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Home My WebLink AboutReso 91-21 Approving a Second Amendment to the City of Dublin Community Benefit Program Agreement between the City of Dublin and VP-RPG Dublin, LLC Reso. No. 91-21, Item 4.10, Adopted 07/20/2021 Page 1 of 2 RESOLUTION NO. 91 - 21 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN APPROVING A SECOND AMENDMENT TO 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 Blvd.; and WHEREAS, in exchange of 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, on November 17, 2020, the City Council adopted Resolution No. 118-20 approving a First Amendment to the Community Benefit Program Agreement between the City of Dublin and VP-RPG Dublin, LLC for the Cambria Hotel project; and WHEREAS, due to the severe negative impacts of the COVID-19 (Coronavirus) pandemic, including but not limited to impacts on the hotel industry development and financing , the First Amendment included a term extension and clean up language as it relates to the security deposit timing; and WHEREAS, due to the construction work underwa y at 7944 Dublin Blvd. to remodel the existing building, the Developer desires to design, construct and install the Downtown monument sign ahead of pulling building permits for the Cambria Hotel project to ensure that the sign is in place prior to new tenants moving into the remodeled building at 7944 Dublin Blvd.; and WHEREAS, the City agrees to receive the community benefit of the monument sign prior to the Developer submitting for a building permit of the Cambria Hotel projec t, and will reimburse the Developer for actual expenses related to the design, construction and installation not to exceed the estimated amount of $200,000; and WHEREAS, this Amendment ensures that if the Cambria Hotel project were not to move forward, the City will receive and own the improvements for the Downtown monument sign; and WHEREAS, if the Cambria Hotel project does move forward, then the Developer will be responsible for refunding the City for the actual reimbursement amount made to them , and the refund will be required no later than the City’s issuance of approval for the first utility meter for the Cambria Hotel project. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby approve the Second Amendment to the Cit y of Dublin Community Benefit Program Reso. No. 91-21, Item 4.10, Adopted 07/20/2021 Page 2 of 2 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 Manager is authorized to execute the Agreement and make any necessary, non-substantive changes to carry out the intent of this Resolution. PASSED, APPROVED AND ADOPTED this 20th day of July 2021, by the following vote: AYES: Councilmembers Hu, Josey, Kumagai, McCorriston and Mayor Hernandez NOES: ABSENT: ABSTAIN: _________________________ Mayor ATTEST: __________________________ City Clerk Second Amendment to Community Benefit Program Agreement Page 1 of 3 7944-7950 Dublin Boulevard SECOND AMENDMENT TO CITY OF DUBLIN COMMUNITY BENEFIT PROGRAM AGREEMENT VP-RPG Dublin, LLC, 7944-7950 Dublin Boulevard This Second Amendment to the Community Benefit Program Agreement (“Agreement”) is entered into on this day 20th of July, 2021, 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 experienced unexpected alterations to their operations and project timelines. Due to this unforeseen setback, the Developer and City entered into a First Amendment to that certain Community Benefit Agreement, dated November 17, 2020 (“First Amendment”), in which the City amended the term of the agreement and language related to the security deposit. E.With the unforeseen setback on the timing of the hotel development, Developer and City desire to pursue 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. prior to the development of the hotel project. 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 Section 3, Community Benefit to Be Provided by Developer. Subsection 3.3 Downtown Dublin Monument Sign. of the Agreement is hereby amended to read as follows: Second Amendment to Community Benefit Program Agreement Page 2 of 3 7944-7950 Dublin Boulevard “Downtown Dublin Monument Sign. Lastly, in addition to the Developer’s contribution of a 138-room hotel, the creation of full-time jobs, transient occupancy tax, and streetscape improvements, Developer shall design, construct and install a new Downtown Dublin monument sign similar to what is shown in Exhibit A, to be located on the corner of San Ramon Road and Dublin Boulevard. The sign will be located on the Developer’s property located at 7944 Dublin Blvd. (APN: 941-1500-036-02). The Developer shall provide the Community Benefit to the City no later than the time of issuance of the first building permit for the Project. In no event shall the City be required to issue a building permit unless the Community Benefit has been provided to the City. 3.3.1 In the event, the Developer elects to design, construct and install the Downtown Monument Sign prior to the Project’s submittal of a building permit, the Developer shall be reimbursed for actual expenses related to the design, construction and installation of the Downtown Monument Sign not to exceed the estimated amount of $200,000, subject to the following conditions: a. Developer shall comply with the Prevailing Wage Law (Labor Code § 1720 et seq.) for the Downtown Monument Sign; b. Developer and the City have executed a Long-Term Encroachment Agreement (also referred to as a Maintenance Agreement) in a form satisfactory to the City Attorney; c. Developer has issued a Grant Deed or similar instrument for an easement to the City for the portion of Developer’s property where the Downtown Monument Sign is located; and d. The City has accepted ownership of the Downtown Monument Sign and the property described in 3.3.1(c) above. 3.3.2 In the event the Developer later submits for building permit for the Project, Developer shall reimburse the City for the actual reimbursement amount made pursuant to Section 3.3.1, no later than the City’s issuance of approval for the first utility meter for the Project. Section 2. 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 3. Defined Terms. Defined terms have the same meaning in this Amendment as in the Agreement unless otherwise specified. Section 4. 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. Second Amendment to Community Benefit Program Agreement Page 3 of 3 7944-7950 Dublin Boulevard 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 3792856.1