Successor Agency to approve compensation agreement for Google Diridon parcels
Staff rec is to approve a Compensation Agreement by and among the Successor Agency to the Redevelopment Agency of the City of San Jose, the City of San Jose, the County of Santa Clara and other affected taxing entities under Health and Safety Code Section 34180 for real property including 8 South Montgomery Street, 105 South Montgomery Street, 150 South Montgomery Street, 510 West San Fernando Street/102 South Montgomery Street, and 645 Park Avenue.
These are the properties that Google has been in negotiations to buy as part of its planned Diridon area campus. Commencing on January 1, 2018, and ending thirty days after the Effective Date or December 31, 2018, whichever is later, the City shall use good faith efforts to select a developer, negotiate a sale of the property, and sell the property to the Developer. In addition, at the City’s request, the Developer Disposition Period may be extended up to March 1, 2019, with the approval of the Oversight Board.
The Purchase Price for the Properties shall not be less than $67,000,000.
The Compensation Agreement was approved by the County Board of Supervisors on February 6, 2018, and by the City Council and Successor Agency Board on February 13, 2018. Upon approval by the Oversight Board, the Compensation Agreement will be circulated to the other affected taxing entities for execution. A list of the other twelve taxing entities is provided below:
- Franklin-Mckinley Elementary School District
- Oak Grove Elementary School District
- Orchard Elementary School District
- San Jose Unified School District
- Santa Clara Unified School District
- Eastside High School District
- West Valley Community College
- San Jose City Community College
- Santa Clara Office of Education
- Bay Area Air Quality
- Guadalupe-Coyote Resource Conservation District
- Santa Clara Valley Water District
Where: Oversight Board of the Successor Agency to the Redevelopment Agency of San Jose
When: Feb. 22, 2018, 10 am
Link to item: http://sanjose.granicus.com/MetaViewer.php?meta_id=738661
Link to agenda: http://www.sanjoseca.gov/DocumentCenter/View/75113
Approving marketing strategies & timelines to sell RDA-owned Jose theater and South Hall sites
On Jan. 18, 2018, the Board requested that Successor Agency staff provide a marketing strategy for the sale of two Successor Agency properties: The Jose Theatre and the South Hall Site. The Jose Theatre is located at 62 South Second Street and is leased to the Improv Comedy Club.
The South Hall site is comprised of 20 parcels totaling 4.4 acres. The parcels were acquired between 1999 and 2001 for the future expansion of the San Jose Convention Center. The Property currently contains a tent structure and public parking lot that are part of the Convention Center facilities and is maintained and operated by Team San Jose.
Both of the properties are encumbered with Deeds of Trust as security for a United States Department of Housing and Urban Development (“HUD”) Section 108 loan and, as part of any sale, HUD must release its Deeds of Trust. Successor Agency and City staff are in the process of scheduling a meeting with HUD’s Community Planning and Development Division staff regarding land sale sequencing and payoff options. The Successor Agency current obligation to HUD is approximately $20 million (original loan amount for two Section 108 loans was $31 million).
Jose Theatre: Successor Agency staff will solicit the property no later than March 23, 2018. There will be a standard 60 day bid period and bids will be received no later than May 21, 2018. Escrow will close by the end of June 2018.
South Hall: Successor Agency staff has prepared two options for discussion by the Oversight Board. For both options staff recommends a six-month solicitation period with close of escrow within 90 days after the bid period ends.
Option 1
- Staff markets the entire site, with appropriate marketing material, at the current General Plan and Zoning PQP designations.
Option 2
- Initiate a General Plan and Zoning Change from PQP to Downtown for the 1/3 of the property adjacent to Market Street for hotel/mixed use development.
- Approve a direct sale of the remaining 2/3 of the Property to the City at an appraised value based on the current PQP General Plan and Zoning designations for Convention Center expansion.
Where: Oversight Board of the Successor Agency to the Redevelopment Agency of San Jose
When: Feb. 22, 2018, 10 am
Link to item: http://sanjose.granicus.com/MetaViewer.php?meta_id=738663
Link to agenda: http://www.sanjoseca.gov/DocumentCenter/View/75113
Update on remaining activities to sell off former RDA properties and dissolve the Successor Agency
As the second largest former redevelopment agency in the State, the work efforts to “wind-down” the affairs of the San Jose Successor Agency have been significant. Fortunately, after six years, many of the activities have been completed, including the refunding of all outstanding debt and sale of most of the Successor Agency’s assets.
This memo highlights all remaining activities necessary to complete the dissolution of the Successor Agency. Absent any unforeseen events nearly all the remaining work elements (not related to debt management activities, financial reporting and monitoring of agreement covenants) identified in this memorandum should be completed by the end of Fiscal Year 2018- 2019. The memorandum is divided into two sections: “Work Elements to be Completed by the End of FY 2018-19” and “Ongoing Work Elements Through 2035”.
