Times: Revised real estate deal before council differs little from original
— by Jeffrey Wisniewski — 5 October 2013 — 18 comments below »
Tom Lochner reports:
A revised purchase-and-sale deal with Safeway for the vacant tract known as Sycamore Crossing comes before the City Council on Tuesday as substantially the same one the council rejected four weeks ago.
The price is unchanged, at $5 million. The only substantive difference is a $3 million cap on the cost of removing stockpiled dirt and undergrounding utilities, down from $4 million in the earlier draft. The remaining proceeds would go not to the city but toward bond debt service of the Hercules Redevelopment Successor Agency.
On Sept. 10, several council members expressed misgivings that the deal was too favorable to Safeway and its development subsidiary PDC. [...]
Councilman Bill Kelly had urged approval of the deal, arguing that price was secondary because none of the proceeds would go to the city and that Hercules would benefit from sales tax that a consultant pegged at $14 million to $26 million over 30 years. The council eventually voted 3-2, with Councilwomen Myrna de Vera and Sherry McCoy dissenting, to instruct Duran to negotiate a better deal with Safeway and bring it back to the council Tuesday.
A winning strategy. Likely a 3-2 vote — with Romero the swing.
UPDATE — Passed 5-0, followed by a standing ovation from a plenty-of-seats-available crowd.