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HomeMy WebLinkAboutOrd. 1595-2020 (20-138)City of South San Francisco - P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA City Council Ordinance: ORD 1595-2020 File Number: 20-138 Enactment Number: ORD 1595-2020 ORDINANCE ADOPTING A FIRST AMENDMENT TO THE SECOND AMENDED AND RESTATED DEVELOPMENT AGREEMENT (DAA19-0003) TO THE GATEWAY BUSINESS PARK MASTER PLAN PROJECT BETWEEN THE CITY OF SOUTH SAN FRANCISCO AND BETWEEN BMR -700 GATEWAY LP, BMR -750, 800, 850 GATEWAY LP, BMR -900 GATEWAY LP, AND BMR -1000 GATEWAY LP TO MAKE MINOR MODIFICATIONS TO AMEND PROVISIONS RELATING TO CHILDCARE FACILITIES WITHIN THE DEVELOPMENT. WHEREAS, in 2010 the City of South San Francisco ("City") adopted (1) Resolution No. 18-2010 certifying the 2009 Environmental Impact Report ("2009 EIR") (State Clearinghouse No. 2008062059), (2) Resolution No. 19-2010 approving a general plan amendment and transportation demand management (TDM) program, (3) Ordinance No. 1422-2010 amending Chapters 20.57 and 20.120 of the Zoning Ordinance, and (4) Ordinance No. 1423-2010 approving a development agreement with Chamberlin Associates, for the construction of five to six R&D/ Office buildings, two to four parking structures, and related improvements on an approximately 22.6 -acre site located at 700-1000 Gateway Boulevard; and WHEREAS, in 2013 the City adopted (1) Resolution No. 43-2013 making findings and relying on the previously certified 2009 EIR, (2) Resolution No. 44-2013 approving modifications to the Gateway Business Park Master Plan, a new Phase 1 Precise Plan, and modifications to the TDM program, and (3) Ordinance No. 1471-2013 adopting a First Amended and Restated Development Agreement with Gateway of Pacific LP ("BioMed Realty"); and WHEREAS, in 2018 the City adopted Ordinance No. 1559-2018 adopting a Second Amended and Restated Development Agreement with BMR -700 Gateway LP, BMR -750, 800, 850 Gateway LP, BMR -900 Gateway LP, and BMR -1000 Gateway LP to allow for minor modifications to the agreement, including acknowledgement of the transfer and assignment of the separate parcels to the respective affiliates, acknowledgement of lot line adjustment between Phases 1 and 2, and confirmation that each property owner holds the compliance burdens, obligations, and responsibilities for its respective parcel of property under the Second Amended and Restated Development Agreement; and WHEREAS, BioMed Realty ("Owner" or "Applicant") submitted an application requesting a First Amendment to the Second Amended and Restated Development Agreement to allow for a minor modification to the agreement related to the replacement childcare obligation; and WHEREAS, the 2009 EIR was certified in accordance with the provisions of the California Environmental City of South San Francisco Page 1 File Number.' 20-138 Enactment Number.' ORD 1595-2020 Quality Act (Public Resources Code, §§ 21000, et seq., "CEQA") and CEQA Guidelines, which analyzed the potential environmental impacts of the Project; and WHEREAS, the modifications contemplated in the First Amendment to the Second Amended and Restated Development Agreement are minor in nature, the approval of which would not result in any new significant environmental effects or a substantial increase in the severity of any previously identified effects beyond those disclosed and analyzed in the 2009 EIR certified by City Council, nor does the First Amendment to the Second Amended and Restated Development Agreement constitute a change in the Project or change in circumstances that would require additional environmental review; and WHEREAS, the Planning Commission held a properly noticed public hearing on January 16, 2020, at which time interested parties had the opportunity to be heard, to review the proposed First Amendment to the Second Amended and Restated Development Agreement, as well as supporting documents, and recommended that the City Council consider the First Amendment to the Second Amended and Restated Development Agreement; and WHEREAS, the City Council held a duly noticed public hearing on February 12, 2020 to consider the First Amendment to the Second Amended and Restated Development Agreement, and take public testimony. