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HomeMy WebLinkAbout03.12.2018 SP & PC Minutes @8:30MINUTES SPECIAL MEETING OF THE Cn HOUSING STANDING COMMITTEE OF THE CITY COUNCIL AND `9ltFOtt��` PLANNING COMMISSION CITY OF SOUTH SAN FRANCISCO P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, California 94083 1. Call to Order. Meeting will be held at: CITY MANAGER CONFERENCE ROOM 400 GRAND AVENUE SOUTH SAN FRANCISCO, CA MONDAY, MARCH 12, 2018 8:30 a.m. TIME: 8:30 a.m. 2. Roll Call. PRESENT: Mayor Pro Tem Matsumoto, Councilmembers Addiego, and Planning Commissioners Faria, Wong and Alternate Committee Member Planning Commissioner Shihadeh. 3. Public Comments. None. Matters for Consideration 1. Motion to approve the Minutes from the meetings of December 11, 2017. MOTION Planning Commissioner Faria moved and Planning Commissioner Wong seconded a motion to approve the minutes from the meeting of December 11, 2017. The motion carried 4 -0 -1, Planning Commissioner Shihadeh absent. 2. Report regarding interviews of developers for the Public Utilities Commission site, a Successor Agency to the former Redevelopment Agency of South San Francisco property, and selection of a preferred developer and alternate developer. (Mike Lappen, Economic Development Coordinator) Economic Development Coordinator Lappen explained that the committee would be interviewing Blake Griggs Properties and AGI /KASA, with a second meeting to review proposals from Republic Metropolitan, Sares Regis and Summerhill Housing Group. He stated a comparison of price and terms would be considered in closed session, followed by deliberation and potentially a recommendation to the Planning Commission. In response to Councilmember Addiego, Coordinator Lappen stated the developers would not be available during the closed session and staff would respond to questions. Analyst Talavera added that the developers could have a representative available if staff needed further clarification. Alternate Member Planning Commissioner Shihadeh arrived at 8:43 a.m. Coordinator Lappen explained the PUC site, surrounding area and zoning. He provided an overview of planning for the project. He explained the next steps for an exclusive negotiating rights agreement and then any other cooperative agreements needed to start the process. He summarized the RFQ, review and proposal process. He reviewed the expectations and need for community engagement and complimentary design. He discussed the valuation criteria. Councilmember Addiego asked whether appropriateness was specifically a broad range of words so they can fit almost anything into the appropriateness of the project. Coordinator Lappen explained that the criteria of appropriateness was something that community would find comfortable. Coordinator Lappen explained the interview process and items included in the matrix. Mayor Pro Tem Matsumoto questioned allowing two different proposals and expressed concern that it made the process cumbersome. Mr. Lappen explained the two proposals from Blake Griggs. Mayor Pro Tem Matsumoto stated she would prefer comparing proposals that followed the same criteria to compare apples to apples. Deputy Director Selander stated the two proposals were included because the RFP did not preclude two submittals. Mayor Pro Tem Matsumoto requested future RFPs state only one proposal could be submitted. She anticipated recommending one Developer, with an alternative Developer. Planning Commissioner Faria stated he did not want to consider the 15 story proposal due to the size, although he realized it was for comparison purposes. Councilmember Addiego stated he understood why the developer provided two options and felt it gave perspective. Coordinator Lappen stated all developers were asked what it would take to bring in for sale units and Blake Griggs illustrated that with the fifteen -story building. Mayor Pro Tem Matsumoto stated she was pleased to see affordable units as part of the proj ect. Coordinator Lappen further explained the interview process. JOINT HOUSING STANDING COMMITTEE MEETING MARCH 12, 2018 MINUTES PAGE 2 Councilmember Addiego asked if the same questions should be asked of each Developer in order to be equitable. Mayor Pro Tern Matsumoto stated she did not feel it was appropriate because the proposals were so different. Councilmember Addiego felt some of the questions were appropriate for each developer. Analyst Talavera advised each list of questions were proposal specific and had elements of the same questions for all the Developers. Coordinator Lappen explained that the questions were developed by staff to aid the interview process and the closed session process. Mayor Pro Tem Matsumoto thanked Coordinator Lappen for the information provided and stated it would aid the process. Darren Smith, Managing and Principle Economic Planning Systems, introduced the team and discussed their other work. Mayor Pro Tern Matsumoto asked for an explanation on the BART right -of -way. Deputy Director Selander explained the BART right -of -way running adjacent to the property and requested proposals to enhance Centennial Way. Coordinator Lappen discussed the requirements with the Oak Avenue Extension. Mayor Pro Tern Matsumoto asked