HomeMy WebLinkAbout2017-02-06 e-packet@3:00Monday, February 6, 2017
3:00 PM
City of South San Francisco
P.O. Box 711 (City Hall, 400 Grand Avenue)
South San Francisco, CA
City Hall, City Manager's Conference Room
400 Grand Avenue, South San Francisco, CA
Housing Standing Committee of the City Council and
Planning Commission
Special Meeting Agenda
February 6, 2017Housing Standing Committee of
the City Council and Planning
Commission
Special Meeting Agenda
NOTICE IS HEREBY GIVEN, pursuant to Section 54956 of the Government Code of the State of
California, the City Council and the Planning Commission Housing Standing Committee of the City of
South San Francisco will hold a Special Meeting on Monday, February 6, 2017, at 3:00 p.m., at City
Hall, City Manager's Conference Room, 400 Grand Avenue, South San Francisco, California.
Purpose of the meeting:
Call To Order.
Roll Call.
Public Comments.
MATTERS FOR CONSIDERATION
Motion to approve the minutes for the meeting of January 4, 2017.1.
Housing Standing Committee Study Session regarding proposed amendments to the
Development Agreement for the Centennial Village project at 180 El Camino Real
Avenue. (Billy Gross, Senior Planner)
2.
Report seeking review and direction from the Housing Subcommittee regarding the
Accessory Dwelling Unit Legislation/Land Use Update (Rozalynne Thompson,
Associate Planner)
3.
Adjournment.
Page 2 City of South San Francisco Printed on 2/14/2017
City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:17-205 Agenda Date:2/6/2017
Version:1 Item #:1.
Motion to approve the minutes for the meeting of January 4, 2017.
City of South San Francisco Printed on 2/2/2017Page 1 of 1
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City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:16-1013 Agenda Date:2/6/2017
Version:1 Item #:2.
Housing Standing Committee Study Session regarding proposed amendments to the Development Agreement
for the Centennial Village project at 180 El Camino Real Avenue.(Billy Gross, Senior Planner)
RECOMMENDATION
It is recommended that the Housing Standing Committee receive this staff report and provide input
regarding the proposed amendments to the Development Agreement for the Centennial Village project
at 180 El Camino Real Avenue.
BACKGROUND/DISCUSSION
On March 12,2014,the City Council approved a Development Agreement and related planning approvals to
allow the construction of a mixed-use project including approximately 222,000 square feet (SF)of commercial
space,up to 284 residential units,a parking structure and surface parking,and other on-and off-site
improvements (Project) to replace the existing commercial shopping center at 180 El Camino Real.
On August 26,2015,the Council approved an Amendment to the Development Agreement,which allowed:(a)
minor design changes;and (b)extension of the deadline to start Phase 1 construction to June 26,2016 (i.e.,27
months after the effective date of the Development Agreement).
On June 1,2016,the Council approved a Second Amendment to the Development Agreement,which further
extended the deadline for Phase 1 construction to November 26,2016.The Developer did not start
construction within the stipulated timeframe,and therefore City staff sent a “Failure to Perform”letter to the
applicant on December 14,2016,giving the applicant 30 days to cure the failure.The failure to commence
construction by November 26,2016 also triggered a requirement for the Developer to make a $50,000 payment
to the City, which the Developer has paid.
Third Amendment to the Development Agreement (“Third Amendment”)
Prior to the approval of the Second Amendment,the City had tentatively completed review of the submitted
building permit plans,and therefore the Developer was able to obtain construction cost bidding for the Project.
The Developer has submitted a letter stating that due to ongoing project cost increases,the Project as currently
approved through the Development Agreement cannot be constructed at this time.Because of this,the
Developer is requesting the following amendments to the Development Agreement:
·Remove the requirement for the developer to pay prevailing wage for the residential portion of the
construction work.
o Third Amendment Exhibit A -“Applicability of Prevailing Wage Requirements”graphically
depicts the areas that would and would not be subject to prevailing wage requirements.
o The total building square footage that would be subject to prevailing wage requirements is
approximately 149,000 SF in Phase 1 and 54,000 SF in future phases.All site work and street
improvements would also be subject to prevailing wage requirements.
o The total building square footage that would not be subject to prevailing wage requirements is
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File #:16-1013 Agenda Date:2/6/2017
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approximately 394,000 SF in Phase 1 and 250,000 SF in future phases.
·Revise the commencement date of Phase 1 construction to be within 12 months after the effective date
of the Third Amendment (i.e., approximately February 2018).
o The applicant has included earlier milestone dates for other preliminary work,including
demolition of the existing shopping center by no later than 30 days after the effective date.
