HomeMy WebLinkAboutReso RDA 2-1998 RESOLUTION NO. 2-98
REDEVELOPMENT AGENCY OF THE CITY OF SOUTH SAN FRANCISCO
STATE OF CALIFORNIA
A RESOLUTION APPROVING AN AMENDED IMPLEMENTATION
PI.AN FOR REDEVEI.OPMI:.NT
WHEREAS, Assembly Bill 1290, adopted by the State Legislature in 1993 required all redevelopment
agencies to adopt an initial five-year implementation plan for all redevelopment project areas created by the
Agency; and
WHEREAS, the South San Francisco Redevelopment Agency adopted the Implementation Plan for the
four project areas, Downtown Central, Gateway, Shearwater, and El Camino Corridor in January, 1995; and
WHEREAS, the Implementation Plan needs to b¢ amended to retie, ct the changing conditions, activities
and plans for the Agency's four redevelopment project areas.
NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of South San
Francisco that it hereby approves the amended Implementation Plan attached hereto as Exhibit A.
I hereby certify that the foregoing Resolution was regularly introduced and adopted by the
Redevelopment Agency of the City of South San Francisco at a Po.gti ] a rmeeting held on the ~ day of ~
g'tah: , 1998 by the following vote:
AYES: · Boardmembers Oames L. Datzman, doseph A. Fernekes, John R.
P.~n~a_, Karyl -_Ratsumoto an~S. Chai rma,n. Fugene_R. Mul 1 i n
NOES: None
ABSTAIN: None
ABSENT: None
A:\]MPLAN.RDA
I !
EXHIBIT A TO RESOLUTION NO. 2-98
AMENDED
FIVE YEAR IMPLEMENTATION PLAN
City of South San Francisco Redevelopment Agency
Prepared by:
City of South San Francisco Redevelopment Agency
400 Grand Avenue
South San Francisco, California 94080
(650) 829-6620
February 1998
AMENDED
FIVE YEAR IMPLEMENTATION PLAN
TABLE OF CONTENTS
PAGE NUMBER
General & Non-Housing Redevelopment Activities ..................... A-1 through A-11
Affordable Housing Activities ........................................ B 1 through B23
Exhibit A ............................................................ 1-2
February 1998
GENERAL & NON-HOUSING REDEVELOPMENT ACTIVITIES
DOWNTOWN CENTRAL REDEVELOPMENT PROJECT
Accomplishments
A number of significant activities have taken place in the Downtown Central
Redevelopment Project Area since the Implementation Plan was adopted.
Approximately 60 additional parking spaces have been added in the downtown area.
An additional 22 will be added on property acquired on Baden Avenue once the
parking improvements are completed. Funds were committed for the retrofitting of
the retail space in the Metropolitan Hotel, which will house a new restaurant opening
in the summer of 1998. The Grand Avenue library retrofit project was completed as
was the URM program retrofit of 211 Linden. A major landscaping project
commenced on Airport Boulevard, which will sot~en the impact of the roadway by
adding large box trees and landscaping from Grand Ave. to Hillside. Additional
landscaping took place in the form of green areas at important infill lots surrounding
the downtown. The property at the comer of Linden and Baden was acquired to
eliminate a blighted comer and to provide a new home for a local theater group.
The following Table summarizes the non-housing activities, which have taken place
over the past two and one half years. It has been an active time with over half of the
planned funding being committed to implemented projects.
Table No. I
DOWNTOWN CENTRAL REDEVELOPMENT PROJECTS
(Non Housing)
Activity Cost Public Economic Property
Facilities Development Acquisition.
Acquisition of 200 Linden 535,000 535,000
(Includes an additional 22 public parking spaces)
Acquisition 185,000 185,000
of 205 Baden
Acquisition of 616 Linden 335,000 335,000
Giorgi Parking Lot Exchange
Metropolitan Hotel 243,100 243,100
Grand Ave. Library Seismic Retrofit 800,000 800,000
432 Baden Ave. 260,000 260,000
URM Retrofit Program 200,000 200,000
Airport Blvd Landscaping 1,000,000 1,000,000
Downtown Green Areas 80,000
Park Up-grades
211 Linden URM Retrofit/remodeling (loan) 80,000 80,000
TOTAL $3,718,100 $1,800,000 $523,100 $1,315,000
Page A- 1
Tax increment revenues generated in the Project Area during the five-year planing
period are changed from that in the Implementation Plan, primarily, due to a portion
of the $10.0 million bond issue being reflected in 1998. It is estimated that with the
projected improvements through the next two years,
Table II-4
Summary of Tax Increment Projections
Over Five year Planning Period
Downtown Central Project Area
Net TI After
Year Obligations
Historical Cash Balance
1989- 1994 1,545,756
Future 1995 - 1999
FY Ending in 1995 1,552,779
FY Ending in 1996 2,003,482
FY Ending in 1997 661,403
FY Ending in 1998 5,023,638
FY Ending in 1999 1,391,720
Total 12,178,778
Note: The Agency sold a $10.0 million bond issue in
1997, a portion of which is reflected in the year end balance
for 1998.
Since 1993, the Agency has committed about one half or $3,8 million to projects in
the Project Area. The following table summarizes the non-housing projects, which
have taken place by category of development.
Page A-2
Table II-5
Non-Housing Program Activities
Downtown/Central Project Area
Five Year First 2.5 year
Program Activities Projected Costs Expenditures
Public Infrastructure
Street and Circulation Improvements 500,000 200,000
Parking Improvements 1,000,000
Storm Drainage and Relocate improvements · 500,000
Shoreline and Miscellaneous Improvements 0
Public Facilities
Library and other Facilities Improvements 1,200,000 1,800,000
Economic Development
Business Enhancement, Retention and Expansion 1,000,000 523,100
Property Acquisition, Site Preparation and
Cleanup
Property acquisition, Site occupant 3,000,000 1,315,000
Relocation, Demolition and Site Preparation
TOTAL $7,200,000 $3,838,100
EL CAMINO CORRIDOR REDEVELOPMENT PROJECT AREA
Accomplishments
Over the past two years, one major development proposal has been approved in the
Project Area. The McClellan Nursery site received approval for the development of
178 units of market rate housing. Additionally, a below market rate housing
development has been approved for 34 units developed by Mid-Peninsula Housing
Coalition.
