HomeMy WebLinkAboutReso 50-20 Approving a Community Benefit AgreementReso No. 50-20, Item 6.2, Adopted 06/02/20 Page 1 of 2
RESOLUTION NO. 50 - 20
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
* * * * * * * * *
APPROVING A COMMUNITY BENEFIT AGREEMENT
BETWEEN THE CITY OF DUBLIN AND VP-RPG DUBLIN, LLC
WHEREAS, VP-RPG Dublin, LLC, has proposed the construction of the Cambria Hotel
Project (the “project”) in Downtown Dublin at 7950 Dublin Boulevard; and
WHEREAS, the project consists of a new six-story hotel with four stories over two stories
of podium parking, and related landscape and site improvements . The project includes a Site
Development Review Permit to allow construction of the 138-room hotel and a Minor Use Permit
to allow a parking reduction for shared parking between the proposed hotel and an existing
office building; and
WHEREAS, the Planning Commission adopted Resolution No. 20-06 approving the Site
Development Review Permit and Minor Use Permit; and
WHEREAS, the Dublin City Council held a Public Hearing on June 2, 2020 and adopted
a Resolution denying an Appeal and affirming the Planning Commission’s adoption of
Resolution No. 20-06, and approved the Site Development Review Permit and Minor Use Permit
for the proposed project; and
WHEREAS, VP-RPG Dublin, LLC is seeking 52,573 square feet from the non-residential
development pool. In exchange for this allocation, VP-RPG Dublin, LLC will contribute
community benefits in the form of off-site improvements and the design, construction and
installation of a new Downtown Dublin monument sign; and
WHEREAS, the Hotel will supply approximately 50 new full-time jobs to the community
and generate new Transient Occupancy Taxes (TOT) revenue to the City. The hotel
development could yield an estimated annual TOT of $450,000 or $2.5 million over five years.
This estimate is based on an average occupancy rate of seventy-five percent and an average
daily rate of $158; and
WHEREAS, VP-RPG Dublin, LLC will design, construct and install a new Downtown
Dublin monument sign to be located on the corner of San Ramon Road and Dublin Boulevard.
This monument sign would add an entryway sign identifying the Downtown as you enter from
the west side of the city. The estimated cost for the design, construction and installation for the
sign is $200,000; and
WHEREAS, the term of the Agreement shall commence on the Effective Date and shall
remain in effect until the earlier of the following: 1) the Developer has provided the Community
Benefit to the City as provided in Section 3 of th e Agreement, 2) any of the Project Approvals
expires, or 3) Two years after the Effective Date if no building permit has been issued for the
Project.
DocuSign Envelope ID: 7F6C76B6-5ABE-4D56-B943-43857E88D256
Reso No. 50-20, Item 6.2, Adopted 06/02/20 Page 2 of 2
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin
hereby approves the Community Benefit Agreement between the City of Dublin and VP-RPG
Dublin, LLC, as attached as Exhibit A to this Resolution.
BE IT FURTHER RESOLVED that the City Council authorizes the City Manager to
execute the Agreement and gives the City Manager authority to execute any minor amendments
to the Agreement, as needed, to carry out the intent of this Resolution.
PASSED, APPROVED AND ADOPTED this 2nd day of June 2020, by the following vote:
AYES: Councilmembers Goel, Hernandez, Josey, Kumagai and Mayor Haubert
NOES:
ABSENT:
ABSTAIN:
______________________________
Mayor
ATTEST:
____________________________
City Clerk
DocuSign Envelope ID: 7F6C76B6-5ABE-4D56-B943-43857E88D256
CITY OF DUBLIN COMMUNITY BENEFIT PROGRAM AGREEMENT
VP‐RPG Dublin, LLC, 7944‐7950 Dublin Boulevard
This Community Benefit Program Agreement (“Agreement”) is entered into on this day 2nd of
June, 2020, by and between the City of Dublin, a municipal corporation (“City”) and VP‐RPG Dublin, LLC,
a California limited liability company (“Developer”). City and Developer are, from time‐to‐time,
individually referred to in this Agreement as a “Party,” and are collectively referred to as “Parties.”