·Revise Phase 1 construction to only include Safeway/Major 2,150 residential units above Safeway,
Buildings A-D,and necessary levels of parking garage.Instead of being built as part of Phase 1,the
Health Club building and Major Tenant 3 building would be constructed as part of Phase 2 and must be
within three years of the issuance of a certificate of occupancy for Phase 1.Building E and the
remaining 134 residential units above would continue to be considered part of Phase 2,but would not
have a guaranteed construction date.
·Remove the second floor office space over the retail areas of Buildings A, B, C and D.
·Developer to contribute a sum of $300,000 for beautification projects within three months of the
effective date of the Third Amendment.
Analysis
A.Financial Feasibility
The Developer’s request is based on their assertion that construction costs have escalated to a point where
the prevailing wage commitments they made in 2014 are no longer financially feasible.In order to evaluate
the developer’s request,staff retained two consultants.First,Swinerton Management &Consulting
analyzed the Developer’s construction bids.Second,Economic &Planning Systems (EPS)analyzed the
financial feasibility of the Project, with and without prevailing wage.
In brief,EPS has concluded that,as currently proposed and agreed to,the Project faces significant financial
feasibility challenges that could be lessened by removing the prevailing wage requirement for the
residential portion of the Project.EPS further indicated that the Developer’s estimated costs reflect that
similar financial feasibility challenges are applicable to the retail portion as well.Representatives of both
Swinterton and EPS will be present at the February 6th Housing Committee meeting,in order to answer
questions. (Note: The costs of both of these consultant studies are being reimbursed by the Developer.)
B.Design Considerations
The basic elements of the Project design are substantially similar to the original approvals.Only the second
floor office space (approximately 35,000 SF in Buildings A-D)would be removed,which would reduce the
overall parking requirement.If the remainder of the project is constructed as approved,the removal of this
office area will not significantly impact the overall project.
The other primary revision to the physical project is related to the overall phasing.Following is a
comparison of the phasing requirements in the approved Development Agreement versus the proposed
Third Amendment to the Development Agreement:
Current Development Agreement Requirements
Phase 1 Phase 2 - no req’d construction date
- Safeway/Major 2 (~ 82,000sf) - Major Tenant 3 (~18,700sf - 2 stories)
- 150 residential units above Safeway - Building E
- Health Club building (~36,000sf) - Up to 134 residential units above Bldg E
- Buildings A, B, C and D (~59,000sf - 2 stories) - All remaining parking levels
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File #:16-1013 Agenda Date:2/6/2017
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- Necessary levels of parking structure
Proposed Development Agreement Requirements
Phase 1 Phase 2 - w/in 3 yrs of CofO of Phase 1
- Safeway/Major 2 (~82,000sf) - Health Club building (~36,000sf)
- 150 residential units above Safeway - Major Tenant 3 (~12,900sf - 1 story)
- Buildings A, B, C and D (29,500sf - 1 story) - Necessary additional parking levels
- Necessary levels of parking structure
Phase 2 - no required construction date
-Building E
-Up to 134 residential units above Bldg E
-All remaining parking levels
CONCLUSION
Staff requests that the Housing Subcommittee provide input regarding the proposed amendments to the
Development Agreement for the Centennial Village project at 180 El Camino Real.
ATTACHMENTS
1.Original Development Agreement
2.First Administrative Amendment to the Development Agreement
3.Second Administrative Amendment to the Development Agreement
4.Failure to Perform letter dated December 14, 2016
5.Proposed Third Administrative Amendment to the Development Agreement
6.Third Amendment Exhibit A - Applicability of Prevailing Wage Requirements
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ADMINISTRATIVE AGREEMENT AMENDMENT TO DEVELOPMENT
AGREEMENT
This Administrative Agreement Amendment to the Development Agreement
(“Administrative Agreement Amendment”) is entered into by and between EL CAMINO AND
SPRUCE LLC (“Developer”) and the CITY OF SOUTH SAN FRANCISCO, a municipal
corporation (“City”) on this 26th day of August, 2015.
RECITALS
A. On March 26, 2014, the City Council adopted Ordinance No. 1485-2014 (“Ordinance”)
concerning a Development Agreement between City and Developer (“Development Agreement”).
The executed Development Agreement was recorded on April 16, 2015 (Doc. 2015-032685).
B. On August 26, 2015, the City Council held a public hearing on the proposed Administrative
Agreement Amendment to the Development Agreement and adopted Resolution No. 109-2015.
NOW, THEREFORE, in consideration of the mutual covenants and promises of the parties
herein contained, the City and Developer agree as follows:
AMENDMENT TO AGREEMENT
1. Recitals. The foregoing recitals are true and correct and hereby incorporated herein.
2. Defined Terms. All capitalized terms not defined herein shall have the meanings ascribed
to them in the Development Agreement.
