HomeMy WebLinkAbout2018-01-16 e-packet@2:00Tuesday, January 16, 2018
2:00 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
Oversight Board to the Successor Agency to the former
Redevelopment Agency
Regular Meeting Agenda
January 16, 2018Oversight Board to the Successor
Agency to the former Redevelopment
Agency
Regular Meeting Agenda
NOTICE IS HEREBY GIVEN, pursuant to Section 54956 of the Government Code of the State of California,
the Oversight Board for the Successor Agency to the City of South San Francisco Redevelopment Agency will
hold a Regular Meeting on Tuesday, January 16, 2018, at 2:00 p.m., in the Large Conference Room, Top
Floor at City Hall, 400 Grand Avenue, South San Francisco, California.
In accordance with California Government Code Section 54957.5, any writing or document that is a public
record, relates to an open session agenda item, and is distributed less than 72 hours prior to a regular meeting
will be made available for public inspection in the City Clerk ’s Office located at City Hall. If, however, the
document or writing is not distributed until the regular meeting to which it relates, then the document or writing
will be made available to the public at the location of the meeting, as listed on this agenda. The address of City
Hall is 400 Grand Avenue, South San Francisco, California 94080.
In compliance with Americans with Disabilities Act, if you need special assistance to participate in this meeting,
please contact the South San Francisco City Clerk’s Office at (650) 877-8518. Notification 48 hours in
advance of the meeting will enable the City to make reasonable arrangements to ensure accessibility to this
meeting.
Page 2 City of South San Francisco Printed on 4/16/2018
January 16, 2018Oversight Board to the Successor
Agency to the former Redevelopment
Agency
Regular Meeting Agenda
Chairperson: Selected by:
Neil Cullen Largest Special District of the type in H&R
Code Section 34188
Vice Chair: Selected by:
Michael Krause San Mateo County Superintendent of Schools
Assistant Superintendent, Business Services
South San Francisco Unified School District
Alternate: Dr. Shawnterra Moore
Superintendent, South San Francisco Unified School District
Board Members: Selected by:
Mark Addiego Mayor of the City of South San Francisco
Councilmember, City of South San Francisco
Barbara Christensen Chancellor of California Community College
Director of Community/Government Relations,
San Mateo County Community College District
Alternate: Mitchell Bailey, Chief of Staff to the Chancellor
San Mateo County Community College District
Reyna Farrales San Mateo County Board of Supervisors
Deputy County Manager, San Mateo County
Paul Scannell San Mateo County Board of Supervisors
(Public Member)
Adena Friedman Mayor of the City of South San Francisco
Senior Planner, City of South San Francisco
Counsel
Craig Labadie
Advisory:
Marian Lee –Assistant City Manager, City of South San Francisco
Richard Lee – Finance Director, City of South San Francisco
Alex Greenwood – Director of Economic and Community Development, City of South San Francisco
Jason Rosenberg – City Attorney, City of South San Francisco
Krista Martinelli – City Clerk, City of South San Francisco
Page 3 City of South San Francisco Printed on 4/16/2018
January 16, 2018Oversight Board to the Successor
Agency to the former Redevelopment
Agency
Regular Meeting Agenda
Call To Order.
Roll Call.
Pledge of Allegiance.
Agenda Review.
COMMUNICATIONS FROM STAFF
Report regarding transition of Oversight Board to County Oversight Board. (Craig
Labadie, Oversight Board Counsel)
1.
Public Comments.
MATTERS FOR CONSIDERATION
Motion to approve the Minutes from the meeting of December 19, 2017.2.
Report regarding the status of the City of South San Francisco’s Successor Agency to
the former Redevelopment Agency properties (Nell Selander, Deputy Director,
Economic and Community Development Department)
3.
FUTURE AGENDA ITEMS
636 El Camino Real Commercial Space.
Adjournment.
Page 4 City of South San Francisco Printed on 4/16/2018
City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:18-26 Agenda Date:1/16/2018
Version:1 Item #:1.
Report regarding transition of Oversight Board to County Oversight Board.(Craig Labadie, Oversight Board
Counsel)
City of South San Francisco Printed on 1/11/2018Page 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 #:18-14 Agenda Date:1/16/2018
Version:1 Item #:2.
Motion to approve the Minutes from the meeting of December 19, 2017.
City of South San Francisco Printed on 1/11/2018Page 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 #:17-1048 Agenda Date:1/16/2018
Version:1 Item #:3.
Report regarding the status of the City of South San Francisco’s Successor Agency to the former
Redevelopment Agency properties (Nell Selander,Deputy Director,Economic and Community Development
Department)
RECOMMENDATION
Staff recommends the City of South San Francisco Oversight Board to the former Redevelopment
Agency receive a presentation on the status of implementing the approved Long Range Property
Management Plan.
BACKGROUND
In 2011,the California State Legislature enacted legislation to dissolve the State’s 400 Redevelopment
Agencies (“RDAs”).As a result,housing properties owned by the City of South San Francisco Redevelopment
Agency were transferred to the City of South San Francisco (“City”)and the non-housing properties were
transferred to the Successor Agency to the former Redevelopment Agency of the City (“Agency”).
At the time of RDA dissolution,the Agency owned 32 non-housing parcels of real property.The properties are
located within three project areas:Gateway,El Camino Corridor,and Downtown-Central,and they are subject
to the provisions of the City’s Redevelopment Plan,General Plan,and zoning and land use regulations.
Additionally,the properties in the El Camino Corridor Project Area are subject to the El Camino Real/Chestnut
Area Plan,and the properties in the Downtown-Central Project Area are subject to the Downtown Area Specific
Plan.
Preparation of the Long Range Property Management Plan
As required by the California Health and Safety Code Section 34191.5(c),the Agency prepared a Long-Range
Property Management Plan (“LRPMP”)describing the status and disposition plans for each Agency-owned,
non-housing property.In November 2013,the LRPMP was first approved by the Oversight Board for South
San Francisco’s Successor Agency (“Oversight Board”).Subsequently,following a request by the State
Department of Finance (“DOF”)for amendments to the LRPMP,the Agency and Oversight Board approved a
revised version of the LRPMP.On October 1,2015,the amended LRPMP was approved by DOF.The LRPMP
is included as Attachment 1.
The LRPMP contains an inventory of each Successor Agency-owned property.The properties may be
categorized for disposition in one of four ways:
1.Use Property to Fulfill Enforceable Obligation;
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2.Retention of Property for a Governmental Use;
3.Retention of Property for Future Development; or
4.Sale of Property.
The Agency did not categorize any properties as Fulfillment of Enforceable Obligations category and instead
categorized all properties as either Retention of Property for a Governmental Use,Retention of Property for
Future Development, or Sale of Property.
Consistent with the approved LRPMP,on February 8,2017,the City adopted Resolution 16-2017 approving the
transfer of certain Redevelopment Properties from the Agency to the City.On February 21,2017,the Oversight
Board adopted a resolution approving the transfer of the Redevelopment Properties from the Successor Agency
to the City.The Agency and City are now in the process of executing grant deeds to transfer all remaining
Redevelopment Properties to the City in order to carry out the terms of the LRPMP.
Changes to the Oversight Board
In 2015,the State Legislature adopted SB 107 providing clarification of the dissolution process.Specifically,
SB 107 delayed the mandate to consolidate local oversight boards into county-wide oversight boards until
2018.Per SB 107,on July 1,2018,counties with two to 39 local oversight boards will be consolidated into one
county-wide oversight board.On July 1,2018,the City’s Oversight Board will dissolve and be replaced by the
San Mateo County Oversight Board.
DISCUSSION
Due to the impending changes to the Oversight Board,as well as the pace of development within the City,it is
an appropriate time to update the Oversight Board on the implementation of the LRPMP.This report provides a
brief description of all 32 Successor Agency properties and their current disposition status.The properties are
arranged in four categories:(1)Transferred to the City for Governmental Use,(2)Disposition Complete,(3)
Disposition in Progress,and (4)Disposition Forthcoming.For reference,an updated Property Inventory Data
Worksheet,an exhibit to the LRPMP,is included as Attachment 2.In order to facilitate easier reference,the
corresponding number assigned to each property in the Data Worksheet is indicated after the title of each
property below.
Transferred to the City for Governmental Use
The following properties were transferred to the City for public purposes.All of these sites continue to be
operated in full compliance with public use restrictions imposed by the LRPMP.
·Gateway Childcare Center (559 Gateway Boulevard (No.1)).This site continues to serve as the
Gateway Childcare Center, with Peninsula Family YMCA as the current operator.
·Downtown Fire Station (480 North Canal Street (No.9)).This site continues to house the City’s
downtown fire station, Emergency Operations Center, and a training tower.
·Caltrain Station (296 Airport Boulevard (No.10)).Pursuant to the LRPMP,this site has been
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·Caltrain Station (296 Airport Boulevard (No.10)).Pursuant to the LRPMP,this site has been
incorporated into the City’s new Caltrain station,which officially commenced construction on
November 6,2017.Construction should be completed in late 2019,at which time 296 Airport will serve
as a pedestrian plaza and entry point for the bicycle/pedestrian tunnel accessing the Caltrain station
platform.
·Miller Avenue Parking Garage (323 Miller Avenue (No.11)).This site continues to serve as a public
parking garage for the downtown.
·356 Grand Avenue (No.12).This property continues to serve as a pedestrian “breezeway”connecting
Grand Avenue and the Miller Avenue Garage.Currently,about half the width of the property (i.e.,25
square feet)is improved with paving and lighting,while the remaining 25-foot-wide portion is
unsurfaced,vacant and fenced.The City would like to expand the public use to encompass the full
width of this site,which occupies a strategic location on the busiest block in downtown.Accordingly,
the City has been looking at options to activate the unimproved portion of the property.Unfortunately,
due to the site’s narrow dimensions and heavy maintenance needs,it has been challenging to develop a
concept that could be maintained properly and would not be susceptible to vandalism,dumping,or other
nuisance activity.One possible solution would be to consider a small active use consistent with the
public use intent -such as a public space that could host a farmer’s market,outdoor dining,etc.Such an
active use would complement the pedestrian open space,provide activity to make the space more safe
and inviting, and provide revenue to partially offset maintenance costs.
·80 Chestnut Avenue (No.8).This property comprises a portion of land purchased by the Agency from
California Water Service Company (“Cal Water”)on December 21,2007,consisting of a 30,000 sq.ft.
parcel of land with a 3,640 sq.ft.single-story building.The building is occupied by the South San
Francisco Historical Society.The LRPMP identifies the property for public use to expand Orange
Memorial Park,as described in the Orange Memorial Park Master Plan and the South San Francisco
General Plan.
Disposition Complete
The following properties were disposed in accordance with dissolution law:
·Cadence by Sares Regis (315 Airport Blvd.,401 Airport Blvd.,411 Airport Blvd.,421 Airport Blvd.,
405 Cypress Ave.,and 216 Miller Ave.(Nos.22-27)).These properties were assembled for a downtown
residential project,known as Cadence.The properties were transferred to the developer,Sares Regis,on
December 22,2016.Phase 1 of the Cadence project commenced construction in April 2017,and will be
completed in mid-2019 with 260 units.Phase 2 is now in the planning stages and a formal submittal is
anticipated in December 2017, with construction planned to begin in mid-2018.
Disposition in Progress
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The following properties will be disposed in accordance with dissolution law:
·Former PUC Properties (Nos.2-7).These properties were originally purchased from the City/County of
San Francisco and the San Francisco Public Utilities Commission,in order to create a high density
mixed-use development close to BART.Collectively,the 13.2-acre site is known as the “PUC Site.”For
planning purposes,the PUC Site is divided into Parcels A1,A2,A3,B,and C (see Attachment 3).On
July 18,2017,the Oversight Board approved the sale of Parcels A1,A2 and A3 to the City for the
appraised value of $7,180,000,in order to develop the City’s Community Civic Campus project.The
Campus will be primarily funded by Measure W and include the design and construction of new Police
and Fire Stations and a shared Library and Parks and Recreation facility.The property is anticipated to
be transferred to the City in 2018.
The remaining 5.9 acres of the PUC Site (i.e.,Parcels B and C)will be developed as mixed-use
residential.On May 1,2017,the City issued a Request for Qualifications for developer teams;and 12
developers responded.The 12 teams were evaluated by City staff;then by a six-person selection panel
of city and community representatives;and finally by the City’s Joint Housing Subcommittee.As a
result of this in-depth screening process,a short-list of six developer teams have been invited to
continue to the next phase of the selection process,which is a Request for Proposals (“RFP”).The short-
list includes:AGI Avant/KASA Partners;Blake Griggs;Sares Regis;Summerhill Housing Group;
Steelwave;and Republic Metropolitan.Responses to the RFP are due on February 5,2018.The City
hopes to select the developer and enter into an Exclusive Negotiating Rights Agreement (ENRA)in late
March 2018.
·201-207 Grand Avenue and 217-219 Grand Avenue (Nos.15-17).The Agency pursued the acquisition
of these properties to create a half-acre assemblage ideal for a major transit-oriented development in the
Downtown.The City selected a developer,ROEM Development Corporation (“ROEM”),to construct a
mixed-use development on the site in conjunction with a simultaneous development on a City-owned
property on Linden Avenue.The Successor Agency and Oversight Board approved the selected
developer and sale price of $1.2 million for the Grand Avenue properties.Escrow is expected to close in
April-May 2018,as soon as 100 percent construction documents are approved,with construction
commencing shortly thereafter.
·200 Linden Avenue (No.19)and 212-216 Baden Avenue (Nos.19-21).These three parcels have been
assembled into a 0.72-acre site for development.Through a competitive process,the Successor Agency
selected Hisense as the developer;and the Oversight Board approved the sale of the property to Hisense
for $3.5 million.On November 2,2017,the Planning Commission approved Hisense’s plan to build a
97-unit condominium project,with approximately 6,000 sq.ft.of retail.Escrow is anticipated to close in
January-February 2018,with construction beginning shortly thereafter.In preparation for the transfer of
the property, the City has recently relocated its IT Department out of the building.
·938 Linden Avenue (No.28).This long-vacant property includes a 4,000 sq.ft.office building and 19
parking spaces with perimeter landscaping.The City issued a Call for Offers to purchase the site,withCity of South San Francisco Printed on 1/11/2018Page 4 of 6
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parking spaces with perimeter landscaping.The City issued a Call for Offers to purchase the site,with
offers due on November 9,2017.The City received four offers and is currently reviewing them to bring
forward to the Agency Board.Should one of the offers be selected,it will be presented to the Oversight
Board for approval at an upcoming meeting.
·County Health Center (472 Grand Avenue/306 Spruce Avenue and 468 Miller Avenue (Nos.13-14)).
The property located at 306 Spruce Avenue measures 14,000 square feet and contains a three-story
medical facility with an adjacent parking lot.The facility also has a dedicated parking lot at 468 Miller
Avenue.The facility is currently occupied by the County Health Center and Sitike Counseling Center
and satisfies the LRPMP-designated public purpose.The City is actively working with San Mateo
County’s Real Estate Manager in order to finalize the transfer of the property to the County.
Disposition Forthcoming
Disposition has not begun on the following properties:
·227 Grand Avenue (No.18).This is a vacant 3,500 sq.ft.lot that was originally envisioned to be part of
the ROEM mixed-use development at 201-217 Grand Avenue,mentioned above.Unfortunately,the
Agency was not able to purchase 223-225 Grand Avenue,which left this vacant lot isolated from the
rest of the project.In its current state,and under current market conditions,227 Grand Avenue is too
small by itself to accommodate development (as prescribed by the LRPMP).Thus,staff will be
exploring opportunities to pair this property in some way with an adjacent property so that it can be sold
for development.
·616 Linden Avenue (No.30).On February 26,1997,the Agency Board adopted a resolution authorizing
a Purchase and Sale Agreement to acquire 616 Linden Avenue for the development of a performing arts
theater.The arts organization identified by the Agency to develop the theater was unable to raise
sufficient funds to complete the project.The property currently serves as a parking lot with 20 metered
spaces.Environmental conditions stemming from underground petroleum storage tanks that leaked and
contaminated the soil and ground water may require additional mitigation in addition to that which is
expected to occur naturally over time.The property is designated for future development in the LRPMP,
which recommends sale of the property for high-density, transit-oriented development.
·700 Linden Avenue (No.31).The Agency acquired this property on April 14,1997,to serve as a
parking area for the performing arts theater at 616 Linden Avenue and downtown businesses.The
performing arts theater was never realized,and the Agency continues to maintain the property as an
open green space.The Agency believes the automotive uses at 616 Linden Avenue have created a plume
of groundwater contamination that extends to properties nearby,including this property.Although 700
Linden Avenue most likely requires environmental remediation,assembling the parcel with 616 Linden
Avenue and selling them to a developer will achieve the Agency’s goal of providing high-density,transit
-oriented housing development. The property is designated for future development in the LRPMP.
·432 Baden Avenue/429 Third Lane (No.32).On January 8,1997,the Agency Board acquired thisCity of South San Francisco Printed on 1/11/2018Page 5 of 6
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·432 Baden Avenue/429 Third Lane (No.32).On January 8,1997,the Agency Board acquired this
property to develop a public parking lot,which currently provides 16 parking spaces.Because the
property is too small to feasibly accommodate an efficient parking garage or housing development,it is
designated for sale in the LRPMP.
·905 Linden Avenue (No.29).On October 27,1999,the Agency Board acquired this property to remove
blighting conditions and incompatible uses in the project area.The Agency hoped to assemble the
property with neighboring parcels to create a large high-density residential development;however,the
Agency was unsuccessful in assembling neighboring sites.The site is currently open space and is not
near public transportation hubs. The site is designated for future development in the LRPMP.
FISCAL IMPACT
The overall fiscal impact is unknown at this time,but the Successor Agency believes selling the identified
properties for development purposes will produce financial gains to the various taxing entities.
CONCLUSION
Staff continues to pursue disposition of the properties described above in accordance with the LRPMP.As
buyers and/or developers are identified for the remaining sites in need of disposition,the Successor Agency will
present potential purchasers, development plans, and value appraisals to the Oversight Board for consideration.
Attachments:
1.Final Amended Long Range Property Management Plan (LRPMP)
2.LRPMP Property Tracking Worksheet
3.PUC Site Map
4.Presentation
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Amended
Long Range
Property
Management
Plan
Successor Agency to
the South San Francisco
Redevelopment Agency
May 21, 2015
Amended Long Term Property Management Plan
May 21, 2015
1
Introduction
This document constitutes the Long-Range Property Management Plan (LRPMP) of the Successor Agency
(Successor Agency) of the former Redevelopment Agency of the City of South San Francisco (Agency).
The LRPMP was prepared in accordance with Health and Safety Code Section 34191.5 pursuant to ABx1
26 (as amended by AB 1484) (collectively, Redevelopment Dissolution Statutes). The Redevelopment
Dissolution Statutes govern the disposition of the former Agency’s real property. Pursuant to the
Redevelopment Dissolution Statutes, the housing properties were transferred to the City of South San
Francisco (City) and the non-housing properties were transferred to the Successor Agency. The
Successor Agency is now responsible for disposition of the non-housing properties.
The Redevelopment Dissolution Statutes required successor agencies to undergo two detailed Due
Diligence Reviews (DDRs) to determine unobligated fund balances available for transfer to the affected
taxing entities. Upon a successor agency's completion of these requirements, including any required
payment of fund balances, outstanding tax entity passthrough obligations and residual payments, as
applicable, the State Department of Finance (DOF) issues a Finding of Completion (FOC). The Successor
Agency is required to submit to DOF the LRPMP within six months of the issuance of the FOC. The
Successor Agency received its FOC on May 24, 2013; thus the LRPMP is due to DOF by November 24,
2013. Upon approval by the Oversight Board and DOF, the LRPMP governs and supersedes all other
provisions relating to the disposition and use of the former Agency's real property assets.
At the time of its dissolution, the Agency owned 32 non-housing parcels of real property. The properties
are located within the boundaries of the Gateway, El Camino Corridor and Downtown-Central Project
Areas (see Figure A). The properties are subject to the provisions of the Redevelopment Plan, the City of
South San Francisco General Plan and the City's zoning and land use regulations as set forth in City codes
and ordinances. The properties in the El Camino Corridor Project Area are also subject to the El Camino
Chestnut Area Plan. The properties in the Downtown-Central Project Area are subject to the Downtown
Station Area Specific Plan (DSASP) which was adopted on January 28, 2015.
In accordance with Health and Safety Code Section 34191.5(c), Part I of the LRPMP contains an
inventory of specified information related to each of the Successor Agency owned properties. The
property inventory is grouped by project area in the following order: Gateway, El Camino Corridor and
Downtown Central. The following information is required for each of the Successor Agency owned
properties:
a) Acquisition Information
b) Purpose of Acquisition
c) Parcel Data
d) Estimate of Current Value
e) Revenues Generated by Property/Contractual Requirements
f) Environmental Contamination and Remediation
g) Potential for Transit Oriented Development and Advancement of Planning Objectives
h) History of Development Proposals and Activity
Amended Long Term Property Management Plan
May 21, 2015
2
Part II sets forth the proposed plan for the disposition and uses of each of the properties. The
Redevelopment Dissolution Statutes dictate that properties must be categorized for disposition in one
of the following ways:
1. Use Property to Fulfill Enforceable Obligation;
2. Retention of Property for a Governmental Use;
3. Retention of Property for Future Development; or
4. Sale of Property.
Part II of the LRPMP identifies the proposed disposition category for each property owned by the
Successor Agency. In Part II, the property inventory is grouped first by disposition category, then by
project area. Many of the Agency’s properties were acquired for the purpose of assembling parcels into
large developable lots in order to advance the Redevelopment Plan’s goals. In such cases the disposition
strategy will discuss assembled parcels jointly. Finally, in this LRPMP, the Successor Agency has not
categorized any properties under the Fulfillment of Enforceable Obligations category; it has designated
all properties into the remaining three categories.
The LRPMP includes several appendices that provide background information that contributed to the
preparation of this report or that provide supplemental information. Included in the appendices are
Appendix A, the optional DOF tracking worksheet. Appendices B – J provide back up and supporting
documentation discussed throughout the report.
Amended Long Term Property Management Plan
May 21, 2015
3
Amended Long Term Property Management Plan
May 21, 2015
4
Property Inventory
Gateway Project Area
The Agency owns one property in the Gateway Project Area, 559 Gateway, which is currently used as a
childcare center. This section provides all of the required information regarding this property and its
proposed disposition.
1. 559 Gateway Blvd.
On May 28, 2003 the Agency acquired approximately 0.7 acres from Boston Properties for construction
of the Gateway Childcare Center. The acquisition of the property was consistent with the South San
Francisco General Plan (adopted in 1999) and the Gateway Redevelopment Plan for the Project Area as
it furthered the Plan’s goals of providing affordable childcare to the residents of the City and employees
of businesses within the project area. The 30,330 sq. ft. lot includes an 8,300 sq. ft. Childcare Center
building and a 5,000 sq. ft. fenced outdoor play area.
a) Acquisition Information
Based on Restrictive Covenants
transferring the property from
Boston Properties to the Agency
and the recorded deed, the
Agency parcel may only be used
for: a) operation of a child day
care facility; b) a public library; c)
a public office facility as an
amenity to the property. The
Agency elected to build a
childcare center. Upon
construction of the Childcare
Center, Boston Properties
deeded this parcel to the Agency
by means of a Second
Amendment to Declaration of
Covenants, Conditions and Restrictions for Gateway Center (Restrictive Covenants). On May 28, 2003
the Agency Board adopted Resolution 03-2003 accepting the conveyance. Since the Agency is not a
direct service provider, it leased the property to the Peninsula Family YMCA to operate the childcare
center. Several easements are provided for in the Restrictive Covenants, including easements across
and upon the property for utilities, parking, vehicular access, signage and maintenance.
559 Gateway Blvd.
Amended Long Term Property Management Plan
May 21, 2015
5
b) Purpose of Acquisition
The Agency acquired the parcel per the Second Amendment to Declaration of Covenants, Conditions
and Restrictions for the purpose of construction of a childcare center. The childcare center was to serve
residents of the City and employees of businesses within the project area. Boston Properties conveyed
the property to the Agency for $0; the property was conveyed as a condition of development for Boston
Properties’ development.
c) Parcel Data
559 Gateway, APN 015-024-490: This is an irregular shaped parcel (see Appendix B) consisting of 30,330
sq. ft. (0.7 acre) and measures roughly 230 feet by 158.5 feet. The parcel is zoned Gateway Specific Plan
with a General Plan designation of Business Commercial.
d) Estimate of Current Value
There are no current estimates for the value of the land as it was conveyed to the Agency for $0 and is
restricted to public use. Therefore, it has value as a public facility but not for commercial use.
e) Revenues Generated by Property/Contractual Requirements
The Peninsula Family YMCA has a 25 year lease that is renewable in 2029. The annual rent for the
property is waived in order to allow the YMCA to provide childcare subsidies. The Agency, however,
must pay the Gateway Property Owners Association fees of $500 per month.
f) Environmental Contamination and Remediation
There are no known environmental conditions on the property.
g) Potential for Transit Oriented Development and Advancement of Planning Objectives
This property advances the Gateway Redevelopment Plan by providing affordable childcare to residents
and employees of businesses within the project area. The property is restricted in its uses and cannot be
redeveloped into transit oriented housing. However, the site benefits from regional employee shuttle
services, operated by both Genentech and the Congestion Management Relief Alliance, which allow
employees to use the Caltrain and BART stations. The program complies with the City Transportation
Demand Management Ordinance and the General Plan.
h) History of Development Proposals and Activity
The property was developed into a childcare facility in compliance with Restrictive Covenants conveying
the property to the Agency. The property is leased to the Peninsula Family YMCA. No other proposals or
activity have been considered for this property.
Amended Long Term Property Management Plan
May 21, 2015
6
El Camino Corridor Project Area
The Agency owns seven parcels in the El Camino Corridor Project Area (see Figure B). These parcels are
grouped into three property assemblages based on their acquisition history and proposed uses:
Former PUC properties– Five parcels that were purchased from the San Francisco Public Utilities
Commission (PUC) for future development as mixed-use, transit oriented development and
open space.
1 Chestnut Ave– This parcel was purchased to augment the development potential of the
former PUC properties.
80 Chestnut– This parcel was purchased from Cal Water in order to expand the Orange
Memorial Park.
This section provides all of the required information regarding these properties. It begins with a
description of the Agency’s key goals and objectives from the El Camino Corridor Redevelopment Plan
and Five-Year Implementation Plan. These properties were purchased to achieve the goals and
objectives outlined in the El Camino Corridor Redevelopment Plan and Five-Year Implementation Plan as
described below.
The El Camino Corridor Project Area was adopted in 1993 and amended to add area in 2000. El Camino
Real (State Route 82) was the first highway and automobile route through the San Francisco peninsula.
Spanning almost two miles in South San Francisco, the El Camino corridor is the City's most diverse area
in terms of land use, and serves as a major neighborhood commercial center for the City. Commercial
uses such as hotels, fast food restaurants, and shopping centers predominate. All but one of the City's
neighborhood shopping centers is located in the corridor. Residential uses, offices and service
commercial uses are located in small pockets. In addition, the area contains the Kaiser Permanente
Medical Center, the County Government Center, Costco, and the South San Francisco BART station.
The original Redevelopment Plan for the El Camino Corridor Project Area lists the following goals and
objectives of the community redevelopment program in the El Camino Corridor Project Area, which
serve as governing objectives for the property disposition program for this area:1
1. The elimination and prevention of the spread of blight, non-conforming uses and deterioration
and the conservation, rehabilitation and redevelopment of the Project Area in accord with the
General Plan, future specific plans, the Plan and local codes and ordinances, as they now exist or
may hereafter be amended.
2. The achievement of an environment reflecting a higher level of concern for architectural,
landscape, urban design and land use principles appropriate for attainment of the objectives of
the Plan and the General Plan, as they now exist or may hereafter be amended.
1 Redevelopment Plan for the El Camino Corridor Area with 1st amendment ord 1150-94, p. 3
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3. The control of unplanned growth by guiding revitalization, rehabilitation and new
development in such fashion as to meet the needs of the Project, the City and its citizens.
4. The reduction of the City's annual costs for the provision of local services to and within the
Project Area.
5. Increased sales, business licenses and other fees, taxes and revenues for the City.
6. The promotion of new and continuing private sector investment within the Project Area to
prevent the loss of and to facilitate the increase of commercial sales activity.
7. The creation and development of local job opportunities and the preservation of the area's
existing employment base.
8. The development of a spectrum of housing types affordable to various segments of the
community in a manner consistent with the Housing Element of the General Plan and the
provisions of the Redevelopment Law, as they now exist or may hereafter be amended.
9. The elimination or amelioration of existing substandard condition, including substandard
vehicular circulation and parking systems; inadequate infrastructure; insufficient off-street
parking; and other similar public deficiencies adversely affecting the Project Area.
10. The assistance in undergrounding of BART through the project Area to ensure that the
Project Area meets its full development potential upon the removal of existing blighting
conditions.
Furthermore, the 2000 Redevelopment Plan Amendment included the following relevant goals for the El
Camino Corridor Project Area:2
e. Control of unplanned growth by guiding revitalization, rehabilitation and new development in
such a fashion as to meet the needs of the Second Amendment to the Plan, the City of South
San Francisco and its citizens.
i. Promotion of new and continuing private sector investment within the Second Amendment
Area to prevent the loss of and to facilitate the increase of commercial sales activity.
k. Development of a spectrum of housing types affordable to various segments of the community
in a manner consistent with the Housing Element of the General Plan and the provisions of the
Redevelopment Law.
2 The Second Amendment to Redevelopment Plan for the El Camino Corridor Area Ord. 1270-00, pp. 3-4
Amended Long Term Property Management Plan
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l. Carrying out or providing for the carrying out of redevelopment In the Second Amendment
Area in the interest of the general welfare pursuant to Health and Safety Code Sections 33020
and 33021, including planning, development, replanning, redesign, clearance, reconstruction,
and provision of those residential, commercial, industrial, public or other structures or spaces as
may be appropriate, including recreational and other facilities incidental or appurtenant to
them, alteration, improvement, modernization, reconstruction or rehabilitation of existing
structures, provision for open-space types of use such as streets and other public grounds and
space around buildings, public or private buildings, structures and improvements, and
improvement of public or private recreation areas and other public grounds.
Based on these goals and objectives, the Agency has undertaken public infrastructure, public facility,
economic development, property acquisition, and affordable housing activities in the El Camino Corridor
Project Area. The City and Agency expanded the City’s largest park, Orange Memorial Park by creating a
linear park that connects the BART station to the original park. Redevelopment also supported the
Specific Plan process for high density, transit-oriented development (TOD) in the BART station area and
has helped catalyze mixed-used development in that area.
Five-Year Implementation Plan
The Five-Year Implementation Plan describes the goals and objectives for redevelopment activities in
each of the project areas (based on the goals and objectives in the respective Redevelopment Plans) and
presents specific programs and expenditures that would be undertaken. For the El Camino Corridor
Project Area, the Implementation Plan states the following goals and objectives that are directly
relevant to the development of properties that are owned by the former redevelopment agency
(excerpted from pages I-7 to pages I-8 of the Implementation Plan):3
Eliminate and prevent the spread of blight, non-conforming uses and deterioration and conserve,
rehabilitate and redevelop the Project Area in accordance with the General Plan, future specific
plans, the Plan and local codes and ordinances.
Achieve an environment reflecting a higher level of concern for architectural, landscape, urban
design and land use principles appropriate for attainment of the objectives of the Plan and the
General Plan.
Control unplanned growth by guiding revitalization, rehabilitation and new development in such
fashion as to meet the needs of the Project, the City and its citizens.
Promote new and continuing private sector investment within the Project Area to prevent the
loss of and to facilitate the increase of commercial sales activity.
3 See page I-7 to I-8, South San Francisco Redevelopment Agency, Five-Year Implementation Plan, FY 2009/10–FY 2013/14.
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Develop a spectrum of housing types affordable to various segments of the community in a
manner consistent with the Housing Element of the General Plan and the provisions of the
Redevelopment Law.
Eliminate or ameliorate existing substandard conditions, including substandard vehicular
circulation and parking systems, inadequate infrastructure, insufficient off-street parking, and
other similar public deficiencies adversely affecting the Project Area.
Present and create civic, cultural and educational facilities and amenities as catalysts for area
revitalization.
Upgrade and expand recreational areas and open space.
Develop more east-west crossings on El Camino Real that connect the City’s neighborhoods, and
a continuous parallel street on the eastside to provide alternative travel routes.
Encourage development of a mix of uses, with pockets of concentrated activity that provide
focus and identity to the different parts of El Camino Real.
Develop the South San Francisco BART station area as a vital pedestrian-oriented center, with an
intensity and mix of uses that complement the area’s new role as a regional center.
Increase opportunities for regional and neighborhood commercial uses
Extend Centennial Way along BART alignment and create east-west connections between
El Camino and the neighborhoods.
Enhance pedestrian and bicycle connectivity around existing facilities such as Kaiser, Orange
Memorial Park and the Municipal Services Building as well as new public facilities such as a new
library.
Make improvements along Colma Creek Canal, including bank improvements, landscaping and
removal of chain link fencing.
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2-6. Former PUC Properties
APN 093-312-050, 093-312-060, 093-331-050, 093-331-060 and 011-326-030
Following the purchase of the former PUC properties, the City embarked on preparing an area wide plan
for the northerly portion of El Camino Real between Chestnut Avenue and the SSF BART station. The
central aim of the plan is to develop the area into a vibrant high density mixed-use neighborhood
allowing for improved auto access as well as attractive and accessible bicycle, pedestrian and open
space connections. Located in the geographic heart of South San Francisco, the former PUC properties
were acquired by the Agency in order to redevelop them into new mixed-use, transit-oriented
developments that would create a vibrant Transit Village district within South San Francisco. The
properties are advantageously located at the City’s busiest crossroads at Chestnut Avenue and El
Camino Real. They are located in close proximity to the South San Francisco Bay Area Rapid Transit
(BART) Station and the City’s Transit Village Zoning District just north of the properties. The properties
are also near key public amenities including Orange Memorial Park, the Centennial Way pedestrian and
bike trail and the Municipal Services Building. The properties are adjacent to the right-of-way for the
underground BART.
PUC Properties
The PUC properties are currently vacant, offering the opportunity to structure development,
connections and open space in an integrated manner. Centennial Way—a bicycle and pedestrian trail
within the Colma Creek and BART rights of-way that run through the length of the site —will be
extended along the portion of the BART right-of-way between Chestnut Avenue and Colma Creek. This
trail network will provide an important direct connection between the South San Francisco BART Station
to the north and Orange Memorial Park to the south. Pedestrian and bicycle paths will connect new
development and surrounding neighborhoods to the Centennial Way spine. Buildings, parks, and plazas
will be oriented to the open space network to maximize access to and visibility of these amenities.
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a) Acquisition Information
In March 2006, the Agency Board approved a Purchase and Sale Agreement between the Agency and
the City and County of San Francisco (CCSF)/San Francisco Public Utilities Commission to purchase
approximately 21.3 acres of property. In July 2007, the Agency amended the Purchase and Sale
Agreement to reduce the amount of property being purchased to 13.2 acres for a reduced price of
$21,060,000. The purchase and sale was completed and the property was transferred to the Agency on
January 31, 2008.
b) Purpose of Acquisition
The South San Francisco BART Station created new opportunities for innovative planning along El
Camino Real. With the adoption of the South San Francisco General Plan in 1999, the City Council
recognized that the SSF BART Station area could be a new activity node that would serve local residents
and attract visitors. Specific to the El Camino Real Corridor, the City has: 1) adopted the SSF General Plan
which encourages transit oriented development; 2) implemented the SSF BART Transit Village Plan and
Ordinance; 3) prepared plans to extend Oak Avenue from Mission Road to El Camino Real; 4)
constructed the majority of Centennial Way over the BART-SFO right-of-way; and 5) purchased a total of
14 acres of vacant land from the San Francisco Public Utilities Commission and Ron Price Motors to
ensure high quality mixed use development. The most recently approved housing projects include Park
Station at 1200 El Camino Real (99 units), the Mid-Peninsula Housing Project at 636 El Camino Real (109
affordable units and 5,700 sq. ft. of commercial space), and the newly approved Mission & McLellan
project at 1309 Mission Road (20 units and 6,000 sq. ft. commercial). The City’s planning effort is
consistent with regional efforts to promote Transit Oriented Development and is governed by the
following planning and policy documents:
The Grand Boulevard Initiative (advisory document only)
The Grand Boulevard Initiative is a collaboration of 19 cities, counties, local and regional agencies to
improve the performance, safety, and aesthetics of El Camino Real and to provide coordinated planning
for the entire corridor.
El Camino Real Master Plan
In 2007, the City adopted the El Camino Real Master Plan with the goal to “develop El Camino as a
boulevard that accommodates its role as a regional corridor but with streetscape and development that
provide identity to the street.”
South San Francisco General Plan Housing Element
The Housing Element, updated in June 2009, contains an analysis of the community’s housing needs,
resources, constraints, and opportunities. The Housing Element identifies several housing sites within
the Planning Area and estimates that these sites can accommodate approximately 549 housing units at
the existing zoning and development standards.
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El Camino Real/Chestnut Area Plan (2011)
The City adopted a General Plan Amendment, Zoning Changes and Design Guidelines to permit high-
density, mixed-use development along the El Camino Real Corridor. The purpose of the Amendment is
to recognize the El Camino Real corridor as a strategic location in the city – the area is well served by
schools, transit, and existing infrastructure – by replacing older policies and regulations, which promote
low-intensity, auto-oriented single-use activity, with policies and regulations that target higher
intensities and mixed-use development.
Given this planning context, the Agency purchased these properties to create a new walkable,
distinctive, mixed-use district at the geographic center of South San Francisco. A network of open spaces
will form the armature of new development. New streets and pedestrian connections will extend
through the area, enabling easy movement on foot. The BART right-of-way that extends through the
length of the Planning Area will be transformed into a linear park and a pedestrian-oriented “Main
Street,” lined with restaurants, cafés and outdoor seating in a portion of the right-of-way. Development
will be at high densities, reflecting adjacent transit access. The plan envisions a new neighborhood of up
to 4,800 residents housed in low- to high-rise buildings. It will provide a range of commercial uses;
walking access to everyday amenities; new civic uses, potentially including a new City Library; parks,
plazas, and gathering spaces for the entire South San Francisco community.
c) Parcel Data
Former PUC Parcels APN 093-312-050, 093-312-060, 093-331-050, 093-331-060 and 011-326-030: These
properties consist of various irregular shaped parcels encompassing 13.2 acres. The parcels are zoned
according to a blend of development intensity as dictated by the El Camino Real/Chestnut Avenue Land
Use Plan. The designations include High Density Residential, El Camino Real Mixed Use North, El Camino
Real Mixed Use North High Intensity, El Camino Real Mixed Use North Medium Intensity and Public Use.
Parcel 011-326-030 is a vacant site of approximately 1.9 acres. It is a well exposed corner lot with
extensive frontage along east side of El Camino Real and along Chestnut Avenue. However, it suffers
from extreme grade variance dropping precipitously from the El Camino frontage to the rear of the
property.
Parcels 093-312-060 and 093-312-050 are vacant lots of approximately 7.6 acres. They have extensive
frontage along Mission Road but are also bisected by Colma Creek and the proposed Oak Avenue
extension.
Parcels 093-331-050 and 093-331-060 are two narrow, landlocked lots running behind properties
facing El Camino Real between Orange Avenue and Chestnut Avenue. This corridor now serves as a
linear park. It also contains a 21,000 sq. ft. building next to Orange Park that is occupied by the Boys
and Girls Club. These lots are approximately 3.7 acres.
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d) Estimate of Current Value
The Successor Agency has only had parcel 011-326-030 recently appraised. Given the challenging
development conditions that exist on this parcel, the appraisal dated September 9, 2013 by DANA
Property Analysis estimates the value of the property to be $970,000 ($15.16/sq. ft.), see Appendix C.
