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HomeMy WebLinkAboutMinutes 2004-07-21 MINUTES CITY COUNCIL CITY OF SOUTH SAN FRANCISCO SPECIAL MEETING WEDNESDAY, JULY 21, 2004 MUNICIPAL SERVICES BUILDING COMMUNITY ROOM 33 ARROYO DRIVE o (Cassette Tape No. 1) Call to Order Roll Call 6:30 p.m. Present: Councilmembers Femekes*, Garbarino and Gonzalez, Vice Mayor Green and Mayor Matsumoto Absent: None *Councilman Fernekes left meeting at 7:27 p.m. Staff Present: City Manager Wilson, Assistant City Attomey Johnson, Assistant City Managers Van Duyn and Nagel Others Present: Messrs. Dalton Smith, Michael Flynn (DMJM Design), and Kevin O'Brien (Leyman Bros.) Public Comments None. Study Session: Oyster Point Marina Hotel Proposal - Dalton Smith, Developer Mr. Smith informed Council that the presentation addresses architectural design concerns that were expressed at the May 19th study session. Mr. Flynn gave an overview of the project site plan, hotel elevations, the inclusion of a sky bar, examples of possible furnishings, meeting rooms, banquet and ground facilities, landscaping features, and other Hilton Hotel standard amenities. Councilman Femekes stated his disappointment with the design and stressed the importance of a signature hotel. He further stated that staff and the Design Review Board should have the opportunity to review the drawings before it is presented to Council in order to receive their comments. He stated he was not supportive of pledging TOT fees to the project. Mr. Smith stated that the disadvantages of the site, which includes landfill, seismic area and bay mud, dictate the hotel design and footprint. Mr. Flynn stated that the architectural details were not yet addressed in the design and sought possible direction from Council. Councilman Garbarino and Vice Mayor Green stated the design looked institutional. Councilman Gonzalez stated he could not support using TOT to finance the project and questioned the hotel rates and how they are determined. Messrs. Smith and O'Brien explained how the feasibility companies and the PKF report determine the rates that are based on hotel location, size, and quality. Mayor Matsumoto stated support for the project, but felt that the quality of the hotel was not rendered into the building design. The discussion continued regarding the inclusion of a parking structure and alternatives. The project engineer, Robert Erskine, stated that the design was the most efficient proposal due to the site restrictions and challenges, economics of the project, and ground settlement issues. Mr. Smith clarified that the lower parking area was for valet parking and that the upper parking area was for self-parking and guests could enter through a rear entrance. Councilmembers questioned the dedicated TOT, and Mr. O'Brien stated it would be very difficult to finance the hotel and market it without the TOT. He explained the financing and how the TOT would be drawn down upon, if necessary, over a 30-35 year period. City Manager Wilson advised Council that a study would need to be conducted to verify the financial plan. He suggested Council look first at the project as a stand-alone hotel, and then later Council can consider the feasibility of a convention center. Several Councilmembers reiterated their reluctance to dedicate the TOT and that more information and assurances would be needed. Council directed staff to prepare a report on the projected cash flow for Council to study. City Manager Wilson stated that staff will contact some firms on preparing a detailed analysis and will then advise Council on the cost. o Closed Session: Pursuant to Government Code section 54956.8 real property negotiations related to SF-PUC property located on Mission Road (APNs: 093-312-050/060); City Negotiator: Assistant City Manager Van Duyn Time entered into Closed Session: Time reconvened into Open Session: Report from Closed Session: Adjournment 8:12 p.m. 8:35 p.m., Councilmembers Garbarino and Gonzalez, Vice Mayor Green and Mayor Matsumoto present. Direction given/no action taken. Being no further business, Mayor Matsumoto adjourned the meeting at 8:35 p.m. Submitted by: Syl,~ia M. Payne, City e'lerk City of South San Francisco ~itsumoto, ayor SPECIAL CITY COUNCIL MEETING JULY 21, 2004 MINUTES PAGE 2