HomeMy WebLinkAbout2011-01-26 e-packetSPECIAL MEI 'TING
~o.~zx s,~i,~ REDEVELOPMENT ACxENCY
OF THE
o
~- ~ CITY OF SOUTH SAN FRANCISCO
`' P.O. Box 7I 1 (City Hall, 400 Grand Avenue}
`~Lrxo~~~°` South San Francisco, California 94083
Meeting to be held at:
MUNICII'AI, Sh~2VICI:S BUl[LDING
COMMUNITY ROC>Nt
33 ARROYO DRIVE
SOU'1'H SAN FI2ANCISC;O, CA
WEDNESDAY, JANUARY' 2:6, 2011
6:55 P.M.
NOTICE IS HEREBY GIVEN, pursuant to Section 54056 of the Government Code of the
State of- California, the Redevelopment Agency of the City of South San Francisco will hold a
Special Meeting on. Wednesday, the 26`'' day of :lanuary, :?Ol 1, at 6:55 p.m., in the Municipal
Services Building, Community Room, 33 Arroyo Drive, South San Francisco, California.
Ptupose of the meeting:
1. Call to Order.
2. Roll Call.
3. Agenda Review.
4. Public Comments -comments are limited to ite~m~ on the Special Meeting
Agenda.
5. Resolution Approving an amendment to extend, the Memaranduzn of
Understanding among the City of South San Francisco, Redevelopment Agency of
the City of South San Francisco and the San Mateo County Harbor District fox
Potential Development of the Oyster Point Marina and Oyster Point Business
Park.
6. Adjournment.
~~/
.--
C..
rty Clerk,{1~#~~outh San Francisco
~. y
J O
~~LiFOt~°` ff
to e~ort
DATE: January 26, 2011
TO: The Honorable Mayor and City Council
The Honorable Chair and Redevelopment Agency Boazd
FROM: Marry Van Duyn, Assistant City Manager
SUBJECT: RESOLUTIONS APPROVING AN AMENDMENT TO EXTEND THE
MEMORANDUM OF UNDERSTANDING AMONG THE CITY OF SOUTH SAN
FRANCISCO, SOUTH SAN FRANCISCO REDEVELOPMENT AGENCY AND
SAN MATED COUNTY HARBOR DISTRICT FOR POTENTIAL DEVELOPMENT
OF THE OYSTER POINT MARINA AND OYSTER POINT BUSINESS PARK
RECOMMENDATION
Staff recommends that the City Council and Agency Board each approve the attached
Resolutions, approving an amendment to eztend the Memorandum of Understanding among the
City of South San Francisco, the South San Francisco Redevelopment Agency and the San Mateo
County Harbor District.
BACKGROUND & DISCUSSION
The City owns property located at the Oyster Point Marina. Oyster Point Ventures LLC is a joint
venture between Shorenstein Properties and SKS Investments :LLC ("S/SKS"). S/SKS purchased the
Oyster Point Business Pazk, which is adjacent to the Oyster Point Marina, for the purpose of
developing the Oyster Point Business Park into a modern research and development life sciences
campus. In addition, S/SKS has acquired the King Ventures leasehold interest in the City's property.
In collaboration with the City, S/SKS has proposed apublic;-private development approach at the
Oyster Point Marina and the Oyster Point Business Park., that would result in an integrated
development of a modern life sciences campus, with research and development and/or office buildings,
commercial development located near and oriented to the proposed public ferry terminal, continued
hazbor and marina uses, and enhanced public open/recreati.on space amenities (collectively, the
"Project").
The City and the San Mateo County Harbor District ("District") have established a joint powers
authority that governs the development, operations, and maintenance of the Oyster Point Marina.
Property, including management of the Oyster Point Marina by the District.
Staff Report
Subject: Harbor District MOU Amendment
Page 2 of 3
In May, 2009, the City Council and Redevelopment Agency each approved a Memorandum of
Understanding ("MOU") with the District to establish anon-binding mutual understanding among the
City, Redevelopment Agency and the District regarding the potential conveyance of lease interests and
portions of the area commonly known as the Marina Property, and the potential development an
office/research and development life sciences campus, commercial development, and substantial public
amenities for the Project. The MOU provided in Section 4 that its effective term ("Term") would
commence on the specified Effective Date of May 27, 2009, and would terminate five hundred forty
(540) days thereafter, unless extended or earlier terminated as provided in the MOU. The MOU further
specified that the Parties may extend the Term for a maximum of three (3) additional thirty (30)
calendar day terms. In accordance with the MOU, on December 1, 2010, the District approved a sixty
(60) day extension of the MOU, which extension was subsequently approved administratively by the
City and Agency, such that the MOU is now set to expire on January 17, 2011.
