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2015/11/02 City Council Agenda Packet City of Rohnert Park ♦ 130 Avram Avenue ♦ Rohnert Park, California 94928 PHONE: (707) 588-2227♦ FAX: (707) 794-9248 ♦ WEB: www.rpcity.org ROHNERT PARK CITY COUNCIL SPECIAL MEETING NOTICE AND AGENDA NOTICE IS HEREBY GIVEN THAT A SPECIAL MEETING will be held on Monday, November 2, 2015 Open Session: 4:00 p.m. MEETING LOCATION: CITY HALL - COUNCIL CHAMBER 130 Avram Avenue, Rohnert Park, California The Rohnert Park City Council welcomes your attendance, interest and participation at its regular city meetings scheduled on the second and fourth Tuesdays of each month at 5:00 p.m. in the Council Chamber. City Council/RPFA agendas and minutes may be viewed at the City’s website: www.rpcity.org. PUBLIC HEARINGS: Council/RPFA may discuss and/or take action on any or all of the items listed on this agenda. If you challenge decisions of the City Council or the Rohnert Park Financing Authority of the City of Rohnert Park in court, you may be limited to raising only those issues you or someone else raised at public hearing(s) described in this agenda, or in written correspondence delivered to the City of Rohnert Park at, or prior to the public hearing(s). RIGHT TO APPEAL: Judicial review of any city administrative decision pursuant to Code of Civil Procedure Section 1094.5 may be had only if a petition is filed with the court no later than the deadlines specified in Section 1094.6 of the California Code of Civil Procedure, which generally limits the time within which the decision may be challenged to the 90th day following the date that the decision becomes final. SIMULTANEOUS MEETING COMPENSATION DISCLOSURE (Government Code § 54952.3): Members of the City Council receive no additional compensation as a result of convening this joint meeting of the City Council and the Rohnert Park Financing Authority. PUBLIC COMMENTS: Provides an opportunity for public comment on items not listed on the agenda, or on agenda items if unable to comment at the scheduled time (limited to three minutes per appearance and a 30 minute total time limit, or allocation of time determined by Presiding Officer based on number of speaker cards submitted). PLEASE FILL OUT A SPEAKER CARD PRIOR TO SPEAKING ANNOUNCEMENT: Please turn off all pagers, cellular telephones and all other communication devices upon entering the Council Chamber. Use of these devices causes electrical interference with the sound recording and TV broadcast systems. Mission Statement “We Care for Our Residents by Working Together to Build a Better Community for Today and Tomorrow.” City of Rohnert Park Special Meeting Agenda November 2, 2015 for City Council Page 2 of 3 1. CITY COUNCIL SPECIAL MEETING - CALL TO ORDER/ROLL CALL (Callinan __ Mackenzie__ Stafford __ Belforte __ Ahanotu __) 2. PUBLIC COMMENTS Persons wishing to address the Council on any Closed Session item, Consent Calendar item or on City business not listed on the Agenda may do so at this time. Each speaker will be allotted three minutes. Those wishing to address the Council on any report item listed on the Agenda should submit a “Speaker Card” to the City Clerk before announcement of that agenda item. 3. CLOSED SESSION A. Recess to Closed Session in Council Chamber to Consider: 1. Conference with Real Property Negotiators (Government Code §54956.8) Property: Stadium Lands Lot 1 (APN: 143-040-124) City Negotiator: Darrin Jenkins, City Manager Negotiating Parties: Anthony J. Manos, Corton Partners/Bruce Orr & Associates Under Negotiation: Price and Terms B. Reconvene Joint Regular Meeting Open Session in Council Chamber Report On Closed Session (Government Code § 54957.1) 4. First Amendment to Purchase and Sale Agreement for 5870 Labath Avenue (Stadium Lands) to Extend Buyer’s Due Diligence Period A. Staff Report B. Public Comment C. Council motion/discussion/vote 5. ADJOURNMENT NOTE: Time shown for any particular matter on the agenda is an estimate only. Matters may be considered earlier or later than the time indicated depending on the pace at which the meeting proceeds. If you wish to speak on an item under discussion by the Council which appears on this agenda, after receiving recognition from the Mayor, please walk to the rostrum and state your name and address for the record. Any item raised by a member of the public which is not on the agenda and may require Council action shall be automatically referred to staff for investigation and disposition which may include placing on a future agenda. If the item is deemed to be an emergency or the need to take action arose after posting of the agenda within the meaning of Government Code Section 54954.2(b), Council is entitled to discuss the matter to determine if it is an emergency item under said Government Code and may take action thereon. DISABLED ACCOMMODATION: If you have a disability which requires an interpreter or other person to assist you while attending this City Council meeting, please contact the City Clerk’s Office at (707) 588-2227 at least 72 hours prior to the meeting to ensure arrangements for accommodation by the City. Please notify the City Clerk’s Office as soon as possible if you have a visual impairment requiring meeting materials to be produced in another format (Braille, audio-tape, etc.) City of Rohnert Park Special Meeting Agenda November 2, 2015 for City Council Page 3 of 3 AGENDA REPORTS & DOCUMENTS: Copies of all staff reports and documents subject to disclosure that relate to each item of business referred to on the agenda are available for public inspection at City Hall located at 130 Avram Avenue, during regular business hours, Monday through Friday from 8:00 am to 5:00 pm. Any writings or documents subject to disclosure that are provided to all, or a