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Commission backs recommendation to sell downtown surface lot at 2121 Broadway with 30‑year community‑benefit covenants
Summary
The commission recommended that city council authorize a sale agreement for the city‑owned surface lot at 2121 Broadway to a private buyer, subject to community‑benefit covenants including affordable commercial space, public rooftop access, a $100,000 public‑art commitment and minority‑contracting goals; commissioners pressed staff on buyback terms, enforcement timing and parking mitigation.
City staff presented a tentative agreement for sale of a downtown surface parking lot at 2121 Broadway and the Downtown Management Commission voted to recommend the council authorize execution of the sale agreement, after extended questioning about terms and enforceability.
Staff (speaker 2) said the unsolicited offer came from MAOR LLC in late 2024 and that the draft agreement includes community‑benefit covenants running with the land for 30 years with a buyout option after five years (the buyout cost to escalate annually). Key negotiated provisions cited by staff included an affordable commercial space requirement (~2,000+ square feet leased at about 25% below market to local retailers), public rooftop access and events, a commitment of $100,000 to the city’s public art program, a target that at least 35% of in‑hotel art be locally sourced and a 20% minimum construction spending goal for minority‑owned businesses.
The sale also displaces 59 surface spaces; staff described a parking study of three nearby garages that, at a high‑occupancy scenario, left roughly 180 spaces available and concluded the system could absorb the hotel’s expected load (staff said the site could support roughly 479 rooms within the system’s capacity). Staff and the developer discussed mitigation options such as valet agreements and arrangements with other downtown garages.
Commissioners asked sharp procedural and financial questions: why the city used a closed negotiation instead of a public RFP, how the buyback clause would work (a commissioner noted the city could be liable for attorney’s fees, due diligence and other costs if it repurchases), whether the 30‑year benefit period would yield effective public amenities if construction and entitlement timelines delayed delivery, and whether energy performance/solar offset requirements in the draft agreement met city climate goals.
Committee member (speaker 7) moved that the commission recommend that city council (acting as the board) authorize the city manager (as general manager) to execute the sale agreement and all associated documents for the property at 2121 Broadway; the motion was seconded and approved by voice vote. Staff said attorneys would clarify outstanding contract language and timing questions before council action.
The commission’s recommendation advances the tentative agreement to city council; staff said further legal review and negotiation may refine enforcement timelines and the buyout mechanism before the council decides whether to finalize the sale.
