On February 18, 2015, the Successor Agency to the Morgan Hill Redevelopment Agency received
recommendations from the Downtown Opportunity Site RFP Review Committee for the disposition of
Sites 1, 1a, 2, 4 and the Purchase Option for Site 3.
The Successor Agency approved the recommendations which include:
Site 1- Downtown Mall/Granada - Negotiate with City Ventures to determine if a high density
condo/mixed use development project can be supported on the site
Site 1a - 50 E. First Street Duplex - Appraise and offer for independent sale
Site 2 - Royal Clothiers/Tryst - Sell to Lonestar Development for market rate offer of $881,280.
Site 3 - Booksmart - Sell Option to Purchase to City Ventures for $100,000.
Site 4 - Third and Monterey - Sell to the City of Morgan Hill for $525,000, matching the market rate
offer for Site 4 received from Lonestar Development.
Per terms of the previously approved RFQ/P process, to affect the sale, once confirmed by State Department of Finance, the
prospective buyer must make a good faith deposit to the Successor Agency, which deposit will
become non-refundable at the end of a maximum 60 day due diligence period. Subsequently, the
Successor Agency would be poised to prepare sale documents to transfer the property to the buyers
2/18/15 Staff Report to Successor Agency
Video of Report to Succesor Agency
On February 18, 2015 the Morgan Hill City Council approved staff recommendations which include:
Adopt resolution to:
1. Authorize the City Manager to forward a Purchase Offer for Site 4 to the Morgan Hill Oversight
Board in the amount of $525,000 utilizing a loan from the Housing Development Fund, or any
other appropriate fund, which loan would be retired over time by future revenues generated
from the development of the site, including initially the City's property tax derived from the site.
2. Authorize City Manager to pursue immediate development of Site 4 via Public/Private
Partnership once the City purchase of site is approved.
3. Direct staff to analyze the possibility of an Economic Development Incentive Program for small
businesses being potentially displaced on Downtown Opportunity sites 1, 2, and 3.
2/18/15 Staff Report to City Council
Video of Report to City Council
On February 25, 2015 the Oversight Board approved the recommendation to
adopt resolution accepting Successor Agency recommendations (listed above) and directing transmittal to the State Department of Finance (DOF), consistent with the Long Range Property Management Plan
(LRPMP)
2/25/15 Staff Report to Oversight Board
More information about the Downtown Development Opportunity Sites
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