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HomeMy WebLinkAbout6.1 SB343 The Green Mixed Use Project 4/21/15 SB 343 Senate Bill 343 mandates supplemental materials that have been received by the City Clerk's office that relate to an agenda item after the agenda packets have been distributed to the City Council be available to the public. The attached documents were received in the City Clerk's office after distribution of the April 21, 2015 City Council meeting agenda packet. Item 6.1 STOCKBRIDGE April 17,2015 Stephen Hanke,Ed.D. Dublin Unified School District 7471 Larkdale Avenue Dublin,CA 94568 Re: Follow Up Regarding Contribution to Dublin Unified School District Dear Dr. Hanke; On behalf of Stockbridge/BHV Emerald Place Land Company,LLC("Stockbridge/BHV"), the project sponsor of the proposed mixed-use development project located at Hacienda Drive and Martinelli Way in Dublin known as The Green(the"The Green"), I write to follow up on the letter dated April 13,2015 we sent you in which we volunteered to pay additional monies to the Dublin Unified School District("DUSD")to support the district's efforts to build new schools to meet student demand(the"The Green Proposal"). A copy of the The Green Proposal is attached for your convenience and reference. In response to certain concerns raised by the DUSD,this letter is intended to modify certain aspects of the The Green Proposal, in the hope that the DUSD finds these further protections for the DUSD acceptable. As you know,in the The Green Proposal, Stockbridge/BHV volunteered to pay additional monies in excess of the Green Project School Fees to support the school district's construction projects intended to meet projected student demand. The Green Proposal offered to pay to the district the shortfall, if(as expected) the State did not make up any shortfall,between the actual school fees paid by the project and the projected costs of construction on a per student basis. Our calculations were based on certain assumptions provided by the DUSD's projections. First,we wish to underscore that our schedule of projected student demand was based on the district's high end of potential student generation by product type estimates,rather than the medium student generation estimates you suggested in your letter July,2014. Second,we estimated a per student cost of construction based on what we understood was the DUSD projected total costs of constructing a new school of approximately$46,000,000. We understand that the DUSD wishes to modify The Green proposal to increase the benefits offered to the DUSD in several ways,two of which are acceptable to us. First,we understand that the DUSD wishes Stockbridge/BHV to pay the additional monies set forth in the The Green Proposal,even if the State does provide the monies and there is no shortfall. While this is request is inconsistent with representations to us that DSUD is not attempting to profit from this arrangement,we will agree to this request. Please consider this letter to evidence Stockbridge/BHV's agreement to that request. 4 Embarcadero Center, Suite 3300, San Francisco, CA 94111 PHONE 415.658.3300 FAx415.658.3400 SAN FRANCISCO • CHICAGO • NEW YORK • ATIANiA Second,the DUSD informed us that the$46,000,000 does not include furniture, fixtures and equipment("FF &E")and that including those additional costs would result in a total construction cost with FF&E of approximately$48,000,000,The DUSD would like the per student calculation to be based on that higher total cost number. I write to confirm that Stockbridge/BHV agrees to the DUSD's request to calculate the per student contribution using the higher($48,000,000) and will commit to paying$51,000 per student generated by The Green. The Green Proposal suggested that the terms of this offer to pay the additional monies might be incorporated by the Dublin City Council as an additional condition of approval of the Green Project,but we understand that such an approach may be unacceptable under the state Mitigation Fee Act,and therefore withdraw that suggestion. However,we will make the City Council aware of The Green Proposal at the April 21,2015 hearing on the Green Project, We hope this is acceptable to the DUSD. We are pleased to join with the DUSD in showing leadership in securing complete funding for the projected student demand at the Green Project, and to providing the additional funding even if the complete funding is provided by the State. Please do not hesitate to call me if you have questions or comments. Sincerely, STOCKBRIDGE FUND II/EMERALD PLACE INVESTMENT COMPANY, LLC, STOCKBRIDGE PLACE INVESTMENT COMPANY,LLC, STOCKBRIDGE