ALAMEDA COUNTY COMMUNITY DEVELOPMENT AGENCY

Chris Bazar Agenda Item______October 23, 2018 Agency Director

224 West Winton Ave Room 110 October 9, 2018

Hayward, 94544-1215 Honorable Board of Supervisors Administration Building phone 510.670.5333 Oakland, California 94612 fax 510.670.6374 Dear Board Members:

www.acgov.org/cda SUBJECT: PURCHASE AND SALE AGREEMENT WITH LWCI, LLC. FOR THE PURCHASE OF 3.2+ ACRES OF SURPLUS PROPERTY IN LIVERMORE

RECOMMENDATION:

Adopt a resolution (4/5 vote required) authorizing the President of the Commission to execute a Purchase and Sale Agreement with LWCI, LLC., (Principal: Michelle Boss, Managing Member; Location: Livermore, California) for the purchase of the approximately 3.2 acre parcel (APN 99-460-8) located at the southwest corner of Hanson Road and Arroyo Road, Livermore; for $750,000, for the development of a 30- room inn and restaurant.

DISCUSSION/SUMMARY:

LWCI, a California limited liability company, has offered to purchase a vacant 3.2 acre parcel with a 0.7 acre owned by the Surplus Property Authority (Authority) and located at the southwest corner of Hanson Road and Arroyo Road on the southern edge of Livermore. LWCI plans to develop the property with a 30-room “ Country Inn” that will cater to Livermore guests and will include a 2,000 square foot restaurant and caretaker residence. Both the proposed use and intensity of development is consistent with the City of Livermore’s South Livermore Valley Specific Plan.

The Inn parcel is the last remaining property still owned by the Authority of what was originally the 77-acre Wetmore Ranch. The remainder of the Ranch was sold by the Authority in the early 2000’s, and has been successfully developed with a residential neighborhood and a winery/vineyard. Another 3.2 acre parcel, located just north of the subject property, was sold to a developer for a retail center but has never been developed and was recently sold to another owner (at a significant loss).

LWCI was formed by Michelle Boss, a Livermore resident and entrepreneur. While Ms. Boss does not have hospitality experience, she has brought in experienced hotel developers as consultants and has presented a credible business plan and design to Authority staff. Board of Supervisors October 9, 2018 Page 2

The purchase price for the property is $750,000. A first deposit of $25,000 will be made upon execution of the Purchase and Sale Agreement. LWCI will then have 90 days to inspect the property, at which time a second deposit of $25,000 will be required, followed by an additional $25,000 deposit 91days later. LWCI will have a year to complete the entitlement process with Livermore and close on the property, with the option to extend the close for up to 120 days, with the payment of an additional $25,000 for each of two 60-day extensions.

Under the terms of the Purchase and Sale Agreement, LWCI is responsible for the costs of entitling the project with Livermore and for all impact fees associated with the project. Should LWCI not commence construction on the proposed inn within three years of close, the Authority would have the right (but not the obligation) to repurchase the property for $750,000.

Per the Rules of the Surplus Property Authority, any sale that is the result of direct negotiations and not the result of a competitive RFP process requires a 4/5th approval and findings that the sale is in the economic best interests of the County and that, but for the direct negotiations, the sale could not be accomplished. Those findings have been made and are recited in the Resolution.

FINANCING:

Sale of this property will result in a net of approximately $725,000 to the County’s Emerald Fund, after the payment of typical closing costs.

