ADMINISTRATIVE SERVICES DEPARTMENT REAL ESTATE DIVISION REQUEST FOR BID (RFB) NUMBER TDR1212 SALE OF TRANSFERABLE DEVELOPMENT RIGHTS

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1 ADMINISTRATIVE SERVICES DEPARTMENT REAL ESTATE DIVISION REQUEST FOR BID (RFB) NUMBER TDR1212 SALE OF TRANSFERABLE DEVELOPMENT RIGHTS RFP Submittal Deadline: Contract Administrator: Real Estate Division : 3:00 P.M. PST Tuesday May 5, 2015 John Montenero John.Montenero@CityofPaloAlto.org Hamid Ghaemmaghami Hamid.Ghaemmaghami@CityOfPaloAlto.org CITY OF PALO ALTO PURCHASING/CONTRACT ADMINISTRATION 250 HAMILTON AVENUE PALO ALTO, CA (650)

2 1. INTRODUCTION REQUEST FOR PROPOSAL (BID) (RFB) NO. TDR1515 TITLE: SALE OF TRANSFERABLE DEVELOPMENT RIGHTS The City of Palo Alto is seeking proposals, (BIDS) from interested parties for the: Sale of 9,592 square feet of Transferable Development Rights (TDR) from the Roth Building located at 300 Homer Street. These TDR s Do Not contain a parking exemption and any development associated with such TDR s must comply with the City s Parking Code. The TDRs are offered in single lot of 2,398 square feet each for a total of four (4) lots totaling 9,592 square feet. Interested bidders can bid on one to four lots. The required procedures for submitting a BID are described in the attached Proposal Package, Attachment A. 2. ATTACHMENTS The attachments below are included with this Request for Bids (RFB) for your review and submittal (see asterisk): Attachment A Attachment B Attachment C Attachment D Attachment E Attachment F Attachment G Proposal Package Offer and Agreement to Purchase Certified Development Rights*, including Exhibit A 1: CERTIFICATION OF TRANSFER OF DEVELOPMENT RIGHTS Roth Building, with Legal Description Sales Flyer Policy and Procedures Palo Alto Municipal Code Section Eligible Receiver Sites Commercial Downtown CD The items identified with an asterisk (*) shall be completed and submitted with BID. 3. INSTRUCTIONS TO PROPOSERS (BIDDERS) 3.1 Examination of Proposal Documents The submission of a proposal (bid) shall be deemed a representation and certification by the Proposer that they: Have carefully read and fully understand the information that was provided by the City to serve as the basis for submission of this proposal (BID) Represent that all information contained in the proposal (BID) is true and correct. 2

3 3.1.3 Did not, in any way, collude, conspire to agree, directly or indirectly, with any person, firm, corporation or other Proposer in regard to the amount, terms or conditions of this proposal Acknowledge that the City has the right to make any inquiry it deems appropriate to substantiate or supplement information supplied by Proposer, and Proposer hereby grants the City permission to make these inquiries, and to provide any and all related documentation in a timely manner. 3.2 Addenda/Clarifications Should discrepancies or omissions be found in this RFP or should there be a need to clarify this RFP, questions or comments regarding this RFP must be put in writing and received by the City no later than 4:00 p.m., April 29, Correspondence shall be addressed to John Montenero, Chief Procurement Officer, City of Palo Alto, 250 Hamilton Avenue, Palo Alto, CA or e mailed to John.Montenero@CityofPaloAlto.org. Responses from the City will be communicated in writing In the case of a discrepancy between a written amount and the corresponding figures, the written amount shall govern. In the case of a discrepancy between an item price and the corresponding unit price multiplied by the corresponding estimated quantity, the unit price multiplied by the estimated quantity shall govern. In the case of discrepancy between the actual arithmetic total of all items and the total stated by the Bidder, the actual arithmetic total shall govern. The City shall not be responsible for nor be bound by any oral instructions, interpretations or explanations issued by the City or its representatives. 3.3 Submission of Proposals/BIDS All proposals (SEALED BIDS) shall be submitted to: City of Palo Alto Purchasing and Contract Administration 250 Hamilton Avenue, Mail Stop MB Palo Alto, CA Proposals (Sealed Bids) must be delivered no later than 3:00 p.m. on Tuesday, May 5, All proposals (BIDS) received after that time will be returned to the Proposer unopened. The Proposer shall submit Sealed Bid in a sealed envelope, addressed as noted above, bearing the Proposer s name and address clearly marked, RFB NO. TDR1515 FOR Sale of Transferable Development Rights 3.4 Withdrawal of Proposals 3

