►
Description
San Bruno City Council Meeting April 27, 2021
6a. Authorize Sale of The Crossing Property
A
C
Good
evening
mayor
members
of
the
council
and
members
of
the
public
javon
grogan
city
manager,
I'm
excited
to
present
this
item
to
you
tonight
with
city
attorney
mark
zapparano.
Should
the
city
council
approve
this
item,
which
is
a
purchase
and
sale
agreement
with
the
cardinality
automotive
group
for
the
crossing
site?
It
will
mark
the
first
major
milestone
in
redeveloping
this
site,
since
the
city
began
conversations
with
cardinelli
last
year.
C
D
D
D
All
right
we're
getting
nods
fantastic.
All
right,
so
is
the
city
manager
indicated
in
his
introduction,
we're
here
this
evening
to
talk
about
the
purchase
and
sale
agreement
for
the
crossing
property.
So
here's
a
brief
agenda.
We're
going
to
give
you
a
little
bit
of
background,
we're
going
to
review
the
key
provisions
of
the
purchase
and
sale
agreement,
we're
referring
to
that
as
the
psa
and
we're
going
to
discuss
what
the
next
steps
are.
D
The
city
purchased
that
property
for
about
1.4
million
dollars,
as
the
city
manager
indicated
for
development
as
a
hotel
and
four
years
later,
the
city
was
able
to
execute
a
psa
with
a
hotel
developer
for
3.97
million
dollars,
and
it
took
four
years
because
during
that
period
of
time,
the
city
engaged
in
all
of
the
actions
necessary
to
entitle
the
property
and
do
all
the
sql
work
and
all
of
the
zoning
amendments
that
are
required.
It
were
would
have
been
required
to
develop.
D
That
property
as
a
hotel
do,
as
you
can
see
quite
a
time,
consuming
process,
but
the
city
was
successful
in
entering
into
this
purchase
and
sale
agreement.
Unfortunately,
however,
you'll
remember
that
the
developer
could
not
close
escrow
due
to
delay
caused
by
litigation
that
the
city
ultimately
prevailed
in,
so
that
sale
fell
through
in
2019.
D
So
before
the
city
could
enter
into
a
proposed
purchase
and
sale
agreement
with
with
anybody.
They
have
to
comply
with
the
act
and
the
city
did
comply
with
the
act,
and
we
know
that
because
hcd,
which
is
the
state
agency,
that
oversees
housing
development
in
cities,
among
other
things,
reviewed
the
city's
process
for
compliance
with
the
act
and
they
determined
three
things.
D
D
So
here
are
the
key
provisions
of
the
purchase
and
sale
agreement
so
cardinality.
The
buyer
does
intend
to
construct
a
hyundai
genesis,
auto
dealership
on
the
property,
and
I
wish
we
had
a
rendering
for
you,
but
we
don't
have
a
current
rendering
of
what's
proposed.
There
have
been
a
variety
of
them
and
we
we
didn't
want
to
show
you
a
gorgeous
picture
of
something
that
turns
out
in
the
future
to
be
just
as
gorgeous
but
but
somewhat
different.
D
We'll
pause
there
for
a
second
to
remind
everyone
that
the
land
is
not
entitled
for
an
auto
dealership.
It's
a
title
for
hotel,
so
cardinale
has
agreed
to
assume
all
of
the
risk
in
going
through
that
procedure
and
there's
quite
a
great
many
actions
that
the
city
is
going
to
need
to
take
in
order
to
entitle
the
property,
so
that
cardinality
can
eventually
close
escrow.
So
I've
made
a
list
of
those
for
you.
D
And
you
might
note,
that's
that's
not
four
years,
that's
actually
only
a
few
months.
So
this
is
an
extremely
expedited
process
that
the
city
is
going
to
do
its
best
to
commit
to
making
sure
that
that
target
date
is
is
met.
Of
course,
we
we
also
hope
that
cardinale
is
very
much
looking
forward
to
getting
their
dealership
built.
D
So
what
that
means
is
not
only
that
the
city
will
have
to
have
approved
the
land
use
entitlements
for
the
close
of
escrow,
but
also
that
the
city
will
have
to
have
received
from
cardinali
a
full
set
of
building
plans
gone
through
the
entire
plan
check,
process
and
review
and
be
ready
to
issue
a
building
permit,
because
the
target
date
for
close
of
escrow
is
march
31st
of
next
year.
That
can
be
extended
for
up
to
six
months
if
necessary.
D
Another
piece
of
good
news
is:
the
buyer
is
going
to
designate
the
city
as
point
of
sale
for
subcontracts
that
are
in
excess
of
five
million
dollars.
