HomeMy WebLinkAboutCC Resolution 15480 (Declaration of Shelter Crisis and Approval of Related Actions and Aquisition of the Property at 350 Merrydale Road)4926-0427-1479 v5 1
RESOLUTION NO. 15480
A RESOLUTION AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE A
PURCHASE AND SALE AGREEMENT IN THE AMOUNT OF $6.7 MILLION, PLUS
ASSOCIATED COSTS; TO EXECUTE A CERTIFICATE OF ACCEPTANCE AND OTHER
DOCUMENTS NECESSARY TO COMPLETE THE PURCHASE OF THE REAL PROPERTY
LOCATED AT 350 MERRYDALE ROAD; AND TO EXECUTE A PROFESSIONAL SERVICES
AGREEMENT WITH CORNISH AND CAREY COMMERCIAL (D/B/A NEWMARK) IN AN
AMOUNT NOT TO EXCEED $201,000 FOR REAL ESTATE BROKERAGE SERVICES
RENDERED TO THE CITY FOR THE CITY’S PURCHASE OF 350 MERRYDALE ROAD (APNS
179-041-27 & 179-041-28); CEQA DETERMINATION: NOT A PROJECT PER GOVERNMENT
CODE SECTIONS 8698.4(a)(4); 65660(b), 65662; PUBLIC RESOURCES CODE SECTION
21080(b)(1) [MINISTERIAL PROJECT]; CEQA GUIDELINE 15268(b) [MINISTERIAL
PROJECT]; EXEMPT PURSUANT TO CEQA PUBLIC RESOURCES CODE SECTION 15183
[CONSISTENT WITH GENERAL PLAN POLICIES]; CEQA GUIDELINES 15269(c)
[EMERGENCY]; 15332 [INFILL]; 15061(b)(3) [COMMON SENSE]; 15378(b)(4) [FISCAL
ACTIVITY] .
WHEREAS, the City of San Rafael (“City”) faces a lack of housing supply and affordable
housing, as documented in the City’s 2023-2031 Housing Element, the Marin County Civil Grand
Jury’s 2024-2025 report titled “The Worrisome Future of Marin Housing,” and Rooted in Marin, a
2025 analysis of anti-displacement strategies for Marin County; and
WHEREAS, the City has adopted housing specific goals, policies, and programs to
address the lack of housing supply and affordable housing; and
WHEREAS, on May 15, 2023 the City Council of the City adopted Resolution No. 15215,
adopting the City’s 2023-2031 Housing Element; and
WHEREAS, the Housing Element’s Housing Action Plan included Goal H-1:
Homelessness: End and prevent homelessness in San Rafael as well as Goal H-4: Housing
Choice: Meet housing needs through a range of housing choices and affordability levels
throughout the city; and
WHEREAS, the Housing Action Plan identified policies to advance its goals, including:
• Policy H-1.1: Collaboration and Coordination
o Work with the County of Marin, local supportive service providers, and housing and
social justice organizations to assist persons experiencing homelessness.
• Policy H-1.2: Transitional and Supportive Housing
o Support permanent supportive housing for those who are unhoused or at risk of
losing their housing.
• Policy H-1.3: Emergency Shelters
o Allow for emergency shelters in appropriate zoning districts in order to
accommodate San Rafael’s unsheltered population.
• Policy H-4.1: Equitable Distribution of Affordable Housing
o Encourage the creation of affordable housing opportunities in all parts of the city,
including areas where such housing does not exist today.
• Policy H-4.4: Affordability of Projects on Public Land
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o Prioritize the development of affordable housing rather than market rate units on
surplus public land.
