COUNTY OF SAN MATEO

Inter-Departmental Correspondence

County Manager’s Office

 

DATE:

June 10, 2010

BOARD MEETING DATE:

June 22, 2010

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

 

TO:

Honorable Board of Supervisors

FROM:

Steve Alms, Manager, Real Property Division

SUBJECT:

First Amendment to Option to Purchase and Purchase Agreement with the Redevelopment Agency of the City of East Palo Alto for improved surplus real property located at the southeast corner of University Avenue and Bay Road, East Palo Alto (COP 731)

 

RECOMMENDATION:

Adopt a resolution authorizing:

    1. The President of the Board to execute a First Amendment to the Option to Purchase and Purchase Agreement with the Redevelopment Agency of the City of East Palo Alto for County-owned improved surplus real property located at the southeast corner of University Avenue and Bay Road, East Palo Alto (APN 063-221-010), and extending the term through January 22, 2011; and

    2. The County Manager or his designee to execute notices, options and documents associated with the First Amendment and the Agreement including, but not limited to, extension or termination of the Agreement under the terms set forth therein.

 

BACKGROUND:

On July 22, 2008, the County and the Redevelopment Agency of the City of East Palo Alto entered into an Option to Purchase and Purchase Agreement (the “Agreement”), which provided the Redevelopment Agency with a one-year option to purchase improved surplus real property located at Bay Road and University Avenue in the City of East Palo Alto. The option and any acquisition of the property is subject to the existing lease with the United States Postal Service. The right to exercise the option is conditioned upon receipt of associated land use approvals from the City of East Palo of the proposed mixed-use project. The Redevelopment Agency has requested an extension of the Agreement to allow the developer to obtain the necessary approvals.

 

Pursuant to Section 2 of the Option and Purchase Agreement, the Agency and County extended the term of the Option for an additional year to July 22, 2010. In consideration for this extension, the Agency paid the County Sixty Six Thousand Dollars ($66,000), which amount is nonrefundable, but credited toward the purchase price for the Property if the Agency exercises its option. The Redevelopment Agency wishes to further extend the term of the Option for an additional six months, to January 22, 2011.

 

DISCUSSION:

Real Property Services has prepared the First Amendment to the Agreement negotiated with the Redevelopment Agency. The Amendment sets forth the terms and conditions which allow the option to be extended for an additional six month period upon payment of a non-refundable fee of $33,000, which amount will be applied to the purchase price if the transaction is consummated.

 

County Counsel has reviewed and approved the Amendment and Resolution as to form. The Director of the Department of Housing concurs in this recommendation.

 

Approval of this Amendment contributes to the Shared Vision 2025 outcome of a Collaborative Community by helping to further the City of East Palo Alto’s economic and community development objectives and promote the expansion of the housing stock in the County, including a mandated affordable component.

 
 

FISCAL IMPACT:

There is no impact on the General Fund. The proceeds of the sale will be deposited in the appropriate Fund.