4 BIDDER may withdraw this Offer and Agreement to Purchase Certified Development Rights at any time prior to the time set for opening bids without penalty. Except as provided under Paragraph 3 above, it may not be withdrawn after the time set for such opening, and any withdrawal after such opening will be subject to the penalties set forth in Section 6 of Attachment B, Offer and Agreement to Purchase Certified Development Rights Agreement. 3.5 Rights of the City of Palo Alto City s Right to Reject Bids. SELLER reserves the right to reject any or all bids and to accept bids, all or in part, which will, in its opinion, best serve the public interest No Guarantee. The purchase of Certified Development Rights is subject to the provisions and limitations of the Palo Alto Municipal Code. This agreement includes no guarantee of a receiver site. Zoning regulations may be changed or repealed at any time. This RFP does not commit the City to enter into a contract, nor does it obligate the City to pay for any costs incurred in preparation and submission of proposals or in anticipation of a contract. The City reserves the right to: Reject any and all proposals; Issue subsequent Requests for Proposals; Postpone opening for its own convenience; Remedy technical errors in the Request for Proposals process; An agreement shall not be binding or valid with the City unless and until it is executed by authorized representatives of the City and of the Proposer. 5. INSTRUCTIONS FOR SUBMITTING SEALED BIDS These instructions outline the guidelines governing the format and content of the proposal and the approach to be used in submitting a Sealed Bid. The intent of the RFB is to maximize revenue for the rehabilitation of city owned historic properties. Complete the attached Offer and Agreement to Purchase Certified Transferable Development Rights, including your bid amount and your signature. Attach a Proposal Deposit equal to ten percent (10%) of the actual bid, but not less than $48,000 per each lot of 2,398 square feet in the form of a Cashier s or Certified check made payable to: The City of Palo Alto. Place the above into an envelope and seal it. Deliver the sealed envelope to: Purchasing & Contract Administration City of Palo Alto 250 Hamilton Avenue Mezzanine Palo Alto, CA

5 6. REVIEW of BIDS The City s goal is to maximize revenue for the rehabilitation of city owned historic properties. The criteria for selection of successful bidders will be based solely on the highest bid received per lot. City s preference is to sell all four or multiple lot to the highest bidder per lot. The highest bid for each individual lot will win the bid for the lot. If a bidder bids on multiple (for example four lots), then their bid will be evaluated according the price offered on each lot. For example if one lot receives an offer for $210 per square foot and another single lot is bid at $205 per square foot and the City receives a multiple lot bid for four (4) lots of $200 per square foot, then City will accept the proposals of the two highest bidders for the two single lots and the per square foot bid of $200 from the multiple bidder for the two remaining lots. However, should two bids from separate parties contain the same bid amount for the same number of lots/square feet such that all bids or combinations thereof would be considered equal under the criteria described above, the City may, at its discretion, commence oral bidding for lot/lots of either 2,398, 4,796, 7194, or 9,592 square feet at an amount starting at 5% over the highest bid received for the appropriate amount of square footage. If oral bidding is commenced, all parties submitting a bid will be notified in advance of the time, date and place of the event and may attend and participate in the oral bidding. 5