Since the MOU was approved in May 2009, staff and S/SKS :have made significant progress towards
finalizing draft land use entitlements for the City Council's and Redevelopment Agency Board's
consideration. Nearly all of the environmental analyses that will be required for the Environmental
Impact Report are now complete. However, in order to complete environmental review and obtain
required governmental approvals and entitlements for the proposed Project, all parties have determined
that it is necessary to extend the Term beyond that set forth in the MOU, including the additional 30-
day extensions specified in the MOU.
The attached Resolutions propose an amendment to Section 4 of the MOU ("First Amendment"). If
approved, the First Amendment would extend the effective period of the MOU to terminate at the same
time as the separate memorandum of understanding between the City, Redevelopment Agency, and
S/SKS ("S/SKS MOU"), on September 30, 2011, with the option to extend for up to three additional
thirty-day periods, as approved in the original MOU. The First Amendment would not affect any other
sections, terms, or conditions of the MOU, which staff and S/SKS agree would all remain in full force
and effect.
ENVIRONMENTAL IMPACT
Approval of the original MOU did not authorize the construction of the proposed Project or any other
construction, and did not result in either a direct or reasonably foreseeable indirect physical change in
the environment; rather, the MOU only committed the parties to certain obligations related to the
further planning and negotiation of the property exchanges and development of the Project. Likewise,
approval of the First Amendment would not authorize any construction of the proposed Project or any
other construction, and would not result in either a direct or reasonably foreseeable indirect physical
change in the environment. Approval of the First Amendment would simply extend the term of the
existing MOU. No construction will be authorized until (i) C.ity, in conjunction with RDA, has
prepazed, certified as adequate and approved an Environmental impact Report under CEQA; (ii) City
has approved the land use entitlements required for the Project; and (iii) any agreements or regulatory
permits required by any other applicable regulatory agencies have been obtained. Accordingly, no
further environmental review is required for approval of the First Amendment.
Staff Report
Subject: Harbor District MOU Amendment
Page 3 of 3
FISCAL IMPACT
Pursuant to the S/SKS MOU, S/SKS will pay for or reimburse the City and Redevelopment Agency for
all costs related to the negotiations of any binding agreements, analysis under CEQA of the Project and
all planning activities. The proposed First Amendment extending the term of the MOU with the Harbor
District will not affect this obligation.
CONCLUSION
Staff recommends that the City Council and Agency Boazd each approve the attached Resolutions,
approving an amendment to extend the Memorandum of Understanding among the City of South San
Francisco, South San Francisco Redevelopment Agency and San Mateo County Hazbor District.
By:
Marty Van Duyn
Assistant City Manager
Approved: a
~" arry M. Nage
City Manager
Enclosures: City Resolution - Hazbor District MOU Extension
Redevelopment Agency Resolution -Harbor District MOU Extension
1560469.1
RESOLUTION NO.
CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO,
STATE OF CALIFORNIA
A RESOLUTION APPROVING AN AMENDMENT TO
EXTEND THE MEMORANDUM OF UNDERSTANDING
AMONG THE CITY OF SOUTH SAN FRANCISCO,
REDEVELOPMENT AGENCY OF THE CITY OF SOUTH
SAN FRANCISCO AND THE SAN MATED COUNTY
HARBOR DISTRICT FOR POTENTIAL DEVELOPMENT
OF THE OYSTER POINT MARINA AND OYSTER POINT
BUSINESS PARK
WHEREAS, the City Council of the City of South San Francisco ("City") has
adopted a Redevelopment Plan for the Downtown/Central Project Area (as amended, the
"Project Area"); and,
WHEREAS, the City is the owner of certain real property located within the
Project Area and commonly known as the Oyster Point Marina ("Marina Property"); and,
WHEREAS, the City and the San Mateo County Harbor District ("District") have
established a joint powers authority that governs the development, operations, and
maintenance of the Oyster Point Marina Property, including management of the Oyster
Point Marina by the District; and,
WHEREAS, Oyster Point Ventures LLC, a joint venture between Shorenstein
Properties and SKS Investments LLC ("S/SKS"), purchased the Oyster Point Business
Park, which is adjacent to the Oyster Point Marina, for the purpose of developing the
Oyster Point Business Park into a modern research and development life sciences
campus; and,
WHEREAS, in collaboration with the City and the South San Francisco
Redevelopment Agency, S/SKS has proposed apublic-private development approach that
would result in an integrated development of the Oyster Point Marina and the Oyster
Point Business Park ("Project"), which requires collaboration amongst the City, the
District, the Agency and S/SKS; and,
WHEREAS, in May 2009 the City Council and. Redevelopment Agency Board
approved anon-binding Memorandum of Understanding ("MOU"), that establishes a
mutual understanding among the City, the Agency and th.e District regarding the potential
conveyance of lease interests and portions of the area commonly known as the Marina
Property, and the potential development an office/research and development life sciences
campus, commercial development, and substantial public amenities for the Project; and,
1
WHEREAS, the MOU provided in Section 4 that its effective term ("Term")
would commence on the specified Effective Date of May 27, 2009, and would terminate
five hundred forty (540) days thereafter, unless extended or earlier terminated as
provided in the MOU. The MOU further specified that the Parties may extend the Term
for a maximum of three (3) additional thirty (30) calendar day terms; and,
WHEREAS, in accordance with the MOU, on December 1, 2010, the District
approved a sixty (60) day extension of the MOU, which extension was subsequently
approved administratively by the City and Agency, such that the MOU is now set to
expire on January 17, 2011; and,
WHEREAS, in order to complete environmental review and obtain required
governmental approvals and entitlements for the proposed :Project, the Parties have
determined that it is necessary to extend the Term beyond that set forth in the MOU,
including the three additiona130-day extensions specified in the MOU; and,
WHEREAS, the City, the Agency, and the District now all wish to extend the
term of the MOU, as described in the proposed First Amendment, attached to this
Resolution as Attachment 1; and
WHEREAS, the First Amendment to the MOU would extend the effective period
of the MOU, but would not change any other sections, terms, or conditions of the MOU,
which would remain in full force and effect; and
WHEREAS, the MOU is a preliminary, non-binding agreement, and neither the
MOU nor the First Amendment thereto, commits the City to a definite course of action or
forecloses consideration of alternatives; and certification of environmental review
pursuant to the California Environmental Quality Act (CEQA) will be required prior
approval of any land use entitlements for the Project; therefore, execution of this First
Amendment to the MOU is not an "approval" of a "project," as those terms are defined in
CEQA.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
South San Francisco hereby:
(1) Finds and determines that the recitals are true and correct;
(2) Approves the First Amendment to the MOU in substantially the same
form attached hereto as Attachment 1;
(3) Authorizes the City Manager to enter into and execute the First
Amendment to the MOU in substantially the same form as attached hereto as Attachment
1, and with any revisions, amendments, or modifications deemed necessary by the City
Attorney to carry out the intent of this Resolution and which do not materially or
substantially increase the City's obligations thereunder; and
2
(4) Directs the members, employees, officers, and agents of the City to jointly
and severally do any and all things and to execute and deliver any and all other
agreements deemed necessary to carry out, give effect to, and comply with the terms and
intent of this Resolution and the First Amendment to the MOU as approved by this
Resolution so long as such agreements do not materially or substantially increase the
City's obligations with respect to the First Amendment to the MOU.
