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HomeMy WebLinkAboutMinutes 2008-11-03°~sx"s~~~ MINUTE S 0 SPECIAL MEETING c'~lIFOR~1~ REDEVELOPMENT AGENCY CITY OF SOUTH SAN FRANCISCO CITY COUNCIL OF THE CITY OF SOUTH SAN FRANCISCO P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, California 94083 Meeting to be held at: CITY HALL CONFERENCE ROOM 400 GRAND AVENUE SOUTH SAN FRANCISCO NOVEMBER 3, 2008 City Council Meeting Called to Order: 6:31 p.m. Redevelopment Agency Meeting Called to Order: 6:31 p.m. City Council and Redevelopment Agency Roll Call: Present: Councilmen/13oardmembers Addiego and Mullin * , Mayor Pro rl'cm/Vicc Chairwoman Matsumoto and Mayor/Chairman Gonaler. Absent: Councilman/I3oardmember Uarbarino. * Councilman/13oardmember Mullin arrived at 6:33 p.m. * * For reporting purposes, participants are referred to by their titles affiliated with the City Council. Public Comments: None. 2. Closed Session: Conference with Real Property Negotiator (Pursuant to Government Code section 54956.8) Property: Oyster Point Marina Area Properties known as Parcels A, B, C, D-1, D-2, E 1. -4 and I-4 Negotiating Parties: City of South San Francisco, South San Francisco Redevelopment Agency and Oyster Point Ventures, LLC. Agency Negotiator: Marty Van Duyn Under Negotiations: Terms and Conditions for sale of property interests. Time entered closed session: 6:33 p.m. Time open session resumed: 7:01 p.m. Report Out of Closed Session by Mayor Gonzalez: None. 3. Presentation by Oyster Point Ventures, LLC regarding its Preliminary Concept Plan for property including 375-389 Oyster Point Boulevard ("Oyster Point Business Park") and property within the Oyster Point Marina Area. Representatives of the Shorenstein Company appeared to present a Concept Plan for the Oyster Point Marina. Todd Sklar of Shorenstein advised that Mayor Gonzalez and Councilman Addiego had accepted Shorenstein's invitation and visited a site at Mission Bay at which a building had been leased to Fibrogen. The buildings at the Mission Bay site were similar to what was being proposed at the Oyster Point Business Park. Paul Stein of Shorenstein provided a power point presentation on the Concept Plan. He began by noting that Shorenstein was committed to sustainable properties, including certified LEED Gold and better. Mr. Stein stated that in July 2008 Shorenstein acquired the 25 acre Oyster Point Business Park with the intent to redevelop the property as a Class A Life Sciences/Office Project. The plan would include new construction and removal of older buildings as leases expired. After Shorenstein acquired the Oyster Point Business Park, King Ventures approached it and offered to sell leaseholds in the Harbor District Area. Shorenstein then met with City staff to determine if it would be worthwhile to pursue acquisition of the leaseholds and assemblage of the two (2) properties. Mr. Stein next presented Shorenstein's vision for the (Jyster Point property. He opined the Ferry Terminal would be a significant addition that would contribute to the overall appeal of the area. Preliminary plans for the assembled properties included offices, retail and restaurant space, hotels, conference facilities and recreational spaces. It was estimated these new facilities would generate roughly 4.3 million/year for the general fund and redevelopment. Shorenstein planned to develop the Oyster Point Business Park using sustainable, Class A Architecture. The property near the proposed Ferry Terminal would be developed in a manner similar to Main Street in Tiburon. Fifteen (15) acres of space was available for the installation of recreational fields, SPECIAL REDEVELOPMENT AGENCY & CITY COUNCIL NOVEMBER 3, 2008 MINUTES PAGE 2 possibly to include soccer, walking and baseball fields. The landscape architect on the project was suggesting an attractive "row-style" planting that would serve as a wind barrier. The interior quads of the development would be landscaped, include furniture and be open to the public. Mr. Stein next discussed plans for phasing of the project, including road work and relocation of boat storage. Phasing would permit maintenance of access to the Marina during road construction. Mr. Stein then advised next steps included approval of a framework agreement and MOU, final approvals/entitlements and construction. Mayor Gonzalez thanked Shorenstein for the tour of the Mission Bay Fibrogen Site and stated he was impressed with the building. Councilman Addiego commented he was pleased he toured the building, because it permitted him to fully appreciate the artist's rendering of the plan for the Oyster Point Business Park. He questioned the estimated square footage of the Oyster Point Business Park plan. Dan Kingsley of Shorenstein advised the proposal was for 2 million square feet through transfer of development density. Mr. Stein advised Shorenstein would follow Planning's recommendations as to parking and was keenly interested in connecting to Caltrain shuttle services and allowing for bicycle access. Mayor Gonzalez commented on the artist's rendering of the Oyster Point Business Park and observed the tall building at the end of the Park. He expressed concern over protection of the foundation on this building. He also noted the City would need to review plans it had for the area and decide whether they meshed with Shorenstein's proposal. Mr. Kingsley responded the building would be deeply piled and this cost had already been taken into account. While these foundation issues were challenging, they were not insurmountable. Regarding the concept for the land, Mr. Kingsley advised Shorenstein was not attempting to unilaterally plan the peninsula, but rather to show the City it could provide uses that were in line with the City's hopes for the area. Mayor Pro Tem Matsumoto noted much of Shorenstein's presentation was based on the planned Ferry Terminal. She questioned the developer's plans in the event Ferry Service did not eventually come to South San