HomeMy WebLinkAboutReso 30-20 Approving the First Amendment to City of Dublin Community Benefit AgreementReso No. 30-20, Item 4.7, Adopted 04/21/20 Page 1 of 2
RESOLUTION NO. 30 - 20
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
* * * * * * * * *
APPROVING A FIRST AMENDMENT TO THE CITY OF DUBLIN COMMUNITY BENEFIT
PROGRAM AGREEMENT BETWEEN THE CITY OF DUBLIN AND CRYSTAL BAY
DEVELOPMENT LLC
WHEREAS, on May 1, 2018, the City Council adopted Resolution No. 41-18 approving a
Community Benefit Agreement between the City of Dublin and Bayview Development Group
and an Alternate Method of Compliance with the Inclusionary Zoning Regulations for the St.
Patrick Way Residential Project; and
WHEREAS, Bayview Development Group has proposed the construction of a market rate
apartment project in Downtown Dublin at 6700 Golden Gate Drive; and
WHEREAS, the project consists of 499 apartments as well as 1,500 square feet of
commercial space; and
WHEREAS, in exchange of pulling 499 units from the residential development pool and
1,500 square feet from the commercial development pool, Bayview w ill contribute community
benefits in the form of off-site dedications, funding and improvements; and
WHEREAS, Bayview has acquired and shall dedicate to the City a 1.3-acre site at 6541
Regional Street as a community benefit; and
WHEREAS, Bayview will provide street improvements and enhancements (estimated at
$200,000) along the new segment of St. Patrick Way so that the street can function as a usable
event and festival space for Downtown activation; and
WHEREAS, Bayview will dedicate approximately .28 acres of a parcel north of the
property to complete the right of way improvements for the extension of St. Patrick Way; and
WHEREAS, Bayview will include 1,500 square feet of commercial space within the
building for use as co-workspace to assist small businesses, telecommuters and entrepreneurs
for a period of at least five years; and
WHEREAS, since the improvement and dedication of St. Patrick Way must be completed
as a condition of the residential project, the developer has requested an extension to the term of
the agreement for an additional year to June 13, 2021; and
WHEREAS, in addition to the one-year extension, clean up language has also been
added as it relates to the transfer of the adjacent property located at 6541 Regional Street; and
WHEREAS, Bayview Development Group desires to assign the Community Benefit
Program Agreement to Crystal Bay Development LLC, a subsidiary to Bayview Development
Group.
DocuSign Envelope ID: 299E7757-5D30-419E-8B76-498E01221F5B
Reso No. 30-20, Item 4.7, Adopted 04/21/20 Page 2 of 2
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does
hereby approve the First Amendment to City of Dublin Community Benefit Program Agreement
between Crystal Bay Development LLC and the City of Dublin as attached as Exhibit A to this
Resolution.
BE IT FURTHER RESOLVED that the City Council authorizes the City Manager to
execute the Agreement and gives the City Manager authority to execute any mino r amendments
to the Agreement, as needed, to carry out the intent of this Resol ution.
PASSED, APPROVED AND ADOPTED this 21st day of April 2020 by the following vote:
AYES: Councilmembers Goel, Hernandez, Josey, Kumagai and Mayor Haubert
NOES:
ABSENT:
ABSTAIN:
___________________________________
Mayor
ATTEST:
_______________________________________
City Clerk
DocuSign Envelope ID: 299E7757-5D30-419E-8B76-498E01221F5B
–1–
FIRST AMENDMENT TO
CITY OF DUBLIN COMMUNITY BENEFIT PROGRAM AGREEMENT
Crystal Bay Development, LLC, 6700 Golden Gate Drive Project
This First Amendment to the Community Benefit Program Agreement
(“Amendment”) is entered into on this day 21st of April, 2020, by and between the City
of Dublin, a municipal corporation (“City”) and Crystal Bay Development LLC, a
California limited liability company (“Developer”). City and Developer are, from time-to-
time, individually referred to in this Agreement as a “Party,” and are collectively referred
to as “Parties.”
RECITALS
A. Developer is pursuing a mixed-use project that includes 499 residential
units (the “Project”) on an 8.53-acre property referred to as 6700 Golden Gate Drive
(the “Property”).
B. Developer and City are parties to that certain Community Benefit Program
Agreement, dated June 13, 2018 (“the Agreement”), in which the City, pursuant to its
Downtown Dublin Specific Plan (“the Specific Plan”), granted Developer (as assignee of
Bayview Development LLC) the right to develop residential units in exchange for
providing the City certain community benefits.
C. The community benefits of the Project include the improvement and
dedication of St. Patrick Way along the northern boundary of the Property, including on
property owned by the adjacent property owner (“the Off-Site Property”).
D. Developer despite diligent efforts was unable to acquire the Off-Site
Property voluntarily, and the City is in the midst of acquiring it pursuant to its eminent
domain power.
E. Since the improvement and dedication of St. Patrick Way must be
completed as a condition of the Project, the parties agree that the period of time
required to acquire the Off-Site Property necessitates an extension in the term of the
Agreement.
F. In addition, the Parties desire to make certain other changes to conform
the Agreement to changes in law.
