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HomeMy WebLinkAboutReso 66-2008 RESOLUTION NO. 66-2008 CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION APPROVING AN AMENDMENT TO THE FINAL TERRABA Y PHASE III SPECIFIC PLAN, AND CONDITION OF APPROVAL A-20; P06-0073: SPM08-0001, PPM08-0001 AND AHA08- 0001 WHEREAS, the TelTabay lands have an extensive plam1ing histolY dating to the early 1980s; and, WHEREAS, the City Council of South San Francisco, pursuant to the California Environmental Quality Act (CEQA), celiified the 2005 Supplelnental EnvirOlunentall1npact Repoli (SEIR) which builds upon the certified 1998/99 SEIR, 1996 SEIR and 1982 Environmental1111pact Report, and adopted a Mitigation Monitoring and Reporting Program (MMRP) for TelTabay Phase III by Resolution 81-2006, all of which remain in effect; and, WHEREAS, the City Council approved the 2006 Plan Alnendlnent and Condition of Approval A-20, to the 2006 Final TelTabay Specific Plan, in October of2006 by Resolution 82-2006; and, WHEREAS, the 2006 Plan Alnendment and Condition of Approval A-20 require the Developer to produce 321noderate incolne housing units at 120 percent of median as a condition to provide work force housing in support of the approved 665,000 square feet of office on the Phase ill site; and, WHEREAS, market and housing prices have substantially cooled since 2000 resulting in Inoderate incolne housing at 120 percent of the Inedian being sYllonYlnous with Inarket rate housing; and, WHEREAS, the Developer has requested an amendment to the 2006 Plan Alnendment and Condition of Approval A - 20, that would allow the Developer to provide real property lmown as 418 Linden Avenue, $800,000 in development fees, and various due diligence documents, in lieu of producing the 32 units of moderate incon1e housing ("2008 Plan Amendlnent"); and, WHEREAS, acceptance of the property, in-lieu fee, and due diligence documents would benefit the City by allowing it to leverage the site and/or in-lieu fees for both affordable housing (at less than 120 percent of the n1edian) and allow direct control over a key parcel in the Downtown area; and, WHEREAS, the City's acceptance of the Linden Avenue property would give the City an opportunity to develop a high-quality mixed use proj ect that would add discretionary income to the Downtown and support Downtown business retention and development; and, WHEREAS the 2008 Plan Amendn1ent would amend page 1-43 of the 2006 Final TelTabay Specific Plan, and Condition of Approval A-20, as indicated in the attached Exhibit A, incorporated herein by reference; and, WHEREAS, the City Manager and City Atto111ey willlnodify the existing Affordable Housing Agreelnent in accordance with the 2.008 Plan Amendment; and, WHEREAS, approval of the 2008 Plan Alnendlnent is exempt from further CEQA review under Section 15061(b)(3) California Code of Regulations Title 14, Chapter 3, because the n10dification to the Specific Plan and Condition of Approval A-20, allowing the Developer to provide fees, land and due diligence doculnents in lieu of construction of affordable housing would not result in an activity that could cause a direct physical change in the envirolu11ent or a reasonably foreseeable indirect physical change in the enVir0111nent. Any future development of the 418 Linden Avenue site, or any other site that the City may select to construct housing would be contingent upon an application, developn1ent plans and enviromnental review based upon the proposal; and, WHEREAS, public hearings were duly noticed and conducted on May 1, 2008 before the Plmu1ing COlnlnission and on June 25, 2008, before the City Council, to consider the Developer's request. NOW THEREFORE, BE IT RESOLVED that based upon the entirety of the record, which includes, but is not lin1ited to (1) The South San Francisco General Plan, and General Plan Enviromnental Impact Report; (2) The Final TelTabay Specific Plan, as amended in 2000,2006 and proposed in 2008; (3) The 2005 Certified Supplemental Environmental Impact Report and 2006 Addendlun and Mitigation Monitoring and Repoliing Progrmn, 1998-99 Certified TelTabay Supplelnental Envirolnnental Impact Report, whid1 includes the 1982 Certified TelTabay Envirolnnental Impact Report, the Certified 1996 TelTabay Supplelnental Envirolunentall1npact Report and Addenduln to the 1998-1999 Certified TelTabay Supplemental Enviromnentall1npact Repoli and Addenduln; (4) All public hearings, including minutes and reports prepared for such hearings, the City Council for the City of South San Francisco hereby finds that the 2008 Plan Amendment is consistent