Title
Adopt a Resolution to Approve and Authorize the City Manager to Execute an Asset Purchase and Sale Agreement and Assignment of Lease in an Amount Not to Exceed $147,270 for the Super 5 Chinese Restaurant Located in the Nimitz Motel at 555 Lewelling Boulevard
Staffreport
COUNCIL PRIORITY
* Housing and Homelessness
* Race and Equity Initiatives
SUMMARY
The City is in escrow to purchase the Nimitz Motel located at 555 Lewelling Blvd with the intent to convert the motel into an interim navigation center/shelter for unhoused individuals and eventually into a longer-term permanent supportive housing development. The Super 5 Chinese Kitchen (aka Super 5 Kitchen, Inc.) is a restaurant that operates on the ground floor of the motel. Based on mutual and voluntary negotiations over the past year with the owner of the Super 5 Chinese Kitchen ("Restaurant"), the City proposes to purchase the leasehold interest of the Restaurant to convert it into a dining/community room for the interim shelter/navigation center clientele.
RECOMMENDATIONS
Staff recommends that the City Council adopt the resolution that approves and authorizes the City Manager to execute the Asset Purchase and Sale Agreement and Assignment of Lease for the Super 5 Chinese Kitchen.
BACKGROUND
On March 21, 2022, the City Council approved the existing Purchase and Sale Agreement to acquire the Nimitz Motel. The City recently re-submitted a grant application for State Project Homekey Program funding in early June 2023 and is currently awaiting the State's funding decision.
The City contracted in early 2022 with AutoTemp, an experienced relocation firm, to ensure the City complies with State and federal relocation requirements for eligible longer term motel residents and the Restaurant.
Analysis
Per State and federal relocation regulations, the Restaurant is ineligible for relocation assistance. However, the Restaurant informed the City over a year ago that it was interested in relinquishing its le...
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