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HomeMy WebLinkAboutOrd. 1538-2017 ��x SAN City of South San Francisco o P.O.0 Hall, 0 Grand Avenue) s- _ South San Francisco, CA City Council 9L1 DRrl Ordinance: ORD 1538-2017 File Number: 17-599 Enactment Number: ORD 1538-2017 AN ORDINANCE ADOPTING THE FIRST AMENDMENT TO THE DEVELOPMENT AGREEMENT BETWEEN ALEXANDRIA REAL ESTATE EQUITIES -SAN FRANCISCO NO. 21 LP, ALEXANDRIA REAL ESTATE EQUITIES -SAN FRANCISCO NO. 42 LLC,AND THE CITY OF SOUTH SAN FRANCISCO FOR THE OFFICE/RESEARCH AND DEVELOPMENT (R&D) CAMPUS AT 213-221 EAST GRAND AVENUE. WHEREAS,pursuant to City Council Ordinance No. 1403-2009,the City of South San Francisco("City") and Alexandria Real Estate Equities (ARE)-San Francisco No. 21 LP, ARE-San Francisco No. 42 LLC, entered into a Development Agreement ("Development Agreement") for the development of an Office/ R&D Campus at 213-221 East Grand Avenue ("Project"), which was effective as of February 13, 2009; and WHEREAS, pursuant to Resolution No. 114-2008, the City Council approved a Use Permit, Design Review and Transportation Demand Management Program for the Project; and WHEREAS, pursuant to Resolution No. 113-2008, the City Council certified an Environmental Impact Report(EIR)(State Clearinghouse number 2008022094)for the Project on February 13,2009,including a Mitigation Monitoring and Reporting Program and a Statement of Overriding Consideration; and WHEREAS,on January 11,2017,Alexandria Real Estate Equities("Applicant")submitted an application proposing to move the parking garage to the east side of the Project site and requesting a parking reduction to a ratio of 2.23 parking spaces/ 1,000 square feet(sq. ft.)at 213-221 East Grand Avenue for the Project in the Business Technology Park (BTP) Zoning District, which requires approval of a Development Agreement Amendment, Use Permit Modification, and Design Review; and WHEREAS, environmental analysis for the proposed Project was conducted, which concluded that the environmental effects associated with construction and operation of the revised Project are fully within the scope of the environmental analysis conducted in the 2007 EIR, such that the Project does not meet the criteria under California Environmental Quality Act (CEQA) Guidelines Sections 15164 or 15162 justifying preparation of a subsequent EIR and thus, an addendum is the appropriate environmental document for the Project; and City of South San Francisco Page At File Number: 17-599 Enactment Number: ORD 1538-2017 WHEREAS,pursuant to CEQA Guidelines Section 15164,an addendum to the 2007 EIR was prepared for the Project("2017 Addendum") and approved by a separate Resolution of the City Council; and WHEREAS, the Design Review Board reviewed the Project at its February 21, 2017 meeting, and recommended approval of the Project; and WHEREAS, on April 20, 2017, the Planning Commission for the City of South San Francisco held a lawfully noticed public hearing to consider the First Amendment and recommended that the City Council adopt an ordinance approving the First Amendment("Ordinance"); and WHEREAS, on June 14, 2017, the City Council for the City of South San Francisco held a lawfully noticed public hearing to consider the First Amendment to the Development Agreement. NOW, THEREFORE, BE IT ORDAINED that based on the entirety of the Record before it, as described below, the City Council of the City of South San Francisco does hereby ORDAIN as follows: SECTION I. FINDINGS General Findings The foregoing recitals are true and correct and made a part of this Ordinance. The Record for these proceedings, and upon which this Ordinance is based, includes without limitation, federal and state law; the California Environmental Quality Act, Public Resources Code § 21000, et seq. ("CEQA") and the CEQA Guidelines, 14 California Code of Regulations § 15000, et seq.; the South San Francisco General Plan and General Plan Environmental Impact Report (EIR); the South San Francisco Municipal Code; the Project applications; the EIR, including the Draft and Final EIR prepared and certified for the 213-221 East Grand Avenue Project and appendices thereto; the 2017 EIR Addendum; all site plans, all associated documents,and all reports,minutes,and public testimony submitted as part of the Planning Commission's duly noticed April 20, 2017 meeting; and all reports, minutes, and public testimony submitted as part of the City Council's duly noticed June 14, 2017 meeting, and any other evidence(within the meaning of Public Resources Code §21080(e) and §21082.2). The modifications to the Development Agreement as proposed in the First