3. Section 6.03. Section 6.03 of the Development Agreement is hereby amended to read as
follows, with additions underlined and deletions in strikethrough text:
Section 6.03. Applicable Law. The rules, regulations, official policies, standards and
specifications applicable to the Project (the “Applicable Law”) shall be those set forth
in this Agreement, the Administrative Agreement Amendment and the Project
Approvals and Subsequent Approvals, and with respect to matters not addressed by this
Agreement as amended or the Project Approvals or Subsequent Approvals, those rules,
regulations, official policies, standards and specifications (including City ordinances and
resolutions) governing permitted uses, building locations, timing of construction,
densities, design, heights, fees, exactions, and taxes in force and effect on the Effective
Dates of this Agreement.
4. Section 6.13(a)(i). Section 6.13(a)(i) of the Development Agreement is hereby amended to
read as follows, with additions underlined and deletions in strikethrough text:
Section 6.13(a)(i). Phase 1 construction will begin within 1827 months after final
approval by the City of all discretionary approvals of the overall plan, and the passage
of all applicable statutes of limitations without legal challenge and will include:
All commercial buildings except Building E.
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All subterranean parking under the main surface parking lot Safeway/Major 2.
Phase 1 Parking GarageSecond floor parking above Safeway/Major 2.
A minimum of 150 apartment units above Safeway/Major 2.
All current site improvements and design features.
No change to building architecture as approved by the City Council per
DR11-0019.
Structural/foundation enhancements for Health Club building sufficient to
support approved residential construction and associated parking above.
The second story of Buildings C and/or D may consist of exterior walls and
roof only, as shown on the plans approved concurrently herewith.
Developer must apply for the building permit for the Phase 1 Safeway/Major
2 commercial building, not including CVS concurrently with the building
permit for the 150 Phase 1 residential units; the Safeway/Major 2 commercial
building not including CVS and 150 unit residential building permits will only
be issued concurrently.
The City shall not be obligated to issue any certificate of occupancy for the
Phase 1 Safeway/Major 2 commercial building until construction of Phase 1
residential units, defined as vertical wall framing of the residential units, has
commenced.
5. Effect of this Administrative Agreement Amendment. Except as expressly modified by
this Administrative Agreement Amendment, the Development Agreement shall continue in
full force and effect according to its terms, and Developer and City hereby ratify and affirm
all their respective rights and obligations under the Development Agreement, including but
not limited to Developer’s indemnification obligations as set forth in Section 10.10 of the
Development Agreement. In the event of any conflict between this Administrative
Agreement Amendment and the Development Agreement, the provisions of this
Administrative Agreement Amendment shall govern.
6. Binding Agreement. This Administrative Agreement Amendment shall be binding upon
and inure to the benefit of the heirs, administrators, executors, successors in interest, and
assigns of each of the parties hereto. Any reference in this Administrative Agreement
Amendment to a specifically named party shall be deemed to apply to any successor,
administrator, executor, or assign of such party who has acquired an interest in compliance
with the terms of this Administrative Agreement Amendment or under law.
7. Recordation: The City shall record a copy of this Administrative Agreement Amendment
within ten (10) days following execution by all parties.
8. Counterparts. This Administrative Agreement Amendment may be executed in multiple
counterparts, each of which shall be deemed an original, but all of which, when taken
together, shall constitute the same document.
9. California Law. This Administrative Agreement Amendment shall be governed by and
interpreted in accordance with the laws of the State of California.
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10. Invalidity. Any provision of this Administrative Agreement Amendment that is
determined by a court of competent jurisdiction to be invalid or unenforceable shall be
deemed severed from this Administrative Agreement Amendment, and the remaining
provisions shall remain in full force and effect as if the invalid or unenforceable provision
had not been a part hereof
11. Headings. The headings used in this Administrative Agreement Amendment are for
convenience only and shall be disregarded in interpreting the substantive provisions of this
Administrative Agreement Amendment.
IN WITNESS WHEREOF, this Administrative Agreement Amendment has been entered into by
and between Developer and City as of the date and year first above written.
EL CAMINO AND SPRUCE LLC CITY OF SOUTH SAN
FRANCISCO
By: _____________________ By: ___________________
Name: __________________
Title: ____________________
Date: ___________________ Date: _________________
APPROVED AS TO FORM:
By: ___________________
Steven T. Mattas
City Attorney
ATTEST:
By: ____________________
Krista J. Martinelli, City Clerk
2351489.1
SECOND ADMINISTRATIVE AGREEMENT AMENDMENT
TO DEVELOPMENT AGREEMENT
This Second Administrative Agreement Amendment to the Development Agreement
(“Second Administrative Agreement Amendment”) is entered into by and between EL CAMINO
AND SPRUCE LLC (“Developer”) and the CITY OF SOUTH SAN FRANCISCO, a municipal
corporation (“City”) on this _____ day of June, 2016.
RECITALS
A. On March 26, 2014, the City Council adopted Ordinance No. 1485-2014 (“Ordinance”)
concerning a Development Agreement between City and Developer (“Development Agreement”).
