410 B Street (APN 010-045-025) to Cornerstone on August 27, 2021,
with specific post-closing obligations. Cornerstone remains in default of
these obligations after several extensions. A notice of default was
issued on August 29, 2024, and a public hearing was held on
December 10, 2024. Following the hearing, Council granted a 120-day
extension (to April 10, 2025) to allow discussions regarding a potential
amendment to the Agreement. While City staff has engaged with
Cornerstone, the extended deadline has passed, and Cornerstone
remains in default. Moreover, the development timelines proposed by
Cornerstone are significantly longer than what staff believes aligns with
the City’s downtown revitalization goals. As a result, the City issued a
new notice of default on May 21, 2025, and scheduled a public hearing
for July 8, 2025, to receive further direction from the Council.
RECOMMENDATION: It is recommended by the City Manager’s Office
that the Council: 1) conduct a public hearing to review evidence of the
defaults by Cornerstone Communities II, LLC (“Cornerstone”) on the
property located at 410 B Street, APN 010-045-025 (“Property”) in
connection with the Agreement of Purchase and Sale for Future Infill
Development and Joint Escrow Instructions (“Agreement”); 2) elect to
repurchase the Property for the Call Purchase Price in accordance with
the terms of section 23 (d) of the Agreement; 3) direct the City Manager
to deliver a Call Exercise Notice to Cornerstone within ten (10) days;
and 4) further authorize the City Manager, in consultation with the City
Attorney, to execute any and all agreements and documents as
necessary to carry out the City Council’s direction and to complete the
repurchase of the Property from Cornerstone in accordance with the
terms of Section 23 of the Agreement.
17. WRITTEN COMMUNICATIONS - NONE.
18. PUBLIC COMMENT ON NON-AGENDA MATTERS
This is the time when any person may address the Council on matters not
listed on this agenda, but which are within the subject matter jurisdiction of
the Council and not able to speak under Agenda Item 14. Each speaker will
be allowed up to three minutes.
19. ANNOUNCEMENT OF CONTINUED CLOSED SESSION ITEMS, RECESS TO
CLOSED SESSION IN THE MAYOR’S CONFERENCE ROOM, RECONVENE TO
OPEN SESSION, AND ANNOUNCEMENTS [IF NEEDED]
20. ADJOURNMENT OF MEETING