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HomeMy WebLinkAbout5.12 Purchase and Sale Agreement with the Dublin Unified School District to convey the Dublin Crossing Development School Site (Assessor’s Parcel Number 986-0001-001-32) STAFF REPORT CITY COUNCIL Page 1 of 4 Agenda Item 5.12 DATE: June 3, 2025 TO: Honorable Mayor and City Councilmembers FROM: Colleen Tribby, City Manager SUBJECT: Purchase and Sale Agreement with the Dublin Unified School District to convey the Dublin Crossing Development School Site (Assessor’s Parcel Number 986-0001-001-32) Prepared by: Felicia Escover, Economic Development Manager EXECUTIVE SUMMARY: The City Council will consider approval of a Purchase and Sale Agreement (PSA) between the City of Dublin and the Dublin Unified School District (DUSD) for the conveyance of Parcel D (Assessor’s Parcel Number 986-0001-001-32) within the Dublin Crossing development. The property, previously acquired by the City at no cost as part of the Dublin Crossing Development Agreement, has been leased to DUSD since 2018 for the construction of a public school. The PSA formalizes the transfer of fee title to DUSD for a nominal cost of $1.00. The DUSD Board approved the PSA and Resolution No. 2024/25 -53 at its meeting on May 13, 2025. STAFF RECOMMENDATION: Adopt the Resolution Approving the Purchase and Sale Agreement with the Dublin Unified School District for the Dublin Crossing Development School Site (Assessor’s Parcel Number 986-0001-001-32) and Authorizing the City Manager to Execute the Agreement and Take Related Actions. FINANCIAL IMPACT: The purchase price of the property is $1.00. All associated closing costs, estimated at approximately $50,000, will be paid by DUSD. 397 Page 2 of 4 DESCRIPTION: Background - Dublin Crossing Project The Dublin Crossing Project is a 189-acre master-planned, mixed-use development centrally located within the City of Dublin, generally bounded by Scarlett Drive to the west, Dublin Boulevard to the south, Arnold Road to the east, and 5th Street to the nort h. The project site includes land formerly owned by the U.S. Army (Camp Parks), the Alameda County Surplus Property Authority, and the National Aeronautics and Space Administration. The concept for Dublin Crossing originated in 2004 when the City partnere d with the U.S. Army Reserve to conduct a strategic visioning process. This process led to a shared vision for the redevelopment of a portion of the Camp Parks Reserve Forces Training Area. After a competitive process, SunCal Companies was selected by the Army in 2008 as the master developer, and in April 2011, a Real Property Exchange Agreement was finalized between the Army and SunCal. This agreement laid the groundwork for a phased land transfer, with SunCal responsible for delivering new military facilities in exchange for development rights. On November 5, 2013, following several years of planning, public input, and environmental review, the City Council adopted the Dublin Crossing Specific Plan (Resolution 187 -13) and certified the project’s Environmental Impact Report (Resolution 186-13). The City also adopted a Development Agreement (Ordinance 08-13) with Dublin Crossing Venture LLC (SunCal) to implement the project. The land plan and infrastructure phasing were driven by the Army’s timeline and SunCal’s obligation to construct certain facilities before acquiring land in phases. Subsequent amendments to the Specific Plan and Development Agreement were adopted by the City Council in 2015 (Amendment No. 1) and 2016 (Amendment No. 2). These amendments facilitated the City's acquisition of the 12-acre school site. Future School Site A key component of the Dublin Crossing Specific Plan is the inclusion of a 12-acre school site (Parcel D), which was set aside to address the increasing demand for school facilities in eastern Dublin. The site is centrally located within the development and was designed to accommodate approximately 900 students. Recognizing that DUSD faced barriers to acquiring land at the then-estimated value of $36 million, the City initiated discussions with the developer in 2014 to explore mechanisms to facilitate the school’s development. These discussions resulted in a revised entitlement framework and Amendment No. 1 to the Development Agreement, which allowed the City to acquire Parcel D at no cost. To formalize the City's partnership with DUSD, the parties executed a Memorandum of Understanding (MOU) on May 19, 2015, which was later amended in 2016. The MOU established a framework under which the City would lease Parcel D to DUSD f or $1.00 per year, with an exclusive option for the District to purchase the property under specified 398 Page 3 of 4 conditions. On May 15, 2018, the City and DUSD entered into a Ground Lease and Property Option Agreement. This agreement granted the District immediate rights to develop the site while reserving the opportunity to acquire fee title in the future. Construction of Shamrock Hills School began in 2023, and on March 28, 2024, DUSD submitted formal notice to exercise its purchase option. Purchase and Sale Agreement Following the process outlined in the MOU, the parties finalized a Purchase and Sale Agreement (PSA) that conveys Parcel D to DUSD for $1.00, with the District covering all escrow and closing costs. The DUSD Board of Trustees approved the PSA and adopted Resolution No. 2024/25-53 on May 13, 2025. Joint Use Facilities As part of the Purchase and Sale Agreement (PSA) and consistent with prior agreements including the 2018 Ground Lease and Property Option Agreement, the City will retain joint use rights to several recreational facilities constructed on the 12 -acre school site. These joint use facilities are intended to benefit both school operations and the broader Dublin community, ensuring that the site serves as a shared asset. Key terms outlined in the PSA include:  No-Cost Access: DUSD will make the joint use facilities available to the City at no cost.  