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HomeMy WebLinkAboutMinutes 2014-04-16 @6:00 S`iPECIAL MEETMG MINUTE S CITY COUNCIL OF THE FF CITY OF SOUTH SAN FRANCISCO P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, California 94083 Meeting to be held at: MT INICIPAL SERVICES Bt 111,I)INGr Council Chambers 33 ARROYO DRIVE SOUTH SAN FRANCISCO, CA WEDNESDAY, APRIL 16, 201.4 6:00 P.M. Purpose of the meeting: I. Call to Order. Time- 6:01 p.m. 2. Roll Call, Present: Councilmembers Addiego, Gupta and Normandy, Vice Mayor Garbarino and Mayor Matsumoto. 3. Public Comments —comments are limited to items on the Special Meeting Agenda. Julie Lind, San Mateo Labor Council Director, was present to urge passage of the superstore ordinance, as well as certification of the EIR. She gave a brief description of the negative impact superstores have on existing retailers and how up to $2.8 billion a year is lost in wages and benefits, which would be substantiated by the EIR. 4. Agenda Review No changes. PUBLIC HEARING 5. An Ordinance amending the Zoning Code to prohibit superstore uses city-wide and grocery and supermarket uses in the East of 101 area and consideration and certification of an associated Environmental Impact Report (Tony Rozzi, Associate Planner). Mayor Matsumoto opened the public hearing at 6.06 p.m. Associate Planner, Tony Rozzi presented the report detailing history of the item which began in December,2012. Subsequent EIR found that the identified usage could cause various negative effects on the City and the Council adopted a moratorium which will expire this year.The project objectives are to eliminate superstores East of 101,which will allow the existing markets and retailers of groceries to stay open and continue serving the populated neighborhoods they're in.CEQA items were summarized and it was concluded there would be no environmental impacts of the ordinance, which makes it an overall environmentally superior alternative. Public Comments incorporated as part of public hearing: Jerry Reid long-time resident spoke in support of the ordinance. Rich Hedges spoke in support of the ordinance, citing the Warden School Study, the City's study, Walmart's study and his Union's study, in which all showed the negative effects of big box retailers. It was his belief that this ordinance would ensure the plans for the new downtown would not be destroyed by big box. Being no further public comments, Mayor Matsumoto closed the public hearing at 6:16 p.m. Councilmember Gupta questioned if the implications of a superstore would be applicable to the large forniat retail. He wanted to know more about the data sources used. Consultants stated they looked at other studies done, such as the Bay Area Economic Forum, as well as Target,Wal► art and Costco,and for the 2013 work,they looked at studies by the International Council of Shopping Centers and the Urban Land Institute.The consultant stated no recent study was done;however, other cities like Fairfield had a similar study which was taken into consideration.The B ay Area Economic Forum has not done any new studies. Councilmember Addiego was wondering if they had envisioned what was to happen to the commercial strip if the cur-rent tenant leaves, Susy Kalkin was hoping Westborough Square momentum would swing it in the positive towards further redevelopment at sites like the Pak N Save because there is potential in those properties,but there was no firm idea set in stone yet. It currently allows for neighborhood commercial development but conversations could go a particular way and things could change. Mayor Matsumoto understood the demand and need for grocery stores in the neighborhood. She asked for further clarification on the definition of a superstore versus large format retail. City Attorney, Steven Mattas stated that a superstore has a grocery component of over 5,000 square feet, but if the store is larger than 80,000 square feet and has less than 5,000 square feet of grocery,it would be classified as a large format retail. The ordinance is not driven by the name, but rather the components. Vice Mayor Garbarino emphasized a major difference when you add the large grocery component,is that trips would be increased by 4-6 times multiplier on the trips of traffic to those stores. These types of traffic jams are what will keep people from coming to the downtown. SPECIAL CITY COUNCIL MEETING APRIL 16,2014 MINUTES PAGE 2 Councilmember Gupta supported the proposed ordinance and asked if the definitions used for categorizing the stores were standard. If they aren't, he asked what logic was followed to put the parameters in place. Planner Rozzi stated zoning definitions or size parameters for different business are based on national standards and obtained through the American Planning Association.They are able to compare cities of a like size and that is where the square footage was drawn from. The goal with this ordinance was to encourage large format retail while protecting existing grocery retailers and keeping them close to residential areas. That was why they have the ban on any grocery supermarket use East of 101. Councilmember Addiego stated a well-run supermarket is a community resource and they should be protected and allowed to thrive. He insisted one big player can change