The executed Development Agreement was recorded on April 16, 2015 (Doc. 2015-032685).
B. On August 26, 2015, the City Council adopted Resolution No. 109-2015 (“Resolution”)
concerning an Administrative Agreement Amendment to Development Agreement between City
and Developer (“First Administrative Agreement Amendment”).
C. On June 1, 2016 the City Council considered the proposed Second Administrative
Agreement Amendment to the Development Agreement and adopted Resolution No. 64-2016
approving the Administrative Amendment.
NOW, THEREFORE, in consideration of the mutual covenants and promises of the parties
herein contained, the City and Developer agree as follows:
AMENDMENT TO AGREEMENT
1. Recitals. The foregoing recitals are true and correct and hereby incorporated herein.
2. Defined Terms. All capitalized terms not defined herein shall have the meanings ascribed
to them in the Development Agreement.
3. Section 6.13(a)(i). Section 6.13(a)(i) of the Development Agreement is hereby amended to
read as follows, with additions underlined and deletions in strikethrough text:
Section 6.13(a)(i). Phase 1 construction will begin within 2732 months after final
approval by the City of all discretionary approvals of the overall plan, and the passage
of all applicable statutes of limitations without legal challenge and will include:
Demolition of Firestone Building is scheduled to begin by May 25, 2016.
Pre-demolition Asbestos Removal is scheduled to begin by August 15, 2016.
Existing Shopping Center Building Demolition is scheduled to begin by
September 15, 2016.
City Sewer Main is scheduled to begin by September 26, 2016.
All commercial buildings except Building E.
All subterranean parking under the main surface parking lot.
Phase 1 Parking Garage.
A minimum of 150 apartment units above Safeway/Major 2.
All current site improvements and design features.
No change to building architecture as approved by the City Council per
DR11-0019.
The second story of Buildings C and/or D may consist of exterior walls and
roof only, as shown on the plans approved concurrently herewith.
Developer must apply for the building permit for the Phase 1 Safeway/Major
2 commercial building, not including CVS concurrently with the building
permit for the 150 Phase 1 residential units; the Safeway/Major 2 commercial
building not including CVS and 150 unit residential building permits will only
be issued concurrently.
The City shall not be obligated to issue any certificate of occupancy for the
Phase 1 Safeway/Major 2 commercial building until construction of Phase 1
residential units, defined as vertical wall framing of the residential units, has
commenced.
If Developer fails to begin Phase 1 construction within 32 months after final
approval by the City, Developer shall make a payment to the City of fifty
thousand dollars ($50,000). This payment obligation is in addition to any other
remedies available to the City under Article 10 of this Agreement.
4. Effect of this Second Administrative Agreement Amendment. Except as expressly
modified by this Second Administrative Agreement Amendment, the Development
Agreement shall continue in full force and effect according to its terms, and Developer and
City hereby ratify and affirm all their respective rights and obligations under the
Development Agreement, including but not limited to Developer’s indemnification
obligations as set forth in Section 10.10 of the Development Agreement. In the event of
any conflict between this Second Administrative Agreement Amendment and the First
Administrative Agreement Amendment or the Development Agreement, the provisions of
this Second Administrative Agreement Amendment shall govern.
5. Binding Agreement. This Second Administrative Agreement Amendment shall be
binding upon and inure to the benefit of the heirs, administrators, executors, successors in
interest, and assigns of each of the parties hereto. Any reference in this Second
Administrative Agreement Amendment to a specifically named party shall be deemed to
apply to any successor, administrator, executor, or assign of such party who has acquired an
interest in compliance with the terms of this Second Administrative Agreement
Amendment or under law.
6. Recordation: The City shall record a copy of this Second Administrative Agreement
Amendment within ten (10) days following execution by all parties.
7. Counterparts. This Second Administrative Agreement Amendment may be executed in
multiple counterparts, each of which shall be deemed an original, but all of which, when
taken together, shall constitute the same document.
8. California Law. This Second Administrative Agreement Amendment shall be governed by
and interpreted in accordance with the laws of the State of California.
9. Invalidity. Any provision of this Second Administrative Agreement Amendment that is
determined by a court of competent jurisdiction to be invalid or unenforceable shall be
deemed severed from this Second Administrative Agreement Amendment, and the
remaining provisions shall remain in full force and effect as if the invalid or unenforceable
provision had not been a part hereof
10. Headings. The headings used in this Second Administrative Agreement Amendment are
for convenience only and shall be disregarded in interpreting the substantive provisions of
this Second Administrative Agreement Amendment.
IN WITNESS WHEREOF, this Second Administrative Agreement Amendment has been entered
into by and between Developer and City as of the date and year first above written.
