Special Meeting of the Policy Development & Internal Operations Committee

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COMMITTEE MEMBERS Edi E. Birsan, Chair Carlyn S. Obringer, Member Civic Center 1950 Parkside Drive Concord, CA 94519 www.cityofconcord.

1 COMMITTEE MEMBERS Edi E. Birsan, Chair Carlyn S. Obringer, Member Civic Center 1950 Parkside Drive Concord, CA Special Meeting of the Policy Development & Internal Operations Committee Wednesday, January 24, :30 p.m. Garden Conference Room, Wing A 1950 Parkside Drive AGENDIZED ITEMS The public is entitled to address the Committee on items appearing on the agenda before or during the Committee s consideration of that item. Each speaker will be limited to approximately three minutes. 1. ROLL CALL 2. PUBLIC COMMENT PERIOD 3. REPORTS a. Discuss Hall Equities Group's Request for an Exclusive Negotiating Agreement for City property Located in Downtown Concord for a Mixed Use Sports Stadium Anchored Mixed-Use Master Plan. Report by John Montagh, Economic Development Manager. 4. ADJOURNMENT ADA NOTICE AND HEARING IMPAIRED PROVISIONS In accordance with the Americans with Disabilities Act and California Law, it is the policy of the City of Concord to offer its public programs, services and meetings in a manner that is readily accessible to everyone, including those with disabilities. If you are disabled and require a copy of a public hearing notice, or an agenda and/or agenda packet in an appropriate alternative format; or if you require other accommodation, please contact the ADA Coordinator at (925) , at least five days in advance of the hearing. Advance notification within this guideline will enable the City to make reasonable arrangements to ensure accessibility. Distribution: City Council Valerie Barone, City Manager Susanne Brown, City Attorney Kathleen Salguero Trepa, Assistant City Manager Joelle Fockler, City Clerk 1

2 3.a Staff Report Date: January 24, 2018 To: From: Reviewed by: Prepared by: Subject: Council Committee on Policy Development and Internal Operations Valerie J. Barone, City Manager Andrea Ouse, Director of Community and Economic Development John Montagh, Economic Development Manager (925) Discuss Hall Equities Group's Request for an Exclusive Negotiating Agreement for City property Located in Downtown Concord for a Mixed Use Sports Stadium Anchored Mixed-Use Master Plan Report in Brief City Staff received a letter from Hall Equities Group, dated January 10, 2018, (Attachment 1) requesting an Exclusive Negotiation Agreement between Hall Sports Ventures and the City of Concord for the City s three acre vacant parcel (Property), located at the corner of Oak and Galindo Streets, in order to pursue a mixed use master plan sports stadium anchored mixed-use development. Staff is bringing forward Hall Equities Group letter with a recommendation that the Committee direct staff to work with Hall Sports Venture to negotiate an Exclusive Negotiating Agreement (ENA) in its pursuit of a master plan mixed use development. An ENA would set forth the terms and conditions under which the City and Hall Sports Ventures would conduct negotiations regarding a proposed Disposition and Development Agreement (DDA) with respect to the sale of City property and the project. If an ENA between Hall Sports Ventures and City staff can be negotiated, staff would then bring forward the negotiated ENA to the full City Council for its review and consideration. Having an ENA will allow Hall Sports Ventures to explore the feasibility of this master plan concept with other property owners in the area. Recommended Action Direct staff to negotiate an Exclusive Negotiation Agreement with Hall Sports Ventures. Page 1 of 8

3 Committee Report Agenda Item No. 3.a January 24, 2018 Background The City of Concord owns the Property located adjacent to the Concord Police Headquarters and near downtown Concord BART (Attachment 2). The Property was formerly owned by the Concord Redevelopment Agency, which was dissolved along with all redevelopment agencies in the state in One of the results of redevelopment dissolution was that certain properties owned by the former Concord Redevelopment Agency transferred to the City for future development. Net proceeds from the sale of properties held for future development are to be remitted to affected taxing entities through the County Auditor. The City has control over who it sells property held for development to and what is ultimately developed on the parcel. The former Concord Redevelopment Agency and the City of Concord have always considered this Property as a catalyst development site for the downtown due to its size, location in the downtown, and proximity to downtown Concord BART. Hall Equities Group, led by Mark Hall, is a long standing privately held full service real estate group based in Walnut Creek. Hall Equities has a long history of commercial development and more recently hotel development. Hall Equities manages 165 properties representing 8 million square feet in 16 states. The January 10, 2018, letter states that Hall Sports Ventures acquired the rights for a United Soccer League (USL) franchise for the Oakland East Bay area. The exclusive territory for the franchise includes all of Contra Costa, Alameda, and Santa Clara Counties and portions of Napa and Solano Counties. There are two professional men s soccer leagues in the United States: Division I (Major League Soccer) and Davison II (USL). USL operated in 30 markets in 20 US states and two Canadian provinces for the 2017 season. Hall Sports Ventures also states it has the right to establish and operate a professional USL Divisions III development team as well as the potential to acquire a franchise for a National Women s Soccer League team. Through an affiliate, Hall Sports Ventures runs high level soccer related training in the Shadelands in Walnut Creek. Analysis Hall Sport Ventures proposes to pursue a master planned development that would include a soccer specific stadium that seats up between 15,000 to 18,000 people. The development would include hotels, conference facility, retail, commercial, residential and other uses. To be feasible, the project would include additional properties, including BART owned property. In order for Hall Sports Venture to pursue the feasibility of its master plan concept, it is seeking an ENA with the City. An ENA with the City does not obligate the City to sell its property to Hall Sports Ventures but sets forth the terms in which the City would Page 2 of 8

