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HomeMy WebLinkAbout4.10 Second Amendment to the Community Benefit Program Agreement for the Cambria Hotel ProjectSTAFF REPORT CITY COUNCIL Page 1 of 2 Agenda Item 4.10 DATE:July 20, 2021 TO:Honorable Mayor and City Councilmembers FROM:Linda Smith, City Manager SUBJECT:Second Amendment to the Community Benefit Program Agreement for the Cambria Hotel Project Prepared by: Hazel L. Wetherford, Economic Development Director EXECUTIVE SUMMARY: The City Council will consider approving a Second Amendment to the Community Benefit Program Agreement with VP-RPG Dublin, LLC for the Cambria Hotel Project 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. The Amendment includes language that allows the Developer to design, construct and install the Downtown Monument Sign prior to the Project submitting for building permit and to seek reimbursement for the work. STAFF RECOMMENDATION: Adopt the Resolution Approving a Second Amendment to the City of Dublin Community Benefit Program Agreement between the City of Dublin and VP-RPG Dublin, LLC. FINANCIAL IMPACT: As approved in the 2020-2025 Five-Year Capital Improvement Program (CIP), City Entrance Monument Signs Project (ST0319), the total budget for the Downtown Monument (Gateway) Sign is $200,000, which is the maximum amount the City will reimburse the Developer for the design, construction and installation of the Downtown Monument Sign. DESCRIPTION: On June 2, 2020, the City Council adopted Resolution No. 50-20 (Attachment 3) approving a Community Benefit Program Agreement between the City of Dublin and VP-RPG Dublin, LLC for the Cambria Hotel that includes a 90,700-square-foot, 138-room, four-story hotel on approximately 76,000-square-foot parcel located at 7944-7950 Dublin Boulevard. The Community Benefit Program Agreement outlined what the Developer would contribute to the City in exchange for the allocation of additional square footage from the development pool. As 191 Page 2 of 2 discussed in the June 2, 2020 Staff Report, those community benefits have been outlined in the form of employment, Transient Occupancy Taxes (TOT), streetscape improvements, and a new Downtown monument sign. On November 17, 2020, the City Council adopted Resolution No. 118-20 (Attachment 4) approving a First Amendment to the City of Dublin Community Benefit Program Agreement between the City of Dublin and VP-RPG Dublin, LLC for the Cambria Hotel. The First Amendment included a term extension and clarified language on the security deposit timing. Due to the construction work underway at 7944 Dublin Blvd. (former Hooter’s restaurant building) to remodel the existing building to establish a drive-thru, 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. The City is in agreement with receiving the community benefit of the sign prior to the Developer submitting for a building permit of the Cambria Hotel project, and will reimburse the Developer for actual expenses related to the design, construction and installation not to exceed the estimated amount of $200,000. This will ensure that if the Cambria Hotel project were not to move forward, the City will receive and own the improvements for the Downtown monument sign. 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. The refund will be required no later than the City’s issuance of approval for the first utility meter for the Cambria Hotel project. STRATEGIC PLAN INITIATIVE: None. NOTICING REQUIREMENTS/PUBLIC OUTREACH: The City Council Agenda was posted, and a copy of this Staff Report has been sent to VP-RPG Dublin, LLC. ATTACHMENTS: 1) Resolution Approving the Second Amendment to the Community Benefit Program Agreement Between the City of Dublin and VP-RPG Dublin, LLC 2) Exhibit A to Resolution – Second Amendment to City of Dublin Community Benefit Program Agreement 3) Resolution No. 50-20 Approving the Original Community Benefit Program Agreement 4) Resolution No. 118-20 Approving the First Amendment to the Community Benefit Program Agreement 192 Attachment 1 Reso. No. XX-21, Item X.X, Adopted 7/20/21 Page 1 of 2 RESOLUTION NO. XX – 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 underway 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 project, 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 City of Dublin Community Benefit Program 193 Reso. No. XX-21, Item X.X, Adopted XX/XX/21 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: NOES: ABSENT: ABSTAIN: ______________________________ Mayor ATTEST: _________________________________ City Clerk 194 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: Attachment 2 Exhibit A to Resolution 195 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. 