EL CAMINO AND SPRUCE LLC CITY OF SOUTH SAN
FRANCISCO
By: _____________________ By: ___________________
Name: __________________
Title: ____________________
Date: ___________________ Date: _________________
APPROVED AS TO FORM:
By: ___________________
Jason Rosenberg,
City Attorney
ATTEST:
By: ____________________
Krista J. Martinelli, City Clerk
2652723.3
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THIRD AMENDMENT
TO DEVELOPMENT AGREEMENT
This Third Amendment to Development Agreement (“Third Amendment”) is entered into
by and between EL CAMINO AND SPRUCE LLC (“Developer”) and the CITY OF SOUTH
SAN FRANCISCO, a municipal corporation (“City”) on this _____ day of _________________,
2017.
RECITALS
A. On March 26, 2014, the City Council adopted Ordinance No. 1485-2014
(“Ordinance”) authorizing a Development Agreement between City and Developer
(“Development Agreement”). The executed Development Agreement was recorded on April 16,
2015 (Doc. 2015-032685).
B. On August 26, 2015, the City Council adopted Resolution No. 109-2015 concerning
an Administrative Agreement Amendment to Development Agreement between City and
Developer (“First Administrative Agreement Amendment”).
C. On June 1, 2016, at a joint special meeting of the City Council and the Successor
Agency, the City Council and Successor Agency adopted Resolution No. 64-2016 (“Resolution”)
concerning a Second Administrative Agreement Amendment to Development Agreement
between City and Developer (“Second Administrative Agreement Amendment”).
D. On ______, the City Council considered the proposed Third Amendment to the
Development Agreement and adopted Ordinance No. ______ approving the Amendment.
NOW, THEREFORE, in consideration of the mutual covenants and promises of the parties
herein contained, the City and Developer agree as follows:
AMENDMENT TO AGREEMENT
1. Recitals. The foregoing recitals are true and correct and hereby incorporated herein.
2. Defined Terms. All capitalized terms not defined herein shall have the meanings
ascribed to them in the Development Agreement, as amended.
3. Section 6.10. The first paragraph of Section 6.10 of the Development Agreement is
hereby revised to read as follows: (Paragraphs two and three of Section 6.10 of the
original Development Agreement are not amended and remain in full force and effect.)
Section 6.10. Prevailing Wage. Developer shall pay, or cause to be paid, prevailing
wages, for all construction work permitted to occur at the Project Site under this
Agreement, including all demolition, excavation and construction but not including any
tenant improvement work or construction work directly related to the construction of
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the residential units, as more specifically stated below. At a minimum, the following
components of the Project will comply with prevailing wages:
Safeway #2740 Tenant Improvements, prepared by Johnson Lyman Architects
(Building Permit No. B16-0140)
Buildings A-D Shell Construction, prepared by Johnson Lyman Architects
(Building Permit No. B15-2030)
Ross Store #1858, prepared by Johnson Lyman Architects (Building Permit No.
B15-2221)
Site Work for 180 El Camino Real, prepared by Johnson Lyman Architects
(Building Permit No. B15-2027)
El Camino Real and South Spruce Avenue Right-of-Way Improvements
Major 3 and Health Club Buildings (future phase)
Utility Services related to Commercial Uses
The following components of the Project will not be subject to prevailing wages:
Apartment Parking Structure shown on the drawings prepared by Humpheys
Architects (Building Permit No. B15-1988)
Centennial Village Apartment Units and Safeway Shell, prepared by Humpheys
Architects (Building Permit No. B15-2168)
Phase 2 Apartment Units, Parking Structure and Building E shell (future phase)
Utility Services related to Residential Uses
Exhibit A – “Applicability of Prevailing Wage Requirements” graphically depicts the
portions of the Project that are and are not subject to the payment of prevailing wage.
For those portions of the Project that are subject to prevailing wage as set forth in this
Section 6.10, prior to issuance of a final building permit, Developer shall provide the
City with copies of certified payroll demonstrating that prevailing wage has been paid
in accordance with the requirements of this Section 6.10.
For the purposes of this Agreement, “prevailing wages” means not less than the general
prevailing rate of per diem wages, as defined in Section 1770, et seq. of the California Labor
Code and Subchapter 3 of Chapter 8, Division 1, Title 8 of the California Code of Regulations
(Section 16000 et seq.), and as established by the Director of the California Department of
Industrial Relations (“DIR”). In any case where the general prevailing rate of per diem wages
shall be paid, such rate shall be adjusted annually in accordance with the established rate in
effect as of such date.
4. Section 6.13(a). Section 6.13(a) of the Development Agreement is hereby deleted in its
entirety and replaced to read as follows:
(i) Phase 1 construction shall begin within 12 months after the Effective Date of this
Third Amendment and shall also include:
Pre-demolition asbestos removal which shall begin by no later than
February 13, 2017.
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Existing shopping center building demolition shall begin by no later than
30 days after the Effective Date of this Third Amendment.
Foundations for any one or more building(s).
Grading of the site shall commence by no later than ten (10) months after
the Effective Date of this Third Amendment.