The Macy's site on E1 Camino was sold to Costco. Costco is presently submitting
plans to the City/Agency and has commenced negotiations with the Redevelopment
Agency on certain public improvements and development items.
Proposed Plan Amendments
Staffwill be recommending to the City Council that the boundaries of the El Camino
Corridor Project area be expanded to include the Willow Gardens area and the
Winston Manner Shopping Center. The purpose for this action is to provide
necessary assistance in infi:astmcture improvements in conjunction with the
City/Redevelopment agency desire to improve the existing condition of the housing
Page A-3
units in Willow Gardens. The City Council will be considering this program in
March 1998.
The Redevelopment Plan needs to be revisited due to changed conditions regarding
BART since the Project Area was adopted in 1993. BART and the City have
executed an agreement which provides for BART paying the cost for
undergrounding the system through South San Francisco, instead of the City being
responsible for paying the undergrounding costs which was assumed at the time of
the adoption of the E1 Camino Redevelopment Plan.
Table III- 1
Summary of Tax Increment Projections
over the Five Year Planning Period
I Net TI After
Year Obligations
Historical Cash Balance
1993- 1994 [ (332,462)
Future 1995 - 1999
FY Ending in 1995 (170,972
FY Ending in 1996 (796,386)
FY Ending in 1997 (18,666)
FY Ending in 1998 (1,008,513)
FY Ending in 1999 (884,713
The public facilities sections of Table III-2, III-3 and III-4 have been changed to
reflect the BART Agreement by removing, as a project, the tmdergrounding of
BART through the Project Area. Section 2. Public Facilities in Section E." Linkage
Between Programs & Elimination of Blighting Influences" has been eliminated due
to the provisions of the BART Agreement.
Page A-4
Table III-2
Non-Housing Program Activities
E! Camino Corridor Project Area
Program Activities Description
Public Infrastructure
Covering of the Colma Creek Cover all or a portion of the Colma Creek Flood
Flood Channel Channel to encourage development in the corridor
by increasing lot depths along Mission, allowing
the property level to be raised to street grade in
certain areas oft he project, and facilitating
linkages between El Camino Real and Mission
Road. Related improvements to relocate the City
of San Francisco water line parallel to the flood
channel and other related flood culvert
improvement along Mission will also be
considered.
Street and Circulation Upgrade streets, curbs, gutters, and sidewalks, in
Improvements order to bring them up to City standards, improve
access to and within the Project Area and
eliminate visual blighting influences in residential
and commercial neighborhoods. Make other
improvements, including increasing stack lane
capacity and adequate advance intersection
signage on E1 Camino Real and Chestnut Avenue,
as will be required by new
development in the Project Area.
Public Facilities
Property Acquisition, Site Preparation and Cleanup
Relocation/Contingency/ Provide development assistance in the form of
Other relocation payments and assistance to residents
and business owners dislocated by redevelopment
activities.
Source: Report on the Redevelopment Plan for the El Camino Corridor Project, April 1993.
Page A-5
Table III-3
Crosswalk Between Redevelopment Goals and Program Activities
El Camino Corridor Project Area
Program Activities
Property
Acquisition,
Redevelopment Goal Public Public Site Preparation
Infrastructure Facilities and Cleanup
Eliminate and prevent the spread of blight,
nonconforming uses and deterioration and the
conservation, rehabilitation and redevelopment of the Ct Ct Ct
Project Area in accord with the General Plan, future
specific plans and local codes and ordinances.
Achieve an environment reflecting a higher level of
concern for architectural, landscape, urban design and
land use principles appropriate for attainment for the Ct Ct Ct
objectives of the General Plan.
Control unplanned growth by guiding revitalization,
rehabilitation and new development in such fashion as Ct Ct ca
to meet the needs of the Project
Promote new and continuing private sector invesm~ent
within the Project area to prevent the loss of and to ca ca ca
facilitate the increase of commercial sales activity.
Create and develop local job opportunities and preserve
the area's existing employment base. ca ca ca
Develop segments of the community in a manner
consistent with the Housing Element of the General Plan Ct ca ca
and the provisions of the Redevelopment Law.
Eliminate or ameliorate existing substandard conditions,
including substandard vehicular circulation and parking
systems; inadequate infrastructure; insufficient off-street Ct Ct ca
parking; and other similar public deficiencies.
Source: Redevelopment Plan for the El Camino Corridor Area Project, June 1993
Page A-6
Table III-5
Non-Housing Program Activities
E! Camino Corridor Project Area
Program Activities Five-Year Costs
Public Infrastructure
Covering of the Colma Creek Flood Channel $0
Street and Circulation Improvements $0
Public Facilities
Property Acquisition, Site Preparation and Clean-up $0
Relocation/Contingency/Other $0
TOTAL $0
GATEWAY REDEVELOPMENT PROJECT AREA
Accomplishments
Since the adoption of the Implementation Plan in 1994, there has been significant
activity in implementing the Gateway Redevelopment Plan. One of the 150,000
biomedical buildings included in the Plan (Tulerik) has been completed. Fibrogen is
completing its 70,000SF building adjacent to Tulerik. The last building in the
Gateway Business Park is presently under construction and will be occupied by
Athena Neurosciences. A 100 room hotel (Hampton Inn) was approved, however,
construction has not yet commenced.
During the remainder of the Plan period, if the projects, reviewed by the Agency are
approved and constructed, it will result in the Gateway Redevelopment Project being
built out. Submittals have been received for three hotels on Gateway Boulevard,
encompassing 383 rooms. A six-story office tower to complement the existing two
high rise office buildings has been approved by the Agency and will commence
construction in 1998. It is anticipated that during this planning period, there will be
another two office buildings submitted for Agency consideration on Lot #9, the last
area for potential development.