196 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 3792856.1 197 Attachment 3 198 199 200 201 202 203 204 205 206 Attachment 4 207 208 209 210 STAFF REPORT CITY COUNCIL Page 1 of 2 Agenda Item 4.11 DATE:July 20,2021 TO:Honorable Mayor and City Councilmembers FROM:Linda Smith, City Manager SUBJECT:City Proclamations for the Month of August Prepared by: Cierra Fabrigas, Executive Aide EXECUTIVE SUMMARY: The City Council will consider the following proclamations for the month of August in the City of Dublin: National Night Out and American Muslim Appreciation and Awareness Month. STAFF RECOMMENDATION: Approve the proclamations. FINANCIAL IMPACT: None. DESCRIPTION: The City Council will consider the following proclamations for the month of August: 1. National Night Out National Night Out occurs annually on the first Tuesday in August and is an annual community-building campaign that promotes police-community partnerships and neighborhood camaraderie to make our neighborhoods safer, more caring places to live in. The City of Dublin will be hosting the 38th Annual National Night Out on Thursday, August 3 and invites members of the community to join in the community crime prevention efforts. 2. American Muslim Appreciation and Awareness Month American Muslim Appreciation and Awareness month honors generations of Muslim Americans and their many social, cultural, and economic contributions to our City, the state of California, and across the country. 211 Page 2 of 2 STRATEGIC PLAN INITIATIVE: None. NOTICING REQUIREMENTS/PUBLIC OUTREACH: The City Council Agenda was posted. ATTACHMENTS: 1) National Night Out 2) American Muslim Appreciation and Awareness Month 212 Attachment 1 A PROCLAMATION OF THE CITY COUNCIL CITY OF DUBLIN, CALIFORNIA “National Night Out” WHEREAS, National Night Out was introduced by the National Association of Town Watch (NATW) in 1984 and began as a concept for generating greater crime prevention involvement among residents; and WHEREAS, what started with residents simply leaving their porch lights on soon progressed to something bigger: neighbors organizing cookouts, parades, contests, neighborhood walks, festivals, rallies, and community service events; and WHEREAS, today, more than 35 million people and over 15,000 communities participate in National Night Out; and WHEREAS, last year, due to COVID-19, Dublin Police Services hosted a virtual National Night Out; and WHEREAS, this year, National Night Out will be celebrated on Tuesday, August 3 in the City of Dublin; and WHEREAS, the “38 th Annual National Night Out” gives the citizens of the City of Dublin a great chance to be part of a nationwide effort to promote police and community crime prevention efforts. NOW, THEREFORE, BE IT RESOLVED that the Dublin City Council does hereby proclaim August 3, 2021 as “National Night Out” in the City of Dublin and encourages all citizens to participate in this community event. DATED: July 6, 2021 Mayor Melissa Hernandez Vice Mayor Shawn Kumagai Councilmember Sherry Hu Councilmember Jean Josey Councilmember Michael McCorriston 213 Attachment 2 A PROCLAMATION OF THE CITY COUNCIL CITY OF DUBLIN, CALIFORNIA “American Muslim Appreciation and Awareness Month” WHEREAS, Freedom of religion holds distinction as a cherished right and a fundamental value upon which the law and ethics of the United States are based; and WHEREAS, the City of Dublin takes great pride in supporting individual religious freedoms and is strengthened by contributions of its diverse population, including those Americans who practice Islam; and WHEREAS,the earliest Muslim immigrants mostly worked on farms and made significant contributions to early agricultural efforts and approximately one million Muslim Americans currently reside in communities throughout California, the highest number in the United States; and WHEREAS,the citizens of the City of Dublin benefit from Muslim religious, charitable, educational and empowerment organizations that operate within the City; and WHEREAS, members of the Dublin Muslim community have been strong advocates for equity and inclusion at the municipal and state levels of education and social programs that support all Dubliners; and WHEREAS, it is appropriate to promote awareness of the many contributions of American Muslims in Dublin and across the nation and extend to them the respect every American deserves. NOW, THEREFORE, BE IT RESOLVED that the Dublin City Council does hereby proclaim August 2021 as “American Muslim Appreciation and Awareness Month” in the City of Dublin and encourages all citizens to celebrate the rich history and contributions of the American Muslim community. DATED: July 20, 2021 Mayor Melissa Hernandez Vice Mayor Shawn Kumagai Councilmember Sherry Hu Councilmember Jean Josey Councilmember Michael McCorriston 214