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Home My WebLink AboutReso 118-20 APPROVING A FIRST AMENDMENT TO THE CITY OF DUBLIN COMMUNITY BENEFIT PROGRAM AGREEMENT BETWEEN THE CITY OF DUBLIN AND VP-RPG DUBLIN, LLCReso No. 118-20, Item 4.10, Adopted 11/17/2020 Page 1 of 2 RESOLUTION NO. 118 - 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 VP-RPG DUBLIN, LLC WHEREAS, on June 2, 2020, the City Council adopted Resolution No. 50-20 approving a Community Benefit Program Agreement between the City of Dublin and VP-RPG Dublin, LLC for the Cambria Hotel project; and WHEREAS, VP-RPG Dublin, LLC has proposed the construction of a Cambria Hotel that includes a 90,700-square-foot, 138-room, four-story hotel on an approximately 76,000-square- foot parcel located at 7944-7950 Dublin Boulevard; and WHEREAS, in exchange for pulling 52,573 square feet of commercial square footage from the commercial development pool, VP-RPG Dublin, LLC will contribute community benefits in the form of employment, Transient Occupancy Taxes (TOT), streetscape improvements, and a new Downtown monument sign; and WHEREAS, due to the severe negative impacts of the COVID-19 pandemic, including but not limited to impacts on the hotel industry development and financing, the Developer has experienced unexpected alterations to their operations and project timelines; and WHEREAS, the Developer is requesting an extension to the term of the agreement for an additional year to June 2, 2023 plus the option of an additional one-year extension for good cause at the discretion of the City Manager to June 2, 2024; and WHEREAS, the current Community Benefit Program Agreement is set to expire on June 2, 2022; and WHEREAS, in addition to term extension, language has been added as it relates to the security deposit to clarify that the deposit is due prior to issuance of the building permit for the hotel project. 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 VP-RPG Dublin, 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 minor amendments to the agreement, as needed, to carry out the intent of this Resolution. PASSED, APPROVED AND ADOPTED this 17th day of November 2020 by the following vote: Reso No. 118-20, Item 4.10, Adopted 11/17/2020 Page 2 of 2 AYES: Councilmembers Goel, Hernandez, Josey, Kumagai and Mayor Haubert NOES: ABSENT: ABSTAIN: ______________________________ Mayor ATTEST: ______________________________ City Clerk FIRST AMENDMENT TO CITY OF DUBLIN COMMUNITY BENEFIT PROGRAM AGREEMENT VP‐RPG Dublin, LLC, 7944‐7950 Dublin Boulevard This First Amendment to the Community Benefit Program Agreement (“Agreement”) is entered into on this day 17th of November, 2020, by and between the City of Dublin, a municipal corporation (“City”) and VP‐ RPG Dublin, 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 90,700 square foot, 138‐room, four‐story hotel (the “Project”) on approximately a 76,000 square foot parcel referred to as 7944‐7950 Dublin Boulevard (the “Property”). B. Developer and City are Parties to that certain Community Benefit Program Agreement, dated June 2, 2020 (“the Agreement”), in which the City, pursuant to its Downtown Dublin Specific Plan (“the Specific Plan”), granted Developer excess development capacity in the form of 52,573 square feet of commercial square footage to enable development of the Project in exchange for providing the City certain community benefits. C. The community benefits of the Project include transient occupancy tax revenue, enhanced streetscape for the drive aisle off of Dublin Blvd., and the design, construction and installation of a new Downtown Dublin monument sign to be located on the corner of San Ramon Rd. and Dublin Blvd. D. Due to the severe negative impacts of the COVID‐19 (Coronavirus) pandemic, including but not limited to impacts on hotel industry development and financing, the Developer has experienced unexpected alterations to their operations and project timelines. 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: “Term. The term of this Agreement shall commence on the Effective Date and shall extend until the earlier of the following: 1) the Developer has provided the Community Benefit to the City as provided in Section 3 of this Agreement, 2) any of the Project Approvals expires, or 3) three years after the Effective Date if no building permit has been issued for the Project plus the option of an additional one‐year extension for good cause at the discretion of the City Manager.” Section 2. Amendment to Section 4, Security Deposit. of the Agreement is hereby amended to read as follows: “Security Deposit. Prior to issuance of the building permit of the Project, Developer shall furnish City a corporate surety bond issued by a company duly and legally licensed to conduct a general surety business in the State of California, or an instrument of credit equivalent to $200,000. Said security is intended to secure the provision by the Developer of the Community Benefit described in Section 3 of this Agreement. If Developer fails to provide the Community Benefit during the term of this Agreement, the deposit shall be forfeit, and City shall have no obligation to return it to Developer. However, City shall return the entire deposit if this Agreement expires without any development of the Project by the Developer or if the Developer elects in writing to abandon its rights under the Project Approvals and this Agreement at any time prior to the expiration of the Agreement, in which case the Agreement shall automatically terminate.” Section 3. Life of Site Development Review Approval. The Project includes site development review approval, which the City Council approved by Resolution No. 49‐20 on June 2, 2020. 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 COVID‐19 pandemic, 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 4. 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. Section 5. Defined Terms. Defined terms have the same meaning in this Amendment as in the Agreement unless otherwise specified. Section 6. Memorandum. At the request of both Parties 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 Agreement to be executed as of the date and year first above written. CITY OF DUBLIN By: ______________________________ Linda Smith, City Manager Attest: _________________________________ Marsha Moore, City Clerk Approved as to form __________________________________ John D. Bakker, City Attorney VP‐RPG DUBLIN, LLC, a California limited liability company By: Delaware Retail Control, LLC, a Delaware limited liability company Its: Manager By: VPI 2004, Inc., a California corporation Its: Manager By: ___________________________ Name: John Glikbarg Title: Vice President 3620651.1