I hereby certify that the foregoing Resolution was regularly introduced and
adopted by the City Council of the City of South San Francisco at a regular meeting held
on the _ day of 2010 by the following vote:
AYES
NOES:
ABSTAIN:
ABSENT:
ATTEST:_
City Clerk
1559967.1
3
RESOLUTION NO. __
REDEVELOPMENT AGENCY BOARD, CITY OF SOUTH SAN FRANCISCO,
STATE OF CALIFORNIA
A RESOLUTION APPROVING AN AMENDMENT TO
EXTEND THE MEMORANDUM OF UNDERSTANDING
AMONG THE CITY OF SOUTH SAN FRANCISCO,
REDEVELOPMENT AGENCY OF THE CITY OF SOUTH
SAN FRANCISCO AND THE SAN MATED COUNTY
HARBOR DISTRICT FOR POTENTIAL DEVELOPMENT
OF THE OYSTER POINT MARINA AND OYSTER POINT
BUSINESS PARK
WHEREAS, the Redevelopment Agency of the City of South San Francisco
("Agency") is a redevelopment agency formed, existing and exercising its powers
pursuant to the provisions the Community Redevelopment Law of the State of California
(Health and Safety Code Section 33000 et seq.); and,
WHEREAS, the City Council of the City of South San Francisco ("City") has
adopted a Redevelopment Plan for the Downtown/Central Project Area (as amended, the
"Project Area"); and,
WHEREAS, the City is the owner of certain real property located within the
Project Area and commonly known as the Oyster Point Marina ("Marina Property"); and,
WHEREAS, the City and the San Mateo County Harbor District ("District") have
established a joint powers authority that governs the development, operations, and
maintenance of the Oyster Point Marina Property, including management of the Oyster
Point Marina by the District; and,
WHEREAS, Oyster Point Ventures LLC, a joint venture between Shorenstein
Properties and SKS Investments LLC ("S/SKS"), purchased the Oyster Point Business
Park, which is adjacent to the Oyster Point Marina, for the purpose of developing the
Oyster Point Business Park into a modern research and development life sciences
campus; and,
WHEREAS, in collaboration with the City and the Agency, S/SKS has proposed a
public-private development approach that would result in an integrated development of
the Oyster Point Marina and the Oyster Point Business Park ("Project"), which requires
collaboration amongst the City, the District, the Agency and S/SKS; and,
WHEREAS, in May 2009 the City Council and Redevelopment Agency Board
approved anon-binding Memorandum of Understanding ("MOU"), that establishes a
mutual understanding among the City, the Agency and the District regarding the potential
conveyance of lease interests and portions of the area commonly known as the Marina
1
Property, and the potential development anoffice/research and development life sciences
campus, commercial development, and substantial public amenities for the Project; and,
WHEREAS, the MOU provided in Section 4 that its effective term ("Term")
would commence on the specified Effective Date of May 27, 2009, and would terminate
five hundred forty (540) days thereafter, unless extended. or earlier terminated as
provided in the MOU; and,
WHEREAS, in accordance with the MOU, on December 1, 2010, the District
approved a sixty (60) day extension of the MOU, which extension was subsequently
approved administratively by the City and the Agency, such that the MOU is now set to
expire on January 17, 2011; and,
WHEREAS, in order to complete environmental review and obtain required
governmental approvals and entitlements for the proposed Project, the City, the Agency,
and the District have determined that it is necessary to extend the Term beyond that set
forth in the MOU; and,
WHEREAS, the City, the Agency, and the District now all wish to extend the
Term of the MOU, as described in the proposed First Amendment, attached to this
Resolution as Attachment 1; and
WHEREAS, the First Amendment to the MOU would extend the effective period
of the MOU, but would not change any other sections, terms, or conditions of the MOU,
which would remain in full force and effect; and
WHEREAS, the MOU is a preliminary, non-binding agreement, and neither the
MOU nor the First Amendment thereto, commits the City to a definite course of action or
forecloses consideration of alternatives; and certification of environmental review
pursuant to the California Environmental Quality Act (CEQA) will be required prior
approval of any land use entitlements for the Project; therefore, execution of this First
Amendment to the MOU is not an "approval" of a "project," as those terms are defined in
CEQA.
NOW, THEREFORE, BE IT RESOLVED that the Redevelopment Agency Board
of the City of South San Francisco hereby:
(1) Finds and determines that the recitals are true and correct;
(2) Approves the First Amendment to the :MOU in substantially the same
form attached hereto as Attachment l;
(3) Authorizes the Executive Director to enter into and execute the First
Amendment to the MOU in substantially the same form as attached hereto as Attachment
1, and with any revisions, amendments, or modifications deemed necessary by counsel to
the Agency to carry out the intent of this Resolution and which do not materially or
substantially increase the Agency's obligations thereunder; and
2
(4) Directs the members, employees, officers, and agents of the Agency to
jointly and severally do any and all things and to execute and deliver any and all other
agreements deemed necessary to carry out, give effect to, and comply with the terms and
intent of this Resolution and the First Amendment to the MOU as approved by this
Resolution so long as such agreements do not materially or substantially increase the
Agency's obligations with respect to the First Amendment to the MOU.