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of South San Francisco does hereby ordain as follows: SECTION 1. Findings. That based on the entirety of the record before it, which includes without limitation, the California Environmental Quality Act, Public Resources Code §21000, et seq. ("CEQA) and the CEQA Guidelines, 14 California Code of Regulations §15000, et seq.; the South San Francisco General Plan, and General Plan Environmental Impact Report; the South San Francisco Municipal Code; 2009 EIR, and associated Mitigation Monitoring and Reporting Programs; all site plans, and all reports, minutes, and public testimony submitted as part of the Planning Commission's duly noticed January 16, 2020 meeting; all site plans, and all reports, minutes, and public testimony submitted as part of the City Council's duly noticed February 12, 2020 meeting; and any other evidence (within the meaning of Public Resources Code §21080(e) and §21082.2), the Planning Commission of the City of South San Francisco hereby finds as follows: A. The foregoing recitals are true and correct and made a part of this Resolution. B. The Exhibit attached to this Resolution, the proposed First Amendment to the Second Amended and Restated Development Agreement (Exhibit A), is incorporated by reference as if set forth fully herein. C. The documents and other material constituting the record for these proceedings are located at the Planning Division for the City of South San Francisco, 315 Maple Avenue, South San Francisco, CA 94080, and in the custody of the Planning Manager. City of South San Francisco Page 2 File Number.' 20-138 Enactment Number. ORD 1595-2020 D. The Owner and City have negotiated a First Amendment to the Second Amended and Restated Development Agreement pursuant to Government Code Section 65864 et seq. The First Amendment to the Second Amended and Restated Development Agreement, attached hereto as Exhibit A, sets forth the duration, property, project criteria, and other required information identified in Government Code Section 65865.2. Based on the findings in support of the Project, the Planning Commission finds that the Development Agreement, vesting a project for a campus -style development of office and R&D buildings, is consistent with the objectives, policies, general land uses and programs specified in the South San Francisco General Plan, the Gateway Specific Plan, and any applicable zoning regulations. E. The First Amendment to the Second Amended and Restated Development Agreement is compatible with the uses authorized in, and the regulations prescribed for the land use district in which the real property is located. The subject site is physically suitable for the type and intensity of the land use being proposed. The General Plan specifically contemplates the proposed type of project and the suitability of the site for development was analyzed thoroughly in the environmental document prepared for the Project. F. The First Amendment to the Second Amended and Restated Development Agreement is in conformity with public convenience, general welfare and good land use practice because the modifications are minor in nature. G. The First Amendment to the Second Amended and Restated Development Agreement will not be detrimental to the health, safety and general welfare because the amendment preserves a campus -like environment. H. The First Amendment to the Second Amended and Restated Development Agreement will not adversely affect the orderly development of property or the preservation of property valued because the amendment improves the property's campus -like environment and is consistent with surrounding R&D and office uses. SECTION 2. Approval of Development Agreement A. The City Council of the City of South San Francisco hereby approves the First Amendment to the Second Amended and Restated Development Agreement with BMR -700 Gateway LP, BMR -750, 800, 850 Gateway LP, BMR -900 Gateway LP, and BMR -1000 Gateway LP, attached hereto as Exhibit A and incorporated herein by reference. B. The City Council further authorizes the City Manager to execute the First Amendment to the Second Amended and Restated Development Agreement, on behalf of the City, in substantially the form attached as Exhibit A, and to make revisions to such Agreement, subject to the approval of the City Attorney, which do not materially or substantially increase the City's obligations thereunder. SECTION 3. Severability If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid or unconstitutional, the remainder of this Ordinance, including the application of such part or provision to other City of South San Francisco Page 3 File Number. 