All commercial buildings except Major Tenant 3, Health Club building,
and Building E.
A minimum of 150 apartment units above Safeway.
All current site improvements and design features.
Buildings A, B, C, and D may consist of exterior walls to a minimum 25
feet vertical where facing public streets, but are not required to have
usable space above the ground floor.
Developer must apply for the building permit for the Phase 1
Safeway/Major 2 commercial building, not including Major Tenant 3,
concurrently with the building permit for the 150 Phase 1 residential units.
The Safeway/Major 2 commercial building not including Major Tenant 3
and 150-unit residential building permits will only be issued concurrently.
The City shall not be obligated to issue any certificate of occupancy for
the Phase 1 Safeway/Major 2 commercial building until construction of
Phase 1 residential units, defined as vertical wall framing of the residential
units, has commenced.
Within three (3) months after the Effective Date of this Third Amendment,
Developer shall contribute the sum of $300,000.00 to the City for
beautification projects. Developer is to make this payment within three
months as a material incentive to the City’s agreement to amend certain
terms and conditions of the Development Agreement as provided herein,
regardless of whether the Project proceeds or not.
Phase 1 Parking Garage.
No change to building architecture as approved by the City Council per
DR11-0019.
(ii) Phase 2 will include:
Major Tenant 3 and Health Club building, construction of which shall be
complete within 36 months of issuance of a Certificate of Occupancy for
Phase 1.
Major Tenant 3 and Health Club building may consist of exterior walls to
a minimum 25 feet vertical where facing public streets, but are not
required to have usable space above the ground floor.
Building E.
Remainder of up to 284 total apartment units above Building E/Major 2.
All parking level structures.
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(iii) For the purposes of this subsection (a), construction shall be deemed to have
begun when foundation work has commenced for any one or more building(s)
identified in Phase 1.
5. Effect of this Third Amendment. Except as expressly modified by this Third
Amendment, the Development Agreement shall continue in full force and effect
according to its terms, and Developer and City hereby ratify and affirm all their
respective rights and obligations under the Development Agreement, including but not
limited to Developer’s indemnification obligations as set forth in Section 10.10 of the
Development Agreement. In the event of any conflict between this Third Amendment
and the First and/or Second Administrative Agreement Amendments or the
Development Agreement, the provisions of this Third Amendment shall govern.
6. Binding Agreement. This Third Amendment shall be binding upon and inure to the
benefit of the heirs, administrators, executors, successors in interest, and assigns of
each of the parties hereto. Any reference in this Third Amendment to a specifically
named party shall be deemed to apply to any successor, administrator, executor, or
assign of such party who has acquired an interest in compliance with the terms of this
Third Amendment or under law.
7. Recordation. The City shall record a copy of this Third Amendment within ten (10)
days following execution by all parties.
8. Counterparts. This Third Amendment may be executed in multiple counterparts, each
of which shall be deemed an original, but all of which, when taken together, shall
constitute the same document.
9. Governing Law. This Third Amendment shall be governed by and interpreted in
accordance with the laws of the State of California.
10. Invalidity. Any provision of this Third Amendment that is determined by a court of
competent jurisdiction to be invalid or unenforceable shall be deemed severed from this
Third Amendment, and the remaining provisions shall remain in full force and effect as
if the invalid or unenforceable provision had not been a part hereof.
11. Headings. The headings used in this Third Amendment are for convenience only and
shall be disregarded in interpreting the substantive provisions of this Third
Amendment.
IN WITNESS WHEREOF, this Third Amendment has been entered into by and between
Developer and City as of the date and year first above written.
EL CAMINO AND SPRUCE LLC CITY OF SOUTH SAN
FRANCISCO
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By: _____________________ By: ___________________
Name: __________________
Title: ____________________
Date: ___________________ Date: _________________
APPROVED AS TO FORM:
By: ___________________
Jason Rosenberg
City Attorney
ATTEST:
By: ____________________
Krista J. Martinelli
City Clerk
2770210.2
Phase 1 Safeway Shell , Apartments &
Parking Structure (B15-2168 and B15-1988)
Bldg Permit
B15-2221
Bldg Permit B15-2027
Future
Construction
Future
Construction
Future
Construction
Phase 2 Bldg E &
Apartments
Ross #1858 (B15-2221)
Bldgs A-E (B15-2030)
Site Work and Garage
(B15-2027)
Phase 2 – Health Club and Major 3
PREVAILING WAGE REQUIREMENT NO PREVAILING WAGE REQUIREMENT
EXHIBIT A – APPLICABILITY OF PREVAILING WAGE REQUIREMENTS
Tenant Improvements
Throughout
Safeway TI (B16-0140)
Bldg Permits B15-2168
& B15-1988
Bldg Permit
B16-0140
City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:17-152 Agenda Date:2/6/2017
Version:1 Item #:3.
