandemic and other factors. <br />Page 3 City of San Leandro Printed on 7/13/2022