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HomeMy WebLinkAboutMinutes 2018-05-23 @6:00MINUTES SPECIAL MEETING y JOINT CITY COUNCIL AND �glIFORA 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, MAY 23, 2018 6:00 D.m. CALL TO ORDER TIME: 6:02 p.m. ROLL CALL PRESENT: Councilmembers Addiego, Garbarino and Gupta and Mayor Pro Tern Matsumoto. ABSENT: Mayor Normandy. For purposes of this meeting Council titles assume reference to the Successor Agency tile unless otherwise specified. AGENDA REVIEW None. PUBLIC COMMENTS - comments are limited to items on the Joint Special Meeting. None. ADMINISTRATIVE BUSINESS Report regarding the approval of the assignment of rights and obligations under the Development Agreement between the City of South San Francisco and Oyster Point Development, LLC and the Disposition and Development Agreement between the Successor Agency to the Redevelopment Agency of the City of South San Francisco and Oyster Point Development, LLC, respectively, from Oyster Point Development, LLC to KR Oyster Point Developer, LLC. (Alex Greenwood, ECD Director) ECD Director Greenwood requested Council approval to change the assignment of rights and responsibilities for the Oyster Point Development Agreement to a new developer. He provided background on the Oyster Point Project, including the timeline, assignment process, and financial analysis of Kilroy. He discussed the new developer, Kilroy Realty, and introduced Steve Rosetta, to discuss its financial commitment to the project. He recommended approval of the assignment and assumption of all rights and obligations of the Oyster Point Development, LLC to KR Oyster Point Developer, LLC. Steve Rosetta, Chief Investment Officer of Kilroy Realty, expressed excitement regarding partnering with Oyster Point and taking over the development. He briefly described the company's plans for the development. He introduced the team including Tracy Murphy, Executive Vice President of Life Sciences; Jonas Vaas, Senior Vice President of Construction and Development; Lindsey Floren, Senior Vice President and Real Estate Counsel; and Phil Tate, Senior Vice President and Land Use Counsel. Mina Richardson indicated opposition to the project and sale without adequate housing. Councilman Gupta thanked and congratulated Kilroy for handling the Oyster Point Development Project. In response, Mr. Rosetta explained Kilroy's cash flow and /or borrowing capacity. Councilman Gupta inquired about Kilroy Realty's plans for residential developments west of the 101. Mr. Rosetta stated Kilroy had evaluated the possibility but was currently focused on the life sciences portion of the project. Councilman Addiego apologized for his lack of enthusiasm for the Oyster Point area due to the previous unsuccessful developers. He stated Kilroy had the potential to succeed but recalled the challenges of limited housing and transportation issues. Councilman Garbarino discussed his knowledge of the company. In response, Mr. Rosetta stated Kilroy would adhere to the project timeline for phase one, but the future phases would most likely be altered slightly. Councilman Garbarino requested modifications to some design elements. Mayor Pro Tem Matsumoto expressed hesitation with engaging another company. Mr. Rosetta ensured that Kilroy would balance all projects responsibly, with adequate resources delegated to each. He anticipated ground breaking later in 2018. Director Greenwood explained that Phase 1 C, infrastructure, was underway. He stated the cost was 80% for developer and 20% for the City, $36 million from Successor Agency Councilman Addiego stated the City had $30 million set aside for infrastructure which had to be increased due to the rise of construction costs. SPECIAL CITY COUNCIL AND SUCCESSOR AGENCY MEETING May 23, 2018 MINUTES PAGE 2 Assistant City Manager Lee discussed the unresolved issues of who bore the costs related to potential hazardous materials and need for a landscaping contract. Councilman Garbarino stated it was not uncommon for major contractors to have multiple ongoing projects. City Attorney Rosenberg clarified the required actions. City Council Motion— Councilman Gupta/Second— Councilman Addiego: to approve the Assignment of Rights and Obligations Agreement, pursuant to Article 11 of the Development Agreement by and between the City of South San Francisco and Oyster Point Development, LLC, which effectuates the assignment and assumption of all rights and obligations currently from Oyster Point Development, LLC to KR Oyster Point Developer, LLC. Approved by the following roll call vote: AYES: Councilmen Addiego, Garbarino and Gupta and Mayor Pro Tem Matsumoto; NAYS: None; ABSTAIN: None. ABSENT: Mayor Normandy. Successor Agency: 2. Motion — Boardmember Gupta/Second— Boardmember Addiego: to approve Consent, Assignment and Assumption Agreement, pursuant to Article 3, Sections 8.4 and 8.5 of the Disposition and Development Agreement by and between the Successor Agency to the Redevelopment Agency of the City of South San Francisco and Oyster Point Development, LLC, which effectuates the assignment and assumption of all rights and obligations from Oyster Point Development, LLC to KR Oyster Point Developer, LLC. Approved by the following roll call vote: AYES: Boardmembers Addiego, Garbarino and Gupta and Vice Chair Matsumoto; NAYS: None; ABSTAIN: None. ABSENT: Chair Normandy. CLOSED SESSION 3. Conference with Real Property Negotiators (Pursuant to Government Code Section 54956.8) Property: 200 Linden Avenue, 212 and 216 Baden Avenue Agency Negotiators: Alex Greenwood and Julie Barnard Negotiating Parties: City of South San Francisco, South San Francisco Successor Agency and Hisense REDS, LLC Under Negotiation: Price and Terms Time entered closed session: 6:37 p.m. Open Session resumed: 7:05 p.m. Closed Session resumed: 10:03 p.m. Report out of Closed Session by Mayor Pro Tem Matsumoto: Direction given no reportable action. SPECIAL CITY COUNCIL AND SUCCESSOR AGENCY MEETING May 23, 2018 MINUTES PAGE 3 ADJOURNMENT Being no further business, Mayor Pro Tem Matsumoto adjourned the meeting at 10:21 p.m. Submitted: Kist i Ili, City Clerk City of South San Francisco Submitted: elli, Clerk Succes Agency Approved: Liz ormandy, Mayor City of South San Francisco Approved: yCU�2m �i� ��� U Liza rmandy, Chair Successor Agency SPECIAL CITY COUNCIL AND SUCCESSOR AGENCY MEETING May 23, 2018 MINUTES PAGE 4