6 In order to submit a proposal you must: ATTACHMENT A PROPOSAL PACKAGE CERTIFIED DEVELOPMENT RIGHTS PROPOSAL REQUIREMENTS & PROCEDURES 1. Complete the attached Offer (Attachment B) and Agreement to Purchase Certified Development Rights, including your bid amount and your signature. 2. Attach a Proposal Deposit equal to ten percent (10%) of the actual bid, but not less than $48,000 per each lot of 2,398 square feet ( a total of four lots are offered for sale) in the form of a Cashier s or Certified check made payable to: The City of Palo Alto. 3. Place the above into an envelope and seal it. 4. Deliver the sealed envelope to: Purchasing & Contract Administration City of Palo Alto 250 Hamilton Avenue Mezzanine Palo Alto, CA BID OPENING Sealed bids will be opened on May 5, 2015 at 3:00 P.M. in the City Council Conference Room at the above address. In order to be considered, your bid must be received prior to that time. No bids will be accepted after 3:00 P.M. on May 5, Please note: Bids will not be accepted or rejected at the bid opening. Bids will be accepted or rejected by the Palo Alto City Council following a recommendation from City staff on qualified high bidders. The City s goal is to maximize revenue for the rehabilitation of city owned historic properties. The criteria for selection of successful bidders will be based solely on the highest bid received per lot. City s preference is to sell all four or multiple lot to the highest bidder per lot. The highest bid for each individual lot will win the bid for the lot. If a bidder bids on multiple (for example four lots), then their bid will be evaluated according the price offered on each lot. For example if one lot receives an offer for $210 per square foot and another single lot is bid at $205 per square foot and the City receives a multiple lot bid for four (4) lots of $200 per square foot, then City will accept the proposals of the two highest bidders for the two single lots and the per square foot bid of $200 from the multiple bidder for the two remaining lots. However, should two bids from separate parties contain the same bid amount for the same number of lots/square feet such that all bids or combinations thereof would be considered equal under the criteria described above, the City may, at its discretion, commence oral bidding for lot/lots of either 2,398, 4,796, 7194, or 9,592 square feet at an amount starting at 5% over the highest bid received for the appropriate amount of square footage. If oral bidding is commenced, all parties submitting a bid will be notified in advance of the time, date and place of the event and may attend and participate in the oral bidding. 6

7 BIDDING ON LOTS A total of 9,592 square feet (total of four Lots) of Transferrable Development Rights are available. You may bid on one or more 2,398 square foot lots. These TDR s do not contain a parking exemption and any development associated with such TDR s must comply with the City s Parking Code. The City reserves the right to accept or reject all or part of multiple lot bids. MINIMUM BID The minimum bid for each 2,398 square foot lot is set at $200 per square foot totaling $479,600 PROPOSALS TO BE UNCONDITIONAL The terms and conditions of the sale are fixed except for the purchase price. The intent of this proposal format is to allow the proposers to examine in detail all the terms and conditions of the offering. Since the purchase price is the only variable item, the amount you are willing to bid for the purchase price should reflect your reaction to the terms and conditions set forth in the Offer and Agreement to Purchase Certified Development Rights. Any condition or qualification attached to a proposal will be sufficient cause for the rejection of the proposal at the discretion of the City. INFORMATION AND QUESTIONS If you desire further information or have questions regarding this offering, write or call: John Montenero, Chief Procurement Officer, City of Palo Alto, 250 Hamilton Avenue, Palo Alto, CA 94301, (PH) or e mailed to John.Montenero@CityofPaloAlto.org Hamid Ghaemmaghami, Real Property Manager, City of Palo Alto, 250 Hamilton Avenue, Palo Alto, CA 94303, (650) ,hamid.ghaemmaghami@cityofpaloalto.org The City of Palo Alto will not pay a sales commission on this offering. The minimum bid is set to reflect this. Any commission payment must be arranged between the Buyer and his or her broker, attorney or real estate representative. 7

