Reso 2022-187 Nimitz PSA Amend 4

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IN THE CITY COUNCIL OF THE CITY OF SAN LEANDRO RESOLUTION NO. 2022-187 RESOLUTION OF THE CITY OF SAN LEANDRO CITY COUNCIL AUTHORIZING THE CITY MANAGER TO APPROVE AND EXECUTE AMENDMENT NO. 4 TO THE PURCHASE AND SALE AGREEMENT (PSA) FOR THE NIMITZ MOTEL LOCATED AT 555 LEWELLING BOULEVARD (APN: 412-1-4-1) WHEREAS, the City of San Leandro ("City") desires to acquire and rehabilitate improved real property in the City in order to convert that property to permanent or interim housing for homeless persons within the City; and WHEREAS, Parshotam Inc. ("Owner") is the owner of that certain real property located at 555 Lewelling Boulevard, San Leandro, California ("Property"), which is currently improved with a building that is used for the operation of the Nimitz Motel, and also includes a small restaurant and a billboard; and WHEREAS, the City desires to acquire the Property, including the furniture, fixtures and equipment located therein, for conversion to a navigation center and temporary shelter for homeless persons within the City, and future conversion to permanent affordable supportive housing for homeless persons, pursuant to plans and specifications that are to be determined; and WHEREAS, City staff and the Owner negotiated the terms and conditions of a Standard Offer, Agreement and Escrow Instructions for Purchase of Real Estate ("Purchase and Sale Agreement"), under which the City would agree to acquire the Property from the Owner for the purchase price of Six Million One Hundred Fifty Thousand Dollars ($6, 150,000); and WHEREAS, the staff recommended purchase price of the Property under the Purchase Agreement is slightly higher than the appraised value of the Property, as determined by an appraisal of the Property conducted by CohnReznick, LLP, dated November 24, 2021; and WHEREAS, the City Manager and Owner executed Amendment No.I to extend the Agreement through August 29, 2022 and the City deposited an additional $25,000 from its Affordable Housing Trust Fund to escrow; and WHEREAS, the City Manager and Owner executed Amendment No.2 to extend the Agreement through September 28, 2022 and the City deposited an additional $50,000 from its Affordable Housing Trust Fund to escrow; and WHEREAS, the City Manager and Owner executed Amendment No.3 (which was the final extension allowed under the Purchase and Sale Agreement approved by City Council on March 21, 2022) to extend said Agreement through October 28, 2022 and the City's $75,000 deposits for the prior amendments became non-refundable; and