Agda Pkt 2025.12.08 Joint SA PFA

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Page 4 of 8 City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.org Street site as well as the Bay Trail, Blomquist Street and related infrastructure. Concerns included the number of extensions, the reduced impact fees that would be collected, and whether further negotiation was warranted. The majority of commissioners felt it was important to move the project forward, build missing middle housing and enable development of the adjacent 1580 Maple Street affordable housing project to further housing goals and transportation goals such as the Bay Trail segment along the project frontage, and connectivity with the pedestrian bridge across Redwood Creek and ultimate vehicular bridge. PROJECT DESCRIPTION The Fourth Amendment to Development Agreement would provide the current Developer (The Carlysle Group purchased the site in 2021) the flexibility to phase construction of the Bay Trail and the Blomquist Extension, including all associated underground utility work, with the construction of townhome units. The proposed Development Agreement Amendment would affect timing, phasing and total fees to be collected, but would not affect the outcome or design of the Project. ANALYSIS Since City’s approval of the previous Development Agreement extension in 2023, the parties have made substantial progress on performing under the Development Agreement. For example, the City obtained the right-of-way needed to construct the Blomquist-County Segment, and the Developer abated hazardous materials and completed demolition of the former County jail building. Additionally, consistent with the subdivision improvement plans, the site has been filled with soil to raise it out of the flood plain and prepare it for development. While substantial progress has been made and pandemic-era economic conditions have slowly improved, the real estate development market has not rebounded quickly enough to allow development of the Project to be completed within the current remaining term of the Development Agreement. Given those development market constraints and the approaching expiration of the current Project entitlements, the Developer has requested an additional term extension to provide assurances to lenders and other financing partners that the Project can be completed. The proposed extension will enable the Developer to obtain financing to ensure that construction can commence and create incentives for Developer to expedite construction of the Blomquist Extension. Additionally, the Developer will be given additional fee credits for construction of the Blomquist Extension that is identified within Transportation Impact Fee Capital Improvement Plan/Project List. Fourth Amendment to the Development Agreement The Development Agreement is currently set to expire on September 3, 2026. The proposed Fourth Amendment to the Development Agreement would extend the term of the Development Agreement by an additional three years (to September 3, 2029) with the potential of another two-year extension (to September 3, 2031) if the Developer completes construction of the Blomquist Extension Work and obtains certificates of occupancy for at least 14 residential units prior to the agreement expiration. The Fourth Amendment to the Development Agreement does not change the previously approved Project and complies with General Plan and Zoning standards. The City’s goal is to expedite the completion of Blomquist Extension and incentivize the construction of the residential units. 9.C. - Page 4 of 56 548