So
that
means
the
city
will
see
substantial
sales
tax
revenue
and
the
buyers
agreed
to
operate
a
car
dealership
for
a
substantial
period
of
time
and
the
estimated
sales
tax
revenue
on
an
annual
basis
once
the
dealership
is
up
and
running
as
indicated
by
the
city
manager,
is
approximately
a
million
dollars
per
year.
D
D
A
You,
if
there's
members
of
the
public
that
wanted
to
speak
on
this,
if
you
could
raise
your
virtual
hand
to
the
city,
manager
and
or
city
attorney,
just
when
it
comes
to
this
project
and
construction
element
of
it
is
there
have.
Has
it
been
made
clear?
At
least
my
belief?
I
don't
know
what
the
councils
are
about:
the
union,
jobs
and
labor
when
it
comes
to
this
project
and
the
importance
that
it
is
to
our
community.
D
C
Mayor
medina,
we
have
made
the
developer
aware
of
all
the
requirements
relating
to
development
of
this
site,
as
well
as
the
prior
history.
With
regard
to
union
lawsuits
relating
to
both
the
construction
operation,
as
well
as
labor
to
develop
the
site,
we
feel
that
they
are
fully
aware
of
all
of
the
constraints
on
on
the
site
and
going
into
this
project
eyes
wide
open,
but
it's
very
much
intent
on
moving
forward
and
is
actually
have
expended.
Hundreds
of
thousands
of
dollars
already
to
begin
design
work
to
develop
the
dealership.
C
B
D
Yeah,
so
yes
councilmember
mason,
I'm
I
really
apologize
for
not
being
able
to
do
that.
We,
we
did
have
some
renderings,
but
they
were
provided
actually
last
year
and
are
now
out
of
date.
There
were
more
recent
renderings
that
did
not
correctly
reflect
some
of
the
features
that
are
constraints
on
the
zoning
and
we
really
didn't
feel
it.
It
was
appropriate
to
display
those
renderings
at
this
time.
I
think
the
best
way
to
put
it
is,
if
you
can
imagine
a
a
thoroughly
new,
modern,
a
car
dealership
with
clean
architectural
lines.
D
B
Okay,
great,
I
was
yeah,
I
think.
If
and
as
I
know,
I've
said
this-
a
city
manager
grow
him
before,
but
if
possible,
to
align
the
design
with
the
unique
kind
of
framework
of
that
location
along
the
freeway,
I
think
would
be
more
complementary
to
that
location.
I
also
just
wanted
to
ask:
there
has
been
questions,
questions
around
the
unique
nature
of
that
location
and
the
zoning
of
the
location
and
how
you
know
this.
B
C
Sure
so,
at
a
high
level,
any
reuse
of
this
property
will
involve
a
a
specific
plan
change
and
more
than
likely
a
general
plan
change.
One
of
the
reasons
for
this
is
the
prior
action
to
zone
the
property
for
the
oto
hotel
was
extremely
specific.
The
property
is
zoned
for
a
123
room
hotel
with
a
banquet
facility
of
x
square
feet
that
product
we
know
from
our
more
than
five-year
effort
in
this
city
to
try
and
have
that
product
developed
is
not
a
a
candidate
for
this
1.5
acre
site
in
tobit.
B
C
C
A
C
C
More
vehicle
storage
on
site
will
actually
increase
car
sales,
and
so
that
number
is
an
estimate.
As
we
refine
the
design,
we
will
have
a
better
estimate
on
annual
sales
tax,
but
that
is
a
preliminary
estimate.
We
have
the
ground
truth
back
with
other
dealerships
and
we
feel
very
comfortable
in
that
number.
B
C
So
what
that
really
means
is
state
law
prohibits
what
we
would
typically
envision
of
an
electronic
message
board
on
this
site.
However,
there
is
potentially
the
possibility
for
an
electronic
message
board
on
the
el
camino
side,
unfortunately,
because
it
has
to
be
low
lower
than
the
freeway
height
and
not
visible
from
from
the
freeway.
It
actually
would
block
the
front
view
of
the
dealership,
and
so
at
this
point
based
on
site
constraints
and
state
law,
we
believe
that
there
is
not
the
possibility
for
an
electronic
message
board
on
the
site
as
a
belt
and
suspenders.
C
We
have
negotiated
provisions
within
the
purchase
and
sell
agreement
that
requires
the
property
owner
cardinally
automotive
group,
to
work
with
the
city.
Should
it
become
legal
and
should
we
define
a
path
for
a
card
or
an
electronic
message
board
to
to
be
placed
on
that
site?
So
that's
a
high
level
overview.
B
B
Sitting
attorney
mark
is
nodding
his
head,
yeah.
Okay,
great!
Thank
you.