Tax Increment Revenues generated in the Project Area over the past three years and
those projected over the next two years of the Plan are as follows:
Page A-7
Table IV- 1
Summary of Tax Increment Projections
Over the Five Year Planning Period
Net TI After
Year Obligations
Historical Cash Balance
1981 - 1994 [529,971
FY Ending in 1995 183,735
FY Ending in 1996 687,100
FY Ending in 1997 317,032
FY Ending in 1998 903,402
FY Ending in 1999 993,742
Total 3,614,982
SHEARWATER REDEVELOPMENT PROJECT AREA
Accomplishments
The first phase of the Oyster Point Blvd./US101 Overpass was completed. Phase II
consisting of the Southbound Flyover to Gateway Boulevard is presently being
designed and is scheduled for construction in late 1998/99. The widening of Oyster
Point Boulevard fxom Gateway to Marina Blvd. is also currently being designed and
will be under construction in late 1998.
Since the Implementation Plan was adopted, much activity has taken place in the
Shearwater Redevelopment Project Area. The Regional Water Quality Control
Board approved a Remedial Action Plan for the cleanup of the toxic contaminants on
the site. This action has remediated the primary blighted conditions in the Project
Area. The implementation of the Plan continued through 1997. The year also saw
the adoption of a new Specific Plan for the area along with the approval of a
Disposition and Development Agreement and Owner Participation Agreement with
Bay West Cove L.L.C. the owners of the property.
The Specific Plan calls for land uses for the 52 acres to include hotels, sales and
service of new and used automobiles, offices, business and professional services.
The site has been divided into Five Pl~ning Areas and anticipates the following
uses: 1), 20 acre site for an Auto Nation development selling pre-owned
automobiles; 2), 244,372 square feet of retail or a hotel of 225 rooms with 184,258
square feet of retail on a 19.2 acre site; 3) hotel of 250 rooms on a 4.6 acre site; and
4) two hotels consisting of up to a total 450 rooms on an 8.4 acre site. The fifth
Page A-8
planning area is the slot portion of the property, which will be developed as
wetlands.
It is anticipated that at least sixty to seventy percent of the Bay West Development
will come under construction in 1998. This will involve the AutoNation site;
planning area #-4 with a Marriott Courtyard and Marriot Residence Inn and planning
area #3 with a hotel.
Tax Increment Revenues generated in the Project Area over the past three years and
those projected over the next two years of the Plan are as follows:
Table V-4
Summary of Tax Increment Projections
Over the Five Year Planning Period
I Net TI After
Year Obligations
Historical Cash Balance
1988- 1994 ] 529,971
FY Ending in 1995 343,159
FY Ending in 1996 99,616
FY Ending in 1997 (86,786)
FY Ending in 1998 (511,013)
FY Ending in 1999 314,316
Total 689,260
Page A-9
Table V-3
Crosswalk Between Redevelopment Goals and Program Activities
Shearwater Project Area
Program Activities
Redevelopment Goal Public Economic
Infrnstructure Development
Eliminate and prevent blight and deterioration
and redevelop the Project area in accord with
the General Plan, specific plans, the a ca
Redevelopment Plan and local codes and
ordinances.
Eliminate or ameliorate certain environmental
deficiencies, including substandard vehicular
circulation systems; disposal or handling of ca ca
hazardous materials; inadequate water, sewer
and storm drainage systems.
Achieve an environment reflecting a high level
of concern for architectural, open space, ca ca
\ landscape, and urban design and land use
principles
Replan, redesign and develop undeveloped and
vacant areas, which are stagnant or improperly c~ a
utilized.
Encourage investment by the private sector in
the development and redevelopment of the ca ca
Project area by eliminating impediments to such
development and redevelopment
Create and develop local job opportunities to
replace the Project Area's defunct employment ca ~
base.
Create increased cultural and recreation
opportunities for visitors as well as area ca
residents, particularly maximizing the potential
offered by the waterfront
Source: Redevelopment Plan for the South San Francisco U.S. Steel Plant Site, January 1986
Page A-lO
Table V-5 reflects the tax increment commitments to the Bay West Cove
Development from the Redevelopment Agency as provided in the Owner
Participation Agreement.
Table V-5
Non-Housing Program Activities
Shearwater Project Area
Program Activities Five-Year Costs
Public Infrastructure
Oyster Point Blvd./U.S. 101 Overcrossing (Flyover) $1,400,000
Street and Circulation Improvements $2,950,000
Economic Development 300,000
TOTAL $4,650,000
Page A- 11
AFFORDABLE HOUSING ACTMTIES
Major Statutory Provisions of Community Redevelopment Law for Affordable Housing
The major statutory affordable homing requiremems imposed on redevelopment agencies by
Community Redevelopmem Law are as follows:
· Homing Production Requirement -- Specified minimum percentages of new or rehabilitated
housing units in a project area are to be made available at a specified affordable housing cost.
Replacemem Housing Requirement--Agencies must replace housing units removed from the
housing stock as a result of redevelopment activities.
· Housing Fund Requirement--Redevelopmem agencies are required to expend specified
percentages of tax increment revenue for provision of affordable housing.
Housing Production Requirement
State law requires that 15% of all new or rehabilitated dwelling units developed within a
redevelopment project area by public or private emities or persons other than the redevelopmem
agency must be affordable to low or moderate income households. Of these units, 40% must be
affordable to very low income households (which is equivalent to 6% of the new or rehabilitated
units in the project area.)
The requirements are more stringent for housing developed or rehabilitated by the redevelopmem
agency. However, the South San Francisco Redevelopment Agency has not developed housing
directly, but has provided funds to both for-profit and non-profit agencies for the development
and preservation of low and moderate income housing.
All four redevelopment plans are subject to the housing production requirement; however only the
Downtown/Central and El Camino Corridor Project Areas have housing within their boundaries
and will need to meet the production requirements. The Gateway and Shearwater Project Areas
have not produced, nor will produce, housing within their project lifetimes and, thus, are not
subject to Housing Production Requirements and preparation of a Housing Production Plan.
Replacement Housing Requirement
When residential units housing low and moderate income persons are destroyed or taken out of
the low and moderate income market as part of a redevelopment project, an agency must replace
those units with new or newly rehabilitated low and moderate income units within four years. For
dwelling units destroyed or removed after September 1, 1989, state law requires that 75 percem
of the replacement units be available at affordable housing cost to the same income level of
households (very low, low, or moderate income) as the households displaced from the units
removed or destroyed.