Report seeking review and direction from the Housing Subcommittee regarding the Accessory Dwelling Unit
Legislation/Land Use Update (Rozalynne Thompson, Associate Planner)
RECOMMENDATION
That the Housing Standing Subcommittee provide feedback on the Accessory Dwelling Unit legislative
changes and potential land use updates to the City’s Municipal Code.
On November 3,2016,Planning Division staff circulated a memorandum to the Housing Sub-Committee that
summarized the City’s current Second Dwelling Unit zoning regulations and outlined the recent state
legislation,Senate Bill 1069 and Assembly Bill 2299.These recent bills modify local jurisdictions’ability to
regulate Accessory Dwelling Units (ADUs),which is the new term for Second Dwelling Units as referenced in
these bills.Because the City’s current ordinance contains provisions that are not consistent with the new state
law, the City’s ordinance will need to be amended if the City wishes to continue enforcing its local regulations.
This report is prepared for the Housing Sub-Committee’s review and input on the proposed revisions.Some
elements of the new law are mandatory and thus,the City has no authority to adopt different regulations for
those elements.However,other elements of the law provide some flexibility for local jurisdictions to tailor the
requirements to their communities.This report summarizes the City’s existing regulations,identifies the major
changes under the new law, and proposes staff’s recommended revisions in light of the new law.
Current Zoning Regulations
The South San Francisco Municipal Code (SSFMC)regulates second dwelling units (now called ADUs)in
section 20.350.035.SSFMC section 20.350.035 regulates the development of these dwelling units with regard
to location,development standards,maximum floor area,number of bedrooms,architectural and design review,
parking requirements, and use and deed restrictions. The relevant regulations are the following:
·Location.Second units may be established on any lot in any district where a primary single unit
dwelling has been previously established or is proposed to be established in conjunction with
construction of a second unit.Only one second unit is permitted per primary single-family dwelling on
the same lot.
·Development Standards.Second units shall conform to the height,setbacks,lot coverage and other
zoning requirements of the zoning district in which the site is located,the development standards
outlined in Section 20.350.035,other requirements of the zoning ordinance,and other applicable City
codes.
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·Type of Unit.The second unit shall provide separate,independent living quarters for one household.
The second unit may be attached,detached,or located within the living areas of the primary dwelling
unit on the lot,subject to the standards of this section.An existing single-family dwelling may be
converted into two dwelling units.
·Maximum Floor Area.The total area of floor space of a detached second unit shall not exceed 640
square feet.The floor area of an attached second unit shall not exceed 30 percent of the living area or
the minimum area of an efficiency unit as described in Section 17958.1 of the California Health and
Safety Code, whichever is greater, with a maximum allowable floor area of 640 square feet.
·Number of Bedrooms.The number of bedrooms in a residential second unit shall not be more than
one.
·Architectural Compatibility.The second unit may utilize either a separate entry of the same exterior
doorways as the primary unit and shall be installed in a manner as to negate an obvious indication of
two units in the same structure.A second unit shall be designed and constructed so as to blend with and
complement the existing single-family unit in terms of height, roofing, siding materials and color.
·Design Review.All residential second units that result in alterations to the exterior of an existing
residence or new construction are subject to the design review provisions of Chapter 20.480 (“Design
Review”).
·Parking.One independently usable on-site parking space shall be provided for the Second Dwelling
Unit,which shall be provided in addition to the required parking for the primary single-unit dwelling.
This space shall comply with all development standard set forth in Chapter 20.330 (“On-site Parking
and Loading”).A tandem parking space may also be used to meet the parking requirement for the
Secondary Housing Unit,provided such space will not encumber access to a required parking space for
the primary single-unit dwelling.Required parking for the primary single-family dwelling may not be
removed for the creation of a Secondary Housing Unit (e.g.,garage conversions),or allocated to meet
the parking requirement for the Second Dwelling Unit,unless replacement parking is provided in accord
with the Zoning Ordinance.
Amended State ADU Legislation
On September 27,2016,Governor Brown signed SB 1069 and AB 2299 into law,resulting in changes to state
regulations on “second dwelling units”.As of January 1,2017,the City’s existing zoning regulations regarding
second units have been preempted by the state legislation until the City adopts an ordinance compliant with
state law.
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Some of the major changes provided in the amended state law provisions include the following:
·Replaces the term “Second Dwelling Units” with “Accessory Dwelling Units” (ADUs).
·Sets the maximum standards that local agencies may use to evaluate proposed ADUs.
·Approval Process.Jurisdictions must approve or deny ADUs that meet the stated standards
ministerially within 120 days of receiving the application.
·Maximum Floor Area.The total area of floor space of a detached ADU shall not exceed 1,200 square
feet.The floor area of an attached ADU shall not exceed 50 percent of the living area of the primary
dwelling unit,with a maximum allowable floor area of 1,200 square feet.Note that this requirement
does not mean that the City has to provide 1,200 square feet.The City may set a square footage limit
that is less than 1,200 square feet so long as the limit does not burden the development of ADUs.