RECITALS
A.On February 1, 2011, the City adopted Resolution No. 9‐11 establishing a “Downtown Dublin
Specific Plan” (the “Specific Plan”), which sets forth a comprehensive set of guiding principles,
standards, and design guidelines for the implementation of future development in Downtown
Dublin (“the Specific Plan Area”).
B.The Specific Plan regulates the density of development allowed in the Specific Plan Area by
establishing a “Base Floor Area Ratio (FAR)” for development in each of the three districts within
the Specific Plan Area.
C.The Specific Plan also establishes a pool of additional development potential, in the form of
1,320,220 square feet of non‐residential development, 150 hotel rooms and 2,500 residential
dwelling units (collectively “the Excess Capacity”) apportioned between the three districts in the
Specific Plan Area. The pool can be used by developers that wish to develop a project that
exceeds the Base FAR up to a defined “Maximum FAR” and by developers that wish to develop
residential dwelling units. Developers wishing to utilize said Excess Capacity must
participate in the Community Development Program and enter into a Community Benefit
Program Agreement with the City.
D.Developer proposes to develop certain property at 7944‐7950 Dublin Boulevard within the
Specific Plan Area (“the Property”), which is within the Transit Oriented District of the Specific
Plan Area, and as part of its proposal desires to develop a 90,700 square foot, 138‐room, four‐
story hotel on an approximately 76,000 square foot parcel (“the Project”). In exchange for the
use of this excess development capacity in the form of 52,573 square feet of commercial square
footage to enable development of the Project, Developer proposes to provide
transient occupancy tax revenue, enhanced streetscape for the drive aisle off of Dublin Blvd.,
and the design, construction and installation of a new Downtown Dublin monument sign to be
located on the corner of San Ramon Rd. and Dublin Blvd. (“the Community Benefit”).
E.Developer has applied for a Site Development Review for the Property, which approval, if
granted, together with any approvals or permits now or hereafter issued with respect to the
Project are referred to as the “Project Approvals.”
F.The City and Developer have reached agreement with respect to the Community Benefit and
desire to express herein a Community Benefit Program Agreement clearly setting forth the
Community Benefit to be provided by the Developer, and the scope and nature of excess
development capacity to be granted to Developer in exchange for said Community Development.
G.The Project is located within the Downtown Specific Plan area, which was the subject of an
Environmental Impact Report (EIR), State Clearinghouse number 20100022005. The Downtown
Dublin Specific Plan Final EIR was certified by City Council Resolution No. 08‐11 dated February 1,
2011 and updated with an Addendum adopted by the City in Resolution No 50‐14 (“Specific Plan
EIR”). Pursuant to the California Environmental Quality Act (CEQA) Guidelines section 15168, the
Community Benefit Program Agreement is within the scope of the Project analyzed in the Specific
Plan EIR and no further CEQA review or document is required. This Community Program Benefit
Agreement does not impede, impair or otherwise seek to truncate or limit the City discretion in
considering any future Project Approvals for conducting any future CEQA review as required by
applicable law.
NOW, THEREFORE, with reference to the foregoing recitals and in consideration of the mutual promises,
obligations and covenants herein contained, City and Developer agree as follows:
AGREEMENT
1.Relationship of City and Developer.
It is understood that this Agreement is a contract that has been negotiated and voluntarily
entered into by the City and Developer and that the Developer is not an agent of the City. The
City and Developer hereby renounce the existence of any form of joint venture or partnership
between them, and agree that nothing contained herein or in any document executed in
connection herewith shall be construed as making the City and Developer joint venturers or
partners.
2.Effective Date and Term.
2.1 Effective Date. The effective date of this Agreement shall be the Approval Date.
Term. The term of this Agreement shall commence on the Effective Date and shall extend until the
earlier of the following: 1) the Developer has provided the Community Benefit to the City as provided in
Section 3 of this Agreement, 2) any of the Project Approvals expires, or 3) two years after the Effective
Date if no building permit has been issued for the Project.
