INFORMATIONAL REPORT TO CITY COUNCIL
SUBJECT
Title
Update on project located at 500 Benton Street with Republic Metropolitan LLC [Council Pillar: Promote and Enhance Economic and Housing Development]
Report
BACKGROUND
On November 19, 2019, City Council approved the Second Amendment to the Exclusive Negotiations Agreement with Republic Metropolitan LLC (Developer) for the site located at 500 Benton Street [APN: 230-08-061]. While Council approved the Second Amendment which extended the term of the agreement to August 5, 2020, Council also directed staff to report back to Council within 120 days (March 18, 2020) with an update on the revised term sheet, along with updates on the proposed water well location and the preservation of the historic railroad buildings.
DISCUSSION
The following responds to Council's request for an update on the Term Sheet, water well and the historic railroad buildings.
Term Sheet
As per the Second Amendment to the Exclusive Negotiations Agreement, the Developer is required to submit a new term sheet ("Revised Term Sheet") to VTA and the City within 90 days after the execution of the Second Amendment. The Revised Term Sheet presents all economic terms of any proposed Lease Option Agreement (LOA) or Disposition and Development Agreement (DDA) between the parties.
On February 14, 2020, the City received the Developer's Revised Term Sheet. The ENA contemplates that all parties use their best efforts to negotiate and develop mutually acceptable terms and conditions of a DDA or LOA (the "Final Term Sheet"), within 120 days following the submittal of the Revised Term Sheet (i.e., June 13, 2020). City staff and Developer discussed the Developer's Revised Term Sheet on March 19.
The Final Term Sheet is intended to provide for the economic terms and conditions pursuant to which the Developer will have the right to lease the property and construct the project. These terms would be documented in a Disposition and Development Agreement (DDA...
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