Loading...
HomeMy WebLinkAboutItem 4.11 DUSD School/Park Site STAFF REPORT CITY CLERK File # 600-40 CITY COUNCIL DATE:May 3, 2016 TO: Honorable Mayor and City Councilmembers FROM: Christopher L. Foss, City Manager SUBJECT: 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: Resolution Staff recommends that the City Council adopt the 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. ITEM NO. 4.11 Page 1 of 2 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. rd PASSED, APPROVED AND ADOPTED this 3 day of May, 2016, by the following vote: AYES : NOES : ABSENT : ABSTAIN : ______________________________ Mayor ATTEST : _________________________________ City Clerk ITEM NO. 8.2 Page 1 of 1 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 By:_____________________________ David Haubert, Mayor Date:___________________ DUBLIN UNIFIED SCHOOL DISTRICT By:_____________________________ Dan Cunningham, Board President 2640794.1 2