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City of San Leandro <br />City Council <br />Meeting Date: September 5, 2023 <br />Agenda Number: 5.a. <br />Agenda Section: CONSENT CALENDAR <br />File Number: 23-393 <br />File Type: Staff Report <br />Adopt a Resolution to Approve and Authorize the City Manager to Execute an Asset Purchase and Sale <br />Agreement and Assignment of Lease in an Amount Not to Exceed $147,270 for the Super 5 Chinese <br />Restaurant Located in the Nimitz Motel at 555 Lewelling Boulevard <br />COUNCIL PRIORITY <br />·Housing and Homelessness <br />·Race and Equity Initiatives <br />SUMMARY <br />The City is in escrow to purchase the Nimitz Motel located at 555 Lewelling Blvd with the intent to <br />convert the motel into an interim navigation center/shelter for unhoused individuals and eventually <br />into a longer-term permanent supportive housing development. The Super 5 Chinese Kitchen <br />(aka Super 5 Kitchen, Inc.) is a restaurant that operates on the ground floor of the motel. Based <br />on mutual and voluntary negotiations over the past year with the owner of the Super 5 Chinese <br />Kitchen (“Restaurant”), the City proposes to purchase the leasehold interest of the Restaurant to <br />convert it into a dining/community room for the interim shelter/navigation center clientele. <br />RECOMMENDATIONS <br />Staff recommends that the City Council adopt the resolution that approves and authorizes the City <br />Manager to execute the Asset Purchase and Sale Agreement and Assignment of Lease for the <br />Super 5 Chinese Kitchen. <br />BACKGROUND <br />On March 21, 2022, the City Council approved the existing Purchase and Sale Agreement to <br />acquire the Nimitz Motel. The City recently re-submitted a grant application for State Project <br />Homekey Program funding in early June 2023 and is currently awaiting the State’s funding <br />decision. <br />The City contracted in early 2022 with AutoTemp, an experienced relocation firm, to ensure the <br />City complies with State and federal relocation requirements for eligible longer term motel <br />residents and the Restaurant. <br />Analysis <br />Per State and federal relocation regulations, the Restaurant is ineligible for relocation assistance. <br />Page 1 City of San Leandro Printed on 8/30/2023