4 Committee Report Agenda Item No. 3.a January 24, 2018 negotiate the DDA with Hall Sports Venture. An ENA would provide Hall Sports Ventures with a level of commitment from the City that it is interested in the proposal and would show other stakeholders/property owners that Hall Sports Ventures plan has credibility when it speaks or negotiates with other parties. Proposed Process If the Committee directs staff to negotiate an ENA with Hall Sports Ventures, staff will begin to work with Hall Sports Ventures to draft an ENA for City Council s consideration. In general the ENA would have the following key deal terms: A set negotiating period so the City s property is not tied up for an extended period of time; A negotiated deposit amount Hall Sports Ventures will fund to pay for attorney fees and consultants so the City does not have out-of-pocket expenses incurred in carrying out its obligations under the ENA; The negotiations would be based on Hall Sports Ventures proposed development concept once finalized; If the Council approves an ENA, the ENA does not obligate either the City or Hall Sports Ventures to enter into a DDA; and The ENA would state that the parties acknowledge that, in conjunction with City s consideration of any DDA for approval, it will be necessary to comply with the provisions of the California Environmental Quality Act (CEQA). All costs associated with preparing applicable CEQA documents and processing land use entitlements, approvals, and permits relating to the proposed Project shall be borne by Hall Sports Ventures. If the negotiated ENA is approved by City Council, Hall Sport Ventures would commence its work to determine the feasibility of the master plan concept and negotiate with other parties including BART for its property (parking lot) in downtown Concord for incorporation into the master plan. If Hall Sports Ventures determines its master plan concept is feasible, then staff would negotiate a Disposition and Development Agreement that would ultimately come before the City Council for consideration for the City property. Staff s initial assessment of Hall Sports Venture s proposal is that it is intriguing and is worth investing time to determine the proposal s feasibility. The conceptual scope of the master plan concept supports the City s and former Redevelopment Agency s concept of a catalyst development. If successful, the development could provide a unique anchor development that would draw new customers and guests to the downtown, supporting existing businesses and investment in the downtown. A successful Page 3 of 8

5 Committee Report Agenda Item No. 3.a January 24, 2018 entertainment anchor of this magnitude could support office leasing and residential living in the downtown. Financial Impact There would be some staff time and outside attorney costs associated with negotiating the ENA. Hall Sports Ventures would fund the legal fees and other related cost with negotiating the ENA. Staff estimates $15,000 to develop and bring an ENA to the full City Council for its consideration. Public Contact The Agenda was posted. Attachments 1. Hall Equities Group Request Letter 2. Map of City Property Page 4 of 8

6 Attachment 1 January 10, 2018 Valerie Barone, City Manager City of Concord 1950 Parkside Drive Concord, CA VIA Re: Request for an Exclusive Negotiation Agreement with the City of Concord for Proposed Stadium Master Development Ms. Barone, Hall Equities Group, on behalf of Hall Sports Ventures, LLC, respectfully requests the City of Concord to enter into an Exclusive Negotiation Agreement ( ENA ) with Hall Sports Ventures to negotiate an agreement for the development of a mixed-use project, anchored by a Soccer-specific stadium of approximately 15,000-18,000 seat capacity, potential multiple hotels, convention center, and residential, retail or commercial office space on land which includes the City of Concord Successor Agency-owned property on the corner of Oak Street and Galindo Street extending towards the Grant Street intersection with the BART station. Soccer is the world s largest sport and the only common global sport which transcends and bridges national borders, cultures, religions, and languages. Approximately four billion people follow Soccer globally. Already the dominant sport in Europe, the Mid-East, Africa, Central America, and South America, Soccer is also the fastest growing sport in Asia and North America. The United States Soccer Federation ( USSF ) governs most levels of Soccer in the United States, including the national teams, professional leagues, and various amateur leagues. Currently, there are two professional men s Soccer leagues in the United States, the Division I Major League Soccer ( MLS ) and the Division II United Soccer League ( USL ). In January of 2017, USSF granted the USL Pro League Official Division II status, recognizing the significant investment and high level of operating excellence of the USL and its member clubs. The USL has more than doubled in size since 2014 and is one of the most prominent Division II professional Soccer leagues in the world, with thirty markets in twenty U.S. states and two Canadian provinces for the 2017 season. In total, the USL reaches a population of 75 million people, fueling the growth of professional Soccer across North America. In December of 2017, Hall Sports Ventures acquired the rights for a USL franchise in the Oakland East Bay area. This exclusive territory covers the entirety of Contra Costa, Alameda and Santa Clara Counties, 1855 Olympic Blvd, Suite 300 Walnut Creek, CA Tel Fax Page 5 of 8