3.Community Benefit to Be Provided by Developer.
3.1 Transient Occupancy Tax. Developer shall provide the following Community Benefit to the
City: a 138‐room Hotel which will supply more than 35 full‐time jobs to the community
and generate new Transient Occupancy Tax revenue to the City. The hotel development
is estimated to yield an annual TOT of $450,000.
3.2 Streetscape Improvements. In addition to the Developer’s contribution of a 138‐room
hotel, the creation of new full‐time jobs and transient occupancy tax, Developer shall
enhance the streetscape for the drive aisle (in between the Hooter’s building and the
Video Only building) into the property from Dublin Blvd. creating a more welcoming and
inviting corridor into the property. These enhancements would provide a fresh look and
feel of a city street into the property. Additionally, the applicant is working in good faith
with the three adjacent property owners to improve the easements in hopes of adopting
a streetscape improvement plan for the drive aisle from Regional Street.
3.3 Downtown Dublin Monument Sign. Lastly, in addition to the Developer’s contribution of
a 138‐room hotel, the creation of full‐time jobs, transient occupancy tax, and streetscape
improvements, Developers shall design, construct and install a new Downtown Dublin
monument sign similar to what is shown in Exhibit A, to be located on the corner of San
Ramon Road and Dublin Boulevard. The estimated cost for the design, construction and
installation for the sign is $200,000. The Developer shall provide the Community Benefit
to the City no later than the time of issuance of the first building permit for the Project.
In no event shall the City be required to issue a building permit unless the Community
Benefit has been provided to the City.
4.Security Deposit.Within 14 days of the Effective Date of this Community Benefit Program
Agreement, Developer shall furnish City a corporate surety bond issued by a company duly and
legally licensed to conduct a general surety business in the State of California, or an instrument
of credit equivalent to $200,000. Said security is intended to secure the provision by the
Developer of the Community Benefit described in Section 3 of this Agreement. If Developer fails
to provide the Community Benefit during the term of this Agreement, the deposit shall be
forfeit, and City shall have no obligation to return it to Developer. However, City shall return the
entire deposit if this Agreement expires without any development of the Project by the
Developer or if the Developer elects in writing to abandon its rights under the Project Approvals
and this Agreement at any time prior to the expiration of the Agreement, in which case the
Agreement shall automatically terminate.
5.
5.1
5.2
Reservation of Excess Development Capacity.
Reservation of Excess Capacity. During the term of the Agreement, and so long as each
of the Project Approvals remain in effect, City shall reserve 52,573 square feet of
commercial space allocated to the Transit Oriented District of the Specific Plan Area for
Developer’s use. If Developer fails to provide the Community Benefit during the
term of this Agreement, the Excess Capacity reserved for Developer shall
revert to the pool maintained by the City.
Limitation on City’s Obligation. This Agreement shall not be construed to require the City
to issue any Project Approval to the Developer. City is solely required to reserve the
Excess Capacity identified in Section 5.1 of this Agreement. Other than this obligation,
nothing in this Agreement shall prevent the City from denying or conditionally approving
any subsequent land use permit or authorization for the Project. All of City’s applicable
ordinances, resolutions, rules, regulations and official policies shall apply to the Project
including, but not limited to, those governing the permitted uses of the Property, design
and construction of the Project, density and intensity of use of the Project, and the
maximum height, bulk and size of proposed buildings within the Project.
6. Amendment or Cancellation.
6.1 Amendment by Mutual Consent. This Agreement may be amended in writing from time
to time by mutual consent of the parties.
7. Severability.
The unenforceability, invalidity or illegality of any provisions, covenant, condition or term of this
Agreement shall not render the other provisions unenforceable, invalid or illegal, unless a Party’s
consideration materially fails as a result.
