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HomeMy WebLinkAboutRDA Minutes 1995-02-08 V~L, ~I Chairman Robert Yee M ! N U T E S Boardmembers: Jack Drago Redevelopment Agency 0 ~ ~ Joseph A. Fernekes ~--John R. Penna Municipal Services Building Roberta Cerri Teglia Community Room ' ':'~ February 8, 1995 AGENDA ACTION TAKEN CALL TO ORDER: (Cassette No. 1) 7:15 p.m. Chairman Y~ presiding. ROLL CALL: Boardmembers present: Drago, Fernekes, Perma and Y'ee. Boardmembers absent: Teglia. AGENDA REVIEW AGENDA REVIEW Executive Director Wilson stated there were no adjustments to the Agenda. CONSENT CALENDAR CONSENT CALENDAR -- Motion to approve Minutes of the Regular Meeting of Approved. 1/25/95. 2. Motion to confirm expense claims of 2/8/95. ~0/t9 3 Clerk Battaya stated there are no claims to approve. M/S Fernekes/Drago - To approve the Consent Cal- endar with the exception of Item No. 2. Carried by unanimous voice vote. Boardmember Teglia Arrived at the Podium: Boardmember Teglia arrived at the podium at 7:18 p.m. ADMINISTRATIVE BUSINESS ADMINISTRATIVE BUSINESS 3. Discussion of Shearwater site - Bay West Develop- Boardmember Penna left the podium, due to a con- ment proposal. ~O.~ flict of interest, and did not take part in the discus- sion nor vote on this item. Executive Director Wilson stated representatives of Bay West Group made a presentation to discuss the development of Shearwater with the combination of retail and a gaming room. The Agency asked staff to go back and analyze what process or steps to are needed for the application. He stated staff conduct- ed the initial review and Interim Director of Econ- omic & Community Development Beyer will present 2/8/95 Page 1 '1 [] AGENDA _AC_TIQN TA_K_EN. ADMINISTRATIVE BUSINESS ADMINISTRATIVE BUSINESS Discussion of Shearwater site - Bay West Develop- the staff report. ment proposal - Continued. Interim Director of Economic & Community Devel- opment Beyer stated that the staff report outlined the necessary steps the Agency must take to consider the proposal with a timetable attached to the staff report: evaluation of the land use - Police Depart- ment will make a thorough background investigation of the eardroom casino operation, provide a report of the findings and, if the project moves forward, there will be Municipal Code amendments for the proposed use of a cardroom casino and a staff analy- sis will be carried out to look at the Costs and bene- fits, which will take 60 days to complete; activity with City owned parcel - it is six acres on Oyster Point Blvd., is surrounded on three sides by the Project, the Agency must determine whether the parcel is to be included as part of the proposed project, which would require an appraisal that will take about 45 days to complete, and a General Plan Amendment would be required, which will take ap- proximately eight months to complete; if we moVe '~ forward with the analysis a number of the steps can be going on simultaneously. Executive Director Wilson stated there was another issue not in the staff report - whether or not the Council will consider an election for the gaming. A decision must be made to allow time to accommo- date the November election, if that is the Agency's choice. Chairman Yee stated he looked at Policy 47 of the General Plan, that pretty much requires an election and he did not know if there is a choice on the matter. Boardmember Drago wanted a clarification because of a letter he received from a resident stating that the 6/27/84 General Plan says that, without the ap- proval of the electors, nb new clubs will be allowed and that existing dubs will not be allowed to expand nor to relocate to another area of the City. He questioned if that is still in force. Executive Director Wilson stated it is but the Agency has certain authority, as a City under State mandates, that if the City chooses it can modify the local ordinance and the General Plan and proceed 2/8/95 Page 2 ADMINISTRATIVE BUSINESS ADMINISTRATIVE BUSINESS Discussion of Shearwater site ~ Bay West Develop- without an election. He stated it takes affirmative ment proposal - Continued. action in both the General Plan and the gaming ordinance and he recommends that should be ad- dressed with respect to the project; etc. Boardmember Drago asked if there will be public hearings as to whether or not there is an election. Executive Director Wilson replied that to modify the gaming ordinance you have to go through public hearings and amend the General Plan through the Planning Commission and the Council. Discussion followed: the timetable; Boardmember Teglia noted that to amend the General Plan it must go to public hearings before the Planning Commis- sion, however, this project is in the redevelopment area and the Agency sits as the Planning Commis- sion, which will short circuit the time involved; City Attorney Mattas stated the amended Policy 47 is required to go through the Planning Commission and he was not aware that the Council is designated as a Planning Commission; Boardmember Teglia stated