8 SELLER: CITY OF PALO ALTO ATTACHMENT B OFFER AND AGREEMENT FOR PURCHASE OF CERTIFIED DEVELOPMENT RIGHTS (Full Cash Payment) BIDDER: (Fill in full legal name) In consideration of SELLER S proposal to sell the development rights described and shown on the form of Certification of Transfer of Development Rights labeled Exhibit A1 attached hereto, by competitive bids to be received on May 05, 2015, BIDDER agrees to purchase said development rights as follows: Number of 2,398 square foot lots (minimum of one lot up to maximum of four lots): I (Bidder) am bidding on (number) (number in words) lot/lots for a sum of: (square foot amount in number) (square foot amount in words) *Lot Number Square Footage Offer Price Per Square foot 1 2, , , ,398 *total of four lots of equal square footage I (Bidder) am offering the purchase price of ($number) ($number in words) per square foot for each lot for a total value of ($number) ($ number in words) In accordance with subparagraph 6 below, and with this offer, I (Bidder) am including funds for the SELLER, as a good faith deposit (the Proposal Deposit ) of ten percent (10%) of the total Purchase Price in the amount of $ This bid is conditioned upon and made with BIDDER S understanding and agreement to the following terms: 1. Supplemental Deposit. Upon written notice from SELLER S Real Estate Division that BIDDER is a qualified high bidder, in all or in part, BIDDER shall within 7 calendar days after said notice pay SELLER an additional sum (the Supplemental Deposit ) equal to the difference between the Proposal Deposit and 50% of the total amount bid. Should BIDDER, for any reason whatsoever, fail to pay to SELLER the Supplemental Deposit, the Proposal Deposit shall be retained by SELLER as set forth in subparagraph 6 below. 8

9 2. Acceptance or Rejection of Bid. Within thirty (30) days, or in as reasonable a time thereafter as possible, after BIDDER has paid SELLER the Supplemental Deposit referred to in Paragraph 1 above, SELLER shall consider this bid and accept or reject it. 3. Rejection or Withdrawal of Bid. Should this bid be rejected by SELLER or should SELLER fail to accept or reject this bid within the time period set forth in Paragraph 2 above, BIDDER may withdraw this bid and all money paid to SELLER by BIDDER shall be refunded to BIDDER. 4. Acceptance of Bid. If this bid be accepted all or in part by SELLER, the Proposal Deposit and the Supplemental Deposit paid to SELLER as provided in Paragraph 1 above shall constitute a portion of the Purchase Price, and BIDDER shall pay SELLER the balance of the Purchase Price within 30 days of SELLER S written notification to BIDDER of SELLER S acceptance of the bid. 5. TDR Certification. Upon payment of the Purchase Price, SELLER shall deliver to BIDDER a fully executed copy of the Certification of Transfer of Development Rights in the form of Exhibit A1. SELLER shall have the Certification form recorded with the Santa Clara County Recorder s office and will provide BIDDER a certified recorded copy upon return of the original from the Santa Clara County Recorder s office. 6. Form of Deposit and Damages. The Proposal Deposit and the additional Supplemental Deposit shall be in the form of a cashier s or certified check made payable to the City of Palo Alto. The Proposal Deposit must be submitted together with this Agreement. Said Proposal Deposit shall be held by the SELLER as a guarantee securing the obligations BIDDER agrees to assume in this Agreement. BIDDER agrees that in the event that this Offer and Agreement to Purchase Certified Development Rights is accepted by SELLER and BIDDER fails to meet the terms hereof, said Proposal Deposit represents a fair and reasonable estimate of SELLER S costs in connection with this transaction, and BIDDER further agrees that said sum shall be retained by SELLER as compensation for said costs. 7. Recording Fees. In addition to the amounts specified above, BIDDER shall pay all recording fees applicable to this transaction. 8. Withdrawal Prior to Bid Opening. BIDDER may withdraw this Offer and Agreement to Purchase Certified Development Rights at any time prior to the time set for opening bids without penalty. Except as provided under Paragraph 3 above, it may not be withdrawn after the time set for such opening, and any withdrawal after such opening will be subject to the penalties set forth in section 6 of this Agreement. 9. City s Right to Reject Bids. SELLER reserves the right to reject any or all bids and to accept bids, all or in part, which will, in its opinion, best serve the public interest 9

