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Home My WebLink AboutSPJT Minutes 1998-02-17SRCC/SRRA MINUTES (Spec. Jt.) 2/17/98 Page 1 IN THE COUNCIL CHAMBER, CITY OF SAN RAFAEL, TUESDAY, FEBRUARY 17, 1998, AT 11:50 PM Special Joint Public Hearing: Present: Gary O. Phillips, Vice-Mayor/Chairman San Rafael City Council/ Paul M. Cohen, Councilmember/Member San Rafael Redevelopment Agency Barbara Heller, Councilmember/Member Cyr Miller, Councilmember/Member Absent: Albert J. Boro, Mayor/Chairman Others Present: Rod Gould, City Manager, Executive Director Lee Rosenthal, Redevelopment Agency Attorney Gary Ragghianti, City Attorney Jeanne M. Leoncini, City Clerk/Agency Secretary 7:30 PM - Mayor/Chairman Boro announced this meeting would be held over this evening until the end of the regular City Council meeting. SPECIAL JOINT PUBLIC HEARING - TO CONSIDER THE OWNER PARTICIPATION, DISPOSITION AND DEVELOPMENT AGREEMENT (OPDDA) FOR SALE OF PROPERTY AT 750 LINCOLN AVENUE (APN 13-021-19 AND PORTION OF 13-021-37) TO FAIR, ISAAC AND COMPANY, INC. (RA) - File (SRCC) 2-7 x (SRRA) R-405 x R-370 x R-341 x R-368 Mayor/Chairman Boro recused himself from this hearing, due to conflict of interest, and turned the meeting over to Vice -Chairman Gary Phillips. Vice-Mayor/Vice-Chairman Phillips declared the public hearing opened, and asked for the staff report. Economic Development Director Jake Ours explained tonight the Council and Redevelopment Agency were being asked to approve the sale of the City's Corporation Yard to the Fair, Isaac Corporation, for inclusion in their project for a parking structure. He reported the sale would be at Fair Market price, which had been established by appraisals. He stated there were provisions to close the sale sooner than the City would vacate, and the City would then lease the property back from Fair, Isaac, at a price that equals what the City will be getting in interest for the money we have gotten, making it a "zero push". Mr. Ours reported the City would be terminating the Shell Gas Station lease on that site, noting he believed it would be in everyone's favor to get that off the site, as it does create some traffic problems. Mr. Ours stated the architectural selection process had begun for the project, and it is moving along very well, noting the last step were the actions now before Council for approval. Councilmember/Member Cohen noted the staff report states a small portion of the "Wye" track property was to be sold with the Corporation Yard, to provide contiguous ownership of the property, and points out there is no value to this land, as it is undevelopable. Mr. Cohen asked if the City had paid for the land? Mr. Ours reported we had paid a nominal amount, $.80 per square foot, for the land, but noted we were also getting an easement across it, so we will be able to use it in the future. Councilmember/Member Cohen asked why it was necessary to terminate the Shell Gas Station lease now, since we do not anticipate anything happening on the land for the next couple of years? Mr. Ours reported staff would be working with Fair, Isaac to determine the date they need to take possession. He noted the City has a 120 day lead time on the lease, and pointed out this site does have environmental problems. He acknowledged it did not necessarily need to happen now, but that would be jointly determined with Fair, Isaac, as to when they need to get in there. City Manager/Redevelopment Agency Director Rod Gould noted the Lease with Shell Oil Company requires that the land must be delivered in a clean state, so Shell would need some time to remediate the toxics on the site. He pointed out the City also needs the land for the Second Street widening. Mr. Cohen stated it appeared to read as though the gas station would have to be gone within 120 days from now. Mr. Ours pointed out we would need that right-of-way by next year for the Second