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HomeMy WebLinkAbout4.11 DUSD School/Park Siteor 19 82 /ii � 111 DATE: May 3, 2016 TO: FROM: SUBJECT STAFF REPORT CITY COUNCIL Honorable Mayor and City Councilmembers CITY CLERK File # 600 -40 Christopher L. Foss, City Manager " Amendment to Memorandum of Understanding (MOU) between the City of Dublin and the Dublin Unified School District (DUSD) for 12 -Acre School /Park Site with the Dublin Crossing Project Prepared by Linda Smith, Assistant City Manager EXECUTIVE SUMMARY: The City Council will consider an amendment to the Memorandum of Understanding (MOU) between the City of Dublin and Dublin Unified School District regarding a 12 -acre school /park site within the Dublin Crossing project, extending the term from May 15, 2016 to December 31, 2018. FINANCIAL IMPACT: No financial impact associated with the execution of the MOU. RECOMMENDATION: Staff recommends that the City Council adopt the Resolution Approving the Amendment to the Memorandum of Understanding between the City of Dublin and the Dublin Unified School District. DESCRIPTION: On May 19, 2015, the City Council approved the Memorandum of Understanding between the City and DUSD related to the delivery of a 12 -acre school site within the Dublin Crossing project for a future joint use school /park site facility. The term of the MOU was for 360 days. The MOU sets 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 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. Page 1 of 2 ITEM NO. 4.11 Over the last year, City and District staff has been working primarily on the Jordan Ranch School /Park site to formalize the Ground Lease Option for the future Ground Lease Agreement. The Ground Lease Option agreement was approved by the City Council on March 1, 2016. Additionally, during this period, two things occurred. First, the delivery of the future school site to the City by the Developer was pushed one year from 2017 to 2018. This change is related to the phasing and project timing and means that the City does not have any site control for the next two years. Second, DUSD has indicated through its list of priorities and in discussions with City staff, that the Dublin Crossing site is several years away from implementation, even with the local and state bond measures. Given these new conditions, City staff is recommending that the current MOU be extended until such time that the City has site control in 2018 and the District has future funding sources for the future school /park site further defined. NOTICING REQUIREMENTS /PUBLIC OUTREACH: None. ATTACHMENTS: 1. Resolution Approving an Amendment to the Memorandum of Understanding between the City of Dublin and the Dublin Unified School District, with Amendment to Memorandum of Understanding as Exhibit A to the Resolution 2. Memorandum of Understanding between the City of Dublin and Dublin Unified School District for the Dublin Crossing School Site Page 2 of 2 RESOLUTION NO. XX - 16 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN * * * * * * * * * ** APPROVING AN AMENDMENT TO THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF DUBLIN AND THE DUBLIN UNIFIED SCHOOL DISTRICT WHEREAS, on May 19, 2015, the City Council approved the Memorandum of Understanding (MOU) between the City and Dublin Unified School District (DUSD) related to the delivery of a 12- acre school site within the Dublin Crossing project for a future joint use school /park site facility; and WHEREAS, the term of the MOU was for 360 days; and WHEREAS, the MOU sets out the general terms under which the agreements will be negotiated between the City and DUSD; and WHEREAS, the Developer has notified the City that the delivery of the school site will occur in 2018, not 2017 as previously stated; and WHEREAS, the City has been notified by DUSD that the Dublin Crossing site is several years away from implementation; and WHEREAS, given these new conditions, Staff recommends that the current MOU be extended until December 31, 2018 until such time that the City has site control and the District has future funding sources for the future school /park site further defined. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby approve an amendment to the Memorandum of Understanding Between the City of Dublin and the Dublin Unified School District, as shown as Exhibit A. PASSED, APPROVED AND ADOPTED this 3rd day of May, 2016, by the following vote- AYES- NOES- ABSENT- ABSTAIN- ATTEST- City Clerk Mayor Page 1 of 1 ITEM NO. 8.2 FIRST AMENDMENT TO MEMORANDUM OF UNDERSTANDING (Dublin Crossing School Site /Site E -6) This First Amendment to Memorandum of Understanding ( "First Amendment ") dated May 3, 2016 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 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, Developer and City entered into that certain "Amendment No. 1 to Development Agreement Between the City of Dublin and Dublin Crossing Venture LLC" in order to amend the terms of the Agreement to reflect the changes to the entitlements, remove the requirements to construction funding for the 5 -acre Neighborhood Park, and to reduce the total Community Benefit Payment, as well as to include language related to the no -cost transfer of the Dublin Crossing School Site; and WHEREAS, the City and DUSD have had preliminary discussions regarding the lease of the Dublin Crossing School Site by the City to DUSD; and WHEREAS, the Parties entered into a memorandum of understanding (the "MOU ") on May 19, 2015 ( "Effective Date ") 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, the MOU is set to expire 360 days after the Effective Date; and WHEREAS, the Parties anticipate that they will need more time before reaching more definitive agreements with respect to the matters set forth therein, and therefore desire to extend the term of the MOU until the end of the year 2018. NOW THEREFORE, the Parties hereby agree as follows: Section 1. Extension of Term. Section 7 of the MOU is amended to read in its entirely as follows: "The provisions of this MOU shall expire on December 31, 2018. This MOU may be terminated at any time by mutual consent of the Parties." Section 2. Except as specifically clarified, confirmed or modified herein, the MOU shall continue in full force and effect according to its terms. CITY OF DUBLIN David Haubert, Mayor Date: DUBLIN UNIFIED SCHOOL DISTRICT Dan Cunningham, Board President 2640794.1 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. Pu ose 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. 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: 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 Department of Education and DUSD Board approval of the use of the Dublin Crossing School Site as a school site. 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. 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. b. 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 MDU creates a binding obligation. Each Party expressly acknowledges and agrees that this MDU creates no obligation on the part of any Party. Further, the Parties expressly acknowledge and agree that this MDU does not commit the City to any planning, zoning or other City approvals needed to implement 3 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. Section 5. Counterpart s. 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, r By: N4 Da id Haubert, Mayor Date: W 15� DUBLIN UNIFIED SCHOOL DISTRICT, By: Amy it er, o d President Date: d l5 2440188.6 4