I hereby certify that the foregoing Resolution was regularly introduced and
adopted by the Redevelopment Agency Board of the City of South San Francisco at a
regular meeting held on the day of 2010 by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
1559977.1
ATTEST:
City Clerk
3
FIRST AMENDMENT TO MEMORANDUM OF UNDERSTANDING
(Harbor District -Oyster Point Marina)
THIS FIRST AMENDMENT TO MEMORANDUM OF UNDERSTANDING (this "First
Amendment"), dated and made effective as of , 20_ (the "Effective Date") is
entered into by and among the City of South San Francisco, a California municipal corporation
("City"), South San Francisco Redevelopment Agency, a public body, corporate and politic
("Agency") and the San Mateo County Harbor District, a political subdivision of the State of
California ("District"). City, Agency, and District are hereinafter collectively referred to as the
"Parties."
RECITALS
A. The Parties previously entered a Memorandum of Understanding ("MOU"),
effective as of May 27, 2009, setting forth preliminary points of agreement among the Parties
regarding the potential conveyance of lease interests and portions of the area commonly known as
the Oyster Point Marina ("Marina Property"), for the potential development anoffice/research and
development life sciences campus, commercial development (including retail, restaurants, and hotel
uses), and substantial public amenities located on the Oyster Point Business Park ("Business
Park") and the Marina Property ("Project").
B. The MOU provided in Section 4 that its effective term ("Term") would commence
on the specified Effective Date of May 27, 2009, and would terminate five hundred forty (540) days
thereafter, unless extended or earlier terminated as provided in the MOU. The MOU further
specified that the Parties may extend the Term for a maximum of three (3) additional thirty (30)
calendar day terms.
C. In accordance with the MOU, on December 1, 2010, the District approved a sixty
(60) day extension of the MOU, which extension was subsequently approved by the City and
Agency, such that the MOU is now set to expire on January 17, 2011.
D. In order to complete environmental review and obtain required governmental
approvals and entitlements for the proposed Project, the Parties have determined that it is necessary
to extend the Term beyond that set forth in the MOU, including the three additiona130-day
extensions specified in the MOU.
NOW THEREFORE, in consideration of the mutual covenants and agreements set forth in
the MOU and hereinafter, and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the Parties agree as follows:
AGREEMENT
Section 1 MOU in Effect. The Parties acknowledge and agree that the MOU remains in full
force and effect.
Section 2 Section 4 Amended. Section 4 of the MOU is hereby amended to read in full as
follows:
sf-2884308
Section 4 Term. The term of this MOU (the "Term") shall commence on
the Effective Date, and shall terminate on September 30, 2011, unless extended or
earlier terminated as provided herein. The Term maybe extended for up to a
maximum of three (3) additional thirty (30) calendar day terms upon the mutual
written agreement of District acting through and in the discretion of its General
Manager, the Agency acting through and in the discretion of its Executive
Director and the City acting through and in the discretion of its City Manager, or
maybe extended as otherwise mutually agreed upon by the Parties.
Section 3 Other Terms and Conditions to Remain in Effect. All other provisions, terms,
and conditions of the MOU not expressly amended by this First Amendment shall remain in full
force and effect.
IN WITNESS WHEREOF, the Parties have executed this First Amendment effective as of
the date first written above.
CITY
CITY OF SOUTH SAN FRANCISCO,
a municipal corporation
By:
Name:
City Manager
ATTEST:
By:
City Clerk
APPROVED AS TO FORM:
By:
City Attorney
AGENCY
REDEVELOPMENT AGENCY OF THE
CITY OF SOUTH SAN FRANCISCO,
a public body, corporate and politic
By:_
Name:
Executive Director
ATTEST:
By:
Agency Secretary
APPROVED AS TO FORM:
By:
Agency General Counsel
sf-2884308 2
DISTRICT
SAN MATEO COUNTY HARBOR
DISTRICT,
apolitical subdivision of the State of California
By:
Name:
General Manager
ATTEST:
By
District Secretary
APPROVED AS TO FORM:
By:
District Counsel
sf-2884308 3