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HomeMy WebLinkAboutED Ground Lease to Centertown II, LP of 855 C Street PPTCity Council C Centertown II, LP Refinance Public Hearing September 13, 2021 Background •August 17, 2020, Council approved Resolution No. 14851, authorizing the City Manager/Mayor to execute an ”Option to Lease” with BRIDGE/EAH. •First step in helping BRIDGE/EAH obtain refinancing to conduct much needed maintenance and property improvements to Centertown located at 855 C Street, San Rafael. •Centertown has approximately 60 units of affordable housing in downtown San Rafael. New Ground Lease Terms •Term: 99 Years, current commencement date would be on or about October 22, 2021. •Premises: city owned land at 855 C Street, previously leased to Centertown, LTD (an affiliate of Centertown LP). The improvements, previously owned by Centertown, LTD, will be owned by its successor Centertown II, LP. The prior lease will be terminated. •Base Rent to the City: one time payment of $83,000 (appraised land value), plus $1.00 per year payable at closing, plus a $5,000 per year monitoring fee, with 3% annual escalators. Use of Funds •Rehabilitating:outdated building systems, including recladding the exterior building to protect from water intrusion, plumbing repairs, new HVAC, installing new drainage systems, ADA improvements, new windows and doors, improvements to community and common areas. •Timing/Sequencing: project schedule contemplates a closing on October 22, 2021. This ordinance is being introduced for initial approval at the September 13, 2021, City Council meeting and if passed, final adoption at the September 20, 2021, meeting. Recommendation Action •Adopt Ordinance approving and authorizing the Mayor to execute a ground lease of real property at 855 C Street, San Rafael (Centertown) to Centertown II, LP.