HomeMy WebLinkAbout2016-08-10 e-packet@6:30Wednesday, August 10, 2016
6:30 PM
City of South San Francisco
P.O. Box 711 (City Hall, 400 Grand Avenue)
South San Francisco, CA
Municipal Services Building, Council Chambers
33 Arroyo Drive, South San Francisco, CA
Special Joint Meeting of the Joint Housing Standing
Committee of the City Council and the Planning
Commission and the Successor Agency
Special Meeting Agenda
August 10, 2016Special Joint Meeting of the Joint
Housing Standing Committee of
the City Council and the Planning
Commission and the Successor
Agency
Special Meeting Agenda
NOTICE IS HEREBY GIVEN, pursuant to Section 54956 of the Government Code of the State of
California, that the Special Joint Meeting of the Joint Housing Standing Committee of the City Council
and the Planning Commission and the Successor Agency will hold a Special Joint Meeting on
Wednesday, August 10, 2016, at 6:30 p.m., in the Municipal Services Building, Council Chambers, 33
Arroyo Drive, South San Francisco, California.
Purpose of the meeting:
Call To Order.
Roll Call.
Agenda Review.
Public Comments - comments are limited to items on the Special Joint Meeting Agenda.
Matters for Consideration.
Successor Agency Only:
Staff Report: Interviews and discussion of shortlisted developers for property located
at 200 Linden Avenue and 212-216 Baden Avenue. (Ron Gerber, Housing Manager)
1.
Closed Session.
Closed Session: Conference with Real Property Negotiators
(Pursuant to Government Code Section 54956.8)
Properties: 200 Linden Avenue, 212 and 216 Baden Avenue
Negotiating Parties: South San Francisco Successor Agency/City of South San
Francisco and BayRock Multifamily LLC, RAHM Investments and Omni Investment
Group
Under Negotiation: Review Price and Terms (Ron Gerber, Housing Manager)
2.
Adjournment.
Page 2 City of South San Francisco Printed on 10/14/2016
City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:16-403,Version:1
Interviews and discussion of shortlisted developers for property located at 200 Linden Avenue and 212-216
Baden Avenue. (Ron Gerber, Housing Manager)
RECOMMENDATION
It is recommended that the Successor Agency interview the developers and in closed session review Price
and Terms and the Total Development Cost (TDC).It is recommended that the Successor Agency make
a preferred developer and an alternate developer recommendation for the Oversight Board’s
consideration.
Purpose of this report is to present to the Successor Agency the recommendations of the Joint Housing
Subcommittee regarding the selection of a developer for the development of the 200 Linden Avenue and 212-
216 Baden Avenue (“200 Linden”) sites.
BACKGROUND AND DISCUSSION
The City of South San Francisco’s Long Range Property Management Plan (LRPMP)outlines permissible uses
for the various former Redevelopment Agency’s properties.The LRPMP recommended that the properties
located at 200 Linden be assembled with the intent of developer acquisition and development.This 0.72-acre
property has a prominent,central location in the downtown,with convenient access to US-101,bus routes,the
Caltrain station, and has significant development potential. Attachment 1 shows an aerial photo of the site.
On December 4,2015,staff issued a Request for Qualifications (RFQ)for the disposition of the properties.
Submittals were due February 3,2016;and the City received responses from seven developers.Staff asked the
seven developers to submit a confidential Price and Terms offer, to supplement their RFQ response.
On April 11,2016,the Joint Housing Subcommittee met for two hours to review the seven developer
submittals.In an RFQ process,the primary emphasis is on reviewing experience,price and financial capacity;
with the expectation that once a developer is selected then a specific development concept can be refined
during the Exclusive Negotiation phase.In addition,however,the Subcommittee did take note of the various
development concepts being proposed (from residential to hotel)as well as the envisioned building height,
commercial space, and other considerations.
Upon reviewing the Price and Terms in closed session,the Subcommittee recommended to the Successor
Agency that four of the seven developers -BayRock,Proferian,RAHM,and OMNI Investments -be
shortlisted for further consideration.On May 11,the Successor Agency approved this shortlist,and on May 17
the Oversight Board concurred with the Successor Agency’s shortlist recommendation.
The four shortlisted developers were requested to provide a “Best and Final”price offer as well as their TDC
for consideration.At this point,one of the shortlisted developers,Proferian,respectfully withdrew their
application.Proferian cited that they formed a conviction that the construction costs and ensuing pricing
environment, even with non-union labor, were too great a hurdle to overcome to reach success.
The next phase in the process involved interviewing the shortlisted developers in order to further understand
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The next phase in the process involved interviewing the shortlisted developers in order to further understand
their experience and development concept.On June 23,2016,the Subcommittee interviewed the three
remaining developers,then met in closed session to review Price and Terms as well as the TDC.This
Subcommittee meeting was inconclusive with the Subcommittee requesting additional confidential information
from two of the three developers.Staff made the necessary requests that the Subcommittee convened again on
July 25, 2016, to review the developers’ responses.
DEVELOPER PROPOSALS
As this project has progressed,developers have revised the scale and scope of their concept.The final
proposals, as of July 21, 2016, are outlined below.