Page B- 1
In the City of South San Francisco, Agency actions have resulted in the removal of housing units
in the Downtown/Central Project Area. The Agency has not removed or destroyed homing units
in any of the other project areas since adoption.
Housing Fund Requirement
Community Redevelopment Law requires the Agency to set aside in a separate segregated Low
and Moderate Income Housing Fund (the "Housing Fund") at least 20 percent of all tax increment
revenue generated fxom its project areas for the purpose of increasing, improving and preserving
the commtmity's supply of low and moderate income housing.
Housing Fund moneys must be targeted to very low, low and moderate income levels. Over the
life of the redevelopment plan, the assistance must be provided in at least the same proportion that
the number of housing units needed for the very low and low income category bears to the total
number of units needed for all three income categories.
To meet its targeting requirements for expenditure of the Housing Fund, the Agency will need to
make available at least 33 percent of units assisted with Housing Fund moneys for very low
income households and at least 28 percent for low income households. The remaining 39 percent
of units assisted by means o£the Housing Fund may be affordable to any of the three income
categories.
In the City of South San Francisco, all project areas deposit 20 percem of their tax increment
revenue to the Housing Set-Aside Fund. The Agency has successfully leveragecl these housing
funds with other public and private funding sources in the creation and preservation of affordable
housing units.
Housing Production Plan
This section constitutes the Housing Production Plan of the South San Francisco Redevelopment
Agency's Implementation Plan for the Downtown/Central and El Camino Corridor Project Areas.
The Agency expects to meet its legal housing production obligations under Community
Redevelopment Law.
There are four sections to the Homing Production Plan: (1) Historical Housing Production, which
includes New Construction and Substantial Rehabilitation; (2) Projected Future Housing
Production and Agency Obligations; (3) Affordable (Inclusionary) Housing Production; and, (4)
Replacement Obligation. Every project area must address each of the four required sections.
Consequemly, the Downtown/Central Project Area and the El Camino Corridor Project Area
affordable homing obligations are addressed by area.
The Agency has met or exceeded its projected goals with regard to homing production
obligations. The tables documenting historical and projected residemial units have been amended
for this report based on actual conditions and revised projections for potential housing
developmem in the El Camino Corridor and Downtown Central Project Areas.
Page B-2
Affordable Housinu Obligations for the Downtown/Central Proiect Area
1. Historical Housing Production in Downtown/Central Project Area
From 1995 through June 30, 1999, a total of 103 housing units (102 affordable units and
one market rate unit) will have been developed in the project area. Following are further
details of these projects:
a. New Constmction--Multifamily
New Apartmem
The owner of a single family home at 528 Fourth Lane constructed a new rental
unit over a two-car garage.
b. New Construction--Single Family
No single family units have been constructed in the Project Area since 1989.
c. Substantial Rehabilitation
State law requires the Agency to count substantially rehabilitated multifamily rental
dwelling units (with three or more units) or substantially rehabilitated one or two
dwelling units, which have received Agency assistance, in its production totals.
In the Downtown/Central Project Area, as shown from records from the Building
Department, two housing units have been substantially rehabilitated by private
individuals without affordability restrictions in the Project Area.
While the City has a rehabilitation program utilizing CDBG funds for single family
housing rehabilitation, the Agency does not milize its funds to support these
rehabilitation efforts. However, the Agency contributes funds to a loan program
to owners of commercial and residential unreinforced masonry (URM) buildings.
The Agency's 20 percent Set-Aside Funds are used, where appropriate, to retrofit
residential units to be occupied by very low, low and moderate income households.
The Agency has provided funds for the substantial rehab'flitation and retrofit of the
following buildings containing residential units in the downtown:
Page B-3
Metropolitan Hotel
The rehabilitation of the Metropolitan Hotel, an historic downtown hotel, was
previously identified in the Implementation Plan as a multi-year project. This
renovation, which was initiated in 1993, is in its final construction phase, to be
completed in 1998. This hotel, consisting of 66 SRO units, is being rehabilitated
with a combination of Redevelopment Agency and HOME funds. The Agency and
the City have committed $853,000 in Agency homing funds and $430,000 in
HOME funds for the residential units and $340,000 in Agency (non-homing) funds
for the retail/restaurant portion of the building. The 66 SRO units will be
restricted to very low income rents through the year 2029.
Mexico Tipico Restaurant
The Agency provided a loan of $85,000 for the retrofit and rehabilitation of the
Mexico Tipico Restaurant, which has one homing unit on the second floor. This
dwelling unit is occupied by a very low income owner.
Grand Hotel
The Grand Hotel, located at 731 Airport Boulevard, contains 16 SRO units. The
City is providing $900,000 in Redevelopment Agency funds for the substantial
rehabilitation and seismic upgrade of these units. These units will be deed
restricted to very low income occupancy until the year 2029.
Eight-Plex at 739 Airport Boulevard
The City is providing $400,000 in HOME funds for the remodeling of 8
apartments located at 739 Airport Boulevard. The remodeling will include seismic
upgrade and disabled accessibility modifications. Although this is not a
Redevelopment Agency-sponsored project, the units, which will be deed restricted
for very low income tenancy until the year 2029, can be counted toward meeting
the production goals in the redevelopment agency project area.
2. Projected Future Housing Production and Agency Obligations
The Agency has carefully evaluated the potential for future homing unit production in the
Downtown/Central Project Area to the end of the Plan. Based on an analysis of the
potential for new development on existing vacant residential parcels, the Agency has
developed a projection for the number of units likely to be built in the Downtown/Central
Project Area over the life of the project. The revised Table VI-2 summarizes the historical
and future housing production within the Project Area over the life of the Project.