Street widening, so we were getting close to the time the lease must be terminated. Councilmember/Member Cohen referred to that section of the staff report which SRCC/SRRA MINUTES (Spec, Jt.) 2/17/98 Page 1 SRCC/SRRA MINUTES (Spec. Jt.) 2/17/98 Page 2 addresses demolition and remediation, noting it states Fair, Isaac would pay the first $250,000 of those costs, and then the City would split the next $500,000. He asked, therefore, if we spent another $100,000 over the first $250,000, would we each then be responsible for $50,000? Mr. Gould stated that was correct, although he noted the City's consultant and Fair, Isaac's consultant both believe it will cost significantly less than $250,000 to remediate the toxics and demolish the site. Therefore, there is relatively little risk the City will have to participate in the cleaning and demolition of the site. He further stated, if this were a normal transaction, we would be required to reduce the price paid for the Corporation Yard, with respect to how much it is going to cost to clean and demolish it; however, in this case, Fair, Isaac has assumed that cost, noting that could be argued as one of the Public Benefits that comes with this project, because the City will, in essence, receive a higher purchase price for its property, because Fair, Isaac has chosen to accept the cost of cleaning and demolishing the site. Councilmember/Member Cohen referred to the first Resolution being presented, noting it states the City Manager or the Mayor is authorized to execute the sub- lease; however, since the Mayor has recused himself, in everything else being adopted the Vice -Mayor has been authorized to execute the documents. Mr. Ours stated the document would be changed to specify the Vice -Mayor is authorized to execute the document. There being no public comment, Vice-Mayor/Vice-Chairman Phillips closed the public hearing. SAN RAFAEL CITY COUNCIL - File 2-7 Councilmember Cohen moved and Councilmember Miller seconded, to adopt the Resolution approving the Owner Participation Disposition and Development Agreement between the San Rafael Redevelopment Agency and Fair, Isaac and Company, Inc., with the language modification authorizing the City Manager or the Vice -Mayor, rather than the Mayor, to execute the document. RESOLUTION NO. 10027 - RESOLUTION APPROVING AN OWNER PARTICIPATION, DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN THE SAN RAFAEL REDEVELOPMENT AGENCY AND FAIR, ISAAC AND COMPANY, INC. (RE: SALE OF 750 LINCOLN AVENUE TO FAIR, ISAAC) (as amended on Page 2, Section 3, to show City Manager or Vice -Mayor authorized to execute document). AYES: COUNCIL ERS: Cohen, Heller, Miller & Vice -Mayor Phillips NOES: COUNCIL ERS: None ABSENT/DISQUALIFIED: COUNCIL ERS: Mayor Boro (due to conflict of interest). SAN RAFAEL REDEVELOPMENT AGENCY - File R-405 x R-370 x R-368 x R-341 Member Cohen moved and Member Heller seconded, to adopt the Resolution approving and authorizing Execution of an Owner Participation Agreement, Disposition and Development Agreement between the San Rafael Redevelopment Agency and Fair, Isaac and Company, Inc. RESOLUTION NO. 98-9 - RESOLUTION APPROVING AND AUTHORIZING EXECUTION OF AN OWNER PARTICIPATION, DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN THE SAN RAFAEL REDEVELOPMENT AGENCY AND FAIR, ISAAC AND COMPANY, INC. (RE: SALE OF 750 LINCOLN AVENUE TO FAIR, ISAAC). AYES: MEMBERS: Cohen, Heller, Miller & Vice -Chairman Phillips NOES: MEMBERS: None ABSENT/DISQUALIFIED: MEMBERS: Chairman Boro (due to conflict of interest). There being no further business, the meeting was adjourned at 12:00 Midnight. SRCC/SRRA MINUTES (Spec, Jt.) 2/17/98 Page 2 SRCC/SRRA MINUTES (Spec. Jt.) 2/17/98 Page 3 JEANNE M. LEONCINI, CITY CLERK/AGENCY SECRETARY APPROVED THIS DAY OF , 1998 VICE -MAYOR OF THE CITY OF SAN RAFAEL/ REDEVELOPMENT AGENCY VICE CHAIRMAN SRCC/SRRA MINUTES (Spec, Jt.) 2/17/98 Page 3