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
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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.
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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:
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AYES:
Councilmembers: BEACH,
KEIGHRAN, ORTIZ
NOES:
Councilmembers: NONE
ABSENT:
Councilmembers: NONE
ABSTAIN:
Councilmembers: NONE
BROWNRIGG, COLSON, O'BRIEN
Meaghan Hassel -Shearer, City Clerk