the Council is for each of the redevelopment areas; City Attorney Mattas stated he would confirm that and stated the role of the Planning Commission is one that is required under State law; he stated that, if General Plan Amendment was specific to the redevelopment areas only, then there may be the authority to do that; the difficulty is if the General Plan Amendment is broader in effect; if the Agency focuses on a particular area and allows gaming in that area it becomes an allowable use, but it should be discouraged anywhere else in the community; City Attorney stated he would find out; Board- member Teglia felt that is important because it allows the Council flexibility on actions and also it might allow them to shorten the timeframe; Board- member Yee asked if the information is still forth- coming from staff; it will be part of the analysis staff plans to have for Council in 60 days; if this project comes forward strictly as a redevelopment commercial project, then it would be because of the unique development for they are talking about gam- ing and owner participation and that is why the CounCil is involved earlier than normal; the big vote could be in approximately 60 days; Chairman Yee noted that, if the Board does not like the cardroom on this site, then all this work for the next 60 days 2/8/95 Page 3 AGENDA ACI!QN TAKEN ADMINISTRATIVE BUSINESS ADMINISTRATIVE BUSINESS Discussion of Shearwater site - Bay West Develop- is wasted; the applicant should be asked if the pro- ment proposal - Continued. ject is still viable without the gaming; the costs will be negotiated for the staff work; if this project does not go forward 60 days from now this appraisal should not go forward, because staff is going to spend thousands of dollars on a project whose bene- fits are questionable; :there is a degree of risk, be- cause of the nature of the project with the cardroom, and staff was talking to the Developer in terms of spending dollars so the project can proceed; the City will not spend money on their behalf; Boardmember Drago was not sure that is correct and asked why would the applicant want to pay for an appraisal of the City's property; he felt, if a development like this fails now, then the City should reevaluate that land, because we are going to need the money re- gardless; an appraisal has a short shelf life; if the applicant feels a need to proceed then staff would be looking for the applicant to advance the necessary funds; if the project proceeds, there will be an owner participation agreement and the Board ~7_ can look at all the economic factors and create a fair and equitable transaction; we need an appraisal if this or any other project proceeds - the Board must know the fair market value; either the data is going to come in and it is going to support the project or we will go on with our business; etc. Boardmember Teglia felt we could take all of these steps or do one then the next and, four years from now, we would still be entertaining this with a may- be yes or a maybe no. She does not have a problem with this, would ask for a policy direction to direct staff to do as much as they can concurrently and fast track this and she had not a problem spending City money to make money with the proper available data. There may be down sides to the community and we need that information so we can make a decent decision. She has had one position on this for a lot of years, based on information that is ten and fifteen years old. Council is going to have to stand up and speak and not just say whether we are going to have an election or not. M/S Drago/Teglia - Staff be directed to implement the schedule attached to the staff report. 2/8/95 Page 4 020"' ADMINISTRATIVE BUSINESS ADMINISTRATIVE BUSINESS DiscUssion of Shearwater site - Bay West Develop- Boardmember Teglia wanted the time'table adjusted ment proposal - Continued. to a faster timetable when the data is brought back by staff. Chairman Yee stated the motion is to ask staff to not only do a study on this particular project, including the cardroom benefit and retail, but the whole pro- ject and also, at the same time, go through the planning process. In essence, if the cardroom is not accepted, for example 60 days from now, then the costs and whatever efforts would be wasted. Boardmember Drago stated that is his understanding. The stakes are high enough sitting out there, we have invested before in certain projects and if they fail, they fail. Chairman Yee reiterated his position of being in opposition to the cardroom on that site. Boardmember Fernekes stated that staff would come back with the informatiOn requested and all he was directing them to do is the work they had to' do in a timely manner. Executive Director Wilson understood that staff is to work with all applicants in a very expeditious man~ net. Boardmember Teglia did not agree with the City Manager's comment. She would not look at this applicant as any ordinary applicant. She is saying fast track, because the stakes are just too great here. Carried