AgdaPkt 2017-07-24 Closed and Joint SA FPA

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6.1.J. - Page 1 REPORT To the Honorable Mayor and City Council From the City Manager July 24, 2017 SUBJECT Extension to the Exclusive Negotiating Rights Agreement for the Bradford Street Affordable Housing Development RECOMMENDATION By motion, approve a 60 -day extension to the Exclusive Negotiating Rights Agreement with MidPen Housing Corporation for the Bradford Street Affordable Housing Development and authorize the City Manager or designee to execute the extension BACKGROUND In June 2015, the City issued a Request for Proposals ("RFP") to select a developer to develop an affordable housing development ("Development") on vacant land owned by the City. Through a competitive process, on April 11, 2016 City Council selected MidPen Housing Corporation ("MidPen") as the developer of the Bradford Street Affordable Housing site for the development of affordable rental housing, a childcare center and public open space along Redwood Creek. On May 23, 2016, the City Council approved an Exclusive Negotiating Rights Agreement ("Agreement") with MidPen for the Bradford Street Housing Development and authorized the City Manager to execute the Agreement. The term of the original Agreement was 180 days commencing on the effective date of May 23, 2016 and permitted the Assistant City Manager to execute an extension up to 90 days by written mutual agreement of the parties. An extension was executed on October 24, 2016 to extend the Agreement to February 17, 2017. On February 13, 2017, the City Council approved a six-month extension to the Agreement. An extension was requested due to unanticipated property title issues, requiring additional time for the City and the Developer to conduct title research. The Agreement was extended to August 17, 2017. Unfortunately, the title issues are complex, and have taken more time than expected to navigate. While staff is confident negotiations will be completed soon, negotiations will not be finalized prior to August 17, 2017. Therefore, as outlined below, staff is requesting a 60 -day extension to the Exclusive Negotiating Rights Agreement. It is expected that the Council will review the Disposition and Development Agreement (DDA) at its next meeting, on August 28, 2017.