8. Attorneys’ Fees and Costs.
If the City or Developer initiates any action at law or in equity to enforce or interpret the terms
and conditions of this Agreement, the prevailing party shall be entitled to recover reasonable
attorneys’ fees and costs in addition to any other relief to which it may otherwise be entitled. If
any person or entity not a party to this Agreement initiates an action at law or in equity to
challenge the validity of any provision of this Agreement, the parties shall cooperate in defending
such action. Developer shall bear its own costs of defense as a real party in interest in any such
action, and shall reimburse the City for all reasonable court costs and attorneys’ fees expended
by the City in defense of any such action or other proceeding.
9. Assignment.
Developer may wish to sell, transfer or assign all or portions of the Property to other developers
(each such other developer is referred to as a “Transferee”). In connection with any such sale,
transfer or assignment to a Transferee, Developer may sell, transfer or assign to such Transferee
its rights and obligations under this Agreement, so long as said transfer would not result in
development of the Property in excess of the FAR permitted by the Project Approvals. Affiliates
of Developer, including ventures in which Developer is the development partner but not the
majority owner, will not be considered Transferees for these purposes. No such transfer, sale or
assignment of Developer’s rights, interests and obligations hereunder shall occur without prior
written approval by the City Manager. The City Manager shall not unreasonably withhold
approval of any transfer and the sole criterion shall be that the proposed Transferee possesses
the financial ability to satisfy the obligations of Developer pursuant to Sections 3.1 and 3.2 of this
Agreement. Developer shall submit to the City Manager any notice of Developer’s intent to
transfer, sell or assign its interest, which shall include documentation that the Transferee satisfies
the criterion. Within five (5) business days after Developer submits its notice, the City Manager
may request any commercially reasonable documents, certifications and other information
necessary to determine whether the criterion is met, and the City Manager’s failure to request
such additional information shall constitute a determination that no such further information is
needed. The City Manager will make a written determination on any transfer, sale or assignment
on or before the later of: 1) five (5) days after Developer’s submission of additional information if
requested by the City Manager, or ten (10) calendar days after Developer’s notice of the proposed
transfer, and the City Manager’s failure to object in writing to the transfer, sale or assignment
within such time period shall constitute approval of the transfer.
10.Notices.
All notices required to be given to City under this Agreement shall be in writing and shall be
addressed as follows:
City Manager
City of Dublin
100 Civic Plaza
Dublin, CA 94568
Phone: (925) 833‐6650
Fax: (925) 833‐6651
Email: city.manager@dublin.ca.gov
All notices required to be given to Developer under this Agreement shall be in writing and shall
be addressed as follows:
VP‐RPG Dublin, LLC
L.Gerald Hunt
1840 San Miguel Dr., Suite 206
Walnut Creek, CA 94596
Phone: (925) 980‐7875
Email: jerry@rubiconpg.com
Village Investment Partners, L.P.
940 Emmett Avenue, Suite 200
Belmont, California 94002
Attention: John Glikbarg
Phone: (415) 227‐2208
Email: john@villageprop.com
11.Agreement is Entire Understanding.
This Agreement constitutes the entire understanding and agreement of the parties.
12.Legal Authority.
Each individual executing this Agreement hereby represents and warrants that he or she has fullpower and authority under the entity's governing documents to execute and deliver thisAgreement in the name of and on behalf of the company and to cause the entity to perform itsobligations under this Agreement.
13.No Third Party Beneficiaries.This Agreement is made and entered into for the sole benefit of the Parties and their successorsand assigns. No other persons shall have any right of action based upon any provision of thisAgreement.
14.Exhibits.The following documents are referred to in this Agreement and are attached hereto andincorporated herein as though set forth in full:
Exhibit A Downtown Dublin Monument Sign Rendering
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date and year first above written.
3350067.1
CITY OF DUBLIN
By: __________ _ Linda Smith, City Manager
Attest:
Marsha Moore, City Clerk
Approved as to form
John D. Bakker, City Attorney
VP-RPG DUBLIN, LLC, a California limited liability company
By: Delaware Retail Control, LLC, a Delaware limited liability company Its: Manager
By: Its:
Name: _;J.=..,,,r_c;,_h-'-'V\_....:...._..,__...J.!._"-'-'�-
Title: ___ V _____ _