Title
Adopt a Resolution to Approve and Authorize the City Manager to Execute an Amendment to the Contract with Robberson Schroedter LLP for Bankruptcy Litigation Representation Related to the Shoreline Project for an annual Not-to-Exceed Amount of $225,000 for Fiscal Year 2026
Staffreport
COUNCIL PRIORITY
• Economic Development
• Quality of Life
SUMMARY
The legal firm of Robberson Schroedter LLP provides bankruptcy litigation representation related to the Shoreline Project. The proposed amendment to the contract authorizes expenditures up to $225,000 for FY 2026 for Robberson Schroedter. The contract will be fully funded by the Shoreline Fund in the FY 2026 adopted budget.
RECOMMENDATION
Staff recommend that the City Council approve and authorize the City Manager to execute an amendment to the contract with Robberson Schroedter LLP for bankruptcy litigation related to the Shoreline Project for an annual not-to-exceed amount of $225,000 for FY 2026.
BACKGROUND
The Monarch Bay Shoreline Development Project is a planned development along the northern portion of the San Leandro shoreline. In 2022, planning entitlements were approved for the developer Cal-Coast Companies to construct up to 500 new housing units, a hotel, restaurants, and a small retail space; and for the City to construct a new community park and library.
In 2022, the City of San Leandro provided a loan to the developer to purchase a portion of the 9-hole Marina Golf Course property for the Single-Family Element of the project, which includes approximately 200 units of single family and townhomes and the obligation to rebuild the Marina course. On June 20, 2024, Monarch Bay For Sale Residential LLC (“Monarch Bay”), the Cal-Coast legal entity to whom the City loaned money, was in default on the City’s loan and filed for Chapter 11 Bankruptcy. The underlying property fully secures the City's loan, so the City is not financially exposed. The case is still under bankruptcy court jurisdiction.
Analysis
The City is proactively pursuing all options under the bankruptcy process to ensure that the developer is held accountable to the agreements’ terms, that the City’s rights and interests are protected, and that the property is improved and developed to benefit the community. The City is represented by Robberson Schroedter, a qualified legal firm with relevant experience in bankruptcy litigation.
Financial Impacts
Sufficient funds are included in the FY 2026 Shoreline Enterprise Fund Shoreline Development budget for the proposed expenditures.
• Shoreline Enterprise Fund - Shoreline Development, Account 597-57-115: $225,000
ATTACHMENTS
Attachment A: Draft Resolution to Approve and Authorize the City Manager to Execute an Amendment to the Contract with Robberson Schroedter LLP for a not to exceed amount of $225,000 for Fiscal Year 2025-2026
Attachment B: Amendment to the Contract with Robberson Schroedter LLP
PREPARED BY: Katie Bowman, Economic Development Manager, Community Development Department