• Policy H-4.14: Commercial to Residential Conversion
o Encourage the adaptive reuse of older commercial buildings, including office and
retail buildings, for housing; and
WHEREAS, on June 2, 2025 the San Rafael City Council adopted Resolution No. 15420
to adopt the City’s Three-Year Strategic Plan for Fiscal Years 2025-2028; and
WHEREAS, the Strategic Plan included Priority Area D: Housing and Homelessness:
Facilitate new housing development, assist in ensuring housing stability, support a “Housing First”
model, and implement strategies that reduce homelessness; and
WHEREAS, the Strategic Plan Priority Area D includes Goal D.1.1: In collaboration with
the County of Marin, explore the implementation of a housing-focused interim shelter program,
supported by robust case management services to assist in transitioning unhoused community
members into permanent supportive housing, or other permanent housing solutions; and
WHEREAS, the Strategic Plan Priority Area D also includes Goal D.1.4: Strategically
increase and secure additional funding sources by leveraging key partnerships that will support
additional programs that reduce homelessness; and
WHEREAS, the Strategic Plan further includes Goal D.2: Advance the development of
new housing across all affordability levels to meet the stat’s regional housing needs allocation
(RHNA) requirements as outlined in the City’s Housing Element, ensuring diverse, sustainable,
and equitable housing opportunities for all residents; and
WHEREAS, as part of the City’s Equity, Diversity and Inclusion Element, San Rafael’s
2040 General Plan includes Goal EDI-3: Housing Stability: Improve housing stability for all San
Rafael residents, particularly those with low or very low incomes; and
WHEREAS, in 2025 the County of Marin coordinated Rooted in Marin, an analysis of
housing in Marin County and strategies for anti-displacement; and
WHEREAS, the Rooted in Marin report found that the lack of housing supply and
affordable housing in Marin County have led to sustained population loss since 2018, particularly
loss of low-income households making less than 50 percent of the area median income (AMI), as
well as increased greenhouse gas emissions from workers commuting to Marin County, and lost
economic opportunities due to people not being able to afford living in Marin County; and
WHEREAS, the City has utilized the real estate brokerage services of Cornish & Carey
Commercial (d/b/a Newmark) to locate a property with a willing seller, which City could purchase
to use as an interim shelter and/or permanent affordable housing within the City limits in fulfillment
of City goals; and
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WHEREAS, Newmark is a real estate brokerage firm, providing a full range of commercial
real estate services to its clients, and is located in San Rafael, with specific knowledge of the San
Rafael real estate market; and
WHEREAS, the purchase of real estate requires specialized knowledge best provided by
licensed real estate professionals; and
WHEREAS, in the spring of 2025, Newmark informed the City about the opportunity to
purchase 2.5 acres of property located at 350 Merrydale Road/3833 Redwood Highway and
identified as Marin County Assessor’s Parcel Number (APN): 179-041-27 and 179-041-28
(hereinafter referred to as “Property”) shortly after the Property was listed for sale; and
WHEREAS, Ridgewood Properties Partnership, LLC, a California Limited Liability
Company and Merrydale-Clayton LLC, a California Limited Liability Company (collectively,
“Owners”) presently own the Property,
WHEREAS, City retained a certified appraiser to prepare an appraisal of the Property for
the City;
WHEREAS, staff has negotiated a Purchase and Sale Agreement and Joint Escrow
Instructions (“Purchase and Sale Agreement”) with the Owners;
WHEREAS, the purchase price for the Property is consistent with its appraised fair market
value; and
WHEREAS, the City intends to use the Property for an interim shelter, which includes a
low barrier navigation center, to provide shelter to 65 individuals at a given time, with good faith
efforts to prioritize placement of unhoused individuals located at the City’s current Sanctioned
Camping Area, followed by the Andersen Road Encampment, and then other encampments in
the City at the interim shelter on the Property; and
WHEREAS, the City also intends to use the Property for 80 units of permanent affordable
housing, and the City will make a good faith effort to keep affordability levels as low as possible
dependent on funding and other factors developed in the project’s proforma; and
WHEREAS, on November 4, 2025, the City’s Planning Commission adopted Planning
Commission Resolution No. 25-07, rendering a report that the City’s acquisition of the Property
conformed with the City’s General Plan; and
WHEREAS, to advance the goals of reducing homelessness and providing more
affordable housing opportunities, the City and County of Marin (“County”) have agreed to partner
on the acquisition of the Property, which will serve initially as an interim shelter for unhoused
individuals and subsequently a permanent affordable housing development project, with the
County providing an $8 million grant (“Grant”) to finance City’s purchase of the Property and
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WHEREAS, to use the Property as an interim shelter and permanent affordable housing,
allowing the use of the City and County’s State Encampment Resolution Fund- Round 3 Grant to
operate an interim shelter; and
WHEREAS, at its November 18, 2025, meeting, the County’s Board of Supervisors will
consider authorizing the making of the Grant based on the terms and conditions as set forth in
the Grant Agreement and the Affordable Housing Agreement attached to the accompanying staff
report; and
NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of San Rafael as
follows:
1. Findings:
a. Based upon the accompanying staff report, its attachments, the staff
presentation and written and verbal comment submitted before and during the
public hearing, the City Council finds the foregoing recitals true and correct.
b. California Environmental Quality Act (“CEQA”). Upon declaration of a shelter
crisis, CEQA does not apply to financial assistance or conveyance by a local
government for a homeless shelter. (Cal. Gov. Code Sec. 8698.4(a)(4).)