FUND E/EMERALD PLACE INVESTMENT COMPANY, LLC,each a Delaware limited liability company and a"Stockbridge Member" By: STOCKBRIDGE REAL ESTATE PARTNERS II,LLC,a Delaware limited liability company,manager of each of the foregoing By: ti Renaudin Managing Director 101910470,2 STOCKBRIDGE CAPITAL GROUP April 13,2015 Stephen Henke,Ed.D. Dublin Unified School District 7471 Larkdale Avenue Dublin,CA 94568 Re: Contribution to Dublin Unified School District Dear Dr.Hanke: On behalf of Stockbridge/BHV Emerald Place Land Company, LLC ("Stockbridge/BHV"), the project sponsor of the proposed mixed-use development project located at Hacienda Drive and Martinelli Way in Dublin known as the "Green" (the"Green Project"), I write to memorialize our agreement to pay to the Dublin Unified School District ("DUSD") certain monies to support the district's efforts to build new schools to meet student demand, as described below. If the proposal contained in this letter is acceptable to the DUSD, we would agree, upon the request of the DUSD of the Dublin City Council, to incorporate this agreement as an additional condition of approval of the Green Project in order to ensure its enforceability. As you know, Stockbridge/BHV is currently seeking approval of the Green Project. In connection with the development of the Green, Stockbridge/BHV, or its successor or assignee, will pay certain school fees to the DUSD, in accordance with the proposed conditions of approval of the Green Project (the "Green Project School Fees"). However, StockbridgeBHV wishes to volunteer to pay additional monies in excess of the Green Project School Fees to support the school district's construction projects intended to projected meet student demand. We understand that all development projects in Dublin pay fees to the DUSD set at what is commonly known as "Level II". We also understand that Level II does not cover the full cost of constructing a new school as measured on a projected per student basis because the expectation is that state sources will provide the remaining amounts. Although the school district fees are calculated and paid based on the square footage of new development,we also understand the DUSD calculations of the cost per projected student of new school development show that covering the full cost would require an amount equal to $50,000 per student. Our proposal is intended to address the shortfall, if any, of the then applicable and 4 Embarcadero Center, Suite 3300, San Francisco, CA 94111 PHONE 415.658.3300 FAX 415.658.3400 SAN FRANCISCO • CHICAGO • NEW YORK • ATIANIA Stephen Hanke April 13,2015 Page 2 imposed school fee structure (e.g. Level II or otherwise) and the DUSD's estimated$50,000 per student cost. The DUSD projections of student demand vary based on unit type and size. A schedule of the DUSD current student demand projections by product type as applied to the anticipated type and unit mix of the Green Project is attached to this letter as Exhibit A (the "Student Projection Schedule"). Stockbridge/BHV proposes to pay an amount equal to $50,000 per projected student based on the number and type of units developed and sold at the Green Project, as calculated in accordance with the Student Projection Schedule, in the following manner: If,at the time(s)the Green School Project Fees are paid,the State has not provided the funds necessary to close the shortfall, then Stockbridge/BHV shall provide to the DUSD a calculation of(i) the number of square feet which are the subject of the applicable building permit (the "Green Square Footage") and (ii) the projected number of students associated with the type and number of units permitted by the applicable building permit, using the Student Projection Schedule (the"Green Student Projection"). Stockbridge/BHV shall pay to the DUSD an amount equal to $50,000 times the Green Student Projection MINUS all amounts paid pursuant to the Green Project School Fees,based on the Green Square Footage. Such amounts shall be paid on a one time basis for each unit developed at the Green Project within thirty(30)days of the payment of the applicable Green School Project Fees. We are pleased to join with the DUSD in showing leadership in securing complete funding for the projected student demand at the Green Project. Please do not hesitate to call me if you have questions or comments. Sincerely, STOCKBRIDGE FUND II/EMERALD PLACE INVESTMENT COMPANY,LLC, STOCKBRIDGE PLACE INVESTMENT COMPANY,LLC,STOCKBRIDGE FUND E/EMERALD PLACE INVESTMENT COMPANY,LLC,each a Delaware limited liability company and a"Stockbridge Member" Stephen Henke April 13,2015 Page 3 By:STOCKBRIDGE REAL ESTATE