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THE CITY OF 1 CITY COUNCIL AGENDA REPORT I pLEASANTONo September 2, 2014 City Manager TITLE: APPROVAL OF SECOND AMENDMENT TO IN-LIEU PARKING FEE AGREEMENT WITH NORMAN CORNETT FOR PROPERTY AT 600 MAIN STREET SUMMARY In 2005, the City and Peak Property, the owner of the property at 600 Main Street, Pleasanton, entered into an In-Lieu Parking Agreement to allow for the development of property improvements subject to Peak Property's agreement to pay in-lieu parking fees of $140,000 to offset the additional parking space demand that could not be accommodated on the property site. In 2009 the parties entered into a First Amendment to the In-Lieu Parking Fee Agreement, extending the repayment period and modifying the timing of the payments; and in March 2010, the City Manager further modified the timing of the payments. Given the challenging economic climate since 2006 and the difficulty in finding tenants to occupy all of the leasable space, Peak Property has not made payment to the City toward the agreement. Now that the property is fully leased and the economic climate is improving, the parties seek to further modify the terms of the agreement by entering into a Second Amendment. Staff recommends the City credit Peak Property $39,000 for the expense Peak Property incurred in engaging consultant Wayne Rasmussen to manage the project throughout the development services process, and that the City credit Peak Property $28,500 for providing an economic benefit to the community by restoring the historic "Kolln Hardware" building. The net fee of $72,500 would be due and payable over five years, ending 2019, with no interest as included in the amendment. The credits of $67,500 would be funded by transfers from the responsible funds, including the City's General Fund, to the Downtown Parking Fund. RECOMMENDATION Authorize the City Manager to sign the Second Amendment to the In-Lieu Parking Fee Agreement with Peak Property as the owner of 600 Main Street in the amount of $72,500, and authorize the transfer of $67,500 in funds as the City's contribution to the Downtown Parking Fund for this project. FINANCIAL STATEMENT The Second Amendment will result in the Downtown Parking Fund receiving the full $140,000 in in-lieu parking fees from the project. The City's portion of the funding ($67,500) will come from the General Fund contingency ($57,500) and from credits from DSRSD for sewer connection fees ($10,000).