if there are other complications with the site that would hinder construction and require special permission. Coordinator Lappen advised that a park and connectivity must be part of the proposal. Councilmember Addiego asked why that area was called out. Coordinator Lappen explained that the area was purchased by the Redevelopment Agency in 2007 and since it connected to the development would be a good site for a park. Planning Commissioner Faria questioned staff's comment that the Oak Avenue Extension was a bridge over the BART right -of -way. Coordinator Lappen responded that the BART tunnel was a sensitive area and nothing could be placed on top of the tunnel. Mayor Pro Tern Matsumoto asked if BART was being responsive. Director Greenwood advised that communication with BART had been challenging. He recommended the Committee consider the developer's history working with BART on other developments and their successes. Mayor Pro Tern Matsumoto stated BART was not very responsive on the Centennial Trail Project and recommended staff contact the Assistant General Manager with SamTran. Analyst Talavera stated BART experience was a standard question for all developers. JOINT HOUSING STANDING COMMITTEE MEETING MARCH 12, 2018 MINUTES PAGE 3 Planning Commissioner Wong asked about the Oak Avenue Extension and whether funds were available for completion. Coordinator Lappen stated funds were not available for its completion and that each property had the responsibility to contribute to the Oak Avenue Extension based on the EIR. He explained that the developer was being asked for the gap funding for the development, to be reimbursed through the CFD. Mayor Pro Tem. Matsumoto called a recess for the meeting at 9:10 a.m. Mayor Pro Tern Matsumoto resumed the meeting at 9:18 a.m. and invited AGI/KASA to make their presentation. Andrew Kawahara, Principal, with KASA Partners, introduced the project team and discussed other projects they had worked on. Eric Tao, President and CEO of AGI, discussed the project including mixed use retail and outdoor recreation; sustainability and feasibility with BRIDGE Housing; addition of green/ usable space; work with BART to develop family areas with playgrounds and other activity areas; and townhomes with stoops. Mayor Pro Tern Matsumoto disclosed that she met with AGI/KASA Partners and discussed her understanding and appreciation of inclusionary. Mr. Tao stated the paths and playgrounds were designed for people with disabilities and child care was emphasized within the development. He discussed the emphasis on live, work, recreation and art. He discussed the Market Place along Oak Street and areas where businesses were on the street level with residences above. He explained efforts to encourage pedestrian uses, bike riding, and energy sources. Mr. Kawahara summarized the project including the proposed 812 housing units, twenty percent/ 162 affordable units. He discussed the eight -story scheme but indicated a high rise was possible if desired. He reviewed the 17,000 square feet of retail space, with 5,500 square feet for a child care center. Mayor Pro Tem Matsumoto discussed her prior work with Pal Childcare. Mr. Kawahara commented on the proposed Market Hall, seven acres of open space, playgrounds, fitness areas and public art, community engagement and Centennial Way enhancements. He reviewed the financial benefits to the City. Planning Commissioner Wong asked the meaning of the "project is stabilized ". Mr. Kawahara explained the three phases of the project and stabilization of tax revenue increase once completed and occupied. Planning Commissioner Wong asked about the Market Hall proposal. Mr. Tao stated it would be one building or one space with mixed vendors, with dedicated parking areas. JOINT HOUSING STANDING COMMITTEE MEETING MARCH 12, 2018 MINUTES PAGE 4 Planning Commissioner Wong asked if increasing construction costs were anticipated. Mr. Tao stated they were constantly looking at feasibility studies, working with vendors on value engineering and trying to anticipate increases in construction costs. Mayor Pro Tern Matsumoto stated she realized the design was flexible, but asked the specific design visions. Mr. Tao stated they were developers, not designers but they looked for an urban concept with a feeling of a sense of place. Mayor Pro Tern Matsumoto asked what the buildings would look like structurally. Chris Haegglund, BAR Architects, proposed a look of new industrial and echo the past of South San Francisco, contemporary and timeless, with a variety of materials such as wood, metal siding or plaster. Mr. Stray stated the landscape architecture was crucial for the connectivity of the areas and the design would center around Centennial Way. Mayor Pro Tern Matsumoto asked about parking. James Suh, KASA Partners, explained the proposed parking wrapping around the residential. Mr. Suh stated he felt it was premature to have a fixed design. He said they were trying to demonstrate the feel for the development and the actual design would come after community engagement and working with City staff. Brian Baker, AGI Vice President, stated they planned to work with the Civic Campus development team. Mayor Pro Tern Matsumoto asked