DATE: September 29, 2020
TO: Mayor and City Council
FROM: Deputy City Manager
SUBJECT
Title
Subaru Disposition and Development Agreement: Adopt a Resolution: (1) Approving the Government Code Section 52201 Summary Report for the Project ; and (2) Authorizing the City Manager to Negotiate and Execute a Disposition and Development Agreement with BMODDRE2, LLC for Transfer of Specified City Owned Properties and for the Development of a New Automobile Subaru Dealership
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RECOMMENDATION
Recommendation
That Council holds a public hearing and adopts a Resolution (Attachment II): (1) approving the Government Code Section 52201 Summary Report for the project (Attachment III); and (2) authorizing the City Manager to negotiate and execute a Disposition and Development Agreement (DDA) with BMODDRE2, LLC (Developer) for the transfer of specified properties and for the development of a new automobile Subaru dealership.
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SUMMARY
City staff recommends entering into a DDA with the Developer that contemplates the following actions:
1. Disposition from the City to Developer for a purchase price of $5,421,000 of a 4.9-acre parcel to be transferred for the development of an auto dealership (Dealership Development Parcel), and a 5.2-acre parcel to be restricted for affordable housing purposes (Adjacent Parcel);
2. Restriction of the Adjacent Parcel as future affordable housing development;
3. Retention by Developer of the Dealership Development Parcel for the construction of a new auto dealership operating under the Subaru Brand;
4. Transfer of the restricted Adjacent Parcel to the City from the Developer in exchange for a 2.1-acre City owned site located at the northeast corner of Mission Boulevard and Carlos Bee Boulevard (Swap Parcel); and
5. Development of the Dealership Development Parcel is estimated to generate between $330,000 to $500,000 annually in new sales tax to the City to help pay for City servi...
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