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AGENDA
REDEVELOPMENT AGENCY
CITY OF SOUTH SAN FRANCISCQ
REGULAR MEETING
MUNICIPAL SERVICES BUILDING
COMMUNITY ROOM
WEDNESDAY NOVEMBER 12, 2008
6:30 P.M.
PEOPLE OF SOUTH SAN FRANCISCO
You are invited to offer your suggestions. In order that you may know our method of conducting
Agency business, we proceed as follows:
The regular meeting of the Redevelopment Agency is held on the second Wednesday of each
month at 6:30 p.m. in the Municipal Services Building, Community Room, 33 Arroyo Drive, South
San Francisco, California.
Public Comment: For those wishing to address the Board on any Agenda or non-Agendized item,
please complete a Speaker Card located at the entrance to the Community Room and submit it to
the Clerk. Please be sure to indicate the Agenda Item # you wish to address or the topic of your
public comment. California law prevents Redevelopment Agency from taking action on any item
not on the Agenda (except in emergency circumstances). Your question or problem may be
referred to staff for investigation and/or action where appropriate or the matter may be placed on a
future Agenda for more comprehensive action or a report. When your name is called, please come
to the podium, state your name and address for the Minutes. COMMENTS ARE LIMITED TO
THREE (3) MINUTES PER SPEAKER. Thank you for your cooperation.
The Clerk will read successively the items of business appearing on the Agenda. As she completes
reading an item, it will be ready for Board action.
PEDRO GONZALEZ
Chair
KARYL MA'fSUMOTO
Vice Chair
RICHARD A. GARBARINO
Boardmember
RICHARD BATTAGLIA
Investment Officer
BARRY M. NAGEL
Executive Director
MARK N. ADDIEGO
Boardmember
KEVIN MULLIN
Boardmember
KRISTA MARTINELLI-CARSON
Clerk
STEVEN T. MATTAS
Counsel
PLEASE SILENCE CELL PHONES AND PAGERS
HEARING ASSISTANCE EQUIPMENT IS AVAILABLE FOR USE BY THE HEARING-IMPAIRED AT REDEVELOPMENT AGENCY MEETINGS
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.
CALL TO ORDER
ROLL CALL
AGENDA REVIEW
PUBLIC COMMENTS
CONSENT CALENDAR
1. Motion to approve the minutes of September 10, 2008, September 24, 2008 and
October 8, 2008.
2. Motion to approve the expense claims of November 12, 2008.
PUBLIC HEARING
3. Hyatt Place Hotel
Vijay Patel/applicant
SRI Krishna Enterprises/owner
550 Gateway Blvd
P07-0073: PP07-0001, SIGN07-0047,
MND07-0003
VAR07-0004, TDM08-0003, DR07-0046 &
Precise Plan, Type "C" Sign Permit, Design Review, Transportation Demand
Management Plan & Variance applications fora 166 room, eight-story Hyatt Place
Hotel, at 550 Gateway Boulevard, in the Gateway Specific Plan District in
accordance with SSFMC chapters 20.57, 20.85, 20.86 & 20.120.
Recommendation to Continue to Regular Meeting of December 10, 2008.
CLOSED SESSION
4. Pursuant to Government Code section 54956.$ real property negotiations related to
415-417 Grand Avenue. Company negotiator: Metwally. Agency negotiator:
Marty Van Duyn.
5. Pursuant to Government Code section 54956.8 real property negotiations related to
306 Miller Avenue. Company negotiator: Deutsche Bank. Agency negotiator:
Marty Van Duyn.
ADJOURNMENT
REGULAR REDEVELOPMENT AGENCY MEETING NOVEMBER 12, 2008
AGENDA PAGE 2
RDA AGENDA ITEM # 1
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CALL TO ORDER:
MINUTES QRAFT
REDEVELOPMENT AGENCY
CITY OF SOUTH SAN FRANCISCO
REGULAR MEETING
MUNICIPAL SERVICES BUILDING
COMMUNITY ROOM
33 ARROYO DRIVE
WEDNESDAY, SEPTEMBER 10, 2008
6:35 p.m.