if the inclusionary housing was blended with the other housing. Brad Wiblin, Senior Vice President of BRIDGE, stated the inclusionary housing would be located on the northern most portion of the site, with easy access to BART. Planning Commissioner Faria questioned the timing of inclusionary housing and expressed concern that affordable housing might be jeopardized if built late in the timeline. He requested it be included in Phase I. Mr. Tao envisioned the Oak Avenue portion would be built first and the affordable component could be moved up to Phase II. In response to Planning Commissioner Faria, Mr. Baker stated the child care center would be open to the general public. Planning Commissioner Faria asked their experience working with BART. Mr. Tao discussed the engineers that have the respect and great working relationship with BART. Jack Robertson, President /CEO of Tableau, stated there were several team members who had experience with BART on other projects. Councilmember Addiego commented that BRIDGE Housing was instrumental in the construction of Magnolia Senior Housing, which the City was proud of and it stood the test of time. He stated he recently became a resident of the Mandalay Building, which was not constructed by BRIDGE and he was disappointed with some of the features. Councilmember Addiego stated more time should have been spent discussing building standards and less time on the market or maker space. He stated he did not think the market space would work in the location. He expressed concern about the quality of materials. Mr. Tao stated high rent would not occur at the project location and the market space was more directed toward rentals. He discussed higher quality materials and amenities being used. Councilmember Addiego asked JOINT HOUSING STANDING COMMITTEE MEETING MARCH 12, 2018 MINUTES PAGE 5 about subsidizing. Mr. Tao explained some of the affordable housing could be in the flex housing area. He discussed the artist area. Mr. Haegglund stated the same designs and materials would be used in South San Francisco as used in San Francisco. In response to questions from Councilmember Addiego, Mr. Baker referenced a recent site in San Francisco at Fifth and Folsom called Mossosf. He stated the entire community was built with high grade materials. Councilmember Addiego discussed several retail sites that were unoccupied after several years. Mayor Pro Tem Matsumoto stated she loved the Market Space. She stated the areas mentioned had low parking and high rental prices and that the City's population was changing and the density would increase. Councilmember Addiego discussed the success story at the Ferry Market Place. Mr. Suh discussed the possibility of a coffee store. Mayor Pro Tem Matsumoto asked if the developers would consider for sale properties. Josh Roden, Brookfield Residential, stated they were involved with a variety of mixed use projects that included for sale and rent areas. He stated they were comfortable with the site and familiar with the area. Mayor Pro Tem Matsumoto recessed the meeting at 10:20 a.m. The meeting reconvened at 10:34 a.m. Lauren Seaver, Vice President of Development with Blake Griggs Properties, expressed excitement with the potential development and its job creation, quality of living, accessibility of the civic center, and connectivity to other job markets. She discussed the opportunity to create a housing project with an identity of South San Francisco and introduced the team Councilmember Addiego stated he met with Brad Blake, Managing Partner and Ms. Seaver of Blake Griggs Property. Mayor Pro Tem Matsumoto stated she also met with the Blake Griggs Properties Team. Brad Griggs, Managing Partner, touched on their experience, core competencies, backgrounds for master plan communities and understanding of entitlement for CEQA projects. He discussed their involvement with BART on many projects. Brad Blake, Managing Partner, encouraged the Committee to select a developer based on product. He stated both partners would be very involved in the project and decisions were made quickly because it was all in- house. He discussed the success of the retail portions of their projects and public /private experience with several cities and BART. Ms. Seaver discussed recent projects in Walnut Creek which included the station and parking negotiated with BART and the Via project with 178 apartment units and Artist Walk with 185 retail units. JOINT HOUSING STANDING COMMITTEE MEETING MARCH 12, 2018 MINUTES PAGE 6 Linda Mandolini, President of Eden Housing, provided an overview of the housing developer. She discussed their commitment to community process and experience in master plan projects. She stated they managed their own properties and commitment to long term partnerships. Councilmember Addiego stated he had participated in processes with Eden Housing and, though they did not come to fruition, he was impressed with their services. Rob Davidson, Vice President of Development and Asset Management with Mitsui Fudosan America, discussed the public real estate company and proposed investment in the project. Thomas Cox, Founder and CEO of TCA Architects, provided an overview of the firm and its experience with projects