Facility Scope: At a minimum, the Joint Use Facilities will include: o The multi-purpose room (e.g., gymnasium) o Blacktop areas (e.g., outdoor courts/playgrounds) o The athletic field area  Field Access: DUSD and the City will work to ensure that at least three acres of the field area will be included in the joint use facilities to accommodate after-hours park and recreational needs.  Total Area: The goal is for the total joint use area to comprise at least five acres of the overall 12-acre site.  Design Collaboration: DUSD will consult with the City during the design phase to ensure the facilities support both school and community uses.  Maintenance Standards: DUSD will maintain the field areas according to agreed-upon standards outlined in the PSA. A formal Joint Use Agreement will be established prior to the opening of the school as required by the terms of the PSA. STRATEGIC PLAN INITIATIVE: None. 399 Page 4 of 4 NOTICING REQUIREMENTS/PUBLIC OUTREACH: The City Council Agenda was posted and a copy of the Staff Report was shared with DUSD. ATTACHMENTS: 1) Resolution Approving the Purchase and Sale Agreement with the Dublin Unified School District for the Dublin Crossing Development School Site (Assessor’s Parcel Number 986- 0001-001-32) and Authorizing the City Manager to Execute the Agreement and Take Related Actions 2) Exhibit A to the Resolution – Purchase and Sale Agreement 400 Attachment 1 Reso. No. XX-25, Item X.X, Adopted XX/XX/2025 Page 1 of 2 RESOLUTION NO. XX – 25 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN APPROVING THE PURCHASE AND SALE AGREEMENT WITH THE DUBLIN UNIFIED SCHOOL DISTRICT FOR THE DUBLIN CROSSING DEVELOPMENT SCHOOL SITE (ASSESSOR’S PARCEL NUMBER 986-0001-001-32) AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE AGREEMENT AND TAKE RELATED ACTIONS WHEREAS, on November 5, 2013, the City Council adopted the Dublin Crossing Specific Plan (Resolution No. 187-13) and certified the related Environmental Impact Report (Resolution No. 186-13), authorizing the development of a 189-acre mixed-use community that includes a 12- acre school site; and WHEREAS, the City entered into a Development Agreement with Dublin Crossing Venture LLC (Ordinance No. 08-13), which was later amended in 2015 and 2016 to facilitate the City's acquisition of Parcel D at no cost, allowing it to be set aside for future school development ; and WHEREAS, on May 19, 2015, the City and the Dublin Unified School District (DUSD) executed a Memorandum of Understanding (MOU), later amended, which established a framework for leasing Parcel D to DUSD for $1.00 per year with an exclusive purchase option; and WHEREAS, on May 15, 2018, the City and DUSD entered into a Ground Lease and Property Option Agreement, granting DUSD the right to construct a public school on Parcel D and to later acquire fee title; and WHEREAS, DUSD has exercised its option to purchase the site and, on May 13, 2025, the DUSD Board of Trustees approved the Purchase and Sale Agreement and adopted DUSD Resolution No. 2024/25-53; and WHEREAS, under the terms of the Purchase and Sale Agreement, the City will convey Parcel D (Assessor’s Parcel Number 986-0001-001-32) to DUSD for a nominal price of $1.00, with DUSD responsible for all associated closing costs; and WHEREAS, the Purchase and Sale Agreement ensures that the City will retain joint use rights to several recreational facilities constructed on the site, including the multi-purpose room, blacktop, and at least three acres of field area, with the intent that at least five acres of the sit e will be available for shared community and school use at no cost to the City. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin Approve the Purchase and Sale Agreement between the City of Dublin and the Dublin Unified School District, in substantially the form attached hereto as Exhibit A and authorizes the City Manager to execute the Purchase and Sale Agreement and all related documents necessary to complete the conveyance of Assessor’s Parcel Number 986 -0001-001-32 to the Dublin Unified School District. BE IT FURTHER RESOLVED that the City Manager, or designee, is authorized to execute Exhibit A, and make any necessary, non-substantive changes to Exhibit A to carry out the intent of this Resolution. 401 Reso. No. XX-25, Item X.X, Adopted XX/XX/2025 Page 2 of 2 PASSED, APPROVED AND ADOPTED this 3rd day of June 2025, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ______________________________ Mayor ATTEST: _________________________________ City Clerk 402         Attachment 2 403          404          405          406          407          408          409          410          411          412          413          414          415          416          417          418          419          420          421          422          423          424          425          426          427          428          429