AgdaPkt 2011-05-23 - Laserfiche WebLink

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8.B. - Page2 subject sites. The Block 2 site appears to be especially suited for office development with incidental retail and other uses pursuant to Downtown Precise Plan requirements. Because it is large, it has ample room for structured parking. Staff is also continuing to explore the potential of the Winslow Street parking lot for a hotel with 100-150 rooms. Neither Block 2 nor the Winslow Street parking lot site were identified in the recently adopted Housing Element as housing sites and are less suited to residential development than other sites Downtown considering the remaining uncertainties related to future changes along the CalTrain right-of-way over time. The next major issue which must be settled is the process for the selection of a developer or developers. Several experienced developers have expressed interest in these sites, and proceeding with the right party is an important part of ensuring a successful project. Staff has identified three potential ways to move forward, which are described in detail below. It should be noted that the Council may elect to use one of these processes for Block 2, and a different process for the Winslow Lot if that is determined to be advantageous. Request for Proposals (RFP) process as Outlined in the City Charter. Pursuant to Section 3-1/2 of the Charter, sale of the City property would occur only after public notice to the highest responsible bidder bidding a minimum of 90% of the appraised value. The City may issue the RFP requiring the sale to occur in conformance with City development criteria for the site. Development criteria would be limited to specifying that consistency with the Precise Plan, the Redevelopment Implementation Plan (which is essentially the same because it mirrors the General Plan) and City zoning. An RFP would outline the City's vision for the site and criteria for selecting a developer, and would allow multiple developers to submit proposals. However, the City Charter would require the City to sell the property to the developer who submitted the highest bid, even if the City Council might prefer a development proposal from another developer. This limits the City's influence over what is ultimately built on the site, provided however that any development of the site will be subject to the Downtown Precise Plan use and design requirements. Once a developer is selected, the City and developer would enter into a simple purchase and sale agreement. Since the April 25t" meeting several developers have expressed strong interest in Block 2 and staff has also received inquiries about the Winslow lot for a hotel. The RFP could be structured to allow proposals for Block 2 alone, the Winslow Lot alone, or for both sites together. Exclusive Right to Negotiate (ERN) agreement under the Redevelopment Agency. The City property is located in the Redevelopment Project Area, but belongs to the City. Provided that the Redevelopment Agency (RDA) is not abolished or its authority severely abrogated, the City property could be transferred to the RDA. Because the RDA has broader powers concerning the disposition of real property, the Agency would have greater flexibility in selecting the developer and establishing specific development criteria if the project was carried out under its authority. Particularly, going forward with the project under