The value of the remaining parcels as currently configured is difficult to assess because sub-areas within
each parcel can have widely varying values depending on their accessibility, potential for development
and the presence of hazardous materials. A better understanding of the value of these properties can be
derived from the disposition section of this report where the properties are subdivided and/or
assembled into developable lots.
e) Revenues Generated by Property/Contractual Requirements
All parcels are vacant and undeveloped with the exception of a 21,000 sq. ft. building on parcel 093-331-
060. The building is rented to the Boys and Girls Club under a “Revocable Permit” that has existed
between the PUC and the Boys and Girls Club since 1958 and prior to the Agency’s acquisition of the
property. The Agency assumed the Revocable Permit when it acquired the property. The Revocable
Permit between the Agency and the Boys and Girls Club contains the following provisions: 1) no rent, 2)
the buildings are considered to be temporary and can be demolished at the Boys and Girls Club expense,
3) the Boys and Girls Club must maintain liability insurance, 4) the Permit has no sunset clause and can
be revoked at any time.
f) Environmental Contamination and Remediation
The Agency conducted Phase I and Phase II assessments and found parcel 011-326-030 has several
adverse environmental conditions. See Appendix D for a complete listing of these conditions. The Phase
I report indicates the remaining parcels do not have adverse environmental conditions.
g) Potential for Transit Oriented Development and Advancement of Planning Objectives
Sitting along El Camino Real and in close proximity to the BART station, the former PUC properties are a
perfect example of land suitable for transit oriented development. This proposed efficient use of land
creates a pedestrian oriented, walkable area close to transit that is part of the City’s ongoing effort to
promote integrated planning and development based on sustainability principles and practices. The
vision for the Planning Area is one of “smart growth,” enhanced by policies and design guidelines that
ensure sustainable measures such as access to transit and green building
h) History of Development Proposals and Activity
Prior to the acquisition by the Agency, the PUC had not considered any development proposals that
resulted in any significant development activity or review by the City.
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7. 1 Chestnut Avenue
The Agency purchased 1 Chestnut Avenue as an essential property in the implementation of the
Redevelopment Plan for the El Camino Project Area. This property is necessary to achieving the Agency’s
development goals and to completing the redevelopment of the PUC properties. The property, which at
the time housed Ron Price Motors, was acquired on January 8, 2008. Upon acquisition, the Agency
leased the property back to Ron Price Motors for a period of three years. However, Ron Price Motors
vacated the property prior to the end of the lease. The building was then partially leased to Green
Builder’s Exchange from 2008 to 2009. The property is currently leased to Red Cart Market, Inc., doing
business as Pet Club Stores, Inc.
a) Acquisition Information
The Agency acquired the property on January 11, 2008 by Grant Deed. The purchase price of $6,500,000
was based on the valuation provided by DANA Property Analysis, dated October 3, 2007.
b) Purpose of Acquisition
The Agency purchased this property because it is essential for the development of the former PUC
Properties (see page 12) and the implementation of the Redevelopment Plan for the El Camino Project
Area. For a complete description of the purpose of this acquisition, see page 13, part b) discussing the
PUC properties.
c) Parcel Data
1 Chestnut, APN 011-322-030: This is a parcel consisting of 1.65 acre or 72,000 sq. ft. with a 27,000 sq.
ft. building (see Appendix B). The parcel is zoned El Camino Real/Chestnut Avenue Area, Mixed Use High
Intensity.
1 Chestnut Avenue 1 Chestnut Avenue
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d) Estimate of Current Value
The property has recently been appraised twice due to negotiations with PG&E as it was considering
acquiring the rights to locate a gas line through a portion of the property. Based on the two appraisals,
the value of the property is between $4,034,525 and $4,841,000. PG&E’s appraiser, Patrick Idiart and
Associates, estimated the property’s value as $4,034,525 ($55/sq. ft.) in an appraisal dated May 11,
2012. The Successor Agency appraiser, DANA Property Analysis, estimated a value of the property at
$4,841,000 ($66/sq. ft.) in a report dated May 11, 2012. For the purposes of this report, it assumed the
property value is the average of the two appraisals $4,438,080 ($61.64/sq. ft.).
e) Revenues Generated by Property/Contractual Requirements
On January 8, 2013, a lease was executed with Red Cart Market, Inc., doing business as Pet Club Stores,
Inc. The term of the lease with Pet Club is three years (36 months) at a gross rate of $37,519 per month,
with an option to extend the lease for an additional 12 months. A $500,000 tenant improvement
allocation to Pet Club from the Successor Agency/Oversight Board includes a pay back of $13,899 per
month for three years resulting in a net rent of $23,620/month.
f) Environmental Contamination and Remediation
On December 3, 2007, CSS Environmental submitted results of a Phase I and limited Phase II evaluation,
including soil samples, concluding that no recognized environmental condition was found at the subject
property.
g) Potential for Transit Oriented Development and Advancement of Planning Objectives
Sitting along Chestnut Avenue in close proximity to El Camino Real and the South San Francisco
BART station, 1 Chestnut is ideal for transit oriented development. This proposed efficie nt use of
this property and the PUC properties creates a pedestrian oriented, walkable area close to transit
that is part of the City’s ongoing effort to promote integrated planning and development based on
sustainability principles and practices. The vision for the Planning Area is one of “smart growth,”
enhanced by policies and design guidelines that ensure sustainable measures such as access to
transit and green building.
h) History of Development Proposals and Activity
At the time of acquisition the property housed Ron Price Motors. The property is currently leased to Red
Cart Market, Inc., doing business as Pet Club Stores, Inc. Since it acquired the property, the Agency has
not considered any development proposals.
8. 80 Chestnut Avenue
This property comprises a portion of APN 011-324-190 purchased from California Water Service
Company (Cal Water) on December 21, 2007. It consists of a 3,640 square foot single-story building and
site improvements on a 30,000 square foot parcel of land. The building is occupied by the South San
Francisco Historical Society and consists of 1,950 square feet of office space and 1,690 square feet of
industrial warehouse space. The building will remain and the Historical Society will continue to occupy
Amended Long Term Property Management Plan
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the space until Cal Water is able to sell additional property to the City, at which time a proposed park
expansion will proceed. Site improvements include a paved driveway, a 10-space parking lot, and
landscaping. The quality and condition of the improvements are average.
a) Acquisition Information
The Agency purchased the site in December 2007 for $1,100,000 after Cal Water devised a plan to break
up the 6.86 acre parcel into five separate parcels in order to accommodate the City’s desire to purchase
the site. By dividing the parcel, Cal Water was able to sell the portion containing the building at 80
Chestnut immediately to the Agency.
b) Purpose of Acquisition
The property was purchased in order to improve the property as a park. In December 2006, the City
updated the Orange Memorial Park Master Plan and the South San Francisco General Plan (Park and
Recreation Element). The planning process included the goal of expanding the Orange Memorial Park
into the Cal Water site. Initially Cal Water had indicated it would consider selling the entire 6.86 acre
parcel to the Agency. However, Cal Water decided it would retain the northwestern portion of the
parcel to continue its water service operation. Subsequently, Cal Water devised a plan to break up the
land into various parcels to accommodate the City’s interest in expanding Orange Memorial Park.
Splitting the land into five parcels allowed Cal Water to retain the land it needs and sell the portion
containing the building immediately to the Agency. Cal Water plans to sell additional sub-area parcels to
the City in the future to complete the expansion of the park.
c) Parcel Data
80 Chestnut, portion of APN 011-324-190: This is an irregular shaped parcel consisting of 30,330 sq. ft.
(0.7 acre), see Appendix B. The parcel is zoned Public/Quasi-Public.
80 Chestnut Avenue
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d) Estimate of Current Value
There are no current estimates for the value of the land as it is restricted to public use. Therefore, it has
value as a public facility but not for commercial uses.
e) Revenues Generated by Property/Contractual Requirements
The property is leased to the South San Francisco Historical Society for $1 per year. The term of the
lease is for one year and renews automatically each year until April 1, 2033 unless either lessor or lessee
terminates the lease with 90 day notice.
f) Environmental Contamination and Remediation
There are no known environmental conditions on the property.
g) Potential for Transit Oriented Development and Advancement of Planning Objectives
Because the parcel is zoned Public/Quasi Public it has no potential for transit oriented development.
h) History of Development Proposals and Activity
The property was owned by Cal Water to operate wells providing water. Cal Water did not entertain any
development proposals or activity.
Downtown Central Project Area
The Agency owns several parcels in the Downtown Central Project Area (see Figure C, page 22). This
section provides all of the required information regarding these properties. It begins with a description
of the Agency’s key goals and objectives from the Downtown Central Redevelopment Plan and Five-Year
Implementation Plan. The properties in Downtown Central Project Area were acquired to achieve these
goals and objectives outlined in the Redevelopment Plan and Five-Year Implementation Plan and are
described below.
Downtown Central Redevelopment Plan
The Downtown Central Project Area was adopted in 1989 and amended to add area in 2005. Downtown
Central includes the oldest commercial and residential areas of the City—the Grand Avenue commercial
district and adjoining residential areas. It also includes a large, formerly industrial area east of Highway
101 that is currently developed as a mix of office, industrial and biomedical research and development
facilities. The original Redevelopment Plan for the Downtown Central Project Area lists following goals
and objectives of the community redevelopment program in the Project Area:
1. To expand the retail component of the Downtown, providing diversification of offerings and
encouraging major outlets as a draw to new shoppers.
2. To continue support of the various cultural and civic uses which provide major anchors,
stressing special events which draw new attendees.
3. To promote the area as the financial hub, encouraging existing institutions to expand both
physically and with related services.
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4. To eliminate blight through abatement or code compliance, reconstruction and assembly of
parcels into more developable sites for more desirable uses.
5. To improve public parking, other public facilities, services, utility lines, lighting, public safety
and public transportation.
6. To create a pedestrian environment to encourage multiple stops by visitors and more frequent
visits to Downtown.
7. To emphasize and highlight the existing architectural style and scale through rehabilitation
and renovation of historic structures and encouraging infill developments that relate to existing
structures.
8. To expand and upgrade the housing opportunities in the community to eliminate blight and
improve housing stock and standards for the present population.
9. To promote new and continuing private sector investment within the Project Area to prevent
the loss of and to facilitate commercial and industrial activity.
10. To achieve an environment reflecting a high level of concern for architectural, landscape, and
urban design and land use principles appropriate to attainment of the objectives of the
Redevelopment Plan.
11. To retain and expand as many existing businesses as possible by means of redevelopment
and rehabilitation acclivities and by encouraging and assisting the cooperation and participation
of owners, businesses and public agencies in the revitalization of the Project Area.1
12. To provide for increased sales, business license, and other fees, taxes, and revenues to the
City of South San Francisco.
13. To encourage maximum participation of residents, business persons, property owners, and
community organizations in the redevelopment of the Project Area.
14. To create and develop local job opportunities and to preserve the area's existing employment
base.
15. To replan, redesign and develop areas which are stagnant or improperly used.
16. To reduce the City's annual costs of providing of Iocal services to and within the Project Area.
Five-Year Implementation Plan
As noted earlier, the Five Year Implementation Plan describes the goals and objectives for
redevelopment activities in each of the project areas (based on the goals and objectives in the
respective Redevelopment Plans) and presents specific programs and expenditures that would be
undertaken. For the Downtown Central Project Area, the Implementation Plan states the following goals
and objectives that are directly relevant to the development of properties that are owned by the Agency
(excerpted from pages I-5 to pages I-6 of the Implementation Plan):
Expand the retail component of the Downtown, provide diversification of offerings and
encourage major outlets as a draw to new shoppers.
Continue support of the various cultural and civic uses that provide major anchors, stressing
special events that draw new attendees.
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Promote the Downtown area as the financial hub of South San Francisco, encouraging existing
institutions to expand both physically and with related services.
Eliminate blight through abatement or code compliance, reconstruction and assembly of parcels
into developable sites for desirable uses.
Improve public parking, other public facilities, services, utility lines, lighting, public safety and
public transportation.
Emphasize and highlight the existing architectural style and scale through rehabilitation and
renovation of historic structures and encouraging infill development that relates to existing
structures.
Expand and upgrade the housing opportunities in the community to eliminate blight and improve
housing stock and standards for the present population.
Promote new and continuing private sector investment within the Project Area to prevent the
loss of and to facilitate commercial and industrial activity.
Achieve an environment reflecting a high level of concern for architectural, landscape, and urban
design and land use principles appropriate to attainment of the objectives of the Redevelopment
Plan.
Replan, redesign and develop areas that are stagnant or improperly used.
Promote Downtown’s vitality and economic well-being, and its presence as the City’s center.
Encourage development of Downtown as a mixed use activity center with retail and visitor-
oriented uses, business and personal services, government and professional offices, civic uses,
and a variety of residential types and densities.
Provide incentives for infill development, intensification and reuse of currently underutilized
sites.
Enhance linkages between Downtown and transit centers, and increase street connectivity with
the surrounding neighborhoods.
Provide new or improved parks, open spaces, and recreational facilities.
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9. 480 North Canal
On November 12, 2003, the Agency Board adopted a resolution authorizing a Purchase and Sale
Agreement for acquisition of the property and improvements located at 480 North Canal in the amount
of $3.65 million using redevelopment bond funds. In
1998, the City had conducted an assessment of the
Downtown Central Fire Station and concluded that
the existing building could not be seismically
upgraded to conform to current building code
standards. In June of 2002, the Black Mountain
Water Company vacated the property at 480 North
Canal and the owner listed the property for sale. The
City determined that the facility’s configuration was
well suited to house the City’s downtown area fire
station and made an offer on the property.
a) Acquisition Information
On November 12, 2003, the Agency authorized the purchase of the property and improvements located
at 480 North Canal for $3.65 million. The property was conveyed to the City on April 28, 2004. The
Agency used tax exempt bond funds to acquire the property as a public facility.
b) Purpose of Acquisition
The Agency acquired the property to house the City’s downtown fire station after the City had
determined the Central Fire Station could not be seismically upgraded. The City determined it could also
locate the City’s Emergency Operations Center and a training tower on the site. Consolidation of these
facilities allowed the City to better serve the Downtown Project Area and the City at large. The property
serves the Redevelopment goal of improving public facilities and public safety
c) Parcel Data
480 N. Canal, APN 014-061-110: This is a 1.7 acre property (approximately 75,260 sf. ft.). This irregular
parcel measures 294 feet by 265 feet (see Appendix B). The parcel is zoned Public/Quasi Public and is
designated Mixed Industrial per the General Plan.
d) Estimate of Current Value
The property has not been appraised recently. Its estimated value is the acquisition price of $3.65
million.
e) Revenues Generated by Property/Contractual Requirements
The parcel houses Fire Station 61, the Emergency Operations Center (EOC) and Fire Training Tower. At
this time the three uses on the property do not generate any revenue. There are no contractual
agreements associated with this property.
480 North Canal
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f) Environmental Contamination and Remediation
There are no known environmental conditions on the property.
g) Potential for Transit Oriented Development and Advancement of Planning Objectives
The property is used for public purposes and is not suitable for transit oriented development. Placing
the fire station at this site advanced the Redevelopment Plan’s goal of improving public facilities and
public safety.
h) History of Development Proposals and Activity
The property serves the public goal and redevelopment goal of improving public facilities and public
safety. No other development proposals or activity are being considered for this property.
10. 296 Airport Blvd.
The Agency Board approved a Purchase and Sale Agreement, on December 9, 2009, pursuant to Agency
Resolution 25-2009, to acquire a portion of the State Department of Transportation (DOT) property,
known as the Sales Parcel. The
property was acquired to expand
the Caltrain station platform and
make related public pedestrian
access improvements. DOT has a
recorded access easement for
maintenance of the freeway from
Grand Avenue towards the center
of the site, along an established
access road.
a) Acquisition Information
The purchase price, based on an
appraised value of $1,300,000, was
discounted by $537,000, due to the
estimated cost required for the
clean-up of toxic materials found on
the site. The final acquisition price
was therefore $763,000. The
property was conveyed to the
Agency on January 28, 2010,
subject to the DOT access
easement.
296 Airport Blvd.
Amended Long Term Property Management Plan
May 21, 2015
24
b) Purpose of Acquisition
The property was acquired to extend the Caltrain station platform and make related public pedestrian
access improvements from the station’s current location to this site. The goal is to promote transit
oriented development pursuant to the Agency’s Five Year Goals and its Implementation Plan for the
Downtown/Central Project Area. The Agency Board made the requisite findings of fact under Health
and Safety Code Section 33445 for use of redevelopment funds for publicly-owned improvements.
c) Parcel Data
296 Airport, APN 012-338-160: This parcel consists of 0.6 acre or 24,325 sq. ft. The parcel is zoned
Public/Quasi Public.
d) Estimate of Current Value
The property has not been recently appraised. Its estimated value is the discounted value of $763,000
due to adverse environmental conditions.
e) Revenues Generated by Property/Contractual Requirements
The property is vacant, unimproved land and does not generate any revenue. There are no contractual
requirements associated with this property.
f) Environmental Contamination and Remediation
A Purchase and Sale Agreement indicates that hazardous materials exist on the Sales Parcel and that the
property was conveyed in “as is” condition. The Agency assumed the responsibility for the abatement of
all hazardous materials on site. An environmental consultant estimated the cost of remediation would
be $537,000. The purchase price, based on an appraised value of $1,300,000, was discounted by this
amount.
Caltrain Station Improvements – Conceptual Plans
Amended Long Term Property Management Plan
May 21, 2015
25
g) Potential for Transit Oriented Development and Advancement of Planning Objectives
The parcel is zoned for Public/Quasi Public use and is an integral part of advancing transit oriented
development for the entire downtown area.
h) History of Development Proposals and Activity
The City has prepared full plans for the extension of the train platform, expansion of the pedestrian
entryway to the train station, and all associated public amenities for this site. Work on the project was
ready to commence but was delayed due to planning for the Bullet Train and the electrification of
Caltrain.
11. 323 Miller Avenue
The Successor Agency owns the property at 323 Miller Avenue and the City of South San Francisco owns
three adjacent parcels of land at 329 Miller Avenue. Together these properties house the City’s new
downtown parking structure. On December 13, 2006, the Agency Board adopted a resolution
authorizing execution of a Purchase and Sale Agreement for acquisition of the property at 323 Miller
Avenue, in the amount of $700,000. The Agency’s intent was to maintain the existing affordable
residential units until the City constructed the parking structure. The property was conveyed to the
Agency by Grant Deed on March 14, 2007. Subsequently, the residential duplex was demolished and the
property was incorporated into the parking structure. The parking structure is now a critical component
of the City’s Parking District.
Former Residential Duplex
Parking Structure
South San Francisco Downtown Parking Map
Amended Long Term Property Management Plan
May 21, 2015
26
a) Acquisition Information
On December 13, 2006, the Agency adopted a resolution authorizing execution of a Purchase and Sale
Agreement for purchase of real property in the amount of $700,000. The property was conveyed to the
Agency by Grant Deed on March 14, 2007.
b) Purpose of Acquisition
The Agency purchased this property with the intent of combining it with three City owned parcels to
build a parking structure for the downtown. The Agency maintained the affordable residential units
until the City was ready to construct the parking structure. Subsequently, the residential duplex was
demolished and the real property was incorporated into the parking structure developed on the site.
The property now houses the easternmost area of the structure which contains the elevator shaft.
c) Parcel Data
323 Miller Avenue, APN 012-312-070: This 3,500 sq. ft. lot measures 25 feet by 140 feet. The parcel is
zoned Downtown Core.
d) Estimate of Current Value
The property value cannot be separated from the parking structure improvements and adjoining
parcels. The unimproved land value in the downtown is estimated at $80/sq. ft. The value of this
property without improvements is estimated to be approximately $280,000.
e) Revenues Generated by Property/Contractual Requirements
It is difficult if not impossible to precisely estimate the revenue generated solely by the parking spaces
existing over the former RDA property since the parking garage extends over City and Successor Agency
properties and functions as one project. For the entire Miller Avenue Parking Garage the Parking District
generated $108,000 gross revenue in FY 2013-14. Of the 255 parking stalls in the garage, approximately
40 stalls sit over the former RDA property (15.6%). A very crude approximati on would be 15.6% of
revenue totaling $16,900. It should be noted, however, that net revenue from the property is $0 since
the Miller Avenue Parking Garage functions at a deficit and the Parking District as a whole must
subsidize the Miller Avenue Parking Garage.
f) Environmental Contamination and Remediation
There are no known environmental conditions on the property.
g) Potential for Transit Oriented Development and Advancement of Planning Objectives
The property is now occupied by a multi-story public parking structure. It serves the Downtown Transit
Oriented Development Area. The parking garage helps the City achieve transit oriented development
goals in Downtown SSF through higher density in-fill residential projects in existing surface parking lots. .
It also provides public parking to visitors of nearby government facilities and patrons of downtown
businesses.
Amended Long Term Property Management Plan
May 21, 2015
27
h) History of Development Proposals and Activity
The Agency maintained the affordable residential units at 323 Miller Avenue until the City constructed
the parking structure. The property now houses the easternmost end of the parking structure which
contains the elevator shaft and a small amount of unimproved commercial space.
12. 356 Grand Avenue
On February 10, 2010, the Agency approved the expenditure of tax increment funds to purchase this
property. For many years the property housed a market. The downturn of the economy made it
increasingly difficult for the owner to maintain the market in good condition and several businesses
failed on the site. The Agency secured an appraisal and made offers to the owner over several years
until the owner agreed to sell the property in 2010. The Agency purchased this property to provide a
pedestrian connection from the parking structure directly onto Grand Avenue, the City’s main
commercial street.
Breezeway at 365 Grand Avenue
a) Acquisition Information
On February 10, 2010, the Agency adopted a resolution authorizing the execution of a Purchase and Sale
Agreement with David Tsui for $1.7 million.
b) Purpose of Acquisition
The rear of the property on Grand Avenue is strategically located directly across from the new parking
structure on Miller Avenue. The Agency purchased this property to provide a pedestrian connection
from the parking structure directly onto Grand Avenue, the City’s main commercial street. This
acquisition and the development of the pedestrian breezeway facilitated the movement of downtown
visitors from the parking structure into the commercial area. The improvement advances the
Redevelopment Plan goal of eliminating blighted conditions, increasing economic activity, improving
pedestrian circulation, and encouraging further development in the surrounding area.
Amended Long Term Property Management Plan
May 21, 2015
28
c) Parcel Data
356 Grand Avenue, APN 012-312-300: This 7,000 sq. ft. (0.16 acre) lot measures 50 feet by 140 feet. The
parcel is zoned Downtown Core. The breezeway connection utilizes half of the property and the other
half is vacant, unimproved land.
d) Estimate of Current Value
The unimproved land value in the downtown is estimated at $80/sq. ft. The value of this property
without improvements is estimated to be approximately $560,000.
e) Revenues Generated by Property/Contractual Requirements
The property is vacant, unimproved land and does not generate any revenue. There are no contractual
requirements associated with this property.
f) Environmental Contamination and Remediation
There are no known environmental conditions on the property.
g) Potential for Transit Oriented Development and Advancement of Planning Objectives
The property is located within a transit oriented planning area and has the potential to be developed
into a transit oriented development. However, its current use as a public breezeway between the
parking structure and Grand Avenue is important to creating economic vitality by facilitating the
movement of shoppers into the commercial center. Half of the property can still be developed but
because of its size it is more likely to be developed into retail space.
h) History of Development Proposals and Activity
The Agency acquired the property in 2010. Upon acquisition the Agency demolished the blighted
building on the property that had housed several failed markets. Other than the construction of the
pedestrian breezeway no other plans have been considered for the property.
13. 472 Grand Avenue/306 Spruce Avenue
This property is a 14,000 square foot parcel
containing a three story medical facility building
and an adjacent parking lot. The facility also has a
dedicated parking lot at 468 Miller Avenue. The
basement level of the building contains vacant
office space, the building’s mechanical systems
(electrical, fire alarms, HVAC and boiler) and
restrooms. The San Mateo County Health Center
occupies the second floor and Sitike Counseling
Center occupies the first floor. The roof of the
building contains cell tower equipment installed
by Sprint and the building’s exhaust fans.
472 Grand Ave/306 Spruce Ave
Amended Long Term Property Management Plan
May 21, 2015
29
The County Health Center is a primary care medical facility that is part of the San Mateo Health System
and is funded by the County of San Mateo. The health center consists of exam rooms, a large office area,
counseling rooms, a lobby, a computer server room, a meeting room, kitchen, and two (men’s and
women’s) accessible restrooms. The County Health Center lease includes five (5) parking spaces in the
adjacent lot and eleven (11) spaces in the lot at 468 Miller Avenue.
Sitike is a private nonprofit agency and is funded by foundations, the County, the State of California and
private individual donations. Sitike’s tenant space is partitioned into office spaces, counseling rooms,
entry lobby, kitchen, child care facility, two accessible restrooms, and access to an outdoor patio. The
Sitike lease includes four (4) on-site parking spaces and seven (7) spaces at the parking lot located at 468
Miller Avenue.
a) Acquisition Information
On November 12, 1997, the Agency Board adopted Resolution of Necessity 16-97, finding that the public
necessity required the acquisition of the real property located at 472 Grand Avenue/306 Spruce Avenue
and 468 Miller Avenue. The City had previously made offers to purchase the property for its appraised
value. However, the Agency could not reach an agreement with the property owner. Therefore, the
Agency’s resolution authorized the City Attorney to conduct an action in eminent domain for the
acquisition of the property.
b) Purpose of Acquisition
The Agency acquired the building and the parking lots that serve the building in order to rehabilitate the
building and provide vital health services for low-income residents residing in the downtown project
area. The acquisition provided the Agency with the opportunity to rehabilitate a downtown property
and locate a County Health Center providing primary health services, a nonprofit agency providing
family and substance abuse counseling, and a chiropractic’s office. The facility is currently still occupied
by the County Health Center and Sitike Counseling Center.
c) Parcel Data
472 Grand Avenue/306 Spruce Avenue, APN 012-302-140: This 14,000 sq. ft. (0.32 acre) lot measures
100 feet by 140 feet. The parcel is zoned Downtown Core.
d) Estimate of Current Value
In February of 2007, the property was appraised by DANA Property Analysis, concluding that its “as is”
market value was $3,050,000. However, this valuation included the building at 472 Grand Avenue/306
Spruce Avenue and the dedicated parking lot at 468 Miller Avenue. The 2007 appraisal did not take into
consideration the building’s aging infrastructure and systems. Over the years many problems have
arisen with respect to drainage and failed water lines that are buried between the walls and floors of the
building. Therefore, based on an estimate of $90/sq. ft., this individual property is worth approximately
$1.26 million.
Amended Long Term Property Management Plan
May 21, 2015
30
e) Revenues Generated by Property/Contractual Requirements
Sitike pays $5,858 per month to rent the first floor, the County Health Center pays $8,370 per month for
the second floor, and Sprint pays $1,983 per month for the cell towers on the roof. Combined, the
tenants generate $194,559 per year in revenues. Sitike and the County Health Center each have one-
year leases. The most recent leases were approved in August 2013. Sitike’s lease expires on August 31,
2014 and the County Health Center’s lease expires on September 30, 2014. Both leases have been
renewed annually for one year until the Department of Finance approves the property’s proposed
disposition.
f) Environmental Contamination and Remediation
There are no known environmental conditions on the property.
g) Potential for Transit Oriented Development and Advancement of Planning Objectives
This property is developed with a functional building in a transit oriented area and is not suitable for
other transit oriented development at this time. The property advances a critical planning objective to
provide health services to low income residents in the downtown and also helps prevent further
deterioration of the building.
h) History of Development Proposals and Activity
The property serves the public goal and redevelopment goal of providing public facilities serving low-
income residents residing in the project area. No other development proposals or activity are being
considered for this property.
14. 468 Miller Avenue
The property at 468 Miller Avenue was purchased in conjunction with 472 Grand Avenue/306 Spruce
Avenue. This property serves the parking requirements of the property at 472 Grand/306 Spruce
Avenue.
a) Acquisition Information
See acquisition information for 472
Grand Avenue/306 Spruce Avenue.
b) Purpose of Acquisition
See acquisition information for 472
Grand Avenue/306 Spruce Avenue.
c) Parcel Data
468 Miller Avenue, APN 012-301-
0201: This is a 7,000 sq. ft. lot
measuring 50 feet by 140 feet (see App. B) The parcel is zoned Downtown Residential Medium.
468 Miller Avenue
Amended Long Term Property Management Plan
May 21, 2015
31
d) Estimate of Current Value
The unimproved land value in the downtown is estimated at $80/sq. ft. The value of this property
without improvements is estimated to be approximately $560,000 but currently the property represents
no additional value as it is needed to provide parking medical center, particularly for persons with
disabilities.
e) Revenues Generated by Property/Contractual Requirements
The property serves the parking requirement for 472 Grand Avenue/306 Spruce Avenue. See acquisition
information for 472 Grand Avenue/306 Spruce Avenue for more details.
f) Environmental Contamination and Remediation
There are no known environmental conditions on the property.
g) Potential for Transit Oriented Development and Advancement of Planning Objectives
The property serves the parking requirement for 472 Grand Avenue/306 Spruce Avenue. Unless the
property at 472 Grand/306 Spruce converted to a use not requiring parking, the property cannot be
redeveloped into a transit oriented project. The property advances a critical planning objective to
provide critical health services to local residents.
h) History of Development Proposals and Activity
The property has served as the parking lot for 472 Grand Avenue/306 Spruce Avenue. No other
development proposals or activity are being considered for this property.
15. 201 Grand Avenue
The Agency originally acquired this property through eminent domain. The building on the property and
the bar that operated there had blighted conditions that needed to be addressed. Moreover, the Agency
considered the site a suitable
location to replace 25 public
parking spaces that were lost due
to a commercial development on
Baden Avenue. The property was
subsequently developed into 13
metered parking spaces and
incorporated into the Downtown
Parking District. However, the
Agency Board stipulated that if the
site was not needed for parking in
the future, it would serve as an
excellent retail site for the entrance
to the Historic Grand Avenue
Downtown Business District.
201 Grand Avenue
201 Grand Avenue
Amended Long Term Property Management Plan
May 21, 2015
32
a) Acquisition Information
On March 22, 2000, the Agency Board adopted a Resolution of Necessity for the property, occupied by
the former Copa Cabana bar. The Copa Cabana had been subject to various code violations due to the
substandard condition of the structure. The Agency acquired the property through eminent domain. The
property’s appraised value was $564,000 based on an appraisal conducted by Dana Property Analysis on
December 29, 1999. The final property value of $611,097 was determined by the co urt in the
subsequent condemnation action.
b) Purpose of Acquisition
The Agency originally purchased the property as a potential location for the replacement of 25 parking
spaces lost in the Downtown Parking District due to the Agency’s participation in the development of a
new retail building on Baden Avenue that used a public parking lot. The installation of a new public
parking facility was specifically identified in the Agency’s Implementation Plan. The property was also
severely blighted and suitable for redevelopment.
c) Parcel Data
201 Grand Avenue, APN 012-316-110: This is an irregularly shaped 5,077 sq. ft. lot measuring 36 feet by
140 feet (see Appendix B). The parcel is zoned Downtown Core.
d) Estimate of Current Value
The property has not been appraised in recent years. The unimproved land value in the downtown is
estimated at $80/sq. ft.; therefore, the value of this property without improvements is estimated to be
approximately $406,160. However, the property is suitable for transit oriented development (see
below) which may ultimately increase its value.
e) Revenues Generated by Property/Contractual Requirements
The property and the adjacent property at 207 Grand Avenue generate $5,436.18 per year in parking
revenues but these funds are currently being used to offset the cost of operating and maintaining the
parking lot.
f) Environmental Contamination and Remediation
There are no known environmental conditions on the property.
g) Potential for Transit Oriented Development and Advancement of Planning Objectives
Combined with the adjacent properties owned by the Successor Agency, this site is ideal for a transit
oriented development. The property is located within the downtown and is less than one-quarter (1/4)
mile away from the South San Francisco Caltrain station. Upon the extension of the train platform and
expansion of the pedestrian entryway to the train station, the property will be one block away from the
train station entrance. Plans for this site and the adjacent parcels indicate that 37 residential units and
8,000 sq. ft. of retail can be built at this location.
Amended Long Term Property Management Plan
May 21, 2015
33
h) History of Development Proposals and Activity
In August 2010, a developer approached the Agency with a proposal to develop this site and adjacent
private properties into a 45 residential unit development with 14,000 sq. ft. of retail space. The Agency
initiated efforts to acquire five additional parcels in an attempt to assemble the site for a development
but was only able purchase four parcels before the dissolution of redevelopment. Nevertheless, as
stated above, the assembled site is still suitable for a 37 unit development.
16. 207 Grand Avenue
On December 8, 2010, the Agency Board adopted Resolution 23-2010 approving the execution of a
Purchase and Sale Agreement to acquire the vacant parking lot located at 207 Grand Avenue for
$350,000, the appraised valuation, in order to facilitate
the Agency’s implementation of the Redevelopment Plan
for the project area. The property is currently being used
as a parking lot containing 10 metered slots. The Agency
purchased this property to combine it with other adjacent
property it owned and create a 27,200 sq. ft. lot
assemblage that would be ideal for a major transit
oriented development in the Downtown.
a) Acquisition Information
The Agency purchased this property on December 10,
2010 for $350,000.
b) Purpose of Acquisition
The Agency purchased this property to combine it with
other adjacent properties (201 and 217-219 Grand Avenue) it owned and to create a 27,200 sq. ft. lot
assemblage that would be ideal for a major transit oriented development in the Downtown. With an
assembled site, the Agency would be able to develop a mixed-use project containing 42 to 45 units and
14,000 square feet of retail. As conceived, the project would be developed in one or two phases
depending on the acquisition of other lots. The first phase involving this property could be developed
into a project consisting of 20-25 units and 7,000 square feet of retail.
c) Parcel Data
207 Grand Avenue, APN 012-316-100: This is a 3,500 sq. ft. lot measuring 25 feet by 140 feet (see
Appendix B). The parcel is zoned Downtown Core.
d) Estimate of Current Value
The property has not been appraised in recent years. The unimproved land value in the downtown is
estimated at $80/sq. ft.; therefore, the value of this property without improvements is estimated to be
approximately $280,000. However, the property is suitable for transit oriented development (see
below) which may ultimately increase its value.
207 Grand Avenue
Amended Long Term Property Management Plan
May 21, 2015
34
e) Revenues Generated by Property/Contractual Requirements
The property and the adjacent property at 201 Grand Avenue generate $5,436.18 per year in parking
revenues but these funds are currently being used to offset the cost of operating and maintaining the
parking lot.
f) Environmental Contamination and Remediation
The Agency conducted a Phase I environmental assessment and found there were no reportable adverse
conditions.
g) Potential for Transit Oriented Development and Advancement of Planning Objectives
Combined with the adjacent properties owned by the Successor Agency, this site is ideal for a transit
oriented development. The property is located within the downtown and is less than one-quarter (1/4)
mile away from the South San Francisco Caltrain station. Upon the extension of the train platform and
expansion of the pedestrian entryway to the train station, the property will be one block away from the
train station entrance. Plans for this site and the adjacent parcels indicate that 37 units and 8,000 sq. ft.
of retail can be built at this location.
h) History of Development Proposals and Activity
In August 2010, a developer approached the Agency with a proposal to develop this site and adjacent
private properties into a 45 residential unit development with 14,000 sq. ft. of retail space. The Agency
initiated efforts to acquire five additional parcels in an attempt to assemble the site for a development
but was only able purchase four parcels before the dissolution of redevelopment. Nevertheless, as
stated above, the assembled site is still suitable for a 37 unit development with 8,000 sq. ft. of retail
space.
17-18. 217-219 Grand Avenue and 227 Grand Avenue
On November 10, 2010 the Agency Board adopted a resolution approving the execution of a Purchase
and Sale Agreement to acquire 217-219 Grand Avenue and 227 Grand Avenue for $1,500,000. The
property at 217-219 Grand
Avenue contains two
buildings. Ben Tre Restaurant
and Mom’s Tofu occupy the
building facing Grand
Avenue. A second building at
the rear of the property
contains a vacant two-
bedroom residential unit on
the second floor and a garage
and basement on the ground
floor. The buildings are in
fairly good condition and are
structurally sound. 227 Grand
Avenue is a vacant lot.
217-219 Grand Avenue
Amended Long Term Property Management Plan
May 21, 2015
35
a) Acquisition Information
The property was offered for sale by the owner and the Agency executed a purchase option reserving
the right to purchase the property while it conducted an appraisal and an environmental assessment.
Once those tasks were completed, the Agency entered into a Purchase and Sale Agreement to buy the
property and a vacant parcel at 227 Grand Avenue for $1.5 million.
b) Purpose of Acquisition
The Agency purchased this property to combine it with an adjacent property (201 and 207 Grand
Avenue) it owned and create a 27,200 sq. ft. lot assemblage that would be ideal for a major transit
oriented development in the Downtown. With an assembled site, the Agency would be able to develop
a mixed-use project containing 42 to 45 units and 14,000 square feet of retail. As conceived, the project
would be developed in one or two phases depending on the acquisition of other lots. The first phase
involving this property could be developed into a project consisting of 20 -25 units and 7,000 square feet
of retail.
c) Parcel Data
217-219 Grand Avenue, APN 012-316-100: This is a 7,000 sq. ft. lot measuring 25 feet by 140 feet.
227 Grand Avenue, APN 012-316-070: This is a 3,500 sq. ft. lot measuring 25 feet by 140 feet (see
Appendix B). The parcels are zoned Downtown Core.
d) Estimate of Current Value
The property has not been appraised recently. Its estimated value in December 2010 was $1,230,000
and is a reasonable estimate for its current value.
e) Revenues Generated by Property/Contractual Requirements
The property currently generates over $5,885 per month in rental income from the two restaurants. Ben
Tre has a lease ending in June 2014 that converts into a month-to-month tenancy. Mom’s Tofu is on a
month-to-month lease. The vacant residential unit could yield an additional $1,500 per month if rented.
f) Environmental Contamination and Remediation
The Agency conducted a Phase I environmental assessment and found there were no reportable adverse
conditions.
g) Potential for Transit Oriented Development and Advancement of Planning Objectives
Combined with the adjacent properties owned by the Successor Agency, this site is ideal for a transit
oriented development. The property is located within the downtown and is less than one-quarter (1/4)
mile away from the South San Francisco Caltrain station. Upon the extension of the train platform and
expansion of the pedestrian entryway to the train station, the property will be one block away from the
train station entrance. Plans for this site and the adjacent parcels indicate that 37 units and 8,000 sq. ft.
of retail can be built at this location.
h) History of Development Proposals and Activity
In August 2010, a developer approached the Agency with a proposal to develop this site and adjacent
private properties into a 45 residential unit development with 14,000 sq. ft. of retail space. The Agency
Amended Long Term Property Management Plan
May 21, 2015
36
initiated efforts to acquire five additional parcels in an attempt to assemble the site for a development
but was only able purchase four parcels before the dissolution of redevelopment. Nevertheless, as
stated above, the assembled site is still suitable for a 37 unit development.
19. 200 Linden Avenue
200 Linden Avenue consists of two
parcels linked together. The Agency
acquired the property from Wells Fargo
N.A when it closed the First Interstate
Bank/United California Bank at this
location as a result of a merger between
the two banks. One parcel contains a
building currently occupied by the City’s
Information Technology (IT)
Department. The second parcel serves
as parking for the building and as a 64
space metered/ permit parking lot
which is combined with properties at
212 - 216 Baden Avenue.
a) Acquisition Information
The Agency acquired 200 Linden and the adjacent parcel from First Interstate Bank/United California
Bank for $535,000. The property was conveyed by Grant Deed on October 8, 1996.
b) Purpose of Acquisition
The Agency initially purchased this site to serve as an interim branch library facility. Subsequently, the
Agency used it for a variety of public services ranging from a community learning center to the City’s IT
Department. With the acquisition of adjacent properties, the Agency designated this property as a
potential site for the development of a major mixed-use project that would include residential housing,
retail space and a public parking structure.
c) Parcel Data
200 Linden, APN 012-334-130: Combined these rectangular parcels consist of 0.32 acre or 14,000 sq. ft.
and measure 100 feet by 140 feet. The parcels are zoned Downtown Core.
d) Estimate of Current Value
The property has not been appraised recently. Its estimated value of $1.6 million is based on the
appraisal conducted for 217-219 Grand Avenue in December 2010 that stated this type of property is
valued at $117/sq. ft. The property at 217-219 Grand Avenue is situated nearby and has a similar
configuration of commercial space and parking.
