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HomeMy WebLinkAboutMinutes 2018-03-28 @6:00MINUTES SPECIAL MEETING v O c'gLIFOR��P CITY COUNCIL AND SUCCESSOR AGENCY OF THE CITY OF SOUTH SAN FRANCISCO P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, California 94083 Meeting to be held at: MUNICIPAL SERVICES BUILDING COUNCIL CHAMBERS 33 ARROYO DRIVE SOUTH SAN FRANCISCO, CA WEDNESDAY, MARCH 28, 2018 6:00 p.m. CALL TO ORDER TIME: 6:01 p.m. ROLL CALL PRESENT: Councilmembers Addiego, Garbarino and Gupta, Mayor Pro Tempore Matsumoto and Mayor Normandy. ABSENT AGENDA REVIEW None. None. PUBLIC COMMENTS - comments are limited to items on the Special Meeting Agenda. Public comments were heard during the hearing on Item No. 1 as reflected below. ADMINISTRATIVE BUSINESS Report regarding the Housing Standing Committee recommendation to consider selecting either AGFKASA Partners or Blake Griggs as the preferred developer for a Successor Agency to the Redevelopment Agency of the City of South San Francisco property known as the San Francisco Public Utilities Commission site. (Mike Lappen, Economic Development Coordinator) Economic Development Coordinator Lappen presented the staff report recommending that Council consider selecting either AGFKASA Partners or Blake Griggs as the preferred developer for a Successor Agency to the Redevelopment Agency of the City of South San Francisco property known as the San Francisco Public Utilities Commission (PUC) site. He began by explaining that the current action was focused only on developer selection. There would be numerous additional meetings impacting the site /project, including additional Planning Commission and City Council review. Each of the two (2) developers Avas prepared to provide a presentation about their respective proposals. Coordinator Lappen then introduced Brad Griggs, the managing partner of Blake Griggs properties. Mr. Griggs presented a PowerPoint presentation regarding his company's proposal. He stated the Bay area is in dire need of housing and die City is providing an opportunity to bring needed housing which should help to keep and retain employees of South San Francisco companies. He then introduced Lauren Seaver, Vice President of Development and Sayed Sudbury, Investment Manager. Next, he introduced Andrea Osgood with Eden Housing, Director of Development, Rob Davidson, Vice President Development Asset Management and Mariko Murai from Mitsui Fudosan America, die company's financial partner. Finally, hie introduced Tom Cox and Tod Katsura, the designers for die project. Mr. Griggs provided an overview of the company's experience with various local housing developments and housing models. He discussed the importance of community benefits, including flexibility in architectural design for urban settings. The housing plan for 847 units ranged from very low, to low to moderate incomes and included an active retail presence. The plan also included open space and parkland. The Transportation Demand Management (TDM) plan encouraged the use of mass transit and the integration of the free South City Shuttle. Space was allocated for childcare services. Sustainability was also important. Ms. Seaver reviewed die site plan. She explained it was designed so that people could stay and engage in die communities where they work. The largest component of die project was 605 units, including 70 affordable housing units and 97 units of Eden's purpose -build housing. Mr. Griggs advocated for die selection of his firth, noting that it is solutions oriented. Blake Griggs committed capital, die most units, an affordable and successful retail plan, good architecture and substantial community benefits. He noted the entity's goal was to provide good, diverse and affordable housing. Andrew Kawalhara and his partner, Eric Tao representing AGI/KASA Partners presented to Council. They introduced their team, including their affordable housing partner, Bridge Housing, BAR Architects, DLR Group I Kwan Hemhi, GLS and RHAA. AGI /KASA, is a local community based developer. It is involved in die Treasure Island Redevelopment project and in Bayview Hunter's Point. It worked in South San Francisco on the Terra Bay Master Plan Project, Centennial Towers and Peninsula Mandalay. Mr. Kawalhara then introduced AGI /KASA's financial partner Brookfield. He continued noting that die proposal is really about building a connununity and creating connections inspired by the City's rich manufacturing and industrial heritage. The program consists of 812 units: 20% are inclusionary affordable units at 50 -60 AMI. Proposed buildings would not exceed eight (8) stories in height; none of the buildings will exceed the height of die adjacent. Kaiser Hospital. AGI /KASA was not proposing conventional retail. It believed suburban retail, like a dry cleaner or even a Starbuck's would not work. Mr. Kawalhara proposed starting the first. phase by sourcing small scale manufacturers that produce and distribute. Phase 2 would evolve into a small street style market. Mr. Tao addressed Council advising that when AGI /KASA first looked at the project and its location, it thought "connection." At the forefront was die concept of connecting to the neighborhood, die existing locale and north and the south. The project would connect die new civic community campus with BART and be central to that location. Mr. Tao closed with a quote by Winston Churchill: "we shape our buildings but ultimately our buildings shape us." Mr. Tao emphasized the significance of ensuring that buildings are effective in creating the community that'll be lasting and perpetual for the neighborhood. SPECIAL CITY COUNCIL MEETING MARCH 28, 2018 MINUTES PAGE 2 Mayor Normandy then invited public comment noting that all 12 speakers would be limited to two (2) minutes each. The first speaker was Tanis Crosby, CEO of the YWCA and a 20 year active partner with Eden Housing. She spoke to the quality and integrity of family services it has brought to Blake Griggs projects. Eden /YWCA is also a child care delivery provider for low income and mixed families. Suzanne Franz stated that no resident on Mission Road was for the project. She believed traffic