Special Notice / Hearing: Publication (3 weeks)
Vote Required: Majority
To: Honorable Board of Supervisors
From: Michael P. Callagy, County Executive
Subject: Purchase and Sale Agreement for County Acquisition of 849 Mitten Road, 863 Mitten Road, 866 Malcolm Road & Adjacent Parking Lot Parcels, City of Burlingame
RECOMMENDATION:
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Adopt a resolution:
A) Declaring the Board of Supervisors’ intent to purchase the real property described as 849 Mitten Road, 863 Mitten Road and 866 Malcolm Road, all located within the City of Burlingame, San Mateo County Assessor’s Parcel Numbers 024-403-380, 024-403-410 and 024-403-400, respectively, together with adjacent parking lots, Assessor’s Parcel Numbers, 026-301-310, 026-301-320 and 026-301-240, (“Property”), for the total purchase price of $24,500,000; and
B) Authorizing the President of the Board of Supervisors to execute a Real Estate Purchase and Sale Agreement (“Agreement”) with the owners of the Property, ARE-819/863 Mitten Road, LLC (“Sellers”), for the County’s acquisition of the Property; and
C) Authorizing the County Executive, or their designee, to execute a 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 any and all notices, escrow instructions, and documents required to facilitate the purposes of the Agreement.
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BACKGROUND:
The property is located within the City of Burlingame and comprises six parcels which include three buildings used for office and research and development, together with three parking lot parcels. The gross interior area of the buildings total 102,823 square feet and the combined area of the Property totals approximately six and three-quarter acres of land.
DISCUSSION:
The County has determined the Property would provide needed administrative, executive, and professional offices for County programs.
The Sellers have executed a Purchase and Sale Agreement (“PSA”), proposed by the County Executive for the purchase price of $24,500,000. The PSA provides that, upon completion of the County’s investigation of the Property and satisfaction of all conditions (“Due Diligence Period”), the transaction close would occur on October 31st, 2024, 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 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 and a 100-year storm event. The City of Burlingame’s sea level rise planning documents do not provide for a strategy of retreat from current land uses along the bayfront, and the County’s proposed uses of the property are consistent with existing commercial development and uses in the vicinity. The County’s acquisition and use does not involve placing new structures in an undisturbed area not already at risk and does not increase any risk of harm to persons or property above present levels. No part of the Property is within the shoreline setback area established by the City of Burlingame’s sea level rise planning documents and therefore the acquisition will not negatively impact the region’s ability to create a shoreline buffer or accommodate other shoreline defenses against inundation. The County’s proposed use will not involve the installation of critical infrastructure that may become inaccessible during a temporary inundation event. Future development of this property will include a sea level rise risk assessment and adaptation plan.
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, and a statement of the time this Board would meet to adopt this Resolution and consummate the the purchase, and inviting interested persons to attend and be heard on the subject.
Pursuant to Government Code Section 65402, the City of Burlingame 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.
EQUITY IMPACT:
The County is dedicated to providing critical access to services for vulnerable individuals. It is anticipated the acquisition of the Property would further enable the County to administer said essential services by increasing County office facility capacity.
FISCAL IMPACT:
The purchase price including closing costs has been appropriated within the FY 2024-25 budget and will be paid with General Fund.