Staff Report
PREPARED BY: MATT MORLEY
Director of Parks and Public Works
Reviewed by: Town Manager, Town Attorney, and Finance Director
110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 05/02/2017
ITEM NO: 9
DATE: APRIL 21, 2017
TO: MAYOR AND TOWN COUNCIL
FROM: LAUREL PREVETTI, TOWN MANAGER
SUBJECT: APPROVE AN EXCLUSIVE NEGOTIATING RIGHTS AGREEMENT WITH
PRESIDIO DEVELOPMENT PARTNERS, LLC FOR A MIXED USE PARKING
GARAGE LOCATED DOWNTOWN (224 WEST MAIN STREET)
RECOMMENDATION:
Approve an Exclusive Negotiating Rights Agreement (ENRA) (Attachment 1) with Presidio
Development Partners, LLC (Presidio) for a mixed use public parking and residential
development located downtown (224 West Main Street).
BACKGROUND:
On September 20, 2016, the Town Council authorized the Town Manager to enter
negotiations with Presidio for an ENRA. The ENRA outlines the terms for the preliminary work
necessary to reach agreement on the development of a project. Through an ENRA, the
expectations of both the Town and Presidio are documented and agreed upon. To help with
the garage project, the Town has brought on a consultant, Keyser Marston Associates, who
has significant experience in public private partnership agreements and will guide the Town
throughout the project.
DISCUSSION:
The ENRA provides the opportunity to explore a potential project with commitments from both
Presidio and the Town. For the Town’s part, the Town has engaged solely with Presidio in
working toward a project. Presidio would use this commitment to justify moving forward with
expenditure in the necessary design and studies to fully explore the project as envisioned. The
outcomes of the negotiating period identified in the ENRA are to create the design for a project
PAGE 2 OF 3
SUBJECT: APPROVE AN EXCLUSIVE NEGOTIATING RIGHTS AGREEMENT WITH PRESIDIO
DEVELOPMENT PARTNERS, LLC FOR A MIXED USE PARKING GARAGE
LOCATED DOWNTOWN (224 WEST MAIN STREET)
APRIL 21, 2017
S:\COUNCIL REPORTS\2017\05-02-17\Parking Garage Agreement\Staff Report FINAL.docx 4/27/2017 10:06 AM MM
DISCUSSION (cont’d):
that works for the Town and to facilitate the negotiation of a mutually satisfactory
Predevelopment Facilities Agreement (PFA).
The ENRA identifies several important elements:
Public outreach is critical. The Town and Presidio will engage numerous stakeholders in
order to understand the elements that will help the project be successful and to adjust
the project to accommodate these elements.
A preliminary concept design is necessary to begin the discussion. This concept will
begin to identify the structure and will provide scaled images for the Town and other
stakeholders to provide input. This will be an iterative and interactive stage where the
input drives revisions.
The project design will incorporate a pro forma budget to allow for the Town to
understand how the design will impact the costs. This will allow for discussions on
project financing as well.
The project schedule front loads public outreach, emphasizing the importance of this
element, and outlines timing commitments for deliverables.
The Town will retain its rights for approval of the development proposal as the
permitting authority. Although the goal is to meet housing and parking needs, nothing
in the ENRA commits the Town to proceeding with a project.
The Town will incur expenses for its consulting agreement with Keyser Marston, legal
services, and staff costs associated with the administration and negotiation of the PFA.
Presidio will be responsible for the costs of design and numerous studies. The Town will
have the option to purchase design documents if no project advances with Presidio.
Upon approval of this agreement, Presidio will begin work according to the tasks and timeline
identified in the ENRA.
CONCLUSION:
Staff recommends that the Town Council approve an Exclusive Negotiating Rights Agreement
(ENRA) (Attachment 1) with Presidio Development Partners, LLC (Presidio) for a mixed use
garage located downtown (224 West Main Street).
COORDINATION:
This report has been coordinated with the Town Attorney.
PAGE 3 OF 3
SUBJECT: APPROVE AN EXCLUSIVE NEGOTIATING RIGHTS AGREEMENT WITH PRESIDIO
DEVELOPMENT PARTNERS, LLC FOR A MIXED USE PARKING GARAGE
LOCATED DOWNTOWN (224 WEST MAIN STREET)
APRIL 21, 2017
S:\COUNCIL REPORTS\2017\05-02-17\Parking Garage Agreement\Staff Report FINAL.docx 4/27/2017 10:06 AM MM
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
Attachment:
1. Exclusive Negotiating Rights Agreement