REPORT TO COUNCIL AND SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF SANTA CLARA
SUBJECT
Title
Action on Resolutions Approving a Purchase and Sale Agreement and Other Documents as Necessary Related to the Sale of the Great America Theme Park Parcels located at 1 Great America Parkway [APNs: 104-42-014 and 104-42-019]
Report
BACKGROUND
California Redevelopment Dissolution Laws require the Successor Agency to sell all of its assets pursuant to a Department of Finance approved Long Range Property Management Plan (LRPMP). The Successor Agency has sold several parcels as required by law including: Santa Clara Gateway Parcel #2, Santa Clara Hilton, and the North South parcel. Proceeds from the sale of assets were first used to retire Successor Agency debt, and once all debt was retired, land sale proceeds are now being distributed to taxing agencies.
The Successor Agency owns approximately 112 acres of land located at 1 Great America Parkway (Property) [APNs: 104-42-014 and 104-42-019]. The Property is encumbered by a long term ground lease with Cedar Fair Southwest (Tenant) and currently being utilized as the Great America Theme Park (Park) and a portion of the surface parking for the Park.
The Ground Lease was first executed by the Redevelopment Agency in 1989 and has been amended four times since. Shortly following the announcement of dissolution of redevelopment, the former Redevelopment Agency transferred ownership of the Property to the City. The most recent amendment, the 4th Amendment to the Ground Lease, was executed by the City with an effective date of January 2012, just prior to the dissolution of redevelopment agencies on February 1, 2012. Following litigation with the County of Santa Clara, Santa Clara Unified School District and other taxing entities, the City transferred ownership of the Property back to the Successor Agency.
The existing Ground Lease provides for several terms of note:
* The remaining term of the le...
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