REPORT TO COUNCIL
SUBJECT
Title
Action on a Purchase and Sale Agreement With Dollinger-Lafayette Associates to Acquire the Improved Property Located at 2900-2930 Lafayette Street in Santa Clara for Use by Silicon Valley Power for a Purchase Price of $5.5 Million and Related Budget Amendment
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
On September 28, 2021, the City Council accepted Silicon Valley Power's (SVP) Three-Year System Growth Strategy Plan (RTC 21-871). The Three-Year System Growth Strategy Plan identifies proposed projects for both near-term and long-term capital improvement projects needed to support anticipated system growth and to replace end-of-life equipment to ensure system reliability. Two of the key projects are the reconstruction of the Kifer Receiving Station (KRS) and the construction of a Battery Energy Storage System (BESS). These two projects are being constructed/expanded on an SVP owned property adjacent to the Donald Von Raesfeld (DVR) power plant, shown on the Location Map and Adjacent Uses (Attachment #1).
SVP's infrastructure in the area is becoming constrained and staff, with CBRE as its representative, have been reviewing property opportunities adjacent to DVR for future flexibility and near-term needs. The property located at 2900-2930 Lafayette Street (Property) is adjacent to key SVP properties and infrastructure and the property owner is agreeable to negotiate a Purchase and Sale Agreement. A Letter of Interest (LOI) was executed by both parties on August 14, 2024.
DISCUSSION
The Property is a 43,999 square feet lot with a 15,375 square feet building and existing tenants. A full list of the tenants and lease expiration dates are included in Exhibit C of the Purchase and Sale Agreement (Agreement), Attachment #2. Some leases are month to month, while others terminate in the near future (the latest expiring on May 31, 2026). The City will enter into a proper...
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