To: Honorable Mayor and Members of City Council
From: Molly Rattigan, Interim Community Development Director
Prepared By: Molly Rattigan, Interim Community Development Director
TITLE:
Title
First Amendment to the Amended and Restated Agreement No. 2024-160 of Purchase and Sale and Joint Escrow Instructions for the sale of a parking lot located at 1051-1099 Pearl Street (APN No. 003-166-008 & 003-166-011).
LABEL
RECOMMENDED ACTION:
Recommendation
Approve and authorize the City Manager to execute the First Amendment to the Amended and Restated Agreement (C2024-160) of Purchase and Sale and Joint Escrow Instructions with Coombs Street, LLC to initiate the sale of a parking lot located at 1051-1099 Pearl Street (APN No. 003-166-008 & 003-166-011.)
Body
DISCUSSION:
On July 17, 2024, the City Council adopted a resolution declaring the parking lot property on the southeast corner of Pearl Street and Coombs Street as surplus property and authorized the City Manager to enter into a Purchase and Sale Agreement for the sale of the property to Coombs Street, LLC for $870,000.
On June 24, 2025, the City Council held a public hearing on a Development Agreement with Coombs Street, LLC to construct a hotel on the site known as the First Street Phase II redevelopment. The second reading and adoption of the ordinance implementing the Development Agreement was approved on July 15, 2025 and becomes effective on August 14, 2025.
Today’s requested action authorizes a First Amendment to the Purchase and Sale Agreement to reduce the time for the close of escrow for the conveyance of the Parking Lot Property from Seller to Buyer.
The buyer is in the process of applying for demolition permits and building permits to begin construction on the property. This amended agreement allows for escrow of the property to close within 30 days of the implementation of the Development Agreement for demolition to begin on this site and for construction access.
FINANCIAL IMPACTS:
The City would receive $870,000 because of this sale. Because this parking lot was purchased with redevelopment funds, the proceeds will be deposited to the redevelopment successor agency fund that supports affordable housing related projects and expenses.
CEQA:
The CEQA requirements for this project were approved by the City Council when the Development Agreement was presented to the City Council on June 24, 2025 and July 15, 2025. Pursuant to the California Environmental Quality Act (“CEQA”) and its implementing regulations (the “CEQA Guidelines”), the City prepared the First Street Napa II Project Addendum dated May 29, 2025 for the Project, to determine whether, under CEQA Guidelines section 15168, the Project’s potential environmental effects are within the scope of the development program evaluated by the City in the certified Downtown Napa Specific Plan Programmatic Environmental Impact Report (SCH No. 2010042043) (“DNSP EIR”).
The City Council found that the Project is within the scope of the DNSP and all environmental impacts of the Project were less than significant or can be mitigated to a level of less than significant under the mitigation measures outlined in the Section 15168 Analysis and Addendum. Further, the City Council determined that the Project is exempt from CEQA under CEQA Guidelines section 15332 and none of the exceptions in CEQA Guidelines section 15300.2 have application. Finally, the Council adopted a Section 15168 Analysis and Addendum and determined the MMRP previously adopted for the DNSP EIR as it pertains to the Project.
DOCUMENTS ATTACHED:
Atch 1- Amended and Restated Agreement
NOTIFICATION:
First Street Napa, LLC