ROLL CALL: Present: I3oardmembers Addiego, Gar-barino and Mullin, Vice
Chairwoman Matsumoto and Chairman Gonralcr.
Absent: None.
AGENDA R1i~VIEW
None.
PUBLIC COMMLNrhS
None.
CONSENT CALENDAR
Motion to approve the minutes of July 9, 2008, July 23, 2008 and August 27, 2008.
2. Motion to approve the expense claims of September 10, 2008 in the amount of
$3,532,894.11.
Motion- I3oardrnember Addiego/Second-13oardmember Garbarino: to approve Consent
Calendar Item Nos. 1 and 2. Unanimously approved by voice vote.
ADMINISTRATIVE BUSINESS
3. Resolution No. 19-2008 authorising the expenditure of $10,000 in tax increment revenues
for a minor rehabilitation of the City-owned residence located at 109 Longford Drive
into a Green Model Home.
Manager of Housing and Redevelopment Fragoso advised the City had acquired a house at 109
Longford Drive in 2003 through eminent domain. The house had been leased to Shelter Network,
which was unable to find a family large enough to comply with the City's standard requirement.
Shelter Network would terminate the lease effective October 31, 2008. Manager Fragoso further
explained the City saw an opportunity for this home to be a "green model" that would allow
residents to see first hand the variety of green building products available. Green vendors, includinu;
Green Building Exchange and Building Quality Communities, had secured contributions such as
solar panels, wood floors, a tankless water heater, windows, roof solar tubes, insulation anal paints.
In addition, on October 4, 2008, the City in collaboration with FritoLay/Pepsi would have a
substantial volunteer workday to paint the house, install new windows and add landscaping features.
The house was planned to serve as a green model for approximately one year. During this time, the
home would be open to the public for the purpose of encouraging residents to "go green." The pause
would be available for purchase thereafter.
Vice Chairwoman Matsumoto thanked the representat7ve fic-m Frito-Lay for funding and also
expressed appreciation to the volunteers who would be participating on October 4, 2008.
Boardmember Addiego questioned the process through which the City had initially acquired the
property. He further questioned whether residents living near 109 Longford had been notified of
the green model project.
Manager Fragosa explained the City acquired the property through eminent domain and had
compensated the previous owner. Regarding notifying neighboring residents of the green model
project planned at 109 Longford, she explained Community Development Coordinatur Adams
had visited the neighborhood that day to knock on doors, explain the project and leave fliers
advising residents of plans.
Chairman Gonzalez hoped the home would be available to ]ow-income families after a year's
time and Vice Chairwoman Matsumoto added perhaps it could first be made available to teachers
ar employees of the City.
Motion-Boardmember Garbarino/Second- Vice Chairwoman Matsumoto: to approve
Resolution No. 1.9-2008. Unanimously approved by voice vote.
CLOSED SESSION
4. Conference with Legal Counsel:
Anticipated Litigation (Pursuant to Government Code Section 54956.9(c))
Initiation of Litigation: One Case.
Time entered Closed Session: 6:55 p.m.
Time Open Session Resumed: 7:08 p.m.
Report out of Closed Session by Chairman Gonzalez: Direction given.
REGULAR REDEVELOPMENT AGENCY MEETING SEPTEMBER 10, 2008
MINUTES PAGE 2
ADJOURNMENT[,
Being no fiu-ther business, Chairman Gonzalez adjourned the meeting at 7:08 p.m.
Submitted by: Approved:
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Krista ar ~nelli- ~~ rson, Clerk Pedro Gonzalez, Chairman
City ot~ South Sai F'rw~cisco City of South San I{rancisco
REGULAR REDEVELOPMENT AGENCY MEETING SEPTEMBER 10, 2008
MINUTES PAGE 3
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~/I INU T E S
J O
c`~LIFOR~~A SPECIAL MEETING
REDEVELOPMENT AGENCY
CITY OF SOUTH SAN FRANCISCO
Meeting held at:
MUNICIPAL SERVICh~S BUILDING
COMMUNITY ROOM
33 ARROYO DRIVE
WEDNESDAY, SEPTEMBER. 24, 2008
CALL TO ORDER: 6:31 p.m.