200 Linden Avenue
Amended Long Term Property Management Plan
May 21, 2015
37
e) Revenues Generated by Property/Contractual Requirements
The building on the parcel is currently being used as offices for the City’s IT Department; therefore, the
building does not generate revenue. The metered parking lot generates $9,661.80. This revenue is
combined with revenue from parking at 212 - 216 Baden Avenue.
f) Environmental Contamination and Remediation
There are no known environmental conditions on the property.
g) Potential for Transit Oriented Development and Advancement of Planning Objectives
Combined with the adjacent properties owned by the Successor Agency, this site is ideal for a transit
oriented development. The property is located within the downtown and is about one-third (1/3) mile
away from the South San Francisco Caltrain station. Upon the extension of the train platform and
expansion of the pedestrian entryway to the train station, the property will be two blocks away from the
train station entrance. Plans for this site and the adjacent parcels indicate that 100 residential units and
6,500 sq. ft. of retail can be built at this location pursuant to the DSASP.
h) History of Development Proposals and Activity
The property was formerly tied to an Exclusive Negotiating Rights Agreement (ENRA), executed on April
6, 2000, with Terranomics Development and Metrovation, for the purpose of developing new retail
supporting uses for the downtown, including exploring the feasibility of incorporating the Agency parcel
into a broader development on Baden Avenue and Cypress Avenue. The plan called for Terranomics and
Metrovation to acquire adjoining parcels to assemble the entire block. However, they were not able to
acquire the parcels and the parties canceled the agreement. In recent years, the Agency has been able
to acquire several adjacent parcels.
20. 212 Baden Avenue
On December 15, 1999, the Agency approved an ENRA with Robert and Kathleen Giorgi, for the
development of a new
45,000 square foot retail
furniture store on property
owned by the Giorgi’s, the
City, and the Agency. The
ENRA proposed to convey
City and Agency owned
property that would be
merged to form a lot large
enough to accommodate
the proposed retail
furniture store. In exchange,
the Agency would receive
the property at 212 Baden
Avenue. On June 14, 2000, 200 Linden 216 Baden 212 Baden
Amended Long Term Property Management Plan
May 21, 2015
38
the City Council and Agency Board approved a Disposition and Development Agreement. By Resolution
20-2000 the Agency accepted the property at 212 Baden Avenue as part of the property exchange.
The Agency subsequently demolished the structure located on 212 Baden Avenue and created a new
surface parking lot to offset the loss of parking spaces the created by the exchange of properties.
This property, along with 200 Linden Avenue and 216 Baden, was subsequently developed into 63
combined parking spaces (14 metered and 49 permitted spaces) and incorporated into the Downtown
Parking District. However, the Agency Board stipulated that if the site was not needed for parking in the
future, it should be developed as a retail space serving the Downtown Business District.
a) Acquisition Information
The Agency acquired this property on August 11, 2000 in exchange for property the Agency and City
owned on the southeast corner of Baden and Linden Avenues.
b) Purpose of Acquisition
The Agency acquired this property to facilitate the development of a 45,000 square foot retail furniture
store on a separate site located on the south-east corner of Baden and Linden Avenues. This property
was intended to replace the public parking lost on the Agency and City owned lots where the
development occurred.
c) Parcel Data
212 Baden, APN 012-334-040: This is a 7,000 sq. ft. parcel (see Appendix B). The parcel is zoned
Downtown Core.
d) Estimate of Current Value
The property has not been appraised recently. Its estimated value of $560,000 is based on the appraisal
conducted for 207 Grand Avenue in December 2010, which stated that this type of property is valued at
$80/sq. ft. The property at 207 Grand Avenue is situated nearby and has a similar configuration.
e) Revenues Generated by Property/Contractual Requirements
Combined with revenue from the lots parking at 200 Linden - 216 Baden Avenue, these properties
generate $9,662 in revenue. These funds are currently being used to offset the cost of operating and
maintaining the parking lot.
f) Environmental Contamination and Remediation
There are no known environmental conditions on the property.
g) Potential for Transit Oriented Development and Advancement of Planning Objectives
Combined with the adjacent properties owned by the Successor Agency, this site is ideal for a transit
oriented development. The property is located within the downtown and is about one-third (1/3) mile
away from the South San Francisco Caltrain station. Upon the extension of the train platform and
Amended Long Term Property Management Plan
May 21, 2015
39
expansion of the pedestrian entryway to the train station, the property will be two blocks away from the
train station entrance. Plans for this site and the adjacent parcels indicate that 100 residential units and
6,500 sq. ft. of retail can be built at this location pursuant to the DSASP.
h) History of Development Proposals and Activity
The property was an acquisition target of Terranomics and Metrovation, which were attempting to
acquire this site and combine it with other Agency and privately owned parcels to construct a major
mixed-use development. However, Terranomics and Metrovation were not able to acquire the target
parcels and cancelled the project. In recent years, the Agency has been able to acquire this site and an
adjacent parcel.
21. 216 Baden Avenue
On December 12, 2007, the Agency Board adopted Resolution 11-2007 authorizing the execution of a
Purchase and Sale Agreement for 216 Baden for $781,000. At the time of acquisition the property sat
between two Agency-owned properties at 200 Linden Avenue and 212 Baden Avenue. The property has
street frontage on both Baden Avenue and Second Lane. The property is 3,500 sq. ft. and originally
contained two buildings that were demolished by the Agency.
a) Acquisition Information
The Agency acquired this property on January 23, 2008 for $781,000.
b) Purpose of Acquisition
The purchase of this property was key to the assemblage of property on Baden Avenue. Combined with
two Agency properties on both sides of this property, the Agency has assembled a site consisting of
31,404 sq. ft. (0.72 acre), suitable for a major development.
c) Parcel Data
216 Baden, APN 012-334-030: This is a 3,500 sq. ft. parcel. The parcel is zoned Downtown Core.
d) Estimate of Current Value
The property has not been appraised recently. Its estimated value is $280,000 based on the appraisal
conducted for 207 Grand Avenue in December 2010 that stated this type of property is valued at
$80/sq. ft. The property at 207 Grand Avenue is situated nearby and has a similar configuration.
e) Revenues Generated by Property/Contractual Requirements
Combined with revenue from the lots parking at 200 Linden - 212 Baden Avenue, these properties
generate $9,662 in revenue. These funds are currently being used to offset the cost of operating and
maintaining the parking lot.
f) Environmental Contamination and Remediation
The Agency conducted a Phase I environmental assessment of the property. The report, dated January
25, 2008, found no recognized environmental conditions.
Amended Long Term Property Management Plan
May 21, 2015
40
g) Potential for Transit Oriented Development and Advancement of Planning Objectives
Combined with the adjacent properties owned by the Successor Agency, this site is ideal for a transit
oriented development. The property is located within the downtown and is about one-third (1/3) mile
away from the South San Francisco Caltrain station. Upon the extension of the train platform and
expansion of the pedestrian entryway to the train station, the property will be two blocks away from the
train station entrance. Plans for this site and the adjacent parcels indicate that 100 residential units and
6,500 sq. ft. of retail can be built at this location pursuant to the DSASP.
h) History of Development Proposals and Activity
The property was an acquisition target of Terranomics and Metrovation, which were attempting to
acquire this site and combine it with other Agency and privately owned parcels to construct a major
mixed-use development. However, Terranomics and Metrovation were not able to acquire the target
parcels and cancelled the project. In recent years, the Agency has been able to acquire this site and an
adjacent parcel.
Ford Properties
315 Airport, 401 Airport, 411 Airport, 421 Airport, 405 Cypress, and 216 Miller
The Ford Properties consist of six parcels located at: 315 Airport, 401 Airport, 411 Airport, 421 Airport,
405 Cypress, and 216 Miller. The listing for sale of the former Ford properties gave the City and the
Agency a unique opportunity to acquire key sites in the downtown, which combined represent 94,814
square feet and are ideal for several major transit oriented developments in the downtown. On March
9, 2011, the City Council adopted a resolution approving the acquisition of the properties in an amount
not to exceed $9,000,000. This acquisition ensured the City’s ability to develop high quality mixed -use
projects along Airport Blvd.
a) Acquisition Information
Subject to a Purchase and Sale Agreement executed on June 23, 2011, the Agency acquired the six
parcels on September 9, 2011 for $8,743,000, slightly higher than their appraised value of $8,114,000.
The former RDA purchased the properties in one transaction so specific values were never attributed to
individual sites. Nevertheless, the RDA’s appraisal had estimated values for each property. The
appraised values for each property are listed below:
#22 - 315 Airport Blvd. $2,100,000
#23 - 401 Airport Blvd. $1,100,000
#24 - 411 Airport Blvd. $995,000
#25 - 421 Airport Blvd. $1,800,000
#26 - 405 Cypress Ave. $719,000
#27 - 216 Miller Ave. $1,400,000
Total: $8,114,000
Amended Long Term Property Management Plan
May 21, 2015
41
b) Purpose of Acquisition
The acquisition of the Ford Properties ensured the City’s ability to develop high quality mixed-use
projects along Airport Blvd. pursuant to the Downtown Revitalization Strategy developed by Van Meter
Williams Pollack. The sites would accommodate 65 residential units, 21,000 square feet of retail,
114,000 square feet of commercial/office space, and 468 parking spaces. A more recent study based on
the DSASP shows that the development potential of these properties will be 298 residential units and
17,000 sq. ft. of retail space. The proposed lot assemblage combined with other downtown projects
underway or under consideration will have a transformative effect on the Downtown. The parcel
inventory information for each of the six properties is presented below:
22. 315 Airport Blvd.
This property has a building that was formerly used as the Ford auto dealership showroom and repair
garage. Currently the building is vacant.
c) Parcel Data
315 Airport, APN 012-318-080: This
is a 0.51 acre (22,136 sq. ft.) parcel.
The parcel measures approximately
150 feet by 150 feet and includes
one structure on the parcel. The
parcel is zoned Downtown Core.
d) Estimate of Current Value
The Successor Agency estimates that
property values in the downtown
area have recovered and are close to
land values in 2011 when the Agency
had the property appraised. Based
on that appraisal, the property value is estimated to be approximately $2.1 million.
e) Revenues Generated by Property/Contractual Requirements
Currently the property is vacant and does not generate any revenue. There are no contractual
agreements associated with this property.
f) Environmental Contamination and Remediation
The Agency conducted a Phase I environmental assessment on the property and found it has three
former gasoline underground storage tanks (USTs) that were abandoned in place and two former waste
oil USTs that were removed from the property. TCE, DCE and vinyl chloride were additional
contaminants left in place. Any development occurring on this property will necessitate the removal of
the tanks and further studies to assess soil and groundwater contamination. Future development
activities that disturb underlying soil or groundwater will likely encounter the contaminated media and
require special handling and disposal.
315 Airport Blvd.
Amended Long Term Property Management Plan
May 21, 2015
42
g) Potential for Transit Oriented Development and Advancement of Planning Objectives
This site is ideal for a transit oriented development. The property is located within the downtown and is
less than one-quarter (1/4) mile away from the South San Francisco Caltrain station. Upon the extension
of the train platform and expansion of the pedestrian entryway to the train station, the property will be
across the street from the train station entrance. Plans for this site indicate that 58 residential units and
9,000 sq. ft. of retail can be built at this location.
h) History of Development Proposals and Activity
The Agency has not considered any other plans to develop the property. However, the Agency has
prepared a development program for the property based on the rezoning of the area by the DSASP.
23. 401 Airport Blvd.
401 Airport consists of a parking lot with 20 spaces and one structure. Currently the structure is vacant.
c) Parcel Data
401 Airport, APN 012-317-110: This
is a 0.23 acre (10,259 sq. ft.) parcel.
The parcel measures 75.5 feet by
151 feet and includes one structure
on the parcel. The parcel is zoned
Downtown Core and is in the
Downtown Parking District.
d) Estimate of Current Value
The Successor Agency estimates
that property values in the
downtown area have recovered and
are close to land values in 2011
when the Agency had the property appraised. Based on that appraisal, the property value is estimated
to be approximately $1.1 million.
e) Revenues Generated by Property/Contractual Requirements
Currently the property is vacant and does not generate any revenue. There are no contractual
agreements associated with this property.
f) Environmental Contamination and Remediation
The Agency conducted Phase I and Phase II environmental assessments on the property and found it has
three former gasoline USTs and a former waste oil UST that was removed. The soil and groundw ater
impacted with petroleum hydrocarbons are still in place. Future development activities that disturb
underlying soil or groundwater will likely encounter the contaminated media and require special
handling and disposal.
401 Airport Blvd.
Amended Long Term Property Management Plan
May 21, 2015
43
g) Potential for Transit Oriented Development and Advancement of Planning Objectives
Combined with the adjacent properties owned by the Successor Agency, this site is ideal for a transit
oriented development. The property is located within the downtown and is less than one-quarter (1/4)
mile away from the South San Francisco Caltrain station. Upon the extension of the train platform and
expansion of the pedestrian entryway to the train station, the property will be one block from the train
station entrance. Plans for the assembled site indicate that 162 residential units and 8,000 sq. ft. of
retail can be built at this location.
h) History of Development Proposals and Activity
The Agency has not considered any other plans to develop the property. However, the Agency has
prepared a development program for the property based on the rezoning of the area by the DSASP.
24. 411 Airport Blvd.
This property consists of a warehouse structure. Currently the property is vacant.
c) Parcel Data
411 Airport, APN 012-317-100:
This is a 0.26 acre (11,404 sq. ft.)
parcel. The parcel measures 75.5
feet by 151 feet and includes one
structure on the parcel. The parcel
is zoned Downtown Core.
d) Estimate of Current Value
The Successor Agency estimates
that property values in the
downtown area have recovered
and are close to land values in
2011 when the Agency had the
property appraised. Based on that
appraisal, the property value is estimated to be approximately $995,000.
e) Revenues Generated by Property/Contractual Requirements
Currently the property is vacant and does not generate any revenue. There are no contractual
agreements associated with this property.
f) Environmental Contamination and Remediation
There are no known environmental conditions on the property.
g) Potential for Transit Oriented Development and Advancement of Planning Objectives
This site is ideal for a transit oriented development. The property is located within the downtown and is
less than one-quarter (1/4) mile away from the South San Francisco Caltrain station. Upon the extension
411 Airport Blvd.
Amended Long Term Property Management Plan
May 21, 2015
44
of the train platform and expansion of the pedestrian entryway to the train station, the property will be
across the street from the train station entrance. Plans for this site indicate that 58 residential units and
9,000 sq. ft. of retail can be built at this location.
h) History of Development Proposals and Activity
The Agency has not considered any other plans to develop the property. However, the Agency has
prepared a development program for the property based on the rezoning of the area by the DSASP.
25. 421 Airport Blvd.
This property consists of 60 plus parking spots and no structures. Currently the property is vacant.
c) Parcel Data
421 Airport, APN 012-317-090:
This is a 0.52 acre (22,809 sq. ft.)
parcel. The parcel measures 150
feet by 150 feet and has no
structures on the parcel. The
parcel is zoned Downtown Core.
d) Estimate of Current
Value
The Successor Agency estimates
that property values in the
downtown area have recovered
and are close to land values in 2011 when the Agency had the property appraised. Based on that
appraisal, the property value is estimated to be approximately $1.8 million.
e) Revenues Generated by Property/Contractual Requirements
Currently the property is vacant and does not generate any revenue. There are no contractual
agreements associated with this property.
f) Environmental Contamination and Remediation
There are no known environmental conditions on the property.
g) Potential for Transit Oriented Development and Advancement of Planning Objectives
This site is ideal for a transit oriented development. The property is located within the downtown and is
less than one-quarter (1/4) mile away from the South San Francisco Caltrain station. Upon the extension
of the train platform and expansion of the pedestrian entryway to the train station, the property will be
across the street from the train station entrance. Plans for this site indicate that 58 residential units and
9,000 sq. ft. of retail can be built at this location. Development of the site advances the City’s and
Agency’s goals to intensify development, provide a broad range of high quality housing and help prepare
and improve the site for future development.
411 Airport Blvd.
Amended Long Term Property Management Plan
May 21, 2015
45
h) History of Development Proposals and Activity
The Agency has not considered any other plans to develop the property. However, the Agency has
prepared a development program for the property based on the rezoning of the area by the DSASP.
26. 405 Cypress Avenue
This property consists of a parking lot with no structures. Currently the property is vacant.
c) Parcel Data
405 Cypress, APN 012-314-100:
This is a 0.2 acre (8,763 sq. ft.)
parcel. The parcel measures
approximately 140 feet by 71 feet
and has no structures on the
parcel. The parcel is zoned
Downtown Core & Downtown.
d) Estimate of Current Value
The Successor Agency estimates
that property values in the
downtown area have recovered
and are close to land values in 2011 when the Agency had the property appraised. Based on that
appraisal, the property value is estimated to be approximately $719,000.
e) Revenues Generated by Property/Contractual Requirements
Currently the property is vacant and does not generate any revenue. There are no contractual
agreements associated with this property.
f) Environmental Contamination and Remediation
There are no known environmental conditions on the property.
g) Potential for Transit Oriented Development and Advancement of Planning Objectives
This site is ideal for a transit oriented development. The property is located within the downtown and is
less than one-quarter (1/4) mile away from the South San Francisco Caltrain station. Upon the extension
of the train platform and expansion of the pedestrian entryway to the train station, the property will be
two blocks from the train station entrance. Plans for this site indicate that 28 residential units can be
built at this location. Development of the site advances the City’s and Agency’s goals to intensify
development, provide a broad range of high quality housing and help prepare and improve the site for
future development.
h) History of Development Proposals and Activity
The Agency has not considered any other plans to develop the property. However, the Agency has
prepared a development program for the property based on the rezoning of the area by the DSASP.
405 Cypress Avenue
Amended Long Term Property Management Plan
May 21, 2015
46
27. 216 Miller Avenue
The Agency acquired this property to ensure the development of high quality housing in the downtown
project area. It is an important component of the City’s and former Agency’s efforts to create a vibrant,
transit-oriented, and diverse downtown. Development of this property will provide transit supported
housing and easy connectivity to the downtown South San Francisco Caltrain station.
c) Parcel Data
216 Miller, APN 012-314-
220: This is a 0.4 acre
(17,500 sq. ft.) parcel. The
parcel measures 125 feet
by 140 feet and has no
structures on the parcel.
The parcel is zoned
Downtown Core.
d) Estimate of
Current Value
The Successor Agency
estimates that property
values in the downtown area have recovered and are close to land values in 2011 when the Agency had
the property appraised. Based on that appraisal, the property value is estimated to be approximately
$1.4 million.
e) Revenues Generated by Property/Contractual Requirements
Currently the property is vacant and does not generate any revenue. There are no contractual
agreements associated with this property.
f) Environmental Contamination and Remediation
There are no known environmental conditions on the property.
g) Potential for Transit Oriented Development and Advancement of Planning Objectives
This site is ideal for a transit oriented development. The property is located within the downtown and is
less than one-quarter (1/4) mile away from the South San Francisco Caltrain station. Upon the extension
of the train platform and expansion of the pedestrian entryway to the train station, the property will be
two blocks from the train station entrance. Plans for this site indicate that 50 residential units can be
built at this location.
h) History of Development Proposals and Activity
The Agency has not considered any other plans to develop the property. However, the Agency has
prepared a development program for the property based on the rezoning of the area by the DSASP.
216 Miller Avenue
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May 21, 2015
47
28. 938 Linden Avenue
On December 9, 2009 the Agency Board adopted a resolution authorizing the Agency to execute a
Purchase and Sale Agreement for the purchase of 938 Linden Avenue. The property has one 4,000 sq. ft.
office building consisting of a lower story and a partial second story mezzanine that is not code
compliant and can only be used for storage. It was constructed in the mid-1900s but is relatively well
maintained. The first floor of the building is broken into smaller offices and restrooms with an open area
of approximately 25 feet by
35 feet at the rear. The
upper level is L shaped and
consists of smaller offices.
The building is a class C
structure including a
concrete slab floor, painted
concrete block walls, and a
flat composition roof.
There is limited parking in
the front of the building
and ample parking at the
rear, consisting of 19
spaces with perimeter
landscaping. The two concrete areas and driveway to the back of the building are asphalt paved. The
building has been vacant for an extended period of time.
a) Acquisition Information
The Agency completed the purchase of 938 Linden Avenue for $1.1 million on January 15, 2010.
b) Purpose of Acquisition
The intended use for the building was to relocate St. Vincent de Paul’s Food Program from Grand
Avenue to this site. The Agency believed this was a more suitable location for St. Vincent de Paul’s to
provide food services to the area’s homeless population as it would afford them more space, including a
seating area as well as space for additional homeless services. However, redevelopment was dissolved
before St. Vincent’s was able to secure sufficient funding to remodel the building and relocate its
services to the site.
c) Parcel Data
938 Linden Avenue, APN 012-102-030: The lot is 12,937 square feet (0.3 acre) and has a 4,000 sq. ft.
building. The parcel is zoned Downtown Mixed Use.
d) Estimate of Current Value
The property has not been appraised in recent years. However, it is estimated that its current value is
close to its $1.1 million acquisition price.
938 Linden Avenue
Amended Long Term Property Management Plan
May 21, 2015
48
e) Revenues Generated by Property/Contractual Requirements
The building has been vacant for some time as it had been intended for a nonprofit organization that
was going to remodel the building. No efforts have been made to rent the property pending the
dissolution of redevelopment and the adoption of this plan.
f) Environmental Contamination and Remediation
PIERS Environmental Services conducted a Phase I environmental assessment for the property in March
2009. The assessment revealed no evidence of recognized environmental conditions in connection with
the prior use of the property. However, one recognized environmental condition was identified and
consists of significantly elevated concentrations of petroleum hydrocarbons in the shallow groundwater
and capillary fringe soils beneath the property that are presumed to have originated from a former
service station at 900 Linden Avenue, a closed leaking underground storage tank (LUST) case. The
concentration of petroleum hydrocarbons beneath the building poses a potential risk of volatilization to
indoor air.
g) Potential for Transit Oriented Development and Advancement of Planning Objectives
The highest and best use of the property is to hold and combine it with adjacent properties to construct
a high density residential project. The property, however, is a significant distance from the downtown’s
transit hub and services and is therefore not considered a transit oriented development opportunity.
h) History of Development Proposals and Activity
At one time a private owner had assembled several properties adjacent to this one with the intent of
developing them. However, the owner went bankrupt and the lender foreclosed on the properties and
proceeded to sell them. The Agency purchased this property with the intent of conveying it for use by a
nonprofit organization to operate food and social service programs for the homeless. The project had
complete planning approvals and the nonprofit agency was in the process of securing funds to remodel
the building when the State ended redevelopment. With no binding obligation in place, the project was
terminated.
29. 905 Linden Avenue
On October 27, 1999 the Agency Board adopted a
resolution approving execution of a Purchase and Sale
Agreement to acquire 905 Linden Avenue for $477,500.
Prior to its acquisition, the property was occupied by a
Beacon gas station. The previous owner removed the
underground gasoline storage tanks and, upon
acquisition, the Agency demolished the former gas station
building. The property is currently maintained as a green
space.
905 Linden Avenue
Amended Long Term Property Management Plan
May 21, 2015
49
a) Acquisition Information
The Agency purchased the property in December 1999 for $477,000.
b) Purpose of Acquisition
The purpose of the acquisition was to remove blighting conditions and incompatible uses in the project
area caused by this property. Following the bankruptcy of the Beacon station operator at that location,
the property owner began working under the supervision of the San Mateo County Health Services
Agency to remediate soil and ground water contamination caused by gasoline from the underground
tanks. The Agency learned that the owner was interested in selling the property and negotiated the
purchase of the property. The Agency intended to hold the property until it could purchase additional
properties in the area and then undertake a major redevelopment effort to construct high density
housing on the assembled properties.
c) Parcel Data
905 Linden Avenue, APN 012-101-100: This is an irregular shaped parcel consisting of 15,000 sq. ft. (0.34
acre), see Appendix B. The parcel is zoned Downtown Residential Medium Density.
d) Estimate of Current Value
The property has not been appraised in recent years. The unimproved land value of properties in the
downtown area is estimated at $80/sq. ft. and the property could conceivably have a value of up to $1.2
million. However, the environmental condition of the property is considerably adverse so the value may
be significantly lower. See Environmental Contamination and Remediation section, below.
e) Revenues Generated by Property/Contractual Requirements
The property is vacant, unimproved land and does not generate any revenue. There are no contractual
requirements associated with this property.
f) Environmental Contamination and Remediation
Following the bankruptcy of the Beacon station operator, the former property owner worked under the
supervision of the San Mateo County Health Services Agency to remediate soil and ground water
contamination caused by gasoline from the underground tanks. The Agency upon further examination
of the property determined that it would conduct a Phase II environmental assessment of the property
prior to acquisition. The former property owner completed the removal of the gasoline storage tanks
and all gas contaminated soil from the property. In addition, the Agency identified oil contamination
from a waste oil tank in the rear of the building and a pair of hoists inside the building. The former
owner subsequently removed the waste oil tank and the hoists and conducted additional testing to
determine the extent of the oil contamination.
On September 8, 1999, the oil-contaminated soil was removed from the property, leaving all soils free of
gas and oil contamination. Subsequent test results have shown that, although the soil is clean of
gasoline contamination, the groundwater continues to show signs of contamination. Wells have been
installed to monitor the groundwater over several years to determine whether natural water flows will
Amended Long Term Property Management Plan
May 21, 2015
50
clean the water or whether it will have to be flushed out. To date the water continues to be
contaminated.
The San Mateo County Health Services Agency has issued a letter of partial clearance indicating the soil
surface area is free of gasoline and oil contamination. The County will not make a final closure certifying
the site is clean until the groundwater is also clean. By purchasing the property, the Agency assumed the
financial responsibility for the cleanup of the groundwater. At the time of purchase in 1999 the
estimated cost of remediating the ground water was $100,000. That cost has likely increased
significantly over the past 14 years.
g) Potential for Transit Oriented Development and Advancement of Planning Objectives
The highest and best use of the property is to hold and combine it with adjacent properties to construct
a high density residential project. The property, however, is a significant distance from the downtown’s
transit hub and services and is therefore not considered a transit oriented development opportunity.
Improving the property advances the City’s and Agency’s goals to alleviate blight and help prepare and
improve the site for future development.
h) History of Development Proposals and Activity
At one time the Agency prepared conceptual architectural plans for this site for a mixed-use
development that included adjacent properties however the Agency was not able to assemble the site.
Nevertheless, the Agency subsequently prepared conceptual plans for a mixed-use housing
development for this single site.
30. 616 Linden Avenue
On October 9, 1996, the Agency Board approved a resolution of necessity for the condemnation of the
property at 616 Linden Avenue. However, the Agency and the property owners subsequently reached an
agreement for a negotiated purchase and sale of
the property. On February 26, 1997, the Agency
approved a Purchase and Sale Agreement. The
property currently serves as a metered parking
lot with 20 parking spaces. However, at the time
of acquisition the lot consisted of a 4,000 sq. ft.
Quonset hut-type building and a 2,250 sq. ft.
automotive repair building. The Agency
demolished the buildings but the environmental
conditions created by the former uses persist
today (see Environmental Contamination and
Remediation section, below).
a) Acquisition Information
On February 26, 1997, the Agency Board approved a Purchase and Sale Agreement in the amount of
$325,000 for 616 Linden Avenue. The property was conveyed to the Agency on April 14, 1997.
616 Linden Avenue
Amended Long Term Property Management Plan
May 21, 2015
51
b) Purpose of Acquisition
The Agency acquired the property for a public use purpose. At the time Agency was working with an arts
performance organization to create a performance theater that would serve the downtown project
area. The arts performance organization was not able to raise sufficient funding to complete the project
and the Agency terminated the project.
c) Parcel Data
616 Linden Avenue, APN 012-174-300: This is a 14,000 sq. ft. lot measuring 100 feet by 140 feet (see
Appendix B). The parcel is zoned Downtown Mixed Use.
d) Estimate of Current Value
The property has not been appraised in recent years. The unimproved land value of properties in the
downtown area is estimated at $80/sq. ft. and the property could conceivably have a value of up to $1.1
million. However, the environmental condition of the property is considerably adverse so the value may
be significantly lower. See Environmental Contamination and Remediation section, below.
e) Revenues Generated by Property/Contractual Requirements
The property generates $2,880 per year in parking revenues but these funds are currently being used to
offset the cost of operating and maintaining the parking lot.
f) Environmental Contamination and Remediation
Prior to the Agency’s acquisition the property was used for automotive repairs that included
underground petroleum storage tanks. The storage tanks leaked and contaminated the soil and ground
water on the property. It was anticipated that the petroleum compounds in the ground would be
remediated through natural degradation. Without further testing it is unknown whether this has yet
occurred. The groundwater is being monitored by wells and continues to show signs of contamination.
The Successor Agency does not have an estimate of the cost to remediate these conditions.
g) Potential for Transit Oriented Development and Advancement of Planning Objectives
The highest and best use of the property is to hold and combine it with 700 Linden Avenue to construct
a high density residential project when market conditions improve. The property is in close proximity to
the downtown core and the Caltrain station and is suitable for transit oriented development. Improving
the property advances the City’s and Agency’s goals to alleviate blight and help prepare and improve the
site for future development.
h) History of Development Proposals and Activity
In the late 1990’s and early 2000’s the Agency was working with an arts organization to develop a
performance arts theater. Since the cancellation of that project, not other developments have been
proposed although the Agency had conceptual plans prepared for a mixed-use housing development on
the site.
Amended Long Term Property Management Plan
May 21, 2015
52
31. 700 Linden Avenue
This property is across the street from 616
Linden Avenue and the Agency purchased it
shortly after acquiring 616 Linden Avenue.
The Agency envisioned that this lot would
serve as neighborhood parking and as parking
for visitors to the performance theater that
would be constructed across the street. Prior
to its acquisition the lot was vacant and a
neighborhood nuisance due to constant weed
overgrowth. To address the overgrowth the
Agency entered into a cooperative agreement
with the owner whereby the Agency cleaned
and sodded the lot. The Agency continues to
maintain the property as an open green
space.
a) Acquisition Information
On April 8, 1998, the Agency Board approved
a Purchase and Sale Agreement in the amount
of $315,000 for 700 Linden Avenue. The property was conveyed to the Agency on April 14, 1997.
b) Purpose of Acquisition
The Agency acquired the property for a public use purpose. At the time Agency was working with an arts
performance organization to create a performance theater at 616 Linden Avenue. The Agency
purchased this property to serve as parking for the neighborhood and the theater during performances.
The arts performance organization was not able to raise sufficient funding to complete the project and
the Agency terminated the project.
c) Parcel Data
700 Linden Avenue, APN 012-145-370: This is a 14,000 sq. ft. lot measuring 100 feet by 140 feet. The
parcel is zoned Downtown Mixed Use.
d) Estimate of Current Value
The property has not been appraised in recent years. The unimproved land value of properties in the
downtown area is estimated at $80/sq. ft. and the property could conceivably have a value of up to $1.1
million.
e) Revenues Generated by Property/Contractual Requirements
The property is vacant, unimproved land and does not generate any revenue. There are no contractual
requirements associated with this property.
700 Linden Avenue
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May 21, 2015
53
f) Environmental Contamination and Remediation
The Agency believes the automotive uses at 616 Linden Avenue have created a plume of groundwater
contamination that extends into all properties in close proximity to the site, including this property. The
high water table and soil and groundwater contamination make it financially infeasible to develop a high
density project without taking out several feet of topsoil for appropriate disposition and treatment of
the groundwater.
g) Potential for Transit Oriented Development and Advancement of Planning Objectives
The highest and best use of the property is to hold and combine it with 616 Linden Avenue to construct
a high density residential project when market conditions improve. The property is in close proximity to
the downtown core and the Caltrain station and is suitable for transit oriented development. Improving
the property advances the City’s and Agency’s goals to alleviate blight and help prepare and improve the
site for future development.
h) History of Development Proposals and Activity
In the late 1990’s and early 2000’s the Agency was working with an arts organization to develop a
performance arts theater at 616 Linden Avenue and use this site as parking for the new theater. Since
the cancellation of that project, not other developments have been proposed although the Agency had
conceptual plans prepared for a mixed-use housing development on the site.
32. 432 Baden Avenue/429 Third Lane
On January 8, 1997, the Agency Board approved Resolution 1-97 authorizing the execution of a Purchase
and Sale Agreement for 432 Baden Avenue/429 Third Lane. This property was acquired for the
development of a public parking lot to serve the 400 block of Grand Avenue, in the Historic Downtown
Business District and Downtown/Central Redevelopment Project Area, in order to relieve existing
parking problems. The residential property that existed on the site was demolished and a new Agency
surface parking lot was constructed.
a) Acquisition Information
The Agency appraised the property
and negotiated a final purchase
price of $270,000. The property was
transferred by Grant Deed on April
14, 1997.
b) Purpose of Acquisition
The Agency purchased this property
to develop a public parking lot to
serve the 400 block of Grand
Avenue. Previously this section of
the downtown had no public
parking facilities, resulting in
432 Baden Avenue/479 Third Lane
Amended Long Term Property Management Plan
May 21, 2015
54
parking problems for the area. The Agency demolished the residential building that existed on the site
and developed a new 16-space surface parking lot. The property was developed solely for the purposes
consistent with the Redevelopment Plan for the project area.
c) Parcel Data
432 Baden/429 Third Lane, APN 012-321-160: This is a rectangular parcel consisting of 0.22 acre or 7,000
sq. ft. and measures 50 feet by 140 feet (see Appendix B). The parcel is zoned Downtown Core.
d) Estimate of Current Value
The property has not been appraised in recent years. The unimproved land value of properties in the
downtown area is estimated at $80/sq. ft. and the property could conceivably have a value of up to
$560,000.
e) Revenues Generated by Property/Contractual Requirements
The property generates $2,760.15 per year in parking revenues. These funds are currently being used to
offset the cost of operating and maintaining the parking lot.
f) Environmental Contamination and Remediation
There are no known environmental conditions on the property.
g) Potential for Transit Oriented Development and Advancement of Planning Objectives
This site is ideal for a smaller scale transit oriented development. The property is located within the
downtown and is less than one-half (1/2) mile away from the South San Francisco Caltrain station.
Conceptual plans indicate that 12 residential units can be built on the site pursuant to the DSASP.
h) History of Development Proposals and Activity
Upon acquisition, the Agency demolished the existing building on the property. The Agency has not
considered any other plans to develop the property. However, as stated above, the Agency has created
a development program for the property based on the rezoning of the area by the DSASP.
Amended Long Term Property Management Plan
May 21, 2015
55
Property Disposition
This part of the LRPMP lists the Successor Agency’s properties under the three applicable permissible
categories allowed by the Redevelopment Dissolution Statutes. It begins with a discussion of the
properties that are used for governmental purposes and the reason why these properties should retain
their present functions. The next section lists the properties recommended for sale. The third section
describes the properties that should be retained for the purpose of implementing the development
goals of the approved Redevelopment Project Plan.
For the section discussing the properties that should be retained for implementing the development
goals of the approved Redevelopment Project Plan, the LRPMP will provide background information that
will put into context the information provided for each property or group of properties. In addition, for
each property transferred to the City pursuant to Section34191.5(c)(2)(A) and this LRPMP, the City and
the Taxing Entities will enter into a Compensation Agreement pursuant to Section 34180(f). Each
Compensation Agreement shall meet the characteristics described in the Compensation Agreement
section of this LRPMP and will be subject to the directives of DOF in connection with its consideration
and approval of this LRMPM.
During the 1990’s and 2000’s the Agency’s redevelopment focus was directed at developing what is
arguably the world’s premier biotech cluster. Nevertheless, in the few years preceding the dissolution of
redevelopment the Agency acquired and assembled a significant amount of land for future development
in the El Camino Corridor and Downtown Central project areas. Properties assembled include the former
PUC properties, the Ron Price property (1 Chestnut), the Ford properties in the downtown and various
other scattered sties. The City also adopted the 1999 General Plan that included plans for intensive
development of the Downtown and within Transit Oriented Districts (TOD), adopted area plans for the El
Camino Corridor to guide future development, and most recently adopted the Downtown Station Area
Specific Plan (DSASP).
With the dissolution of redevelopment the City lost a significant amount of funding that was available
for fulfilling the Agency’s and City’s vision for downtown and the El Camino Corridor. The adoption of
AB1484 (the clean-up legislation for ABx1 26), however, gives the City the opportunity to retain
properties suitable for transit oriented development (TOD) to advance the project area’s redevelopment
plan. This section of the LRPMP will demonstrate that some of the Agency’s former properties in TOD
areas should be retained for future development to fulfill the redevelopment plan for the area. This
section will further demonstrate that ensuring the development of these properties as envisioned by the
Redevelopment Plans will ultimately be of greater benefit to the taxing agencies through increased
property tax revenue.
Planning for the future of the former Agency’s properties must seek a balanced approach between
pursuing the goals of the Redevelopment Dissolution Statutes and taking today’s market investment and
cost development realities into consideration. The Successor Agency must also appreciate the benefits
Amended Long Term Property Management Plan
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56
of developing affordable housing in the project areas. Affordable housing is not simply about providing
housing for low-income people, it is about providing housing to working people at affordable rents so
that they have disposable income to promote a healthy economy.
Despite all of the benefits and attractive features of South San Francisco, there is no denying that the
residential development community unfairly views South San Francisco as a second tier city in the
County (this comment is not meant to insult but rather to convey the movement of capital). As
developers have stated, it costs the same to build in South San Francisco as it does to build in Redwood
City, San Mateo or Millbrae. Given this fact, why build in South San Francisco when the return on
investment is much higher in other cities? This means that without proactive involvement, properties in
the former redevelopment project areas will not be developed if development is left to market forces.
To ensure the growth planned in the former Agency’s Redevelopment Plan, the City is going to have to
take a leadership role and initiate development of the PUC properties and in the downtown. The City
has to be able to retain some of the former Agency’s properties in order to spark development and fulfill
the vision of creating TOD areas around the South San Francisco BART and Caltrain stations.
To understand the development potential of the former Agency’s properties and to identify the long-
term financial benefits to the taxing agencies, the City worked with architects, developers and financial
analysts to prepare development programs for the former Agency’s properties. Each property discussed
in the section listing the properties that should be retained for implementing the goals of the approved
Redevelopment Plan describe the development potential of the properties and the long-term financial
benefits to the taxing agencies.
One final element in this section that needs further explanation is residual land value (RLV). RLV is the
value of land determined by deducting from the value of an improved property, the costs of
development and a market rate profit. This methodology is often used where direct land sale
comparable information is not available without substantial adjustment for the use and development
conditions. Additionally, this method estimates the amount that a developer can afford to pay for the
site based on the expected costs and revenues associated with the development program. A calculated
residual land value equal to the expected cost of land suggests that a project is feasible. A residual land
value significantly less than the expected cost of land, or negative, suggests that a project is not feasible.
Residual land values were calculated for both apartment and condominium developments. Apartments
provide the highest and best use for the sites in current and projected market conditions. Condominium
market conditions may improve and provide greater feasibility in the future. RLV for condominiums
trailed feasibility thresholds in most scenarios. Consideration of park-in-lieu-fees and affordable housing
requirements further impair condominium feasibility. Accordingly, condominium RLV’s are excluded
from the results presented in the LRPMP.
Amended Long Term Property Management Plan
May 21, 2015
57
Permissible Use Category: Government Use
El Camino Corridor Project Area
4-5. Former PUC Properties 093-331-050/ 093-331-060
These properties were acquired from the San Francisco Public Utilities Commission along with parcels
APN 093-312-050, 093-312-060 and 011-326-030. While the latter parcels have development potential,
these parcels are landlocked and run behind properties facing El Camino Real. They have no
development value and are zoned for public use. The corridor now serves as a linear park. Therefore,
these properties must remain a public use in order to provide public access and a park.
