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HomeMy WebLinkAbout2004-10-20 e-packetSPECIAL MEETING CITY COUNCIL OF THE CITY OF SOUTH SAN FRANCISCO P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, California 94083 Meeting to be held at: MUNICIPAL SERVICES BUILDING CITY COUNCIL COMMUNITY ROOM 33 ARROYO DRIVE WEDNESDAY, OCTOBER 20, 2004 6:15 P.M. NOTICE IS HEREBY GIVEN, pursuant to Section 54956 of the Government Code of the State of California, the City Council of the City of South San Francisco will hold a Special Joint Meeting with the Planning Commission on Wednesday, the 20th day of October, 2004, at 6:15 p.m., in the Municipal Services Building, Community Room, 33 Arroyo Drive, South San Francisco, California. Purpose of the meeting: 1. Call to Order 2. Roll Call 3. Public Comments - comments are limited to items on the Special Meeting Agenda 4. Study Session: Joint Meeting with Planning Commission to review Terrabay Phase IH development proposal - Myers Development 5. Closed Session: Pursuant to Government Code section 54956.95, liability claims Claimant: Francisco 6. Adjournment Morales; Agency claimed against: City of South San /s/ Sylvia M. Payne SP. AGENDA ITEM #4 DATE: October 20, 2004 TO: Honorable Mayor, City Council and Planning Commission FROM: Marty Van Duyn, Assistant City Manager SUBJECT: STUDY SESSION-TERRABAY PHASE 111 RECOMMENDATION Conduct a study session and provide direction on the proposal for the Terrabay Phase III property to be presented by Myers Development Company. BACKGROUND/DIS CUS SION Myers Development Company is applying for re-entitlement of the Phase 111 properties of Terrabay. The property is located at the intersection of Bayshore Boulevard and Sister Cities Boulevard. The condominium tower and 70 units of paired housing are adjacent and to the southwest of the Phase site. Bayshore Boulevard flanks the eastern boundary of the Phase 111 site. Attachment A to this report contains a brief history of Terrabay from 1980 to present. The Terrabay project was originally approved on December 2, 1982 which required a vote to annex the project area into the City of S0uth San Francisco. Thefirst Habitat Conservation Plan in the nation, under the enabling Endangered Species Act legislation, was drafted and adopted for San Bruno Mountain in 1982 (HCP). The Plan requires particular environmental management and dedication of open space for the right to develop certain parcels on the base of San Bruno Mountain. The Cities of South San Francisco, Brisbane and Daly City and San Mateo County and the U.S. Department ofFish and Wildlife are parties to the agreement. Subsequently the land has had various entitlements and revisions or amendments to the entitlements. The project site and entirety of the Terrabay area is regulated by a development agreement, specific and precise plan and the "Terrabay Zoning District" contained in Title 20 (Zoning), Section 20.63 of the Municipal Code, as well as the San Bruno Mountain HCP. Historically the entirety of the Terrabay project has been referred to as Terrabay although with the demographic changes at the beginning of this century, portions of Terrabay have been renamed "Mandalay". TerrabayPhaseI- The Village and Park Subdivisions include 125 single-family detached houses and 161 single-family attached townhouse units. The Terrabay Recreation Center and Fire Station are also a part of the Terrabay Phase I development. Phase I was also intended to include a child care center. Staff Report Subject: Terrabay Phase I11 Joint Study Session October 20, 2004 Page 2 An amendment to the Terrabay Specific Plan (September 25, 1996) was approved in order to provide for a $700,000 in-lieu fee for the childcare requirement. Terrabay Phase II- Woods- The Terrabay Woods project consists of 135 single-family detached units and is nearly complete. Minor geologic and infrastructure work is being completed. The Terrabay Woods project is now referred to as Mandalay Heights. Terrabay Phase II- The Peninsula Mandalay and Mandalay Pointe phases of Terrabay are historically considered a part of Phase II Terrabay. The condominium tower consists of 112 units and received a conditional certificate of occupancy on October 4, 2004. Some minor finishing is currently being conducted and expected to be complete mid-December 2004. The Mandalay Pointe portion of the project consists of 70 paired units built as two units attached side-by-side. Western Pacific Housing is constructing this portion of the project. Approximately 45 of the 70 units have received a certificate of occupancy. Western Pacific anticipates completing construction in April 2005. Terrabay Phase III-Commercial- Phase 111 has always been referred to as the commercial portion of Terrabay. Originally entitled in the 1980s the land plan included a conference center, hotels and office. Sunchase Development (headquartered in Phoenix, Arizona) applied for re-entitlement in 1996 and in 1999 the City Council denied their proposal. The proposal consisted of mixed-use (without residential). The City was concerned about impact on the archaeological site, hydrology, geology, and grading. The land plan called for paving over the archaeological site, filling wetlands and destroying critical butterfly habitat, which would not (and could not legally) be permitted by the U.S. Fish and Wildlife Service until such time that a Habitat Conservation Plan amendment is complete. Myers Development Company became involved in Terrabay in late 1999-2000. Myers conducted many meetings with the community with respect to the issues surrounding Phase 111 development. As a result of those meetings, Myers proposed a land plan that preserved the archaeological site and butterfly habitat consisting of 26 acres. The land, known as the Preservation Parcel, was conveyed to San Mateo County Parks and Recreation this year for inclusion in San Bruno County and State Park. In October 2000 Myers received entitlement approvals from the City for 665,000 square feet of office on the Phase 1II site. The approvals also included an amendment to the development agreement, zoning ordinance, and the Terrabay Specific and Precise Plans and the City's General Plan. Subdivision map approvals were also granted