NOW, THEREFORE, with reference to the foregoing recitals and in consideration
of the mutual promises, obligations and covenants herein contained, City and Developer
agree as follows:
AGREEMENT
Section 1. Amendment to Subsection 2.2, Term. Subsection 2.2 of the
Agreement is hereby amended to read as follows:
–2–
“Term.
The term of this Agreement shall commence on the Effective Date and
shall extend until the earlier of the following: 1) the Developer satisfied all of the
obligations set forth in Section 3 of this Agreement, 2) any of the Project
Approvals expires, or 3) 3 years after the Effective Date plus any extensions
granted pursuant Section 4.2 of this Agreement.”
Section 2. Amendment to Subsection 3.1, Transfer of Adjacent Property.
Subsection 3.1 of the Agreement is hereby amended to read as follows:
“Transfer of the Adjacent Property
Developer shall provide the following Community Benefit to the City: the
Developer will, for no more than a “Nominal Price,” transfer ownership of the
Adjacent Property to the City or to such third party as the City may direct (the
“Community Benefit”). The Developer shall provide the Community Benefit no
later than the earlier of:
(i) the date of closing (the “Property Transfer Date”) on the transfer
of the Property from Developer to AvalonBay Communities, Inc. or an
entity controlled by it (the “Property Transfer”), in which case, as part of
the same escrow as the Property Transfer on the Property Transfer Date:
(a) Developer shall (1) assign the Agreement to AvalonBay
Communities, Inc. or an entity controlled by it (“Assignee”), which
potential assignment the City hereby prospectively approves
notwithstanding anything to the contrary in Section 8, and (2)
convey the Adjacent Property to the City or to such third party as
the City may direct; and
(b) The City shall deposit $5,000,000 into the escrow (the
“Escrow Deposit”) pursuant to an escrow agreement that is
reasonably satisfactory to Developer, Assignee, and City, which
shall provide that the Escrow Deposit, less the Nominal Price, shall
be released to the City upon issuance of the first building permit for
the Project; provided that, in the event that this Agreement expires
or is terminated prior to issuance of the first building permit for the
Project, then upon such expiration or termination the Escrow
Deposit shall be released to Developer.
or
(ii) the time of issuance of the first building permit for the Project.
–3–
In no event shall Developer be obligated to provide the Community Benefit
to the City or to such third party as the City may direct unless the Property
Transfer has occurred, provided that the City shall not be required to issue a
building permit for the Project unless the Community Benefit has been provided
to the City or to such third party as the City may direct. For the purposes of this
Agreement, a “Nominal Price” shall be any sales price that is $1,000 or less (not
including, and not limiting, the purchaser’s share of escrow fees, title insurance
costs, transfer taxes, prorated taxes and assessments and other customary
closing costs).
Section 3. Amendment to Subsection 4.2, Term of Residential Allocations.
Subsection 4.2 of the Agreement is hereby amended to read as follows:
“Term of Residential Allocations.
Once granted, the “Residential Allocations” provided by the Community
Benefit provisions of this Agreement shall extend until three years from the
Effective Date (“the Residential Allocation Term”). The City Manager may, for
good cause, extend the Residential Allocation Term twice for periods of six
months each, provided the Developer has at the time of such extension applied
for a building permit. It is acknowledged that Developer shall not have a right to
the Residential Allocations until such time as it has transferred the Adjacent
Property in accordance with Section 3.1. Notwithstanding the foregoing, if a
building permit for any structure has been issued by City, and if the construction
of any structure related to residential uses has been commenced on the Property
within said Residential Allocation Term or any extension period or periods, then
the Residential Allocations for the development on the particular parcel for which
the permit was issued shall be extended for the life of the building permit and any
extensions thereto. This Section 4.2 shall survive termination of the Agreement.”
Section 4. Life of Site Development Review Approval. The Project includes site
development review approval, which the City Council approved by Resolution No. 40–
18 on May 1, 2018. Dublin Municipal Code section 8.96.020.D provides that
construction pursuant to a site development review approval must commence within
one year of approval or the approval becomes null and void. The section further defines
commencement to mean either actual construction or “demonstrating substantial
progress toward commencing such construction. . . .” Under the unique circumstances
here involving the acquisition of the Off-Site Property, the City Council hereby finds that
Developer demonstrated “substantial progress toward commencing” construction of the
Project within one year of the site development approval for the Project and thereafter
has and will continue to do so throughout the term of the Agreement.
Section 5. Full Force and Effect. Except as specifically clarified, confirmed or
modified herein, the Agreement shall continue in full force and effect according to its
terms.
–4–
Section 6. Defined Terms. Defined terms have the same meaning in this
Amendment as in the Agreement unless otherwise specified.
Section 7. Memorandum. At the request of either party to the Agreement, the
parties shall execute and record a memorandum of the Agreement in the public records
of the County where the Property is located. Upon the expiration or earlier termination
of this Agreement, the parties shall execute and record a release of such memorandum.
IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
executed as of the date and year first above written.
CITY OF DUBLIN
By: __________________________
Linda Smith, City Manager
Attest:
________________________
Caroline P. Soto, City Clerk
Approved as to form
________________________
John D. Bakker, City Attorney
DEVELOPER
Crystal Bay Development LLC
__________________________
By:
Its:
3455641.6