Amended Long Term Property Management Plan
May 21, 2015
58
Upon transfer of the property to the City the grant deed will include language restricting the use of the
property to governmental/public use. In the event that City as Grantee discontinues the restricted use
or seeks to use the property for a non-governmental/public purpose, the City shall enter into a
compensation agreement with the San Mateo County Auditor-Controller or other appropriate entity or
entities, providing that all net revenue from such non-governmental/public use shall be distributed in
the same manner as property tax, subject to then-current law respecting such distribution. For a
description of the proposed grant deed language, see Appendix F.
8. 80 Chestnut Avenue
This property was previously owned by Cal Water to operate wells and provide water to its users. It has
long been the City’s intent to expand Orange Memorial Park onto this property as reflected in the
Orange Memorial Park Master Plan. The property is zoned Park/ Open Space/Public-Institutional Use
and it currently serves as a museum for the South San Francisco Historical Society’s historical collection.
Cal Water plans to sell additional sub-area parcels to the City in the future to complete the expansion of
the park. Given the property’s zoning and intended public benefit, this property must remain a public
use.
Upon transfer of the property to the City the grant deed will include language restricting the use of the
property to governmental/public use. In the event that City as Grantee discontinues the restricted use
or seeks to use the property for a non-governmental/public purpose, the City shall enter into a
compensation agreement with the San Mateo County Auditor-Controller or other appropriate entity or
entities, providing that all net revenue from such non-governmental/public use shall be distributed in
the same manner as property tax, subject to then-current law respecting such distribution. For a
description of the proposed grant deed language, see Appendix F.
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May 21, 2015
59
Downtown Central Project Area
9. 480 North Canal
This property is used for Fire Station 61. An engine company (Engine 61), ambulance (Rescue 61), Type
1 Heavy Rescue (USAR 61) and BLS Ambulance operate out of this station as well as the on duty
Battalion Chief (Battalion 17) who manages the daily operation of each shift. This is also the home of
the Fire Administration office and the Fire Prevention Division. The property also contains a four-story
training tower. As the only fire station serving the City’s downtown central area, this property must
remain a public use, particularly as the property was purchased with tax exempt bond funds for this
purpose.
Upon transfer of the
property to the City the
grant deed will include
language restricting the use
of the property to
governmental/public use. In
the event that City as
Grantee discontinues the
restricted use or seeks to use
the property for a non-
governmental/public
purpose, the City shall enter
into a compensation
agreement with the San
Mateo County Auditor-
Controller or other appropriate entity or entities, providing that all net revenue from such non-
governmental/public use shall be distributed in the same manner as property tax, subject to then-
current law respecting such distribution. For a description of the proposed grant deed language, see
Appendix F.
10. 296 Airport Blvd.
The Agency acquired this property from the State Department of Transportation (DOT) to relocate the
Caltrain station, related public uses, and pedestrian access improvements. The City and Agency worked
extensively with Caltrain to develop plans to relocate the South San Francisco station. The project was
ready to begin construction but was delayed by the proposed bullet train. In addition, an easement is
recorded over the Directors’ Deed granting DOT access for maintenance of the freeway from Grand
Avenue towards the center of the site, along an established access road. The parcel is zoned for
Public/Quasi Public use and is an integral part of advancing transit oriented development for the entire
downtown area. Therefore, this property must remain in public use.
480 N. Canal
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May 21, 2015
60
Upon transfer of the property to the City the grant deed will include language restricting the use of the
property to governmental/public use. In the event that City as Grantee discontinues the restricted use
or seeks to use the property for a non-governmental/public purpose, the City shall enter into a
compensation agreement with the San Mateo County Auditor-Controller or other appropriate entity or
entities, providing that all net revenue from such non-governmental/public use shall be distributed in
the same manner as property tax, subject to then-current law respecting such distribution. For a
description of the proposed grant deed language, see Appendix F.
Amended Long Term Property Management Plan
May 21, 2015
61
11. 323 Miller Avenue
The City and Agency combined this property with City owned land to construct a five-level, open-air
concrete parking structure containing 254 parking stalls. The property now operates under the City’s
Parking District. Since the Agency and City owned properties were combined together in order to create
this parking structure, and the Agency owned property is currently used for an elevator and public
circulation, the property must remain a public use.
Upon transfer of the property to the City the grant deed will include language restricting the use of the
property to governmental/public use. In the event that City as Grantee discontinues the restricted use
or seeks to use the property for a non-governmental/public purpose, the City shall enter into a
compensation agreement with the San Mateo County Auditor-Controller or other appropriate entity or
entities, providing that all net revenue from such non-governmental/public use shall be distributed in
the same manner as property tax, subject to then-current law respecting such distribution. For a
description of the proposed grant deed language, see Appendix F.
12. 356 Grand Avenue
This parcel serves as pedestrian access connecting the City’s Miller Avenue Parking Structure to Grand
Avenue (the City’s main downtown arterial). As other former Agency properties that currently serve as
parking lots are developed, the Miller Avenue Parking Structure will play an increasing role in providing
parking for downtown visitors. It is important that visitors have easy and safe passageway from the
parking structure to Grand Avenue. Due to its important role, the City may dedicate this land as a formal
right‐of‐way in the future. This property must remain a public use to serve the needs of the downtown.
323 Miller Avenue
323 Miller
Ave.
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May 21, 2015
62
Upon transfer of the property to the City
the grant deed will include language
restricting the use of the property to
governmental/public use. In the event that
City as Grantee discontinues the restricted
use or seeks to use the property for a non-
governmental/public purpose, the City
shall enter into a compensation
agreement with the San Mateo County
Auditor-Controller or other appropriate
entity or entities, providing that all net
revenue from such non-governmental/
public use shall be distributed in the same
manner as property tax, subject to then-
current law respecting such distribution.
For a description of the proposed grant deed language, see Appendix F.
13-14. 472 Grand Avenue/306 Spruce Avenue and 468 Miller Avenue
San Mateo County Health Center
These properties (472 Grand Avenue/306 Spruce Avenue/) contain the Health Center operated by San
Mateo County and ancillary parking (468 Miller Avenue). The Health Center is a primary care medical
facility providing services for low-income residents in the downtown area. Given the importance of the
Health Center to the area residents and the Center’s need for additional space to provide supplemental
services, the Successor Agency
recommends that this property be
transferred to the County of San Mateo.
The transfer of the property to San Mateo
County would be conditional to retaining
the Health Center at this location and
would revert to the City in the event the
County elected to close the Health Center.
The County may condition its acceptance of
the property on receiving the property with
any and all existing deferred maintenance
improvements completed. If San Mateo
County declines to take ownership of the
property, the City will retain ownership of
the properties and continue using them for
a public use.
356 Grand Avenue
472 Grand/306 Spruce Avenue
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May 21, 2015
63
Upon transfer of the properties to the County of San Mateo, or to the City in the event the County does
not accept the property, the grant deed will include language restricting the use of the property to
governmental/public use. In the event that County accepts the property and subsequently closes the
Health Center, the property shall revert to the City. In the event the City as initial or subsequent
recipient of the property discontinues the restricted use or seeks to use the property for a non-
governmental/ public purpose, the City shall enter into a compensation agreement with the San Mateo
County Auditor-Controller or other appropriate entity or entities, providing that all net revenue from
such non-governmental/ use shall be distributed in the same manner as property tax, subject to then-
current law respecting such distribution. For a description of the proposed grant deed language, see
Appendix G.
Permissible Use Category: Sale
Gateway Project Area
1. 559 Gateway Blvd.
Boston Properties conveyed this
property to the Agency as a
condition of development for its
project. The property is subject
to the Second Amendment to
Declaration of Covenants,
Conditions and Restrictions for
Gateway Center, which limits the
uses of this property to: a) the
operation of a child day care
facility; b) a public library; c) a
public office facility as an
amenity to the property. The
Peninsula Family YMCA operates
a childcare facility at the site. The
facility is at capacity and given
the continued growth of the
biotech center, demand for childcares services in the area will only increase.
Given the deed restriction and the prevalent use, the property must remain in public, governmental use.
However, the Redevelopment Dissolution Statutes are explicit in defining governmental use as “assets
that were constructed and used for governmental purpose, such as roads, school buildings, parks, police
and fire stations, libraries, and local administrative buildings.” The California Department of Finance has
determined that the property’s current use as a childcare center operated by a nonprofit agency does
559 Gateway Blvd.
Amended Long Term Property Management Plan
May 21, 2015
64
not fit the public use criteria of the Redevelopment Dissolution Statutes. Nevertheless, California
Department of Finance recognizes that 559 Gateway is restricted by deed to serve a public purpose,
therefore the property will be sold to the City of South San Francisco for $1.
Upon transfer of the property to the City the grant deed will include language restricting the use of the
property to governmental/public use. In the event that City as Grantee discontinues the restricted use
or seeks to use the property for a non-governmental/public purpose, the City shall enter into a
compensation agreement with the San Mateo County Auditor-Controller or other appropriate entity or
entities, providing that all net revenue from such non-governmental/public use shall be distributed in
the same manner as property tax, subject to then-current law respecting such distribution. For a
description of the proposed grant deed language, see Appendix E.
Per Section 34191.5 (c)(2) of the Health and Safety Code, upon sale of the Property the Successor
Agency will distribute the proceeds to the taxing entities on a pro rata basis in proportion to each
Taxing Entity’s share of the base property tax revenues, as determined by the County Auditor-Controller.
Downtown Central Project Area
28. 938 Linden Avenue
This property was intended to serve as a facility for St. Vincent de Paul’s to provide food services to the
area’s homeless population. Since redevelopment was dissolved before St. Vincent was able to secure
sufficient funding to remodel the building and relocate its services, the property became subject to
dissolution provisions. It is conceivable this property can be reassembled with adjacent properties to
construct a high density residential development in the future however this is not likely given that no
other funds are available to assemble surrounding property. As St. Vincent was unable to secure
funding, this property shall be sold.
Financial Benefit to Taxing Agencies
Per Section 34191.5 (c)(2) of the Health and Safety Code, upon sale of the Property the Successor
Agency will distribute the proceeds to the taxing entities on a pro rata basis in proportion to each
Taxing Entity’s share of the base property tax revenues, as determined by the County Auditor-Controller.
32. 432 Baden Avenue/429 Third Lane
This property was acquired for the development of a public parking lot to serve the 400 block of Grand
Avenue. However, with the development of the Miller Avenue Parking Garage and the passageway
connection to Grand Avenue, this parking lot is not as critical a parking resource to this section of the
downtown as it once was.
Pursuant to the DSASP, the property has the potential to hold up to 12 residential units. The adoption of
the DSASP has significantly increases the property’s value, estimated to be approximately $880,000. The
property will be sold through a negotiated purchase and sale agreement. The Successor Agency will
solicit proposals from developers and select the developer that proposes the highest net value to the
Amended Long Term Property Management Plan
May 21, 2015
65
taxing agencies through a combination of sale proceeds and future tax revenues. The Successor Agency
will negotiate a sale price commensurate to the proposed project and will outline the terms in a
negotiated Purchase and Sale Agreement. In order to facilitate the sale process, it is possible the
Successor Agency will enter into an Exclusive Negotiating Agreement (ENA) with the developer while
negotiating the purchase of the property. The Oversight Board will approve both an ENA and a final
Purchase and Sale Agreement.
Financial Benefit to Taxing Agencies
It is estimated the property is currently worth between $560,000 and $880,000. The lower figure is
based on recent estimates of undeveloped land in the downtown area ($80/ sq. ft.), and the latter figure
based on the development potential. With the adoption of the DSASP, the property can immediately be
developed to its full potential and the taxing agencies will be better off in the long run by having the
Successor Agency sell the property immediately. As summarized below and shown in more detail in
Appendix H and Table 1, the net financial benefit to the taxing agencies would be approximately
$607,000 more (in present value) over a 20 year period.
Per Section 34191.5 (c)(2) of the Health and Safety Code, upon sale of the Property the Successor
Agency will distribute the proceeds to the taxing entities on a pro rata basis in proportion to each
Taxing Entity’s share of the base property tax revenues, as determined by the County Auditor-Controller.
Table 1
Nominal
Cash Flows
Present Value of
Cash Flows
Sell Option $2,216,000 $1,721,000
Retain for
Development Option $1,641,000 $1,113,000
It should be noted that the main reason this property is suitable for disposition is that it is a stand-alone
property that does not affect the development potential or the value of other Successor Agency
properties. The Successor Agency believes that the property is environmentally clean.
27. 216 Miller Avenue (former Ford site)
The Agency acquired this property to ensure the development of high quality housing in the downtown
project area. It is an important component of the City’s and former Agency’s efforts to create a vibrant,
transit-oriented and diverse downtown. Development of this property will provide transit supported
housing and easy connectivity to the downtown South San Francisco Caltrain station.
With the adoption of the DSASP, the number of units that can be developed on the property increased
from 25 units to approximately 50 units, significantly increasing the property’s value. The property’s
residual land value, as a result of the adoption of the DSASP may be as much as $6.1 million.
Amended Long Term Property Management Plan
May 21, 2015
66
The property will be sold through a negotiated purchase and sale agreement. The Successor Agency will
solicit proposals from developers and select the developer that proposes the highest net value to the
taxing agencies through a combination of sale proceeds and future tax revenues. The Successor Agency
will negotiate a sale price commensurate to the proposed project and will outline the terms in a
negotiated Purchase and Sale Agreement. In order to facilitate the sale process, it is possible the
Successor Agency will enter into an Exclusive Negotiating Agreement (ENA) with the developer while
negotiating the purchase of the property. The Oversight Board will approve both an ENA and a final
Purchase and Sale Agreement.
Financial Benefit to Taxing Agencies
It is estimated the property is currently worth approximately $1.4 million based on recent estimates of
undeveloped land in the downtown area ($80/ sq. ft.) but can be worth as much as $6.1 million based
on its development potential. As summarized on Table 2 below and shown in more detail in Appendix H,
the net financial benefit to the taxing agencies would be approximately $1.6 million more (in present
value) over a 20 year period if the buyer develops the property immediately.
Table 2
Nominal
Cash Flows
Present Value of
Cash Flows
Sell Option $6,968,000 $5,259,000
Retain for
Development Option $5,480,000 $3,665,000
Per Section 34191.5 (c)(2) of the Health and Safety Code, upon sale of the Property the Successor
Agency will distribute the proceeds to the taxing entities on a pro rata basis in proportion to each
Taxing Entity’s share of the base property tax revenues, as determined by the County Auditor-Controller.
Given that the taxing agencies will reap the same financial benefit by retaining the property for future
development or selling it immediately, the Successor Agency recommends selling this property. It should
be noted that the main reason this property is suitable for disposition is that it is a stand-alone property
that does not affect the development potential or the value of other Successor Agency properties. The
Successor Agency believes that the property is environmentally clean.
Permissible Use Category: Approved Redevelopment Project Plan
The Redevelopment Plans describes redevelopment projects in each Project Area that would meet the
goals and objectives of the plan and specifically provide for the installation, construction, expansion, and
improvement of public facilities, redevelopment of land by private enterprise and public agencies,
rehabilitation, development or construction of low- and moderate-income housing within the Project
and/or the City. In addition, the Five-Year Implementation Plan presents specific programs and
expenditures that would be undertaken in each of the project areas (based on the goals and objectives
in the respective Redevelopment Plans) and identifies these properties for future development.
Amended Long Term Property Management Plan
May 21, 2015
67
In addition, the use of the property for an approved redevelopment project is in compliance with the
City’s General Plan and the El Camino/Chestnut Area Plan, and it will help achieve five of the General
Plan’s nine components:
Neighborhood-oriented development
Economic development and diversification
Increased connectivity and accessibility
Land use/transportation correlation and promotion of transit
Reinforcement of Downtown as the center of South San Francisco
The General Plan emphasizes the need to improve and develop properties surrounding the BART and
Caltrain stations. Redevelopment of these properties will help to achieve more efficient land use,
stimulate mixed-use, transit-oriented development, and improve connections between residential and
employment centers and transit hubs. In addition, the public improvements and land assembly will
improve transportation and pedestrian linkages and improve residents’ access to every day commercial
needs and increase connectivity and accessibility within and among the Project Areas.
El Camino Corridor Project Area
The following activities described in the Five-Year Implementation Plan are directly relevant to the
development of properties as described in the LRPMP (excerpted from Section II. A pages II-1 and II-3 of
the Implementation Plan): 4
2. Public Facilities–Development of new parks, and reconfiguration of landscaping and playfields
to meet the current needs of residents.
3. Economic Development––The projects and activities will be designed to promote economic
development in the Project Areas and include the..support for mixed-use development in
the…El Camino Corridor Project Area….
4. Property Acquisition, Demolition and Site Preparation–– Major land improvement activities
will include the Chestnut Avenue/CalWater site and acquired from the PUC in the El Camino
Corridor….
5. Affordable Housing Program–The Housing Program promotes residential and mixed-use
development on vacant and underutilized sites. Through this program the Agency will increase
and preserve the low and moderate-income housing stock. Components of this program include
assistance for the construction of new rental and ownership units, loans and grants for
rehabilitation, and first-time homebuyer assistance.
4 See pages II-1 to II-3, South San Francisco Redevelopment Agency, Five-Year Implementation Plan, FY 2009/10–FY 2013/14.
Amended Long Term Property Management Plan
May 21, 2015
68
Chapter 3.4 of the General Plan specifies guiding and implementation policies for the El Camino Real
area, many of which will be facilitated by the proposed development strategy described in the LRPMP:
3.4-G-2 Encourage development of a mix of uses, with pockets of concentrated activity that
provide foci and identity to different parts of El Camino Real.
3.4-G-3 Develop the South San Francisco BART station area as a vital pedestrian center, with
intensity and mix of uses that complement the area’s new role as a regional center.
3.4-I-8 Require any new development within ½ mile of the BART station at a density of no less
than 30 units per net acre for residential uses, or an FAR of 1.5 for non-residential uses, or an
appropriate combination of the two.
3.4-I-13 Develop the El Camino Real/Chestnut Area in accordance with the vision established for
the area by the El Camino Real/Chestnut Area Plan
2-3, 6-7. 1 Chestnut Avenue and Former PUC Properties
APN 093-312-050, APN 093-312-060, APN 011-326-030
El Camino-Chestnut Avenue Property Assemblage
The City of South San Francisco has identified the intersection of El Camino Real and Chestnut Avenue as
a key opportunity site for new development and economic revitalization. The El Camino Real/Chestnut
Avenue Area Plan, adopted in 2011, establishes a compelling long-term vision for the area as a new
mixed-use neighborhood with residential, retail, and civic uses at a range of densities, along with public
plazas and open space that benefit the broader community. The Successor Agency owns approximately
9.5 acres of vacant and underutilized property between El Camino and Mission Road, originally
purchased by the Agency with the goal of facilitating development in an area that faces a variety of
implementation challenges.
Following the dissolution of the Agency in 2012, the Successor Agency is responsible for developing a
strategy for these properties. This could consist of the sale of individual properties, or the entering into
a master development agreement with a single developer identified through a Request for Proposals
(RFP) process or a negotiated purchase and sale agreement. The goal of this recommendation is to
adopt a strategy most likely to maximize the long-term revenue to the taxing agencies while also
maintaining the vision expressed in the former Redevelopment Agency’s El Camino Corridor Project
Plan, the El Camino Real/Chestnut Avenue Area Plan and the City’s General Plan.
The former PUC properties exemplify both the opportunities and challenges of infill development along
El Camino Real in the post-redevelopment era. The relatively large size of the assembled parcels,
combined with their location near the South San Francisco BART station, makes this one of the most
important development opportunity sites along El Camino Real. Nevertheless, the study area has several
physical characteristics that pose significant implementation challenges. There is a sharp slope
downwards from El Camino Real toward Mission Road, with a grade change of up to 50 feet in certain
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locations. The developable parcels are also oddly-shaped due to the BART easement and the Colma
Creek Channel, both of which cut through the site.
The City of South San Francisco has already made substantial public improvements to the area with the
construction of Centennial Way, a multi-use bikeway and linear park constructed on top of the
underground BART tunnel and alongside the Colma Creek channel. The trail provides an open space
connection between the South San Francisco and San Bruno BART Stations for residents, commuters and
recreationalists, offering an alternative to sidewalks along El Camino Real and Mission Road. As of its
completion in May 2009, the trail was 2.85 miles long.
Another major public infrastructure project planned in the study area is the Oak Avenue extension,
which would extend Oak Avenue from Mission Road through to Arroyo Drive, in accordance with the
General Plan. This extension is expected to improve east-west connectivity.
Strategic Economics evaluated the potential for new residential, office retail, and mixed-use
development in the study area with a focus on the next ten years or less (see Appendix I). Strategic
Economics found that the area is well-positioned for residential development with supporting
commercial uses. There is strong demand for new residential development in South San Francisco and
the broader northern San Mateo County area. Employment growth in the Silicon Valley and San
Francisco is a major driver of demand for housing in the market area. The study area offers excellent
access to regional transit and freeways, and is an ideal location for professionals seeking a convenient
commute to job centers in San Francisco or on the Peninsula.
Site Description
The properties included in the development feasibility analysis are shown in Figure 1 on page 71. In
addition to the 9.5 acres owned by the Successor Agency (shown in brown), the development program
includes 2.8 acres that are subject to an easement because they are in the BART right-of-way. Although
the BART tunnel is underground, structural constraints limit improvements that can be made on the
ground above to projects that do not involve any foundation work, and development along this
easement would require BART approval. The Colma Creek Channel, Antoinette Lane and the planned
Oak Avenue extension also play a major role in defining the shape and size of the developable acreage.
For this reason the properties do not follow the parcel configurations described earlier in the LRPMP.
Instead they are divided into the areas described in Figures 1 and on page 71.
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Figure 1
Site A is the southernmost of the three development sites, located between Chestnut Avenue and the
proposed Oak Avenue extension. The site is divided into three subsections by the BART easement and
Antoinette Lane. Each of these parcels is described in more detail below.
Parcel 1 is 1.9 acres with frontage along Antoinette Lane and Chestnut Avenue. It is currently
home to a single-story retail building occupied by Pet Club. This parcel has received interest
from businesses and developers. (Labeled “Site A1” in Figure 1.)
Parcel 2 is a long, shallow parcel between El Camino Real and the BART easement, with a total
area of 1.5 acres. (Labeled “Site A2” in Figure 1.)
Parcel 3 is a triangular 0.9 acre parcel bounded by the proposed Oak Avenue extension, the
BART easement and Antoinette Lane. (Labeled “Site A3” Figure 1.)
Site B is located on the north side of the proposed Oak Avenue extension, bounded by the BART
easement to the southwest and the Colma Creek channel to the northeast. The developable area owned
by the Successor Agency is 1.5 acres; the BART easement is 1.1 acres.
Site C is the largest parcel at 4.5 acres. Located on the north side of the proposed Oak Avenue extension,
it is bounded by the BART easement and Centennial Trail to the southwest and by Mission Road to the
northeast.
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Strategic Economics worked with Successor Agency staff to devise a development program that is both
market driven and consistent with the community’s goals for the study area as expressed in the El
Camino Real/Chestnut Avenue Area Plan and the goals of the El Camino Real Project Plan. The
development program assumes redevelopment of all Successor Agency-owned parcels in a manner
consistent with a master developer approach. In this approach, the property is redeveloped with the
goal of maximizing the combined potential of all of the parcels. Orchestrating development across all
parcels offers three major benefits:
1) Economies of scale. Larger projects can benefit from savings on some “soft” costs of
development such as site planning, entitlements, financing and marketing. In some cases, they can also
save on some of the “hard” costs related with construction. Larger projects are also more likely to be of
sufficient scale to assist in addressing related public improvements in utilities, access, or other
infrastructure.
2) More efficient site design. Developed incrementally, each parcel would need to address access,
parking and open space separately. A master developer approach allows required parking to be
provided in a more economical way, in particular by making use of the BART easement for retail parking
for multiple buildings.
Consistent with findings of the market analysis, the development program consists primarily of
residential uses with some supporting retail. The development program is summarized in Figures 2, and
the drawings are provided in Figures 3 and 4.
Figure 2
3) Development of all Properties. In the event the Successor Agency elected to sell individual
properties, Site C is the only site that would be developed consistent with the Agency’s El Camino
Corridor Project Plan, the El Camino Real/Chestnut Avenue Area Plan and the City’s General Plan. Site A1
would most likely be purchased by a business that would retain the existing use. Site A2 would not be
developed or sold given the site’s development constraints and environmental condition. The size and
accessibility constraints of Site A3 and Site B would most likely preclude the development and sale of
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72
these properties as well. Such outcomes waste a tremendous opportunity to develop hundreds of
housing units in a transit oriented area.
Development Description
Site A consists of three buildings with a total of 194 residential units and 32,000 square feet of retail.
Each building has three to four residential levels over ground floor podium parking and retail. The retail
businesses in all three buildings would be served by 131 shared surface parking spaces on the BART
easement and Antoinette Lane, at a ratio of approximately 4 spaces per 1000 square feet.
Sites B and C are both entirely residential with one floor of ground floor podium parking. Site B contains
100 units in four levels above one level of podium parking. The structured parking is supplemented by
an additional 26 surface parking spots on the BART easement. Site C is developed with 400 residential
units in four levels above two levels of podium parking.
Figure 3
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The financial feasibility results are summarized in Figure 5. Strategic Economics used a “land residual”
approach to test the feasibility of the development program. This method estimates the amount that a
developer can afford to pay for the property based on the expected costs and revenues associated with
the development program. If the residual land value is similar to the expected cost of land, it suggests
that the project is feasible. If the residual land value is less than the expected cost of land, or negative, it
suggests that the project is not feasible.
Figure 5
Figure 4
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For the purposes of the analysis, land values for residential and mixed use development near the study
area are estimated to range from $50 to $75 per square foot. This price range is based on recent
transactions and asking prices for properties in the surrounding area, as well as interviews with brokers
and developers active on the San Francisco Peninsula. It should be noted that land prices vary greatly
depending on the location and specific characteristics of the property, as well as zoning, intended use
and market conditions.
Financial Benefit to Taxing Agencies
While the benefit of the City retaining the properties for future development and the fulfillment of the
El Camino Project Area Plan is the most beneficial option for the City, the property, the residents, the
region and the State, the financial benefit to the taxing agencies is virtually equal between the two
options. As summarized below, and shown in more detail in Appendix H and Table 3, the net financial
benefit to the taxing agencies is virtually equal over a 20 year period. Notwithstanding the financial
benefits of development discussed above, the City and the Taxing Entities will enter into a
Compensation Agreement pursuant to Section 34180(f) as described in the Compensation Agreement
section of this LRPMP.
Table 3
Nominal
Cash Flows
Present Value of
Cash Flows
Sell Option $53,288,000 $41,968,000
Retain for
Development Option $61,944,000 $42,607,000
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Downtown Central Project Area
The goal of the property strategy for the Downtown Central Project Area is to maximize the lo ng-term
revenue to the taxing agencies and achieve the redevelopment plan projects while also maintaining the
vision expressed in the City’s General Plan as well as the Downtown Station Area Specific Plan (DSASP).
The following activities are directly relevant to the development of properties in the downtown as
described in the LRPMP (excerpted from Section II. A pages II-1 and II-3 of the Implementation Plan):
2. Public Facilities–Streetscape improvements to Grand Avenue, the construction of the CalTrain
plaza and other pedestrian plazas…creation of infill parks in the Downtown Central
Area…development of new parks, and reconfiguration of landscaping and playfields to meet the
current needs of residents.
3. Economic Development–The projects and activities will be designed to promote economic
development in the Project Areas and include the following: continued support of Downtown
businesses through property improvement loans, Agency development of new housing in the
Downtown Central Project Area, support for mixed-use development in the Downtown Central …
Project Area….
4. Property Acquisition, Demolition and Site Preparation– Major land improvement activities will
include the Chestnut Avenue/CalWater site … scattered site acquisitions in the Downtown
Central Project Area….
5. Affordable Housing Program–The Housing Program promotes residential and mixed-use
development on vacant and underutilized sites. Through this program the Agency will increase
and preserve the low and moderate-income housing stock. Components of this program include
assistance for the construction of new rental and ownership units, loans and grants for
rehabilitation, and first-time homebuyer assistance.
The General Plan seeks to reinforce the Downtown’s identity and role as the physical and symbolic
center of South San Francisco. General Plan strategies include increased residential development in the
Downtown and better connections to surrounding areas. Chapter 3.1 of the General Plan specifies
guiding and implementation policies for the Downtown area, many of which will be facilitated by the
proposed development strategy described in the LRPMP:
3.1-G-1 Promote the Downtown’s vitality and economic well-being and its presence as the city’s
center.
3.1-G-2 Encourage development of Downtown as a pedestrian-friendly mixed-use activity
center….
3.1-G-3 Promote infill development, intensification and reuse of currently underutilized sites.
3.1-I-3 Maintain land uses and development intensities in Downtown.
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Downtown Station Area Specific Plan (DSASP)
The City of South San Francisco recently adopted the Downtown Station Area Specific Plan (DSASP) for
the area surrounding the City’s Caltrain commuter rail station, located just east of Highway 101.The
DSASP Area is located within one half mile of the South San Francisco Caltrain station, and includes the
majority of commercial and civic development Downtown. A portion of the Plan Area extends east of
Highway 101.
A primary goal of the DSASP is to implement transit-supportive development in Downtown South San
Francisco that meets the diversity and affordability needs of the local community. In pursuit of this goal,
the DSASP seeks to improve accessibility between the Caltrain station, Downtown, and the employment
center east of Highway 101. The DSASP effort requires an analysis of land uses that can support these
objectives, including additional housing opportunities, retail development, and office development, and
an evaluation of existing development standards, such as parking requirements.
At present, the Caltrain station is currently situated between the downtown and the employment area
east of Highway 101; however the highway, ramps, and overpasses create physical barriers that
separate the Downtown from the employment center and limit accessibility to the Caltrain station from
all directions. As a result the South San Francisco Caltrain station is significantly underutilized due
primarily to these accessibility issues.
The City adopted the DSASP and the accompanying environmental impact report on January 28, 2015.
The recent adoption of the DSASP has a significant impact on all of the properties in the downtown area
due to its zoning revisions. The new zoning increases allowable densities, thereby enhancing the transit
oriented nature of the area. Since the adoption of the DSASP, the value of developable sites has
increased dramatically as a result of the zoning changes which allow for greater development intensity.
All of the downtown properties currently owned by the Successor Agency have benefited from the
DSASP. Their values have increased and their ability to fulfill the RDA Downtown Project Area plan have
been enhanced. However, the ability to achieve these goals will be contingent on various sites remaining
assembled in order to meet their development potential. Appendix J is a study of the development
potential for all sites in the downtown area.
15-18. 201, 207, 217-219, and 227 Grand Avenue
Grand-Cypress Property Assemblage
The Grand-Cypress properties sit at the gateway to Downtown South San Francisco. The properties are
an important component of the City’s and the former Agency’s efforts to create a vibrant, transit-
oriented and diverse downtown. Development of these properties and other sites owned by the
Successor Agency will craft a vision for the Downtown core that provide transit supported housing and
easy connectivity to the downtown South San Francisco Caltrain station.
Site Description
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The Agency acquired these properties over the years to create a 27,200 sq. ft. lot assemblage that would
be ideal for a major transit oriented development. Despite the dissolution of redevelopment, City staff
has been working with a developer that created conceptual plans to develop a 37-unit residential
development with 8,000 sq. ft. of retail space (see Figure 6).
Under present conditions, the Successor Agency believes 217-219 Grand Avenue could be sold on its
own for approximately $1.2 million. However, it is unlikely that the remaining unimproved properties
would sell. More importantly, the individual sale of 217-219 Grand Avenue would eliminate the
possibility of developing a high density housing development that would fulfill the Redevelopment Plan,
region and State goals of developing transit oriented housing. The highest and best use of this property
is to develop a project with high intensity uses. Therefore, to ensure this type of development occurs,
the Successor Agency and/or the City will merge these parcels into a single parcel.
Figure 6
Because of current market conditions, it is estimated that the residual land value of the Grand-Cypress
property assemblage is zero or slightly negative. However, since the adoption of the DSASP and the
increased development and desirability of the area as a result of its full transition into a full TOD area,
the residual land value the Grand-Cypress assemblage is estimated to be $1.5 million.
Financial Benefit to Taxing Agencies
Although the taxing agencies would receive an immediate benefit from the sale of the 217-219 Grand
Avenue, in the long run the taxing agencies would receive a greater benefit as a result of the
development of the entire site from the property taxes generated by a new development. As
summarized below and shown in more detail in Appendix H and Table 4, the net financial benefit to the
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78
taxing agencies would be almost $1 million more (in present value) over a 20 year period. With a
development estimated to be completed in 2016/17, the breakeven point between immediate sale of
some properties and the property tax generated from a new development would occur in approximately
14 years (2027/28) for the taxing agencies.
Table 4
Nominal
Cash Flows
Present Value of
Cash Flows
Sell Option $2,451,000 $2,218,000
Retain for
Development Option $4,674,000 $3,217,000
19-21. 200 Linden Avenue and 212 and 216 Baden Avenue
Linden/Baden Avenue Land Assemblage
The Linden/Baden Avenue properties sit in the heart of Downtown South San Francisco. The properties
are an important component of the City’s and former Agency’s efforts to create a vibrant, transit-
oriented and diverse downtown. Development of these properties will provide transit supported
housing and easy connectivity to the downtown South San Francisco Caltrain station.
Site Description
The Agency acquired these properties over the years to create a 31,404 sq. ft. (0.72 acre) lot assemblage
that would be ideal for a major transit oriented development. The Successor Agency worked with a
consultant to estimate the development potential of the site. The development consultant estimates
that since the adoption of the DSASP, the residential development potential of the sites is 100 units and
6,500 sq. ft. of retail space.
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Under present conditions, the Successor Agency believes the property at 200 Linden Avenue may
potentially be sold on its own for approximately $1.6 million. However, it is unlikely that the remaining
unimproved properties would sell for an extended period of time. More importantly, the individual sale
of 200 Linden Avenue would eliminate the possibility of developing a high density housing development
that would fulfill the Redevelopment Plan, region and State goals of developing transit oriented housing.
The highest and best use of this property is to develop a project with high intensity uses. Therefore, to
ensure this type of development occurs, the Successor Agency and/or the City will merge these parcels
into a single parcel.
With the adoption of the DSASP and the increased development and desirability of the area as a result
of its full transition into a full TOD area, the residual land value the Linden/Baden assemblage is
estimated to be $2 million.
Financial Benefit to Taxing Agencies
Although the taxing agencies would receive an immediate benefit from the sale of 200 Linden Avenue,
in the long run the taxing agencies would receive a greater benefit as a result of the development of the
entire site from the property taxes generated by a new development. As summarized below and shown
in more detail in Appendix H and Table 5, the net financial benefit to the taxing agencies would be
almost $4.9 million more (in present value) over a 20 year period. With a development estimated to be
completed in 2017/18, the breakeven point for the taxing agencies would occur in approximately 8
years (2021/22). Notwithstanding the financial benefits of development discussed above, the City and
the Taxing Entities will enter into a Compensation Agreement pursuant to Section 34180(f) as described
in the Compensation Agreement section of this LRPMP.
Table 5
Nominal
Cash Flows
Present Value of
Cash Flows
Sell Option $3,047,000 $2,795,000
Retain for
Development Option $11,199,000 $7,708,000
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22. 315 Airport Blvd.
315 Airport Blvd. is the first property visible to drivers exiting southbound Highway 101. It also has
strong visibility to drivers continuing along Highway 101. The property is an important component of the
City’s and the former Agency’s efforts to create a vibrant, transit-oriented and diverse downtown.
Development of this property will provide transit supported housing and easy connectivity to the
downtown South San Francisco Caltrain station.
Located in the heart of downtown South San Francisco, the highest and best use of the property is to
develop it with high intensity uses. The property is currently large enough to be developed on its own,
however, two adjacent parcels immediately south of the property are underutilized. The property at 305
Airport Blvd. contains an older commercial building that is vacant and the property at 309 Airport is an
SRO hotel that has been informally offered to the City in the past. Combining the two properties with
315 Airport Blvd. would form a 0.85 acre site (37,341 sq. ft.), see Figures 7 and 8 below. Such
assemblage could best be accomplished by having the City work with a developer that is interested in
pursuing a larger project that would incorporate all three parcels.
305 Airport 309 Airport 315 Airport
Vacant, former automotive store SRO hotel (Partial view)
Figure 8
Figure 7
309 Airport
305 Airport
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Site Description
This 22,136 sq. ft. (0.51 acre) property is ideal for a major transit oriented development. The Successor
Agency worked with a consultant to estimate the development potential of the site. The development
consultant estimates that with the adoption of the DSASP, the residential development potential of the
sites is to 58 units and 9,000 sq. ft. of retail space.
Under present conditions (including poor condition of building, allowable uses and development
challenges), the Successor Agency believes the property at 315 Airport Blvd. would be difficult to sell.
Nevertheless, a land speculator may be interested in purchasing the property at a discounted price and
holding it for development or reselling it to a developer in the future. It is estimated that the property
would sell at between $1.8 and $2.1 million. If sold, it is likely that the property will remain undeveloped
for an extended period of time, thus eliminating the near term possibility of developing a high density
housing development that would fulfill the Redevelopment Plan, region and State goals of developing
transit oriented housing.
With the adoption of the DSASP and the increased development and desirability of the area as a result
of its full transition into a full TOD area, the property will experience an increase in residual land value.
Because it is a challenging development site, it is likely that the value will still be quite small, at
approximately $80,000. With the acquisition of 305-309 Airport Blvd, a developer could achieve higher
economies of scale and build a larger project that would result in a higher residual land value and a
greater benefit to the taxing agencies in the long run.
Financial Benefit to Taxing Agencies
Although the taxing agencies may receive a benefit from the sale of 315 Airport Blvd., in the long run the
taxing agencies would receive a greater benefit in the form of property taxes generated by a new
development if the City is able to advance the development of site. As summarized below and shown in
more detail in Appendix H and Table 6, the net financial benefit to the taxing agencies would be almost
$2.3 million more (in present value) over a 20 year period. With a development estimated to be
completed in 2016/17, the breakeven point for the taxing agencies would occur in approximately 11
years (2024/25). Notwithstanding the financial benefits of development discussed above, the City and
the Taxing Entities will enter into a Compensation Agreement pursuant to Section 34180(f) as described
in the Compensation Agreement section of this LRPMP.
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Table 6
Nominal
Cash Flows
Present Value of
Cash Flows
Sell Option $2,68,000 $2,470,000
Retain for
Development Option $6,873,000 $4,731,000
23-25. 401, 411 and 421 Airport Blvd.
400 Block Airport Blvd. Land Assemblage
Consisting of 1.06 acres, the properties on the 400 block represent the single largest development
opportunity in downtown South San Francisco. The properties have strong visibility to drivers continuing
along Highway 101. The property is an important component of the City’s and the former Agency’s
efforts to create a vibrant, transit-oriented and diverse downtown. Development of this property will
provide transit supported housing and easy connectivity to the downtown South San Francisco Caltrain
station.
Site Description
This 43,043 sq. ft. (1.06 acre) property is ideal for a major transit oriented development. The Successor
Agency worked with a consultant to estimate the development potential of the site. The development
consultant estimates that under current conditions the site could accommodate 81 residential units and
8,000 sq. ft. of retail space. Upon adoption of the DSASP, the residential development potential of the
sites increases to 162 units and 8,000 sq. ft. of retail space.
Under present conditions (including the reduced number of residential units), the Successor Agency
believes the property at 411 Airport Blvd. has the potential to be sold on its own for approximately $1
million. If 411 Airport Blvd. is sold on its own, it is unlikely the remaining unimproved properties would
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sell for an extended period of time. It is possible a land speculator may be interested in purchasing the
entire property at a discounted price and holding for it development or reselling it to a developer in the
future. The highest and best use of this property is to develop a project with high intensity uses.
Therefore, to ensure this type of development occurs, the Successor Agency and/or the City will merge
these parcels into a single parcel.
Because of its reduced development potential, it is estimated that the residual land value of the 400
block of Airport Blvd. is negative (-$7.2 million). However, with the adoption of the DSASP and the
increased development and desirability of the area as a result of its full transition into a full TOD area,
the property will experience an increase in residual land value to $3 million.