10 10. No Guarantee. The purchase of Certified Development Rights is subject to the provisions and limitations of the Palo Alto Municipal Code. This agreement includes no guarantee of a receiver site. Zoning regulations may be changed or repealed at any time. 11. All documents, correspondence, and communications concerning this transaction shall be directed as follows: TO: BIDDER TO: SELLER CITY OF PALO ALTO (Name) c/o Real Estate Division 250 Hamilton Avenue (Address) P.O. Box Palo Alto, CA Attn: Hamid Ghaemmaghami Telephone: 12. Time is of the essence of this Agreement. BIDDER hereby submits this offer with full cognizance of this agreement to the terms and conditions contained herein. SIGNATURE(S) OF BIDDER(S) SELLER has considered and accepts this offer: SELLER: CITY OF PALO ALTO Date By MAYOR (or designee), CITY OF PALO ALTO ATTEST: CITY CLERK By APPROVED AS TO FORM: SR. ASST. CITY ATTORNEY By RECOMMENDED FOR APPROVAL: DIRECTOR, PLANNING By 10

11 (Exhibit A1) CERTIFICATION OF TRANSFER OF DEVELOPMENT RIGHTS ROTH BUILDING This document is recorded for the benefit of the City of Palo Alto and is entitled to be recorded free of charge in accordance with Section 6103 of the Government Code. After Recordation, mail to: REAL PROPERTY MANAGER City of Palo Alto P. O. Box Palo Alto, CA APN: Project: Roth Building 300 Homer Street Palo Alto, CA CERTIFICATION OF TRANSFER OF DEVELOPMENT RIGHTS Palo Alto 300 Homer Street APN A. The City of Palo Alto, a municipal corporation ( Property Owner ) is the owner of a parcel of real property (the Historic Site ), generally known as the Roth Building located at 300 Homer Street, City of Palo Alto, County of Santa Clara, State of California and more particularly described in Exhibit A attached to this document and made a part of it. B. To promote the preservation and rehabilitation of historic buildings, Palo Alto Municipal Code Chapter permits transfer of 9,592 square feet of development rights from the Historic Site to an eligible receiver site. As a condition of such transfer, the Historic Site must be developed and maintained in conformance with the Secretary of Interior s Standards for Rehabilitation and Guidelines for Rehabilitating Historic Buildings (the Standards and Guidelines ). C. On March 2, 2010, the City s Historic Resources Board (HRB) recommended the approval of historical rehabilitation plans for the Roth Building. The Architectural Review Board approved the project on March 21, 2011 and the Historic Structure Report as required for the project to participate in the TDR program. THE 11

12 HRB supported participation of Roth Building project in the TDR program and unanimously recommended approval of the Project as complying with the Secretary of the Interior s Standards for Rehabilitation. The conditional Use Permit (CUP) and entitlements expired on December of 2014 and PAHM is in the process of resubmitting application to the City to update the required City permits for the Roth Building. D. The Director of Planning approved the recommendation of the HRB and therefore certified that the Historic Site was an eligible sender site for 9,592 square feet of development rights for historic preservation. No floor area bonus has been utilized at the Historic Site. The Transfer Development Rights for the Roth Building cannot be used as an exemption to offset the parking requirements of the City of Palo Alto for additional square footage for new or existing developments. E. On March 2, 2015, the Palo Alto City Council confirmed the eligibility of the Historic Site as a Sender Site in the Transfer of Development Rights program. F. The City s Planning Division has approved plans and issued permits for the rehabilitation of the historic property in accordance with the Project plans and the Secretary of Interior s Standards for Rehabilitation and therefore has certified that the Historic Sender Site is an eligible Historic Sender site for 9,592 square feet of development rights for historic rehabilitation. G. The holder of this Certification is entitled to square feet of certified transferable development rights originating from the Roth Building Renovation Project. H. This Certification shall be recorded in the office of the Recorder of the County of Santa Clara. I. The holder of this Certification has the right to transfer, sell or otherwise convey the transferable development rights granted in this certification in accordance with the provisions of Chapters and of the Palo Alto Municipal Code, as they may be amended from time to time. All transfers are subject to the limitations and possible termination of the transfer of development rights program in the future. IN WITNESS WHEREOF, the parties have executed this Certification on the dates set forth below. PROPERTY OWNER: CITY OF PALO ALTO, a municipal Corporation 12