Very truly yours,

Chris Bazar, Director Community Development Agency cc: Susan S. Muranishi, County Administrator Donna R. Ziegler, County Counsel Steve Manning, Auditor-Controller Melanie Atendido, County Administrator’s Office Heather M. Littlejohn, Office of the County Counsel A.J. Dizon, CDA

Approved as to form Donna R. Zeigler, County Counsel

By______Heather Littlejohn Deputy County Counsel

THE SURPLUS PROPERTY AUTHORITY COMMISSION OF THE COUNTY OF ALAMEDA, STATE OF CALIFORNIA

THE FOLLOWING RESOLUTION WAS ADOPTED: NUMBER______

RESOLUTION AUTHORIZING DIRECT NEGOTIATIONS AND EXECUTION OF A PURCHASE AND SALE AGREEMENT WITH LWCI, LLC., FOR APPROXIMATELY 3.2+ ACRES OF PROPERTY OWNED BY THE SURPLUS PROPERTY AUTHORITY OF ALAMEDA COUNTY

WHEREAS, the Surplus Property Authority of Alameda County, a public corporation, is the fee simple owner of that certain real property located in the City of Livermore and commonly known as “Wetmore Inn Site”, APN #99-460-8, an approximately 3.2 acre vacant property located at the southwest corner of Hanson Road and Arroyo Road; and

WHEREAS, the Surplus Property Authority wishes to sell the Wetmore Inn Site for commercial development, consistent with the City of Livermore General Plan and South Livermore Valley Specific Plan; and

WHEREAS, the Surplus Property Authority has previously directed staff to take the steps necessary to make the Wetmore Inn Site available for public sale, including compliance with Government Code Section 54220 et seq., and Government Code Section 65402; and

WHEREAS, the Surplus Property Authority desires to use the direct negotiated disposition process pursuant to the procedures set forth in Section 5, Disposition Under Special Circumstances, of the Rules and Procedures for Disposition of Property adopted by the Authority on May 14, 1996, in accordance with the general powers granted by Government Code Section 40567(b); and

WHEREAS, the Surplus Property Authority has received a proposal to enter into a Purchase and Sale Agreement with LWCI, LLC., for Wetmore Inn Site for the development of a 30-room inn and restaurant, and based on that proposal, has negotiated a Purchase and Sale Agreement for the price of $750,000; and

WHEREAS, the Surplus Property Authority finds that the unique timing considerations with respect to responding to the LWCI, LLC development proposal require direct negotiations; and

WHEREAS, the Surplus Property Authority finds that the financial considerations of the LWCI, LLC proposal, in terms of a beneficial land sales price and an appropriate user, merit direct negotiations.

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NOW, THEREFORE, BE IT RESOLVED, that the Surplus Property Authority Commission authorizes a direct negotiation with LWCI, LLC; and

BE IT FURTHER RESOLVED, that the Surplus Property Authority Commission authorizes the President to execute the Purchase and Sale Agreement with LWCI, LLC for the purchase of the Wetmore Inn Site, located in Livermore, California.

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NOTICE OF PUBLIC HEARING

PURCHASE AND SALE AGREEMENT BETWEEN SURPLUS PROPERTY AUTHORITY OF ALAMEDA COUNTY AND LWCI LLC, LIVERMORE, CALIFORNIA

Notice is hereby given that the Alameda County Board of Supervisors, sitting as the Commission of the Surplus Property Authority of Alameda County, will conduct a hearing on a proposed purchase and sale agreement between the Surplus Property Authority and LWCI LLC., for the disposition of approximately 3.2 acres of vacant surplus Authority property, APN #99-460-8, located at the southwest corner of Hanson Road and Arroyo Road, Livermore.

The Commission of the Surplus Property Authority hearing will be held on Tuesday, October 23, 2018 in the Alameda County Administrative Building, Supervisors Chamber, 1221 Oak Street, Fifth Floor, Oakland, California 94607, and will begin at 9:30 a.m. At that meeting the Commission will either continue the matter for further consideration or take public testimony and take an action.

This action has been reviewed under the provisions of the California Environmental Quality Act (CEQA) and has been found to be Categorically Exempt under Section 15312, Class 12 of the State CEQA Guidelines.

If you challenge the proposed action in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the Surplus Property Authority prior to the public hearing.

If you have questions about this action please contact Stuart Cook, Director, at 510- 670-6534.