Financial Benefit to Taxing Agencies
Although the taxing agencies may receive a benefit from the sale of 411 Airport Blvd., or the potential
sale of the entire site to speculative buyer, in the long run the taxing agencies would receive a greater
benefit in the form of property taxes generated by a new development if the City is able to advance the
development of site. As summarized below and shown in more detail in Appendix H and Table 7, the net
financial benefit to the taxing agencies would be approximately $12.3 million more (in present value)
over a 20 year period. With a development estimated to be completed in 2016/17, the breakeven point
for the taxing agencies would occur in approximately 8 years (2021/22). Notwithstanding the financial
benefits of development discussed above, the City and the Taxing Entities will enter into a
Compensation Agreement pursuant to Section 34180(f) as described in the Compensation Agreement
section of this LRPMP.
Table 7
Nominal
Cash Flows
Present Value of
Cash Flows
Sell Option $4,811,000 $4,313,,000
Retain for
Development Option $17,836,000 $12,277,000
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26. 405 Cypress Avenue
Consisting of 8,763 sq. ft., 405 Cypress Avenue has a moderate development opportunity. Nevertheless,
coupled with other properties being developed in the area, this property has the potential to be
developed according to the former Agency’s plan. Development of this property will provide transit
supported housing and easy connectivity to the downtown South San Francisco Caltrain station.
Site Description
This 8,762 sq. ft. (0.2 acre) property has the potential to be a transit oriented development. The
Successor Agency worked with a consultant to estimate the development potential of the site. The
development consultant estimates that under current conditions the site could accommodate 14
residential units. Upon adoption of the DSASP, the residential development potential of the sites
increases to 28 units.
The highest and best use of this property is to develop a project with high intensity uses. The property is
marginally large enough to be developed on its own under current market condition. However, one
adjacent parcel immediately west of the property are underutilized. The property at 204 Miller Avenue
is an older commercial building that is vacant. Combining the two properties would form a 15,762 sq. ft.
site (see Figures 9 and 10 below) that would increase the viability of the site. Such assemblage could
best be accomplished by having the City work with a developer that is interested in pursuing a larger
project that would incorporate both parcels.
Under present conditions (including the reduced number of residential units), the Successor Agency
believes the property has little sales potential. It is unlikely that a developer or land speculator would be
interested in this property until all major sites in the downtown are developed.
Because of its reduced development potential, it is estimated that the residual land value of the 405
Cypress Avenue is negative (-$1.2 million). However, with the adoption of the DSASP and the increased
development and desirability of the area as a result of its full transition into a full TOD area, the property
will experience an increase in residual land value to $650,000. With the acquisition of 204 Miller, a
developer could achieve economies of scale and build a larger project that would result in a higher
residual land value and a greater benefit to the taxing agencies in the long run.
Figure 9 Figure 10
405 Cypress 204 Miller
204 Miller
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Financial Benefit to Taxing Agencies
In the short- to medium term, it is unlikely the taxing agencies will receive any benefit from the sale of
405 Cypress Avenue. The greatest potential for this site is if it is bundled with properties on the 400
Block of Airport Blvd. and is developed as part of that project. As summarized below, and shown in more
detail in Appendix H and Table 8, the net financial benefit to the taxing agencies of having the City hold
the property for development would be approximately $1.2 million more (in present value) over a 20
year period. With a development estimated to be completed in 2018/197, the breakeven point for the
taxing agencies would occur in approximately 10 years (2021/22). Notwithstanding the financial benefits
of development discussed above, the City and the Taxing Entities will enter into a Compensation
Agreement pursuant to Section 34180(f) as described in the Compensation Agreement section of this
LRPMP.
Table 8
Nominal
Cash Flows
Present Value of
Cash Flows
Sell Option $893,000 $845,000
Retain for
Development Option $3,094,000 $2,070,000
29. 905 Linden Avenue
The highest and best use of the property is to construct a high density residential project. The property
is one mile away from the downtown’s transit hub but nevertheless has the potential to be a
development site due to its proximity to the downtown core.
Site Description
This 15,000 sq. ft. (0.34 acre) property has the potential to be developed on its own or by combining it
with adjacent private properties. The Successor Agency worked with a consultant to estimate the
development potential of the site. The development consultant estimates that under current conditions
the site could accommodate 11 residential units. Although this site is outside of the DSASP area it will
still benefit from DSASP adoption as the desirability of the area will grow over time.
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Under present conditions (including environmental conditions and development challenges), the
Successor Agency believes the property at 905 Linden Avenue would sell to a developer interested in a
smaller development site. A comparable vacant property across from 905 Linden Avenue recently sold
and is being developed as a 5 unit residential project. The comparable property is 7,559 sq. ft. and sold
for $600,000 ($79.38/sq. ft.)
It is estimated that 905 Linden would sell for approximately $1.1 million if sold with all environmental
remediation completed. However, it is estimated the property would have to be discounted by $100,000
to $200,000 if sold without remediation. An updated phase II environmental study will be necessary
before the property is listed for sale.
Financial Benefit to Taxing Agencies
The taxing agencies will receive the financial benefit from the sale of this property and in the long-term
benefit from the property taxes generated by a new development. As summarized below and shown in
more detail in Appendix H and Table 9, the net financial benefit to the taxing agencies would be
approximately $928,000 (present value) in sales proceeds and property tax revenue upon the sale of the
property, and an additional $764,000 (present value) in property taxes over a 20 year period. A sale is
estimated to occur in 2016/17 and a development could be completed in 2019/20. Notwithstanding the
financial benefits of development discussed above, the City and the Taxing Entities will enter into a
Compensation Agreement pursuant to Section 34180(f) as described in the Compensation Agreement
section of this LRPMP.
Table 9
Nominal
Cash Flows
Present Value of
Cash Flows
Sales and TI Revenue
(Sold in 2016/17) $928,000 $848,000
TI from Retaining for
Development $1,158,000 $764,000
Amended Long Term Property Management Plan
May 21, 2015
87
30-31. 616 and 700 Linden Avenue
616-700 Linden Avenue Assemblage
The highest and best use of this property is to retain it and sell it for a high density residential
development that can be built in the future. The two sites are relatively small and have petroleum
compound contamination in the soil and groundwater. Despite these difficulties, the properties will
serve well as transit oriented housing because of their proximity to the downtown’s transit hub and the
Caltrain station.
Site Description
Each property is 14,387 sq. ft. (0.33 acres) for a combined total of 0.67 acres. It would be challenging to
develop each of these properties individually but combined they can be suitable for development. The
Successor Agency worked with a consultant to estimate the development potential of the sites. The
development consultant estimates that under current conditions the sites could accommodate 40
residential units. Although this site is outside of the DSASP area it will still benefit from DSASP adoption
as the desirability of the area will grow over time.
A comparable vacant property at the corner of Linden and Armour Avenue recently sold and is being
developed as 5 residential units. The recently sold property is 7,559 sq. ft. and sold for $600,000
($79.38/ sq. ft.). It is estimated that 616 and 700 Linden would sell for approximately $1,680,000 ($60/
sq. ft.) if sold with all environmental remediation completed. It is estimated the properties would have
to be discounted by $200,000 to $400,000 if sold without remediation. An updated phase II
environmental study will be necessary before the property is listed for sale.
Financial Benefit to Taxing Agencies
The taxing agencies will receive the financial benefit from the sale of this property and in the long-term
benefit from the property taxes generated by a new development. As summarized below and shown in
more detail in Appendix H and Table 10 the net financial benefit to the taxing agencies would be
approximately $1,056,000 (present value) in sales proceeds and property tax revenue upon the sale of
the property and an additional $1,300,000 (in present value) over a 20 year period. The sale is estimated
to occur in 2016/17 and a development is estimated to be completed in 2019/20.
Table 10
Nominal
Cash Flows
Present Value of
Cash Flows
Sales and TI Revenue
(Sold in 2016/17) $1,155,000 $1,056,,000
TI from Retaining for
Development $1,971,000 $1,300,000
Amended Long Term Property Management Plan
May 21, 2015
88
Conclusion
In summary and for the reasons set forth above, this LRPMP directs that each property be used or sold
for a project identified in the approved Redevelopment Plan in accordance with Health and Safety Code
Section 34191.5(c)(2)(A). Upon approval of this LRPMP, the properties will transfer from the Community
Redevelopment Property Trust Fund to the City, subject to the terms of this LRPMP. The Successor
Agency is authorized and directed to take all actions necessary to cause such transfer of each Property
to the City and to take all necessary steps to carry out goals and objectives of the LTPMP. To carry out
the goals and objectives of the LTPMP the City will take the following steps:
Designation of Land as not “surplus property”
Because the City is obligated to dispose of the Properties in accordance with this LRPMP and to satisfy
goals, objectives and purposes of the Redevelopment Plan and the Redevelopment Dissolution Statutes,
the Properties are not "surplus" property of the City and are not subject to the disposition requirements
and procedures of the Surplus Lands Act (Government Code Section 54220 et seq.). Instead, disposition
of the Properties in accordance with this LRPMP and to satisfy goals, objectives and purposes of the
Redevelopment Plan and the Redevelopment Dissolution Statutes constitutes a "common benefit" that
may take place under authority of Government Code Section 37350 and/or other disposition authority
deemed appropriate by the City. The provisions of the California Environmental Quality Act and
Government Code Section 65402(a) regarding General Plan conformance will apply to the disposition of
each property.
Guidelines for the Development of Properties
Upon the transfer of properties pursuant to this LRPMP, and pursuant to the Redevelopment Dissolution
Law, the City will use a number of methods and procedures to advance the development of the
properties to their full potential. The methods and procedures the City uses will depend on the
Amended Long Term Property Management Plan
May 21, 2015
89
marketability, financial feasibility, accessibility, condition and complexity of the properties. These
methods will include, but not be limited, to:
Request for Qualifications (RFQ) – to identify prospective developers
Request for Proposals (RFP) – to obtain bids for development projects
Exclusive Negotiating Rights Agreements (ENRA) – to negotiate with specific
developers on properties posing significant development challenges
Disposition and Development Agreements (DDA) – to dispose of land pursuant
a development agreement
Cooperation Agreements – to include the City’s participation in the
development of properties posing significant development challenges that
necessitate public participation in order to advance the development of the
property or a public goal such as (but not limited to) affordable housing
The guidelines will apply to the properties retained for future development and the properties with
development potential in the Sale category (i.e. 432 Baden Avenue and 216 Miller Avenue).
Use of Sales Proceeds
The proceeds received from the sale of the LRPMP Properties, if any, are anticipated to be programmed
to advance the development of the properties in accordance with the Redevelopment Plan and the
Redevelopment Dissolution Statutes goal of creating Transit Oriented Development. Proceeds if any will
be used for the following purposes:
Environmental remediation of contaminated properties – for example, several
properties have environmental contamination that must be removed prior to
being suitable for residential development or public use.
Development of infrastructure that enhances the development potential of
properties – for example, in order to make possible and maximize the
development of the former PUC properties, it will be necessary to complete
construction of the Oak Avenue Extension.
Cooperation agreements with developers to facilitate the development of
properties – for example, the City will incorporate the inclusion of affordable
housing within a proposed market rate development, or on a selected site, to
provide the minimum required number of affordable units under of the former
Redevelopment Plans.
Relocation – for example, relocate businesses in Agency owned properties to
facilitate development.
Improvements to Public Use properties in the LRPMP that advance the goals of
the Redevelopment Dissolution Statutes such as TOD and the former
Redevelopment Plans.
Amended Long Term Property Management Plan
May 21, 2015
90
Compensation Agreement
For each property to be transferred to the City pursuant to Section 34191.5(c)(2)(A) and this LRPMP, the
City and the Taxing Entities will enter into a Compensation Agreement pursuant to Section 34180(f).
Each Compensation Agreement entered into by the City and Taxing Entities shall:
A. Address compensation to the Taxing Entities for one or more of the properties that is
transferred to the City in accordance with Health and Safety Code Section 34191.5(c)(2)(A) and
this LRPMP;
B. Be approved by the Oversight Board;
C. Be reviewed and approved by DOF, by operation of law or otherwise, following Oversight Board
approval;
D. Be executed by the City and all of the Taxing Entities as identified by the County Auditor-
Controller, and by the County Auditor-Controller if required;
E. Provide that specified proceeds from the subsequent disposition of the property or properties
by the City pursuant to a DDA will be distributed to all of the Taxing Entities on a pro rata basis
in proportion to each Taxing Entity’s share of the base property tax revenues, as determined by
the County Auditor-Controller;
F. Provide for the retention by the City of specified proceeds from the subsequent disposition of
the property or properties by the City pursuant to a DDA to reimburse the City for the costs
incurred for maintenance, improvement and disposition of the property or properties, for
procurement of pollution legal liability insurance related to the property or properties and for
the relocation of any tenants subject Federal and State relocation laws and regulations;
G. May contain other mutually acceptable terms to implement the intent of Sections 34180(f) and
34191.5 and this LRPMP with respect to the property or properties.
Amended Long Term Property Management Plan
May 21, 2015
90
Compensation Agreement
For each property to be transferred to the City pursuant to Section 34191.5(c)(2)(A) and this LRPMP, the
City and the Taxing Entities will enter into a Compensation Agreement pursuant to Section 34180(f).
Each Compensation Agreement entered into by the City and Taxing Entities shall:
A. Address compensation to the Taxing Entities for one or more of the properties that is
transferred to the City in accordance with Health and Safety Code Section 34191.5(c)(2)(A) and
this LRPMP;
B. Be approved by the Oversight Board;
C. Be reviewed and approved by DOF, by operation of law or otherwise, following Oversight Board
approval;
D. Be executed by the City and all of the Taxing Entities as identified by the County Auditor-
Controller, and by the County Auditor-Controller if required;
E. Provide that specified proceeds from the subsequent disposition of the property or properties
by the City pursuant to a DDA will be distributed to all of the Taxing Entities on a pro rata basis
in proportion to each Taxing Entity’s share of the base property tax revenues, as determined by
the County Auditor-Controller;
F. Provide for the retention by the City of specified proceeds from the subsequent disposition of
the property or properties by the City pursuant to a DDA to reimburse the City for the costs
incurred for maintenance, improvement and disposition of the property or properties, for
procurement of pollution legal liability insurance related to the property or properties and for
the relocation of any tenants subject Federal and State relocation laws and regulations;
G. May contain other mutually acceptable terms to implement the intent of Sections 34180(f) and
34191.5 and this LRPMP with respect to the property or properties.
Notwithstanding the foregoing or any other provision of the LRPMP, no Compensation Agreement shall
be required, and the City may retain any proceeds from the disposition of a property, if a court order,
legislation or DOF policy reverses DOF’s directive regarding the need for a Compensation Agreement. In
such case, any net disposition proceeds (as defined in Paragraph F above) received by the City for the
disposition of a property pursuant to a DDA shall be used by the City to pay costs of one or more
projects identified in the Redevelopment Plan.
Amended Long Term Property Management Plan
May 21, 2015
91
Appendices
Appendix A – DOF LRPMP Property Tracking Worksheet
Appendix B – Property Parcel Maps
Appendix C – Appraisal 011-326-030 (Chestnut/El Camino Real) Excerpt
Appendix D – Environmental Report Excerpts
Appendix E – Transfer Grant Deed Language for 559 Gateway Blvd.
Appendix F – Transfer Grant Deed Language for Public Use Properties
Appendix G – Transfer Grant Deed Language for 472 Grand Ave./306 Spruce
Ave.
Appendix H – Property Tax Increment Projections
Appendix I – Strategic Economics SSF ECHO II Study of PUC Properties
Appendix J – Brookwood Group Memorandum on Downtown Properties
Development
Appendices
Appendix A
DOF LRPMP Property Tracking Worksheet
HSC 34191.5 (c)(1)(B)
No.
Property
Type
Permissible
Use Permissible Use Detail
Acquisition
Date
Value at Time of
Purchase
Estimated
Current Value
Value
Basis
Date of
Estimated
Current
Value
Proposed
Sale Value
Proposed
Sale Date
Purpose for which
property was acquired Address APN #
Lot Size
(sq.ft.) Current Zoning
1 Commercial
Governmental
Use
Restrictive covenants requiring
use for: a) operation of a child
day care facility; b) a public
library; c) a public office facility
as an amenity to the property.28-May-03 $1,259,000 $1,259,000 Book May-03 N/A N/A
Construction a childcare
center
559 Gateway
Blvd.015-024-490 30,330
Gateway Specific Plan with
a General Plan designation
of Business Commercial
2
Vacant
Lot/Land
Future
Development
High Density Mixed-Use
Development 31-Jan-08
$21,060,000
(inclusive of
properties #2-6)TBA Market Sep-13 N/A N/A
Development of a mixed-
use district at the center of
South San Francisco No address 093-312-050
331,056
(inclusive
of #2-3) Transit Village district
3
Vacant
Lot/Land
Future
Development
High Density Mixed-Use
Development 31-Jan-08
$21,060,000
(inclusive of
properties #2-6)$11,939,915 Market Sep-13 N/A N/A
Development of a mixed-
use district at the center of
South San Francisco No address 093-312-060
331,056
(inclusive
of #2-3) Transit Village District
4
Vacant
Lot/Land
Governmental
Use Public Park 31-Jan-08
$21,060,000
(inclusive of
properties #2-6)
$2,417,580
(inclusive of
properties #4-5) Market Sep-13 N/A N/A
Development of a mixed-
use district at the center of
South San Francisco No address 093-331-050
161,172
(inclusive
of #4-5) Transit Village District
5 Other
Governmental
Use Public Park 31-Jan-08
$21,060,000
(inclusive of
properties #2-6)
$2,417,580
(inclusive of
properties #4-5) Market Sep-13 N/A N/A
Development of a mixed-
use district at the center of
South San Francisco No address 093-331-060
161,172
(inclusive
of #4-5) Transit Village District
6
Vacant
Lot/Land
Future
Development
High Density Mixed-Use
Development 31-Jan-08
$21,060,000
(inclusive of
properties #2-6)$970,000 Appraised Sep-13 N/A N/A
Development of a mixed-
use district at the center of
South San Francisco No address 011-326-030 82,764 Transit Village District
7 Commercial
Future
Development
High Density Mixed-Use
Development 11-Jan-08 $6,500,000 $4,438,080 Appraised 11-May-12 N/A N/A
Essential for the
development of the former
PUC Properties;
implementation of the
Redevelopment Plan for the
El Camino Project Area. 1 Chestnut Ave.011-322-030 72,000
El Camino Real/Chestnut
Avenue Area, Mixed Use
High Intensity
8
Public
Building
Governmental
Use
Expansion of Orange Memorial
Park 21-Dec-07 $1,100,000 $1,100,000 Book N/A N/A N/A
Expand Orange Memorial
Park
80 Chestnut
Ave.011-324-190 30,330 Public/Quasi-Public
9
Police/Fire
Station
Governmental
Use Fire Station 61 28-Apr-04 $3,650,000 $3,650,000 Book 28-Apr-04 N/A N/A
Public safety, relocation of
fire station serving project
area.
480 North Canal
St. 014-061-110 75,260
Mixed Industrial per the
General Plan
10
Vacant
Lot/Land
Governmental
Use
Caltrain station extension and
pedestrian access
improvements 28-Jan-10 $763,000 $763,000 Book 28-Jan-10 N/A N/A
Caltrain station extension
and pedestrian access
improvements 296 Airport Blvd.012-338-160 24,325 Public/Quasi-Public
LONG RANGE PROPERTY MANAGEMENT PLAN: PROPERTY INVENTORY DATA
County: San Mateo County
HSC 34191.5 (c)(2)HSC 34191.5 (c)(1)(A)HSC 34191.5 (c)(1)(C)SALE OF PROPERTY
Page 1
No.
1
2
3
4
5
6
7
8
9
10
HSC 34191.5
(c)(1)(D)HSC 34191.5 (c)(1)(F)HSC 34191.5 (c)(1)H)
Estimate of Current
Parcel Value
Estimate of
Income/ Revenue
Contractual requirements for use of
income/revenue
History of environmental
contamination, studies, and/or
remediation, and designation as a
brownfield site
Description of property's potential for transit
oriented development
Advancement of planning objectives
of the successor agency
History of previous development
proposals and activity
$1,259,000 ($500.00/month)
Annual rent waived, but SA must pay
$500/mo for Gateway Association fees No recognized environmental condition
Restricted to public benefit uses. However, the site
benefits from regional employee shuttle services,
operated by both Genentech and the Congestion
Management Relief Alliance, which allows
employees to use the Caltrain and BART stations.
Furthers the Gateway Redevelopment
Plan’s goals of providing affordable
childcare
In compliance with Restrictive
Covenants conveying the property
to the Redevelopment Agency. The
property is leased to the Peninsula
Family YMCA.
TBA $ -
None No recognized environmental condition
Sitting along El Camino Real and in close proximity
to the BART station, the former PUC properties are
suitable for transit oriented development. This
proposed efficient use of land creates a pedestrian
oriented, walkable area close to transit.
Promote Transit Oriented Development
(Grand Blvd. Initiative, El Camino Real
Master Plan, South San Francisco
General Plan Housing Element, South
El Camino Real General Plan
Amendment)
Prior to the acquisition, the PUC
had not considered any
development proposals of
consequence.
$11,939,915 $ -
None No recognized environmental condition
Sitting along El Camino Real and in close proximity
to the BART station, the former PUC properties are
suitable for transit oriented development. This
proposed efficient use of land creates a pedestrian
oriented, walkable area close to transit.
Promote Transit Oriented Development
(Grand Blvd. Initiative, El Camino Real
Master Plan, South San Francisco
General Plan Housing Element, South
El Camino Real General Plan
Amendment)
Prior to the acquisition, the PUC
had not considered any
development proposals of
consequence.
$2,417,580
(inclusive of
properties #4-5) $ -
None No recognized environmental condition
Sitting along El Camino Real and in close proximity
to the BART station, the former PUC properties are
suitable for transit oriented development. This
proposed efficient use of land creates a pedestrian
oriented, walkable area close to transit.
Promote Transit Oriented Development
(Grand Blvd. Initiative, El Camino Real
Master Plan, South San Francisco
General Plan Housing Element, South
El Camino Real General Plan
Amendment)
Prior to the acquisition, the PUC
had not considered any
development proposals of
consequence.
$2,417,580
(inclusive of
properties #4-5) $ -
Revocable Permit between the Agency
and the Boys and Girls Club including
provisions: 1) no rent, 2) the Permit has no
sunset clause and can be revoked at any
time.
No recognized environmental condition
Sitting along El Camino Real and in close proximity
to the BART station, the former PUC properties are
suitable for transit oriented development. This
proposed efficient use of land creates a pedestrian
oriented, walkable area close to transit.
Promote Transit Oriented Development
(Grand Blvd. Initiative, El Camino Real
Master Plan, South San Francisco
General Plan Housing Element, South
El Camino Real General Plan
Amendment)
Prior to the acquisition, the PUC
had not considered any
development proposals of
consequence.
$970,000 $ -
None
The Agency conducted Phase I and
Phase II assessments contamination of
TEPH-mo
Sitting along El Camino Real and in close proximity
to the BART station, the former PUC properties are
suitable for transit oriented development. This
proposed efficient use of land creates a pedestrian
oriented, walkable area close to transit.
Promote Transit Oriented Development
(Grand Blvd. Initiative, El Camino Real
Master Plan, South San Francisco
General Plan Housing Element, South
El Camino Real General Plan
Amendment)
Prior to the acquisition, the PUC
had not considered any
development proposals of
consequence.
$4,438,080 $23,620.00/year
The term of the lease with Pet Club is
three years (36 months) at a gross rate of
$37,519 per month, with an option to
extend 12 months. A $500,000 tenant
improvement allocation to Pet Club from
the Successor Agency/Oversight Board
includes a pay back of $13,899 per month
for three years resulting in a net rent of
$23,620.
No recognized environmental condition
Ideal location along Chestnut Avenue in close
proximity to El Camino Real and the South San
Francisco BART station. Key property for
advancing the City's Transit Village Zoning District.
The Agency purchased 1 Chestnut
Avenue as an essential property in the
implementation of the Transit Village
Zoning District and the Redevelopment
Plan for the El Camino Project Area.
At the time of acquisition the
property housed Ron Price Motors.
The property is currently leased to
Red Cart Market, Inc., doing
business as Pet Club Stores, Inc.
$1,100,000 $1.00/year
The property is leased to Historical Society
for $1 per year. The term of the lease is for
one year and renews automatically each
year until April 1, 2033 unless either lessor
or lessee terminates the lease with 90 day
notice.
No known environmental conditions None
Expand Orange Memorial Park
according to Orange Memorial Park
Master Plan and the South San
Francisco General Plan (Park and
Recreation Element)
The property was owned by Cal
Water to operate wells providing
water. Cal Water did not entertain
any development proposals or
activity.
$3,650,000 $ -
None No known environmental conditions None Improving public facilities and public
safety.
Improving public facilities and public
safety.
$763,000 $ -
None
Multiple hazardous materials exist in
soil and ground water including TPHd,
TPHmo, TPHg, Arsenic, Vanadium,
Cadmium and other VOCs
Integral part of advancing transit oriented
development for the entire downtown project area.
Relocate the Caltrain station, related
public uses, and pedestrian access
improvements
The City has prepared full plans for
the relocation of the train station
and all public amenities to this site
and ready to commence but
delayed by plans for Bullet Train
and Caltrain electrification.
HSC 34191.5 (c)(1)(G)HSC 34191.5 (c)(1)(E)
Page 2
HSC 34191.5 (c)(1)(B)
No.
Property
Type
Permissible
Use Permissible Use Detail
Acquisition
Date
Value at Time of
Purchase
Estimated
Current Value
Value
Basis
Date of
Estimated
Current
Value
Proposed
Sale Value
Proposed
Sale Date
Purpose for which
property was acquired Address APN #
Lot Size
(sq.ft.) Current Zoning
LONG RANGE PROPERTY MANAGEMENT PLAN: PROPERTY INVENTORY DATA
HSC 34191.5 (c)(2)HSC 34191.5 (c)(1)(A)HSC 34191.5 (c)(1)(C)SALE OF PROPERTY
11
Parking
Lot/Structure
Governmental
Use Parking Garage Structure 14-Mar-07 $700,000 $700,000 Book 14-Mar-07 N/A N/A
To combine with three City
owned parcels to build the
Miller Avenue Parking
Structure for the downtown 323 Miller Ave.012-312-070 3,500 Downtown Core
12
Roadway/W
alkway
Governmental
Use
Pedestrian access to Parking
Garage Structure 10-Feb-10 $1,700,000 $560,000 Market Sep-13 N/A N/A
Pedestrian connection from
the Parking Structure
directly onto Grand Avenue 356 Grand Ave.012-312-300 7,000 Downtown Core
13 Commercial
Governmental
Use County Medical Health Center 12-Nov-97
$3,050,000
(including
property #14)$1,260,000 Market Sep-13 N/A N/A
Rehabilitation of blighted
property and for the San
Mateo County Health
Center
472 Grand Ave./
306 Spruce Ave. 012-302-140 14,000 Downtown Core
14
Parking
Lot/Structure
Governmental
Use
Parking for County Medical
Health Center 12-Nov-97
$3,050,000
(including
property #13)$560,000 Market Sep-13 N/A N/A
Rehabilitation of blighted
property and for the San
Mateo County Health
Center 468 Miller Ave.012-301-020 7,000
Downtown Residential
Medium
15
Parking
Lot/Structure
Future
Development
Downtown core and future
Downtown Area Specific Plan 22-Mar-00 $611,097 $406,160 Market Sep-13 N/A N/A
Multiple purposes including
removal of blight,
replacement of 25 parking
spaces lost in the
Downtown Parking District
and future in-fill high density
development. 201 Grand Ave.012-316-110 5,077 Downtown Core
16
Parking
Lot/Structure
Future
Development
Downtown core and future
Downtown Area Specific Plan 10-Dec-10 $350,000 $280,000 Market Sep-13 N/A N/A
Combine site with adjacent
properties to develop a
mixed use project
containing 42-45 residential
units and 14,000 sq. ft. of
retail space in the
Downtown transit oriented
district 207 Grand Ave.012-316-100 3,500 Downtown Core
17 Mixed-Use
Future
Development
Downtown core and future
Downtown Area Specific Plan 10-Nov-10
1500000
(including
property #18)$1,230,000 Market Sep-13 N/A N/A
Combine site with adjacent
properties to develop a
mixed use project
containing 42-45 residential
units and 14,000 sq. ft. of
retail space in the
Downtown transit oriented
district
217-219 Grand
Ave.
012-316-080
and 012-316-
090 7,000 Downtown Core
18
Vacant
Lot/Land
Future
Development
Downtown core and future
Downtown Area Specific Plan 10-Nov-10
1500000
(including
property #17)$280,000 Market Sep-13 N/A N/A
Combine site with adjacent
properties to develop a
mixed use project
containing 42-45 residential
units and 14,000 sq. ft. of
retail space in the
Downtown transit oriented
district
227 Grand
Avenue 012-316-060 3,500 Downtown Core
19
Public
Building
Future
Development
Downtown core and future
Downtown Area Specific Plan 8-Oct-96 $535,000 $1,600,000 Market Sep-13 N/A N/A
Combine site with adjacent
properties to develop a
mixed use project
containing up to 100
residential units and 6,500
sq. ft. of retail space in the
Downtown transit oriented
district 200 Linden Ave. 012-334-130 14,000 Downtown Core
Page 3
No.
11
12
13
14
15
16
17
18
19
HSC 34191.5
(c)(1)(D)HSC 34191.5 (c)(1)(F)HSC 34191.5 (c)(1)H)
Estimate of Current
Parcel Value
Estimate of
Income/ Revenue
Contractual requirements for use of
income/revenue
History of environmental
contamination, studies, and/or
remediation, and designation as a
brownfield site
Description of property's potential for transit
oriented development
Advancement of planning objectives
of the successor agency
History of previous development
proposals and activity
HSC 34191.5 (c)(1)(G)HSC 34191.5 (c)(1)(E)
$700,000
$16,900 Gross
$0 Net Annually
Maintenance and Operations No known environmental conditions Higher density in-fill parking for downtown TOD and
project area
Development of the Miller Avenue
Parking Structure for the downtown
TOD
The Agency maintained the
affordable residential units at 323
Miller Avenue until the City
constructed the parking structure.
The property now houses the
easternmost end of the parking
structure which contains the
elevator shaft and a small amount
of unimproved commercial space.
$560,000 $ -
None No known environmental conditions
The property is located within a transit oriented
planning area and has the potential to be
developed into a transit oriented development.
However it is serves to provide pedestrian access
to Miller Avenue Parking Structure
Redevelopment plan goal of eliminating
blighted conditions, increasing
economic activity, improving pedestrian
circulation, and encouraging further
development in the surrounding area
Upon acquisition the Agency
demolished the blighted building on
the property and created pedestrian
access to Miller Avenue Parking
Structure
$1,260,000 $194559.36/year
Maintenance and Operations No known environmental conditions None
Relocate vital social services serving
low-income resident residing in the
downtown project area
The property serves public goal and
Redevelopment goal of providing
public facilities serving low-income
residents residing in the project
area.
$560,000 $ -
Maintenance and Operations No known environmental conditions
Unless the property at 472 Grand/306 Spruce
converted to a use not requiring parking, the
property cannot be redeveloped into a TOD.
Relocate vital social services serving
low-income resident residing in the
downtown project area
The property serves public goal and
Redevelopment goal of providing
public facilities serving low-income
residents residing in the project
area.
$406,160
$5,436.18/year
(inclusive of
properties #15-17)
Operating and maintaining the parking lot No known environmental conditions
The property is located within the downtown and is
less than 1/4 mile away from the Caltrain station.
Upon the relocation of the train station the property
will be one block away from the train station
entrance. Plans for this site and the adjacent
parcels indicate that 37 units and 8,000 sq. ft. of
retail can be built.
Advancing major transit oriented
development in the Downtown through
high-density in-fill housing
Agency received a proposal to
develop this site and adjacent
private properties into development
of residential units with retail space
$280,000
$5,436.18/year
(inclusive of
properties #15-17)
Operating and maintaining the parking lot No recognized environmental condition
This site is ideal for a TOD. The property is located
within the downtown less than 1/4 mile away from
the Caltrain station. Relocated train station will be
one block away. Plans for this site and the adjacent
parcels indicate that residential and retail can be
built.
Advancing major transit oriented
development in the Downtown through
high-density in-fill housing
Agency received a proposal to
develop this site and adjacent
private properties into development
of residential units with retail space
$1,230,000 $5,885.00/month
Maintenance and Operations No recognized environmental condition
This site is ideal for a TOD. The property is located
within the downtown less than 1/4 mile away from
the Caltrain station. Relocated train station will be
one block away. Plans for this site and the adjacent
parcels indicate that residential and retail can be
built.
Advancing major transit oriented
development in the Downtown through
high-density in-fill housing
Agency received a proposal to
develop this site and adjacent
private properties into development
of residential units with retail space
$280,000 $ -
None No recognized environmental condition
This site is ideal for a TOD. The property is located
within the downtown less than 1/4 mile away from
the Caltrain station. Relocated train station will be
one block away. Plans for this site and the adjacent
parcels indicate that residential and retail can be
built.
Advancing major transit oriented
development in the Downtown through
high-density in-fill housing
Agency received a proposal to
develop this site and adjacent
private properties into development
of residential units with retail space
$1,600,000
$9661.80/year
(inclusive of
properties #19-21)
Operating and maintaining the parking lot.No known environmental conditions
The property is located within the downtown and is
about 1/3 mile away from the Caltrain station.
Relocated train station will be two blocks away.
Plans for this site and the adjacent parcels indicate
50-100 residential units can be built.
Advancing major transit oriented
development in the Downtown through
high-density in-fill housing
Exclusive Negotiating Rights
Agreement (2000) for developing
new residential and retail supporting
uses for the downtown.
Page 4
HSC 34191.5 (c)(1)(B)
No.
Property
Type
Permissible
Use Permissible Use Detail
Acquisition
Date
Value at Time of
Purchase
Estimated
Current Value
Value
Basis
Date of
Estimated
Current
Value
Proposed
Sale Value
Proposed
Sale Date
Purpose for which
property was acquired Address APN #
Lot Size
(sq.ft.) Current Zoning
LONG RANGE PROPERTY MANAGEMENT PLAN: PROPERTY INVENTORY DATA
HSC 34191.5 (c)(2)HSC 34191.5 (c)(1)(A)HSC 34191.5 (c)(1)(C)SALE OF PROPERTY
20
Parking
Lot/Structure
Future
Development
Downtown core and future
Downtown Area Specific Plan 14-Jun-00 $942,000 $560,000 Market Sep-13 N/A N/A
Combine site with adjacent
properties to develop a
mixed use project
containing up to 100
residential units and 6,500
sq. ft. of retail space in the
Downtown transit oriented
district 212 Baden Ave. 012-334-040 7,000 Downtown Mixed Use
21
Parking
Lot/Structure
Future
Development
Downtown core and future
Downtown Area Specific Plan 23-Jan-08 $781,000 $280,000 Market Sep-13 N/A N/A
Combine site with adjacent
properties to develop a
mixed use project
containing up to 100
residential units and 6,500
sq. ft. of retail space in the
Downtown transit oriented
district 216 Baden Ave.012-334-030 3,500 Downtown Mixed Use
22 Commercial
Future
Development
Downtown core and future
Downtown Area Specific Plan 9-Sep-11
$8,743,000
(inclusive of
properties #22-
27)
$2,100,000
assuming
environmental
remediation
completed. Market Sep-13 N/A N/A
Develop a mixed use project
containing up to 58
residential units and 9,000
sq. ft. of retail space in the
Downtown transit oriented
district 315 Airport Blvd. 012-318-080 22,136
Downtown Core &
Downtown Parking District
23 Commercial
Future
Development
Downtown core and future
Downtown Area Specific Plan 9-Sep-11
$8,743,000
(inclusive of
properties #22-
27)
$1,100,000
assuming
environmental
remediation
completed. Market Sep-13 N/A N/A
Combine site with adjacent
properties to develop a
mixed use project
containing up to 100
residential units and 6,500
sq. ft. of retail space in the
Downtown transit oriented
district 401 Airport Blvd.012-317-110 10,259
Downtown Core &
Downtown Parking District
24 Commercial
Future
Development
Downtown core and future
Downtown Area Specific Plan 9-Sep-11
$8,743,000
(inclusive of
properties #22-
27)$995,000 Market Sep-13 N/A N/A
Combine site with adjacent
properties to develop a
mixed use project
containing up to 100
residential units and 6,500
sq. ft. of retail space in the
Downtown transit oriented
district 411 Airport Blvd.012-317-100 11,404
Downtown Core &
Downtown Parking District
25
Vacant
Lot/Land
Future
Development
Downtown core and future
Downtown Area Specific Plan 9-Sep-11
$8,743,000
(inclusive of
properties #22-
27)$1,800,000 Market Sep-13 N/A N/A
Combine site with adjacent
properties to develop a
mixed use project
containing up to 100
residential units and 6,500
sq. ft. of retail space in the
Downtown transit oriented
district 421 Airport Blvd.012-317-090 22,809
Downtown Core &
Downtown Parking District
26
Vacant
Lot/Land
Future
Development
Downtown core and future
Downtown Area Specific Plan 9-Sep-11
$8,743,000
(inclusive of
properties #22-
27)$719,000 Market Sep-13 N/A N/A
Develop a residential project
containing up to 28 units in
the Downtown transit
oriented district
405 Cypress
Ave.012-314-100 8,763
Downtown Core &
Downtown Parking District
27
Vacant
Lot/Land Sale of Property N/A 9-Sep-11
$8,743,000
(inclusive of
properties #22-
27)$1,400,000 Market Sep-13 1,400,000 July, 2014
Develop a residential project
containing up to 50 units in
the Downtown transit
oriented district 216 Miller Ave.012-314-220 17,500
Downtown Core &
Downtown Parking District
Page 5
No.
20
21
22
23
24
25
26
27
HSC 34191.5
(c)(1)(D)HSC 34191.5 (c)(1)(F)HSC 34191.5 (c)(1)H)
Estimate of Current
Parcel Value
Estimate of
Income/ Revenue
Contractual requirements for use of
income/revenue
History of environmental
contamination, studies, and/or
remediation, and designation as a
brownfield site
Description of property's potential for transit
oriented development
Advancement of planning objectives
of the successor agency
History of previous development
proposals and activity
HSC 34191.5 (c)(1)(G)HSC 34191.5 (c)(1)(E)
$560,000
$9661.80/year
(inclusive of
properties #19-21)
Operating and maintaining the parking lot.No known environmental conditions
The property is located within the downtown and is
about 1/3 mile away from the Caltrain station.
Relocated train station will be two blocks away.
Plans for this site and the adjacent parcels indicate
50-100 residential units can be built.
Advancing major transit oriented
development in the Downtown through
high-density in-fill housing
Exclusive Negotiating Rights
Agreement (2000) for developing
new residential and retail supporting
uses for the downtown.
$280,000
$9661.80/year
(inclusive of
properties #19-21)
Operating and maintaining the parking lot.No known environmental conditions
The property is located within the downtown and is
about 1/3 mile away from the Caltrain station.
Relocated train station will be two blocks away.
Plans for this site and the adjacent parcels indicate
50-100 residential units can be built.
Advancing major transit oriented
development in the Downtown through
high-density in-fill housing
Exclusive Negotiating Rights
Agreement (2000) for developing
new residential and retail supporting
uses for the downtown.
$2,100,000 $ -
None
Phase I found it has three former
gasoline tanks (USTs) abandoned in
place existing TCE, DCE and vinyl
chloride contaminants. Future
development activities that disturb
underlying soil or groundwater will
encounter the contaminated media and
require special handling and disposal
The property is located within the downtown and is
less than 1/4 mile away from the Caltrain station.
Relocated train station will be across the street.
Plans for this site indicate that 29-58 residential
units and 9,000, sq. ft. of retail can be built.
Advancing major transit oriented
development in the Downtown through
high-density in-fill housing
The Agency has not considered any
other plans to develop the property.
However, the Agency has prepared
a development program for the
property based on the rezoning of
the area by the DSAP.
$1,100,000 $ -
None
Phase I and II found the soil and
groundwater impacted with petroleum
hydrocarbons. Future development
activities that disturb underlying soil or
groundwater will require special
handling and disposal.
This property is located within the downtown and is
less than 1/4 mile away from the Caltrain station.