13 City Manager Director of Planning & Community Environment APPROVED AS TO FORM: City Attorney 13

14 ALL PURPOSE ACKNOWLEDGEMENT STATE OF CALIFORNIA ) COUNTY OF SANTA CLARA ) ) On, 2015, before me,, a Notary Public, in and for the State of California, personally appeared, who proved to me on the basis of satisfactory evidence to be the person(s) whose name is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal Signature 14

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17 ATTACHMENT C SALES FLYER CITY OF PALO ALTO SALE OF CITY OWNED DEVELOPMENT RIGHTS FREQUENTLY ASKED QUESTIONS WHAT IS A TRANSFER OF DEVELOPMENT RIGHT? To encourage historic rehabilitation, Chapter of the Palo Alto Municipal Code (a copy of which is attached as Attachment E) provides a Transfer of Development Rights (TDR) program which allows a floor area bonus for the qualified rehabilitation of certain eligible historic buildings. Floor area bonuses granted under the TDR program may be used on the historic site or transferred to eligible receiver sites in the Downtown CD zone District WHAT IS THIS SALE? The Roth Building, a City owned historic property, has qualified for floor area bonuses that are eligible to be transferred as TDRs. This sale is an opportunity to purchase up to 9,592 square feet of floor area bonus, available for sale in 2,388 square foot lots. This square footage originates from the City owned properties and may be transferred to eligible sites in Downtown Palo Alto. These TDR s do not contain a parking exemption and any development associated with such TDR s must comply with the City s Parking Code. HOW DOES TRANSFERRING DEVELOPMENT RIGHTS WORK? Floor area bonuses may be transferred (sold) from eligible sender sites for use on eligible receiver sites in the Downtown. Eligible receiver sites must be located in the Downtown CD Zone District (see attached map) and are subject to the limitations of the Palo Alto Municipal Code, including but not limited to sections and TDR s may be sold or otherwise conveyed by their owners to another party, evidenced by a recorded document designed to run with the land that identifies the transferor, the transferee, and the sender site. This means that when the development rights are purchased, they do not have to be assigned to or used on a receiver site at that time and may held for use or resale at a later date. Sales, transfers or other conveyances must be evidenced by a recorded document signed by the transferor and transferee in a form designed to run with the land and satisfactory to the City Attorney, which clearly identifies the sender site, the amount of floor area transferred, and must be filed with the City s Department of Planning and Community Environment. IS THERE A MINIMUM BID? Yes, the minimum bid for each lot of 2,398 square feet offered in this sale is $279,600. Overbids are acceptable. WHAT ARE THE CONDITIONS FOR BIDDING/BUYING THE TDRS OFFERED IN THIS SALE? Bidders must agree to the terms and conditions as sale set forth in the proposal package and submit the appropriate deposit. Pursuant to City Policy for the sale of TDRs for City property, staff will review the results and make a recommendation to the City Council. The Council may accept 17

18 the bid or combination of bids which will, in its opinion, best serve the public interest. The City reserves the right to reject any or all bids. The City s goal is to maximize revenue for the rehabilitation of city owned historic properties. The criteria for selection of successful bidders will be based solely on the highest bid or combination of bids received, with a preference for bids of the full amount of square footage (9,592) if bid amounts are equal. For example, if the City receives multiple bids for 2,398 square feet, the two bids totaling the highest dollar amount will be chosen unless there is a bid of the same or greater amount for the full 9,592 square feet, in which case the bid for 9,592 square feet will be chosen. However, should two multiple bids from separate parties contain the same bid amount for the same number of lots/square feet such that all bids or combinations thereof would be considered equal under the criteria described above, the City may, at its discretion, commence oral bidding for lot/lots of either 2,398, 4796, 7194 or 9,592 square feet at an amount starting at 5% over the highest bid received for the appropriate amount of square footage. If oral bidding is commenced, all parties submitting a bid will be notified in advance and may attend and participate in the oral bidding. WHEN ARE BIDS/PROPOSALS DUE? Proposals are due on or before 3:00 p.m. on Tuesday, May 5, 2015 and MUST be submitted to: Manager, Purchasing/Contract Administration City of Palo Alto, Mezzanine Level P.O. Box ` 250 Hamilton Avenue Palo Alto, CA WHERE AND WHEN WILL BIDS BE OPENED? Sealed written bids will be opened by Purchasing Staff, Contract Administration on May 5, 2015 at 3 pm, City Council Conference Room, 250 Hamilton Avenue First Floor, Palo Alto, CA. Written bids must be accompanied by a deposit of 10% of the offer price in the form of a Cashier s or Certified check, made payable to the City of Palo Alto. Bids will not be accepted after 3:00 pm on May 5, 2015 HOW DO I GET A PROPOSAL? If you would like to obtain the Request for Proposals package or are interested in further information, please contact: John Montenero Purchasing and Contracts Administration 250 Hamilton Avenue Palo Alto, CA (650) John.Montenero@CityofPaloAlto.org Hamid Ghaemmaghami City of Palo Alto/Real Estate Division (650) hamid.ghaemmaghami@cityofpaloalto.org No Finder s Fees or Commissions paid: The City of Palo Alto does not pay finder s fees or commissions. Any such payment must be negotiated between the proposer and his/her agent or broker, if any. 18