Further, the underlying projects, a temporary homeless shelter or low barrier
navigation center, are both uses by right and therefore ministerial projects not
subject to CEQA, pursuant to Public Resources Code section 21080(b)(1) and
CEQA Guidelines section 15268(b) (see also Gov. Code sections 65660(b),
65662). The proposed future affordable housing project is also exempt from
CEQA pursuant to Public Resources Code sections 15183 (Community Plan
Exemption) and 15332 (Class 32 Infill). Approval of the brokerage agreement
does not constitute a project pursuant to CEQA Guideline 15378(b)(4), and
even if it did constitute a project, approval of the brokerage agreement is
exempt from CEQA pursuant 15061(b)(3) under common sense that it can be
seen that the brokerage agreement will not result in an impact to the
environment. Finally, adoption of this Resolution is exempt pursuant to CEQA
Guideline 15269(c) as necessary to mitigate an emergency situation caused
by the affordable housing shortage. The procurement of professional services
by Newmark is exempt from competitive bidding pursuant to San Rafael
Municipal Code Section 2.55.100.D and Newmark has demonstrated the
competence and the necessary real estate license to render real estate
brokerage services.
2. The purchase price for the Property is consistent with the appraiser’s determination of
the fair market value of the Property;
3. Contingent upon the County authorizing execution of the County Grant Agreement at
its November 18, 2025 meeting, the City Manager is authorized to negotiate and
execute the Purchase and Sale Agreement for the Property, subject to such further
minor conforming, technical or clarifying changes or revisions as may be agreed to
and approved by the City Manager and City Attorney, which do not materially increase
the obligations of the City thereunder, and to execute said Purchase and Sale
Agreement for the Property after the Court hears the application for an ex parte order
filed on November 12, 2025, by the petitioners/plaintiffs in Ken Dickinson,et al. v City
of San Rafael, et al., Marin Superior Court Case No. CV 008170, provided the Court
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rules on the application for the ex parte order on or before November 24, 2025; if the
Court does not rule on the application for the ex parte order by 5:00 p.m. on November
24, 2025, and the County has authorized the execution of the County Grant
Agreement, upon the recommendation of the City Attorney, the City Manager is
authorized to sign the Purchase and Sale Agreement; and
4. Contingent upon the County authorizing execution of the County Grant Agreement at
its November 18, 2025 meeting, the City Manager is authorized to execute ancillary
documents that are necessary to compete the purchase, including a certificate of
acceptance of a Grant Deed of the Property, each in a form approved by the City
Attorney or designee; and
5. Contingent upon the County authorizing execution of the County Grant Agreement at
its November 18, 2025 meeting, the City Manager is authorized to execute the
professional services agreement with Cornish and Carey Commercial (doing business
as Newmark) for real estate brokerage services rendered to the City for the City’s
purchase of the Property in an amount not to exceed $201,000, and to execute said
professional services agreement after the Court hears the application for an ex parte
order filed on November 12, 2025, by the petitioners/plaintiffs in Ken Dickinson,et al.
v City of San Rafael, et al., Marin Superior Court Case No. CV 008170, provided the
Court rules on the application for the ex parte order on or before November 24, 2025;
if the Court does not rule on the application for the ex parte application by 5:00 p.m.
on November 24, 2025, and the County has authorized the execution of the County
Grant Agreement, upon the recommendation of the City Attorney, the City manager is
authorized sign the professional services agreement; and
6. Contingent upon the County authorizing execution of the County Grant Agreement at
its November 18, 2025 meeting, the City Manager or designee is authorized to take
any action necessary or incidental to carrying out the intention of this Resolution,
including, but not limited to, repayment of the $155,341.80 amount Sellers paid to Las
Gallinas Valley Sanitary District within one (1) year after the close of escrow, payment
of transaction costs which are customary for a buyer to pay and performing City’s
obligations under the Purchase and Sale Agreement.
I, LINDSAY LARA, Clerk of the City of San Rafael, hereby certify that the foregoing resolution
was duly and regularly introduced and adopted at a regular meeting of the City Council of said
City on Monday, the 17th day of November 2025, by the following vote, to wit:
AYES: Councilmembers: Bushey, Kertz, Llorens Gulati & Mayor Kate
NOES: Councilmembers: None
ABSENT: Councilmembers: Hill
Lindsay Lara, City Clerk