While a preferred developer was not selected,the Subcommittee did reach a consensus that RAHM Investments
and Omni Investments be recommended to the Successor Agency to the former Redevelopment Agency
(“Successor Agency”) for interview and consideration.
RAHM INVESTMENTS
The development concept proposes a hotel on the site.The developer proposes 175 hotel rooms with 87 rooms
of limited services and 88 rooms of extended stay.The developer anticipates the Marriot or Hilton to commit to
the development.
OMNI INVESTMENTS
Omni proposes 87 condominium units with some ground floor commercial.The proposal includes a unit mix of
one to three bedrooms with 20 percent of the units offering Below Market Rate (BMR)opportunities.Initial
parking calculations include 102 stalls at podium grade. A parking relaxation will likely be necessary.
Attachment 2 provides a more comprehensive outline of all four of the initially shortlisted developer responses.
SCHEDULE OF INTERVIEWS
The Successor Agency will interview the two Subcommittee recommended developers in this open session and
following will be the closed session review for Price and Terms and TDC.At its discretion the Successor
Agency will make a preferred developer recommendation to the Oversight Board.The developer not selected as
the preferred will remain as an alternate developer.The purpose of selecting an alternate developer is that in the
event the preferred developer is unable to successfully meet the milestones as outlined in the Exclusive
Negotiating Rights Agreement (ENRA) within 60-90 days, the City may revert to the alternate developer.
The final selection of the preferred and alternate developers will additionally require the Oversight Board’s
consideration and approval.With the Oversight Board’s approval,an ENRA may be negotiated with the
preferred developer.
The Successor Agency is reminded that Price and Terms and TDC should not be discussed in open session.
Review of the above will take place in closed session only. The developers have been advised accordingly.
Each interview will last approximately 20 minutes and will comprise of a 10 minute presentation by the
developers and allow for 10 minutes of questions and answers. Developers have been requested to discuss their:
·Development concept and team.
·Demonstrated ability to complete a project of similar size and scope.
·Related team experience.
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·Community outreach approach.
·Green and environmental strategies.
·Funding resources as well as other deal points as requested by the Subcommittee.
The interview schedule is as follows:
1.OMNI Investments
2.RAHM Hotels
The interviews will allow the Successor Agency to gauge each team’s probability of performance,based on
their team experience with projects similar in size and scope and completed projects.
CONCLUSION
It is recommended that the Successor Agency interview the developers and in closed session review Price and
Terms and the TDC.It is recommended that the Successor Agency make a preferred developer and an alternate
developer recommendation for the Oversight Board’s consideration.
Attachments:
1.200 Linden Site Aerial Photo
2.Shortlisted Developer Matrix
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Attachment 2
South San Francisco - 200 Linden Development Site
Developer Term Sheet Comparison Matrix
Evaluation Criteria OMNI/Qingdao Hisense
Real Estate Co.RAHM Investments BayRock Multifamily Proferian
1.)condos hotel luxury rental housing boutique hotel
2.)87 175 1 ±80 152
3.)not specified 116,028 2 not specified 1 not specified
4.)65'70' / 6 floors 65'7 floors
5.) Ground Floor retail free breakfast / indoor pool / bike rentals /
shuttle / business center / 200 person
meeting area / kichenettes
indiv storage units/ outdoor plaza/ pet
wash/ fitness rooms / meeting room & exec
dining
10% massing to be ground floor commercial
6.)102 spaces 115-125 spaces 3 Code Compliant 90 spaces
20 years experience and completed more
than 70 residential projects and upscale
retail developments in China.
Family owned and operated hotel businesses
for over 26 years; 606 hotel rooms; currently
entitling 5-story, 100 room Marriott Hotel in
Alameda.
Highly experienced developer with 15 years
experience in in-fill communities. Recent
activities include: over 200 new homes in the
Bay Area.
Partner (the Richmond Group) is the 7th
largest apartment owner in the nation.
local company & experienced local business
group.
Have not completed a project as a team in
the USA.
Newly formed development team which
includes local financial services business,
System Designers Group.
Few sites in the downtown have the
opportunity to attract limited service hotel
development.
1.) Average unit size of 950sq.ft & 6,000 retail
noted. No figures specified for parking and
open space provided.
Development team withdrew their
application.
1.) Includes 87 rooms of limited services and
88 rooms of extended stay.
2.) Noted 65,000 building footprint and 2,000
meeting room space.
3.) As noted in their original proposal.
Use(s)
Units
Comments
Developer Qualifications
Experience
Square Feet
Height/Floors
Unique/Special Amenities
Parking
8/10/2016
City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:16-404,Version:1
Closed Session: Conference with Real Property Negotiators
(Pursuant to Government Code Section 54956.8)
Properties: 200 Linden Avenue, 212 and 216 Baden Avenue
Negotiating Parties:South San Francisco Successor Agency/City of South San Francisco and BayRock
Multifamily LLC, RAHM Investments and Omni Investment Group
Under Negotiation: Review Price and Terms (Ron Gerber, Housing Manager)
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