19 ATTACHMENT D POLICY AND PROCEDURES Effective: September 2005 POLICY AND PROCEDURES 1 46/ASD PROCEDURE FOR SALE/TRANSFER OF DEVELOPMENT RIGHTS FOR CITY OWNED PROPERTY POLICY STATEMENT It is the policy of the City of Palo Alto that the disposal of City property and assets, including the transfer of certified development rights, be accomplished through a public bid process. To assure the highest return for sale of its assets, the process involves an appraisal of fair market value and an open and competitive bid process. The City Council may reject any or all bids and accept that bid which will, in its opinion, best serve the public interest. 1 PROCEDURE 1. Following designation of a city owned site as an eligible sender site, and determination of a floor area bonus in accordance with Palo Alto Municipal Code Chapters and 18.87, the Real Property Manager shall appraise (or have appraised) the value of the rights to be sold to determine a minimum bid. 2. The Real Estate Division shall prepare a Request for Proposals (RFP) to be placed on the Council Consent Calendar for approval. The RFP shall specify whether overbids shall be accepted. 3. Upon approval by the Council: 1) An ad shall be placed in the Real Estate section of the local newspapers. 2) Flyers advising of the offering shall be sent to all persons on the Real Estate Division Surplus Property Mailing List, persons owning eligible receiver sites, local developers and others likely to be interested in the offering. 1) Open sealed bids 2) If specified in the RFP, accept oral bidding beginning at 5% above the highest written bid. 4. The bid opening shall be scheduled by the Real Property Manager and the Purchasing Manager. At the bid opening the Purchasing Division shall: 5. The Real Estate Division shall forward the results of the bidding to the Council with a staff recommendation. The Council may reject any or all bids and accept that bid which will, in its opinion, best serve the public interest. NOTE: Questions and/or clarifications of this policy should be directed to the Administrative Services Department. 19

20 Transfer of Development Rights (a) Purpose ATTACHMENT E Palo Alto Municipal Code Section The purpose of this section is to implement the Comprehensive Plan by encouraging seismic rehabilitation of buildings in Seismic Categories I, II, and III, and encouraging historic rehabilitation of buildings or sites in Historic Category 1 and 2, and by establishing standards and procedures for the transfer of specified development rights from such sites to other eligible sites. Except as provided in subsection (e)(1) and for city owned properties as provided in Chapter 18.28, this section is applicable only to properties located in the CD district, and is the exclusive procedure for transfer of development rights for properties so zoned. (b) Establishment of Forms The city may from time to time establish application forms, submittal requirements, fees and such other requirements and guidelines as will aid in the efficient implementation of this chapter. (c) Eligibility for Transfer of Development Rights Transferable development rights may be transferred to an eligible receiver site upon: (1) Certification by the city pursuant to Section of the floor area from the sender site which is eligible for transfer; and (2) Compliance with the transfer procedures set forth in subsection (h). (d) Availability of Receiver Sites The city does not guarantee that at all times in the future there will be sufficient eligible receiver sites to receive such transferable development rights. (e) Eligible Receiver Sites A site is eligible to be a receiver site only if it meets all of the following criteria: (1) It is located in the CD commercial downtown district, or is located in a planned community (PC) district if the property was formerly located in the CD commercial downtown district and the ordinance rezoning the property to planned community (PC) approves the use of transferable development rights on the site. 20