by the City. The entitlements also included the requirement to construct a performing arts center for the City, 32 below market rate housing units, a day care center, and public art. Myers constructed the Terrabay Woods project, condominium tower and sold the 70-unit portion of Terrabay to Western to development. The office market took a serious nose-dive with the dot.com fallout. Subsequently, Myers is proposing to re-entitle Phase m. Staff Report Subject: Terrabay Phase llI Joint Study Session October 20, 2004 Page 3 Current Proposal-Study Session The proposal is a mixed-use development consisting of retail, office and residential. The retail is proposed to be high-end "Lifestyle Retail". "Lifestyle" is a retail term that refers to retail stores that are not dependent on department store anchors to draw customers. Instead Lifestyle Retail assembles a critical mass of specialty retail, assorted eateries and movie theatres within a development Lifestyle. Centers typically include specialty retailers such as William Sonoma, Talbots, Ann Taylor, Banana Republic and Pottery Barn, to name a few. The proposal includes 66 units of below-market-rate housing and 248 units of market rate housing in townhouse and high rise configuration. Also proposed is approximately 260,000 square feet of office and a 100-seat performing arts center (inside) and an outdoor performance area, a public an program and a valley trail. The following table shows a breakdown of the retail, office and residential land uses. The application materials note that the office tower is proposed conditionally: Should Myers not secure a pre-leasing contract to develop a build-to-suit office tower, development would revert to 180 additional units of residential. Myers, if entitled, proposes to have Phase I (residential, retail, parking) complete and operational in 2007. Therefore, if by 2008 an office user is not secured, residential would be built. Please note that the proposed square footages are in draft stages and are likely to change as a result of Council and Commission direction and project refinement. RETAIL Major Anchors Area (Approx, Sq. Ft.) Floors Unit Count Cinema 44,500 Grocery 43,500 Lifestyle Anchors 90,400 Specialty Retail 73,800 Restaurant 39,500 Building Pads and Kiosk 10,800 Total Retail 302,500 OFFICE Office 12 Lobby and Performing Arts 1 Parking 4 Total Office 260,000 17 Staff Report Subject: Terrabay Phase III Joint Study Session · October 20, 2004 Page 4 RESIDENTIAL High Rise (Market Rate) 20 180 Low Rise Townhouse (Market 2-4 68 Rate) Low Rise Townhouse (Below 66 Market Rate) Total Residential 329,326 314 The proposal will require a focused environmental impact report, a supplement to the 1998/99 SEIR. The proposal will need an amendment to the development agreement, a specific and precise plan amendment, an amendment to the zoning ordinance and HCP certification. The project will go through the planning process as before, public heatings before the Planning Commission and City Council. CONCLUSION After direction f~om the Council and the Commission staff will begin processing the application accordingly. By: Assistant City Manager Appr°ve~ ~. N~age~l' ~~- City Manager Attachments: A - Terrabay History (to staff report) Bound Preliminary Site Plans and Elevations Hardbound Architectural Book - distributed to City Council and Planning Commission only. ATTACHMENT A TERRABAY/MANDALAY BRIEF HISTORY Since 1982 the Terrabay lands have undergone entitlement, legislative and environmental review. The preceding and following summary characterizes the most notable portions of the history of the land since 1980. The County of San Mateo adopted a plan for San Bruno Mountain In 1976. The first Terrabay Specific Plan was approved in 1982 by the City Council of South San Francisco (City Council Resolution No. 159-82 on December 2, 1982) and Board of Supervisors of the County of San Mateo. The HCP was entered into in 1982. The City of South San Francisco certified an Environmental Impact Report for the Terrabay lands in 1982. The City certified Supplemental Environmental Impact Reports for Terrabay in 1996 and 1998/99. Supplemental environmental review and analysis was required because environmental conditions and environmental law had changed over the years since the original EIR in addition to the type and magnitude of the proposed proj ect(s). On May 18, 1983, the City Council adopted Ordinance No. 921-83 approving and adopting the first "Development Agreement" with Terrabay and the Ordinance took effect on June 17, 1983. The development agreement has been extended and modified over the years, most notably in 2000. The development agreement (which will need to be modified in order to allow a change in development for Phase llI) specifies (among other requirements) that Myers provide 32 units of moderate income housing, restore certain lands pursuant to City conditions of approval and the HCP, construct a child care center on the commercial lands and a performing arts center and pay infrastructure improvement fees for the right of constructing the 665,000 square foot office building. Myers has been and continues to conduct land restoration activities on the Preservation Parcel, as well as the Phase III property, the residential tower property and Juncus Ravine. Western continues to perform the same activities on the Woods and Mandalay Pointe properties. The restoration activities are part and parcel to permitting development along the base of San Bruno Mountain pursuant to HCP requirements. The restoration efforts include removal of certain invasive exotic plants that replace butterfly habitat when left unchecked. The methods to control the exotics include chemical, mechanical and hand weed removal as well as the use of grazing and controlled bums in certain areas. Goat grazing has been used on Terrabay lands, and has proven successful. A controlled burn for the Juncus Parcel is planned this autumn (2004). The scratch line for the bum is already in place. Black lining and the eventual bum are anticipated in October 2004. The California Department of Forestry, South San Francisco Fire, North County Fire Authority and the Colma volunteer Fire Department are all participating in the bum.