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TO:, REDEVELOPMENT AGENCY C,
�.. County
FROM: John Sweeten
Executive Director
DATE: December 1.1 , 2001
SUBJECT: Assignment Agreement for Portion of Area 713 — Pleasant Hill BART Station Area
SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
APPROVE and AUTHORIZE Deputy Director — Redevelopment to execute a Consent and
Agreement between the Redevelopment Agency and EOP - Oak Road I, LLC, a Delaware
limited partnership, and EOP — Oak Road II, LLC, a Delaware limited partnership, that will
assign all rights and obligations for a portion of the property under a Disposition and
Development Agreement dated June 26, 1986 as amended.
FISCAL IMPACT
None. No General Funds are involved.
CONTINUED ON ATTACHMENT: _ X_ YES SIGNATURE:
,RECOMMENDATION OF EXECUTIVE DIRECTOR COMM ATION OF ENCY
COMMITTEE ✓APPROVE OTHER
"SIGNATURE(S):
ACTION OF AGE ON Dprpmher 1 1 _ 9nn1 APPROVED AS RECOMMENDED _OTHER
VOTE OF COMMISSIONERS
I HEREBY CERTIFY THAT THIS IS A
X UNANIMOUS (ABSENT None ) TRUE AND CORRECT COPY OF AN
AYES: NOES: ACTION TAKEN AND ENTERED ON THE
ABSENT: ABSTAIN: MINUTES OF THE REDEVELOPMENT
AGENCY ON THE DATE SHOWN.
Contact: Jim Kennedy
335-1255 ATTESTEDE)e„pmhPr 11 , gnn1
cc: County Administrator's Office JOHN SWEETEN
County Counsel AGENCY SECRETARY
Community Development
Redevelopment Agency
via: Redevelopment Agency
Spieker Properties _
Equity Office Properties BY �MzDEPUTY
Goldfarb & Lipman
W:PersonakBOAR DO RDERS\Board.RDA.PHBART.7B.12.01
BACKGROUND/REASONS FOR RECOMMENDATIONS
On June 26, 1986 the Redevelopment Agency entered into a Disposition and
Development Agreement with Taylor/Ward Associates for the development of Areas
7B and 8 at the Pleasant Hill BART Station Area. Said DDA was subsequently
amended in 1989 and 1998. The DDA was assigned to Sears Development
Company (aka Homart Development) in 1989 as well. In 1997, the property was
sold and the DDA was assigned to Lincoln Property Company No. 2314 Limited,
Partnership. In 1998 a portion of the property was sold to Homestead Village, Inc.
and to Prime Hospitality Corporation along with an Assignment of the DDA. Neither
Homestead Village, Inc. or Prime Hospitality Corporation were to develop a
financially feasible hotel. Spieker Properties, LP, the developer of Treat Towers
(Area 10A), purchased the property with the intent to develop an office project. An
office use is allowed under the Pleasant Hill BART Station Area Specific Plan
subject to a modified Final Development Plan process. A modified Final
Development Plan for a seven story 195,000 sq.ft. office building was approved for
the northern portion of Area 7B in April, 2001. Spieker Properties, LP recently
merged into EOP Operating Limited Partnership, a Delaware limited partnership,
and Equity Office Properties Trust, a Maryland real estate investment trust. In order
to complete the merger, the rights and obligations of the developer for the subject
portion of the property, and the DDA as amended need to be assigned to EOP
Operating Limited Partnership and Equity Office Properties Trust. Agency staff has
reviewed the current credentials and financial information regarding EOP Operating
Limited Partnership and Equity Office Properties Trust and have found that they
meet the minimum requirements set forth in the DDA. The Consent and Agreement
also sets forth the requirements for sale by the Agency to EOP—Oak Road I, LLC a
small property of 1,015 square feet to complete the assemblage of the development
site as contemplated by the 1986 Disposition and Development Agreement. The
value of$15/sq.ft. is representative of the residual value of the small remnant piece.
W:PersonakBOARDORDER&Board.RDA.PHBART.7B.12.01