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.
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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,
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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.
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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
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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
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