Page B-4
Table V1-2
Housing Production Summary
Historical & Projected
Downtown/Central Projt~t Area
Total Units
Produced
Year New Rehab Total
Historical
1989-1994 11 2 13
Projeczed
1995o1999 ! 102 103
2000-2004 128 6 134
2005.2029 4 6 10
Total (1989.2004) 140 110 250
Total (1989.2029) 144 116 260
3. Affordable (Inclusionary) Housing Production
a. Agency-Developed Housing
The Agency itself has not directly acted as a developer of affordable housing,
which would require a larger percentage of units to be affordable (30% rather than
15%.) Consequently, the Redevelopment Agency does not have an affordable
housing production requirement for Agency-developed housing.
b. Housing Produced By Private Development
The Redevelopment Agency has found it cost effective and administratively
efficient to provide financ~ assistance, as necessary, to private developers (both
for-profit and nonprofit) and homeowners to produce and rehabilitate affordable
housing, than for the Agency to act as a housing developer.
Through working with private developers to produce housing in the
Downtown/Central Project Area, the Agency has met its 15 percent affordable
.--- housing production (inclusionary) requhcmcnts. Of 103 units constructed or
substantially rehabilitated from 1989 through 1997, 102 units were very low
income units, at the Sundial Alnrtmems (11 traits), Mex~ Tipico (1 unit), the
Grand Hotel (16 units), the aparmm~ at 739 Airport Boulevard (8 units), and the
Metropolitan Hotel (66 units.)
Page B-5
With an obligation to produce a total of 16 units of affordable housing, with 7 of
these units to be very low income housing, the Agency has far exceeded its
production requirements for the Project Area.
From 1998 through the end of the Plan, the Agency will continue to exceed its
affordable production obligation. Table VI-3 shows historical and projected
housing production fxom 1989 through 2029 and the inclusionary obligation
incurred by the Agency.
Page B-6
Page B-7
The revised projections are based on potential development opportunities that have been
identified in the project area. These include a potential for 88 traits of new senior housing
at Paradise Valley, and the substantially rehabilitated units of the Grand, Liberty,
Metropolitan and Industrial Hotels. A complete listing of potential projects is attached as
Exhibit A and is discussed in a later section of this report.
4. Replacement Obligation
The Agency has an obligation to replace units removed at the present Sundial Apartments
site. This site was completed and the new units were approved for occupancy on
August 15, 1989. The project involved the conversion of 22 SRO existing units to 11
studio apartments. Bemuse the Sundial development was completed and approved for
occupancy before September 1, 1989, the Agency does not have to replace the units by
specific income level. Under Community Redevelopment Law, for units removed after
September 1, 1989, 75 percent of the replacement units must be for households at the same
income levels as households displaced.
The Agency also has an obligation to replace two single family homes, which will be
destroyed for construction of a downtown parking lot. The destruction of these two
dwelling units, which were occupied by moderate income households, requires the Agency
to replace the two units within four years. One house, located at 432 Baden Avenue,
contains three bedrooms; and the other house, located at 429 Third Lane, contains two
bedrooms.
In 1995, a restaurant with a residential unit on the second floor was demolished for the
construction of a 34-unit hotel at 751 Airport Boulevard. This housing unit, which
contained three bedrooms, will also have to be replaced.
State Redevelopment Law requires the replacement of an equal number of bedrooms as
the number of bedrooms in the units that are demolished. Atter demolition of the two
houses, the Agency will have to replace a total of 8 bedrooms ~om the two houses and
one apartment within four units of demolition-
In addition, the Agency purchased a house, located at 205 Baden Avenue, which has been
vacant since the purchase. This house, which was purchased from a moderate income
owner, contains three bedrooms. There are no immediate plans for this house, but if it is
demolished in the future, the three bedrooms will have to be replaced.
The Agency's production of 114 affordable units fxom 1989 through 1999 has not only
met its replacement obligation, but has resulted in a significant surplus in the
Redevelopment Project Area. Table VI-4 shows the current status of this replacement
obligation.
Page B-8
Table VI-4
Replacement Housing Obligation
South San Francisco Redevelopment Agency
Units Units Cumulative
Removed Produced Production Balance
Years (Deficit) Surplus [1]
Historical
Before 9/1/89 [2] 22 11 -11
9/1/89-6/30/99 3' 103 100
Total 25 114 89
[ 1 ] Negative numbers under Cumulative Production Balance represent remaining obligation.
[2] The replacement housing obligation must be met within four years of removal. Units
removed before 9/1/89 are not required to be replaced by specific income level. However,
replacement units not specifically required to be very low or low income must be at least
120% or below of median income.
* The three units removed contained $ bedrooms that will have to be replaced with an equal
number of bedrooms.
Source: South San Francisco Redevelopment Agency
Affordable Housim, Production Inclusionarv Obli~,ations
For the El Camino Corridor Proiect Area
1. Historical Housing Production in Downtown/Central Project Area
From July 14, 1993 (the adoption of the Plan), a total of 96 homing units have been
completed in the Project Area. An additional 213 housing units have been approved by the
City and will be constructed in 1998-99. These projects are as follows:
a. New Construction--Multifamily
Greenridge (McLellan Site)--Approved
Greenridge, which is to build on a portion of the land at the McLellan site, is being
developed by Mid-Peninsula Housing Coalition, an experienced non-profit homing
developer. The Agency required Greystone Homes, the developer of the McLellan
single family home site, to participate in the development of affordable housing
units to meet the state's production (inclusionary) requirement. The Agency has
committed $940,000 of homing funds for this development, which will provide 34
townhouse rentals to low and very low income tenants.
Page B-9
b. New Construction--Single Family
El Camino Court--Completed
El Camino Court, a 96-unit condominium project, was completed in the project area.
Promenade (McLellan Site)--Approved
The Agency approved development of 179 single family homes at the 31-acre
McLellan Nursery site, located at 1450 El Camino Real.
c. Substantial rehabilitation
From the adoption of the Plan through June 30, 1997, no housing units have been
substantially rehab'flitated in the project area.
2. Projected Future Housing Production and Agency Obligations
The projected numbers of residential units constructed in the El Camino Corridor have
been si~tmificantly revised from 2,730 units to approximately 500 units during the next ten
years. These revised projections are based on current market conditions, experience with
the development of the McLellan Nursery site, and a new analysis of the land use and
recommendations for unit per acre densities, of the project area.
