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HomeMy WebLinkAboutItem 8.3 Dublin Crossing School Site Project or 19 82 STAFF REPORT CITY CLERK ` CITY COUNCIL File #600-40 DATE: May 19, 2015 TO: Honorable Mayor and City Councilmembers FROM: Christopher L. Foss, City Manager " SUBJECT: Memorandum of Understanding between the City and the ublin Unified School District for the Dublin Crossing Project School Site Prepared by Linda Smith, Assistant City Manager EXECUTIVE SUMMARY: The City Council will consider a Memorandum of Understanding (MOU) between the City of Dublin and the Dublin Unified School District (DUSD) to provide a 12-acre school site to the District, at minimal cost, within the Dublin Crossing project, while maintaining the ability of the public to use the site for parks and recreational programs and services. FINANCIAL IMPACT: No financial impact associated with the execution of the MOU. RECOMMENDATION: Staff recommends that the City Council adopt the Resolution Approving the Memorandum of Understanding between the City of Dublin and the Dublin Unified School District. DESCRIPTION: On March 17, 2015, the City Council initiated General Plan and Specific Plan amendments to the Dublin Crossing project in order to provide a 12-acre school site for use by the Dublin Unified School District. The City Council will take formal action on the land use and development agreement amendments at a noticed public hearing scheduled for the June 2, 2015 City Council meeting. This is the second of two actions to assist the DUSD with the acquisition of school sites in response to a lack of expected state funding to fund new school construction. The first action was a City Council adopted Memorandum of Understanding with the District on the City's Community Park site within the Jordan Ranch project. The study to change the Park to a School/Park site is currently underway and is expected to conclude this summer. The purpose of this proposed MOU is intended to set out, in general terms, the agreements to be negotiated between the City and DUSD on the following: Page 1 of 2 ITEM NO. 8.3 1. A long-term, as-is, ground lease whereby DUSD will lease the School Site from the City for a nominal sum to allow for construction of a school and joint use facilities; 2. Construction of school and joint use facilities on the leased land by DUSD; 3. Option for the DUSD to purchase site from the City using fair market value methodology; and 4. A desire for a minimum of 5 acres of future school site to include joint use facilities suitable for use as a park and for recreational programs and services. A draft Resolution approving the MOU is attached to this Staff Report for City Council consideration (Attachment 1). NOTICING REQUIREMENTS/PUBLIC OUTREACH: A copy of this Staff Report was send to the Dublin Unified School District. ATTACHMENTS: 1. Resolution Approving a Memorandum of Understanding between the City and the Dublin Unified School District Page 2 of 2 RESOLUTION NO. XX- 15 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN APPROVING A MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF DUBLIN AND THE DUBLIN UNIFIED SCHOOL DISTRICT WHEREAS, the City Council was asked to consider a Memorandum of Understanding (MOU) between the City of Dublin and the Dublin Unified School District (DUSD) to help DUSD obtain the rights to a site to build a school, at minimal cost, while maintaining the ability of the public to use the site for parks and recreation programs and services; and WHEREAS, the purpose of the MOU is intended to set out in general terms the agreements to be negotiated between the City and DUSD on the following- 1. A long-term, as-is, ground lease whereby DUSD will lease the School Site within the Dublin Crossing project from the City for a nominal sum to allow for construction of a school and joint use facilities; 2. Construction of school and joint use facilities on the leased land by DUSD; 3. Option for the DUSD to purchase site from the City using fair market value methodology; and 4. A minimum of 5 acres of future school site to include joint use facilities suitable for use as a park and for recreational programs and services; and WHEREAS, to facilitate the transaction contemplated by the MOU, the City Council directed Staff on March 17, 2015 to initiate a General Plan and Eastern Dublin Specific Plan Amendment Study for the Dublin Crossing project, and other required entitlements, for the City to acquire approximately 12 acres of property currently designated as School for both school and park purposes; and NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby approve the Memorandum of Understanding (MOU), attached hereto as Exhibit A, between the City of Dublin and the Dublin Unified School District (DUSD) to help DUSD obtain the rights to a site to build a school, at minimal cost, while maintaining the ability of the public to use the site for parks and recreation programs and services. PASSED, APPROVED AND ADOPTED this 19th day of May 2015 by the following vote: AYES: NOES: ABSENT: ABSTAIN: Mayor ATTEST: City Clerk MEMORANDUM OF UNDERSTANDING (Dublin Crossing School Site/Site E-6) This Memorandum of Understanding ("MOU") dated May 19, 2015, is entered into by and between the City of Dublin (the "City") and the Dublin Unified School District ("DUSD"). The City and DUSD are each individually referred to as a"Party" and collectively referred to as the "Parties." RECITALS WHEREAS, Dublin Crossing Venture LLC ( "Developer") and the City entered into that certain"Development Agreement Between the City of Dublin and Dublin Crossing Venture LLC," dated November 19, 2013 and recorded in the Official Records of Alameda County ("Official Records") on June 4, 2014 as document number 2014134795 (the "Agreement"); and WHEREAS,Developer's original entitlements allowed for the construction of up to 1,995 single- and multi-family residential units; up to 200,000 square feet of retail, office, and/or commercial uses;a 30 acre Community Park;a 5-acre Neighborhood Park,and a 12-acre elementary school site; and WHEREAS, DUSD stated it was unlikely that it would have the ability to acquire the 12- acre elementary school site in the near term, given the current land value of approximately $36,000,000; and WHEREAS, Developer and City reached an agreement allowing the transfer of the future school site (the "Dublin Crossing School Site") to the City at no cost in exchange for certain modifications to the entitlements for the Dublin Crossing Project; and WHEREAS, the City and DUSD have had preliminary discussions regarding the lease of the Dublin Crossing School Site by the City to DUSD. The Dublin Crossing School Site is shown in Exhibit A to this MOU; and WHEREAS, DUSD is interested in this proposal because it does not have sufficient funds at this time to purchase the Dublin Crossing School Site; and WHEREAS, the