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File #: 20-347    Version: 1 Name:
Type: Consent Calendar Status: Agenda Ready
File created: 3/4/2020 In control: Council and Authorities Concurrent Meeting
On agenda: 5/26/2020 Final action: 5/26/2020
Title: Action on Consent to Assignment and Assumption of Reimbursement Agreement for the Patrick Henry Specific Plan Project [Council Pillar: Promote and Enhance Economic, Housing and Transportation Development]
Attachments: 1. Assignment and Assumption Agreement, 2. Original Patrick Henry Reimbursement Agreement, 3. Agenda Report

REPORT TO COUNCIL

SUBJECT

Title

Action on Consent to Assignment and Assumption of Reimbursement Agreement for the Patrick Henry Specific Plan Project [Council Pillar: Promote and Enhance Economic, Housing and Transportation Development]

Report

 

BACKGROUND

Following prior City Council direction, the City is preparing a Specific Plan for the Patrick Henry Plan Area using planning consultant Moore Iacofano Goltsman, Inc. (MIG). As provided for in the City’s General Plan, the consultant agreement for the Specific Plan is fully funded by a Reimbursement Agreement entered into by the City with a group of ten developers with real estate interests within the Specific Plan area.

 

DISCUSSION

The Sobrato Organization, LLC, (Sobrato) is one of the ten parties to the existing Reimbursement Agreement (Agreement).  Sobrato recently sold its property interest within the Specific Plan area to the entity “4590 Patrick Henry LLC”, an affiliate of Walnut Hill Acquisitions.

 

Pursuant to Article VI.B of the Reimbursement Agreement, assignment of the agreement from one party to another is subject to City approval.  The Sobrato Organization, LLC, and 4590 Patrick Henry LLC have mutually agreed to the terms of the attached Assignment and Assumption of Reimbursement Agreement and have requested the City’s consent to said agreement.  The City‘s current procedures require the City Council to approve such an assignment.

 

ENVIRONMENTAL REVIEW

The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(a) as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.

 

FISCAL IMPACT

There is no fiscal impact associated with this consent to assignment agreement.  The financial obligations of the original reimbursement agreement will be transferred to the new ownership party, 4590 Patrick Henry LLC.

 

COORDINATION

This report has been coordinated with the City Attorney’s Office.

 

PUBLIC CONTACT

Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov .

 

RECOMMENDATION

Recommendation

1. Authorize the City Manager to issue consent to the Assignment and Assumption of Reimbursement Agreement between the Sobrato Organization, LLC and 4590 Patrick Henry LLC; and

2. Authorize the City Manager to execute all future consent to assignment agreements for approved reimbursement agreements.

 

Staff

Reviewed by: Andrew Crabtree, Director of Community Development

Approved by: Deanna J. Santana, City Manager

 

ATTACHMENTS

1. Assignment and Assumption Agreement

2. Original Patrick Henry Reimbursement Agreement