Table VI-5
Housing Production Summary
Historical & Projected (Revised)
El Camino Corridor Project Area
Total
Units
Produced
Year New Rehab Total
Historical
1993-1994 0 0 0
Projected
1995-1999 373 0 373
., 2000-2004 0 0 0
2005-2033 58 0 58
Total (1993-2004) 373 0 373
Total (1993-2033) 431 0 431
Page B-10
3. Affordable (Inclusionary) Housing Production
a. Agency-Developed Housing
The Agency itself has not directly acted as a developer of affordable housing,
which would require a larger percentage of units to be affordable. Consequently,
the Redevelopment Agency does not have an affordable housing production
requirement for Agency-developed housing.
b. Housing Produced By Private Development
The Redevelopment Agency has found it cost effective and administratively
efficient to provide financial assistance, as necessary, to private developers (both
for-profit and nonprofit) and homeowners to produce and rehabilitate affordable
housing, than for the Agency to act as a housing developer.
In the E1 Camino Corridor Project Area, the Agency expects to meet its affordable
housing production requirements over the next ten years and through the
remaining life of the Project. Table VI-6 shows historical and projected housing
production from 1993 through 2033 and the inclusionary obligation incurred by
the Agency.
Page B-11
Page B-12
The original Plan did not anticipate agency assistance for the production of affordable
units. Opportunities have presented which allow the Agency to assist with the creation of
34 new rental units affordable to very low income households to be built by Mid-Peninsula
Housing Coalition on the McLellan site and the proposed acquisition and substantial
rehabilitation of 64 units that will be affordable to very low and low income households.
Data bom actual projects has been used to update this table which represents the
projected production of 202 affordable units during the period of 1995 - 2004. Of these
units, 4 (2%) are moderate income, 82 (40%) are low income, and 116 (57%) are very
low income.
Of the total of 373 units produced or anticipated to be produced in the project area
through 2004, the Agency will have a production requirement of 56 affordable units, with
22 of these units for very low income households. Development of the Greenridge
project, which will provide 34 very low income units, and the W'fllow Gardens project,
which could provide 64 units of low and very low income housing, will result in a
significant surplus of 42 affordable units in the Project Area.
Table A-5 reflects revised build-out projections for the E1Camino Corridor, assuming that
the density for the Corridor will be reduced fxom 50 units per acre to a maximum of 20-30
units per acre. This issue will be addressed at a later date in the revision of the General
Plan Land Use Component.
Page B-13
Page B-14
4. Replacement Housing Obligation
Since the inception of the Plan, no dwelling units have been destroyed in the E1 Camino
Corridor Project Area. However, the Willow Gardens project anticipates the potential
destruction of four units for the creation of a parking lot. Therefore, the Agency would
have an obligation to replace the four two-bedroom units within four years of their
demolition. The significant number ofatfordable units proposed for the Project Area will
more than meet the replacement obligation.
Potential Opportunities For Housing Production In El Camino Corridor and Downtown
Redevelopment Project Areas
This Implementation Plan is intended to provide general guidance for the Agency's programs and
activities. It is expected that constraints and opportunities, not fully predictable at this time, will
arise in the course of the remainder of the plan implementation period. Therefore, the Agency
intends to usc and interpret this Plan as a flem'ble guide.
The following text summarizes site characteristics that present constraints and opportunities to the
location and type of development that can be accommodated in the El Camino Corridor and
Downtown Central Redevelopment Project Areas. The opportunity sites are mapped in Exhibit A
which include numbers keyed to the descriptions below. These potential development
opportunities are based on certain assumptions made by the Agency relating to revenues, market
conditions, community needs and priorities, and developer interests, among others.
Consequently, should assumptions not be realized or unforeseen circumstances arise,
modifications may be required to the proposed development options. Please note that simply
adding potential projects or programs to the Implememation Plan is not considered an approval of
the project; nor is environmental review required until the actual time of approval These
opportunities are presented as potential developments to provide the Agency with existing
information and background data to facilitate future development decisions and to avoid the need
of having to modify the Plan at a later date should the Agency decide to move forward with a
given project.
1. 294 Hillside. This long vacant site formerly housed a gasoline station which now
contributes to the unsightliness of the neighborhood. The site is an irregular shape
and size which is not suitable for development of more than a couple of units.
Any improvement to the site would benefit the visual quality of the neighborhood.
It has been recommended that the Agency look at the feasib'flity of constructing
two new units of affordable housing at this location.
Page B-15
! 2. Broadmoor Lumber. The lumber company currently operates fi.om this El Camino
Corridor site which is between the new Camino Court Townhouses and the motel.
A 1994 feasibility analysis targeted this site as having great potential for a new
affordable 104 unit townhouse developmem. The zoning in this area was
scheduled to increase fi.om thirty (30) to fit~ (50) units per acre; however, that
density will be the subject of review by the Agency at a later date. Alternatively,
this site would also be appropriate for a smaller, assisted living senior homing
development.
3. California and Airport. The neighborhood surrounding this comer and bounded by
Cypress Avenue to the west, has been the source of considerable friction between
residential and light industrial uses. The incompatibility of uses which now exist
create problems regarding parking, trash cleanup, general congestion and code
issues affecting both commercial and residential properties. Some preliminary
analysis is underway to begin to take a comprehensive approach to planning for
this neighborhood.
4. Industrial Hotel. The Hotel located at Cypress Avenue and Lux, has been the
source of building code and police complaints and activity for many years. The
City is making focused efforts to mitigate the problems that appear to be endemic
__ to this structure. Some thought has been given to creating a new structure for
this site as a means of eliminating the blighted physical and social conditions that
currently exist.
5. Paradise Valley. This site is located in the northwest comer of the Downtown
Central Redevelopment Project Area and consists of deteriorating structures and
poorly designed and managed parking areas. This quadrant of the project area
represents the largest opportunity for development in the Linden and I-lill.4de
Avenue neighborhood. Preliminary analysis shows it to be an ideal site for the
construction of new units of senior homing with commercial retail space facing
Linden Avenue.
6. S~hili/Kalser Site. The developer proposes construction of single family
homes at this location across fi.om Orange Park. Originally, it was thought that a
component of the site could be targeted for affordable senior homing; however, an
agreement has been reached to provide in-lieu funds to create the affordable
co ,mponent in another location. The pro forma is still included for review because
it is very cost effective and may be used for another location.