Francisco. Mr. Kingsley stated he did not have an answer to the question. Assistant City Manager and Director of Economic and Community Development Van Duyn advised the City was the owner of all the land and harbor births. The property and births were under a master lease to the Harbor District for operation and management. As part of improvements necessary for Ferry Service, the births would be remade. These infrastructure related expenditures were best viewed as investments that would optimize value in the long run. SPECIAL REDEVELOPMENT AGENCY & CITY COUNCIL NOVEMBER 3, 2008 MINUTES PAGE 3 Mayor Pro Tem Matsumoto requested Shorenstein representatives to provide more detail on proposed phasing of the project. She further questioned the estimated 4.3 million in revenue to the City. Mr. Kingsley advised the primary utilities come in off of Oyster Point Blvd. Roadway construction would be part of the initial phase so as to avoid exposing utilities. Regarding revenue, 4.3 million to the City's funds was projected at ultimate build out. He noted that if Ferry Service was not secured, reconsideration of this estimate would be necessary. Mr. Sklar added the plan offered the benefit of flexibility depending upon the market and the City's ultimate land use plan. Councilman Addiego returned to the issue of phasing and requested greater clarification. Mr. Stein stated the plans for phasing would require demolishing the Inn at Oyster Point. If necessary, Shorenstein would purchase the hotel and operate it. Timing of the various project phases would depend on market forces within a time frame of roughly five (5) years. Mayor Pro Tem Matsumoto questioned whether the buildings were planned to be designed so as to accommodate stem cell companies. She stated she was not opposed to such companies, but had concerns over security related resources that might be required to control protests. Accordingly, if such companies were to be the focus o:f the development, Council may have to require more of the developer. Mr. Stein stated the plans were not quite that specific, but it was possible that a stem cell related company may occupy space in the Business Park. Mayor Pro Tem Matsumoto questioned plans for recruiting businesses to occupy the space. Mr. Stein responded Shorenstein was confident the Bay area would remain as a center of Biotech Technology and that South San Francisco was the number one (1) location in this geographic sector, particularly given its centralized location in relation to Stanford, UCSF and UC Berkley. Councilman Addiego questioned whether Fibrogen would have been interested in this proposed office space if it had been ready to go. Mr. Stein responded the Fibrogen situation was somewhat unique in that a major part of its decision regarding location was tied to the visibility of the building. Mayor Pro Tem Matsumoto questioned how many employees were expected through implementation of Phase I . She further questioned the timing of Phase 1. Mr. Stein estimated Phase 1 of the project would accommodate space for 900 employees. The project could be up and running in as soon as two (2) years, but more likely three (3) to five (5) years. SPECIAL REDEVELOPMENT AGENCY & CITY COUNCIL NOVEMBER 3, 2008 MINUTES PAGE 4 Councilman Mullin opined the developer presented an exciting opportunity. He further questioned whether buildings planned to house Biotech Companies had specific design requirements. Mr. Stein responded Biotech buildings are generally comprised of taller floor to ceiling heights and robust infrastructure. The buildings incorporate very flexible spaces and accommodate most uses that could be conceived of within the confines of the General Plan. Councilman Mullin questioned whether the proposed buildings could conceivably accommodate Green Technology Companies. Mr. Kingsley responded the development was planned to include a flexible approach similar to the approach incorporated at Mission Bay. Councilman Addiego stated it was interesting that the tallest structure was on the water. He observed other developments in the area had been designed to create a terraced back look and refrained from putting height directly on the water. Given these considerations, he questioned how the developer would sell its proposal to the Planning Commission. Mr. Kingsley advised a scaled back look could be accommodated, but stated Shorenstein's proposal could be described as representative of the future in South San Francisco. Assistant City Manager and Director of Economic and Community Development Van Duyn pointed out the project would present opportunities for additional incremental funds. Mayor Gonzalez opined the Ferry Service would eventually come to South San Francisco. He stated it would take a lot of work to get it here and the service would have to be well marketed but it would ultimately be a success, similar to what the City experienced with BART. He further stated the proposed development was the start of something big for the community. Mr. Kingsley stated Shorenstein's desire to work cooperatively with the City so that the final project would be a reflection of both the City's and Shorenstein's visions. 4. Closed Session: Conference with Legal Counsel -Anticipated Litigation (Pursuant to Government Code Section 54956.9(c)) Initiation of Litigation: Two Cases. Recess: 8:55 p.m. Closed Session began: 9:00 p.m. Open Session resumed: 9:24 p.m. Report out of Closed Session by Mayor Gonzalez: Direction was given. SPECIAL REDEVELOPMENT AGENCY & CITY COUNCIL NOVEMBER 3, 2008 MINUTES PAGE 5 5. Adjournment of City Council Meeting and Redevelopment Meeting. Being no further business, Mayor/Chairman Gonzalez adjourned the meeting at 9:24 p.m. Submitted by: ~:' ,,,I~~r•ISta •~rtine ~~`"~'~~ ~ Clry O~ SOUt~l S I~ Clerk, Redevel ,'arson, City Clerk Francisco nent Agency Approved: Karyl M~ tsumoto, Mayor Ciry ol~ South San Francisco Chairwoman, Redevelopment. Agency SPECIAL REDEVELOPMENT AGENCY & CITY COUNCIL NOVEMBER 3, 2008 MINUTES PAGE 6