MINUTES OF THE CITY COUNCIL

SAN JOSÉ, CALIFORNIA TUESDAY, OCTOBER 24, 2000

The Council of the City of San Jose convened in Adjourned Regular Session at 2:27 p.m., for a joint meeting with the Redevelopment Agency in Council Chambers at City Hall.

Present: Council Members: Chavez, Dando, Diaz, Diquisto, Fiscalini, LeZotte, Powers, Shirakawa Jr., Woody; Gonzales

Absent: Council Members: None.

Vacant: District 4

ORDERS OF THE DAY

Upon motion by Vice Mayor Fiscalini, seconded by Council Member Powers and unanimously carried, the Orders of the Day and the Amended Agenda were approved. Vote: 10-0-0-0-1. Vacant: District 4.

MERGED AREA

8a Adoption of resolutions by the City Council and Agency Board:

(1) Approving the addition of $150,000 in funding for the FY 2000-2001 Capital Budget Transportation Planning project in the Merged Area from the Capital Reserve; and

(2) By the Agency Board amending the FY 2000-2001 Agency Appropriation Resolution to accept $150,000 from the City for transportation planning services; and

(3) By the Agency Board approving an agreement with Parsons Transportation Group, in the amount of $300,000, for transportation consulting services related to the Greater Downtown Development Strategy.

Documents Filed: None.

Discussion/Action: This item was deferred to October 31, 2000.

GUADALUPE-AUZERAIS

8b Report on the status of the Marriott Hotel City Center Disposition and Development Agreement with Walton San José Investors III, LLC, and adoption of resolutions by the City Council and Agency Board:

(1) Authorizing the Executive Director to negotiate and execute a Redevelopment Agency Consent and Agreement amending the Disposition and Development Agreement by and between the Redevelopment Agency of the City of San José and Walton San José Investors III, LLC; and

(2) Authorizing the City Manager to negotiate and execute a City Consent and Agreement amending the Parking Premises Agreement by and between the City of San José and Walton San José Investors III, LLC, and authorizing the City Manager and the Executive Director to negotiate and execute a Reciprocal Easement Agreement by and among the City of San José, the Redevelopment Agency of the City of San José, and Walton San José Investors III, LLC; and

(3) Authorizing the Executive Director to extend the date for the Developer to cure its default for failure to close escrow to October 27, 2000, extend the date for commencement of construction to not later than ten (10) days after close of escrow and approve termination of the DDA if escrow is not in condition to close by October 27, 2000.

Documents Filed: Memorandum from City Manager Del D. Borgsdorf, and Executive Director Susan F. Shick, dated October 24, 2000, recommending the City Council and Redevelopment Agency Board adopt said resolutions relating to the Marriott City Center Hotel project.

Discussion/Action: Executive Director Susan F. Shick stated escrow is scheduled to close on October 27, 0000, pursuant to completion and full execution of the construction contract by the developer, an operations and management agreement between both parties, and a franchise agreement with Marriott, including issuance of a site excavation permit and completion of the financial package for the hotel. Because minor modifications are required in the Parking Agreement and the Reciprocal Easement Agreement between the City and the Developer, she recommended Council authorize the City Manager to execute those changes, which will enable the Developer to commence construction of the hotel within a specified time following close of escrow. Upon motion by Vice Mayor Fiscalini, seconded by Council Member Diaz and unanimously carried, the status report on the Marriott Hotel City Center Disposition and Development Agreement with Walton San José Investors was accepted; Resolution No. 69956.1, entitled: “Resolution of the Council of the City of San José (1) Authorizing the City Manager to Negotiate and Execute a City Consent and Agreement Amending the parking premises Agreement By and Between the City and Walton San José Investors III, L.L.C.; and (2) Authorizing the City Manager to Negotiate and Execute a Reciprocal Easement Agreement By and Among the City, the Redevelopment Agency, and Walton San José Investors III, L.L.C.”; and Redevelopment Agency Board Resolution No. 5026, entitled: “Resolution of the Board of Directors of the Redevelopment Agency of the City of San José (1) Authorizing the Executive Director to Negotiate and Execute a Redevelopment Agency Consent and Agreement Amending the Disposition and Development Agreement by and Between the Agency and Walton San José Investors III, L.L.C.; (2) Authorizing the Executive Director to Negotiate and Execute a Reciprocal Easement Agreement By and Among the City of San José, the Agency and Walton San José Investors III, L.L.C.; and (3) Authorizing the Executive Director to Extend the Date for the Developer to Cure Its Default for Failure to Close Escrow to October 27, 2000, Extend the Date for Commencement of Construction to Not Later Than Ten Days After Close of Escrow and Approve Termination of the DDA if Escrow is Not in Condition to Close by October 27, 2000”, were adopted. Vote: 10-0-0-0-1. Vacant: District 4.

ADJOURNMENT

The Council of the City of San José adjourned at 2:30 p.m.

RON GONZALES, MAYOR

ATTEST:

PATRICIA L. O’HEARN, CITY CLERK