majority of all, of the members of the City Council regarding any item on this agenda after the agenda has been distributed will also be made available for inspection at City Hall during regular business hours. CERTIFICATION OF POSTING OF AGENDA I, JoAnne Buergler, City Clerk for the City of Rohnert Park, declare that the foregoing agenda for the November 2, 2015, Special Meeting of the Rohnert Park City Council was posted and available for review on October 30, 2015, at Rohnert Park City Hall, 130 Avram Avenue, Rohnert Park, California 94928. The agenda is also available on the City web site at www.rpcity.org, Executed this 30th day of October, 2015 at Rohnert Park, California. ___________________________________________ JoAnne M. Buergler, City Clerk ITEM NO. 4 1 Meeting Date: November 2, 2015 Department: Administration Submitted By: Don Schwartz, Assistant City Manager Prepared By: Don Schwartz, Assistant City Manager Agenda Title: Consider First Amendment to Purchase and Sales Agreement for 5870 Labath to Extend Buyer’s Due Diligence Period RECOMMENDED ACTION: Approve by motion First Amendment to Agreement for Purchase and Sale (Including Joint Escrow Instructions) and Terms of Development for 5870 Labath Avenue (the “First Amendment”) extending deadline for completion of Buyer’s due diligence. BACKGROUND: On August 11, 2015 the City Council approved a purchase and sales agreement and terms of development for the City property at 5860 Labath Avenue, commonly known as Stadium Lands, to 356 Advisors and MJW Investments. The agreement provides for the development of a minimum 125 room upscale or higher quality hotel, along with commercial and/or office uses. The agreement includes a 90 day due diligence period for the buyer to consider features of the property, issues related to title, and other factors including the physical, legal, economic and environmental aspects of the property. The buyer has made an initial $50,000 good faith deposit, and is required to make a second good faith deposit of $100,000 at the end of the due diligence period. These deposits are generally non-refundable after the due diligence period expires on November 9, 2015. The buyer has requested an extension of 30 days for further analysis of the property, until December 9, 2015. ANALYSIS: Staff recommends approving the First Amendment and extending the due diligence period to allow for further analysis of the property. The buyer has met all other requirements of the agreement. OPTIONS CONSIDERED: The City could refuse to extend the due diligence period, which creates the potential for the buyer to terminate the agreement. FISCAL IMPACT/FUNDING SOURCE: There is no direct impact from extending the due diligence deadline. Refusal to do so could lead to termination of the purchase and sales Mission Statement “We Care for Our Residents by Working Together to Build a Better Community for Today and Tomorrow.” CITY OF ROHNERT PARK CITY COUNCIL AGENDA REPORT ITEM NO. 4 2 agreement and loss of associated revenue, both from the sale of the property and tax revenue from the proposed development. Department Head Approval Date: City Manager Approval Date: October 29, 2015 City Attorney Approval Date: October 30, 2015 Attachments (list in packet assembly order): 1. First Amendment to Agreement for Purchase and Sale (Including Joint Escrow Instructions) and Terms of Development C:\Users\Murphy-K\Desktop\10222015_First Amendment to Purchase and Sale.doc 1 FIRST AMENDMENT TO AGREEMENT FOR PURCHASE AND SALE (INCLUDING JOINT ESCROW INSTRUCTIONS) AND TERMS OF DEVELOPMENT This First Amendment to Agreement for Purchase and Sale (Including Joint Escrow Instructions) and Terms of Development (“First Amendment”), dated as of November 2, 2015, (“Effective Date”), is between the CITY OF ROHNERT PARK, a California municipal corporation (“Seller” or “City”), and 356 ADVISORS, INC., a California corporation, and MJW INVESTMENTS, LLC, a California limited liability corporation (each a “Buyer Party” and collectively, “Buyer”). R E C I T A L S A. Seller and Buyer entered into that certain Agreement for Purchase and Sale (Including Joint Escrow Instructions) and Terms of Development (the “Agreement”) with respect to Buyer’s purchase and development of that certain real property consisting of 12.25 acres and located at Labath Avenue and Carlson Avenue in the City of Rohnert Park (the “Property”). Terms not otherwise defined herein shall have the meaning set forth in the Agreement. B. The Agreement defines the Due Diligence Period as 90 calendar days from the Effective Date. C. Seller and Buyer desire to extend the Due Diligence Period for an additional 30 calendar days to allow Buyer additional time for further analysis. D. The City Council of the City of Rohnert Park duly authorized the execution of this First Amendment by motion on November 2, 2015. A G R E E M E N T 1. The Due Diligence Period defined in Section 3.4 of the Agreement is hereby extended for an additional 30 calendar days, for a total Due Diligence Period of 120 calendar days from the Effective Date. 2. Except as hereby amended by this First Amendment, the Agreement remains in full force and effect. [SIGNATURES ON FOLLOWING PAGE] C:\Users\Murphy-K\Desktop\10222015_First Amendment to Purchase and Sale.doc 2 IN WITNESS WHEREOF, the parties hereto have executed this First Amendment as of the Effective Date. SELLER: City of Rohnert Park Dated: _______________, 2015 By: Amy O. Ahanotu, Mayor ATTEST: By: APPROVED AS TO FORM: By: Michelle Marchetta Kenyon, City Attorney BUYER: 356 ADVISORS, INC., a California Corporation Dated: _______________, 2015 By: Name: Bruce Orr Its: President MJW INVESTMENTS, LLC, a California limited liability corporation Dated: _______________, 2015 By: Name: Matthew J. Waken Its: Managing Member