7. G-reenridge. This is the affordable homing componem of the McLellan Nursery
site. The project design has been approved and construction is scheduled for June
of 1998.
Page B-16
8. Liberty Hotel. This project was proposed to bring 11 long standing vacant units
back into the market. The owners are reconsidering whether to participate in the
program but the funds could be used for another similar project in the Old Town.
9. Grand Hotel/Affordable Housing Project. This single room occupancy hotel and
adjacent eight-plex apartment building will go under construction this month. The
feasibility analysis determined that preservation of these existing historically
affordable units is the most cost effective way of maintaining them in perpetuity.
10. Mexico Tipico. This project is sponsored by the Agency's Unreinforced Masonry
Building Loan Program. The commercial establishment on the first floor is
operated by a low income property owner who lives in the residential unit on the
second floor.
11. Metropolitan Hotel. This project was initiated in 1993 and is currently completing
the seismic retrofit of the hotel rooms. The financial pro forma provides a good
range of costs with which to review the benefits of other similar projects.
12. Rental Rehabilitation Project. A specific location is not proposed at this time;
however, it is likely that the need will arise to provide assistance to a rental
__ property in the Old Town.
13. Women and Children Recovery Residence. There is a great need in the community
for a residence to assist single women head of households with a safe place in
which to recover and be able to keep their children. It is conceivable that a
development could pencil out in one of the small irregafiar shaped lots of the
Project .area.
14. Linden Avenue Produce Market. Clearly, this is not the highest and best use for
this site. Its small shape precludes it for a large scale development and it is located
in a critical neighborhood with significant problems. It would be an ideal location
for a parking lot or infill housing.
15. Willow Gardens Acquisition and Rehabilitation. This project consists of the
acquisition and rehabilitation of 17 four-plex structures. It may be necessary to
amend the El Camino Corridor Redevelopment Area Plan to include thi.q project in
its boundaries. This issue will be brought before the Agency Board for discussion
at a future meeting.
Page B-17
Housing Goals, Objectives and Programs
The Implementation Plan adopted numerous programs and activities to support the development
of affordable housing over the five-year period. The Agency has made steady progress in its
efforts to meet these goals. Following are the major housing programs from the Implementation
Plan and some of the Agency's activities that support those goals since the adoption of the
Implementation Plan:
Program #1: Encourage the development of affordable housing.
Planned Activities:
Provide assistance from all departments within the bounds of local ordinances to stimulate
affordable housing production. Provide technical assistance and financial assistance to
nonprofit developers to provide feasibility analysis, and other redevelopment assistance to
encourage affordable units. Consider the adoption of an Inclusionary Zoning Ordinance to
require a percentage of all units produced in project areas to be affordable to low and
moderate income families.
Accomplishments:
As previously reported, the Agency has successfully developed affordable housing units in
both project areas and will continue to aggressively pursue the development of affordable
housing units at several other sites in the future. The Agency provided funding to Mid-
Peninsula Housing Coalition for feasib'flity analyses of several potential housing sites and is
continuing to work with this non-profit agency for the development of the most
appropriate sites.
In regard to the issue of an Inclusionary Zoning Ordinance, it is recommended that the
Agency Board adopt a policy consistent with Redevelopment law that developers are to
provide the affordable units on site for each development, although an in-lieu fee option
will be proposed where the developer can prove that it is infeas~le to provide the units on
site. In the near future, staff will come back with a draR Inclusionary Zoning Ordinance
for review by the Agency Board. It is felt that this will be the most equitable way to make
sure the units are built, given the high cost of development and the fact that if the Agency
produces the housing directly, the inclusionary requirement is doubled (from 15%
affordable to 30°/$ affordable.)
Staffwill also analyze the viab'dity of a City-wide Inclusionary Zoning Ordinance, which
will be reviewed during the City's update of the General Plan and the Housing Element in
the near future.
Page B-18
Program #2: Provide housing opportunities and supportive services for very
Iow income renters and persons with special needs.
Planned Activities:
Undertake programs to provide financial assistance for acqUiSition aha/or physical
improvements to existing boarding rooms, single room occupancies, and other existing
rental units. Increase the supply of affordable rental units by providing financial
assistance to developers for the creation of new multifamily rental units. Provide financing
or incentives to preserve affordable housing at risk of reverting to market rate as subsidies
expire. Undertake rehabilitation programs for older rental units posing a health hazard
due to lead poisoning.
Accomplislunents:
As previously memioned, the Agency has provided funding for substantial rehabilitation
for SRO units at the Metropolitan Hotel and the Grand Hotel. The Agency has also
committed funding to Mid-Penin.qula Housing Coalition for feas~ility analyses for
development of several affordable housing projects and has committed funding for 34
affordable housing units at Mid-Peniusula's Greenridge Development at the McLellan
site.
Program #3: Provide services enriched shelter and transitional housing for
homeless persons and families and prevent households at-risk from
becoming homeless.
Planned Activities:
Stimulate the construction of new shelter and transitional opportunities by providing direct
financial support or incentives, streamlining the permit process, providing density bonuses,
and other forms of assistance within the bounds of local ordinances and policies.
Accomplishnems:
The Agency provided funds to the Human Investment Project for a shared housing
program which matches individuals who cannot afford the rents of conventional
apartmems with people who are willing to share extra space in their homes. Thc Agency
also provided grant funds to Shelter Network, which provides housing and services for
homeless persons.
Page B-19
Program #4: Provide opportunities for Iow and moderate income homeowners to
maintain and repair their homes and promote neighborhood
revitalization.
Planned Activities:
Assist very low, low and moderate income homeowners to maintain and repair their
homes by providing low interest loans for housing rehabilitation. Assist low income
elderly homeowners to remain in their homes by allowing them to borrow against the
equity in their homes to receive a monthly income.
Accomplishments:
The City provided CDBG grant and loan funds for rehabilitation and minor home repairs
for low income homeowners in the Downtown target area. The City also instituted a
highly successful home repair voucher program, which provides up to $2,500 for
emergency home repairs for low and very low income homeowners.
