MINUTES OF THE CITY COUNCIL

SAN JOSÉ, CALIFORNIA TUESDAY, JUNE 5, 2001

The Council of the City of San Jose convened in Adjourned Regular Session at 6:16 p.m., for a joint meeting with the Redevelopment Agency in Council Chambers at City Hall.

Present: Council Members: Campos, Chavez, Cortesé, Dando, Diquisto, LeZotte, Reed, Williams, Yeager; Gonzales

Absent: Council Members: Shirakawa Jr.

ORDERS OF THE DAY

Upon motion by Council Member Williams, seconded by Council Member Chavez and unanimously carried, the Orders of the Day and the Amended Agenda were approved. Vote: 10-0-1-0. Absent: Shirakawa, Jr.

7.1 PUBLIC HEARING and approval of a Disposition and Development Agreement with Montgomery Hotel Group, LLC, for the adaptive reuse and disposition of the relocated Montgomery Hotel.

(a) Adoption of a resolution by the City Council approving the sale of the Montgomery Hotel site (generally located between San Fernando and San Carlos Streets) to the Montgomery Hotel Group, LLC, and finding that the sale of the property will assist in the elimination of blight, is consistent with the Implementation Plan for the San Antonio Plaza Redevelopment Project Area and that the consideration for the property is not less than the fair reuse value at the use and with the covenants and conditions and development costs authorized by the Disposition and Development Agreement (DDA)

(b) Adoption of a resolution by the Agency Board approving the addition of $6,065,000 to the Adopted FY 2000-2001 Capital Budget Montgomery Hotel Development new project line in the San Antonio Redevelopment Area and amending the FY 2000-2001 Agency appropriation resolution; and,

(c) Adoption of a resolution by the Agency Board amending the FY 2000-2001 Agency Appropriation resolution; and,

(d) Adoption of a resolution by the Agency Board approving the Disposition and Development Agreement and authorizing the Executive Director to execute ancillary documents contemplated by the DDA and to close escrow and convey the Property subject to compliance with the terms of the DDA, and to negotiate and execute amendments to the DDA substantially in conformance with the intent of the DDA as reasonably necessary to conform to lender requirements.

Documents Filed: (1) Supplemental Memorandum from Redevelopment Agency Executive Director, Susan F. Shick, dated June 5, 2001, recommending approval of the Disposition and Development Agreement and acceptance of the revised 33433 Summary Report for the Montgomery Hotel Project. (2) Memorandum from Redevelopment Agency Executive Director Susan F. Shick, dated May 22, 2001, recommending the Redevelopment Agency Board and the City Council approve said actions.

Discussion/Action: Mayor Gonzales opened the public hearing on the DDA and actions related to the relocated Montgomery Hotel. As a point of clarification, Redevelopment Agency Executive Director Susan F. Shick modified the Staff’s recommendation to specify the restaurant tenant be required under the Disposition and Development Agreement to be Real Restaurants, a subsidiary of the Pacific and Caribbean Group, or a like operator of similar quality. Upon motion by Council Member Chavez, seconded by Council Member Dando and unanimously carried, the public hearing was closed and Resolution No. 70403, entitled: “Resolution of the Council of the City of San José Approving the Sale of the Montgomery Hotel Site (Generally Located Between San Fernando and San Carlos Streets) to the Montgomery Hotel Group, LLC; Accepting the 33433 Summary Report and Re-Use Appraisal; and Finding That the Sale of the Property Will Assist in the Elimination of Blight, is Consistent With the Implementation Plan for the San Antonio Plaza Redevelopment Project Area and That the Consideration For the Property is Not Less Than the Fair Reuse Value at the Use and With the Covenants and Conditions and Development Costs Authorized by the Disposition and Development Agreement”; and Redevelopment Agency Board Resolution Nos. 5164, 5165 and 5166 were adopted. Vote: 10-0-1-0. Absent: Shirakawa, Jr.

ADJOURNMENT

The Council of the City of San José adjourned at 6:18 p.m.

RON GONZALES, MAYOR

ATTEST:

PATRICIA L. O’HEARN, CITY CLERK