21 (2) It is neither an historic site, nor a site containing a historic structure, as those terms are defined in Section (e) of Chapter of this code; and (3) The site is either: (A) Located at least 150 feet from any property zoned for residential use, not including property in planned community zones or in commercial zones within the downtown boundaries where mixed use projects are. (B) Separated from residentially zoned property by a city street with a width of at least 50 feet, and separated from residentially zoned property by an intervening property zoned CD C, CD S, or CD N, which intervening property has a width of not less than 50 feet. (f) Limitations on Usage of Transferable Development Rights No otherwise eligible receiver site shall be allowed to utilize transferable development rights under this chapter to the extent such transfer would: (1) Be outside the boundaries of the downtown parking assessment district, result in a maximum floor area ratio of 0.5 to 1 above what exists or would otherwise be permitted for that site under Section , whichever is greater, or result in total additional floor area of more than 10,000 square feet. (2) Be within the boundaries of the downtown parking assessment district, result in a maximum floor area ratio of 1.0 to 1 above what exists, or would otherwise be permitted for that site under Section , whichever is greater, or result in total additional floor area of more than 10,000 square feet. (3) Cause the development limitation or project size limitation set forth in Section to be exceeded. (4) Cause the site to exceed 3.0 to 1 FAR in the CD C subdistrict or 2.0 to 1 FAR in the CD S or CD N subdistricts. (g) Parking Requirements Any square footage allowed to be transferred to a receiver site pursuant to this chapter shall be subject to the parking regulations applicable to the district in which the receiver site is located. (h) Transfer Procedure Transferable development rights may be transferred from a sender site (or sites) to a receiver site only in accordance with all of the following requirements: 21

22 (1) An application pursuant to Chapter of this code for major ARB review of the project proposed for the receiver site must be filed. The application shall include: (A) (B) A statement that the applicant intends to use transferable development rights for the project; Identification of the sender site(s) and the amount of TDRs proposed to be transferred; and (C) Evidence that the applicant owns the transferable development rights or a signed statement from any other owner(s) of the TDRs that the specified amount of floor area is available for the proposed project and will be assigned for its use. (2) The application shall not be deemed complete unless and until the city determines that the TDRs proposed to be used for the project are available for that purpose. (3) In reviewing a project proposed for a receiver site pursuant to this section, the architectural review board shall review the project in accordance with Section of this code; however, the project may not be required to be modified for the sole purpose of reducing square footage unless necessary in order to satisfy the criteria for approval under Chapter or any specific requirement of the municipal code. (4) Following the ARB approval of the project on the receiver site, and prior to issuance of building permit, the director of planning and community environment or the director s designee shall issue written confirmation of the transfer, which identifies both the sender and receiver sites and the amount of TDRs which have been transformed. This confirmation shall be recorded in the office of the County recorder prior to the issuance of building permits and shall include the written consent or assignment by the owner(s) of the TDRs where such owner(s) are other than the applicant. (i) Purchase or Conveyance of TDRs Documentation (1) Transferable development rights may be sold or otherwise conveyed by their owner(s) to another party. However, no such sale or conveyance shall be effective unless evidenced by a recorded document, signed by the transferor and transferee and in a form designed to run with the land and satisfactory to the city attorney. The document shall clearly identify the sender site and the amount of floor area transferred and shall also be filed with the department of planning and community environment. (2) Where transfer of TDRs is made directly to a receiver site, the recorded confirmation of transfer described in subsection (h)(4) shall satisfy the requirements of this section. (Ord , 2013: Ord (part), 2006) 22

23 ATTACHMENT F 23

24 Exhibit G Commercial Downtown_CD 24

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