Amendment will not create any new significant impacts or substantially more severe impacts as compared to those already identified and analyzed in the 2007 EIR. Further, the City Council finds that there is no new information of substantial importance that demonstrates new or substantially City of South San Francisco Page 2 File Number: 17-599 Enactment Number: ORD 1538-2017 •e severe significant effects, as compared to those identified in the prior CEQA documents. Nor are any new or additional mitigation measures required to mitigate any impacts of the Project. Accordingly, the City Council finds that CEQA Guidelines section 15162 does not require any further CEQA review, and that the 2017 Addendum,prepared pursuant to CEQA Guidelines section 15164, is the appropriate environmental document for approval of the Project. The proposed First Amendment to the Development Agreement, attached hereto as Attachment 1, is incorporated by reference and made a part of this Ordinance, as if it were set forth fully herein. The documents and other material constituting the record for these proceedings are located at the Planning Division for the City of South San Francisco, 315 Maple Avenue, South San Francisco, CA 94080, and in the custody of Planning Manager, Sailesh Mehra. Development Agreement The Owner and City have negotiated a First Amendment to the Development Agreement pursuant to Government Code section 65864 et seq and South San Francisco Municipal Code Chapter 19.60. The First Amendment, as proposed, is consistent with the objectives, policies, general land uses and programs specified in the South San Francisco General Plan and any applicable specific plan because the revised Project will facilitate the development of the type of project that the General Plan contemplates in the Project site area. The Development Agreement, as proposed for amendment, complies with all applicable zoning, subdivision and building regulations and with the General Plan and any applicable specific plan because under the First Amendment the Project remains compatible with the uses authorized in,and the regulations prescribed for the land use district in which the real property is located. The site plan modifications under the First Amendment do not in any way alter the fact that the Project site is physically suitable for the type and intensity of the land use being proposed. The site plan modifications to the Development Agreement pursuant to the First Amendment will facilitate the type of development that the General Plan contemplates in the Project site area. Furthermore, the suitability of the site for the type of development authorized in the First Amendment to Development Agreement was analyzed thoroughly in the original Project approvals and environmental documentation prepared for the original Project and the revised Project. The First Amendment to the Development Agreement states that the project to be developed on the Property pursuant to this Agreement shall consist of(i)one(1)office/research and development building, with nine (9) floors, containing approximately 291,634 square feet, including a two (2) level ancillary tenant amenity space containing up to 8,495 square feet, (ii) a five (5) level parking garage that will accommodate five hundred twenty-four(524) City of South San Francisco Page 3 File Number: 17-599 Enactment Number: ORD 1538-2017 zing spaces, (iii) surface parking that will accommodate up to one hundred ten(110) parking spaces, (iv) sixteen(16) accessible parking spaces, and(v)related improvements. The First Amendment does not alter the provisions of the Development Agreement that contain the previously approved permitted uses of the property,the previously approved density and intensity of uses, the previously approved maximum height and size of proposed buildings, nor the specific provisions for reservation or dedication of land for public purposes. With adoption of the First Amendment, the Development Agreement will still state the permitted uses of the property, the density and intensity of uses,the maximum height and size of the proposed buildings, and the reservation or dedication of land for public purposes. Furthermore, the duration of the Development Agreement under the First Amendment will remain ten(10)years. SECTION II. AMENDMENTS. The City Council hereby adopts an Ordinance amending the Development Agreement to modify the site plan by moving the parking garage to the east side of the Project site and reduce the number of parking spaces at the Project,as shown in the First Amendment attached hereto and incorporated herein as Exhibit A.All other areas of the Development