the game. Mayor Matsumoto stated that the largest are not necessarily those that are going to drive our current businesses but the larger stores have greater employment opportunities because of the size. They also give great grant monies to schools,cities,etc.,and were a good source because they were national chains. She didn't want the city to be so limited that they would discourage them. She was happy with the large format retail definition. Her concern was that opportunities would still be there in the ordinance. City Attorney Mattas stated that there were two actions for the Council to consider this evening,adoption of a resolution making findings and certifying the EIR and for the zoning amendment to prohibit superstore uses city wide and prohibit grocery and supermarket uses within the East of 101 areas. Motion: Vice Mayor Garbarino/Second-Councilmember Norniandy:to approve Resolution No.43-2014. Unanimously approved by roll call vote. Motion:Vice Mayor Garbarino/Second-Councilmember Gupta:an ordinance amending the zoning code to prohibit superstore uses city-wide and grocery and supermarket uses in the East of 101 area. Unanimously approved by roll call vote. STUDY SESSION 6. Economic Development Strategy (3rd Session) (Pat O'Keeffe, Economic and Community Development Consultant) a. Economic Development Program Partnerships. b. Disposition of Affordable Housing Cash &Property Assets. Economic and Community Development Consultant Pat O'Keeffe recognized Mike Lappen and Armando Sanchez for the economic development program. He then stated that former Redevelopment Agency activity had been quite robust but since its demise, other, more traditional forms, of redevelopment must be looked at. The three major programs are: (1) Sales and Use Tax Recovery Program (2)Business Visitations and(3)Commercial PACE and Business Incentives. Using other tools such as updating the webpage and utilizing social media would also aid in funding things like the shuttles from East of 101 to downtown. Partnerships involved need to be continued, Public comments were made by Belen Serra, Coordinator of the Coalition for Community Benefits, SPECIAL CITY COUNCIL MEETING APRIL 16,2014 MINUTES PAGE 3 wanted to clarify the timing of the downtown marketing strategy. She asked if only market needs were addressed or if social needs were assessed. They were content with the process but want to be sure efforts are coordinated. She applauded the Skyline collaboration. Consultant O'Keeffe stated the goal was to encourage small businesses that serve both local residents and a regional draw to address a thriving downtown.He thought the new restaurants were encouraging. They would also like to see additional retail. He mentioned that there has not been a lot of focus on trying to bring in offices to downtown on a major scale because the properties didn't lend themselves to that. He added they might help a small business interested in coming to the downtown with finding a location, tech expertise, find financing as well as doing some tenant improvements. Councilmember Gupta supported the efforts of social media to make city information available to community. Councilmember Addiego and Councilmember Garbarino both commented on efforts,finding them to be innovative and refreshing. Councilmember Normandy added they were moving in a great direction and is happy to be part of it. Mayor Matsumoto referred to the bio-tech, stating that they jumped from a budget of$34,000 to$85,500. She stated that,historically,it has been a bust. She wants the$85,000 to bring in other marketing tools on which they can capitalize and use.Its success will happen if the staff makes follow-up calls.She claims to make use of investment and to use it effectively. Consultant O'Keeffe agreed with Mayor Matsumoto and confirmed he and his staff will plan for the bio conference. Mayor Matsumoto mentioned the downtown trolley. She stated that she sat on the Transportation Authority and CCAG and commented that grant opportunities had often fallen through the cracks. She wants to make sure that Council will be able to chime in,stating that she was expecting the Chamber and businesses to step up to the plate. She wanted the shuttle route to encompass routes that would cover the east and downtown. Consultant O'Keeffe agreed, adding that the way to do that was, if they have a discussion with the businesses and the Chamber about a business improvement district, that district's funds will pay for a portion of the cost of a trolley, and then they have that buy in. They will have to do more work on the feasibility of it. There are other competing shuttles, their waiting on the results of this investigation. Mayor Matsumoto and Mr. O'Keeffe continued to discuss the budget of$85,000 for the bio conference. Councilmernber Addiego argued for the amount and felt it would send a message as to how engaged the City was with our major industry. With property taxes being approximately 18%, it deserved our attention. Vice Mayor Garbarino appreciated her concern, agreeing that it was a lot of money,but he didn't think anyone on staff can assure them of anything. It will be up to the staff to make the connections,but it'll be up to the Council to sell the City. It is up to the Council to take the lead, along with