by majority roll call vote, Chairman Yee voted no and Boardmember Penna abstained. Mr. Thomas M. Powers, 3223 Blume Dr., Rich- mond, CA, stated he assumed in moving forward the Agency was giving an exclusive right to the person who has raised the issue before them, which he now knew would be done at another time. He represents a group that may have an interest in this property as well and wanted to be considered for a cardroom. At some time in the future, if the Agen- cy considers the disposal of this property, he wanted others to be considered as well. Chairman Yee assumed if they allowed one appli- 2/8/95 Page 5 ' i AQENDA AC!IQN TAKEN 021 ADMINISTRATIVE BUSINESS ADMINISTRATIVE BUSINESS Discussion of Shearwater site - Bay West Develop- cant they could allow others as well. ment proposal - Continued. Boardmember Teglia was not sure that was accurate. First of all Mr. Powers talked about disposal of propc-rty. The only property the City has an interest in, as an owner, is a piece of property on Oyster Point Blvd.. We are talking about a development application on another piece of property next to this. We purchased that property to have some influence on the development of the neighboring property and, in the past, we have tied it to the Shearwater proper- ty also, Mr. Powers mentioned eardrooms. Mr. Powers was confused about what the process is. He heard of this recently, he represents a local group who has an interest in a cardroom in this fine City and wants the opportunity to make a presenta- tion to the Agency and address properties in the redevelopment area. He wanted to make sure there are opportunities for others. City Attorney Mattas stated any applicant can make application to the City. Mr. Juan Pifarre, 2601 Mission, g900, S.F., stated he represented the Santiago Newspaper, which has a wide hispanic circulation and are following this issue with interest. He stated many hispanics work in the restaurant, hotel and entertainment business and this project will gain revenue and jobs for the City. He asked that the City look at all qualified applicants' performance in a community, how well they have lived up to their commitments to the community, their generated revenue, expenses and track record in a community and see what is the best deal possi- ble for this City. He stated that the 101 Club in San Jose does $30,000,000 a year, gives $1,000,000 to the City and it is said it may generate $50,000,000 in the future; etc. Boardmember Teglia stated all the folks interested in the site should talk to the Master Developer, as it is up to him as to whom he brings forward. She asked the City Attorney if the Agency has the ability to be somewhat exclusive, because she does not want to have a proliferation of cardrooms - one is sufficient, and asked if they could restrict the number of tables. 2/8/95 Page 6 AGENDA AcIIQN TAKEN .. 022 ADMINISTRATIVE BUSINESS ADMINISTRATIVE BUSINESS Discussion of Shearwater site - Bay West Develop- City Attorney Mattas stated that could b~ restricted, ment proposal - Continued. through the zoning process, to an area and also re- strict the number of tables. Boardmember Drago stated by the time April comes around you will find that many things will be ad- dressed by the zoning. One of the things Council reqUested, if this project is adopted, is the conditiofi that there will be local training and hiring of local people to fill the jobs. Mr. Lou Dell'Angela thought it good that staff was proposing the research, because it is good for the people to know about the business we are getting into, which is a casino of up to 150 card tables. Some of these studies are moving into October and November and he thought of its negative influence with Policy No. 47 and felt it should go to a vote of the people. He could not understand why you would bypass the people on a vote. He stated we are not fast tracking, because we could get some of the approvals contingent on the election. If the people say no, we don't want the 150 tables, then the people have spoken. He was the Director of Planning when Policy No. 47 was drafted. Specifics on an expansion was an important issue that should be put to the people, for it is the General Plan that concerns the entire com- munity. He did not believe the Council would achieve anything positive from fast tracking. He asked the Agency to modify the schedule, go for an election in November and make it contingent on the people. Boardmember Teglia stated you can't amend the General Plan in the redevelopment area without public hearings and if, in fact, data comes out and says the City should entertain it and, if an applica- tion comes along, then fast track it. She did not feel they have eliminated people's roles. She has some concerns about an election but would __ save that for another time. Boardmember Drago did not feel anyone was ruling out an election at this point. However, it seems to him, when the public hearings are held, if there is 218195 Page 7 AGENDA ACTION TAKEN 025 ADMINISTRATIVE BUSINESS ADMINISTRATIVE