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HomeMy WebLinkAboutRDA Minutes 1998-01-14 Chairman Eugene R. Mullifl M I N U T E S Boardmembers: James L. Datzman Redevelopment Agency Joseph A. Fernekes Karyl Matsumoto Municipal Services Building John R. Penna Community Room January 14, 1998 AGENDA ACTION TAKEN CALL TO ORDER: (Cassette No. 1) 7:09 p.m. Chairman Mullin presiding. ROLL CALL: Boardmembers present: Datzman, Fernekes, Matsumoto, Penna and Mullin Boardmembers absent: None Deputy Clerk Hernandez stated Clerk Barbara Battaya is under doctor's supervision with a viral infection and will be back on the 20th of January; she is her Deputy and will handle the meeting to- night per her authorization. Chairman Mullin welcomed Deputy Clerk Hernandez to the Redevelopment Agency Meeting. GENDA REVIEW AGENDA REVIEW Executive Director Wilson stated: there were no changes to the agenda. CONSENT CALENDAR CONSENT CALENDAR 1. Motion to approve Minutes of the Regular Meeting of Approved. 12/10/97 and Special Meeting of 12/17/97. 2. Motion to confirm expense claims of 1/14/98. Approved in the amount of $158,419.87 M/S Mullin/Matsumoto - To approve the Consent Calendar. Carried by unanimous voice vote. PUBLIC HEARINGS PUBLIC HEARINGS 3. Public Hearing - Consideration of PP-97-083, V-97- Chairman Mullin opened the Public Hearing. 083 and Neg. Dec. No. 97-083, Hilton Gar- ~ dens/Larkspur Landing - Precise Plan allowing two . airport oriented hotels with a total of 280 rooms and open at-grade parking with less than required parking and a variance to allow a reduction in the required Page 1 1 AGENDA ACT!QN TAKEN PUBLIC HEARINGS PUBLIC HEARINGS Public Hearing - Continued M/S Datzman/Fernekes - To defer testimony and continue the Public Hearing to 1/28/98. landscape buffer at 670 - 690 Gateway Blvd. in the Gateway Specific Plan Zone District; Motion to open Carried by unanimous voice vote. Public Hearing, defer testimony and continue Public Hearing to 1/28/98. 4. Public Hearing - Consideration of Neg. Dec. No. 97- Chairman Mullin opened the Public Hearing. 086, PP-97-086 and V-97-086, Homestead Village precise plan to allow a 112 room airport oriented M/S Matsumoto/Datzman - To defer testimony and hotel with open at-grade parking, and a variance to continue the Public Hearing to 1/28/98. allow a reduction in the required landscape buffer, for property located at 550 Gateway Blvd. in the Carried by unanimous voice vote. Gateway Specific Plan Zone District; Open Public Hearing, Motion to defer testimony and continue Public Hearing to 1/28/98. ~'/J O~ Boardmember Penna left the podium: Boardmember Penna left the podium at 7:14 p.m. due to a conflict of interest on item number 5. ADMINISTRATIVE BUSINESS ADMINISTRATIVE BUSINESS Resolution approving a second amendment to the Redevelopment Project Manager Beyer related: he Owner Participation Agreement for the Metropolitan is before the Agency this evening for a second Hotel tenant improvements for the ground floor res- amendment to the Owner Participation Agreement; taurant. ~'qO~ they have been involved in the project for several years, and they have been working with the owner A RESOLUTION APPROVING A SECOND operator of the hotel to try to get a first class quality AMENDMENT TO THE OWNER PARTICIPAo restaurant in the retail space on the first floor at the TION AGREEMENT FOR THE METROPOLITAN corner of Linden and Grand; staff found a restaurant HOTEL RETROFIT PROJECT owner/operator and the plan is that the restaurant will be open by June; both parties are requesting up to a $100,000 grant from the Agency to help put this package together; because of the historic nature of the hotel its older services for a first class restau- rant, which would run off 600 amps of power, there is a need for a new transformer in the area to serve that building; the operator of the hotel adjusted their budget for the retrofit project by $81,000 to help accommodate some of the costs for they have put in over $500,000 into the restaurant itself; a lease has been signed by the two parties for the restaurant, which is contingent upon getting this issue resolved; the Agency has budgeted $750,000 from the recent downtown project area bond issue for the purpose of assisting new businesses downtown; staff recomends that the Agency approve the second amendment in order to move this project forward. 01/14/98 Page 2 A__GENDA ACTION TAKEN ADMINISTRATIVE BUSINESS ADMINISTRATIVE BUSINESS Resolution - Continued Boardmember Matsumoto stated: she wholly sup- ports the restaurant businesses and would love to see, "upscale restaurants" come into the City, but has a hard time with the idea of having low income housing, which is fabulous upstairs, and it is won- derful that we can take advantage of the restaurant in the old historic type building but, the contrast is sharp, we have low income fixed income families on top and a first class five star restaurant on the bot- tom; how are these funds, the $100,000 -- the res- taurant owner has a history in the catering business and that is very good but no track record for this type of a restaurant; and wants a justification of this grant money and how staff came to recommend this to Council. Redevelopment Project Manager Bob Beyer related: our first approach was to do a low interest loan, but after dealing with both parties over the past several months on this project; I have been involved in this project from the very beginning when we started the actual retrofit and the second phase of the retrofit itself; because of the nature of the building the age of it, being a historic building its on the historic role so there are limitations in terms of how you can do things to meet modern day standards and still keep the historic nature of the hotel; and the cost involved with the upgrade or the seismic upgrade that the project is essentially at its limit in terms of the owner/operator's ability to take on any more debt to make the project work for both the housing piece and then for the retail piece; the lease is a ten year lease; while this restaurant will be the operator's first one that he has owned he has operated or man- aged several other restaurants in addition to his present catering