AgdaPkt 2010-10-11 - Laserfiche WebLink

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8.A Page 1 REPORT To the Honorable Mayor and City Council From the City Manager October 11, 2010 Subject Purchase of Real Property Recommendation By motion: 1. Authorize the City Manager to enter into purchase option agreements for the four properties known as the Chemical Way Site, and which are assignable to the County of San Mateo; 2. Authorize the City Manager to post option payments (non-refundable) totaling $8,000.00 and deposits (refundable) totaling $192,000.00, with the understanding that the County of San Mateo will reimburse $200,000.00 to the City prior to exercise of the option and the closing of the property sales; 3. Direct the City Manager to return to the City Council within approximately 60 days with a Memorandum of Understanding setting forth the obligations of the County and of the City and/or the Redevelopment Agency, to evaluate the suitability of the Chemical Way Site as a potential location for a new jail facility, including CEQA review, and if such site is determined to be feasible and the preferred site for such a facility, to exercise the option and move forward with the purchase and development of the Chemical Way Site. Background In March 2010, the City Council approved a professional services agreement with Davies Public Affairs, for the purpose of mounting a public campaign opposing the selection of a downtown site for the County's proposed replacement jail, and for identifying and evaluating alternative jail locations. The scope of that original agreement was based on the City Council's position that another jail in Downtown Redwood City is not in the community's best interests, and a threat to continuing revitalization efforts. The Davies contract covered work by the consulting team through July 2010, at which point sufficient momentum had been created to focus on an alternative jail site east of Highway 101, known as Chemical Way. In July 2010, the City Manager executed a new contract with Sares Regis Group of Northern California, L.P., a California Limited Partnership providing commercial real estate consulting services for the purpose of fast-tracking a due diligence process for the six privately-owned properties that comprise the Chemical Way site. The scope of that agreement was designed to cover tasks in August and September, when staff anticipated a Council decision on whether to proceed or not. On Sept. 27, 2010, the Council subsequently approved Amendment No. 1 to the Sares Regis agreement, which provides the scope and expertise to complete "phase two" due diligence work on the site, including assessment of ground water, soils, regulatory processing, and related check-list tasks.