REPORT TO COUNCIL
SUBJECT
Title
Authorize the Negotiation and Execution of a Third Amendment to the Exclusive Negotiations Agreement with Republic Metropolitan LLC for the site located at 500 Benton Street [APN: 230-08-078] [Council Pillar: Promote and Enhance Economic, Housing and Transportation Development]
Report
BACKGROUND
In February 2018, the City of Santa Clara, Santa Clara Valley Transportation Authority ("VTA"), and Republic Metropolitan LLC ("Developer") jointly entered into an Exclusive Negotiation Agreement ("ENA") for development of a student housing project at the Caltrain Santa Clara Station Park-N-Ride lot located at 500 Benton Street . The proposed development site consists of a larger parcel owned by the City (1.73 acres), and a smaller parcel owned by VTA (0.71 acres)("Property").
The Parties entered into the ENA to allow the Developer time to 1) prepare and process an application for entitlements together with corresponding CEQA environmental review documentation and 2) negotiate the terms of a Disposition and Development Agreement (the "DDA") pursuant to which a ground lease would be conveyed and the Developer would conduct specified development activities related to the Property.
The ENA provided for a negotiating period of twelve (12) months with an option for an extension of an additional six (6) months, subject to the discretion of the City Manager and the execution of an amendment. On February 8, 2019, an extension was granted for a period of six (6) months, through August 5, 2019.
On July 16, 2019, Council approved the Second Amendment to the Exclusive Negotiations Agreement with the Developer for the site located, which extended the negotiating period to August 5, 2020.
As per the Second Amendment to the ENA, the Developer was 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. A final form of Term Sheet would present all economic and tran...
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