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HomeMy WebLinkAboutED Amendment of Agreement to Negotiate Exclusively with Goldstone Management, Inc. PPTGOLDSTONE MANAGEMENT, INC. EXCLUSIVE NEGOTIATION AGREEMENT EXTENSION Presented by Danielle O’Leary, City of San Rafael REQUEST UNDER COUNCIL CONSIDERATION•Developer Paul Goldstone is requesting an extension with the City of San Rafael to continue negotiations for the purchase and replacement of the Lootens parking garage in Downtown San Rafael to support a larger mixed-use commercial and residential development. •If extension is granted by Council, the Negotiation Period will now last (33) months, three additional months under the existing ENA, as previously amended, and move the Preliminary Stage target date from March 6, 2021 to June 6, 2021. The DDA Stage duration remains at (15) months with a new target date of September 6, 2022. PROJECT BACKGROUND •The Developer owns three adjacent parcels at: •1009 Fourth Street •1001 Fourth Street •924-926 3rd Street •Developer is proposing to purchase and replace the Lootens parking garage with an automated parking garage. The 171 public parking spaces would be replaced and remain open for public use, with additional parking spaces provided to support a market-hall style mixed-use commercial development, which also includes residential units. •The City has engaged Watry Design, Inc. to assist with peer review of the parking proposal, outside legal counsel from Burke, Williams & Sorensen, LLP, and financial consultant Keyser Marston Associates to review submitted plans and studies. •Economic Development continues to collaborate with City departments including Community Development, Department of Public Works, and Parking Services to ensure proposal is consistent with City goals and policies. STATUS CHECK-IN •COVID-19 has impacted negotiations, causing the need for extension requests. •In December 2020, the developer requested and paid for the City to conduct an independent appraisal of the Lootens garage property to help the developer with their preliminary feasibility project pro-forma. •The City Manager, under his authority, executed a 90-day contract extension for the work to continue. •Appraisal results were received and shared with the Goldstone team in late January, the Goldstone team provided formal comments to the City in late February. The City team is now working on providing a formal response to the Goldstone team. •An additional extension is needed to discuss the appraisal, receive and analyze the automated parking proposal, and review the preliminary project pro-forma from the Goldstone team. •Because the duration of negotiations have taken longer than expected, the developer will be required to submit and additional $15,000 to the City to cover additional costs anticipated by the City incurred during the ENA negotiation phase. CONCLUSION/RECOMMENDATION •Adopt resolution to retroactively extend the Agreement to Negotiate Exclusively with Goldstone Management, Inc. from March 6, 2021 to June 6, 2021.