City Council

City of Sunnyvale Meeting Minutes City Council Thursday, December 10, 2015 10:30 AM Council Chambers and West Conference Room, City Hall, 456 W. Olive Ave., Sunnyvale, CA 94086 Special Meeting: Joint Meeting and Study Session of City Council and Successor Agency to the Redevelopment Agency 10:30 A.M. PUBLIC HEARING / GENERAL BUSINESS 1 Call to Order in the Council Chambers (Open to the Public) Mayor/Agency Member Griffith called the meeting to order in Counciil Chambers and led th salute to the flag. 2 Roll Call Present: 6 - Mayor Jim Griffith Vice Mayor Tara Martin-Milius Councilmember David Whittum Councilmember Jim Davis Councilmember Glenn Hendricks Councilmember Gustav Larsson Absent: 1 - Councilmember Pat Meyering 3 Public Comment None. 4 Public Hearing/General Business 15-0444 Direction on Article 6 of the 2010 Amended Disposition and Development and Owner Participation Agreement (ADDOPA) for Transfer of the Sunnyvale Town Center Property City Manager Deanna Santana and Assistant City Manager, Chief of Downtown Planning Hanson Hom provided the staff report. Scott Johnson, CPA Partner, Macias Gini & O’Connell LLP (MGO) Advisory Services presented MGO’s Independent Evaluation Report on the Article 6 Criteria for the Proposed Transfer. Tim Kelly, Keyser Marston Associates (KMA), Advisors in Public/Private Real City of Sunnyvale Page 1 City Council Meeting Minutes December 10, 2015 Estate Development, provided information regarding the KMA peer review of the MGO findings. Council/Agency recessed at 12:03 p.m. Council/Agency reconvened at 1 p.m. with all Councilmembers/Agency Members present. Present: 7 - Mayor Jim Griffith Vice Mayor Tara Martin-Milius Councilmember David Whittum Councilmember Pat Meyering Councilmember Jim Davis Councilmember Glenn Hendricks Councilmember Gustav Larsson 15-0444 Direction on Article 6 of the 2010 Amended Disposition and Development and Owner Participation Agreement (ADDOPA) for Transfer of the Sunnyvale Town Center Property The Development Team provided background information on the respective business partners: Drew Hudacek, Sares Regis Group of Northern California Morgan Lingel, JP Morgan Real Estate Asset Management Group Deke Hunter, Hunter Properties Inc. David Ash, Senior Vice President, Wells Fargo Public Hearing opened at 1:55 p.m. Russ Melton, speaking on his own accord, spoke in support of Alternative 1. Steve Scandalis spoke regarding the importance of exercising caution in dealing with Limited Liability Companies (LLCs) and suggested asking JP Morgan to purchase the Macy’s property from the former developer. Public Hearing closed at 1:59 p.m. MOTION: Councilmember/Agency Member Hendricks moved and Councilmember/Agency Member Larsson seconded the motion to approve Alternative 1: Acknowledge that the proposed Transferee satisfies the four Article 6 criteria in the ADDOPA for transfer of the Sunnyvale Town Center property. SUBSTITUTE MOTION: Councilmember/Agency Member Whittum moved a City of Sunnyvale Page 2 City Council Meeting Minutes December 10, 2015 substitute motion and Councilmember/Agency Member Meyering seconded to take this action on December 15. The substitute motion failed by the following vote: Yes: 3 - Councilmember Whittum Councilmember Meyering Councilmember Davis No: 4 - Mayor Griffith Vice Mayor Martin-Milius Councilmember Hendricks Councilmember Larsson The main motion carried by the following vote: Yes: 4 - Mayor Griffith Vice Mayor Martin-Milius Councilmember Hendricks Councilmember Larsson No: 3 - Councilmember Whittum Councilmember Meyering Councilmember Davis MOTION: Councilmember/Agency Member Meyering moved and Councilmember/Agency Member Davis seconded the motion to hold the Study Session in the Council Chambers. The motion failed by the following vote: Yes: 3 - Councilmember Whittum Councilmember Meyering Councilmember Davis No: 4 - Mayor Griffith Vice Mayor Martin-Milius Councilmember Hendricks Councilmember Larsson City Manager Deanna Santana provided closing comments. Mayor Griffith provided closing comments and adjourned the meeting to Study City of Sunnyvale Page 3 City Council Meeting Minutes December 10, 2015 Session at 2:40 p.m. STUDY SESSION Call to Order in the West Conference Room (Open to the Public) Vice Mayor/Agency Member Martin-Milius called the Study Session to order in the West Conference Room at 2:43 p.m. Roll Call Present: 7 - Mayor Jim Griffith Vice Mayor Tara Martin-Milius Councilmember David Whittum Councilmember Pat Meyering Councilmember Jim Davis Councilmember Glenn Hendricks Councilmember Gustav Larsson Study Session Councilmember/Agency Member Larsson stated he lives near the downtown and he would recuse himself from participation in the discussion of the item. Councilmember/Agency Member Davis stated he resides near the proposed project but has determined he did not need to recuse himself from participating in the discussion. Councilmember/Agency Member Whittum stated he resides near the proposed project but does not believe he needs to recuse himself from participating in the discussion. MOTION: Councilmember/Agency Member Meyering moved and Councilmember/Agency Member Davis seconded the motion to conduct the meeting in Council Chambers. The motion carried by the following vote: Yes: 4 - Councilmember Whittum Councilmember Meyering Councilmember Davis Councilmember Hendricks No: 2 - Mayor Griffith Vice Mayor Martin-Milius Recused: 1 - Councilmember Larsson City of Sunnyvale Page 4 City Council Meeting Minutes December 10, 2015 Council/Agency reconvened in Council Chambers. Mayor/Agency Member Griffith called the Study Session to order at 3:05 p.m. Mayor/Agency Member Griffith restated that Councilmember/Agency Member Larsson has recused himself from the discussion and remained in the room. 15-1098 Discussion on Status of Sunnyvale Town Center Project and Presentation on Market Assessment Assistant City Manager, Chief of Downtown Development Hanson Hom provided the staff report. Tim Kelly, Keyser Marston Associates, provided information and a presentation on the market assessment. Public Comment Public Comment opened at 4:30 p.m. No speakers. Public Comment closed at 4:30 p.m. Adjourn Special Meeting Mayor Griffith adjourned the Study Session at 4:30 p.m. City of Sunnyvale Page 5