Relocated train station will be across the street.
Assembled properties #23-25 can be developed
into 81-162 residential units and 8,000, sq. ft. of
retail.
Advancing major transit oriented
development in the Downtown through
high-density in-fill housing
The Agency has not considered any
other plans to develop the property.
However, the Agency has prepared
a development program for the
property based on the rezoning of
the area by the DSAP.
$995,000 $ -
None No known environmental conditions
This property is located within the downtown and is
less than 1/4 mile away from the Caltrain station.
Relocated train station will be across the street.
Assembled properties #23-25 can be developed
into 81-162 residential units and 8,000, sq. ft. of
retail.
Advancing major transit oriented
development in the Downtown through
high-density in-fill housing
The Agency has not considered any
other plans to develop the property.
However, the Agency has prepared
a development program for the
property based on the rezoning of
the area by the DSAP.
$1,800,000 $ -
None No known environmental conditions
This property is located within the downtown and is
less than 1/4 mile away from the Caltrain station.
Relocated train station will be across the street.
Assembled properties #23-25 can be developed
into 81-162 residential units and 8,000, sq. ft. of
retail.
Advancing major transit oriented
development in the Downtown through
high-density in-fill housing
The Agency has not considered any
other plans to develop the property.
However, the Agency has prepared
a development program for the
property based on the rezoning of
the area by the DSAP.
$719,000 $ -
None No known environmental conditions
The property is located within the downtown and is
less than 1/4 mile away from the Caltrain station.
Plans for this site indicate that 29-58 residential
units and 9,000, sq. ft. of retail can be built.
Advancing major transit oriented
development in the Downtown through
high-density in-fill housing
The Agency has not considered any
other plans to develop the property.
However, the Agency has prepared
a development program for the
property based on the rezoning of
the area by the DSAP.
$1,400,000 $ -
None No known environmental conditions
The property is located within the downtown and is
less than 1/4 mile away from the Caltrain station.
Plans for this site indicate that 25-50 residential
units can be built.
Advancing major transit oriented
development in the Downtown through
high-density in-fill housing
The Agency has not considered any
other plans to develop the property.
However, the Agency has prepared
a development program for the
property based on the rezoning of
the area by the DSAP.
Page 6
HSC 34191.5 (c)(1)(B)
No.
Property
Type
Permissible
Use Permissible Use Detail
Acquisition
Date
Value at Time of
Purchase
Estimated
Current Value
Value
Basis
Date of
Estimated
Current
Value
Proposed
Sale Value
Proposed
Sale Date
Purpose for which
property was acquired Address APN #
Lot Size
(sq.ft.) Current Zoning
LONG RANGE PROPERTY MANAGEMENT PLAN: PROPERTY INVENTORY DATA
HSC 34191.5 (c)(2)HSC 34191.5 (c)(1)(A)HSC 34191.5 (c)(1)(C)SALE OF PROPERTY
28 Commercial Sale of Property N/A 15-Jan-10 $1,100,000 $1,100,000 Book 15-Jan-10 1,100,000 July, 2014
Relocate St. Vincent de
Paul’s food and social
services programs 938 Linden Ave.012-102-030 12,937 Downtown Mixed Use
29
Vacant
Lot/Land
Future
Development
Development of residential
housing Dec-99 $477,000
$1,200,000
assuming
environmental
remediation
completed. Market 13-Sep N/A N/A
Remove blighting conditions
and incompatible uses.
Future housing
development.905 Linden Ave.012-101-100 15,000
Downtown Residential
Medium Density
30
Parking
Lot/Structure
Future
Development
Downtown core and future
Downtown Area Specific Plan 14-Apr-97 $325,000
$1,100,000
assuming
environmental
remediation
completed. Market 13-Sep N/A N/A
Public use purpose:
Develop a community
performance theater 616 Linden Ave.012-174-300 14,000 Downtown Mixed Use
31
Vacant
Lot/Land
Future
Development
Downtown core and future
Downtown Area Specific Plan 14-Apr-97 $315,000
$1,100,000
assuming
environmental
remediation
completed. Market 13-Sep N/A N/A
Public use purpose: develop
parking for the proposed
community performance
theater 700 Linden Ave.012-145-370 14,000 Downtown Mixed Use
32
Parking
Lot/Structure Sale of Property N/A 14-Apr-97 $270,000 $560,000 Market 13-Sep 560,000 July, 2014 Public parking lot
432 Baden Ave./
429 Third Lane 012-321-160 7,000 Downtown Commercial
Page 7
No.
28
29
30
31
32
HSC 34191.5
(c)(1)(D)HSC 34191.5 (c)(1)(F)HSC 34191.5 (c)(1)H)
Estimate of Current
Parcel Value
Estimate of
Income/ Revenue
Contractual requirements for use of
income/revenue
History of environmental
contamination, studies, and/or
remediation, and designation as a
brownfield site
Description of property's potential for transit
oriented development
Advancement of planning objectives
of the successor agency
History of previous development
proposals and activity
HSC 34191.5 (c)(1)(G)HSC 34191.5 (c)(1)(E)
$1,100,000 $ -
None
Phase I report revealed no evidence of
recognized environmental conditions.
However, significantly elevated
concentrations of petroleum
hydrocarbons in the shallow
groundwater and capillary fringe soils
beneath the property. The
concentration of petroleum
hydrocarbons beneath the building
poses potential risk of volatilization to
indoor air.
Significant distance from the downtown’s transit
hub and services and is therefore not considered a
transit oriented development opportunity.
N/A
Private owner had assembled
several properties adjacent to this
one with the intent of developing a
major residential project.
$1,200,000 $ -
None
Phase II environmental analysis
conducted. Wells installed to monitor
groundwater. Water continues to be
contaminated. Soil surface area is free
of gasoline and oil contamination.
Agency has assumed the financial
responsibility for the cleanup of the
groundwater. In 1999 the estimated
cost of remediating was $100,000 and
has likely increased.
The property is not walking distance to Caltrain
station and downtown services but still suitable for
high density development.
Advancing high-density in-fill housing
At one time the Agency prepared
conceptual architectural plans for
combined sites for a mixed-use
development. Agency was not able
to assemble the site. Agency
subsequently prepared conceptual
plans for a mix-used housing
development for this single site.
$1,100,000 $2,880.30/year
Operating and maintaining the parking lot.
The ground water is monitored by wells
and continues to show contamination
consisting of petroleum compounds.
The Successor Agency has assumed
responsibility for the remediation of this
property
The property is in close proximity to the downtown
core and the Caltrain station and is suitable for
transit oriented development. The site could
accommodate up to 40 residential units.
Advancing high-density in-fill housing
In the late 1990’s and early 2000’s
the Agency was working with an arts
organization to develop a
performance arts theater. Since the
cancellation of that project, not
other developments have been
proposed though the Agency had
conceptual plans prepared for a mix-
used housing development on the
site.
$1,100,000 $ -
None
Plume of groundwater contamination
extends into this property. The soil and
ground water contamination make it
financially infeasible to develop without
taking out several feet of topsoil.
The property is in close proximity to the downtown
core and the Caltrain station and is suitable for
transit oriented development. The site could
accommodate up to 40 residential units.
Advancing high-density in-fill housing
Agency was working with an arts
organization to develop a
performance arts theater use site as
parking for the new theater. The
Agency has prepared conceptual
plans for a mix-used housing
development on the site.
$560,000 $2,760.15/year
Operating and maintaining the parking lot.No known environmental conditions
This site is ideal for a smaller scale transit oriented
development. The property is located within the
downtown less than 1/2 mile away from the Caltrain
station. Conceptual plans for this indicate that
residential units can be built.
Advancing high-density in-fill housing
Upon acquisition, the Agency
demolished the existing building.
Agency has created a development
program for the property based on
the rezoning of the area by the
DSAP.
Page 8
Appendix C
Appraisal 011‐326‐030 (Chestnut/El Camino Real) Excerpt
2
D A
N A
DANA Property Analysis
7445 E. Eagle Crest Drive, #1041, Mesa, Arizona 85207
5952 Dry Oak Road, San Jose, California 95120
(800) 280-9711 (480) 641-9711 Fax (480) 641-9902 talmage@danaproperty.com
September 17, 2013 DRAFT
Mr. Michael Lappen
City of South San Francisco
400 Grand Avenue
South San Francisco, CA 94080 DRA)T
Re: Appraisal of the “PUC” property (as identified for this appraisal) located at the
north corner of El Camino Real and Chestnut Avenue in South San Francisco,
CA
Dear Mr. Lappen:
I have inspected and appraised the “PUC” property for the purpose of estimating
its market value. The site is identified by various names as will be discussed, but
the maps in this report are most helpful in specifying the area under
consideration.
Specific to the assignment are your instructions as follows:
“…. need to appraise the site based on the existing zoning and
development standards (the El Camino Real/Chestnut Plan). The
property must be appraised as an independent parcel that can be
developed separately, not as part of a larger development.”
There are exhibits presented in the report that show the subject site as a part of
City-generated conceptual plans for the neighborhood. These are included for
descriptive purposes and as a means of considering the development potential of
the site on a stand-alone basis; they do not serve as a basis for valuing the
property. For example, drawings show an extension of Oak Avenue along the
northwestern border of the site; the extension is considered a possibility as a
natural connection between El Camino Real and Mission Road, but not as an
existing condition or as an extension certainty. Also, the drawings show the
extension of Antoinette Lane to the path of the Oak Avenue extension; in the
appraisal Antoinette is considered a cul-de-sac as it presently exists.
There are some extraordinary assumptions in this report in addition to the
Standard Limiting Conditions included in the Addenda. First, the size of the site
3
is shown as 63,992 square feet on one of the exhibits. The Assessor’s map
suggests that this may include a small portion of what may represent the
extension of Oak Avenue. For purposes of this report I assume that the net area
of the site is 63,992 square feet.
Also, I have estimated a cost to level a portion of the site at the grade level of
Antoinette Lane, excluding a strip of land at the higher elevation of El Camino
Real, which itself rises above the Antoinette grade in a northwesterly direction
from Chestnut Avenue. I assume the work involving this cost (adjusted from an
expert cost estimate applying to a much larger area) would provide a flattened
area having a width of on average about 85 feet.
The conclusion of the valuation analysis described herein is presented in the last
section of this report just before the Addenda.
Sincerely,
Paul E. Talmage, MAI
California Certified General
Real Estate Appraiser AG 004846
4
TABLE OF CONTENTS
(Exhibits are in italics)
Page
Letter of Transmittal 2
Table of Contents 4
Scope of the Assignment and Means of Valuation 5
Aerial photograph showing the outline of the subject property 6
San Mateo County Assessor’s Map 7
Descriptions of the Subject Neighborhood and the Subject Property 11
Map of Subject Property from the client 12
Map of the Subject Neighborhood from the client 13
Two pages of on-site, ground level photographs 16-17
The El Camino Real/Chestnut Avenue Area Plan 18
Conceptual Plans for the Neighborhood 21
Conceptual Plan 1 22
Conceptual Plan 2 23
Where the Area Plan and the Conceptual Plans Differ 25
Highest and Best Use and Valuation Analysis 28
Highest and Best Use 28
Aerial photograph showing multi-residential
properties near the SSF BART Station 30
Valuation Analysis 31
Table showing land sale and listing comparables 32
Market Value Conclusion 36
Addenda 37
Certification 38
Maps of Comparable Properties
USPAP Chart 2-2
Standard Limiting Condition
Extraordinary Assumptions
Qualifications
5
SCOPE OF THE ASSIGNMENT AND MEANS OF VALUATION
The assignment is as follows: to “… appraise the site based on the existing
zoning and development standards (the El Camino Real/Chestnut Plan). The
property must be appraised as an independent parcel that can be developed
separately, not as part of a larger development.” (Per email from Mike Lappen of
the City of South San Francisco.)
An aerial photograph and an assessor’s map on the next two pages show the
location of the subject property.
1. Scope of the Assignment
The scope of the assignment generally describes the overall range of work and
the extent of data collection, confirmation, and reporting involved in conducting
an assignment. This appraisal has been conducted according to national
recognized appraisal standards and techniques and generally accepted appraisal
practices. I generally reviewed pertinent project data, extensively investigated the
relevant markets and selected the necessary comparable data to conduct the
appropriate valuation methodology. Sources utilized to obtain this information
include comparable data services, brokerage firms, local real estate publications,
market participants, government officials, internet sites, and in-house resources.
This report is presented in a summary format rather than a detailed self-
contained format, reflecting the assumption that the intended report users have
at least a generalized knowledge of the region and city characteristics. This
report meets the criteria of a “summary” report as specified by the Uniform
Standards of Professional Appraisal Practice (USPAP – see the USPAP
summary of requirements in the Addenda). The data and analysis leading to the
reported market value conclusion are set forth herein.
As discussed in the letter of transmittal, there are a few exhibits of this report that
show the property as part of City-generated conceptual plans for the area.
These plans help for description and consideration of the value potential for the
site on a stand-alone basis, but the valuation reflects the environs as they
presently exist, not as they might exist in the future.
Following are specifics to the assignment:
Property Appraised: Use of the Real Estate Existing as of the Date
of Value and Reflected in the Appraisal:
The subject property is a vacant land parcel of
about 63,992 square feet located at the north
corner of El Camino Real and Chestnut
Avenue in South San Francisco, CA.
35
cost to $7.50 per square foot but then increase this by 35 percent for soft costs
and profit to $10.12 per square foot, applicable to 63,992 square foot. The total
cost is thus estimated at $647,599, rounded to $650,000.
Conclusion. The as-is market value of the subject site on a stand-alone basis
calculates as follows:
Value as if the developable portion of the Site were level $1,620,000
Cost to cut, fill, compact and grade the developable area $ 650,000
As-is stand-alone value $ 970,000
The as-is conclusion equates to $15.16 per square foot for the 63,992 gross
square foot. See extraordinary assumptions on the next page.
36
MARKET VALUE CONCLUSION
The “as-is” market value of the subject site on a stand-alone basis is estimated
as of September 9, 2013 - subject to standard limiting conditions included in the
Addenda and three extraordinary assumptions listed below - as follows:
$970,000
Extraordinary Assumption 1: I assume that there is reasonable access to the
subject site from Antoinette Lane.
Extraordinary Assumption 2: I assume that the net area of the site is 63,992
square feet exclusive of an area which might lie within the path of the Oak
Avenue extension, should that road be extended to El Camino Real.
Extraordinary Assumption 3: I have estimated a cost to level a portion of the site
at the grade level of Antoinette Lane, excluding a strip of land at the higher
elevation of El Camino Real, which itself rises above the Antoinette grade in a
northwesterly direction from Chestnut Avenue. I assume the work involving this
cost (adjusted from an expert cost estimate that applied to a larger area) would
provide a flattened area having a width of on average about 85 feet.
Appendix D
Environmental Report Excerpts
100 Galli Drive, Suite 1
Novato, CA 94949
(415) 883-6203
fax (415) 883-6204
October 7, 2005
Ms. Norma Fragoso
Mr. Michael Lappin
City of South San Francisco
1755 Creekside Oaks Drive, Suite 290
Sacramento, CA 95833
Subject: Transmittal of Environmental Site Assessment
1.12 Mile Corridor Owned by San Francisco Public Utilities Commission
South San Francisco, CA
CSS Project No: 6307
Dear Ms. Fragoso:
CSS Environmental Services, Inc. (CSS) is pleased to submit the following Environmental Site Assessment
(ESA) report for the approximately 1.12 mile corridor owned by the San Francisco Public Utilities
Commission (SF PUC) in South San Francisco, California 94080, herein referred to as the Corridor. The ESA
includes a Phase I and a Limited Phase II ESA. The objective of this ESA was to identify historical or current
activities at the Site and surrounding properties which could have contributed to, or may currently contribute
to, the degradation of the Site’s soil and/or groundwater, thereby representing a recognized environmental
condition. This ESA was prepared with considerations set forth in the ASTM designation E1527-00 document
describing standard practices for Phase I ESAs. CSS has noted any significant variances to ASTM in the
report. This ESA represents the opinions of CSS and is subject to the limitations and uncertainties statement
included.
Through this ESA, CSS has determined that a recognized environmental condition is present at the Corridor:
TEPH-mo was present in surface soils at Parcel 2 (as shown on Wilsey Ham’s “Parcels to be Acquired” of
Appendix A) at a concentration of 1,900 mg/Kg. This concentration exceeds the residential and commercial
Environmental Screening Levels for residual fuels of 1,000 mg/Kg and may inhibit future development.
Further investigation of the source, nature and extent of TEPH-mo and the removal of any objectionable
materials from this parcel should be performed.
Other potential environmental conditions are identified on the Corridor. Please refer to the attached ESA for
details.
If you have any questions or comments regarding this report, please do not hesitate to call the undersigned at
(415) 457-9551.
Sincerely,
CSS ENVIRONMENTAL SERVICES, INC.
Aaron N. Stessman, PE, REA
Principal Engineer
Enclosure
100 Galli Drive, Suite 1
Novato, CA 94949
(415) 883-6203
fax (415) 883-6204
1
August 15, 2011
City of South San Francisco
Department of Economic and Community Development
Attn. Mr. Armando Sanchez
400 Grand Avenue
South San Francisco, CA 94080
Subject: Results of Phase II Environmental Site Assessment of the Properties at
315 Airport Blvd (APN 012-318-030) and
401 Airport Blvd (APN 012-317-110)
South San Francisco, California
CSS Project No: 6670
Dear Mr. Sanchez:
CSS Environmental Services, Inc. (CSS) is pleased to submit the following results of a Phase II
Environmental Site Assessment (Phase II ESA) for the properties located at 315 and 401 Airport
Blvd, South San Francisco, California, herein referred to as the subject property or Site. The Site’s
location is shown on the attached Figures 1 and 2. The Site is being considered for purchase by the
City of South San Francisco (City). The Site is presently unoccupied and was most recently used by
owner David Gonzales for the operations of South City Ford Motors as an automobile sales and
repair facility. A recent Phase I ESA completed by CSS (April 29, 2011) of six parcels of property
near Airport Blvd and Miller Ave and the two subject properties were identified as having
recognized environmental conditions. 315 Airport Blvd has three former gasoline USTs that were
abandoned in place and two former waste oil USTs that were removed from the property. 401
Airport Blvd has three former gasoline USTs and a former waste oil UST that were removed. For
both of these properties soil and groundwater impacted with petroleum hydrocarbons were left in
place. At 315 Airport Blvd TCE, DCE and vinyl chloride were additional contaminants left in place.
While both sites received environmental case closure from the San Mateo County Environmental
Health Division’s (SMEHD’s) leaking underground storage tank program, future development
activities that disturb underlying soil or groundwater will likely encounter the contaminated media
and require special handling and disposal. Since their environmental case closure in 2001, no
sampling of these properties had been conducted. This Phase II ESA was completed to assess
current environmental conditions at the Site since redevelopment design and planning will require
consideration of hazardous materials remaining in place.
Through the conduct of the Phase II ESA, CSS has confirmed that there are presently recognized
environmental conditions found at the subject property. The reader is referred to the body of this
letter report for further details of the environmental investigation and its findings.
2
Background
CSS performed a Phase I Environmental Site Assessment in consideration of the scope and
limitations of ASTM Practice E1527-05 of six neighboring properties in South San Francisco,
California: 315 Airport Blvd, 401 Airport Blvd, 411 Airport Blvd, 421 Airport Blvd, 405 Cypress
Ave and a parking lot on Miller Ave with no address identified by APN 012-314-220. Of these, the
properties at 315 Airport Blvd and 401 Airport Blvd were identified as having recognized
environmental conditions.
The term recognized environmental condition is defined by the American Society for Testing and
Materials (ASTM) as follows:
“In defining a standard of good commercial and customary practice for conducting
an environmental site assessment of a parcel of property, the goal of the processes
established by this practice is to identify recognized environmental conditions. The
term recognized environmental conditions means the presence or likely presence of
any hazardous substances or petroleum products on a property under conditions that
indicate an existing release, a past release, or a material threat of a release of any
hazardous substances or petroleum products into structures on the property or into
the ground, ground water, or surface water of the property. The term is not intended
to include de minimis conditions that generally do not present a material risk of harm
to public health or the environment and that generally would not be the subject of an
enforcement action if brought to the attention of appropriate governmental agencies.
Conditions determined to be de minimis are not recognized environmental
conditions.”
The Site has a long history of residential and commercial use, with first identified development of
the Site and vicinity occurring between 1891 and 1892 when residences, hotels, restaurant, saloon
and dance hall, a real estate office and a blacksmith were developed. In 1920 a Ford automobile
sales and service garage was constructed at 315 Airport Blvd and later expanded in 1956 and again
in about 1970. From about 1925 to between 1987 and 1993 a gas station with service garage
operated at 401 Airport Blvd and from 1950 to about 1960 another was operating at 315 Airport
Blvd. In about 1993, the Ford dealership expanded their operations beyond 315 Airport Blvd to
include new and used car sales, automobile service and detailing to 401 Airport Blvd and an
adjoining property to the north at 411 Airport Blvd. Presently the Site parcels are vacant except for
minor storage by the property owner David Gonzalez.
The Phase I ESA found evidence of recognized environmental conditions in connection with the Site
as follows:
• Environmental records for 315 Airport Blvd show that a recognized environmental condition
exists at its location: three abandoned-in-place gasoline USTs as well as soil and/or
groundwater impacted with petroleum hydrocarbon compounds, TCE, DCE and vinyl
chloride remain present. The presence of these compounds is thought to be associated with
releases from the three abandoned-in-place USTs and appurtenances and/or two waste oil
3
USTs that were removed from the property. While 315 Airport Blvd received environmental
site closure in 2001, future redevelopment activities that disturb underlying soil and/or
groundwater will require the review of a governmental agency. In the event of excavation or
development of the property, San Mateo County Environmental Health Division must be
notified as required by Government Code Section 65850.2.2. This notification
notwithstanding, SMCEHD regulators have stated that the water quality objectives of the
RWQCB have been satisfied, the corrective action protects public health for current land use
and corrective action should not be reviewed if land use changes.
• Environmental records for 401 Airport Blvd show that a recognized environmental condition
exists at its location: soil and/or groundwater impacted with petroleum hydrocarbon
compounds remain present. The presence of these compounds is thought to be associated
with releases from three removed fuel USTs and appurtenances and/or a waste oil UST that
was removed from the property. While 401 Airport Blvd received environmental site closure
in 2001, this condition may impact future development activities that disturb underlying soil
and/or groundwater. In the event of excavation or development of LOT 2, San Mateo
County Environmental Health Division must be notified as required by Government Code
Section 65850.2.2. This notification notwithstanding, SMCEHD regulators have stated that
the water quality objectives of the RWQCB have been satisfied, the corrective action
protects public health for current land use and corrective action should not be reviewed if
land use changes.
These conditions were further evaluated in the performance of this Phase II ESA.
Investigation Activities
CSS completed the following activities in the conduct of this Phase II ESA:
• Prepared a Site Specific Health and Safety Plan for the conduct of the work
• Obtained Subsurface Drilling Permits from the SMEHD
• Marked boring locations on July 6, 2011 and cleared site utilities at the boring locations
using a private underground utility locating service.
• Notified underground utility owners in the vicinity through Underground Service Alert.
• Pre-cored the concrete building slab at marked boring locations within the building at 315
Airport Blvd on July 12, 2011.
• Completed 9 borings on July 13, 2011. The boring locations are shown on the attached
Figure 2. Eight borings were completed using GeoProbe direct push drilling equipment
supplied and operated by Fisch Environmental Exploration Services, a California C-57
licensed drilling company. One portion of the 315 Airport Blvd building could not be
accessed by the drill rig and CSS-5 and CSS-6 were instead hand augered. CSS-5 was
augered to a depth of two and a half feet and a single soils sample was collected at a depth of
2-feet. No water sample was collected at this location. While attempting to hand auger
CSS-6, refusal due to an underground obstruction, possibly piping, was encountered at a
depth of about 12-inches and no samples were collected. For the GeoProbe borings,
SUBSURFACE INVESTIGATION REPORT
FORMER CALTRANS MAINTENANCE STATION
296 AIRPORT BOULEVARD
SOUTH SAN FRANCISCO, CALIFORNIA 94080
PREPARED BY:
TEC ACCUTITE
262 MICHELLE COURT
SOUTH SAN FRANCISCO, CALIFORNIA 94080
PREPARED FOR:
MR. KELVIN MUNAR
CITY OF SOUTH SAN FRANCISCO
315 MAPLE AVENUE
SOUTH SAN FRANCISCO, CALIFORNIA 94083
DECEMBER 31, 2007
TABLE OF CONTENTS
PAGE
1.0 INTRODUCTION................................................................................................................1
2.0 SITE DESCRIPTION..........................................................................................................1
3.0 ENVIRONMENTAL BACKGROUND.................................................................................1
4.0 SUBSURFACE INVESTIGATION......................................................................................2
4.1 Soil and Grab Groundwater Sampling...........................................................................2
5.0 CONCLUSIONS AND RECOMMENDATIONS.................................................................3
6.0 LIMITATIONS.....................................................................................................................4
7.0 REFERENCES...................................................................................................................4
TABLES
1 SUMMARY OF SOIL ANALYTICAL RESULTS
2 SUMMARY OF GRAB GROUNDWATER ANALYTICAL RESULTS
FIGURES
1 VICINITY MAP
2 SITE MAP
3 PETROLEUM HYDROCARBONS IN SOIL AND GROUNDWATER
ATTACHMENTS
A BORING LOGS
B BORING PERMITS
C LABORATORY ANALYTICAL REPORT AND CHAIN OF CUSTODY DOCUMENTATION
Subsurface Investigation Report Page 1
296 Airport Boulevard, South San Francisco, California December 2007
1.0 INTRODUCTION
On behalf of the City of South San Francisco (Client), TEC Accutite conducted a subsurface
investigation at the former Caltrans Maintenance Yard located at 296 Airport Boulevard, South San
Francisco, California. The investigation was performed in accordance with TEC Accutite’s scope of
work (Bid # E-167, revised 12/21/2007). The objectives of the investigation were to characterize soil
and groundwater beneath the portion of the property for sale, to determine if site remediation would
be required and an approximate cost of any remediation prior to the City’s purchase of the property.
Presented below are the site background and results of the investigation.
2.0 SITE DESCRIPTION
The subject site is located in a light industrial/commercial area of South San Francisco, California. A
Vicinity Map and Site Map are presented as Figures 1 & 2, respectively. The property and building
are owned by Caltrans. Facilities on the property consist of a former gas station, former Caltrans
maintenance yard, former office building, and two associated historic known underground storage
tank (UST) systems (approximately 24,000 ft2). The site is currently leased to Bob Jr’s Towing and
used as a storage yard for impounded vehicles.
The site is located on the low lying areas west of San Francisco Bay in San Mateo County. Site
topography gently slopes east, towards San Francisco Bay. Site elevation is approximately 19 ft
above mean sea level and the nearest surface water is San Francisco Bay approximately 1,200 feet
east-southeast of the site.
3.0 ENVIRONMENTAL BACKGROUND
1890s and 1910s
The subject property is a vacant lot.
1925
A building labeled Gas and Oils is identified in the northwestern corner of the subject property.
1950
The gas station is no longer present and a new building is identified as an office building. The
Bayshore Highway overpass is present and runs above the eastern third of the subject property.
1965
The subject property appears to be vacant except for several parked cars. The City of South San
Francisco’s Building Division has two permits regarding the subject property, one to demolish the
current building and one to construct the single-story office and maintenance garage building which
still stands today.
1987
A 2,000 gallon gasoline UST was reportedly removed on June 30, 1987. The excavation area was
subsequently backfilled and resurfaced. According to records, no contamination was detected at the
site after tank removal.
The above site history has been condensed from TEC Accutite’s Phase I Environmental Site
Assessment, dated December 31, 2007.
Subsurface Investigation Report Page 2
296 Airport Boulevard, South San Francisco, California December 2007
4.0 SUBSURFACE INVESTIGATION
4.1 Soil and Grab Groundwater Sampling
In order to investigate the presence of petroleum hydrocarbons in the subsurface, TEC Accutite
advanced six soil borings at the subject site. The objective of this investigation was to characterize
soil and groundwater beneath the site specifically as related to the former USTs associated with the
former gasoline station, Caltrans maintenance yard, and general site soil and groundwater. Boring
logs are presented in Attachment A.
Personnel: Project Manager Marc Mullaney performed all fieldwork.
Permit: San Mateo County Drilling Permit # 07-2933 (Attachment B).
Clearing Utilities: Underground Service Alert (USA) was contacted prior to the drilling in order
to identify any underground utilities. USA ticket #469645 was obtained.
In addition, TEC Accutite utilized a private utility locator to confirm that the
boring locations did not interfere with any underground utilities and to
perform a utility survey.
Drilling Co: Environmental Control Associates, Inc. (ECA), C-57 # 695970
Drilling Date: December 20, 2007
Number of Borings: Advanced six soil borings (B-1 through B-6).
Drilling Method: Direct-push drilling rig.
Boring Depth: Borings were advanced into the groundwater from approximately 8 feet
below surface grade (bsg) to a maximum of 16 feet bsg. Temporary PVC
casing was installed in all borings to collect groundwater samples.
Sediment Lithology: Soils consist primarily of interlayered clays, sands, and gravels from the
surface to approximately 16 feet bsg. Soil types are described using the
USCS and recorded on the boring logs (Attachment A).
Depth to Water: Groundwater was encountered in all borings between approximately 3.5 feet
bsg and 7.5 feet bsg.
Sample Technique: Soil samples were collected in acetate sleeves in the direct push sampler. In
each boring the acetate sleeve was removed and a soil sample was cut from
the sleeve approximately every 2 feet. The ends of each sleeve were
capped with Teflon sheets and plastic end caps. Samples were properly
labeled and placed in an ice chest with ice. With each soil sample, a split
was collected and placed in a ziplock bag. Bags were sealed with air space
and allowed to volatilize. A photo ionization detector (PID) was used to
measure ionizable gases and readings were noted on the boring logs. For
soils, the highest PID reading from each boring was submitted for analysis.
A grab groundwater sample was collected from each boring utilizing a
peristaltic pump with new tubing for each location.
Analytical Results: All soil and groundwater samples were analyzed for total petroleum
hydrocarbons as gasoline (TPHg), TPH as diesel (TPHd), TPH as motor oil
Subsurface Investigation Report Page 3
296 Airport Boulevard, South San Francisco, California December 2007
(TPHmo), volatile organic compounds (VOCs), fuel oxygenates, and the 17
California Assessment Metals (CAM-17).
In soils, TPHg and VOCs were not present above ESL (Environmental
Screening Level, see tables). TPHd was present above the ESL in soil
sample B-6@6’ and TPHmo was present above the ESL in soil samples B-
2@4’ and B-6@6’. Arsenic and Vanadium were present above ESLs in all
six soil samples. Cadmium was present above ESLs in soil sample B-4@4’.
Analytical results of soils are summarized in Tables 1 and 2.
Grab groundwater sample B-5 contains TPHg, TPHd, and various VOCs
above ESLs. Grab groundwater sample B-6 contains TPHd, TPHmo, and
various VOCs above ESLs. Grab groundwater B-1 and B-2 contained
chromium, lead, and vanadium above the respective ESLs. Grab
groundwater sample B-3 contained arsenic, lead, and vanadium above the
respective ESLs. Grab groundwater sample B-4 contained arsenic,
cadmium, lead, and vanadium above the respective ESLs. Grab
groundwater sample B-5 contained barium, chromium, lead, and vanadium
were above the respective ESLs. Grab groundwater sample B-6 contained
vanadium above the respective ESL. Analytical results of grab groundwater
are summarized in Tables 3 and 4.
The laboratory analytical report is presented in Attachment C.
Boring Abandonment: All borings were backfilled with neat cement grout.
5.0 CONCLUSIONS AND RECOMMENDATIONS
• No indications of any remaining USTs are on the property. All utilities have been mapped to
scale on Figure 2.
• Geologic conditions encountered in the boring locations (B-1 through B-6) show inconsistent
interlayering of clays, sandy clays, and gravels. Soils appeared to be stained and
hydrocarbon odors were observed in borings B-2, B-5, and B-6.
• Analytical results indicate residual petroleum hydrocarbons exist in soil and groundwater in
the vicinity of the former gas station (B-5 and B-6) and in the backfill area of the former
Caltrans UST excavation (B-2).
• Soil metals concentrations are uniformly above ESLs for arsenic and vanadium; however, the
concentrations of arsenic and vanadium detected onsite are consistent with background
levels of arsenic (10 mg/kg) and vanadium (150 mg/kg to 500 mg/kg) naturally occurring in
soil of the San Francisco Bay area as published by the United States Geological Survey
(Shacklette and Boerngen, 1984). Considering natural variations, the metal concentrations
detected in onsite soil could be naturally occurring or imported in native fill material from
unknown sources.
• Similar to soils, grab groundwater metals concentrations are above the respective ESLs for
arsenic, barium, cadmium, chromium, lead, and vanadium; however, grab groundwater
samples were not properly filtered, and these concentrations are likely artificially elevated.
• Since the former gas station from 1925 to the late 1940’s appears to be the major contributor
of contamination to the property, it is likely that funding from the State of California UST
Subsurface Investigation Report Page 4
296 Airport Boulevard, South San Francisco, California December 2007
Reimbursement Fund will not be available without a clear UST owner or operator. If the
contamination is attributable to the Caltrans UST, then funding may be available.
• Cleanup costs of this type typically range from $500,000 to $1.2 million. Best estimate based
on known contamination and metals in soil would indicate cleanup costs would be in the
upper part of the range for residential standards. Cleaning up the main contamination and
providing a deed restriction will save costs ($500,000 to $750,000) in the short term, but long
term monitoring costs (if required) could eventually use up the difference.
• TEC Accutite recommends that this report be submitted to San Mateo County Groundwater
Protection Program with a further recommendation that the limits of the petroleum
hydrocarbons in groundwater and metals concentrations in soil be defined both vertically and
horizontally to the property line, as a first phase of plume delineation.
6.0 LIMITATIONS
Our services consist of professional opinions, conclusions and recommendations made today in
accordance with generally accepted engineering principles and practices. This warranty is in lieu of
all other warranties either expressed or implied. TEC Accutite's liability is limited to the dollar amount
of the work performed.
This report is solely for the use and information of our client unless otherwise noted. Any reliance on
this report by a third party is at such party’s sole risk. Opinions and recommendations contained in
this report apply to conditions existing when services were performed and are intended only for the
client, purposes, locations, time frames, and project parameters indicated. We are not responsible for
the impacts of any changes in environmental standards, practices, or regulations subsequent to
performance of services. We do not warrant the accuracy of information supplied by others, nor the
use of segregated portions of this report.
Thank you for the opportunity to provide you with our services. If you have any questions or
concerns, feel free to contact Marc Mullaney at (650) 616-1209.
Sincerely,
TEC Accutite
Nathan W. Smith Marc Mullaney, PG # 7438
Project Geologist Sr. Project Manager
7.0 REFERENCES
- California Regional Water Quality Control Board, “Screening For Environmental Concerns At Sites
With Contaminated Soil and Groundwater”, Interim Final – November 2007.
- Shacklette, H. T. and Boerngen, J. G., 1984, “Element Concentrations in Soils and Other Surficial
Materials, Conterminous United States,” U.S. Geological Survey Professional Paper 1270.
100 Galli Drive, Suite 1
Novato, CA 94949
(415) 883-6203
fax (415) 883-6204
6601 SSF Linden Indoor Report FINAL.doc
September 3, 2009
City of South San Francisco
Community Development
Attn. Mr. Norma Fragoso
315 Maple Avenue
South San Francisco, CA 94080
Subject: Results of Transmittal of Indoor Air Quality Assessment
For 938 Linden Avenue
South San Francisco, California
CSS Project No: 6601
Dear Ms. Fragoso:
CSS Environmental Services, Inc. (CSS) is pleased to submit the following results of an Indoor Air
Quality Assessment (Assessment) performed for the property at 938 Linden Avenue (the Site) in South
San Francisco, CA. The current assessment was performed to investigate the findings of a Piers
Environmental Services Phase I Environmental Site Assessment (March 2009) of the Site indicating that
“concentrations of petroleum hydrocarbons beneath the property pose a potential risk of volatilization to
indoor air.” This property is under consideration for purchase by the City of South San Francisco for
commercial use. Through the conduct of this Assessment, CSS has found that hydrocarbon compounds
are present in indoor air at the Site and in outdoor air in the Site vicinity, at similar concentrations. A
likely source of hydrocarbon compounds is a nearby freeway, Highway 101 located about a block east of
the Site. Among the hydrocarbon compounds detected, benzene was found at concentrations exceeding
residential human health screening levels in both indoor and outdoor air. As indoor air concentrations of
benzene are no greater than those found in outdoor air, commercial occupancy of the Site poses no
greater risk to human health from benzene exposure than the background for other Site vicinity workers.
The reader is referred to the body of this letter report for further details of this environmental
investigation and its findings.
The Site is occupied by a two story building founded on a concrete slab and perimeter foundation with no
basement. The building was constructed prior to 1956 and is of concrete block construction with a flat
roof. At the time of our indoor air sampling, the building was vacant and no operating HVAC system was
present.
To evaluate indoor air concentrations within the Site structure, CSS collected three indoor air samples
over a six hour period on August 19, 2009. Samples were collected in 6-liter summa canisters
pre-cleaned and evacuated by the testing laboratory, Air Toxics Limited of Folsom, California. A
constant flow rate of air sampling over the period was implemented through the use of calibrated flow
controllers, one dedicated to each canister. CSS’s field records of air sample collection are attached. The
samples 5650-INDOOR1 and 3744-INDOOR2 were collect from rooms on the first floor in the
northwest and southeast corners of the building, respectively. Sample 33779-INDOOR3 was collected in
a central room on the second floor of the building. To gauge the background concentration of outdoor air
in the vicinity of the building, sample 11882-OUTDOOR-BG was collected from the parking area behind
the Site building near the southern corner of the Site property. An unopened summa canister sample,
TRIP BLANK accompanied the collected samples and was analyzed for quality control purposes. All
6601 SSF Linden Indoor Report FINAL.doc
samples were analyzed by the Air Toxics Limited laboratory for benzene, toluene, ethylbenzene and
xylenes (BTEX) by Modified EPA TO-15 SIM (Selective Ion Monitoring). Air Toxics Limited is
certified by the California Department of Health Services. During the time of sample collection the Site
was vacant and the building’s ventilation system was not operating. Wind conditions were calm in the
morning hours, with an afternoon breeze from the northwest noted in the afternoon.
The Air Toxics Limited laboratory report of the air sample analyses for BTEX are attached and
summarized in Table 1. Also presented in the table are the California Human Health Screening Levels for
Indoor Air (CHHSLs for Residential Land Use, California Environmental Protection Agency, January
2005) and the Environmental Screening Levels for Ambient and Indoor Air (ESLs for Residential Land
Use, Regional Water Quality Control Board, San Francisco Bay Region, May 2008). Of the BTEX
compounds, benzene was the only compound detected at a concentration greater than its corresponding
screening level. Benzene was detected in all but the TRIP BLANK sample and at concentrations within a
narrow range, from 0.53 mg/M3 (3744-INDOOR2) to 0.61 mg/M3 (5650-INDOOR1 and 11882-
OUTDOOR-BG). The CHHSL and ESL for benzene is 0.084 mg/M3. CHHSLs and ESLs are
conservative screening levels, for carcinogens such as benzene, residential screening levels are based on
an estimated one in a million (1 x 10-6) cancer risk and exposure 24 hours a day, 350 days a year, for 30
years.. As the maximum concentration of benzene was detected in the outdoor background sample, its
presence is reflective of a background condition and commercial occupancy of the Site poses no greater
risk to human health from benzene exposure than the background for other Site vicinity workers.
Sources of elevated benzene in the background include motor vehicle emissions and industrial activities.
In the United States, on-road motor vehicles account for 48% of benzene emissions and 70% in Southern
California’s South Coast Air Basin (EPA, National Air Quality and Emissions Trend Report 1999). The
Site is located within about 700 feet of a major freeway, Highway 101, located a block east of the Site.
