01 9-02-2008 - Laserfiche WebLink

Councilmember Sullivan said he thought the Sharks would pay for the entire park, including the Community Park, and Mr. Fialho said this has not been discussed to date, but they could make a pro rata contribution to the park just as Hendricks, CLC and Fremont Land are making their pro-rata contribution to the neighborhood park. There are five parties that would contribute to the neighborhood park, with the fifth being the City because it will operate the balance of the 17 acre site. However, the City could condition to build the neighborhood park on the City's behalf and they would be reimbursed from each of those developers so the park is developed the same time as the 17 acre site. Councilmember Cook-Kallio questioned acquisition versus development of the park, and Mr. Bocian said there is no acquisition cost for the 17-acre park. As part of the Staples Ranch development, the City is receiving that land at no cost. However, for the neighborhood park, the City is purchasing that park. As part of the purchase agreement with Alameda County and the developers, each of the developers and the City will make a contribution toward that park which includes both the acquisition of the property and development of the park. And, CLC has taken the lead to construct portions of the park. Councilmember Sullivan confirmed that the neighborhood park also serves as the detention basin. Mr. Bocian summarized his description of the core objectives discussing the PUD process, said the ice rink park will need a CUP related to hours of operation. He said the recommended actions are to approve the core objectives, amend them as necessary, and staff will use them to work with the Sharks to prepare a draft ground lease, staff will return in 90 days for approval of the draft. If the project moves forward, the Council will approve the final ground lease when the Council reviews and approves the PUD process. Staff believes it is appropriate to review the ground lease prior to looking at the PUD itself in order to fully understand deal points and benefits. If the Council wanted to return it all with the PUD, staff could also do this. Mr. Bocian gave an update on the Staples Ranch development, said the EIR is completed, staff is currently finalizing the amended Specific Plan and all related documents, CLC has submitted its PUD application, Fremont Land is making revisions to their plan, and Hendricks Automotive is finalizing its PUD. Mayor Hosterman confirmed the Council would receive the Hendricks PUD in approximately two weeks. Councilmember McGovern confirmed with Mr. Bocian that CLC submitted their PUD application for 653 units. She questioned whether the City was concerned about Hendricks possibly pulling out due to the market, and Mr. Bocian said this has not been relayed to the City. They are working with their dealerships, finalizing their plans and are getting ready to move forward. Councilmember McGovern referred to a 30 year lease with 2, 10-year extensions without any review of the lease and voiced concerns over the need for financial projections and assumptions. Mr. Bocian said staff expects to have some review process to ensure they are meeting the terms of the lease. Councilmember McGovern confirmed the review would be part of the ground lease. Councilmember Sullivan referred to typical ground leases of public/private partnerships, like Parkview Assisted Living, and asked if the City had required a financial pro forma. Also, given the fact that this is an investment of public resources, he questioned how the City knows it is getting a good deal for the public's money. Mr. Bocian said in all ground leases the lessee is required to submit annual financial statements to the City regarding operations, which is not a core objective, but this could be added to spread over throughout the 30 year period. City Council Minutes 4 September 2, 2008