HomeMy WebLinkAboutSA Corporate Center DevelopmentSAN RAFAEL
SUCCESSOR
AGENCY
AGENDA ITEM NO.: 9 , a
MEETING DATE: December 16, 2013
Department: Economic Development
Prepared by: Stephanie Lovette
Economic Development Manager
Executive Director Approval:
SUBJECT: Resolution of w Rafael Successor Agency Approving the Execution and
Implementation of a "Consent and Agreement" Relating to the Owner Participation,
Disposon and Development Agreement with SR Corporate Center Phase One, LLC and
SR Corporate Center Phase Two,for the San Rafael Corporate Center Development
BACKGROUND: In 1998, the City Council and Redevelopment Agency Board approved the
development of the 406,000 -square -foot San Rafael Corporate Center on Lindaro and Second
Streets in Downtown. This project was originally envisioned as the corporate headquarters for
the Fair Isaac Corporation. The development of a large employment center within walking
distance of Fourth Street was a keystone of the City's Downtown Vision.
The City Council approved a Development Agreement and related land use and planning
approvals. The Redevelopment Agency Board approved an Owner Participation, Disposition
and Development Agreement ("OPDDA") which provided for the sale of the City's Corporation
Yard site to the developer at a sales price of $2,000,000, and imposed development obligations
for the entire property in connection with the sale. The City of San Rafael became the
Successor Agency to the former San Rafael Redevelopment Agency, upon the demise of all
California redevelopment agencies effective February 1, 2012.
In 2000, prior to the commencement of construction, Fair Isaac sold the site to Wilson/Equity
Office and the Redevelopment Agency approved assigning the OPDDA to the new owner.
These conditions were also incorporated into the Development Agreement and the Use Permit
for the development. At the same time the City Council approved assignment of the
Development Agreement to the new owner.
In 2007, the City Council and Redevelopment Agency again approved assignments of the
*PDDA and Development Agreement, when the property was sold to the present owner SR
Corporate Center Phase One, LLC and SR Corporate Center Phase Two, LLC (collectively "SR
Corporate"). SR Corporate is an affiliate of Seagate Properties, Inc. of San Rafael.
The first phase of the San Rafael Corporate Center has been constructed and occupied. The
second phase is approved for two parking garages and three office buildings. The office
t
buildings at 770 and 790 Lindaro Street and the western parking garage at 775 Lindaro Street
have been constructed and occupied. The two structures that remain to be built are an office
building at 791 Lincoln Avenue and the eastern parking garage at 788 Lincoln Avenue.
The OPDDA governs the timing of construction of this project. Under the OPDDA, th
construction of the final two structures was to begin in 2009. Due to the impact of the Gre
Recession, the property owner requested an extension for the construction of the final tw
structures. The Redevelopment Agency agreed to a thirty month extension in 2009 an
included a provision for a second thirty month extension upon reasonable and timely request b,
the property owner. The property owner requested the additional thirty months and the reque
was approved by the City of San Rafael, as Successor to the Redevelopment Agency, o
November 18, 2013.
SR Corporate now wishes to sell the San Rafael Corporate Center to BioMarin Pharmaceutica�'l
Inc. ("BioMarin"), and to assign to BioMarin all of SR Corporate's rights, entitlements, an*,
obligations under the Development Agreement and the i' i'
ANALYSIS: BioMarin signed a lease for over 40% of the entire Corporate Center site in 2011
to house the world headquarters of BioMarin. Bio Marin is currently headquartered in Novato.
BioMarin currently houses about 300 employees at San Rafael Corporate Center and this
number is expected to increase over time.
To assure continued growth at this site, BioMarin desires to purchase San Rafael Corporate
Center and its remag entitlements from SR Corporate. To effectuate the sale, SR Corporate
is requesting the Successor Agency ) s approval of a "Consent and Agreement" to assign its
rights and obligations under the Development Agreement and the i' r' to BioMarin. Section
5 of the OPDDA permits the transfer of the OPDDA with the Agency ) s consent. The City
Council's consideration of the Consent and Agreement for purposes of the assignment of the
Development Agreement is on the City Council agenda for this date.
The requested sale and assignments will not change any of the public benefit amenities that are
contained in the Development Agreement and Use Permit with the City of San Rafael. These
public benefits included the allowance for night and weekend public parking on one lot, public
access, during business hours, to the privately maintained park along Mahon Creek, and the
provision for public use of meeting rooms at the Center.
Staff is recommending approval of the requested Consent and Agreement. If the City Council
adopts a resolution approving SR Corporate's request to assign the Development Agreement to
BioMarin, staff recommends that the Successor Agency adopt the attached Resolution
approving and authorizing the Executive Director to execute the "Consent and Agreement )) to
permit the sale of the SR Corporate Center to BioMarin along with the assignment of rights and
obligations under the Owner Participation, Disposition and Development Agreement for the
development.