Agreement that are not amended by this Ordinance are not included in Exhibit A, and shall remain in full force and effect. SECTION III. SEVERABILITY. If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid or unconstitutional,the remainder of this Ordinance, including the application of such part or provision to other persons or circumstances shall not be affected thereby and shall continue in full force and effect.To this end,provisions of this Ordinance are severable. The City Council of the City of South San Francisco hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase hereof irrespective of the fact that any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases be held unconstitutional, invalid, or unenforceable. SECTION IV. PUBLICATION AND EFFECTIVE DATE. Pursuant to the provisions of Government Code Section 36933, a summary of this Ordinance shall be prepared by the City Attorney. At least five(5) days prior to the Council meeting at which this Ordinance is scheduled to be adopted, the City Clerk shall (1) publish the summary, and (2) post in the City Clerk's Office a certified copy of this Ordinance. Within fifteen(15)days after the adoption of this Ordinance,the City Clerk shall (1)publish the summary,and(2)post in the City Clerk's Office a certified copy of the full text of this Ordinance along with the names of those City Councilmembers voting for and against this Ordinance or otherwise voting. This Ordinance shall become effective thirty(30) days from and after its adoption. City of South San Francisco Page 4 Fite Number: 17-599 Enactment Number: ORD 1538-2017 Introduced at a regular meeting of the City Council of the City of South San Francisco,held the 14th day of June, 2017. At a meeting of the City Council on 6/28/2017, a motion was made by Richard Garbarino, seconded by Liza Normandy, that this Ordinance be adopted. The motion passed. Yes: 5 Vice Mayor Normandy, Councilmember Garbarino, Councilmember Matsumoto, Mayor Gupta, and Councilmember Addiego n Attest by Gabriel Rodriguez Mayor Pradeep Gupta City of South San Francisco Page 5 Recording Requested by and when Recorded, return to: City of South San Francisco 400 Grand Ave South San Francisco, CA 94080 EXEMPT FROM RECORDING FEES PER GOVERNMENT CODE §§6103, 27383 (SPACE ABOVE THIS LINE RESERVED FOR RECORDER’S USE) FIRST AMENDMENT TO DEVELOPMENT AGREEMENT This First Amendment to Development Agreement (“First Amendment”) is entered into by and between ARE-San Francisco No. 21 LP, ARE-San Francisco No. 42 LLC (collectively known as “Developer”) and the CITY OF SOUTH SAN FRANCISCO, a municipal corporation (“City”) on this _____ day of _________________, 2017. RECITALS A. Pursuant to the adoption of City Council Ordinance No. 1403-2009 (“DA Ordinance”), the City entered into a Development Agreement between City and ARE-San Francisco No. 21 LP, ARE-San Francisco No. 42 LLC (“Development Agreement”) for the development of an Office/R&D project at 213-221 East Grand Avenue (“Project”). The location of the Project is further described in the attached legal description as Exhibit A. The Ordinance took effect on February 13, 2009. B. On January 11, 2017, the Developer requested a first amendment to the Development Agreement (“First Amendment”) to modify the site plan by moving the parking garage to the east side of the project site, and to request a parking reduction through an advanced Transportation Demand Management Plan. C. On April 20, 2017, the Planning Commission adopted Resolution No. __________ recommending that the City Council (1) adopt an ordinance approving the First Amendment to the Development Agreement, and (2) adopt a resolution approving a use permit modification, parking reduction request, transportation demand management plan and design review to redesign certain Project details including modifying the site plan to move the parking garage to the east side of the Project site (“Revised Entitlements”). D. On June 14, 2017, the City Council adopted Resolution No. __________ approving the Revised Entitlements. E. On June 14, 2017, the City Council considered the proposed First Amendment and adopted Ordinance No. ____________ approving the First 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. Recital E. Recital E of the Development Agreement is hereby amended to read as follows with additions in double underline and deletions in strikethough: WHEREAS, Owner has submitted a development proposal to the City that would permit the development of the Property as depicted on the 213-221 East Grand Avenue City Council plan set dated December 10, 2008, prepared by Dowler-Gruman Architects (the “Original