7 and large portions of Napa and Solano Counties. Additionally, Hall Sports Ventures has the right to establish and operate a professional Division III development team, as well as the potential to acquire a franchise for a National Women s Soccer League team, under certain circumstances. As a natural complement to the development of these teams, Copa Reál Soccer Training Studios ( Copa Reál ) is currently under construction by Hall Equities Group in Walnut Creek's Shadelands Business Park, just three short miles from the proposed stadium location. Copa Reál is owned by Hall Sports Ventures affiliate, COPA Innovation Laboratories. Copa Reál is a skills-based Soccer training facility where advanced technologies and methodologies will combine with quantitative metrics analysis to focus on individual player assessment and development. Hall Sports Ventures expects that the Copa Reál facility will also act as the future training center for the USL East Bay team. Copa Reál will provide a high-quality training environment for players of all ages. The Copa Reál facility is a major multimillion-dollar investment, and will be exclusively introducing various training devices, technology, and methodologies presently found nowhere in North or South America, and only in use in top European Professional Clubs. The East Bay area is the center of gravity for youth Soccer participation in Northern California and the combination of the above-mentioned professional team and the Copa Reál Soccer Training Studios, has the potential to create a regional Soccer ecosystem and infrastructure capable of assuming a leadership role in the exploding growth of Soccer across all North America. This powerful combination has the potential to attract youth and professional teams from all over the world to Central Contra Costa County to train and play this most unique sport. Planned effectively, we can work together to substantially and uniquely enhance the cultural and economic vibrancy of our region, with the City of Concord as the center stage attraction. Hall Sports Ventures proposes to work with the City of Concord to pursue this proposed master planned development including the Soccer-specific stadium, hotels, conference facility, retail, commercial, residential, and other uses synergistic to the stadium complex, that would enhance the fan experience. While described as a Soccer-specific venue, the stadium would be designed in a manner to be suitable for music and other events, as well as other field sports such as football, lacrosse, and rugby. The proposed stadium and convention center would be used for entertainment, events, and conferences, drawing people from throughout the Bay Area and beyond, and introducing them to Downtown Concord. Furthermore, the proposed stadium complex master plan could become an important factor that can enhance the marketability of the City of Concord to new residents and businesses who might not otherwise see or consider Concord. This facility is consistent with promoting the City as a community of active lifestyles and would add to the local quality of life and available community amenities. These dynamics will also greatly enhance the marketability of the proposed Base Re-Use Project presently proposed for the former Concord Naval Weapons Station Olympic Blvd, Suite 300 Walnut Creek, CA Tel Fax Page 6 of 8

A well-conceived stadium complex can become a game-changing economic generator for the right area and Hall Sports Ventures believes the Oakland East Bay area contains several communities that could

We seek a community that will be supportive of these goals, appreciates the unique nature of the sport of Soccer, both for its growth potential, as well as it's cross cultural dynamics, and will work

8 A well-conceived stadium complex can become a game-changing economic generator for the right area and Hall Sports Ventures believes the Oakland East Bay area contains several communities that could find an integrated stadium, hotel, conference facility, and other uses, to be an attractive anchor for a vibrant downtown. We seek a community that will be supportive of these goals, appreciates the unique nature of the sport of Soccer, both for its growth potential, as well as it's cross cultural dynamics, and will work actively with us to make this vision a reality. We hope to work with the City of Concord on this exciting new project. Sincerely, HALL EQUITIES GROUP Mark D. Hall Chief Executive Officer 1855 Olympic Blvd, Suite 300 Walnut Creek, CA Tel Fax Page 7 of 8

9 Attachment 2 Page 8 of 8

SOUTH BAY CORPORATE CENTER

F O R L E A S E 1 9 2, 6 6 9 S F C o r p o r at e H e a d q u a r t e r s O f f i c e a n d R & D B u i l d i n G South Bay Corporate Center is a prominent office and R&D corporate headquarters facility