011M
#PTIONS:
• Adopt the Resolution approving the Consent and Agreement.
• Modify the Resolution approving the Consent and Agreement.
Request further information.
11folarzarOFT MO
ATTACHMENTS:
Resolution
A: December 6, 2013 letter request from Seagate Properties, Inc.
B: Draft "Consent and Agreement J)
' RESOLUTION' RAFAEL SUCCESSOR AGENCY
APPROVING
r E r AND IMPLEMENTATION '
'AGREEMENT"RELATING OWNER PARTICIPATION,
DISPOSITION AND DEVELOPMENT AGREEMENT WITH SR CORPORATE
CENTER PHASE ONE, LLC AND SR CORPORATE R PHASE TWO,
FO
WHEREAS, ` California I ` Legislature ` I`! Assembly ! ! •
redevelopment agencies form`! under the Community Redevelopment LI (Health . • Safety
Code sections 33000 ` `! and
WHEREAS, February 2012, ` I Rafael r r a!•ri! • Agency
*r("the
Redevelopment
Agency")
WHEREAS, on January 3, 2012 and pursuant to Health and Safety Code Section 34173,
`Council! . Rafael declared . ` of Rafael,.municipal
corporation, wouldact as the I Rafael Successor Agency "Successor Agency"), as
successor
i a dissolved
d r a! r apa Aency,
effective
• •b . and
wr
WHEREAS, on February 17, 1998 the SanRafaeli approved . Development
Agreement Fair, Isaac I ! Company, ("Fair, Isaac") for the development ! . phased
office park on property located at Second and Lindaro Streets, now known and hereafter referred
to as ` . Rafael Corporate Center;
•• and
WHEREAS, on I 1998, in connectionthe City Council'sapproval of
Development
` • j � a a r . a ! a r ! ! Agency
..a :rd into . Owner
` r..!
.. r
Disposition • ! Development
! ja• •("the
r j providing ! sale ! and
development Fair, Isaacof certain Redevelopment ja real
I ! ! ` . part of I
Rafael
1 f !I • Center; and
REAS y ! actio approval i r
Redevelopment Agency previously made the findings required by section 33433 of the
Community Redevelopment Lf regarding disposition of property by
pursuant ! the OPDDAr !ings"), which findingsare incorporated herein by
referenc•
WHEREAS in 0
AgencyCouncil Resolution No. 12297, and the Redevelopment Agency, as reflected in Redevelopment
Board Resolution No.. .el Corporate Center project,
to the propertiessubjecti the DevelopmentAgreement
entitlements, and obligations of Fair, Isaac under the Development Agreement and the OPDDA
and all amendments to those agreements,! ! and transferred to the
referredcurrent property owner, SR Corporate Center Phase One, LLC and SR Corporate Center Phase
Two, LLC (hereafter collectively to as "SR Corporate").- and
0
WHEREAS, Phase I of the San Rafael Corporate Center is complete, Phase 11 is partially
complete, and SR Corporate is presently in full compliance with the terms of the Development
reement and the OPDDA and all amendments to those agreements; and
+r.
WHEREAS,R Corporate nowto sell the San! ii !te Center and to
assign all its rights, entitlements, and obligations under the Development Agreement and the
OPDDA to BioMarin Pharmaceutical("BioMarin"); and
WHEREAS,i ` of ` OPDDA requires SR Corporatei obtain the ci ` of
the Redevelopment Agency for the transfer of a phase of the property and assignment of the
OPDDA prior to completion of at phase of development; and
WHEREAS, i Agency staff has presented to the Successor Agencyi« i
connection i i . proposed form of i d Agreement to approve and
implement the proposed « i ` property and « :. ` i �, and obligations under `
Development Agreement • and OPDDA by i ii « ` to BioMarin, which Consent. i
AgreementAgency
WHEREAS, because the proposed i and Agreement does it change the
purchase price for the property the Redevelopment Agency conveyed, or increase the costs of the
OPDDA to the Successor Agency, the OPDDA findings remain valid and applicable for the
OPDDA as amended by the Consent and Agreement, and no further findings are required by the
City Council ir Agency in connection with th` Consent and
NOW, THEREFORE,BE RESOLVED `
AgreementGoverning Board of the San Rafael Successor Agency, hereby approves the Consent and
and authorizes the Successor Agency! i execute the Consent• i
Agreement on behalf of ir Agency substantiallyi ` with the Agency
Secretary,. g` as are approved by Agency`Director
the Agency Counsel,i be conclusively evidenced by the execution of i
and Agreement.
L Esther C. Beirne, Secretary of the San Rafael Successor Agency, hereby certify that
the foregoing Resolution ! duly and regularly introduced and adopted at « regular meeting of
followingthe San Rafael Successor Agency, held on Monday, the 16 th day of December, 2013, by the
vote,to
�r
Members:Bushey,iConnoll]
«
I
e-#-* - *"4.t
Esther C. Beime, Secretary
San Rafael Successor Agency