Based upon the proposed commercial use of the Site, the benzene screening level of 0.084 mg/M3 is not
representative of the limited exposure frequency and duration of the proposed use of the Site. A Site
specific risk assessment considering the specific details of Site development and use would be necessary
to evaluate the specific human health risk to Site workers from background concentrations of benzene.
If you have any questions or comments regarding this report, please do not hesitate to call the
undersigned at (415) 883-6203.
Sincerely,
CSS ENVIRONMENTAL SERVICES, INC.
Aaron N. Stessman, PE REA
Principal Engineer
Attachments
Appendix E
Transfer Grant Deed Language for 559 Gateway Blvd.
Appendix E
559 Gateway Blvd.
Grant Deed Language
Upon transfer of the property to the City the grant deed will include language restricting the use of the
property to governmental use as follows: “The Successor Agency to the City of South San Francisco
Redevelopment Agency, a public entity (“Grantor”) hereby grants to the City of South San Francisco, a
municipal corporation (“Grantee”), all rights, title and interest Grantor has in the Property, as described
more specifically in Exhibit A hereto, and subject to the restrictions on use set forth in that certain
Second Amendment to Declaration of Covenants, Conditions and Restrictions for Gateway Center,
executed as of May 28, 2003, and recorded on July 2, 2003 in the Official Records of San Mateo County
as Instrument No. 2003-182458, and which is incorporated by this reference as if fully set forth
herein. In the event that Grantee discontinues the restricted use or seeks to use the Property for a non-
governmental purpose, Grantee shall enter into a compensation agreement with the San Mateo County
Auditor-Controller or other appropriate entity or entities, pursuant to Assembly Bill x1 26 and Assembly
Bill 1484 (collectively, the “Redevelopment Dissolution Law”), providing that all net revenue from such
non-governmental use shall be distributed as property tax to the taxing entities as defined in the
Redevelopment Dissolution Law. Said Property is held and hereafter shall be held, conveyed,
hypothecated, encumbered, leased, rented, used and occupied subject to such aforesaid restriction on
use, which is intended to constitute both an equitable servitude and a covenant running with the land.
Each and every contract, deed or other instrument hereafter executed covering or conveying the
Property or any portion thereof shall be held conclusively to have been executed delivered and accepted
subject to such covenant, regardless whether such covenant is set forth in such contract, deed or other
instrument. Said covenant shall be binding on the parties hereto, and on their successors and assigns.”
Appendix F
Transfer Grant Deed Language for Public Use Properties
Appendix F
General Governmental Use Properties
Grant Deed Language
Upon transfer of the property to the City the grant deed will include language restriction the use of the
property to governmental as follows: “The Successor Agency to the City of South San Francisco
Redevelopment Agency, a public entity (“Grantor”) hereby grants to the City of South San Francisco, a
municipal corporation (“Grantee”), all rights, title and interest Grantor has in the Property, as described
more specifically in Exhibit A hereto, and imposes the following restriction on use: The Property may be
used only for a governmental purpose. In the event that Grantee discontinues a governmental use or
seeks to use the Property for a different purpose, Grantee shall enter into a compensation agreement
with the San Mateo County Auditor-Controller or other appropriate entity or entities, pursuant to
Assembly Bill x1 26 and Assembly Bill 1484 (collectively, the “Redevelopment Dissolution Law”),
providing that all net revenue from such non-governmental use shall be distributed as property tax to
the taxing entities as defined in the Redevelopment Dissolution Law. Said Property is held and hereafter
shall be held, conveyed, hypothecated, encumbered, leased, rented, used and occupied subject to such
covenant to the aforesaid restriction on use, which is intended to constitute both an equitable servitude
and a covenant running with the land. Each and every contract, deed or other instrument hereafter
executed covering or conveying the Property or any portion thereof shall be held conclusively to have
been executed delivered and accepted subject to such covenant, regardless whether such covenant is
set forth in such contract, deed or other instrument. Said covenant shall be binding on the parties
hereto, and on their successors and assigns.”
Appendix G
Transfer Grant Deed Language for 472 Grand Ave./306 Spruce Ave
Appendix G
472 Grand Ave./306 Spruce Ave. & 468 Miller Ave.
Grant Deed Language
Upon transfer of the property to the County or other applicable government entity, the grant deed will
include language restricting the use of the property to governmental use as follows: “The Successor
Agency to the City of South San Francisco Redevelopment Agency, a public entity (“Grantor”) hereby
grants to the County of San Mateo , a political subdivision of the State of California [or other applicable
governmental entity] (“Grantee”), all rights, title and interest Grantor has in the Property, as described
more specifically in Exhibit A hereto, and imposes the following restriction on use: The Property may be
used only for a governmental purpose. In the event that Grantee breaches this covenant and
discontinues a governmental use or seeks to use the Property for a different purpose, Grantor may
declare the forfeiture of that portion of the Property directly affected by such breach, and may re-enter
and take possession of that portion of the Property as to which forfeiture shall have been declared and
re-entry shall have been effected. In that event, if Grantee uses or intends to use the Property for any
non-governmental use, Grantee shall enter into a compensation agreement with the San Mateo County
Auditor-Controller or other appropriate entity or entities, pursuant to Assembly Bill x1 26 and Assembly
Bill 1484 (collectively, the “Redevelopment Dissolution Law”), providing that all net revenue from such
non-governmental use shall be distributed as property tax to the taxing entities as defined in the
Redevelopment Dissolution Law. Said Property is held and hereafter shall be held, conveyed,
hypothecated, encumbered, leased, rented, used and occupied subject to such covenant to the
aforesaid restriction on use and the aforesaid reversionary interest of Grantor, which are intended to
constitute both equitable servitudes and covenants running with the land. Each and every contract,
deed or other instrument hereafter executed covering or conveying the Property or any portion thereof
shall be held conclusively to have been executed delivered and accepted subject to such covenant,
regardless whether such covenant is set forth in such contract, deed or other instrument. Said covenant
shall be binding on the parties hereto, and on their successors and assigns.”
In the event the County of San Mateo does not accept the property, the property will be conveyed to
the City for public use and the following language will be included in the grant deed: “The Successor
Agency to the City of South San Francisco Redevelopment Agency, a public entity (“Grantor”) hereby
grants to the City of South San Francisco, a municipal corporation (“Grantee”), all rights, title and
interest Grantor has in the Property, as described more specifically in Exhibit A hereto, and imposes the
following restriction on use: The Property may be used only for a governmental purpose. In the event
that Grantee discontinues a governmental use or seeks to use the Property for a different purpose,
Grantee shall enter into a compensation agreement with the San Mateo County Auditor-Controller or
other appropriate entity or entities, pursuant to Assembly Bill x1 26 and Assembly Bill 1484 (collectively,
the “Redevelopment Dissolution Law”), providing that all net revenue from such non-governmental use
shall be distributed as property tax to the taxing entities as defined in the Redevelopment Dissolution
Law. Said Property is held and hereafter shall be held, conveyed, hypothecated, encumbered, leased,
rented, used and occupied subject to such covenant to the aforesaid restriction on use, which is
intended to constitute both an equitable servitude and a covenant running with the land. Each and
every contract, deed or other instrument hereafter executed covering or conveying the Property or any
portion thereof shall be held conclusively to have been executed delivered and accepted subject to such
covenant, regardless whether such covenant is set forth in such contract, deed or other instrument. Said
covenant shall be binding on the parties hereto, and on their successors and assigns.”
Appendix H
Property Tax Increment Projections
Appendix I
Strategic Economics SSF ECHO II Study of PUC Properties
South San Francisco
ECHO II Case Study
Draft Report
September 19, 2013
Prepared for:
Grand Boulevard Initiative
City of South San Francisco
Table of Contents
I. INTRODUCTION ............................................................................................................... 3
II. STUDY AREA OVERVIEW .............................................................................................. 5
III. MARKET FINDINGS ......................................................................................................... 7
IV. DEVELOPMENT FEASIBILITY ANALYSIS ..................................................................... 9
V. CONCLUSION ................................................................................................................ 15
APPENDIX .................................................................................................................................. 16
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Report Purpose
The City of South San Francisco has identified the intersection of El Camino Real and Chestnut Avenue
as a key opportunity site for new development and economic revitalization. The El Camino Real/Chestnut
Avenue Area Plan, adopted in 2011, establishes a compelling long-term vision for the area as a new
mixed-use neighborhood with residential, retail, and civic uses at a range of densities, along with public
plazas and open space that benefit the broader community. The City owns 10 acres of vacant and
underutilized property between El Camino and Mission Road, originally purchased by the redevelopment
agency with the goal of facilitating development in an area that faces a variety of implementation
challenges. Following the dissolution of the redevelopment agency in 2012, the City of South San
Francisco, as the successor agency, is responsible for developing a strategy for these properties. This
could consist of the sale of individual properties, or the City could enter into a master development
agreement with a single developer identified through a Request for Proposals (RFP) process. The goal of
this case study is to shed light on these options and make recommendations to the City on the strategy
most likely to maximize the long-term value of the properties while also maintaining the vision expressed
in the El Camino Real/Chestnut Avenue Area Plan.
The ECHO II consultant team, led by Strategic Economics with sub-consultant Van Meter Williams
Pollack (VMWP), worked closely with City staff to define a scope of work that would help the City to
understand the short- to mid-term implementation options for the City-owned properties. The case study
began with a market analysis to understand the short-term potential for development. Next, the team
explored a range of options for phased development at the site, and tested the feasibility of a development
program that would be consistent with a master-developed approach to the area. Based on this analysis,
the team determined that an orchestrated master developer approach to development is most likely to
meet City goals.
Grand Boulevard Initiative and ECHO II Project Background
Because the study area exemplifies both the opportunities and challenges of infill development along El
Camino Real in the post-redevelopment era, it was selected as a case study for the second phase of the
Economic and Housing Opportunities (ECHO II) Assessment funded by the Grand Boulevard Initiative
(GBI). The Grand Boulevard Initiative is a regional collaboration of cities, two counties, and local and
regional agencies dedicated to the revitalization of the 47-mile El Camino Real corridor from Daly City to
San Jose. The GBI vision is for El Camino Real to achieve its potential as a vibrant multimodal corridor
that connects places where residents work, live, shop and play. The vision will be achieved by integrated
land use and transportation planning that targets infill development along the corridor and balances the
need for cars and parking with transit, walking and biking.
The Economic and Housing Opportunities Assessment is an ongoing study sponsored by GBI. The first
phase of the Economic and Housing Opportunities Assessment (ECHO I) assessed the economic benefits
of infill development along El Camino Real, and provided building prototypes and renderings to illustrate
the impact of change. The second phase of the study (ECHO II) addresses implementation challenges to
infill development along the corridor.
To ensure that the ECHO II analysis reflected the variety of conditions found on the corridor, the
consultant team conducted four case studies of cities along the corridor. In addition to South San
Francisco, the other case study cities are Daly City, Belmont and Mountain View. Case study findings
will be incorporated into an implementation guidebook that describes strategies and tools applicable to
other GBI cities.
I. INTRODUCTION
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Report Contents
Following this introduction, Section II provides a more detailed overview of the study area. Section III
summarizes the results of a market analysis prepared for the study area, and Section IV provides the
results of the financial feasibility analysis. Major conclusions from the analysis are summarized in
Section V. Detailed assumptions used in the financial feasibility analysis are included as an Appendix.
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The South San Francisco study area comprises approximately 16 acres between El Camino Real and
Mission Road, located at the heart of the 98-acre planning area in the El Camino Real/Chestnut Avenue
Area Plan (see Figures 1 and 2).1 The Area Plan accommodated a significant amount of future City
growth within the core of the planning area, including 1,215 residential units, 186,800 square feet of
ground floor retail, 73,000 square feet of office space and a 50,000 square feet library. The City’s zoning
regulations support the Plan’s vision of intensified development, requiring a minimum floor area ratio
(FAR), and allowing residential densities of up to120 units per acre by right. Foundation work is not
allowed directly above the BART tunnel.
Figure 1. South San Francisco Study Area Boundary
Source: City of South San Francisco, 2010; Strategic Economics, 2013.
1 The boundaries of the study area have been chosen to coincide with the boundaries of City-owned vacant and
underutilized properties, reflecting the case study’s focus on the City’s strategy for these properties. The original
study area proposed by the City of South San Francisco in its ECHO II case study application corresponds to the
entire 98- acre planning area defined in the El Camino Real/Chestnut Area Plan, and includes numerous additional
privately- and publicly-owned properties north and south of the study area.
II. STUDY AREA OVERVIEW
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Figure 2. Study Area Context
Source: City of South San Francisco, 2010; Strategic Economics, 2013.
The relatively large size of the assembled parcels, combined with its location near the South San
Francisco BART station, makes this one of the most important development opportunity sites along El
Camino Real. Nevertheless, the study area has several physical characteristics that pose significant
implementation challenges. There is a sharp slope downwards from El Camino Real toward Mission
Road, with a grade change of up to 50 feet in certain locations. The developable parcels are also oddly-
shaped due to the BART easement and the Colma Creek Channel which both cut through the site.
The City of South San Francisco has already made substantial public improvements to the study area with
the construction of Centennial Way, a multi-use bikeway and linear park constructed on top of the
underground BART tunnel and alongside the Colma Creek channel. The trail provides an open space
connection between the South San Francisco and San Bruno BART Stations for residents, commuters and
recreationalists, offering an alternative to sidewalks along El Camino Real and Mission Road. As of its
completion in May 2009, the trail was 2.85 miles long.
Another major public infrastructure project planned in the study area the Oak Avenue extension, which
would extend Oak Avenue from Mission Road through to Arroyo Drive, in accordance with the General
Plan. This extension is expected to improve east-west connectivity within the study area.
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Strategic Economics evaluated the potential for new residential, office retail, and mixed-use development
in the study area with a focus on the next ten years or less. The analysis included a review of
demographic, employment, and market trends and interviews with real estate brokers and developers with
experience in South San Francisco and the broader North San Mateo County market area.2 Key findings
of the market analysis are summarized below. For additional details on the methodology and results, see
Strategic Economics’ market analysis memorandum.3
The study area is well-positioned for residential development with supporting commercial uses.
There is strong demand for new residential development in South San Francisco and the broader northern
San Mateo County area. Employment growth in the Silicon Valley and San Francisco is a major driver of
demand for housing in the market area. The study area offers excellent access to regional transit and
freeways, and is an ideal location for professionals seeking a convenient commute to job centers in San
Francisco or on the Peninsula.
Recent development in North San Mateo County suggests that low-rise apartment development (3-5
stories over podium) will be the most feasible to build. Some small condo projects are currently
planned in the area, however, these are mainly on small sites that do not offer sufficient economies of
scale for rental projects. The return of the market for larger condo projects is anticipated to take several
years, however the exact timing is difficult to predict. In general, demand for multi-family housing in the
study area is projected to be between 50 and 104 units per year on average. The amount of residential
development that could be absorbed in any one year will depend on a number of factors including the
timing of other nearby projects.
In terms of retail, neighborhood-serving businesses such as restaurants, personal and financial
services are most likely to be successful in the study area. The amount of retail that could be supported
in the study area in the near term is on par with a traditional strip center (10,000 square feet) or possibly a
grocery-anchored neighborhood center (30,000 to 120,000 square feet). The location is excellent for a
grocery-anchored neighborhood center as evidenced by the success of the existing Safeway. Whether a
new grocery store can serve as an anchor as part of redevelopment of the study area will depend in part on
whether a new grocery store is provided as part of the nearby Centennial Village project. Strong
competition from nearby regional centers makes a larger shopping center unlikely.
To attract prospective households and businesses, it will be important for the area to offer
amenities such as local-serving retail. Residential and office brokers emphasized the importance of
pedestrian-oriented retail, restaurants and activities to the success of new projects. While there are several
grocery stores and other types of retail near the BART Station and near the intersection of El Camino
Real and Chestnut Avenue, the existing development surrounding the study area currently lacks the
walkable form and critical mass of retail to create a hub of activity. New retail uses intended to support
pedestrian activity do not necessarily need to be integrated on the ground floor of residential buildings;
depending on the project, it may be more effective to concentrate retail in a separate structure.
2 The North San Mateo County market area was defined to include Daly City, South San Francisco, Colma, San
Bruno, and Millbrae. These cities share certain demographic and employment characteristics that differentiate them
from cities farther south along the Peninsula, thus comprising a distinct market area in which households and
businesses are likely to consider locational decisions.
3 Strategic Economics, “South San Francisco Market Analysis Memo,” Prepared for the City of South San Francisco
and SamTrans, September 7, 2012.
III. MARKET FINDINGS
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The potential for office is limited in the near term. Although South San Francisco is an important
center for the biotech and logistics industries, firms in these sectors are concentrated along the US-101
highway and are unlikely to be interested in locating in the study area. Due to the risk associated with an
unproven location, a major tenant would need to be identified before a developer would proceed with an
office project. For these reasons, office uses are not included in the development program described in
Section IV.
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Working with city staff, the consultant team explored a range of development scenarios for the study area.
The feasibility analysis focuses on the development program that was deemed to be market-driven,
consistent with the community’s vision, and likely to generate the greatest value.
This section begins with a description of the City-owned properties and the development program. Next,
the results of the financial feasibility analysis are presented along with a summary of key findings.
Assumptions used in the financial feasibility analysis are documented in the appendix.
Site Description
The properties included in the development feasibility analysis are shown in Figure 3. In addition to the
10 acres owned by the City (shown in blue), the development program includes 2.8 acres that are subject
to an easement because they are in the BART right-of-way. Although the BART tunnel is underground,
structural constraints limit improvements that can be made on the ground above to projects that do not
involve any foundation work, and development along this easement would require BART approval.4 The
Colma Creek Channel, Antoinette Lane and the planned Oak Avenue extension also play a major role in
defining the shape and size of the developable acreage.
Figure 3. Study Area Parcel Boundaries
Source: Van Meter Williams Pollack, 2013.
4 City of South San Francisco, El Camino Real/Chestnut Ave Area Plan, July 2011.
IV. DEVELOPMENT FEASIBILITY ANALYSIS
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Site A is the southernmost of the three development sites, located between Chestnut Avenue and the
proposed Oak Avenue extension. The site is divided into three subsections by the BART easement and
Antoinette Lane. Each of these parcels is described in more detail below.
Parcel 1 is 1.9 acres with frontage along Antoinette Lane and Chestnut Avenue. It is currently
home to a vacant single-story retail building. This parcel has received interest from businesses
and developers. (Labeled “Site A1” in Figure 3.)
Parcel 2 is a long, shallow parcel between El Camino Real and the BART easement, with a total
area of 1.5 acres. (Labeled “Site A2” in Figure 3.)
Parcel 3 is a triangular 0.9 acre parcel bounded by the proposed Oak Avenue extension, the
BART easement and Antoinette Lane. (Labeled “Site A3” in Figure 3.)
Site B is located on the north side of the proposed Oak Avenue extension, bounded by the BART
easement to the southwest and the Colma Creek channel to the northeast. The developable area owned by
the City is 1.5 acres; the BART easement is 1.1 acres.
Site C is the largest parcel at 4.5 acres. Located on the north side of the proposed Oak Avenue extension,
it is bounded by the BART easement and Centennial Trail to the southwest and by Mission Road to the
northeast.
Development Program
The consultant team worked with City staff to devise a development program that is both market driven
and consistent with the community’s goals for the study area as expressed in the El Camino
Real/Chestnut Avenue Area Plan. The development program assumes redevelopment of all City-owned
parcels in a manner consistent with a master developer approach. In this approach, the property is
redeveloped with the goal of maximizing the combined potential of all of the parcels. Orchestrating
development across all parcels offers two major benefits:
1) Economies of scale. Larger projects can benefit from savings on some “soft” costs of
development such as site planning, entitlements, financing and marketing. In some cases, they
can also save on some of the “hard” costs related with construction. Larger projects are also more
likely to be of sufficient scale to assist in addressing related public improvements in utilities,
access, or other infrastructure.
2) More efficient site design. Developed incrementally, each parcel would need to address access,
parking and open space separately. A master developer approach allows required parking to be
provided in a more economical way, in particular by making use of the BART easement for retail
parking for multiple buildings.
Consistent with findings of the market analysis, the development program consists primarily of residential
uses with some supporting retail.5 Because initial analysis found that construction costs are prohibitively
high for buildings over six stories; the development program does not include buildings over that height.
The final development program is summarized in Figure 4, and the drawings are provided in Figures 5
and 6.
Site A consists of three buildings with a total of 194 residential units and 32,000 square feet of retail.
Each building has three to four residential levels over ground floor podium parking and retail. The retail
businesses in all three buildings would be served by 131 shared surface parking spaces on the BART
easement and Antoinette Lane, at a ratio of approximately 4 spaces per 1000 square feet.
5 Earlier iterations of the analysis included a development scenario with more retail on Site A. This scenario was
founded to be financially infeasible and was therefore excluded from consideration in later stages of the analysis.
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Sites B and C are both entirely residential with one floor of ground floor podium parking. Site B contains
100 units in four levels above one level of podium parking. The structured parking is supplemented by an
additional 26 surface parking spots on the BART easement. Site C is developed with 400 residential units
in four levels above two levels of podium parking.
Figure 4.Summary of Sites and Building Prototypes Tested
Site A Site B Site C
Developable Area (acres) 4.2 1.5 4.4
BART Easement 1.7 1.1 0
Description Residential Over
Ground Floor Retail
and Podium
Parking
Residential Over
Podium Parking
Residential Over
Podium Parking
Stories 4-5 Stories 5 Stories 6 Stories
Retail Area (sq. ft.) 32,400 0 0
Residential Units 194 100 420
Residential Parking Ratio 1.5 1.5 1.5
Source: VMWP, 2013.
Figure 5. Plan View
Source: Van Meter Williams Pollack, 2013.
Plan View
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Figure 6. Axial View
Source: Van Meter Williams Pollack, 2013.
Financial Feasibility Results
The financial feasibility results are summarized in Figure 7. Strategic Economics used a “land residual”
approach to test the feasibility of the development program. This method estimates the amount that a
developer can afford to pay for the property based on the expected costs and revenues associated with the
development program. If the residual land value is similar to the expected cost of land, it suggests that the
project is feasible. If the residual land value is less than the expected cost of land, or negative, it suggests
that the project is not feasible.
For the purposes of the analysis, land values for residential and mixed use development near the study
area are estimated to range from $50 to $75 per square foot. This price range is based on recent
transactions and asking prices for properties in the surrounding area, as well as interviews with brokers
and developers active on the San Francisco Peninsula. It should be noted that land prices vary greatly
depending on the location and specific characteristics of the property, as well as zoning, intended use and
market conditions.
Axial View
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Figure 7. Financial Feasibility Results
Site A Site B Site C
Development Costs
Hard Costs $67,830,000 $31,388,000 $125,861,000
Soft Costs $20,349,000 $9,416,000 $37,758,000
Financing Costs $3,224,000 $1,492,000 $5,982,000
Developer's Return $10,968,000 $5,076,000 $20,352,000
Total Costs $102,372,000 $47,372,000 $189,953,000
Total Revenue $104,580,000 $47,078,000 $189,477,000
Residual Land Value $2,208,000 -$294,000 -$476,000
Per Square Foot $8.03 -$2.63 -$2.46
Source: Strategic Economics, 2013.
Key Findings
Low-rise residential projects with podium parking and ground floor retail are likely to be
financially feasible within the next few years. The low and slightly negative residual land values in
Figure 4 indicate that none of the projects tested are feasible under current market conditions. However,
the development program would become feasible with relatively small increases in residential rental rates,
holding construction costs constant. A 5 percent increase in residential rents (from $2.80 to $2.95 per
square foot) would be sufficient to achieve a residual land value of $50 per square foot on Site C (Figure
8). Due to the lower density of residential units on Site A and Site B, these sites would require a 12
percent increase in residential rents (from $2.80 to $3.15 per square foot) to achieve a residential land
value of $50 per square foot.
Figure 8. Increase in Rent to Achieve Residual Land Value of $50/sq.ft.
Site A Site B Site C
Residential Market Rent ($/sq. ft.) $2.80 $2.80 $2.80
Required Rent ($/sq. ft.) $3.15 $3.15 $2.95
Percent Increase 12% 12% 5%
Source: Strategic Economics
Significant densities can be achieved with buildings that are four to six stories. Site C achieves a
residential density of 95 units per acre, in the range of the densities envisioned in the El Camino
Real/Chestnut Avenue Area Plan, which envisions high-rise development. The advantage of this building
type over high-rise towers is that the building costs are significantly lower per square foot,6 making them
much more likely to be feasible in the near term.
6 In a development feasibility analysis conducted by Strategic Economics and VMWP elsewhere in the Bay Area,
high-rise construction costs were estimated to be 40 to 50 percent higher than low-rise construction costs on a per-
square-foot basis.
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The financial feasibility of retail uses is dependent upon surface parking. In the development
program, the BART easement and Antoinette Lane provide convenient and ample customer parking for
Site A ground floor retail. This is an ideal use of the BART easement because development over the
easement would be cost prohibitive. Use of this area for parking enables greater retail and residential
development on the other developable sites. If the BART easement were not available for use as surface
parking, the parking would need to be provided elsewhere on Site A, which would either take away from
the building footprint of Parcels 1, 2 and 3, or require additional structured parking. The expected revenue
generated by the retail uses is not sufficient to support the initial high cost of structured parking. ECHO II
case studies in Mountain View and Daly City have also found that onsite parking can be a major
challenge for retail uses, particularly for smaller properties. In this case, the use of the BART easement
for shared parking is a critical advantage in facilitating development on the City-owned parcels.
A master-developer approach enables cost efficiencies and site design flexibility that translate into
improved development feasibility. The development program tested in the financial feasibility analysis
is a “best-case” scenario that maximizes shared costs and site design flexibility for all City-owned parcels.
In contrast, redevelopment in other locations along El Camino Real is hindered by design and financial
feasibility challenges associated with small, shallow parcels. In particular, shallow parcels constrain the
ability to of a site to accommodate parking and vehicle access, a problem that is effectively solved in the
study area with use of the BART easement. However, while a high-density transit-oriented project with
the City’s involvement seems likely to result in a favorable partnership with BART, an incremental
development strategy is less likely to lead to a maximally beneficial surface parking arrangement.
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V. CONCLUSION
The study area presents a unique opportunity for coordinated development to realize the vision of the
neighborhood as a vibrant node of activity along the El Camino Real corridor. The market study and
development feasibility analysis illustrate the substantial benefits of treating the City parcels as a single
development opportunity that allows for coordinated, phased development of the study area.
A coordinated, master developer approach can maximize the value of the property and result in
development that is consistent with the El Camino Real/Chestnut Avenue Area Plan. In the current
market, certain properties, such as Parcel 1 on Site A, may be attractive for immediate sale because of
their location, access and existing improvement. However, this would severely limit the ability to develop
the adjacent properties on Site A, resulting in lower property value overall, and development that is
inconsistent with the long term vision.
The City can facilitate development of the site through a RFP process and by entering into a
development agreement with the chosen developer. The financial analysis found that the most
profitable site for development is Parcel C, at the north end of the site. Including this area with more
challenging to develop parcels at the south end of the site may be a useful incentive to help attract a
developer. A development agreement can be structured to allow some flexibility for the developer to
respond to the market, while also providing terms that will be financially favorable for the City. The City
may also be able to help bring some public resources to help facilitate development, such as regional,
state or federal grants for streetscape or other improvements that help to improve the attractiveness of the
area for new development.
Given improving market conditions, it seems likely that development could occur within the next
five years. The analysis shows that residential development with supporting retail is likely to be feasible
soon with improving market conditions. Given the strong residential demand in San Mateo County,
market conditions are likely to improve to the point where residential development is attractive for
developers, meaning that the City will not need to hold the properties for a long time before development
is possible.
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FINANCIAL FEASIBILITY ASSUMPTIONS
Cost Assumptions
Development costs consist of hard construction costs, soft costs such as permits and fees, financing costs
and developer profit.
Hard Costs
Hard costs consist of material and labor costs for construction. The construction costs used in the model
were provided by VMWP based on recent construction projects and information from local contractors.
Figure A-3 summarizes the hard costs for major program elements. These costs assume prevailing wages
for labor.
Note that certain variations exist in construction costs for different scenarios and sites, as follows:
Residential construction costs are $171 per square foot for Type V, four-story construction and
$182 per square foot for Type 3A, five-story construction.
Parking construction costs range from $85 to $95 per square foot depending on the complexity of
the structure.
Figure A-3. Summary of Hard Costs
Item Cost Per Sq. Ft.
Retail Area (including TI) $125
Retail Tenant Improvements $50
Residential Area $171/$182
Parking Structure $85/$95
Podium Landscaping $50
Landscaping $25
Surface Parking $25
Antoinette/Colma Creek Bridge $75
Source: VMWP, 2013.
Soft Costs
Soft costs include permits, architectural fees, engineering fees, developer overhead, insurance, taxes, legal
fees, accounting fees and marketing costs. . Soft costs are typically estimated to be a certain percentage of
hard costs. In this model, Strategic Economics estimated soft costs to be 30 percent of hard costs.
Financing Costs
Financing costs were based on the assumption that a construction loan would be obtained for 65 percent
of the cost of development for a term of 15 months, with a 6.0% interest rate and a 1.5% loan fee. The
cost estimate assumes an average outstanding loan balance of 55 percent.
APPENDIX
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Developer Profit
The analysis assumes developer profit equal to 12 percent of development costs, not including land.
Actual profit margin expectations depend on a variety of factors including market conditions and the
expected project timeframe.
Revenue Assumptions
The value of apartments and retail space were estimated using an income capitalization approach, in
which the expected rental income is divided by a standard capitalization rate to obtain value per square
foot.
Residential Valuation
Residential valuation assumptions are listed in Figure.
The apartment rent of $2.80 per square foot is based an evaluation of overall market conditions in San
Mateo County as well as asking rents for a sample of recently-constructed transit-oriented apartment
projects in South San Francisco, Colma and San Bruno.
Figure A-4. Residential Valuation Assumptions
Parameter Value
Monthly Rent per SF $2.80
Vacancy 5.0%
Operating Expenses 28%
Capitalization Rate 5.0%
Capitalized Value per SF $470
Source: Cassidy Turley, 2013, Strategic Economics, 2013.
Retail Valuation
Retail valuation assumptions are listed in Figure A-5.
Given that this will be new construction, the monthly rent assumption of $2.50 per square foot is higher
than the North San Mateo County average asking rent of $2.15 for the fourth quarter of 2012.
The capitalization rate assumption is based on the 2012 average San Mateo County retail capitalization
rate reported by Cassidy Turley.
Figure A-5. Retail Valuation Assumptions
Parameter Value
Monthly Rent per SF (NNN) $2.50
Vacancy 5%
Non-Reimbursable Expenses 10%
Capitalization Rate 6.5%
Capitalized Value per SF $392
Source: Terranomics, 2012; Cassidy Turley, 2013, Strategic Economics, 2013.
Appendix J
Brookwood Group Memorandum on Downtown Properties Development
MEMORANDUM (DRAFT)
Date: August 23, 2013
To: Armando Sanchez, City of South San Francisco
From: Shepherd Heery, Alan Katz and Jelani Dotson
Re: South San Francisco Downtown Properties Financial Feasibility Analysis
Preliminary Results Memorandum
INTRODUCTION
This memorandum summarizes the results of a development feasibility analysis prepared by
Brookwood Group for ten city-owned properties in the downtown. The development program
and construction cost information were provided by the architectural and urban design firm of
Van Meter Williams Pollack (VMWP) on July 17, 2013. Separately, the Grand/Cypress project
development program was provided by Gould Evans Architects on December 12, 2012.
The purpose of the analysis includes providing development feasibility information to the City
for its Property Management Plan (PMP) and related activities following dissolution of its
redevelopment agency. This analysis represents Part Two of an analysis of South San Francisco’s
Successor Agency property portfolio. Part One of the analysis was prepared by the consulting
firm of Strategic Economics (See Mission-Chestnut Preliminary Financial Feasibility Analysis
Results Memorandum, May 10, 2013) and focuses on the El Camino Chestnut Area.
This downtown properties feasibility memorandum includes the following sections:
I. DEVELOPMENT PROGRAM Page 2
II. METHODOLOGY Page 5
III. SUMMARY OF RESULTS Page 6
IV. ASSUMPTIONS Page 7
V. APPENDIX 1 Page 11
PMP - Downtown Properties Memorandum
August 23, 2013
Page 2 of 14
I. DEVELOPMENT PROGRAM
The analysis herein focuses on ten City-owned properties in the Downtown. The sites range in
size from 0.15 acres to 1.15 acres (4.5 acres total) and can accommodate infill residential and
residential/retail mixed-use developments. Site locations are provided in Figures 1 and 2.
Baseline development program information appears in Tables 2 and 3. Building types range
from townhomes over tuck-under garages to mixed-use high density buildings with sub-grade
parking, ground-level retail podium and residential flats. A parking ratio of 1.5 spaces per unit
(or more) applies to each site, except Grand and Cypress assumes a minimum ratio of 1 space
per unit. Density ranges from 25 to 80 dwelling units per acre. In total, the baseline program
includes approximately 240 residential units, 480 parking spaces, and 24,000 square feet of
retail.
The planning and zoning standards used to prepare the baseline development programs vary.
VMWP applied conceptual zoning standards to generate the programs in 2009, prior to the
adoption of the current zoning ordinance. Gould Evans used current zoning standards to
generate the Grand/Cypress program – taking into consideration future zoning changes
resulting from the Downtown Station Area Plan (DSAP). The City is currently preparing the
Downtown Station Area Plan that will include updated zoning standards and increased densities
in certain parts of the downtown.
In addition to the baseline development program (based on conceptual and current zoning),
alternative development programs were prepared for the downtown sites, except Grand and
Cypress, using residential densities and parking standards anticipated for the DSAP. In most
cases, the residential units at each site increased and parking spaces decreased (in proportion to
units). Table 1 summarizes the distinction between the baseline and DSAP alternatives.
Table 1. Development Program Alternative Comparison
BASELINE PROGRAM DSAP (Increased Density)
Units Parking Units Parking
Site 1.1 50 88 100 100
Site 2.1 81 138 162 162
Site 2.2 29 62 58 58
Site 2.4 14 21 28 28
Site 3.5 25 38 50 50
Baden 4 8 12 12
Grand/Cypress 37 49 37 49
Site 4.1 20 30 20 20
Site 4.2 20 30 20 20
Hillside 11 17 11 11
Totals 240 480 500 510
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August 23, 2013
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Site 1.1 Site 2.1 Site 2.2 Site 2.4 Site 3.5 Baden Grand/Cypress
Baseline Development Program
Lot Area (Acres) 0.72 1.06 0.51 0.20 0.41 0.16 0.46
Lot Area (sq. ft.) 31,404 46,043 22,136 8,763 17,677 6,912 20,200
Height (Stories) Four Four Four Three Four Two/Three Four
Residential Units 50 81 29 14 25 4 37
Residential Parking Ratio 1.5 1.5 1.5 1.5 1.5 2 1.3
Residential Density (units/acre) 69 77 57 70 62 25 80
Retail Area (sq. ft.) 6,500 8,000 9,000 0 0 0 8,000
FAR 3.2 3.6 3.4 3.3 2.6 1.1 3
Site 1.1
Site 2.2
Site 2.1
Site 2.4
Site 3.5
Baden
Figure 1. Downtown Properties (South of Lux Ave.)
Table 2. Downtown Properties (South of Lux Ave.)
Grand/Cypress
City Hall
PMP - Downtown Properties Memorandum
August 23, 2013
Page 4 of 14
Site 4.1 Site 4.2 Linden @ Hillside
Baseline Development Program
Lot Area (Acres) 0.33 0.33 0.26
Lot Area (sq. ft.) 14,387 14,387 11,434
Height (Stories) Two and Three Two and Three Two or Three
Residential Units 20 20 11
Residential Parking Ratio 1.5 1.5 1.5
Residential Density (units/acre) 61 61 42
Retail Area (sq. ft.) 0 0 0
FAR 2.9 2.9 2.0
Site 4.1
Linden @ Hillside
Figure 2. Downtown Properties (North of Lux Ave.)
Table 3. Downtown Properties (North of Lux Ave.)
Site 4.2
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August 23, 2013
Page 5 of 14
II. METHODOLOGY
Brookwood Group used the “residual land value” approach to determine the feasibility of the
development program for each site.
Residual land value (RLV) is the value of land determined by deducting from the value of an
improved property, the costs of development and a market rate profit. This methodology is
often used where direct land sale comparable information is not available without substantial
adjustment for the use and development conditions. Additionally, this method estimates the
amount that a developer can afford to pay for the site based on the expected costs and
revenues associated with the development program. A calculated residual land value equal to
the expected cost of land suggests that a project is feasible. A residual land value significantly
less than the expected cost of land, or negative, suggests that a project is not feasible.
Strategic Economics found that the expected cost of land in the ECR - Chestnut plan area ranges
from $50 to $75 per square foot. Brookwood reviewed appraisals prepared for the City of South
San Francisco. Land values in the downtown are markedly more valuable, and typically range
from $70 to $90 per square foot.
Residual land values were calculated for both apartment and condominium developments.
Apartments provide the highest and best use for the sites in current and projected market
conditions. Condominium market conditions may improve and provide greater feasibility in the
future. Residual Land Values for condominiums trailed feasibility thresholds in most scenarios.
Consideration of park-in-lieu-fees and affordable housing requirements further impair
condominium feasibility. Accordingly, condominium RLV’s are excluded from the results.
It should be noted that comparable sales and rental data used in this analysis are very limited.
Development of buildings of the quality and character provided for in this analysis do not exist
currently in the downtown.
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August 23, 2013
Page 6 of 14
III. SUMMARY OF RESULTS
In summary, projected market conditions (improved rent pricing via downtown revitalization)
extend feasibility to several sites. Additional density and lower parking ratios, per the DSAP,
makes development feasible for most of the sites. See Appendix 1 for preliminary RLV results.
Grand and Cypress, Site 3.5, Baden and Hillside appear to have the best preliminary Current
Market results. Projected Market assumptions (10% price increase above Current Market
assumptions) make Grand/Cypress and Site 3.5 feasible.
For the DSAP (higher density) alternatives, the results improved. Two of the sites (Site 3.5 and
Baden) show feasibility and the Hillside site shows a positive RLV in Current Market conditions.
Projected Market assumptions make development feasible or positive for all sites, except Sites
4.1 and 4.2.
Apartment pricing used for these scenarios appears in Table 4.
Table 4. Pricing Scenario Assumptions
Apartment ($/nsf)
Current Market $2.80
Projected Market $3.10
Notes:
A. The data used to establish Current Market includes rent comp reports, rental listings on apartment
company websites and third party websites such as craigslist and Zillow, multiple listing service (MLS)
databases and Strategic Economics. It is important to clarify that there is little or no truly comparable
product located downtown at this time. As a result, current market lease rates for the El Camino Real
Chestnut Area (similar mixed-use product quality and density) are applied to the downtown sites.
B. “Current Market” conditions reflect Brookwood’s opinion that the downtown’s walkability, urban
character and amenities and proximity to public transit (Samtrans, CalTrain, and San Francisco Bay Ferry)
support a lease rate ($2.80/nsf) on par with the similar quality product in the El Camino Chestnut Area.
The City’s policies and active effort to enhance the urban environment reinforce Brookwood’s opinion.
C. “Projected Market” pricing reflects Brookwood’s view of market conditions as downtown revitalization
gains momentum and comes to fruition.
PMP - Downtown Properties Memorandum
August 23, 2013
Page 7 of 14
IV. ASSUMPTIONS
This analysis includes assumptions for costs and revenues as follows:
Cost Assumptions
The development costs assumptions in this report include hard costs, soft costs, financing costs
and developer profit.
Hard Costs
Van Meter Williams and Pollack provided construction “hard” cost estimates for the
downtown properties based on recent projects and interviews with local contractors.