ROLL CALL: Present: 13oardmembers Addiego anal Mullin, Vice Chairwoman
Matsumoto and Chairman Gonzalez.
Absent: 13oardmember Garbarino.
1. Public Comments -comments were limited to items on the Special Meeting Agenda.
None.
2. Resolution No. 20-2008 approving the execution of an Owner Participation and Loan
Agreement with MP South City L.P., approving the provision of a loan for the acquisition
and development of a mixed-use affordable housing project at 636 El Camino Real,
adopting findings that such financing will be of benefit to the El Camino Corridor
Redevelopment Project Area, authorizing the execution of documents in connection with
such financing, and approving an amendment to the Agency Low/Mod Housing
Operating Budget.
Redevelopment Consultant Sanchez presented the staff report recommending approval of a loan
for the development of an affordable housing project at 636 El Camino Real. The proposed loan
would fund acquisition and pedevelopment expenses. Pursuant to the agreement, Mid-Peninsula
Housing would be required to give preference to residents who live or work in South San
Francisco. He further advised that Mid-Peninsula staff members were present and available to
answer any of the Agency's questions. He recommended approval of the resolution subject to
final approval of the agreement by the City Attorney.
Chairman Gonzalez recognized members of the public for comment on the item.
Superintendent of the South San Francisco Unified School District Barbara Olds appeared to
express the School District's concerns regarding the proposal and advised the District had just
recently been notified the project would be moving forward. The District's concerns centered on
the project's potential to impact the educational programs irl place at South San Francisco High
School and Los CeiTitos Elementary, both of which were in close proximity to the proposed
development. She opined the relationship between income levels and No Child Left Behind
might affect students at these schools. The District's additional concerns related to the impact of
the development on traffic and parking near South San Francisco High School. Superintendant
Olds was pleased that employees of the School District would potentially qualify to reside at the
development. She requested that the School District be consulted and included as part of a
collaborative effort moving forward on the project.
Resident Pradeep Gupta stated that for most of the year he had been attending conferences related
to the lack of affordable housing in our area. He expressed concern that the lack of such housing
impacts essential elements of our community. He applauded the proactive direction the City had
taken. with respect to affordable housing and encouraged support for this project. Mr. Gupta
opined the development presented an opportunity to create a template for projects on the E1
Camino Real, including such elements as design, facade and space requirements. He then briefly
addressed the issues raised by the School District and stated the development had the potential to
create opportunity for students of all income levels and might even reduce traffic given that its
location was within walking distance of the schools.
Resident Elizabeth Rosa advised she had lived at 636 El Camino Real for 14 years. The
possibility of a new development on the property caught current residents by surprise. She
expressed concern over the development's impact on her rent.
Vice Chairwoman Matsumoto advised Ms. Rosa she should not leave the meeting with anxiety.
She explained state law protects the rights of current residents at 636 El Camino Real and noted
the residents would not be left out in the cold. She asked Ms. Rosa to speak with Redevelopment
Consultant Sanchez who would be able to provide more information about the process.
Resident Erica, also of 636 El Camino Real, stated she was pleased that a new development was
planned for the property but expressed concern over what would happen to herself and others
currently in residence. She stated that Boardmembers' previous comments had addressed her
concerns.
Boardmember Addiego questioned whether Erica would be comfortable sharing her current rent.
>=?rica stated her rent was currently around $650.00/month.
Resident Chris Moore explained that throughout the state, Mid-Peninsula had an excellent
reputation for providing very affordable housing, including onsite services such as after school
programs and computer rooms. Mr. Moore further stated the development would provide good
prevailing wage jobs during construction. A higher density design at the site would be in
keeping with the Grand Boulevard vision. In addition, marketing the development to South San
Francisco residents would provide families with children already enrolled in South San Francisco
Schools with a better place to live and might yield more disposable income for such residents.