Program #5: Provide homeownership opportunities for first-time homebuyers
earning less than 120% of median income.
Promote the Agency's interest in developing affordable housing; provide assistance or
incentives to stimulate the creation of new homeownership opportunities; provide
financing to subsidize the purchase or buy down the developers cost of new housing to he
affordable to persons of moderate income. Support efforts to provide first time
homebuyer opportunities by working with other agencies with housing programs,
Mortgage Credit Certificate, and Corporate Homebuyer Programs.
Accomplishments:
In 1994, the City assisted in the marketing ofthe Start Program, a first-time homebuyer's
program developed by the County. This program, which provided deferred loans for
downpayment assistance and closing costs, used up all funds within two months of starting
the program due to the high demand for the available funds. On an on-going basis, the
City participates in the County-administered Mortgage Credit Certificate Program, which
provides a tax reduction for eliga~ole low and moderate income homebuyers.
The Agency has not developed a downpayment assistance program for first-time
homebuyers because of the large amount of subsidies that would he required to write
down the cost ofhomeownership for low and moderate income buyers. However, the
Agency will look at options for a first time homebuyers program ifa cost-effective
..- opportunity should become available.
Page B-20
Housing Set-Aside Fund
The primary funding source for the Agency's affordable housing activities during the
Implementation Plan period is the 20 percent portion of annual tax increment revenue deposited
by the Agency into its Housing Set-Aside Fund. The Agency first deposited moneys into its
Housing Set-Aside Fund in Fiscal Year 1983/84.
As Table VI-9 shows, the Agency has a surplus in the Fund. State law requires that funds be
committed within three years of their becoming "excess surplus" which is defined as the greater of
$1,000,000 or the difference between the total of the previous four year's 20% deposits to the
Fund and the unencumbered balance at the end of the current fiscal year. The law allows an
Agency to offset the "excess surplus" with the previous year's expenditures and encumbrances.
On June 30, 1997, the Agency's Housing Set-Aside Fund had a remaining excess surplus of
$203,000 for the 1994-95 fiscal year, which must be committed by June 30, 1998. With
expenditures planned for the Grand Hotel during the current fiscal year, the excess surplus will be
eliminated for the 1994-95 fiscal year and the excess surplus for subsequent fiscal years will be
eliminated with significant expenditures for the Willow Gardens project.
Table VI-9
Housing Fund Excess Surplus
Tax Increment Deposited
in Housing Fund
Fiscal Annual Subtotal Over Unencumbered Excess
Year Over Previous Balance Surplus
Four Years
at End of
Fiscal Year
11989/90 389,508
I 1990/91 I 481,563
I 1991/92 I 581,835
I 1992/93 467,876
I 1993/94 725,136 1,920,782 ' 2,460,013 539,231 [
1994/95 688,478 2,256,410 3,194,254 937,844
1995/96 600,457 2,463,325 3,286,459 823,134
1996/971 723,829 2,481,947 3,847,714 I 1,365,767 I
Deposits Through the 1998-99 Fiscal Year
The Agency will continue to deposit 20 percent of annual deposits to the tax increment revenue
from all four project areas into the Housing Fund. A summary of actual and projected annual
revenues available for direct program expenditures during the Implementation Plan period is
shown in Table VI-10.
Page B-21
As shown in the table, an estimated $3.8 million is currently available in fund balance. The
Agency anticipates using the majority of these funds for the proposed Willow Gardens project.
Table Vl-lO
Housing Fund Set-Aside Balance
Fiscal Annual Less Fund
Year Revenues Expenditures Balance
1993/94 853,287 60,804 2,460,013
1994/95 858,805 117,770 3,194,254
1995/96 841,705 751,322 3,286,459
1996/97 960,748 199,848 3,847,714
1997/98 1,032,310 1,000,000 3,880,024
1998/99 1,109,733 1,000,000 3,989,757
Note: Annual Revenues reflect tax increment revenue, interest and otherI
I
reventle
The Agency anticipates combining its Housing Fund revenue with other funding sources for
affordable housing production to maximize the number of affordable units that can be developed
or rehabilitated with the available funds.
Targeting of the Housing Fund
The Agency plans to target its Housing Fund to specific income groups based on its fair share of
regional housing needs as determined by the Association of Bay Area Governments. Over the life
of the Plan, it is the Agency's policy that at least 33 percent of units assisted with Housing Fund
moneys will be for very low income households and at least 28 percent for low income
households to supply its regional fair share of housing as determined by ABAG. The remainlnE
units assisted by means of the Housing Fund may be affordable to any of the three income
categories. As shown in Tables VI-11 and VI-12, over the next ten years, the majority of housing
funds will assist very low income households.
Page B-22
Table VI-Il
Units Produced With Housing Funds
and Proportion by Income Category
Historical & Projected
Downtown/Central Project Area
Assisted Very Low Low Moderate Total Affordable
Units Produced Units % Units % Units % Units %
Historical
1989-1994 11 100% 0% 0% 11 100%
Projected
1995-1999 102 100% 0 0% 0 0% 102 100%
2000-2004 128 96% 6 4% 0 0% 134 100%
Total 241 98% 6 2% 0 0% 247 100%
Table VI-12
Units Produced with Housing Funds
And Proportion by Income Category
Historical & Projected
E! Camino Corridor Project Area
Assisted Very Low Low Moderate Total
Affordable
Units Produced Units [ % Units I% Units I% Units I%
Historical
1989-1994 [ I ] I I ] 0 ]
Projected
1995-1999 66 66 100%
2000-2004 50 48% 50 48% 4 2% 104 100%
Total 116 57% 82 40% 4 2% 202 100%
The Agency recognizes the important role of housing programs and activities in its redevelopment
progranx Consequently, the proposed affordable housing programs should be viewed not simply
as the means of implementing the Agency's stated goals and objectives related to affordable
housing but as key elements in its overall revitalization efforts.
C:~msoffice\winword~adra-2.~ioc & pa~B23.doc
Page B-23
AFFORDABLE HOUSING ACTIVITIES
EXHIBIT A
February1998
0 o°
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Exhibit A - Page I of 2
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Exhibit A - Page 2 of 2~ .~ ~