20-138 Enactment Number. ORD 1595-2020 persons or circumstances shall not be affected thereby and shall continue in full force and effect. To this end, provisions of this Ordinance are severable. The City Council of the City of South San Francisco hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase hereof irrespective of the fact that any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases be held unconstitutional, invalid, or unenforceable. SECTION 4. Publication and Effective Date. Pursuant to the provisions of Government Code Section 36933, a summary of this Ordinance shall be prepared by the City Attorney. At least five (5) days prior to the Council meeting at which this Ordinance is scheduled to be adopted, the City Clerk shall (1) publish the Summary, and (2) post in the City Clerk's Office a certified copy of this Ordinance. Within fifteen (15) days after the adoption of this Ordinance, the City Clerk shall (1) publish the summary, and (2) post in the City Clerk's Office a certified copy of the full text of this Ordinance along with the names of those City Council members voting for and against this Ordinance or otherwise voting. This Ordinance shall become effective thirty (30) days from and after its adoption. Introduced at a regular meeting of the City Council of the City of South San Francisco held the 12th day of February 2020. At a meeting of the City Council on 2/26/2020, a motion was made by Vice Mayor Garbarino, seconded by Councilmember Nicolas, that this Ordinance be adopted. The motion passed. Yes: 5 Mayor Garbarino, Vice Mayor Addiego, Councilmember Nagales, Councilmember Nicolas, and Councilmember Matsumoto Attest by 4c- 44-,, osa Govea Acosta, City Clerk r RichardVV fro • Mayor City of South San Francisco Page 4 Exhibit A RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City Clerk City of South San Francisco 400 Grand Avenue P. O. BOX 711 South San Francisco, CA 94083 Exempt from recording fees per Government Code §§6103, 27383 Space above this line reserved for recorder's use APNs: 015-023-290; 015-023-300 015-023-200;015-023-320; 015-023-430;015-023-190; 015-023-310 FIRST AMENDMENT TO SECOND AMENDED AND RESTATED DEVELOPMENT AGREEMENT BY AND BETWEEN CITY OF SOUTH SAN FRANCISCO 01011 BMR -700 GATEWAY LP, BMR -750,800,850 GATEWAY LP, BMR -900 GATEWAY LP, AND BMR -1000 GATEWAY LP SOUTH SAN FRANCISCO, CALIFORNIA Gateway Business Park Master Plan Project Page 1 FIRST AMENDMENT TO SECOND AMENDED AND RESTATED DEVELOPMENT AGREEMENT Gateway Business Park Master Plan Project This FIRST AMENDMENT TO SECOND AMENDED AND RESTATED DEVELOPMENT AGREEMENT FOR THE GATEWAY BUSINESS PARK MASTER PLAN PROJECT is dated 2020 ("First Amendment"). This First Amendment is between BMR -700 Gateway LP ("BMR -700 Gateway); BMR -750, 800, 850 Gateway LP ("BMR -750, 800, 850 Gateway"); BMR -900 Gateway LP ("BMR -900 Gateway"); and BMR - 1000 Gateway LP ("BMR -1000 Gateway"); all of which are Delaware limited partnerships (collectively "Owners" and individually "Owner"), on the one hand, and the CITY OF SOUTH SAN FRANCISCO, a municipal corporation organized and existing under the laws of the State of California ("City"), on the other hand. Each Owner and the City are individually referred to herein as a "Party" and collectively referred to herein as "Parties." RECITALS A. WHEREAS, Owners and City are parties to that certain Second Amended and Restated Development Agreement (Gateway Business Park Master Plan Project) by and between the Owners and City, dated August 31, 2018, and recorded in the Official Records of San Mateo County on September 7, 2018, as Document Number 2018-070317 ("Development Agreement"); B. WHEREAS, Owners and City wish to amend the Development Agreement as set forth in this First Amendment; C. WHEREAS, all proceedings necessary for the valid adoption and execution of this First Amendment have taken place in accordance with California Government Code sections 65864 through 65869.5, the California Environmental Quality Act, and Chapter 19.60 of the City's Municipal