The
other
question
is
around
jax.
We
were
actually
just
there
and
you
know
we
always
park
in
this
space
that
will
no
longer
be
space
available,
and
so
I
saw
in
the
agreement
there's
a
provision
in
there
wherein
the
city
is
going
to
be.
It
looks
like
responsible
for
terminating
the
license
or
whatever
it
is
that
you
have
with
sex.
I
don't
have
it
right
in
front
of
me,
but
I
have
read
it
prior
to
this
meeting.
So
can
we
talk
about?
B
C
B
And
I
apologize,
I
said
two
more,
but
I
do
have
one
just
one
more
question.
Thinking
of
some
past
meetings
that
I
attended
prior
to
beyond
council
and
that's
around
the
apartments,
the
location,
that's
right,
adjacent
to
what
will
likely
be
this
auto
dealer
is:
are
there
going
to
be
any
provisions
going
into
this
contract
around
the
alarms,
the
noise
that
it
makes
or
have
have
they
even
been
notified
that
this
might
be
coming
or
that
this
was
coming
to
the
council
tonight?.
C
So
so,
yes,
yes,
they
are
aware.
They
are
well
aware
of
the
the
crossings
in
the
1000
residential
units
toward
the
toward
the
west.
All
of
those
conversations
and
questions
are
part
of
the
entitlement
package
and
those
will
will
come
forward
as
the
entitlement
process
and
the
various
zoning
and
specific
plane
changes
come
forward
absolutely
they're.
All
envisioned
and
preliminary
conversations
have
been
had.
E
Hold
on
just
a
second
here
something
going
on
with
my
audio,
but
I'm
ready.
Those
are
a
lot
of
good
questions
and
some
of
some
of
them
were
similar
to
mine
and
in
that
calculation
of
a
million
per
year
that
that
thing,
that's
not
only
car
sales,
but
the
car
service.
The
service
department
that
they
would
have
on
site
on
city
manager,
grogan.
C
C
E
E
Correct,
yes,
excellent-
and
my
last
question
is:
is:
is
the
risk
associated
with
with
this
project?
This
has
been
a
problematic
site
with
the
long
history
and
and
what
what
risk
of
are.
We
are
we
looking
at
it
if
this,
what
could
hold
this
up
the
sale
up,
besides,
not
being
able
to
process
the
application
and
and
get
all
the
the
entitlements
done,
but
the
labor
portion,
if
you
can
give
us
a
little
bit
more
insight
into
that
you,
it
was
briefly
touched.
But
what
is
the?
C
C
This
is
not
a
new
thing
for
them,
on
the
other
way
that
I
will
address,
that
is
to
say,
there's
an
entitlement
process
that
has
already
begun
and
as
a
regulatory
agency,
the
city
and
and
the
various
entities
in
the
city.
Both
the
planning,
commission
staff
and
the
city
council
really
have
a
chief
oversight
over
that
regulatory
process,
as
well
as
the
motivation
of
the
buyer.
C
One
of
the
things
that
we
know
is
that
the
buyer
is
very
motivated
to
open
a
car
dealer
not
just
to
develop
this
dealership,
but
they're.
Looking
at
temporary
locations
and
so
upon
tonight's
action,
they
are
prepared
to
to
enter
into
leases,
to
open
a
temporary
dealership
here
in
san
bruno
hyundai,
in
genesis
genesis
being
the
flagship
of
the
hyundai
brand.
C
There
is
not
neither
a
hyundai
or
genesis
dealership
between
marin
and
further
south
in
the
peninsula,
so
there's
about
a
50,
a
60
mile
stretch
without
a
hyundai
dealer,
and
so
they
their
last
dealership
club
hyundai
dealership
closed
in
coma,
and
they
are
very
interested
in
open
opening
a
dealership
in
san
bruno
and
opening
a
temporary
facility
where
both
they
can
sell
cars
and
and
repair
vehicles.
So
once
their
dealership
is
developed,
they
can
reach
that
stabilization.
Here.
E
F
So
my
only
question
left
is
related
back
to
jax,
and
I
know
we're
gonna
have
to
you
know,
terminate
the
the
agreement
that
we
have
for
their
parking.
Will
they
be
able
to
continue
to
use
it
through
the
close
of
escrow?
I
don't
imagine
it
would
be
much
beyond
close
of
escrow,
because
I
know
how
eager
cardinality
would
be
to
break
ground
and
get
started
on
construction,
but
would
jax
be
able
to
use
the
property
up
until
that
time.
Yeah.
G
Thank
you,
mr
mayor.
So
a
lot
of
my
questions
were
also
answered.
I
was
particularly
interested
in
how
the
revenue
projections
were
were
done
back
when
we
were
talking
about
a
hotel.
