To: Board of Supervisors
From: Warren Lai, Public Works Director/Chief Engineer
Report Title: Amendment to Option Agreement - 100 38th Street, Richmond
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Public Works Director, or designee, to execute an amendment to the option agreement between the County and Eden Housing, Inc. and Community Housing Development Corporation - North Richmond, both nonprofit public benefit corporations, under which the optionee may purchase the County-owned property located at 100 38th Street in Richmond for use in the development of affordable housing, to extend the term of the agreement through December 31, 2026 and increase the quarterly option payment.
FISCAL IMPACT:
This action increases the quarterly option payment by an annual amount $30,000 which helps to offset the costs of Public Works to maintain the property. (100% General Fund)
BACKGROUND:
The County owns the real property located at 100 38th Street, Richmond, the site is the former West County Health Center, which has been relocated to San Pablo. The property is improved with a multi-story, 83,884 square foot building that has been vacant since November 2018.
Following a request for qualifications process, a partnership of Eden Housing, Inc. and Community Housing Development Corporation-North Richmond (together, the Developer) were designated by the Board of Supervisors to carry out the redevelopment of the property with affordable housing.
On December 17, 2019, the Board of Supervisors approved an Exclusive Negotiating Rights Agreement (ENRA) with the Developer. Under the terms of the ENRA, the parties agreed to negotiate the terms under which the County would transfer the property to the Developer to develop the proposed project. The proposed project includes 59 units of supportive housing for very low-income households, 76 units of family housing for low-income households, and an early childhood learning center. The ENRA was amended and restated on June 19, 2022, to extend the term and require payments to be made to the County by the Developer as consideration for the agreement.
On July 18, 2023, the Board of Supervisors approved an option agreement with the Developer to purchase the property for $4,000.00 and pay $30,000.00 per quarter as consideration for the agreement.
The proposed amendment extends the term of the option by one year, to December 31, 2026, and increases the option price to $37,500 per quarter until the Developer either exercises the option or the option expires.
CONSEQUENCE OF NEGATIVE ACTION:
In the absence of the site control afforded by the amendment to the option agreement, the Developer’s ability to obtain financing commitments for the proposed development will be constrained.