REPORT TO COUNCIL
SUBJECT
Title
Various Actions on a Purchase and Sale Agreement and Other Documents as Necessary Related to the Sale of the North-South Parking Parcel located at 4911 Great America Parkway [APN: 104-43-051] (City Council and Successor Agency to the Redevelopment Agency of the City of Santa Clara)
Report
BACKGROUND
On May 22, 2018, the City Council authorized the City Manager to make an offer to purchase the Successor Agency-owned North South Parcel and further authorized the execution of a Purchase and Sale Agreement for the property.
The North South Parcel (Property) is a 9.4-acre parcel currently used as a portion of the surface parking for Great America Theme Park and Levi's Stadium. The Property is encumbered by a Lease, Parking Agreement and Parking Easement (Existing Agreements) with Cedar Fair, Forty Niners SC Stadium Company (StadCo), Santa Clara Stadium Authority, and the City of Santa Clara (collectively "Parking Parties"). The Existing Agreements provide that the Property be available for use by the Parking Parties for Stadium and Great America parking through the terms of the Stadium Lease and the Great America Theme Park Lease or 2074. Per the Existing Agreements, a nominal annual income (i.e., less than $30,000 per year escalated over time) is derived from the Existing Agreements for the benefit of the Property owner.
On May 29, 2018, the Oversight Board to the Successor Agency was presented with two offers to purchase the Property. Following discussion, the Oversight Board directed the Successor Agency to return to the Oversight Board with a recommendation on a last and final disposition process. On June 8, 2018, the Oversight Board adopted a Resolution approving a bidding process together with minimum bid terms for the Property. The process required each bidder to submit a sealed bid with an executed Purchase and Sale Agreement and a $500,000 deposit by June 21, 2018.
On June 21, 2018, the Council convened in closed sessio...
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