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HomeMy WebLinkAboutRDA Minutes 2008-09-24MI UTE S N J ~ lea SPECIAL MEETING 'ILIFOR~ REDEVELOPMENT AGENCY CITY OF SOUTH SAN FRANCISCO Meeting held at: MUNICIPAL SERVICES BUILDING COMMUNITY ROOM 33 ARROYO DRIVE WEDNESDAY, SEPTEMBER 24, 2008 CALL TO ORDER: 6:31 p.m. ROLL CALL: Present: 13oardmembers Addiego and Mullin, Vice Chairwoman Matsumoto and Chairman Gonzalez. Absent: 13oardmembcr 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 in place at South San Francisco High School and Los Cerritos 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 El 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. Erica 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 and working. Based upon these numbers, a variety of integral community members, including employees of the City anal 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 of Mid-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 ofMid-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. Redevelopment Consultant Sanchez advised staff intended to seek use of such funds. He noted that whether applied to pedevelopment 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 El 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 Soutli Francisco Approved by: ~~ ~,~~ ~ L Pedro Gonz~~lez, Chairnla~i~ City of South San Francisco SPECIAL REDEVELOPMENT AGENCY MEETING MINUTES SEPTEMBER 24, 2008 PAGE 4