working with the staff. Everyone needs to do their part. If they get three solid leads out of the whole thing,they have done wonderfully. SPECIAL CITY COUNCIL MEETING APRIL 1b,2014 MINUTES PAGE 4 Councilmember Gupta commented that it wasn't a one shot, do or die,but a way of doing things. With great effort, they are leading the way of innovation. He mentioned they must look into the long haul approach to the situation rather than just this one event at a time. Councilmember Normandy requested further information on the follow-up to be done after the conference. Consultant O'Keeffe stated that they were going to be putting together a series of interviews with firms that will be attending the conference. During the conference,they will be meeting with various firms that may have an interest in South San Francisco, provide additional information to them for them to get to know the leaders of the community since much of the Council will be there. He stated that they will follow up with those whom they met as well as all the attendees that they think might have some potential interest in South San Francisco. They have to keep their name out there in front of people. Moving onto housing, Consultant O'Keeffe stated that there were three parts to their housing assets; property they own,outstanding loans and cash. Staff was interested in getting direction from Council on the disposition of some of the properties currently owned. As landlords,they were managing them with a considerable amount of staff time for only 17 units, and he felt it could be better spent in other activities. They would like to review seven properties which have and added value of up to about$4.8 million. A relocation issue was acknowledged, Options for a triplex and two duplexes were discussed,with the idea of leasing some of the properties to non-profit agencies being shared. Staff stated they would come back with more information on potential agencies. TransForm Community Planner,Clarrissa Cabansagan applauded Council on the discussion and thought they were moving in the right direction. She urged Council to address the deficiencies in housing stock and ensure that the opportunities for affordable housing assets are fully realized and put to good use. 7. A Resolution authorizing a joint application by the City of South San Francisco and the Peninsula Corridor Joint Powers Board for Tiger VI grant funding of the South San Francisco Caltrain Station Access and Improvements Project. (Brian McMinn, Public Works Director). Brian McMinn, Director of Public Works, presented a grant opportunity that the staffs of South San Francisco and Peninsula Corridor Joint Powers Board ("JPB") have been working on. He stated that Mark Stiman and Betty Arellano of JPB were also present. They have been working to meet a deadline of April 28 for the grant application. The scope and history of the project were reviewed and Council's authorization of the application was being sought. Council posed questions regarding the focus of the application, specifically citing the safety issues and the community's poverty rate of 28 percent. Also questioned was the range of financial commitment required from the City for the remainder of the costs and if the City would need to pledge a certain amount of funds in order to make the application. Director McMinn responded by stating the holdout rule and the safety issue were addressed in the benefit cost calculation as well as discussed in the narrative. They were also playing up the community concern, priority development area, downtown plan and high density transit oriented development and tying it to SPECIAL CITY COUNCIL MEETING APRIL 16,2014 MINUTES PAGE 5 the cost benefit analysis. Regarding the range of financial commitment, stated that was up to Council, noting that the City had already invested over$3 million in the properties,rernediation and design,and an estimated $1.7 million for plaza improvements. Director McMinn believed pledging funds might strengthen the application but was uncertain of Council's comfort level. Should grants be approved, construction could begin as early as the end of 2016 or beginning of 2017. The money commitment question could come up. Mayor Matsumoto thought it would be hard for the city to commit any funding at this point. Mark Simon, Executive Officer of Public Affairs for Caltrains and SamTrans, emphasized the commitment is not the same as an allocation. Without some indication that the City was behind this and prepared to seek additional funding, it does not compete as well. Various methods to access additional money were discussed, namely avenues through the Transportation Authority and Metropolitan Transportation Commission. Director McMinn explained the Resolution included with the staff report authorized staff to submit the application with the JPB. Council voiced support for the application. Motion—Vice Mayor Garbarino/Second—Councilmember Normandy, to approve Resolution No. 44- 2014. Unanimously approved by roll call vote. 8. Adjournment. Being no further business, Mayor Matsumoto adjourned the meeting at 8:01 p.m. Submitted by: ;App&red,,bjL, .Anna M. Brown, Deputy City Clerk- 1K sumoto, Mayor City of South San Francisco City of South San Francisco SPECIAL CITY COUNCIL MEETING APRIL 16,2014 MINUTES PAGE