with the City's General Plan policies, and does not affect the 2006 Final TelTabay Specific Plan consistency with the General Plan or state law, for the following reasons: . The 2008 Plan An1endment does not change the General Plan conforn1ance findings identified and adopted in Resolution 82-2006. . The approved 2006 Final TelTabay Specific Plan would only be modified as pertaining to the moderate income units. . The distribution, location, and extent of land uses governed by the 2006 Final TelTabay Specific Plan would not be altered. . The distribution, location, extent and intensity of major components of the public and private improvements including transportation, water, wastewater, drainage, solid waste disposal, energy and other essential facilities would not be altered as a result of the 2008 Plan Am endn1ent. . The standards and criteria by which the TelTabay developlnent has and will proceed and the standards and conservation, development, and utilization of natural resources would not be altered by the 2008 Plan Amendment. . The Mitigation Monitoring and Reporting Program adopted by City Council Resolution No. 81-2006 would not be altered by the 2008 Plan Amendlnent and would remain in full force and effect. The conditions of approval adopted by Resolution No. 82-2006 would not be altered by the 2008 Plan A111endment, except for the method by which the n10derate incolne housing units would be provided, as described in mnended Condition of Approval A-20, attached hereto as Exhibit A. . The 2006 Plan Amendlnent con1plies with the General Plan as identified in City Council Resolution No. 82-2006 and the 2008 Plan Amendlnent con1plies with all the General Plan findings contained in Resolution 82-2006 and the additional Economic Developlnent Policy 6-1-15. . The 2008 Plan Amendlnent provides the City with the control over how and where the moderate income units are produced and provides the City with control over the design and quality of the project. NOW, THEREFORE, BE IT FURTHER RESOLVED that the City Council of the City of South San Francisco, does hereby approve, subject to the attached Conditions of Approval in Exhibit B, the 2008 Plan Amendlnent to the 2006 Final TelTabay Specific Plan and amended Condition of Approval A-20, attached and incorporated herein as Exhibit A and directs the Office of the City Manager and City Atton1ey to mnend the Affordable Housing Agreelnent to reflect said approved n10difications. BE IT FURTHER RESOLVED that the City Manager and City Attorney are authorized to (1) approve the appropriate entity within the Myers Development cOlnpanies to execute the amended affordable housing agreelnent and attachments thereto including the promissolY note and (2) approve and execute the agreement upon presentation of documentation substantiating that Myers Peninsula Ventures Holding, LLC has adequate financial capacity to fund the obligation. * * * * * I hereby celiifY that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of South San Francisco at a regular 111eeting held on the 25th day of June 2008 by the following vote: AYES: Counciln1en1bers Mark N. Addiego, Richard A. Garbarino and IZevin Mullin, Mavor Pro Tem Karyl Matsulnoto and Mayor Pedro Gonzalez NOES: ABSTAIN: ABSENT: None EXHIBIT A Page page 1-43 of the Terrabay Specific Plan is hereby amended as follows: TelTabay Specific Plan b. Off Site The 2000 Plan proposed and was subsequently required to provide 32 moderate-income units to be developed by MDC elsewhere within the City of South San Francisco. These units may be parked at one space per unit, provided that the site is located within close proximity to public transportation. The project will be developed in concert with the City and preferably within the densely populated central district of the City. The 2006 Plan Amendment requiresQ 32 moderate income housing units to be constructed off site and depending on their location as noted above, may be parked at one space per unit. The City v{ill proce:::;s the entitlements for the moderate income units and 11DC 'will be responsible for securing the property, constructing the units and recording deed restrictions to the sntisfaction of the City, assuring the units are available to moderate income households. \'arious properties \vithin the corporate boundaries of thc City of South San Francisco are being pursued by 11DC for the construction of the units. The 2008 Plan Amendment provides that MDC convey certain real property known as 418 Linden Street in South San Francisco, a $300.000 in lieu fee and various due diligence documents to the City as satisfaction