Code; D. WHEREAS, the City Council and the City Planning Commission have found that the Development Agreement, as amended by this First Amendment, is consistent with the objectives, policies, general land uses, and programs specified in the South San Francisco General Plan; and E. WHEREAS, on , 2020, the City Council of City adopted Ordinance Number -2020 approving and adopting this First Amendment, and such ordinance took effect 30 days later. AGREEMENT NOW, THEREFORE, the Parties, pursuant to the authority contained in Government Code Sections 65864 through 65869.5 and Chapter 19.60 of the City's Municipal Code, and in consideration of the mutual covenants and agreements contained herein, agree as follows: FIRST AMENDMENT TO SECOND AMENDED AND RESTATED DEVELOPMENT AGREEMENT Page 2 1. Revised Childcare Replacement Facility Requirement. Section 12(b) of the Development Agreement and Section 1.2.4(b) of Exhibit E-1 to the Development Agreement are each amended and restated in their entirety to read as follows: (b) Childcare Replacement Facility. To enable City to provide a childcare facility comparable to the former childcare facility that was designated for 850 Gateway Boulevard, envisioned to serve up to 80 to 100 children, the Owners of Phases 2, 3, and 4 collectively shall pay to the City (i) one million dollars ($1,000,000.00) within 30 days of the First Amendment Effective Date and (ii) six million five hundred thousand dollars ($6,500,000.00) prior to City's issuance of a temporary certificate of occupancy for Phase 2. The Parties agree that these payments satisfy Owners' childcare facility obligations in light of the present value of the funds to the City for other public projects and the potential renovation of an existing building to provide a space for a replacement childcare facility. Use of the funds is not limited to any specific potential project, and the City may use the initial one million dollars ($1,000,0000) for other public projects and the balance of funds for the provision of any childcare facility, including all costs associated with site acquisition (including, if necessary, eminent domain), environmental review, permitting, and all other expenses and fees, including reasonable attorneys' fees. Compliance with Section 12(b) of the DA and section 1.2.4(b) of Exhibit E-1 shall be deemed to be compliance with condition of approval A -16.b. The "First Amendment Effective Date" is defined as the date that the ordinance approving the First Amendment to this Agreement took effect. 2. Revised Fee Estimate. Exhibit E-2 to the Development Agreement is amended such that the seventh row of the second table is amended and restated to state "Child Care Facility (§ 12(b) of DA)" in the Fee column, "$7.5 million paid in accordance with § 12(b)" in the Rate and All Phases Fee columns, and "$0.00" in the Phase 1 Fee column. 3. Effective Date. Pursuant to Section 19.60.140 of the City's Municipal Code, notwithstanding the fact that the City Council adopted an ordinance approving this First Amendment, this First Amendment shall be effective and shall only create obligations for the Parties from and after the date that the ordinance approving this First Amendment takes effect. 4. Full Force and Effect. As amended by this First Amendment, the Development Agreement shall remain in full force and effect. 5. Counterparts. This First Amendment may be executed in multiple originals, each of which is deemed an original, and may be signed in counterparts. IN WITNESS WHEREOF this Agreement has been executed by the Parties on the day and year first above written. (Signatures appear on the following pages) FIRST AMENDMENT TO SECOND AMENDED AND RESTATED DEVELOPMENT AGREEMENT Page 3 CITY: CITY OF SOUTH SAN FRANCISCO ATTEST: By: Name: Its: City Manager APPROVED AS TO FORM: City Attorney OWNERS: City Clerk BMR -700 GATEWAY LP BMR -750, 800, 850 GATEWAY LP By: By: Name: Name: Its: Its: BMR -900 GATEWAY LP BMR -1000 GATEWAY LP By: By: Name: Name: Its: Its: FIRST AMENDMENT TO SECOND AMENDED AND RESTATED DEVELOPMENT AGREEMENT Page 4 A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of County of On , before me, , a Notary Public, personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature 3461691.1 (Seal) FIRST AMENDMENT TO SECOND AMENDED AND RESTATED DEVELOPMENT AGREEMENT Page 5