REPORT TO COUNCIL AND SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF SANTA CLARA
SUBJECT
Title
Action on Resolution Approving a Purchase and Sale Agreement and Other Documents and Actions Necessary to Implement the Sale of the Hyatt Building Parcel Located at 5101 Great America Parkway [APN: 104-55-012] to XHR Acquisitions LLC at a Sales Price of $25 million
Report
BACKGROUND
California Redevelopment Dissolution Laws require all successor agencies to sell all of their assets pursuant to a Department of Finance approved Long Range Property Management Plan (LRPMP). The Successor Agency to the Former Redevelopment Agency of the City of Santa Clara (Successor Agency) has sold several parcels as required by law including: Santa Clara Gateway Parcel #2, Santa Clara Hilton, the North South parcel, and Great America Theme Park. Proceeds from the sale of these assets were first used to retire Successor Agency debt. Now that all Successor Agency debt has been retired, all land sale proceeds are being distributed to taxing agencies upon closing.
As provided in Health and Safety Code Section 34179(j), on July 1, 2016, oversight of Successor Agency activities was transferred to the Countywide Oversight Board (Oversight Board). The Oversight Board appointed two of its members (Glen Williams, County of Santa Clara and Ngoc Chim, West Valley-Mission Community College District) as a subcommittee to work with the Successor Agency to complete the sale of all its properties.
The Successor Agency owns approximately 1.75 acres of land located at 5101 Great America Parkway [APN: 104-55-012] (Property). The Property is encumbered by a long-term ground lease with I.A. Lodging Santa Clara LLC (Tenant) and is currently being operated as the Hyatt Hotel. The Successor Agency owns the land and the Tenant owns the building improvements.
The Ground Lease was first executed by the Redevelopment Agency in 1985.
The existing Ground Lease provides for several t...
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