Special Notice / Hearing: 3-week notice
Vote Required: Majority
To: Honorable Board of Supervisors
From: Michael P. Callagy, County Executive
Subject: Purchase and Sale Agreement for the Acquisition of 1065 E. Hillsdale Boulevard, in Foster City
RECOMMENDATION:
title
Adopt a resolution:
A) Declaring the Board of Supervisors’ intent to purchase the real property described as 1065 E. Hillsdale Boulevard, in Foster City, identified as San Mateo County Assessor’s Parcel Number 094-524-180 (“Property”), for a total purchase price of $29,000,000; and
B) Authorizing the President of the Board of Supervisors to execute a Real Estate Purchase and Sale Agreement and Escrow Instructions (“Agreement”), with the owner of the Property, DWF IV CENTURY PLAZA, LLC, a Delaware limited liability company (“Seller”), for the County’s acquisition of the Property; and
C) Authorizing the County Executive or their designee to execute the Certificate of Acceptance upon satisfaction of certain conditions in escrow, to be recorded with the grant deed transferring title to the Property to the County, as well as an Assignment of Leases and any and all notices, escrow instructions, and documents required to facilitate the purposes of the Agreement.
body
BACKGROUND:
Since 1998, the Human Services Agency (“HSA") has leased 550 Quarry Road in San Carlos for the use of various programs. The agency currently occupies 70,104 square feet of the leased site to operate vocational rehabilitation services, which serves county residents with disabilities and other barriers to employment, creating pathways towards self-sufficiency through vocational counseling and assessment, case management, job training and job placement. HSA wishes to relocate these programs to a new facility to be acquired by the County.
The Property is a parcel of land comprised of approximately 223,320 square feet of space, improved by a four-story building consisting of approximately 115,600 square feet, and located at 1065 E. Hillsdale Boulevard, in Foster City.
DISCUSSION:
The County has determined that the Property would be an appropriate facility and location for the continued operation of HSA's vocational rehabilitation services and desires to purchase the Property at a price reasonably aligned with its fair market value.
The Seller has executed a Real Estate Purchase and Sale Agreement and Escrow Instructions (“PSA”), proposed by the County Executive for the purchase price of $29,000,000. The PSA provides that, upon completion of the County’s investigation of the Property (“Due Diligence Period”) and satisfaction of all conditions, the transaction close would occur within forty-two days of Board approval, or upon a mutually agreed upon extended close of escrow date.
Acquisition of this Property was evaluated for sea level rise impacts in accordance with the 2019 San Mateo County Sea Level Rise Policy for County Assets which requires evaluation of sea level rise risk at least 50 years beyond the date of acquisition. Based on a review of inundation maps during this time horizon, this property may be at risk of flooding with 3.3 feet of sea level rise (projected to occur by 2070) and a 100-year storm event. Future development of this Property will be subject to conformance with the 2019 Policy including tracking of the risk assessment and any adaptation plan and monitoring developed.
Notices pursuant to California Government Code section 25350 of the intention of the Board of Supervisors to make this purchase were published in compliance with Government Code section 6063, including a description of the property to be purchased, the price, the vendor, a statement of the time the Board would meet to adopt this Resolution and consummate the purchase, and an invitation to interested persons to attend and be heard on the subject.
Pursuant to Government Code Section 65402, the City of Foster City has been notified of the proposed purchase of the Property and has been requested to issue a finding of conformity with the City’s General Plan.
The County Attorney’s Office has reviewed and approved the Agreement and resolution as to form. The Director of Human Services Agency concurs in this recommendation.
COMMUNITY IMPACT:
The County is dedicated to providing access to critical services for vulnerable individuals, acquiring and leasing real property to ensure all residents can access services in the locations and facilities best suited to their specific purposes. This acquisition will further the County’s ability to ensure that critical services for residents can continue to be met.
FISCAL IMPACT:
The purchase price, including closing costs, have been appropriated in the FY 2026-27 Adopted Budget and will be paid for from Non-Departmental Services.