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<br />Honorable Mayor and Members of the City Council: <br /> <br />BACKGROUND <br /> <br />On October 1 1,2005, the City Council and Planning Commission conducted a joint workshop at <br />which the potential development of the Staples Ranch, 124 vacant acres owned by Surplus <br />Property Authority of Alameda County (hereafter County), was discussed at length. Part of that <br />discussion focused on a proposed Memorandum of Understanding (MOU) between the City and <br />the County that would outline the development entitlement process, schedule and <br />responsibilities. Following the workshop, Council convened a special meeting at which it <br />directed staff to prepare the proposed MOU and return the matter to Council for consideration. <br />The attached MOU has been prepared for Council's consideration. <br /> <br />DISCUSSION <br /> <br />The County currently contemplates that the Staples Ranch would be developed with an auto <br />mall site (36 acres), a senior continuing care facility ( 45 acres), a community park (17 acres) and <br />17 acres of other commercial uses. Portions of Stoneridge Drive would be constructed on the <br />property but would not be connected except by an emergency vehicle access easement. As the <br />project is proposed, the City's General Plan would not need to be amended but the Stoneridge <br />Drive Specific Plan, approved in 1989, would need to be amended as to land use, circulation and <br />financing. In order to annex the property to the City, the property would also need to be <br />prezoned. The County may also choose to pursue other development related entitlements such <br />as a development agreement, PUD development plan, subdivision map, etc. <br /> <br />Fundamentally, the MOU does three things: Requires the City to specify to the auto mall site <br />developer what the City's development fees will be; identifies the process that the City will <br />follow to process the County's applications; and identifies the changes to the Specific Plan that <br />the County intends to seek. <br /> <br />A. Develooment Fees. <br /> <br />Not surprisingly, the price that the purchaser of the auto mall site (the Hendrick Automotive <br />Group) is willing to pay the County for a portion of the Staples Ranch site is related to the <br />amount of development fees that the City will impose on development of that site. The MOU <br />requires the City to inform Hendrick of what those fees will be. Hendrick, in turn, will inform <br />the County whether it is or is not prepared to pay those fees. If Hendrick is, then the County <br />will enter into a sales agreement with Hendrick. (Presumably, if Hendrick states that it is not <br />prepared to pay the City's specified development fees, then the sale to Hendrick by the County <br />does not come to fruition.) Because City staff has had extensive discussions with Hendrick <br />SR:06:100 <br />Page 2 <br />