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File Number: 22-450 While the original proposal included retail space on the ground floor, Beam proposes an all-residential multifamily development based on the current market analysis and what is economically feasible for the project. The PSA is covered by an exemption in the revisions to the Surplus Land Act, which allows PSAs entered before the 2019 revisions to the Act to remain in place without first going through the notice and negotiations requirements now mandated by the Surplus Land Act for new sales of public lands. This exemption to the Surplus Lands Act applies only if the close of escrow for the sale to occur after December 31, 2022. However under the PSA, Beam is not required to close unless, among other things, they have previously received all necessary governmental entitlements, which is not anticipated to occur until 2023. Despite the uncertain economic and market conditions, Beam has continued to work with diligence and in good faith to pursue redevelopment of the Property by expending substantial amounts of time and money to: ·purchase the adjacent properties; ·retain technical consultants to prepare various geotechnical and environmental site assessments as well as conduct civil engineering work; ·retain legal counsel to provide guidance on the land use entitlement, CEQA, and transaction-related elements to facilitate the entitlement process and the closing; ·retain architects, other design professionals and a project management team to prepare and refine the development proposal and prepare the necessary development applications. City staff has also worked with diligence and in good faith to support Beam’s efforts to complete site evaluation, purchase of adjacent properties, and prepare development applications and environmental review. Despite these collective efforts, staff and Beam recognize that obtaining the necessary entitlements cannot reasonably be expected to occur before December 31, 2022. Fifth Amendment to the Purchase and Sale Agreement In order to facilitate the successful sale and development of the Town Hall Square site, several changes are proposed to the Purchase and Sale Agreement. The Due Diligence Contingency Period is proposed to be extended to November 30, 2022 in order to allow for Beam to complete their development analysis and submit their entitlements applications. The outside date by which the Close of Escrow (sale) is to occur would be established at December 31, 2022. Beam is willing to consider waiving its condition in the PSA which provides that they are not required to purchase the property without entitlements approval (Entitlements Condition) in return for adding a requirement that the City and Successor Agency accept a return of the properties after the sale if certain conditions are not met (Put Option). Under the Put Option, if the developer does not receive entitlements, appeal is brought or litigation is file against the project prior to September 30, 2023, Beam may reconvey the property back to the City and Successor Agency. Page 4 City of San Leandro Printed on 7/13/2022