PARTNERS II,LLC,a Delaware limited liability company,manager of each of the foregoing By, Charlene Kiley Managing Director 101910470.2 STOCKBRIDGE CAPITAL GROUP April 13, 2015 Stephen Hanke,Ed.D. Dublin Unified School District 7471 Larkdale Avenue Dublin, CA 94568 Re: Contribution to Dublin Unified School District Dear Dr.Hanke: On behalf of StockbridgeBHV Emerald Place Land Company, LLC ("Stockbridge/BHV"), the project sponsor of the proposed mixed-use development project located at Hacienda Drive and Martinelli Way in Dublin known as the "Green" (the "Green Project"), I write to memorialize our agreement to pay to the Dublin Unified School District ("DUSD") certain monies to support the district's efforts to build new schools to meet student demand, as described below. If the proposal contained in this letter is acceptable to the DUSD, we would agree, upon the request of the DUSD of the Dublin City Council, to incorporate this agreement as an additional condition of approval of the Green Project in order to ensure its enforceability. As you know, Stockbridge/BHV is currently seeking approval of the Green Project. In connection with the development of the Green, Stockbridge/BHV, or its successor or assignee, will pay certain school fees to the DUSD, in accordance with the proposed conditions of approval of the Green Project (the "Green Project School Fees"). However, Stockbridge/BHV wishes to volunteer to pay additional monies in excess of the Green Project School Fees to support the school district's construction projects intended to projected meet student demand. We understand that all development projects in Dublin pay fees to the DUSD set at what is commonly known as "Level II". We also understand that Level II does not cover the full cost of constructing a new school as measured on a projected per student basis because the expectation is that state sources will provide the remaining amounts. Although the school district fees are calculated and paid based on the square footage of new development,we also understand the DUSD calculations of the cost per projected student of new school development show that covering the full cost would require an amount equal to $50,000 per student. Our proposal is intended to address the shortfall, if any, of the then applicable and 4 Embarcadero Center, Suite 3300, San Francisco, CA 94111 PHONE 415.658,3300 FAX 415.658.3400 SAN FRANCISCO • CHICAGO • NEW YORK • ATLANTA Stephen Hanke April 13,2015 Page 2 imposed school fee structure (e.g. Level II or otherwise) and the DUSD's estimated $50,000 per student cost. The DUSD projections of student demand vary based on unit type and size. A schedule of the DUSD current student demand projections by product type as applied to the anticipated type and unit mix of the Green Project is attached to this letter as Exhibit A (the "Student Projection Schedule"). StockbridgeBHV proposes to pay an amount equal to $50,000 per projected student based on the number and type of units developed and sold at the Green Project, as calculated in accordance with the Student Projection Schedule, in the following manner: If, at the time(s)the Green School Project Fees are paid,the State has not provided the funds necessary to close the shortfall, then Stockbridge/BHV shall provide to the DUSD a calculation of(i) the number of square feet which are the subject of the applicable building permit (the "Green Square Footage") and (ii) the projected number of students associated with the type and number of units permitted by the applicable building permit, using the Student Projection Schedule (the "Green Student Projection"). StockbridgeBHV shall pay to the DUSD an amount equal to $50,000 times the Green Student Projection MINUS all amounts paid pursuant to the Green Project School Fees,based on the Green Square Footage. Such amounts shall be paid on a one time basis for each unit developed at the Green Project within thirty(30)days of the payment of the applicable Green School Project Fees. We are pleased to join with the DUSD in showing leadership in securing complete funding for the projected student demand at the Green Project, Please do not hesitate to call me if you have questions or comments. Sincerely, STOCKBRIDGE FUND I/EMERALD PLACE INVESTMENT COMPANY,LLC, STOCKBRIDGE PLACE INVESTMENT COMPANY, LLC, STOCKBRIDGE FUND E/EMERALD PLACE INVESTMENT COMPANY,LLC, each a Delaware limited liability company and a"Stockbridge Member" Stephen Hanke April 13,2015 Page 3 By: STOCKBRIDGE REAL ESTATE PARTNERS II,LLC, a Delaware limited liability company,manager of each of the foregoing By:C Charlene Kiley U Managing Director 1019104702