BUSINESS Discussion of Shearwater site - Bay West Develop- no great outcry, he would be turning his back on the ment proposal - Continued. community and ignoring something that is poten- tially good for the City while we are laying off people and closing libraries. He stated public hear- ings will be held and, at that time, there will be input because of the General Plan Amendment. Mr. Bill Poland, Owner Bay West Group, stated he has tied up the Shearwater acres on land and in the water, put up $200,000 and $100,000 is not refund- able. He spoke in detail of the strengths, weaknesses, opportunities and problems with the Project. Strengths - he has been looking for a site and has concentrated on Shearwater, for it is a large site with freeway access and it has a physical barrier to neighborhoods from 101; it has excellent access at Oyster Point Blvd.; the traffic they plan on generat- ing is less than the previously approved project, which called for office buildings. Weakness of the property - it is the toxic hot spot in northern Califor- nia; it borders on the bay so BCDC requires per- mits; the Army Corp. of Engineers has designated a wet land area and there are negotiations with one of the toughest agencies in the United States; both the land and the bay have sediments that are toxic sub- stations; Water Quality Control comes into the pie- ture. Opportunities - S.S.F. has the prospect of a clean site that is productive and brought back to use after being dormant due to problems; the cost of the clean up of the site makes it a difficult site; there are hundreds of people that have passed it by in consid- ering developing it; an appraisal is not a short life, it has several years; we have committed to hiring environmental consultants on behalf of the City and we will pay the bills; the City will make the desig- nation of who to hire; the cardroom casino that we intent to develop is the piece of the pie to make it work and we have a master plan; the balance of the site will have retail uses with freeway access; there will be a furniture store and WalMart, which will bring sales tax to the City. Problems - will be ad- dressed later; etc. Mr. Mike Finigan, Principal Parmer in Hollywood Park, stated if allowed to proceed with the cardroom they have capability to do that, because they have been a public company for fifty years, are subject to 2/8/95 Page 8 AGENDA ACTION TAKEN O24 ADMINISTRATIVE BUSINESS ADMINISTRATIVE BUSINESS · Discussion of Shearwater site - Bay W~st Develop- the Securities & Exchange and are traded on the ment proposal - Continued. stock exchange. He proceeded to show slides of the current Hollywood Park operation. There is a golf and sports center with a potential for a stadium on the 335 acres in Compton. A Hollywood Park Mar- ket Place is planned for the Shearwater site. Chairman Yee apologized to the audience and said he did not know the Developer was going to make a presentation tonight - for it is now 8:20 p.m Mr. Ito, Hollywood Park, stated they have a 40 table card room in San $ose that generates $4.5 million to the City and the jobs created are directly related to the hospitality industry. Mr. Gobney, Chief of Security at Hollywood Park, stated there are 99 officers on their staff with a surveillance system and the police do not respond to problems due to their system. GOOD AND WELFARE GOOD AND WELFARE No one chose to speak. RECESS: Chairman Yee recessed the meeting at 8:37 p.m. and the meeting will be reconvened after the Council meeting. RECALL TO ORDER: Mayor Yee recalled the meeting to order at 10:30 p.m., all Council was present. CLOSED SESSION CLOSED SESSION 4. Closed Session: pursuant to GC 54956.8, conference The Agency adjourned to the Closed Session at with real property negotiator regarding price and 10:31 p.m. to discuss the items noticed. terms for potential acquisition of 205 Baden Ave. - negotiating party Thomas Kelly; pursuant to GC 54956.8, conference with real property negotiator regarding price and terms of payment for potential acquisition of 261-265 Grand Avenue with Martin Metro Associates; pursuant to GC 54956.8, initiation of litigation, number of potential eases: 1. RECALL TO ORDER: Chairman Yee recalled the meeting to order at 1:00 a.m., all Council was present, direction was given and the Agency authorized initiation of one litiga- tion. 2/8/95 · Page 9 A_0. E_ND A ACTION TAKEN 025 __ M/S Drago/Penna - To adjourn the meeting. Carried by unanimous voice vote. ADJOURNMENT: Time of adjournment was 1:01 a.m. RESPECTFULLY SUBMITTED, APPROVED. Barbara A. Battaya, Clerk d/ Rober~ Yee, Zhairman Redevelopment Agency Redevelopment Agency City of South San Francisco City of Sout~ San Francisco The entries of this Agency meeting show the action taken by the Redevelopment Agency to dispose of an item. Oral communications, arguments and comments are recorded on tape. The tape and documents related to the items are on file in the Office of the City Clerk and are available for inspection, review and copying. 2/8/95 Page 10