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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />MARCH 3, 2020 <br />TITLE <br />PUBLIC HEARING —APPROVE A <br />DISPOSITION AND DEVELOPMENT <br />AGREEMENT WITH THRIVE SANTA ANA, <br />INC. AND A NINETY-NINE YEAR <br />GROUND LEASE FOR THE <br />DEVELOPMENT OF A MICROFARM AT <br />1901 W WALNUT AVENUE <br />/s/Kristine Ridt <br />CITY MANAGER <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />❑ <br />As Recommended <br />❑ <br />As Amended <br />❑ <br />Ordinance on 1s' Reading <br />❑ <br />Ordinance on 2ntl Reading <br />❑ <br />Implementing Resolution <br />❑ <br />Set Public Hearing For_ <br />CONTINUED TO <br />FILE NUMBER <br />RECOMMENDED ACTION <br />1. Conduct a Public Hearing required pursuant to California Government Code 53083. <br />2. Authorize the City Manager to execute a Disposition and Development Agreement with <br />THRIVE, Santa Ana, Inc. for the development of a microfarm at 1901 W Walnut Street and to <br />execute a 99-year Ground Lease, at a lease rate of one dollar per month, upon the terms and <br />conditions contained in the Development and Disposition Agreement, subject to non - <br />substantive changes approved by the City Manager and the City Attorney. <br />DISCUSSION <br />On September 17, 2019, the City Council approved a Second Exclusive Negotiation Agreement <br />(ENA) with THRIVE Santa Ana, Inc. (THRIVE) and authorized the City Manager to negotiate a <br />Disposition and Development Agreement (DDA) for the development of a microfarm at 1901 <br />West Walnut Street (APN# 007-332-08), a 0.38-acre City -owned property. During the ENA <br />period, THRIVE submitted an initial pro forma, Phase I Environmental Assessment, a community <br />benefits report, and site plans to the City. Most recently, staff met with THRIVE to negotiate <br />terms of a DDA. <br />The DDA (Exhibit 1) is a document designed to achieve the development of the site in a <br />coordinated and comprehensive manner. The terms of the DDA stipulate that THRIVE, as the <br />developer, must obtain entitlements, construction financing, permanent financing, evidence <br />equity, and obtain building permits, prior the City executing the Ground Lease attached to the <br />DDA. Once the terms of the DDA are met, the City Manager would execute the Ground Lease <br />for the negotiated 99-year term, at a lease rate of $1 per month. The DDA is a protection for the <br />City to ensure that the disposition of the property results in the proposed development of a <br />microfarm within a reasonable timeframe. A summary of the proposed terms of the DDA and the <br />Ground lease are outlined in the table below: <br />75A-1 <br />