REPORT TO COUNCIL
SUBJECT
Title
Public Hearing: Action on Amendment No. 1 to Development Agreement with Innovation Commons Owner LLC (Previously Yahoo!) [Council Pillars: Promote and Enhance Economic and Housing Development and Sustainability]
Report
BACKGROUND
In 2010, the City Council approved a Planned Development (PD) rezoning of the subject property on Democracy Way from Light Industrial (ML) to Planned Development to allow Yahoo!, Inc. ("Yahoo!") to construct up to 3.06 million square feet of office/R&D development. The project included a Development Agreement (DA) between the City and Yahoo! to secure the development rights over a 10-year term with the vested right to develop in accordance with the permitted uses and intensity of development set forth in the approved PD. The DA includes various performance deadlines for construction activity and is scheduled to expire in June 2020 if construction has not commenced at that time. The current property owner, Innovation Commons Owner LLC, is requesting a three-year extension of each of the performance deadlines included in the DA.
In June 2016, Yahoo! transferred all of its development rights and obligations to LeEco Real Estate Group ("LeEco"). LeEco was later acquired by the current property owner, Innovation Commons Owner LLC, which is an affiliate of Kylli, Inc. ("Kylli") and all of the development responsibilities and obligations of the DA transferred to the current owner. Kylli filed a new application in 2017 for land use entitlements that would supersede the current PD Zoning by rezoning the property to allow up to 6,000 residential units, 3.65 million square feet of office, 400,000 square feet of retail/community amenities, 300,000 square feet of hotel facilities and 70,000 square feet of educational facilities. Kylli has indicated that they are requesting the three-year extension in order to maintain the existing development rights for 3.06 million square feet of office/R&D pending the City's c...
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