It
was.
It
was
a
lot
easier
because
we
had
a
pretty
straightforward
formula
with
number
of
rooms:
industry
average
on
occupancy
and
average.
I
hope
you
know
the
cost
per
room.
G
It
was
pretty
easy
to
derive
a
cost
and
I
think
those
early
calculations
drove
us
to
make
sure
we
had
a
t.o.t
tax
coming
forward
and
we
had
all
that
cued
up.
So
it
sounds
like
the
estimates
here
are
are
sound,
although
not
as
verifiable,
because
some
of
that
information
is
is
not
public,
and
so
it
does
sound
like
we're.
Getting
next
best
use
out
of
this
property.
G
That'll
have
a
very
similar
revenue
stream
to
what
we
initially
set
out
to
do,
and
you
know
when
the
in
the
city
manager
or
the
I'm
sorry
the
city
attorney's
presentation
we
started
talking
about.
You
know
sort
of
starting
the
history
at
2012
when
the
city
purchased
the
property,
and
I
was
thinking
you
know
just
yeah
and
not
to
go
too
far
back
in
in
the
time
machine.
G
But
you
know
just
thinking
back
20
years
ago
when,
when
the
voters
were
asked
to
approve
a
ballot
measure,
to
increase
the
height
limits
in
that
area
and
part
of
what
was
a
big
selling
point
was
that
there
would
be
a
hotel
there
and
it
would
be
a
revenue
generator
and,
after
you
know,
two
false
starts
at
trying
to
live
up
to
that
commitment.
I
I
think
I
can
say
pretty
confidently
that
we
did
make
a
very
solid
effort
to
sort
of
pursue
that
that
goal.
G
G
G
A
Thank
you,
council
member.
Well,
I
think
you
gave
a
pretty
good
historical
perspective
on
on
the
the
lot
you
know
and
and
the
city
did
purchase
it,
because
the
city,
as
was
indicated,
wanted
to
maintain
the
control
on
the
quality
of
the
hotel,
not
just
any
motel
or
hotel,
but
also
the
quality
and
a
standard
that
that
the
community
had
wanted,
in
addition
to
the
amenity
of
a
meeting
a
facility,
so
people
could
rent
it
out
or
utilize
it.
A
So
I
think
that
the
council,
now
the
council,
then
had
gone
out
as
was
asked.
As
for
the
hotel.
Gosh
knows
post
covet,
I
don't
know
the
hotel
market
as
far
as
having
somebody
come
in
and
and
going
down
this
path.
So
I
do
appreciate
that
that
historical
perspective
and
I
know
the
lot
that
we're
referencing
next
to
jax.
A
You
know,
if
you
go
into
the
lot,
it
actually
has
a
sign
for
everybody
in
the
complex,
not
just
jax,
anybody
that
has
their
can
can
actually
park
into
that
lot
as
well,
but
I
know
it
is
on
the
city's
owner.
The
city
must
then
engage
with
the
owners
of
jax
to
facilitate
that
with
the
the
purse,
the
purchaser.
A
A
So
I
had
asked
for
public
comment:
there
is
a
hand
up
now,
so
that's
why
I
started
it
really
early,
because
I
know
sometimes
that
happens.
So
if
it
is
okay
with
the
motioner
and
the
seconder
to
allow
the
the
member
of
the
public
to
speak,
and
I
apologize
because
we
should
be
going
through
the
roll
call
at
this
point.
So
the
city
clerk
there
is
one
person
from
the
public
to
speak.
Could
you
please
let
that
person.
B
H
H
In
fact,
I
believe
this
is
inconsistent
with
san
bruno's,
bicycle
and
pedestrian
master
plan,
and
this
would
have
a
tremendous
environmental
impact.
That's
detrimental
to
san
bruno,
given
that
prior
to
covid
san
bruno
had
a
tremendous
automobile
traffic
problem
and
we
have
a
parking
problem
and
adding
more
cars
to
it
will
exacerbate
it.
So,
I'm
very
fearful
of
the
environmental
impact
report.
That's
going
to
be
expedited
and
just
gloss
over,
because
this
is
going
to
be
impacting
the
entire
city.
H
H
Non-Automobile
infrastructure,
so
I
would
like
to
keep
that
option
open
or
at
least
have
the
city
council
consider
that
option,
but
with
regards
to
just
selling
automobiles,
it's
going
to
exacerbate
our
problems.
San
bruno
is
already
adjacent
to
san
francisco
international
airport
and
I
believe
that
should
be
san
bruno's
focus
on
redirecting
its
economy,
finding
a
market
source
that
addresses
dealing
with
san
francisco
international
airport.
Thank
you.