Plan Set”) (a copy of such Original Plan Set is attached hereto as Exhibit B and incorporated herein by reference), as amended by the 213-221 East Grand Avenue Use Permit Modification and Development Agreement Modification plan set dated January 10, 2017, prepared by WRNS Studio (the “Amended Plan Set”) (a copy of such Amended Plan Set is attached hereto as Exhibit B-1 and incorporated herein by reference) (as amended, the “Plan Set”); and 4. Section 3. Section 3 of the Development Agreement is hereby amended to read as follows with additions in double underline and deletions in strikethrough: 3. Project Description; Development Standards For Project The project to be developed on the Property pursuant to this Agreement (the "Project") shall consist of (i) one (1) office/ research and development building, with nine (9) floors, containing approximately 291,634 square feet, including a two (2) level ancillary tenant amenity space containing up to 8,495 square feet, (ii) a five (5) level parking garage that will accommodate six hundred and sixteen (616) five hundred twenty-four (524) parking spaces, (iii) surface parking that will accommodate up to two hundred and ten (210) one hundred ten (110) parking spaces, (iv) sixteen (16) accessible parking spaces, and (v) related improvements, all as provided in the Plan Set and as approved by the City Council. 5. Section 35. Section 35 of the Development Agreement is hereby amended to read as follows with additions in double underline and deletions in strikethough: Exhibit A-1 – Legal Description and Map of Primary Property Exhibit A-2 – Legal Description and Map of Adjacent Property Exhibit B – Use Permit, Including Original Plan Set and Conditions of Project Approval Exhibit B-1 – Amended Plan Set 6. Exhibits. The Development Agreement is hereby amended to add the Amended Plan Set attached hereto as Exhibit B as new Exhibit B-1 to the Development Agreement. 7. Effect of First Amendment. Except as expressly modified by this First 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 13 of the Development Agreement. In the event of any conflict between the First Amendment or the Development Agreement, the provisions of this First Amendment shall govern. 8. Binding Agreement. This First 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 First 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 First Amendment or under law. 9. Recordation. The City shall record a copy of this First Amendment within ten (10) days following execution by all parties. 10. Counterparts. This First 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. 11. California Law. This First Amendment shall be governed by and interpreted in accordance with the laws of the State of California. 12. Invalidity. Any provision of this First Amendment that is determined by a court of competent jurisdiction to be invalid or unenforceable shall be deemed severed from this First 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. 13. Headings. The headings used in this First Amendment are for convenience only and shall be disregarded in interpreting the substantive provisions of this First Amendment. IN WITNESS WHEREOF, this First Amendment has been entered into by and between Developer and City as of the date and year first above written. [SIGNATURES ON THE FOLLOWING PAGE] CITY OF SOUTH SAN FRANCISCO By: Name: Title: Date: ARE-SAN FRANCISCO NO. 21, LLC, a California Limited Partnership By: ARE-SAN FRANCISCO NO. 21 GP, LLC, a Delaware limited liability company, General Partner By: Alexandria Real Estate Equities, L.P., a Delaware limited partnership, Managing Member By: ARE-QRS CORP., a Maryland corporation, General Partner By: ______________________________________________________________ Name: ____________________________________________________________ Title: _____________________________________________________________ Date: _____________________________________________________________ ARE-SAN FRANCISCO NO. 42, LLC, a Delaware limited liability company By: Alexandria Real Estate Equities, L.P., a Delaware limited partnership, Managing Member By: ARE-QRS CORP., a Maryland corporation, General Partner By: ______________________________________________________________ Name: ____________________________________________________________ Title: _____________________________________________________________ Date: _____________________________________________________________ APPROVED AS TO FORM: By: ___________________ Jason Rosenberg, City Attorney ATTEST: By: ____________________ Krista J. Martinelli, City Clerk EXHIBIT A Legal Description Exhibit B Amended Plan Set 2820151.1