Table 1, the Disposition of Successor Agency Properties, lists all remaining real property owned by the Successor Agency. There are three categories of property disposition remaining:
- Property Sales pursuant to the North San Pedro Disposition and Development Agreements (“DDAs”)
- Properties to be Sold, either through the direct sale or solicitation (bid) process 3. Properties to be Transferred Pursuant to Compensation Agreements
In the Properties to be Sold category, Successor Agency staff intends to sell the participation interest in the Sheraton Hotel (formerly Montgomery Hotel) through a solicitation process. However, the owner of the Hotel has not provided certified financials as required under the Agreement with the Successor Agency. Successor Agency staff has given the Sheraton ownership until February 23, 2018, to hire a Certified Public Accountant and, until March 23, 2018, to provide the certified financials to the Successor Agency for calendar years 2014-2017. If the ownership of the Hotel fail to meet either deadline, Successor Agency and legal staff would initiate action to enforce the terms of the Agreement and to require the Hotel ownership to provide the relevant information necessary for a more successful solicitation.
Where: Oversight Board of the Successor Agency to the Redevelopment Agency of San Jose
When: Feb. 22, 2018, 10 am
Link to item: http://sanjose.granicus.com/MetaViewer.php?meta_id=738669
Link to agenda: http://www.sanjoseca.gov/DocumentCenter/View/75113
Providing Air Service Support Program, including fee waivers & subsidies, to new air carrier service
Staff request:
(a) Conduct a Public Hearing pursuant to California Government Code Section 53083 regarding application of the City’s Air Service Support Program, as authorized by the Federal Aviation Administration to Southwest, Frontier Airlines, and Delta Air Lines.
(b) Adopt a resolution authorizing the Director of Aviation or the Director’s designee to provide the City’s Air Service Support Program to new air carrier service (specific Southwest, Frontier and Delta services)
The Airport support program is envisioned to help airlines offset high initial risks and costs to start new service by waiving landing fees and/or providing marketing support where applicable. Making the support program available to these airlines will help them during the most difficult time of the new service launches from San Jose to their respective destinations. The result will be a higher tolerance for initial route startup risks by airlines, while increasing chances to gain long term maturity and associated profitability. The long-term success of these important new routes will benefit the Airport as well as the City by increasing revenues for both entities and providing additional travel options for our community.
Memo including details on carriers and routes: http://sanjose.legistar.com/gateway.aspx?M=F&ID=8687ab22-75eb-4616-9597-ae1457f1a53a.pdf
Where: San Jose City Council
When: Tuesday 27 February 2018, Council Chambers, 1.30PM
Link to item: http://sanjose.legistar.com/gateway.aspx?m=l&id=/matter.aspx?key=2768
Link to agenda: https://sanjose.legistar.com/View.ashx?M=A&ID=585982&GUID=86FE4290-B75F-41B4-945A-1824A8E27F42
City of Palo Alto
Direction on a new Council Policy to address transparency and public input in labor negotiations
Council Members DuBois, Filseth, Scharff, and Tanaka are asking the Council to support a new Council Policy to address transparency and labor negotiations. Currently, staff wages, benefits, and pension decisions are reached though private negotiations, without meaningful opportunity for public examination. The memo notes that the goal of the policy is appropriate transparency: to provide timely and meaningful fiscal and actuarial information about labor negotiations to the public, while protecting the fairness and integrity of the bargaining process.
In Palo Alto, as in the majority of California cities, unless otherwise agreed to by the City and the bargaining unit, collective bargaining negotiation sessions under state law — the Meyers-Milias-Brown Act (MMBA) — are confidential. While Council is briefed and gives direction in closed sessions, virtually no information becomes available to the public until a tentative Memorandum of Agreement (MOA) has been negotiated between the City and the bargaining unit and is presented to the Council for final approval, by which time public review and comment are essentially irrelevant to the outcome of the process.
The memo notes that these outcomes, such as those affecting the City’s unfunded liabilities (pension and retiree medical), are public concerns which will be borne by the community for decades, and merit meaningful public review. A handful of California cities have also adopted practices providing for greater fiscal and actuarial transparency during the bargaining period, without fundamentally transforming the negotiation process. This Council Policy proposal borrows relevant elements from the City of San Jose’s existing Council Policy 0-39 (2008)1, along with one or two ideas from the City of Fullerton’s Council Resolution 2016-41 (2016)2.