congestion would become even more difficult. than what residents were already experiencing. She further stated that she did not want to look out her window and see high rises. Cathy Rosaia spoke against the project. She stated that 1200 new housing units were already being built in the City. This 12 story project would add more units and was too large. She respectfully requested that die Council reconsider. Cynthia Marcopolis addressed Council. She objected to the project which she believed was out of character with the area. She expressed concern that the streets wouldn't absorb the traffic. Any new housing must fit the area and maintain quality of life for current residents. Lana August stated she understood the need for housing, but urged the Mayor and Council to keep the suburban character of South San Francisco in mind. True affordable housing was paramount. She requested that the Council be mindful of what it is building and its impact on the community. Kate Solis, Executive Director of SFMade, spoke on behalf of AGI /KASA Partners and encouraged support for mixed use sites and the proposed marketplace. She stated -that the advantage to considering a project that includes a maker- manufacturing- retail integrated component is connected to job producing businesses. Such businesses act both as an opportunity for residents onsite to seek employment and an opportunity for young people in the community to see alternatives for employment that may not require an advanced degree. Richard Koenig addressed Council on behalf of the Sheet Metal Union. He felt fortunate to have a home in the Brentwood neighborhood and noted that the prevailing wage and other union benefits made this possible. He encouraged Council to require any developer to be labor friendly. Danny Campbell addressed Council on behalf of the Sheet Metal Union. He urged incorporation of union friendly policies in any development agreement. Donna Smith addressed Council regarding her feeling of being overwhelmed related to the pace of development in the City. James Rui Gomez encouraged Council to require the chosen developer to enter into a project labor agreement that would pay prevailing wage and require the hire of state certified apprentices. Maggie Smith addressed Council noting that traffic would be worsened by the proposed project. She requested that Council require a smaller scale development. She also expressed concern about the ability of the School District to accommodate increased enrollment. Craig Semmelmeyer of Mainstreet Property Services addressed Council. He stated his firm had worked SPECIAL CITY COUNCIL MEETING MARCH 28, 2018 MINUTES PAGE 3 with the Blake Griggs team for over 25 years. He believed the team could deliver great street retail that would make sense for the area. Meeting Recessed: 6:57 p.m. Meeting Resumed: 7:25 p.m. In response to a question from Councilman Addiego, Mr. Griggs confirmed the equity side of the Blake Griggs proposal was 5 -10 %. He stated that typically construction debt on the property leaves 45% equity, which is split between the equity partner and the developer. In this case, the equity partner is willing to go to 100 %. Councilman Addiego next asked Mr. Griggs to address building heights. Mr. Griggs stated his firm was very flexible on height.. A lower project on the corner would provide an additional 18 moderate affordable units. This would put the project. at 23% affordable. Decreasing the height of the tower would convert the "for sale" proposal to rental. Mayor Pro Tem Matsumoto queried the AMI on the Blake Griggs proposal. Mr. Griggs responded that 50% is very low. Councilman Addiego suggested the importance of community understanding related to the differences between the proposals. He stated that another session inight be necessary to ensure the public appreciated these differences. Mayor Pro Tem Matsumoto agreed. She reiterated the significance of AMI stating the 509/6 AMI criteria as follows: 1 person- income of $46,100; fancily of 2 - income of $52,650; family of 3- income of $59,250. Councilman Garbarino agreed that additional hearings for public input should be had before Council makes a decision on the developer. Councilman Gupta agreed. Mayor Normandy stated she was grappling with the parking ratio. She believed lessening the parking ratio was not beneficial to the project.. She stated the need for affordable housing, but believed traffic congestion concerns needed to be addressed as well. She concluded that Council determined to postpone a decision on the developer this evening until additional public input on the matter could be heard. Councilman Addiego invited AGI /KASA to address equity. Mr. Tao of AGI /KASA advised that all of their projects end up moving to completion. In response to a question from Council regarding revenue on the project, City Manager Futrell advised the various taxing entities would receive estimated amounts as follows: South San Francisco Unified School District: 43.91 %; City of South San Francisco: 16.73 %; the County: 26 %. Councilmembers agreed to hear price and terms in closed session, but would have additional meetings for SPECIAL CITY COUNCIL MEETING MARCH 28, 2018 MINUTES PAGE 4 public input before moving forward with developer selection. Meeting Recessed: 7:47 p.m. Meeting Resumed: 9:43 p.m. Meeting Recessed: 9:43 p.m. Meeting resumed: 9:53 p.m. CLOSED SESSION 2. Closed Session: Conference with Real Property Negotiators: (Pursuant to Government Code Section 54956.8) Properties: PUC Site (APN 093 - 312 -060) City Negotiators: Alex Greenwood and Nell Selander Negotiating Parties: City of South San Francisco, South San Francisco Successor Agency and AGI/KASA, Blake Griggs, Republic Metropolitan, Sares Regis, and Summer Hill Housing. Under Negotiations: Price and terms for disposition of the property Time entered Closed Session: 9:53 p.m. Open Session Resumed: 10:55 p.m. Report out of Closed Session by Mayor Normandy: No reportable action. ADJOURNMENT Being no further business, Mayor Normandy adjourned the meeting at 10:55 p.m. Approved: Liza Normandy, Chair City of South San Francisco SPECIAL CITY COUNCIL MEETING MARCH 28, 2018 MINUTES PAGE 5