City is interested in this proposal in order to help DUSD obtain rights to a site to build a school in the Dublin Crossing Project area, while at the same time maintaining the ability of the public to use the site for recreational, performing arts, and park purposes; and WHEREAS, the City recently acknowledged the adverse effect caused by the lack of State bond funding for new school facilities, and joined DUSD in calling upon state legislators and the Governor to act to assist DUSD in mitigating the impact of new development, by adoption of City Council Resolution No. 175-14 on October 21, 2014; and WHEREAS, the Parties are interested in working together in good faith to take steps needed to effectuate this proposal; and WHEREAS, the Parties now wish to enter into a memorandum of understanding to bring clarity to their joint commitment and to set out in general terms the various roles each Party will play and actions needed to be taken to effectuate the proposal; and WHEREAS, this MOU is not intended to be binding on the Parties. It shall serve only to guide the Parties in reaching subsequent and more definitive agreements, if any (the "Definitive Agreements"), with respect to the matters set forth herein. NOW THEREFORE, the Parties hereby agree as follows: Section 1. Purpose of this MOU. This MOU is intended as an expression of a preliminary basis for negotiations in an effort to reach Definitive Agreements on the City's lease of the Dublin Crossing School Site to DUSD for use as a school site. Section 2. Good Faith Efforts to Negotiate. The Parties shall use their best reasonable efforts to successfully negotiate one or more definitive agreements that will describe the terms and conditions for executing and implementing the intent of this MOU. The Parties shall diligently and in good faith pursue such negotiations. Furthermore, the Parties shall use their best reasonable efforts to obtain any third-party consent, authorization, approval, and exemptions required in connection with the transactions contemplated hereby, including but not limited to negotiations with Developer. This MOU does not impose any binding obligation on the Parties to grant any approvals or authorizations, nor does it obligate the Parties to agree to any specific terms or obligations in future definitive agreements. Section 3. Terms. The negotiations hereunder shall be based on the following general principles and responsibilities: A. Upon completion of the following contingencies, City and DUSD will execute an agreement ("Lease Agreement") whereby City leases to DUSD the Dublin Crossing School Site for a nominal sum, equal to $1 per year, subject to further negotiation. 1. City will process and consider applications for any planning, zoning and other City approvals, including any associated CEQA review, in accordance with all legal requirements and standards, to allow the development of a school and joint use facilities on the Dublin Crossing School Site. 2. The City's obligation to take those actions set forth above is contingent upon DUSD providing City with written confirmation from the DUSD Board of sources and availability of adequate financing, as well as project schedule, to construct the school, including joint use facilities. B. The Lease Agreement will require the following: 1. A lease term of 50-plus years subject to further negotiation. 2. Prior to construction of the school and joint use facilities, DUSD will provide City with written confirmation demonstrating California 2 Department of Education and DUSD Board approval of the use of the Dublin Crossing School Site as a school site. 3. DUSD will construct the school and joint use facilities (described below) on the Dublin Crossing School Site. 4. DUSD shall consult City on design matters during the school facilities design process to ensure that the facilities being proposed meet the needs of both DUSD and the City. City and DUSD will collaborate to create a list of school and park facilities that will be developed and available for joint use between City and DUSD upon completion of the school facilities design. At a minimum, the joint use facilities shall incorporate the following: a. The multi-purpose room, blacktop areas, and all or a portion of the field areas ("Joint Use Facilities") will be made available to the City for use at no extra cost. b. The parties shall use their best efforts to ensure that the Joint Use Facilities together make up at least five (5) acres of the Dublin Crossing School Site. C. The parties shall use their best efforts to ensure that the portion of the field areas included in the Joint Use Facilities make up at least three (3) acres of the Dublin Crossing School Site, in order to accommodate park needs after school hours. d. DUSD shall maintain the field areas to a standard agreeable to the City, which standard may exceed the existing maintenance standards of DUSD. Maintenance standards will be further defined in the Lease Agreement, such as frequency of mowing, aeration, watering, and fertilization. 5. DUSD will be granted an option to purchase the Dublin Crossing School Site at a future date, with the purchase price calculated using a fair market methodology. 6. Those terms relating to the City's joint use of the Dublin Crossing School Site will remain in effect should DUSD later exercise its option to purchase the site from the City. Section 4. No Obligation to Proceed. Nothing in this MOU creates a binding obligation. Each Party expressly acknowledges and agrees that this MOU creates no obligation on the part of any Party. Further, the Parties expressly acknowledge and agree that this MOU does not commit the City to any planning, zoning or other City approvals needed to implement the intent of this agreement and all such City actions will be subject to the further discretionary action by the City in compliance with all applicable legal requirements. 3 Section 5. Counterparts. This MOU may be executed in multiple counterparts, each of which shall be an original and all of which together shall constitute one instrument. Section 6. Execution of Definitive Agreements. If the Parties successfully negotiate one or several Definitive Agreements, staff of the Parties shall recommend approval of said Definitive Agreements to their respective governing bodies. No Party shall have any legal obligation to grant any approvals or authorizations until a Definitive Agreement has been approved by their respective governing bodies. Section 7. Term. The provisions of this MOU shall expire 360 days from the effective date of this MOU. This MOU may be terminated at any time by mutual consent of the Parties. IN WITNESS WHEREOF, the Parties have executed this Memorandum of Understanding, effective as of the date first written above. CITY OF DUBLIN By: David Haubert, Mayor Date: DUBLIN UNIFIED SCHOOL DISTRICT By: Amy Miller, Board President 2440188.6 4