Proposal:
- This Policy is meant to apply to contract negotiations between the City and a Bargaining Unit during the time from the first negotiating session to approval of an MOA. It is not intended to cover a range of other circumstances such as administrative or judicial dispute resolution processes. [San Jose Policy]
- The City shall prepare a baseline fiscal summary of the costs and liabilities associated with the bargaining unit; this summary will be posted on the City’s website for public review together with the agenda for the first Council closed session with the City’s labor negotiators. The fiscal data should normally be collated from other existing city documents. [Public Information]
- Formal written proposals made or received by City negotiators shall be posted for public review on the City’s website within two days after transmittal to the other party’s designated negotiators. [San Jose Policy]
- Public posting of written proposals made by the City shall be accompanied by a fiscal analysis, including impact on the unfunded actuarial liability (UAL) for pension and “other post-employment benefits” (OPEB) associated with the bargaining unit. [Fullerton Policy]
- The City shall also post on the City’s website a fiscal analysis of any MOA proposed for adoption by Council; and in the event of an impasse, of both parties’ last best and final offers.
- Council may authorize and direct City negotiators in open or closed session. If done in closed session, the closed session discussions themselves are to remain confidential. [San Jose Policy]
Next steps are for the Finance Committee to refine the policy, develop the fiscal and actuarial analysis template; and to appropriate time to confer discussions with the city’s bargaining groups regarding this proposed Policy.
Where: City of Palo Alto
When: February 26, 2018(Special Meeting)/ 5:10p.m./ Council Chambers
Link to item: https://www.cityofpaloalto.org/civicax/filebank/documents/63517
Link to agenda: https://www.cityofpaloalto.org/civicax/filebank/documents/63512
Discuss and consider the formation of a Housing Issues Task Force
In response to the situation in the Sunnyhills neighborhood (last year), the County of Santa Clara recommended that the City of Milpitas consider the potential adoption of a Just Cause Eviction Ordinance and Rent Subsidy Discrimination Ordinance similar to the County’s current ordinances. A Just Cause Eviction Ordinance would specify the types of factual circumstances that would allow for a property owner to evict a current tenant. A Rent Subsidy Discrimination Ordinance would have the effect of requiring property owners to not discriminate against a potential tenant based on income, including any potential Section 8 income.
The proposed Task Force (comprised of tenants and property owners) would review and analyze potential resources, including different types of legal ordinances. One of the main goals of the Task Force is to understand the leasing process and how leases can serve to address these various issues. The County believes that the Task Force should be comprised of housing industry representatives, property owner/ managers, and potentially multiple residents/tenants in a current rental lease arrangement, with the selection of the Task Force members to occur at the staff level versus the Council level.
Where: Joint Meeting of the Milpitas City Council and Milpitas Housing Authority
When: February 20, 2018/ 7:00 p.m./ 455 E. Calaveras Blvd. Milpitas, CA
Link to item: http://www.ci.milpitas.ca.gov/_pdfs/council/2018/022018/Agenda.pdf
Link to agenda: http://www.ci.milpitas.ca.gov/our-government/city-council/city-council-agendas-and-minutes-2/
Santa Clara County Board of Education
Eureka! Charter School denied their petition by San Jose Unified School District, public hearing scheduled for March 21, 2018
On February 12, 2018, the Charter Schools Department was contacted by Tiffany Maciel, lead petitioner for Eureka! Inclusive Charter School, regarding the process of Appealing to SCCBOE after their petition had been denied by San Jose Unified School District on 2/08/2018 Eureka is planning to submit its appeal petition to our charter team on February 21, 2018; The Public Hearing is tentatively scheduled for March 21, 2018, with the Decision Hearing on April 18, 2018.
On February 14, 2018, the Charter Schools Department received the Discovery II renewal petition. Discovery II’s public hearing is scheduled for March 7, 2018, and its decision hearing is April 4, 2018.
Where: Santa Clara County Board of Education
When: February 21, 2018/ 5:05 p.m./ Santa Clara County Office of Education 1290 Ridder Park Drive San Jose, CA 95131/ San Jose Room
Link to item: http://www.boarddocs.com/ca/sccoe/Board.nsf/goto?open&id=AUA7HZ791CF3
Link to agenda: https://www.boarddocs.com/ca/sccoe/Board.nsf/Public
San Jose Unified School District
Trustee Zarghami resigns; Board seeking applicants for provisional appointment
The Board of Education will make a provisional appointment to fill a vacancy from Board Trustee Area 4, which became vacant on February 12, 2018, with the resignation of Paymon Zarghami. The provisional appointee will serve until the term of office expires in December 2018.
The Board invites any eligible person who would like to be considered as a candidate for appointment to submit an application no later than 4:30 p.m. on Friday, March 9, 2018.
– Thursday, March 1, 2018, 4:00 p.m. to 5:00 p.m. – A special meeting of the Board of Education for prospective candidates to engage with current board members regarding the role and responsibilities of the position.
– Friday, March 9, 2018, 4:30 p.m. – Application Materials Due
– Tuesday, March 13, 2018, 6:00 p.m. – Candidate Interviews & Appointment Vote
– Thursday, March 15, 2018, 6:00 p.m. – Board of Education Meeting & Oath of Office
Where: San Jose Unified School District
Link to item: https://web.sjusd.org/whats-happening/news/notice-of-governing-board-vacancy/450/
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