This price exceeds costs for similar construction at the El Camino Real sites to account
for the additional costs associated with building in the downtown on smaller sites with
tight working conditions and standards, traffic congestion, noise reduction standards,
additional security and diminished economy of scale. Hard cost assumptions are
summarized in Table 5 below:
Table 5. Summary of Hard Costs (per gross square foot)
Residential Hard Cost
$200
Commercial Hard Cost
$150
Commercial Tenant Improvements Cost
$50
Landscape Cost
$30
Landscape Podium Cost
$75
Parking Hard Cost (structure)
$140
Parking Hard Cost (surface) $50
Parking Hard Cost (mechanical lift) $30
Hard Cost Contingency
5%
Soft Costs
Strategic Economics used a soft cost factor of 25% of hard costs for the calculation of
soft cost (architecture and engineering, permits and fees, taxes and insurance, and
other indirect costs). For comparison purposes, Brookwood used the same soft cost
factor. Further, Van Meter Williams and Pollack suggested that 25% is appropriate for
the smaller sites (<20 units) assuming that small-scale, multi-discipline, entrepreneurial
builders can deliver smaller projects at a lower cost.
Financing Costs
Conventional financing is assumed for each site in this analysis. In addition to a
conventional construction loan, Brookwood assumes that the project would be financed
by equity from the developer and that developer’s profit includes the cost of equity
financing during the development period.
PMP - Downtown Properties Memorandum
August 23, 2013
Page 8 of 14
Construction loan (Table 6) assumptions include:
Table 6. Summary of Construction Loan Terms
Loan-to-Cost
65%
Construction Loan Fees and Closing
1.5%
Interest Rate
6.00%
Construction Period
16 Months
Average Balance (% of loan amount)
60%
Developer’s Profit
This analysis assumes a developer profit of 12% of total development costs, excluding
land. In addition to covering developer overhead and profit, this variable, we assume,
covers the cost to finance early stage project costs and provide the necessary financial
guarantees before construction loan funding begins. Actual profit margin expectations
depend on a variety of factors including size, scope and complexity of project, market
conditions and schedule.
Revenue and Valuation Assumptions
The value of the residential units (apartments) and retail space are estimated using the standard
income capitalization approach (Net operating income divided by an appropriate cap rate). In
addition, the value of for-sale residential units (Condos) is estimated using South San Francisco
comparable sales and historical data on a per-square-foot-basis.
Residential revenue and valuation
Rental and sale price information for new multifamily units (apartment and condo) in
Downtown South San Francisco is not readily available because no significant new
supply has been developed in the area over the last 10 years. As a result, this analysis
relies on adjusted city-wide and regional data.
Rental price is based on Strategic Economics’ assumptions for the El Camino Real –
Chestnut area (ECR-Chestnut), adjusted for the downtown. Strategic Economics
concluded that the appropriate rental rate for residual land value analysis for ECR-
Chestnut is $2.80 per square foot. For the downtown, a discount factor of 10% is
applied to reflect the premium afforded to the ECR-Chestnut site’s proximity to the
South San Francisco BART station. The resultant rental rate is $2.50 per square foot. A
premium of 10% is then applied to reflect the downtown’s walkability, urban character
and amenities and proximity to public transit (Samtrans, CalTrain, and San Francisco Bay
Ferry)
Sale price is based on comparable sales data for condominiums in South San Francisco.
Historical data is adjusted using a growth rate derived from the S&P Case-Shiller Home
Price Index for the San Francisco region (CSI-SF). Comparable sales data was obtained
from a multiple listing service (MLS) database, Strategic Economics and Zillow. After
PMP - Downtown Properties Memorandum
August 23, 2013
Page 9 of 14
adjusting Strategic Economics and Zillow sales data using the CSI-SF, an average was
calculated for these three sources. The resultant sales rate is $380 per square foot.
The capitalization rate used for this analysis is 5%; the same rate used at ECR-Chestnut.
According to reports from Property Portfolio Research, lower interest rates and strong
demand for multifamily investment will keep cap rates stable in the near-term.
Residential revenue and valuation assumptions are listed in Table 7 below.
Table 7. Residential revenue and valuation assumptions
Condominium sales price per square foot $380
Condominium parking sales price per space $35,000
Monthly Rent per square foot
$2.80
Monthly Rent per parking space $50
Vacancy
5%
Operating Expense
28%
Capitalization Rate
5%
Sales Expense (excludes Park-in-lieu Fee) 5%
Retail (Commercial) revenue and valuation
Several of the downtown properties analyzed in this report have a retail component to
the development program including Sites 1.1, 2.1, 2.2 and Grand/Cypress. The majority
of the retail is located within a few blocks of each other in the Downtown Core on
heavily-trafficked streets including Airport Boulevard and Grand Avenue. Site 1.1 has
6,500 square feet of retail oriented towards Linden Avenue (at Baden Avenue).
According to John Penna of Penna Realty – local commercial/residential broker,
commercial lease rates in the downtown vary as described Table 8:
Table 8. Downtown South San Francisco Commercial Lease Rates
Choice restaurant-ready space, less than 1,500 square feet $3 to $4
Typical restaurant-ready space, greater than 2,000 square feet $1.50
Typical commercial space (non-restaurant) $1.50 (or less)
A property’s vacancy period can range from six months to two years in the downtown
depending on the size and functionality of the space.
Restaurant uses are by far the most popular in the downtown, with seemingly insatiable
demand for 1,500 square feet or less. Current and prospective commercial tenants also
include general retail, medical/dental clinics and service-oriented business (office
space).
The retail space at each site within the program can accommodate single-tenant or
multi-tenant restaurant configurations. In order to accommodate both possibilities in
this analysis, the assumed commercial lease rate is $2.50.
PMP - Downtown Properties Memorandum
August 23, 2013
Page 10 of 14
Retail revenue and valuation assumptions are listed in the Table 9 below.
Table 9. Retail revenue and valuation assumptions
Monthly Rent per square foot
$2.50
Vacancy
10%
Non-reimbursable Operating Expenses
10%
Capitalization Rate
6.5%
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August 23, 2013
Page 11 of 14
V. APPENDIX 1 – RESIDUAL LAND VALUE SUMMARY TABLES
BASELINE PROGRAM
CURRENT MARKET Site 1.1 Site 2.1 Site 2.2 Site 2.4 Site 3.5
Site 4.1/
Site 4.2 Hillside Baden
Grand/
Cypress
Development Program
Retail Area (sq. ft.) 6,500 8,000 9,000 0 0 0 0 0 8,000
Residential Units 50 81 29 14 25 20 11 4 37
Development Costs
Hard Costs $20,380,000 $32,190,000 $14,370,000 $6,070,000 $8,940,000 $8,620,000 $4,380,000 $1,650,000 $13,700,000
Soft Costs $5,100,000 $8,000,000 $3,600,000 $1,500,000 $2,200,000 $2,200,000 $1,100,000 $400,000 $3,400,000
Financing Costs $1,050,000 $1,640,000 $740,000 $310,000 $450,000 $440,000 $230,000 $80,000 $700,000
Developer's Return $3,180,000 $5,020,000 $2,250,000 $950,000 $1,390,000 $1,350,000 $690,000 $260,000 $2,140,000
Total Costs $29,700,000 $46,800,000 $21,000,000 $8,800,000 $13,000,000 $12,600,000 $6,400,000 $2,400,000 $19,900,000
Total Revenue (Apartment) $24,960,000 $39,620,000 $16,470,000 $7,580,000 $13,120,000 $10,310,000 $6,090,000 $2,360,000 $19,690,000
RLV (Apartment) ($4,740,000) ($7,180,000) ($4,530,000) ($1,220,000) $120,000 ($2,290,000) ($310,000) ($40,000) ($210,000)
Per Square Foot ($151) ($156) ($205) ($139) $7 ($159) ($27) ($6) ($10)
PMP - Downtown Properties Memorandum
August 23, 2013
Page 12 of 14
APPENDIX 1
BASELINE PROGRAM
PROJECTED MARKET Site 1.1 Site 2.1 Site 2.2 Site 2.4 Site 3.5
Site 4.1/
Site 4.2 Hillside Baden
Grand/
Cypress
Development Program
Retail Area (sq. ft.) 6,500 8,000 9,000 0 0 0 0 0 8,000
Residential Units 50 81 29 14 25 20 11 4 37
Development Costs
Hard Costs $20,380,000 $32,190,000 $14,370,000 $6,070,000 $8,940,000 $8,620,000 $4,380,000 $1,650,000 $13,700,000
Soft Costs $5,100,000 $8,000,000 $3,600,000 $1,500,000 $2,200,000 $2,200,000 $1,100,000 $400,000 $3,400,000
Financing Costs $1,050,000 $1,640,000 $740,000 $310,000 $450,000 $440,000 $230,000 $80,000 $700,000
Developer's Return $3,180,000 $5,020,000 $2,250,000 $950,000 $1,390,000 $1,350,000 $690,000 $260,000 $2,140,000
Total Costs $29,700,000 $46,800,000 $21,000,000 $8,800,000 $13,000,000 $12,600,000 $6,400,000 $2,400,000 $19,900,000
Total Revenue (Apartment) $27,320,000 $43,460,000 $17,860,000 $8,360,000 $14,510,000 $11,390,000 $6,720,000 $2,610,000 $21,420,000
RLV (Apartment) ($2,380,000) ($3,340,000) ($3,140,000) ($440,000) $1,510,000 ($1,210,000) $320,000 $210,000 $1,520,000
Per Square Foot ($76) ($73) ($142) ($50) $85 ($84) $28 $30 $75
PMP - Downtown Properties Memorandum
August 23, 2013
Page 13 of 14
APPENDIX 1
DSAP PROGRAM
CURRENT MARKET Site 1.1 Site 2.1 Site 2.2 Site 2.4 Site 3.5
Site 4.1/
Site 4.2 Hillside Baden
Grand/
Cypress
Development Program
Retail Area (sq. ft.) 6,500 8,000 9,000 0 0 0 0 0 8,000
Residential Units 100 162 58 28 50 20 11 12 37
Development Costs
Hard Costs $34,560,000 $55,080,000 $21,930,000 $10,900,000 $15,870,000 $8,100,000 $3,960,000 $4,180,000 $13,700,000
Soft Costs $8,600,000 $13,800,000 $5,500,000 $2,700,000 $4,000,000 $2,000,000 $1,000,000 $1,000,000 $3,400,000
Financing Costs $1,770,000 $2,820,000 $1,120,000 $550,000 $810,000 $420,000 $200,000 $210,000 $700,000
Developer's Return $5,390,000 $8,600,000 $3,430,000 $1,700,000 $2,480,000 $1,260,000 $620,000 $650,000 $2,140,000
Total Costs $50,300,000 $80,300,000 $32,000,000 $15,900,000 $23,200,000 $11,800,000 $5,800,000 $6,000,000 $19,900,000
Total Revenue (Apartment) $47,560,000 $75,630,000 $29,330,000 $14,960,000 $26,540,000 $10,240,000 $6,050,000 $7,440,000 $19,690,000
RLV (Apartment) ($2,740,000) ($4,670,000) ($2,670,000) ($940,000) $3,340,000 ($1,560,000) $250,000 $1,440,000 ($210,000)
Per Square Foot ($87) ($101) ($121) ($107) $189 ($108) $22 $208 ($10)
PMP - Downtown Properties Memorandum
August 23, 2013
Page 14 of 14
APPENDIX 1
DSAP PROGRAM
PROJECTED MARKET Site 1.1 Site 2.1 Site 2.2 Site 2.4 Site 3.5
Site 4.1/
Site 4.2 Hillside Baden
Grand/
Cypress
Development Program
Retail Area (sq. ft.) 6,500 8,000 9,000 0 0 0 0 0 8,000
Residential Units 100 162 58 28 50 20 11 12 37
Development Costs
Hard Costs $34,560,000 $55,080,000 $21,930,000 $10,900,000 $15,870,000 $8,100,000 $3,960,000 $4,180,000 $13,700,000
Soft Costs $8,600,000 $13,800,000 $5,500,000 $2,700,000 $4,000,000 $2,000,000 $1,000,000 $1,000,000 $3,400,000
Financing Costs $1,770,000 $2,820,000 $1,120,000 $550,000 $810,000 $420,000 $200,000 $210,000 $700,000
Developer's Return $5,390,000 $8,600,000 $3,430,000 $1,700,000 $2,480,000 $1,260,000 $620,000 $650,000 $2,140,000
Total Costs $50,300,000 $80,300,000 $32,000,000 $15,900,000 $23,200,000 $11,800,000 $5,800,000 $6,000,000 $19,900,000
Total Revenue (Apartment) $52,340,000 $83,310,000 $32,080,000 $16,550,000 $29,350,000 $11,320,000 $6,680,000 $8,220,000 $21,420,000
RLV (Apartment) $2,040,000 $3,010,000 $80,000 $650,000 $6,150,000 ($480,000) $880,000 $2,220,000 $1,520,000
Per Square Foot $65 $65 $4 $74 $348 ($33) $77 $321 $75
No.Address
Property
Type Permissible Use Permissible Use Detail APN #
Lot
Size
(sq.ft.) Current Zoning
Contractual requirements
for use of income/revenue
History of environmental
contamination, studies, and/or
remediation, and designation as a
brownfield site
Description of property's potential for transit
oriented development
Advancement of planning objectives
of the successor agency
History of previous development
proposals and activity
Current Status/Proposed Use
1
559 Gateway
Blvd.Commercial
Governmental
Use
Restrictive covenants
requiring use for: a)
operation of a child day
care facility; b) a public
library; c) a public office
facility as an amenity to
the property.015-024-490 30,330
Gateway Specific
Plan with a General
Plan designation of
Business
Commercial
Annual rent waived, but SA
must pay $500/mo for
Gateway Association fees
No recognized environmental condition
Restricted to public benefit uses. However, the site
benefits from regional employee shuttle services,
operated by both Genentech and the Congestion
Management Relief Alliance, which allows
employees to use the Caltrain and BART stations.
Furthers the Gateway Redevelopment
Plan’s goals of providing affordable
childcare
In compliance with Restrictive
Covenants conveying the property to
the Redevelopment Agency. The
property is leased to the Peninsula
Family YMCA.
Satisfies Permissible Use as
Child care Facility. Property to be
sold to City for $1 to retain its
public use.
2
PUC
Properties
Vacant
Lot/Land
Future
Development
High Density Mixed-Use
Development 093-312-050
331,056
(inclusiv
e of #2-
3) Transit Village district
None No recognized environmental condition
Sitting along El Camino Real and in close proximity
to the BART station, the former PUC properties are
suitable for transit oriented development. This
proposed efficient use of land creates a pedestrian
oriented, walkable area close to transit.
Promote Transit Oriented Development
(Grand Blvd. Initiative, El Camino Real
Master Plan, South San Francisco
General Plan Housing Element, South El
Camino Real General Plan Amendment)
Prior to the acquisition, the PUC had
not considered any development
proposals of consequence.In Progress: RFP process in
place
3
PUC
Properties
Vacant
Lot/Land
Future
Development
High Density Mixed-Use
Development 093-312-060
331,056
(inclusiv
e of #2-
3)
Transit Village
District
None No recognized environmental condition
Sitting along El Camino Real and in close proximity
to the BART station, the former PUC properties are
suitable for transit oriented development. This
proposed efficient use of land creates a pedestrian
oriented, walkable area close to transit.
Promote Transit Oriented Development
(Grand Blvd. Initiative, El Camino Real
Master Plan, South San Francisco
General Plan Housing Element, South El
Camino Real General Plan Amendment)
Prior to the acquisition, the PUC had
not considered any development
proposals of consequence.In Progress: RFP process in
place
4
PUC
Properties
Vacant
Lot/Land
Governmental
Use Public Park 093-331-050
161,172
(inclusiv
e of #4-
5)
Transit Village
District
None No recognized environmental condition
Sitting along El Camino Real and in close proximity
to the BART station, the former PUC properties are
suitable for transit oriented development. This
proposed efficient use of land creates a pedestrian
oriented, walkable area close to transit.
Promote Transit Oriented Development
(Grand Blvd. Initiative, El Camino Real
Master Plan, South San Francisco
General Plan Housing Element, South El
Camino Real General Plan Amendment)
Prior to the acquisition, the PUC had
not considered any development
proposals of consequence.
In Progress: Land dedicated for
new Civic Center Campus to
include library, police station and
open space to satisfy permissible
use as public purpose.
5
PUC
Properties Other
Governmental
Use Public Park 093-331-060
161,172
(inclusiv
e of #4-
5)
Transit Village
District
Revocable Permit between
the Agency and the Boys and
Girls Club including
provisions: 1) no rent, 2) the
Permit has no sunset clause
and can be revoked at any
time.
No recognized environmental condition
Sitting along El Camino Real and in close proximity
to the BART station, the former PUC properties are
suitable for transit oriented development. This
proposed efficient use of land creates a pedestrian
oriented, walkable area close to transit.
Promote Transit Oriented Development
(Grand Blvd. Initiative, El Camino Real
Master Plan, South San Francisco
General Plan Housing Element, South El
Camino Real General Plan Amendment)
Prior to the acquisition, the PUC had
not considered any development
proposals of consequence.
In Progress: Land dedicated for
new Civic Center Campus to
include library, police station and
open space to satisfy permissible
use as public purpose.
6
PUC
Properties
Vacant
Lot/Land
Future
Development
High Density Mixed-Use
Development 011-326-030 82,764
Transit Village
District
None
The Agency conducted Phase I and
Phase II assessments contamination of
TEPH-mo
Sitting along El Camino Real and in close proximity
to the BART station, the former PUC properties are
suitable for transit oriented development. This
proposed efficient use of land creates a pedestrian
oriented, walkable area close to transit.
Promote Transit Oriented Development
(Grand Blvd. Initiative, El Camino Real
Master Plan, South San Francisco
General Plan Housing Element, South El
Camino Real General Plan Amendment)
Prior to the acquisition, the PUC had
not considered any development
proposals of consequence.In Progress: RFP process in
place
7
1 Chestnut
Ave.Commercial
Future
Development
High Density Mixed-Use
Development 011-322-030 72,000
El Camino
Real/Chestnut
Avenue Area, Mixed
Use High Intensity
The term of the lease with
Pet Club is three years (36
months) at a gross rate of
$37,519 per month, with an
option to extend 12 months.
A $500,000 tenant
improvement allocation to Pet
Club from the Successor
Agency/Oversight Board
includes a pay back of
$13,899 per month for three
years resulting in a net rent of
$23,620.
No recognized environmental condition
Ideal location along Chestnut Avenue in close
proximity to El Camino Real and the South San
Francisco BART station. Key property for advancing
the City's Transit Village Zoning District.
The Agency purchased 1 Chestnut
Avenue as an essential property in the
implementation of the Transit Village
Zoning District and the Redevelopment
Plan for the El Camino Project Area.
At the time of acquisition the property
housed Ron Price Motors. The
property is currently leased to Red
Cart Market, Inc., doing business as
Pet Club Stores, Inc.
In progress: future development
planned
8
80 Chestnut
Ave.
Public
Building
Governmental
Use
Expansion of Orange
Memorial Park 011-324-190 30,330 Public/Quasi-Public
The property is leased to
Historical Society for $1 per
year. The term of the lease is
for one year and renews
automatically each year until
April 1, 2033 unless either
lessor or lessee terminates
the lease with 90 day notice.
No known environmental conditions None
Expand Orange Memorial Park
according to Orange Memorial Park
Master Plan and the South San
Francisco General Plan (Park and
Recreation Element)
The property was owned by Cal
Water to operate wells providing
water. Cal Water did not entertain
any development proposals or
activity.
TBD: Currently used by the
Historical Society but dedicated to
be added to expand Orange Park
to satisfy need for public use.
9
480 North
Canal St.
Police/Fire
Station
Governmental
Use Fire Station 61 014-061-110 75,260
Mixed Industrial per
the General Plan
None No known environmental conditions None Improving public facilities and public
safety.
Improving public facilities and public
safety. Satisfies permissible use of public
use as fire station.
LONG RANGE PROPERTY MANAGEMENT PLAN:
County: San Mateo County
Page 1
No.Address
Property
Type Permissible Use Permissible Use Detail APN #
Lot
Size
(sq.ft.) Current Zoning
Contractual requirements
for use of income/revenue
History of environmental
contamination, studies, and/or
remediation, and designation as a
brownfield site
Description of property's potential for transit
oriented development
Advancement of planning objectives
of the successor agency
History of previous development
proposals and activity
Current Status/Proposed Use
LONG RANGE PROPERTY MANAGEMENT PLAN:
10
296 Airport
Blvd.
Vacant
Lot/Land
Governmental
Use
Caltrain station extension
and pedestrian access
improvements 012-338-160 24,325 Public/Quasi-Public
None
Multiple hazardous materials exist in soil
and ground water including TPHd,
TPHmo, TPHg, Arsenic, Vanadium,
Cadmium and other VOCs
Integral part of advancing transit oriented
development for the entire downtown project area.
Relocate the Caltrain station, related
public uses, and pedestrian access
improvements
The City has prepared full plans for
the relocation of the train station and
all public amenities to this site and
ready to commence but delayed by
plans for Bullet Train and Caltrain
electrification.
Satisfies Permissible use as new
location for Cal Train Station.
DOT easment for maintenance of
the freeway along established
access road.
11
323 Miller
Ave.
Parking
Lot/Structure
Governmental
Use Parking Garage Structure 012-312-070 3,500 Downtown Core
Maintenance and Operations No known environmental conditions Higher density in-fill parking for downtown TOD and
project area
Development of the Miller Avenue
Parking Structure for the downtown TOD
The Agency maintained the
affordable residential units at 323
Miller Avenue until the City
constructed the parking structure.
The property now houses the
easternmost end of the parking
structure which contains the elevator
shaft and a small amount of
unimproved commercial space.
Satisfies permissible use as
public use as current Miller
Garage parking structure with
future retail space.
12
356 Grand
Ave.
Roadway/Wal
kway
Governmental
Use
Pedestrian access to
Parking Garage Structure 012-312-300 7,000
Grand Avenue Core
(GAC)
None No known environmental conditions
The property is located within a transit oriented
planning area and has the potential to be developed
into a transit oriented development. However it is
serves to provide pedestrian access to Miller Avenue
Parking Structure
Redevelopment plan goal of eliminating
blighted conditions, increasing economic
activity, improving pedestrian circulation,
and encouraging further development in
the surrounding area
Upon acquisition the Agency
demolished the blighted building on
the property and created pedestrian
access to Miller Avenue Parking
Structure
Currently a dedicated public
walkway to the Miller Garage
Parking Structure. Construction
is not recommended, however, a
temporary structure to allow retail
may be possible.
13
472 Grand
Ave./ 306
Spruce Ave. Commercial
Governmental
Use
County Medical Health
Center 012-302-140 14,000 Downtown Core
Maintenance and Operations No known environmental conditions None
Relocate vital social services serving low-
income resident residing in the
downtown project area
The property serves public goal and
Redevelopment goal of providing
public facilities serving low-income
residents residing in the project area.
Land to be transferred to San
Mateo County and permanently
dedicated to public use as health
center.
14
468 Miller
Ave.
Parking
Lot/Structure
Governmental
Use
Parking for County
Medical Health Center 012-301-020 7,000
Downtown
Residential Medium
Maintenance and Operations No known environmental conditions
Unless the property at 472 Grand/306 Spruce
converted to a use not requiring parking, the property
cannot be redeveloped into a TOD.
Relocate vital social services serving low-
income resident residing in the
downtown project area
The property serves public goal and
Redevelopment goal of providing
public facilities serving low-income
residents residing in the project area.
Land to be transferred to San
Mateo County and permanently
dedicated to public use as health
center.
15
201 Grand
Ave.
Parking
Lot/Structure
Future
Development
Downtown core and future
Downtown Area Specific
Plan 012-316-110 5,077
Downtown
Residential Core
(DRC)
Operating and maintaining
the parking lot No known environmental conditions
The property is located within the downtown and is
less than 1/4 mile away from the Caltrain station.
Upon the relocation of the train station the property
will be one block away from the train station
entrance. Plans for this site and the adjacent parcels
indicate that 37 units and 8,000 sq. ft. of retail can be
built.
Advancing major transit oriented
development in the Downtown through
high-density in-fill housing
Agency received a proposal to
develop this site and adjacent private
properties into development of
residential units with retail space In Progress: City Council recently
approved sale price to transfer
property to Roem devleopers.
16
207 Grand
Ave.
Parking
Lot/Structure
Future
Development
Downtown core and future
Downtown Area Specific
Plan 012-316-100 3,500
Downtown
Residential Core
(DRC)
Operating and maintaining
the parking lot No recognized environmental condition
This site is ideal for a TOD. The property is located
within the downtown less than 1/4 mile away from the
Caltrain station. Relocated train station will be one
block away. Plans for this site and the adjacent
parcels indicate that residential and retail can be
built.
Advancing major transit oriented
development in the Downtown through
high-density in-fill housing
Agency received a proposal to
develop this site and adjacent private
properties into development of
residential units with retail space In Progress: City Council recently
approved sale price to transfer
property to Roem devleopers.
17
217-219
Grand Ave.Mixed-Use
Future
Development
Downtown core and future
Downtown Area Specific
Plan
012-316-080 and
012-316- 090 7,000
Downtown
Residential Core
(DRC)
Maintenance and Operations No recognized environmental condition
This site is ideal for a TOD. The property is located
within the downtown less than 1/4 mile away from the
Caltrain station. Relocated train station will be one
block away. Plans for this site and the adjacent
parcels indicate that residential and retail can be
built.
Advancing major transit oriented
development in the Downtown through
high-density in-fill housing
Agency received a proposal to
develop this site and adjacent private
properties into development of
residential units with retail space In Progress: The current site of
Mom's Tofu and former site of
Ben Tre but slated for high
denisty residential development.
18
227 Grand
Avenue
Vacant
Lot/Land
Future
Development
Downtown core and future
Downtown Area Specific
Plan 012-316-060 3,500
Downtown
Residential Core
(DRC)
None No recognized environmental condition
This site is ideal for a TOD. The property is located
within the downtown less than 1/4 mile away from the
Caltrain station. Relocated train station will be one
block away. Plans for this site and the adjacent
parcels indicate that residential and retail can be
built.
Advancing major transit oriented
development in the Downtown through
high-density in-fill housing
Agency received a proposal to
develop this site and adjacent private
properties into development of
residential units with retail space In Progress: City Council recently
approved sale price to transfer
property to Roem devalopers.
Page 2
No.Address
Property
Type Permissible Use Permissible Use Detail APN #
Lot
Size
(sq.ft.) Current Zoning
Contractual requirements
for use of income/revenue
History of environmental
contamination, studies, and/or
remediation, and designation as a
brownfield site
Description of property's potential for transit
oriented development
Advancement of planning objectives
of the successor agency
History of previous development
proposals and activity
Current Status/Proposed Use
LONG RANGE PROPERTY MANAGEMENT PLAN:
19
200 Linden
Ave.
Public
Building
Future
Development
Downtown core and future
Downtown Area Specific
Plan 012-334-130 14,000
Downtown
Residential Core
(DRC)
Operating and maintaining
the parking lot.No known environmental conditions
The property is located within the downtown and is
about 1/3 mile away from the Caltrain station.
Relocated train station will be two blocks away. Plans
for this site and the adjacent parcels indicate 50-100
residential units can be built.
Advancing major transit oriented
development in the Downtown through
high-density in-fill housing
Exclusive Negotiating Rights
Agreement (2000) for developing
new residential and retail supporting
uses for the downtown.
In Progress: Slated for high
density residential development.
20
212 Baden
Ave.
Parking
Lot/Structure
Future
Development
Downtown core and future
Downtown Area Specific
Plan 012-334-040 7,000
Downtown Mixed
Use (DMX)
Operating and maintaining
the parking lot.No known environmental conditions
The property is located within the downtown and is
about 1/3 mile away from the Caltrain station.
Relocated train station will be two blocks away. Plans
for this site and the adjacent parcels indicate 50-100
residential units can be built.
Advancing major transit oriented
development in the Downtown through
high-density in-fill housing
Exclusive Negotiating Rights
Agreement (2000) for developing
new residential and retail supporting
uses for the downtown.
In Progress: Slated for high
density residential development.
21
216 Baden
Ave.
Parking
Lot/Structure
Future
Development
Downtown core and future
Downtown Area Specific
Plan 012-334-030 3,500
Downtown Mixed
Use (DMX)
Operating and maintaining
the parking lot.No known environmental conditions
The property is located within the downtown and is
about 1/3 mile away from the Caltrain station.
Relocated train station will be two blocks away. Plans
for this site and the adjacent parcels indicate 50-100
residential units can be built.
Advancing major transit oriented
development in the Downtown through
high-density in-fill housing
Exclusive Negotiating Rights
Agreement (2000) for developing
new residential and retail supporting
uses for the downtown.
In Progress: Slated for high
density residential development.
22
315 Airport
Blvd. Commercial
Future
Development
Downtown core and future
Downtown Area Specific
Plan 012-318-080 22,136
Downtown Core &
Downtown Parking
District
None
Phase I found it has three former
gasoline tanks (USTs) abandoned in
place existing TCE, DCE and vinyl
chloride contaminants. Future
development activities that disturb
underlying soil or groundwater will
encounter the contaminated media and
require special handling and disposal
The property is located within the downtown and is
less than 1/4 mile away from the Caltrain station.
Relocated train station will be across the street.
Plans for this site indicate that 29-58 residential units
and 9,000, sq. ft. of retail can be built.
Advancing major transit oriented
development in the Downtown through
high-density in-fill housing
The Agency has not considered any
other plans to develop the property.
However, the Agency has prepared a
development program for the
property based on the rezoning of the
area by the DSAP.
TBD: It would be ideal to sell the
property to a developer who
could purchase adjoining lots 305
Airport and 309 Airport for a high
density housing TOD because of
the proximity to Caltrain.
23
401 Airport
Blvd.Commercial
Future
Development
Downtown core and future
Downtown Area Specific
Plan 012-317-110 10,259
Downtown Core &
Downtown Parking
District
None
Phase I and II found the soil and
groundwater impacted with petroleum
hydrocarbons. Future development
activities that disturb underlying soil or
groundwater will require special
handling and disposal.
This property is located within the downtown and is
less than 1/4 mile away from the Caltrain station.
Relocated train station will be across the street.
Assembled properties #23-25 can be developed into
81-162 residential units and 8,000, sq. ft. of retail.
Advancing major transit oriented
development in the Downtown through
high-density in-fill housing
The Agency has not considered any
other plans to develop the property.
However, the Agency has prepared a
development program for the
property based on the rezoning of the
area by the DSAP.
TBD
24
411 Airport
Blvd.Commercial
Future
Development
Downtown core and future
Downtown Area Specific
Plan 012-317-100 11,404
Downtown Core &
Downtown Parking
District
None No known environmental conditions
This property is located within the downtown and is
less than 1/4 mile away from the Caltrain station.
Relocated train station will be across the street.
Assembled properties #23-25 can be developed into
81-162 residential units and 8,000, sq. ft. of retail.
Advancing major transit oriented
development in the Downtown through
high-density in-fill housing
The Agency has not considered any
other plans to develop the property.
However, the Agency has prepared a
development program for the
property based on the rezoning of the
area by the DSAP.
TBD
25
421 Airport
Blvd.
Vacant
Lot/Land
Future
Development
Downtown core and future
Downtown Area Specific
Plan 012-317-090 22,809
Downtown Core &
Downtown Parking
District
None No known environmental conditions
This property is located within the downtown and is
less than 1/4 mile away from the Caltrain station.
Relocated train station will be across the street.
Assembled properties #23-25 can be developed into
81-162 residential units and 8,000, sq. ft. of retail.
Advancing major transit oriented
development in the Downtown through
high-density in-fill housing
The Agency has not considered any
other plans to develop the property.
However, the Agency has prepared a
development program for the
property based on the rezoning of the
area by the DSAP.
TBD
26
405 Cypress
Ave.
Vacant
Lot/Land
Future
Development
Downtown core and future
Downtown Area Specific
Plan 012-314-100 8,763
Downtown Core &
Downtown Parking
District
None No known environmental conditions
The property is located within the downtown and is
less than 1/4 mile away from the Caltrain station.
Plans for this site indicate that 29-58 residential units
and 9,000, sq. ft. of retail can be built.
Advancing major transit oriented
development in the Downtown through
high-density in-fill housing
The Agency has not considered any
other plans to develop the property.
However, the Agency has prepared a
development program for the
property based on the rezoning of the
area by the DSAP.TBD
Page 3
No.Address
Property
Type Permissible Use Permissible Use Detail APN #
Lot
Size
(sq.ft.) Current Zoning
Contractual requirements
for use of income/revenue
History of environmental
contamination, studies, and/or
remediation, and designation as a
brownfield site
Description of property's potential for transit
oriented development
Advancement of planning objectives
of the successor agency
History of previous development
proposals and activity
Current Status/Proposed Use
LONG RANGE PROPERTY MANAGEMENT PLAN:
27
216 Miller
Ave.
Vacant
Lot/Land Sale of Property N/A 012-314-220 17,500
Downtown Core &
Downtown Parking
District
None No known environmental conditions
The property is located within the downtown and is
less than 1/4 mile away from the Caltrain station.
Plans for this site indicate that 25-50 residential units
can be built.
Advancing major transit oriented
development in the Downtown through
high-density in-fill housing
The Agency has not considered any
other plans to develop the property.
However, the Agency has prepared a
development program for the
property based on the rezoning of the
area by the DSAP.
TBD
28
938 Linden
Ave.Commercial Sale of Property N/A 012-102-030 12,937
Downtown Mixed
Use (DMX)
None
The Phase 1 environmental assessment
in 2009 reveleaed no evidence of
enivronmental conditions however there
were elevated concentrations of
petroleum hydrocarbons with a potential
risk of volatilization to indoor air. A 2013
assessment revelead there is no
significant vapor intrusion risk to
building occupants.
Significant distance from the downtown’s transit hub
and services and is therefore not considered a transit
oriented development opportunity.
N/A
Redevelopment was dissolved before
St. Vincent could secure funidng. The
property currently has a 4,000 square
foot office building that is not code
compliant and is use for storate.
Private owner had assembled several
properties adjacent to this one with
the intent of developing a major
residential project. Call for Proposals in progress to
sell property to developers.
29
905 Linden
Ave.
Vacant
Lot/Land
Future
Development
Development of
residential housing 012-101-100 15,000
Downtown
Residence Medium
(DRM)
None
Phase II environmental analysis
conducted. Wells installed to monitor
groundwater. Water continues to be
contaminated. Soil surface area is free
of gasoline and oil contamination.
Agency has assumed the financial
responsibility for the cleanup of the
groundwater. In 1999 the estimated cost
of remediating was $100,000 and has
likely increased.
The property is not walking distance to Caltrain
station and downtown services but still suitable for
high density development.
Advancing high-density in-fill housing
At one time the Agency prepared
conceptual architectural plans for
combined sites for a mixed-use
development. Agency was not able to
assemble the site. Agency
subsequently prepared conceptual
plans for a mix-used housing
development for this single site.TBD (temporary use as open
space)
30
616 Linden
Ave.
Parking
Lot/Structure
Future
Development
Downtown core and future
Downtown Area Specific
Plan 012-174-300 14,000
Linden Neighborhood
Center (LNC)
Operating and maintaining
the parking lot.
The ground water is monitored by wells
and continues to show contamination
consisting of petroleum compounds.
The Successor Agency has assumed
responsibility for the remediation of this
property but has not requested an
estimate of the cost.
The property is in close proximity to the downtown
core and the Caltrain station and is suitable for transit
oriented development. The site could accommodate
up to 40 residential units.
Advancing high-density in-fill housing
In the late 1990’s and early 2000’s
the Agency was working with an arts
organization to develop a
performance arts theater. Since the
cancellation of that project, no other
developments have been proposed
though the Agency had conceptual
plans prepared for a mix-used
housing development on the site.
TBD: sell and develop High
density residential (up to 40
Units)
31
700 Linden
Ave.
Vacant
Lot/Land
Future
Development
Downtown core and future
Downtown Area Specific
Plan 012-145-370 14,000
Linden Neighborhood
Center (LNC)
None
Plume of groundwater contamination
extends into this property. The soil and
ground water contamination make it
financially infeasible to develop without
taking out several feet of topsoil.
The property is in close proximity to the downtown
core and the Caltrain station and is suitable for transit
oriented development. The site could accommodate
up to 40 residential units.
Advancing high-density in-fill housing
Agency was working with an arts
organization to develop a
performance arts theater use site as
parking for the new theater. The
Agency has prepared conceptual
plans for a mix-used housing
development on the site.
TBD: sell and develop High
density residential (up to 40
Units)
32
432 Baden
Ave./ 429
Third Lane
Parking
Lot/Structure Sale of Property N/A 012-321-160 7,000
Downtown
Residential Core
(DRC)
Operating and maintaining
the parking lot.No known environmental conditions
This site is suitable for smaller scale transit oriented
development. The property is located within the
downtown less than 1/2 mile away from the Caltrain
station. Conceptual plans for this indicate that
residential units can be built.
Advancing high-density in-fill housing
Upon acquisition, the Agency
demolished the existing building.
Agency has created a development
program for the property based on
the rezoning of the area by the
DSAP.
TBD: Sell property because too
small (50x140) for financially
viable development or adequate
parking garage.
Page 4
Exhibit 1
LRPMPUPDATE
Oversight Board Meeting
January 16, 2018
PreparationofLRPMP
•Long Range Property
Management Plan (LRPMP)
prepared by Successor Agency
•First Approved by Oversight
Board in 2013, Amended in
2015
•Approved by State Department
of Finance (DOF) in 2015
PurposeofLRPMP
•Describe status and disposition plan for Agency-owned,
non-housing properties
•Four disposition categories:
1.Use to fulfill enforceable obligations
2.Retain for governmental use
3.Retain for future development
4.Sell
TransferredtoCityforGovernmentUse
•Gateway Childcare Center (559 Gateway Blvd)
•Downtown Fire Station (480 North Canal St)
•Miller Ave Parking Garage (323 Miller Ave)
•Breezeway @ Miller Ave Parking Garage (356 Grand Ave)
•Expansion of Orange Memorial Park (80 Chestnut Ave)
TransferredtoCityforGovernmentUse
•Caltrain Station (296 Airport Blvd)
•$61 million project includes:
•Center-board platform
•Bike/pedunderpass
•Shuttle pick-up/drop-off
•Construction began this month
DispositionComplete
•Cadence by SaresRegis
•315, 401, 411, & 421 Miller Ave; 405 Cypress Ave; 216 Miller Ave
•Phase 1
•260 rental units
•Under construction
•Phase 2
•Submittal in Dec. 2017
DispositioninProgress
•Former PUC properties
•13.2 acres total
•Community Civic Campus
(A1, A2, & A3)
•High-density residential
development (B & C)
DispositioninProgress
•Community Civic Campus
•Oversight Board approved sale to City for $7.18 million
•Project funded by Measure W includes:
•New police station, fire department, and library and
recreation facility
•Selecting architect now
DispositioninProgress
•High-density residential development
•RFP due Feb. 5, 2018
•5.9 acres site:
•600 –1,000 units
•20% Affordable Housing
•Active ground floor uses
•Developers invited to
respond to RFP:
1.AGI Avant/KASA Partners
2.Blake Griggs
3.SaresRegis
4.Summerhill Housing Group
5.Steelwave
6.Republic Metropolitan
DispositioninProgress
•201-207 & 217-219 Grand Ave
•ROEM Development Corporation
•Oversight Board approved $1.2 million sale price
•Escrow expected to close in April-May 2018
DispositioninProgress
•Hisense selected to develop
•Oversight Board approved
$3.5 million sale price
•Planning Commission
approved 97-unit project
•Escrow expected to close in
January-February 2018
•200 Linden Ave & 212-216 Baden Ave
DispositioninProgress
•938 Linden Ave
•Four offers received November 9, 2017
•Will bring sales price forward to Oversight Board for approval
•County Health Center (472 Grand Ave/306
Spruce Ave & 468 Miller Ave)
DispositionForthcoming
•227 Grand Ave
•Vacant 3,500 square
foot lot
•Future development
DispositionForthcoming
•432 Baden Ave/429
Third Lane
•16 parking spaces
•Designated for sale
DispositionForthcoming
•616 Linden Ave
•20 metered parking
spaces
•Contamination may
require mitigation
•Future development
DispositionForthcoming
•700 Linden Ave
•Vacant lot (green
space)
•Contamination may
require mitigation
•Future development
DispositionForthcoming
•905 Linden Ave
•Vacant lot (green space)
•Future development
QUESTIONS?