·Parking.ADUs within half a mile of transit and in historic districts,or where there is a car share
vehicle located within one block,shall not be required to provide parking for the ADU.Per the state
law,transit refers to any public transit fixed-route service,including bus lines.For other ADUs not
within these geographic locations,at most,one parking space can be required per bedroom per unit.
The parking space may be a tandem space or located within a setback.If a garage is demolished to
build a second unit and the city requires the home owner to replace the parking space,the space can be
replaced in any configuration, including uncovered, tandem, or mechanical lifts.
·ADUs in Existing Structures.Applications for ADUs in existing structures must be approved if the
existing structure is located in a single family zone,is located completely within an existing structure,
provides direct exterior access,and has sufficient setbacks for fire safety.Such ADUs shall not be
required to provide fire sprinklers if they are not also required for the primary residence nor be required
to install new or separate utility connections.Furthermore,no additional parking may be required for
these ADUs which are part of an existing primary residence or accessory structure.Water and sewer
districts may not charge connection fees for ADUs in existing structures.
·Fees.For new ADUs not within existing structures,water and sewer charges must be proportional to
water and sewer usage.
Junior Accessory Dwelling Units
On September 16,2016 Governor Brown also signed AB 2406 into law,which authorizes local agencies to
provide,by ordinance,for the creation of “junior accessory dwelling units”(JADU),in single family residential
zones. Adoption of a JADU ordinance is optional. The statute defines a “junior accessory dwelling unit” as
“a unit that is no more than 500 square feet in size and contained entirely within an existing single-family
structure.A junior accessory dwelling unit may include separate sanitation facilities,or may share sanitation
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structure.A junior accessory dwelling unit may include separate sanitation facilities,or may share sanitation
facilities with the existing structure.”
If the City chooses to adopt such an ordinance,the Zoning Ordinance must establish,among other things,
standards for the creation of the junior accessory dwelling unit,required deed restrictions,and occupancy
requirements.Moreover,if a junior accessory dwelling unit ordinance is adopted,it must comply with the
following requirements of the Section 65852.22 of the California Government Code:
·Parking cannot be required
·Limit of one JADU per residential lot zoned for single-family residences already built on the lot
·Must be constructed within the existing walls of the structure and require inclusion of an
existing bedroom
·May include a private or shared bathroom
·Must include a separate entrance from the main entrance to the structure,with an interior entry
to the main living area
·Must have an efficiency kitchen with a sink with maximum waste line diameter of 1.5 inches,a
cooking facility with appliances that do not require electrical service greater than 120 volts,or
natural or propane gas,and a food preparation counter and storage cabinets that are of
reasonable size in relation to the size of the junior accessory dwelling unit
·Must be permitted ministerially without discretionary review or hearing
·For the purposes of providing service for water,sewer,or power,including a connection fee,a
junior accessory dwelling unit shall not be considered a separate or new dwelling unit
Proposed Amendments to the Zoning Ordinance to Comply with State ADU Legislation
In response to the state legislation,staff is proposing the following changes to bring the City’s Municipal Code
into compliance with the new state ADU legislation.Further,staff proposes to adopt an ordinance allowing
JADUs, as authorized under AB 2406. Changes to be considered include the following:
·Changing the terminology throughout the municipal code to use “accessory dwelling units”and
“junior accessory dwelling units” rather than “second dwelling units”
·Adding objective development standards consistent with state law applicable to accessory
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dwelling units and junior accessory dwelling units
·Adjusting parking and setback requirements to the minimum extent necessary to comply with
the State laws
·Eliminating the Design Review requirement for detached accessory dwelling units
·Allowing junior accessory dwelling units,which involve conversion of existing building space
within an existing single-family residence to a small living unit
·Ensuring that any residential lot may only have one accessory or junior accessory unit per parcel
(and not one of each).
Most of the requirements under state law are maximum requirements.Thus,the City could adopt less restrictive
requirements if the City wanted to promote the development of ADUs beyond the state mandates.The Housing
Sub-Committee could consider additional changes to the Municipal Code (i.e.changes not required by State
law)affecting parking,setback requirements,and other standards.In addition,the Housing Subcommittee
could consider a different stance on junior accessory units, which are enabled but not required by State law.
Recommendation
After receiving input from the Housing Subcommittee at the February 6th meeting,staff will prepare
recommended revisions to the Municipal Code and proceed to the Planning Commission for recommendation
and City Council for consideration.Alternatively,if the Housing Sub-Committee would like to hold an
additional study session on these statutory changes and provide additional direction on recommended
amendments to the Municipal Code,such a session may be scheduled for the Housing Sub-Committee Meeting
in March.
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