business; Mr. Tipton, the own- er/operator of the hotel has done an extensive background and checked him out thoroughly in terms of his capabilities to operate the restaurant, staff has reveiwed this and feels it is the type of thing to do and he recognizes the contrast the boardmember is identifying in the uses, but on the one hand we are trying to preserve some existing housing downtown on the other hand we are trying to create retail, and entertainment or restaurant type uses to create some new vitalities downtown and hopefully draw additional people; one of the things that Mr. Taylor wants to do is have a quick lunch type of thing to try and draw business people from 01/14/98 Page 3 · AGENDA ACTION TAKEN ADMINISTRATIVE BUSINESS ADMINISTRATIVE BUSINESS Resolution - Continued across the freeway and he is already in the process of commencing a marketing program, which he will do once he gets under construction and he is here this evening to answer any questions. Executive Director Wilson related: one other con- sideration staff took in this decision, it was a basic philosophy we have been promoting, that is irrespec- tive of the income level of the people who live in certain projects; management has so much to do with how well the property is maintained and essentially the conduct of its residents; staff has been making an asserted effort to see new people come in to improve the management; we are basically fol- lowing this concept with the Willow Gardens pro- ject, which we are going to be initiating shortly, in this case we have a fine looking structure; we have a business or manager who is going to try to maintain the investment in this building and down below we have an urban mixed use; we have paralleled these efforts with proposals to Bertolucci's, their is the Grand Hotel and similar situations throughout town where we are excited that not only can we dress up the facility but have rekindled management and we feel the entire community is going to benefit. Boardmember Matsumoto related: she understands the Grand Hotel, because I voted on that; but it was a more moderate type of use; she wants this restau- rant here, but is looking at the $100,000 grant and just questioning the investment and how that rational was developed. Executive Director Wilson related: there is one other point that is what we are investing in is actu- ally a hard product so that what we are doing is not the only thing, for ther restaurant operator will be investing a large sum of dollars in the actual estab- lishment of the kitchen, and the electric service, and it actually becomes a benefit to the building, so if by some chance this operator is not successful then there is a facility that is more accommodating to another use or another operator. Vice Chairman Datzman questioned page 2 on the staff report related to the retrofit project not sus- taining additional debt service, and questioned why. Redevelopment Project Manager Beyer stated pri- 01/14/98 Page 4 1 AGENDA ACTION TAKEN ADMINISTRATIVE BUSINESS ADMINISTRATIVE BUSINESS Resolution - Continued marily from the owner/operator's perspective in terms of the building itself, based on the rent that they can charge; forget the housing piece of it, cause we have already gone through that in the terms of the loans and the debt that they have on that; but this is based on what they can charge per square foot or feel that the market will bare at this point and then the cost to get the building to accept the restaurant; if the numbers just don't work for them and it would be better for them from strictly financial perspective not to do the deal. Vice Chairman Datzman questioned the use of the term grant, is grant like a gift in effect no strings at- tached, no stipulations or are there stipulations at- tached too. Redevelopment Project Manager Beyer related: stipulations would be set, there would be a restau- rant that will operate and there will be a lease agree- ment; staff knows the quality of the restaurant; he has talked to the architect on those kinds of things to insure a quality level that staff feels is important for such an action. Executive Director Wilson stated that the OPA remains closed. Redevelopment Project Manager Beyer stated this is just amending this one piece. Vice Chairman Datzman pointed out that one good example of a somewhat similar use is in the 200 block and there were some concerns initially when we started talking of a Buon Gusto Restaurant with housing upstairs, he thinks it is a classic example of success with good management and a good restau- rant mix. Chairman Mullin related: there are undoubtedly 50 restaurants in San Francisco that are not generating the same circulation and both Boardmembers ad- dressed his comments; his concerns is this is a res- taurant that will remain irrespective of this .... particular use and he too hopes the Bacchanal will be there long after we are gone; if for some reason they don't or they expand or they go elsewhere the City has investment in that building, which will then host some other similar type of use. 01/14/98 Page 5 AGENDA ACTIQN TAKEN ADMINISTRATIVE BUSINESS ADMINISTRATIVE BUSINESS Resolution - Continued M/S Fernekes/Datzman - To adopt the Resolution approving the second amendment to the Owner Participation Agreement. RESOLUTION NO. 1-98 Carried by majority voice vote, Boardmember Penna abstained due to a conflict of Interest. Boardmember Penna returned to the podium: Boardmember Penna returned to the podium at 7:23 p.m. CLOSED SESSION CLOSED SESSION 6. Closed Session pursuant to GC 54956.9, initiation of The Agency entered a Closed Session at 7:25 p.m. litigation: one case to discuss the item noticed. RECALL TO ORDER Chairman Muilin recalled the meeting to order at 7:38 p.m., all Boardmembers were present, no action was taken and direction was given. M/S Matsumoto/Penna - To adjourn the Redevel- opment Agency meeting. Carried by unanimous voice vote. ADJOURNMENT Time of adjournment was 7:45 p.m. RESPECTFULLY SUBMITTED, APPROVED. Berma L. He nanaez, eputy Cie ~c E Chairman Redevelopment Agency Redevelopment gency City of South San Francisco City of South 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. 01/14/98 Page 6 1