pages: CityCouncil/2010-01-05.pdf, 9
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CityCouncil | 2010-01-05 | 9 | Board Member Spencer inquired whether Alameda has had any DAs that only include a good faith effort [at fiscal neutrality], to which the City Attorney responded in the negative; stated the provision would be inconsistent with the Council resolution that requires fiscal neutrality to be guaranteed. Board Member Spencer inquired whether the City has had any DAs that include a dollar cap on public benefits, to which the Public Works Director responded the DAs he has seen do not. The City Attorney stated said provision is not normally in a DA; said type of provision typically belongs in a DDA. Board Member Spencer inquired whether Alameda has DAs that allow developers to sell obligations and rights without the City's consent, to which the City Attorney responded the City would not typically negotiate such a provision; stated that she does not know of any DA with a provision that loose. Board Member Spencer requested staff to explain why the City does not allow sale without City consent. The City Attorney stated the City needs to know the developer has the capacity to perform entitlements; the City goes through a lengthy negotiation process with the developer it chooses to get entitlements in place; cities want a say over the entity receiving entitlements to ensure the entity has the financial capacity to perform. Board Member Spencer inquired who benefits from the developer being able to sell without the City's consent, to which the City Attorney responded the developer drafted the DA; stated the DA is not a negotiated Agreement and would look to provide developer friendly provisions; the provision is more developer friendly, than City friendly. In response to Board Member Spencer's inquiry about citizens focusing on whether the language protects the City, the Interim City Manager stated said question is a policy issue to be decided by the City Council and School Board. The Interim City Manager stated most DDAs include language restricting and controlling property transfer; the typical language usually says the developer can transfer with the City's approval, which may not be reasonably withheld; some DDAs even preclude the developer from selling for seven to ten years; SunCal is not a vertical developer; SunCal develops master plans and sells them to be constructed by different companies. Mayor Johnson stated the developer's Internal Rate of Return (IRR) was discussed when the City went through the selection process; SunCal's requirement was 25%; inquired whether the IRR is still at 25%. The Interim City Manager stated the ENA prohibits the contents of the pro forma from being Special Joint Meeting Alameda City Council and 9 Board of Education January 5, 2010 | CityCouncil/2010-01-05.pdf |