Matthew O. Franklin, Executive Director of Mid Peninsula Housing Coalition appeared and
acknowledged the School District's concerns and noted such concerns were taken seriously. He
SPECIAL REDEVELOPMENT AGENCY MEETING SEPTEMBER 24, 2008
MINUTES PAGE 2
stated Mid-Peninsula's intent to collaborate with the City and School District and any and all
local partners to aggressively pursue South San Francisco residents. Thus, he opined many of the
children who would reside at the property would already be enrolled in South San Francisco
Schools. Mid-Peninsula's developments generally include computer labs, community rooms and
meeting space. Anticipated family development programs would incorporate a focus on
children's education, after school mentoring and homework clubs. He acknowledged traffic was
a concern, and noted a professional would be hired to perform a traffic study during the land use
process. He observed a solution to traffic concerns would be to create the primary entrance to the
property off of El Camino Real as opposed to B Street. Mr. Franklin further noted that
qualifying income levels for a family of four at Mid-Peninsula properties is generally in the range
of 30-60% of average median income. Accordingly, the majority of the residents would be
employed anal working. Based upon these numbers, a variety of integral community members,
including employees of the City and School District would benefit from the housing. He closed
by noting the existence of very clear state relocation guidelines governing the rights of current
residents on the property.
Boardmember Mullin questioned whether onsite childcare was offered at any ofMid-Peninsula's
developments.
Mr. Franklin advised onsite childcare existed at many of the developments in collaboration with
Head Start and noted such childcare was a very regular component of Mid-Peninsula's family
housing developments.
Vice Chairwoman Matsumoto stated she sits on the Housing Committee, which fully supported
the proposed development. She opined the proposal was consistent with the Grand Boulevard
initiative and the City's direction. She also noted that low income does not equate to children
that are slow learners. She expressed a preference for placement of current South San Francisco
residents in the development and questioned the composition of the limited partnership.
Mr. Franklin responded it was very common for real estate developers to form a limited
partnership to serve as a stand alone legal entity on a development specific basis such that each
project stands alone. He noted the limited partnership was essentially Mid-Peninsula, he was the
President and there were no other members.
Vice Chairwoman Matsumoto observed the Agency was being requested to increase its loan by
$500,000.00. She questioned whether the Agency would be able to utilize certain funds from
Genentech towards this purpose.
Kedevelopment Consultant Sanchez advised staff intended to seek use of such funds. He noted
that whether applied to predevelopment or later expenses, it maybe necessary to go to HEART
for funding.
Councilman Addiego stated the project was consistent with the City's vision for development on
F?1 Camino Real. He questioned whether Mid-Peninsula's limited partnership would expect to
eventually roll out of the project. He further questioned what would happen after expiration of
the 15 year period during which management and development fees were due. He also
SPECIAL REDEVELOPMENT AGENCY MEETING- SEPTEMBER 24, 2008
MINUTES PAGE 3
questioned the likelihood the 55 year term would satisfy the note.
Mr. Franklin responded Mid-Peninsula intended to serve as the long time sole owner and
manager of the project. At the 15 year point, Mid-Peninsula would likely buy-out the limited
partner, which was contemplated on the front end in the partnership agreement. He noted the
ultimate objective was to develop quality, affordable housing in perpetuity. Regarding the 55
year term, he opined it was unlikely to satisfy the entirety of the note.
Prior to adoption of the Motion, Vice Chairwoman Matsumoto stated the caveat that the Agency
would work with HEART to secure funding for this project.
Motion- Boardmember Addiego/Second -Boardmember Mullin: to adopt Resolution No. 20-
2008 and provide the City Attorney final authority to improve insurance provisions as to form.
AYES: Boardmembers Addiego and Mullin, Vice Chairwoman Matsumoto and Chairman
Gonzalez. NOES: None. ABSENT: Councilman Garbarino.
3 . Adjournment.
Being no further business, Chairman Gonzalez adjourned the meeting at 7:17 p.m.
Submitted by:
. ,..
Krista Martlnell~ arson, Clerk
City of South i Francisco
Approved by:
Pedro Gonz~ilez, Chairman
City of South San Trancisco
SPECIAL REDEVELOPMENT AGENCY MEETING
MINUTES
SEPTEMBER 24, 2008
PAGE 4
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MINUTES ~~~T
REDEVELOPMENT AGENCY
CITY OF SOUTH SAN FRANCISCO
REGULAR MEETING
MUNICIPAL SERVICF,S BUILDING
COMMUNITY ROOM
33 ARROYO DRIVE
WEDNESDAY, OCTC)BER 8, 2008
CALL TO ORDER
ROLL CALL:
AGENDA REVIEW
None.
