REPORT TO COUNCIL
SUBJECT
Title
Action on Second Amendment to the Exclusive Negotiations Agreement with Republic Metropolitan LLC for the site located at 500 Benton Street [APN: 230-08-078]
Report
BACKGROUND
This item was initially scheduled for City Council action at the November 12, 2019 Council and Authorities Concurrent Meeting. The City Council continued the item at the Developer's request in order to change the project description in the ENA from co-living component to workforce/student apartment component.
On July 16, 2019, Council approved the Second Amendment to the Exclusive Negotiations Agreement with Republic Metropolitan LLC ("Developer") for the site located at 500 Benton Street [APN: 230-08-078 and -061]. The ENA is a three -party agreement with the Developer, City, and by the Santa Clara Valley Transportation Authority ("VTA"). The City owns 1.73 acres of the development site and VTA owns 0.7 acres of the development site.
The Second Amendment as presented by staff extended the term of the Exclusive Negotiations Agreement (ENA). The action authorized the City Manager to execute the ENA pending approval by VTA.
On August 1, 2019, the VTA Board approved the ENA extension; however, the Board's approval also requested that staff incorporate milestones to the extension to ensure that the Developer demonstrates progress on two key issues: a term sheet within 90 days and progress towards either a ground lease option or development agreement within 180 days.
DISCUSSION
The requested VTA Board modifications were sufficiently significant to require additional Council consideration on the revised/updated Second Amendment to the Exclusive Negotiations Agreement. The Second Amendment includes the following changes:
* Negotiating Period. The negotiating period under this Agreement shall terminate at 11:59 p.m. on August 5, 2020.
* Negotiation Deposit: The Developer must pay an additional Twenty-Five Thousand Dollars ($25,000) to pay for legal e...
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