MINUTES OF THE CITY COUNCIL

SAN JOSÉ, CALIFORNIA TUESDAY, SEPTEMBER 12, 2000

The Council of the City of San Jose convened in Adjourned Regular Session at 3:25 p.m., for a joint meeting with the Redevelopment Agency in Council Chambers at City Hall.

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

Absent: Council Members: Diaz (excused)

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: 9-0-1-0-1. Absent: Diaz. Vacant: District 4.

GENERAL GOVERNMENT

8a Report on the Marriott Hotel DDA, with Walton San José Investors III, LLC, and recommendations for appropriate City Council and Agency Board actions.

Documents Filed: Memorandum from Executive Director, Susan F. Shick, dated September 12, 2000, recommending the Redevelopment Agency Board and the City Council accept said report and approve recommendations for appropriate actions.

Discussion/Action: Executive Director, Susan F. Shick, presented a comprehensive overview of the proposed project and disposition of the default under the DDA between the Redevelopment Agency and Walton San José Investors III, LLC. Beginning with the June 2000 Council adoption of resolutions approving certain terms and conditions of the agreement, she cited the events resulting in the recommendation to delay termination of the DDA, thereby providing the Developer the opportunity to cure the existing default under the DDA by October 20, 2000. She stated Agency Staff would return to the City Council/Agency Board with a recommendation for termination of the DDA, should the Developer fail to cure by October 20, 2000 for close of escrow and November 1, 2000 for commencement of construction. William J. Garbett spoke against the proposed action. Upon motion by Vice Mayor Fiscalini, seconded by Council Member Powers and unanimously carried, the report was accepted. Vote: 9-0-1-0-1. Absent: Diaz. Vacant: District 4.

ADJOURNMENT:

The Council of the City of San José adjourned at 3:40 p.m.

RON GONZALES, MAYOR

ATTEST:

PATRICIA L. O’HEARN, CITY CLERK