HomeMy WebLinkAboutCC Resolution 14742 (Exclusive Negotiating Agreement with Goldstone Management Inc.)1
RESOLUTION NO. 14742
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL APPROVING AND
AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT TO NEGOTIATE
EXCLUSIVELY WITH GOLDSTONE MANAGEMENT INC. REGARDING REDEVELOPMENT
OF 1009 AND 1001 FOURTH STREET, 924-926 THIRD STREET, AND THE THIRD STREET
AND LOOTENS PLAZA PARKING GARAGE
WHEREAS, the City of San Rafael owns the real property and parking garage located at
Third Street and Lootens Plaza ("City Parcel"); and
WHEREAS, the City adopted a goal to “provide a vibrant Downtown” in “our Vision of
Downtown” in 1993, which was later incorporated into the goals of the General Plan as Goal 6.
General Plan Goal 6 includes the following implementation policies:
• NH 16 to substantially expand Downtown’s economic success and increase
opportunities for retail, office and residential development;
• NH 22 to create a popular and attractive residential environment that contributes to
the activity and sense of community in Downtown; and
• NH 34 to encourage activities that will promote the Fourth Street Retail Core as
being “Alive after Five”; and
WHEREAS, one of the City Council goals is to provide neighborhood and economic
vitality by supporting the development of key Downtown sites, and the City Council’s Economic
Development Committee has adopted "support development of key sites such as 1001-1009
Fourth Street" as one of its eight priorities; and
WHEREAS, Goldstone Management, Inc. ("Developer") has proposed redeveloping the
City Parcel and adjoining properties that Developer owns at 1009 and 1001 Fourth Street and
924-926 Third Street, into a mixed-use residential/retail development, including a market hall-
style food emporium and a fully automated parking garage ("Project"); and
WHEREAS, Developer has requested that the City enter into an exclusive negotiating
agreement to acquire the City Parcel, and in combination with the Developer’s adjacent parcels
that have already been assembled, will create a significant mixed-use development, provide
much needed housing, entertainment, and food services in the form of a Market Hall, create a
strong economic driver that will benefit downtown businesses, and re-establish the focal point of
the Downtown area; and
WHEREAS, the staff report accompanying this Resolution provides additional
information about the potential Project and a copy of the proposed “Agreement to Negotiate
Exclusively” (“ENA”); and
WHEREAS, staff engaged Burke, Williams & Sorensen, LLP and Keyser Marston
Associates, Inc. to evaluate the terms of the proposed ENA and their preliminary analysis
indicates that the current proposal provides adequate financial consideration for the City to
consider further negotiations regarding the potential Project; therefore staff recommends that
the City Council approve execution of the ENA; and
WHEREAS, funds have been appropriated in the Economic Development Department
budget for the current Burke, Williams & Sorensen, LLP and Keyser Marston Associates, Inc.
contracts for consulting services during the term of the ENA; and
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WHEREAS, the City Council intends and understands that in entering into the ENA the
City is not committing to grant any land use approvals for the Project or to approve any further
agreement with the Developer; and
WHEREAS, recently enacted AB 1486 amends the Surplus Lands Act to require that,
except where property is considered “exempt surplus land,” a local agency, including a city,
disposing of real property not needed for certain narrowly defined agency uses, must first offer
the property for sale to housing sponsors, school districts and parks districts for affordable
housing, educational purposes or parks purposes, as applicable;
NOW THEREFORE BE IT RESOLVED by the City Council of the City of San Rafael as
follows:
1. The City Council hereby finds and determines that the above recitals are true,
correct and incorporated herein.
2. The City Council hereby finds that the property subject to the ENA is “exempt
surplus land” as defined in Section 54221(f)(1)(F) because the potential transaction
contemplated by the ENA will necessarily involve the exchange of City’s land for another
property for the City’s use in that Developer will be required to develop a new replacement
garage and convey back to City a real property interest to ensure the public’s right to use the
replacement public parking spaces.
3. The City Council hereby approves the ENA and authorizes the City Manager to
execute on behalf of the City the ENA in substantially the form submitted to the City Council in
connection with the consideration of this Resolution, subject to such minor changes as the City
Manager and City Attorney may approve, provided, however, that nothing in this Resolution, the
preparation of the ENA or the conduct of the negotiations pursuant to the ENA shall be deemed
to commit the City to approve any land use approvals for the Project or to approve any further
agreement with the Developer.
4. The City Council authorizes and directs the City Manager and his designees to
take such steps as are reasonable and necessary to performance of the City's obligations under
the ENA and to carry out the terms and conditions of the ENA.
5. This Resolution shall take immediate effect upon adoption.
I, LINDSAY LARA, Clerk of the City of San Rafael, herby certify that the foregoing
resolution was duly and regularly introduced and adopted at a regular meeting of the City
Council of the City of San Rafael held on the eighteenth day of November 2019, by the following
vote:
AYES: COUNCILMEMBERS: Bushey, Colin, Gamblin, McCullough & Mayor Phillips
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
LINDSAY LARA, City Clerk