Title
Public Hearing to Afford Cal-Coast Companies an Opportunity to be Heard under Section 5.6 of the Disposition and Development Agreement dated July 22, 2020 and Formal Action by Minute Order of the City Council to Terminate the DDA Only with Respect to the Portions of the Property to which the Default Applies
Staffreport
COUNCIL PRIORITY
? Fiscal Sustainability and Transparency
SUMMARY
In accordance with the Disposition and Development Agreement between the City of San Leandro and Cal-Coast Companies dated July 22, 2020, the City Council affords the Developer the opportunity to be heard at a public meeting before taking action by minute order to terminate the DDA.
BACKGROUND
By letters dated January 10, 2025, and March 14, 2025 the City provided Cal Coast Companies notices of default of the disposition and development agreement (DDA) dated July 22, 2020 (and as subsequently amended on March 17, 2021, June 21, 2022, and December 19, 2022).
Developer's Default of Schedule of Performance
Section 1.3 of the DDA plainly states: "The obligations of the parties must be completed within the times set forth in the Schedule of Performance." The Developer became in default of the Schedule of Performance provided in the DDA as amended on December 19, 2022. The DDA can be accessed here.
Failure to Complete Post-Commencement Ground Lease Requirements
Post-Commencement Ground Lease Requirements must have been completed prior to the issuance of permits for Site Preparation, and such permits needed to be obtained by December 22, 2024. Exhibit J-3 to the DDA, the "Revised DDA Schedule of Performance (December 2022 Revision)" under Task 3 ("Site Preparation"), requires that "Developer Completes Post-Commencement Ground Lease Requirements for General Contractor, Construction Contract, and Bonds and Security" ... "Prior to the issuance of Permits for Site Preparation for each Developer Western Elements." (Emphasis added.)
Post-Commencement Ground Lease Requirements ...
Click here for full text