in South San Francisco. Ms. Seaver explained their guiding principles, to create an iconic identity for the City and complement the Civic Center and create a nexus for a new western downtown. She explained flexible uses and densities to meet the City's goals, community and stakeholder involvement, range of housing types and affordability. She stated they would provide 847 housing units and up to 185 affordable units for families with all ranges of incomes. She stated they would work within the goals of the specific plan for the Oak Avenue Extension, Mission Road, and integrate with the new Civic Center Campus. She discussed open spaces for both passive and active uses in a variety of configurations with public art, and beautiful gathering areas that would work with the retail areas. Thomas Cox, TCA Architects, presented the project, outlining the 847 units, five -story option of wood, over concrete, over retail space and parking. He discussed their efforts to understand the community and their users. He stated they studied how to create parks, open space and permeability to the project and how to make it interactive with sidewalks and parks. He anticipated exciting and fun, yet timeless architecture. He stated activation of the street scene, especially along Mission, was a key component to making the project work. He proposed townhouses with porches and stoops at the ground level, a large park, amphitheaters and walkways to bridges to the bike lanes and walking trail. He discussed the two options for Site B and affordable units. Mr. Blake discussed the retail nodes, childcare facility, and retail mix of restaurants and services. He stated it would not be a market hall but would contain traditional retail spaces ranging from 1,600 to 2,600 square feet. Ms. Seaver discussed the community areas, including landscaped open space, playground areas, workout stations, passive lounging areas, active areas, art space and access to BART. She summarized the community and financial benefits. She explained the proposed design including drought conservation and energy efficiency features. She presented a video illustrating the proposed project. JOINT HOUSING STANDING COMMITTEE MEETING MARCH 12, 2018 MINUTES PAGE 7 Mayor Pro Tem Matsumoto asked about the other two plots of land if the high -rise option was selected. Ms. Seaver explained the proposal if the high -rise was selected. In response to questions from Councilmember Addiego, Mr. Griggs stated the high rise was 125 -feet tall and the lower scale building was 85 -feet. He stated they could be for sale units in either size buildings. Councilmember Addiego discussed mid -rise, highly desirable units in downtown San Mateo and stated the proposal was potentially the first mid -rise housing building in South San Francisco. Mr. Blake stated they were not locked into the concept and would develop the plans according to the City's desires. Mayor Pro Tem Matsumoto confirmed that a Childcare Center was being provided. Planning Commissioner Wong stated the childcare center was within the 14,000- square foot retail area. He asked the size of the child care center. Mr. Blake stated the child care size would depend on the operator, but between 3,500 to 6,000- square feet, leaving approximately 8,000 to 10,000- square feet of retail space. He explained start up stores of operators of new concepts bringing a dynamic mix to the retail area. Mr. Blake stated they were open to "for sale' units in the high rise. Mayor Pro Tem Matsumoto asked about the parking lot design. Ms. Seaver explained that it was built around podium parking which was hidden and partially underground. Councilmember Addiego asked about the developer's compassion for projects. Mr. Griggs stated they spend a large amount of time listening to the desires of the City and public. Councilmember Addiego commented on the length of Mission Road and stated he preferred the larger mid -rise to the mass of buildings at the other end. He did not support neighborhoods with stoops and asked how the stoops became active areas. Mr. Cox explained that it was based on the intensity of the street. Mayor Pro Tem Matsumoto asked if the County was currently looking at changing the dynamics since the court house was not housing a health center. City Manager Futrell discussed the new Master Plan for the court house site, which included a large health clinic and future designs for housing. Planning Commissioner Faria expressed uncertainty about a high rise. Mr. Blake stated the public hearing could occur before a decision was made on the high rise. Planning Commissioner Faria stated he wanted to gather facts before deciding. Mr. Cox stated it depended on the diversity of housing types and the high rise provided an opportunity for homeowners. Mayor Pro Tem Matsumoto discussed the City's upcoming General Plan Update and opportunity for high -rise buildings. She asked when the inclusionary housing would be JOINT HOUSING STANDING COMMITTEE MEETING MARCH 12, 2018 MINUTES PAGE 8 implemented. Ms. Seaver stated inclusionary housing was in Phase I and affordable housing could also start with Phase I. Councilmember Addiego asked about the bridge. Mr. Cox explained the bridge design and need for