of the 32 moderate income housing unit requirement. Additionally, a $500,000 dollar development fee is required to be paid to the City within 5 years or upon commencement of construction of 418 Linden Avenue whichever is earliest with interest accruing at a rate of at 4.7% per year. In the unlikely event that conveyance of the Linden A venue property fails. MDC will provide the City a $2.7 million in lieu payment to fulfill the 32 unit moderate income housing requirement. Condition of Approval A-20 of City Council Resolution 82-2006 is hereby modifIed as follows: The Applicant shall have :::;ecured a :::;itc and obtained entitlements for thc 32 moderate inCOlTIe units and ha"';e commenced con:::;truction of the 32 off oite moderate income housing units convey the 418 Linden Avenue property, $300.000 in lieu fee and background documents including the Phase I Environmental Site -5- Assessment. the geotechnical study, the topographic survey and architectural drawings within 60 days of City Council action on the 2008 Plan Amendment. Additionally. payment of a $500.000 development fee plus interest (4. 7%/year) within the earlier of five years or at the start of future construction at 418 Linden Avenue is also required to satisfy Myers Development Company's requirement to produce 32 moderate income housing units. prior to a ccrtificate of occupancy being issued for any phase of the Phase III 2006 Proj ect. In the event that the Linden A venue property cannot be successfully conveyed to the City on or before September 15, 2008 a $2.7 million dollar in lieu fee shall be paid to the City by September 30. 2008. The existing "Affordable Housing Agreement", approved by the City Council in 2007, shall be modified to reflect the 2008 Plan Amendment and executed between the Developer and the City within 30 days of City Council action on the 2008 Plan Amendment to issuance of any grading permits for the 2006 Project (Phase III). ~\ "Set /Lside" letter from the ~^.I.pplicant' s construction lender assuring the availability of the specific sums required to complete construction of said units ~hall be provided to the City. Construction of the 32 units shall be completed and a certificate of occupancy issued for the moderate income units 'vVithin 15 months of the certificate of occupancy being issued for the first office to"'.ver or the funds ayailab1c from the lender for the production of the units 'NiB be available to the City for completion of the units. Failure of the Applicant to meet the deadlines stipulated in this 2008 Plan Amendment shall result in the revocation of 2008 Plan Amendment and the requirement shall revert to that stipulated by and approved in the 2006 Plan Amendment. -6- EXHIBIT B 2008 AMENDMENT TO THE FINAL TERRABAY PHASE III SPECIFIC PLAN AND CONDITION OF APPROVAL A-20 P06-0073: SPM08-0001, PPM08-000l and AHA08- 0001 1. The Applicant shall conform to all the conditions of approval identified in Resolution 82-2006 with the exception to the following mnendment to COA A- 20: The Applicant shall convey the 418 Linden Avenue property, $300,000 in lieu fee and background documents including the Phase I Environmental Site Assessment, the geotechnical study, the topographic survey and architectural drawings within 60 days of City Council action on the 2008 Plan Amendment and pay a $500,000 dollar development fee within five years or upon commencement of construction on 418 Linden Avenue whichever is earliest at 4.7% interest per year. In the event that the Linden Avenue property cannot be successfully conveyed to the City on or before September 15, 2008 the $2.7 million in lieu fee shall be paid to the City by September 30, 2008. The certificate of occupancy on the south office tower shall be withheld until the in lieu fee is paid. The existing "Affordable Housing Agreement", approved by the City Council in 2007, shall be modified to reflect the 2008 Plan Amendment and executed between the Developer and the City within 30 days of City Council action on the 2008 Plan Amendment. Failure of the Applicant to meet the deadlines stipulated in this 2008 Plan Amendment shall result in the revocatj,on of 2008 Plan Amendment and the requirement shall revert to that stipulated by and approved in the 2006 Plan Amendment. 2. The Applicant and Project shall implement all the mitigation measures identified in the adopted Mitigation Monitoring and Reporting Program for TelTabay adopted by City Council Resolution 81-2006. 3. The approved Affordable Housing Agreement shall be modified to reflect the provisions of the 2008 Plan Amendment and Condition of Approval A-20. -7-