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HomeMy WebLinkAboutReso - CC - 126-2022DocuSign Envelope ID: ABF3931C-632D-4459-85B6-A95764DC90CD RESOLUTION NO. 126-2022 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BURLINGAME DECLARING THE PROPERTY AT 250 ANZA BOULEVARD TO BE EXEMPT SURPLUS LAND AS PROVIDED BY THE SURPLUS LAND ACT AND MAKING SUPPORTING FINDINGS WHEREAS, the City is the owner of the 13 -acre parcel located at 250 Anza Boulevard, adjacent to the Burlingame Soccer Complex, commonly known as Murray Field, which is currently leased to the operator of the Burlingame Golf Center as a driving range ("Property"); and WHEREAS, on June 20, 2016, the City issued a Request for Proposals (RFP) for the lease management of the Property for the operation of golf or other recreational or entertainment activities that would be open to the public; and WHEREAS, on March 21, 2017, the City Council selected Topgolf as the preferred operator for the Property, based on their proposal to construct a new golf -centered commercial recreation and sports complex; and WHEREAS, on June 3, 2017, the City Council approved a Term Sheet that would be the basis for the Ground Lease and addresses deal points including the term of the lease, rent payment, community benefits, fees, and sustainability measures; and WHEREAS, on May 21, 2018, the City Council approved an Exclusive Negotiating Agreement with Topgolf, with a term through December 31, 2018, that requires the City and Topgolf to negotiate exclusively with each other the terms of a lease for Topgolf to develop the Property and requires the City not to negotiate or entertain offers or proposals for disposition of the Property from any other entity ("Written ENA"); and WHEREAS, after executing the Written ENA, Topgolf began the process of obtaining land use entitlements for a Topgolf facility to be developed on the Property ("Project"), and the City began the accompanying environmental review under the California Environmental Quality Act ("CEQA"); and WHEREAS, from 2018 through 2020, even after expiration of the Written ENA, the City took actions in furtherance of the Written ENA, including: adopting resolutions approving contracts for environmental study of the Project; holding public hearings to study design and environmental scoping of the Project; and holding consultations with other governmental agencies having permitting authority over the Project; and WHEREAS, the City and Topgolf have continuously and regularly met since 2018 to exclusively negotiate the terms of a Ground Lease for the Property; and DocuSign Envelope ID: ABF3931C-632D-4459-85B6-A95764DC90CD WHEREAS, on May 11, 2020, the Planning Commission approved all discretionary land use entitlements for the Project, including a Mitigated Negative Declaration that analyzed the Project's potential environmental impacts, Design Review and a Conditional Permit; and WHEREAS, the land use approvals were not appealed by or to the City Council and therefore became effective on May 22, 2020; and WHEREAS, the Property is subject to the Surplus Land Act ("SLA") (Government Code Section 54220 et seq.), a state law that was amended in 2019 by AB 1486, effective January 1, 2020, that encourages the development of affordable housing, schools, and open space; and WHEREAS, the Department of Housing and Community Development ("HCD"), the state agency which administers and enforces the SLA, has published Surplus Land Act Guidelines ("Guidelines"), dated April 2021, which implement, interpret and make specific the text of the SLA; and WHEREAS, prior to disposing of surplus property, the SLA requires local agencies to either: declare the property in question as Surplus, which, among other things, requires offering the property for affordable housing to housing developers and other public agencies; or adopt findings declaring the property to be Exempt Surplus Land, and thus exempt from the requirements above; and WHEREAS, one of the SLA exemptions allows property to be declared Exempt Surplus Land if the Property is subject to an exclusive negotiating agreement (ENA), as set forth in Government Code section 54234(a)(1) in more detail as follows: "If a local agency, as of September 30, 2019, has entered into an exclusive negotiating agreement or legally binding agreement to dispose of property, the provisions of this article as it existed on December 31, 2019, shall apply, without regard to the changes made to this article by the act adding this section, to the disposition of the property to the party that had entered into such agreement or its successors or assigns, provided the disposition is completed not later than December 31, 2022."; and WHEREAS, in 2021, the City Attorney requested guidance from HCD regarding the applicability of the ENA exemption to the Ground Lease with Topgolf; and WHEREAS, HCD provided written confirmation that the Property may be declared as Exempt Surplus based on the Written ENA, and confirmed that since the Parties acted as if the Written ENA was still in effect after its expiration, the City may rely on the exemption, provided the disposition of the Site is complete by December 31, 2022. DocuSign Envelope ID: ABF3931C-632D-4459-85B6-A95764DC90CD NOW, THEREFORE, BASED ON THE STAFF REPORT, AND THE WRITTEN AND ORAL TESTIMONY AT THE HEARING, THE CITY COUNCIL OF THE CITY OF BURLINGAME RESOLVES AND ORDERS AS FOLLOWS: 1. The above Recitals are true and correct and are material to this Resolution and are incorporated into this Resolution as findings of the City Council. 2. The City Council hereby finds that the Property is Exempt Surplus Land under Government Code Section 54234(a)(1) and Guidelines Section 103(b)(1), as on May 21, 2018, the City and Topgolf entered into the Written ENA to dispose of the Property through a long-term ground lease. Further, the City intends to enter into the ground lease to complete the disposition of the Property in October, 2022. Therefore, the disposition of the Property to Topgolf is exempt as the City entered into the ENA or legally binding agreement on or before September 30, 2019, and will dispose of the property by December 31, 2022. 3. The City Council hereby declares the Property to be Exempt Surplus Land, provided the disposition to Topgolf is completed by December 31, 2022. 4. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this resolution is, for any reason, held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this resolution. The City Council hereby declares that it would have adopted this resolution and each and every section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions thereof be declared unconstitutional. 5. This Resolution shall take effect immediately upon its adoption. Ricardo Ortiz, Mayor I, Meaghan Hassel -Shearer, City Clerk of the City of Burlingame, do hereby certify that the foregoing Resolution was introduced at a regular meeting of the City council held on the 17th day of October, 2022, and was adopted thereafter by the following vote: DocuSign Envelope ID: ABF3931C-632D-4459-85B6-A95764DC90CD AYES: Councilmembers: BEACH, KEIGHRAN, ORTIZ NOES: Councilmembers: NONE ABSENT: Councilmembers: NONE ABSTAIN: Councilmembers: NONE BROWNRIGG, COLSON, O'BRIEN Meaghan Hassel -Shearer, City Clerk