PUBLIC COMMENTS
None.
CONSENT CALENDAR
6:31 p.m.
Present: Boardmembers Add.iego, Garbarino and
Mullin, Vice Chairwoman Matsumoto
and Chairman Gonzalez.
Absent:
None.
1. Motion to approve the minutes of September 10, 2008.
2. Motion to approve the expense claims of October 8, 2008 in the amount of
$1,434,314.04.
Motion-Boardmember Garbarino/Second- Vice Chairwoman Matsumoto: to approve
Consent Calendar Item No. 2. Unanimously approved by voice vote.
Item No. 1: Boardmember Addiego pointed out a portion of the Minutes of the Regular
Meeting of September 10, 2008 that he believed did not reflect comments in response to a
question he raised regarding an eminent domain action pertaining to a property on
Longford Drive.
Clerk Martinelli-Larson responded she was not present at t}le meeting in question and had
not prepared the minutes due to participation in a conference. She questioned the
procedure for overwriting minutes prepared by another individual.
Counsel Mattas advised the Clerk had the authority to rewrite the Minutes.
Vice Chairwoman Matsumoto requested a future update pertaining to information relating
to a certain bond, including the current location of unspent n~~oney.
AD.IOURNMENT
Being no fiu-ther business, Chairman Gonzalez adjourned the meeting at 6:36 p.m.
Submitted bv:
Krista°~4arti~ie~-Larson, Clerk
City of South an Francisco
Approved by:
Pedro Gonzalez, Chairman
City of South San Francisco
REGULAR REDEVELOPMENT AGENCY MEETING
MINUTES
OCTOBER 8, 2008
PAGE 2
RDA AGENDA ITEM # 2
I certify that the demands set forth on this payment register are
accurate and funds are available for payment.*
DATED: 1~~, C
F N CE DIRECTOR
*Note: Items below do not include payroll related payments
Checks:
Date
10/08/08 $
10/15/08
10/22/08
10/29/08
11/05/08
Electronic Payments:
Date
10/21/08 $
Total Payments $
551,751.17
This is to certify that the above bills were confirmed at the regular meeting
of the Redevelopment Agency of South San Francisco held November 12, 2008.
DATED
Amount
53,724.73
17,580.00
358,785.95
74,607.87
42,334.16
Amount To Description
4,71'.46 Deutsche Bank RDA Debt Service
CHAIR
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RDA A GENDA ITEM # 3
°sx~~s~~~ Redevelo
o ~ p
H ~
c ~~° Sta Rep. ort
'~LIFOR~
.ent Agency
DATE: November 12, 2008
TO: Redevelopment Agency Board
FROM: Marty Van Duyn, Assistant Executive Director
SUBJECT: PRECISE PLAN, TYPE "C" SIGN PERMIT, DESIGN REVIEW,
TRANSPORTATION DEMAND MANAGEMENT PLAN & VARIANCE
APPLICATIONS FORA 166 ROOM HYATT PLACE HOTEL, AT 550
GATEWAY BOULEVARD, IN THE GATEWAY SPECIFIC PLAN
DISTRICT IN ACCORDANCE WITH SSFMC CHAPTERS 20.57, 20.85,
20.86, & 20.120
Applicant: Vijay Patel
Case Nos.: P07-0073: PP07-0001, ND07-0003, DR07-0046, VAR07-0004,
SIGNS07-0047, TDM08-0003
RECOMMENDATION:
It is recommended that the Redevelopment Agency continue application P07-0073 to the
December 10, 2008 Redevelopment Agency meeting.
BACKGROUND/DISCUSSION:
The mitigated negative declaration is complete; however, the applicant has requested a one
month continuance to finalize outstanding project details.
B ~~" ~ 1-~ Approved:
- _ ~.
Marry Van Duyn ~ B,~rry M. Na~ `~~
)' ctor Executive Director
Assistant Executiv~ ire
BMN/MVD/ghb