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<br />R......................E.... ..p;:.'.O.... R.... T' ...... <br />,'- ,.-.,.... '."'- .. <br />. . '. . - . - - . . <br />.- .' . <br />~.' .,_ :" ',,".H _ ."... .." . '.: <br />: ',' <br />" . , . . <br />. ~ . .... . "... <br />. . -. . <br />....... U__' ,.... _. ., ,- <br /> <br />6.1H <br />Page 1 <br /> <br />To the Honorable Mayor and Oity Council <br />From the C..' ity Manager <br />. , . <br />,- ' <br /> <br />.. .. <br /> <br />November 13, 2006 <br /> <br />Subject <br />Amendment of contract with the law firm of Hanson Bridgett <br /> <br />Recommendation <br />By motion approve amendment to contract for services (Phase II) by Hanson Bridgett for <br />an amount not to exceed $40,000. <br /> <br />Background <br />The City is negotiating with the owners of the Century 12 property on Highway 101 <br />regarding the ultimate use of the land. It is in the City's interest to enter into a ground lease <br />with the owners so the City can sublease it with end uses of the Citys' choice. The law firm <br />of Hanson Bridgett was retained to assist in these negotiations, bringing technical expertise <br />in complex real estate transactions as well as municipal environmental law. <br /> <br />Phase I of the work was the development of a Letter of Interest (LOI), a non-binding <br />proposal that will be the basis for negotiating a formal ground lease. Phase I has been <br />completed and staff is ready to move into Phase II will involve the writes of a formal Lease <br />agreement with Syufy. It is very difficult to estimate the time this will take as it depends on <br />the number of end users and their willingness to move quickly. Staffs best estimate is <br />$40,000 for this next phase. <br /> <br />If efforts are successful in Phase II, there will be a Phase III, which will entail writing formal <br />Subleases with interested parties. <br /> <br />Alternative <br />The alternative is to have the City Attorney step in and complete the next phase. This <br />would be a significant burden on limited in-house resources. <br /> <br />Fiscal Impact <br />Funds have not been appropriated for this expense, and hence staff will come back to <br />Council for a budget amendment later in the fiscal year. <br /> <br />/../'-. <br />,r .I ,.'} l <br />( /- '; I <br />/ . /,t 1/ ._.,- <br />..1 /:1 .' ,/7~>..- <br />\ .']" .;, ..1(..-:;- <br />)//~/F l/"_':~ &,... t.....,.' .,:1....."....<? <br />Edward Evefett .' <br />City Manager <br /> <br />Attachment: Agreement between Hanson Bridgett and City of Redwood City <br />