barriers to the waterways. Councilmember Addiego asked about Mitsui Fudosan America financing the project. Mr. Davidson stated both models work financially and they would be proud to be involved. Mr. Davidson explained the value of Mitsui Fu dosan America and stated the investors were long term owners and looked to hold assets indefinitely. Linda Mandolini stated it was one of the few teams she had worked with that had equity sitting at the table. Planning Commissioner Wong confirmed that Mitsui had $2 billion in the Bay Area. Mayor Pro Tem Matsumoto recessed the meeting at 11:42 a.m. and resumed the meeting at 11:45 a.m. Deputy Director Selander suggested the Committee discuss the interviews and rank preferences. Mayor Pro Tem Matsumoto confirmed that the ranking would be based on presentation, not financing. Planning Commissioner Wong stated he thought both were very good. He asked zoning in the Civic Center area related to height. City Manager Futrell stated two stories were currently permitted. Mayor Pro Tem stated she preferred AGI/KASA because of the proposed seven acres of open space. She stated she liked that the affordable housing was situated closer to the BART station and inclusion of Pal Care for child care. She stated she liked the inclusionary housing, public market and artist area. Councilmember Addiego stated he was not challenging the dream with his misgivings regarding the public market, just wanted to make sure the dream came true. He stated he did not yet want to pick a developer because they both had positive presentations. He stated equity partner, at this point, had his attention because he wanted to see the project happen sooner rather than later. Planning Commissioner Faria stated he did not want to state his preference because both had good ideas. He questioned whether Blake Griggs had a child care proposal or if it was an afterthought. He liked that Blake Griggs would have quick decision making. He stated AGI /KASA had more open space which was desirable. He stated he felt both would provide a good project, be approachable and make great partners for the City. He stated they set the bar very high. JOINT HOUSING STANDING COMMITTEE MEETING MARCH 12, 2018 MINUTES PAGE 9 Planning Commissioner Wong stated he liked the flexibility but liked the idea of some "for sale ". Planning Commissioner Faria expressed uncertainty of whether "for sale" units eliminated the high -rise possibility. Councilmember Addiego stated he found the linear approach along Mission offensive to his eye then the taller building. Analyst Talavera asked if the Committee could rank the two presentations. Planning Commissioner Faria stated he appreciated designs and architecture of Blake Griggs, but he would rank both the same. Planning Commissioner Shihadeh commented on the financial backing for Blake Griggs. Planning Commissioner Wong agreed on the importance of financing for the project. Mayor Pro Tern Matsumoto asked if the project was prevailing wage. Analyst Talavera stated the City Attorney could address prevailing wage in the upcoming closed session. City Manager Futrell stated the Building staff would hold those developers, no matter who they hire, to prevailing wage requirements. He stated the developers seemed to have a bigger depth of experience than others the City had worked with in the past. Councilmember Addiego commented on construction crews changing in the middle of projects. Director Greenwood explained that the City was selling the land which allowed greater flexibility in imposing design standards. In response to a question from Councilmember Addiego, Director Greenwood stated standards could also be imposed on the project interior. Mayor Pro Tem Matsumoto asked about the Oversight Board and the Redevelopment Successor Agency. City Manager Futrell explained he would think they would be aware of all the other offers. There would be a recommended from the Successor Agency and they would focus on the bottom line due to State Law requiring it to maximize the revenue. Planning Commissioner Wong suggested consideration of long -term benefits of property taxes over a ten or twenty -year period as opposed to a single payment in the beginning. City Manager Futrell stated that could be brought up to the Oversight Board, but it might not make a difference in the higher numbers. He discussed the property tax received by the City, County and School District. Mr. Smith explained that the property tax estimates were calculated differently. JOINT HOUSING STANDING COMMITTEE MEETING MARCH 12, 2018 MINUTES PAGE 10 Councilmember Addiego discussed the difference with a multi -phase project, versus a three or four -year project. He stated each proposal anticipated completion within five years. Analyst Talavera stated a representative from each developer would be available in closed session to answer questions. Deputy Director Selander stated they would require a decision maker be available. Adjournment Being no further business the meeting was adjourned at 12:04 p.m. Sub i Ap ov Gab 'el Ro riguez, Deputy City Clerk Kary W moto, Mayor Pro Tem City of South San Francisco City of South San Francisco JOINT HOUSING STANDING COMMITTEE MEETING MARCH 12, 2018 MINUTES PAGE 11