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HomeMy WebLinkAboutRDA Minutes 2011-02-23 (60 ,,s4 4 „ SPECIAL MEETING = MINUTES , O tt J . _ REDEVELOPMENT AGENCY c ' � �� A 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: MUNICIPAL SERVICES BUILDING COMMUNITY ROOM 33 ARROYO DRIVE WEDNESDAY, FEBRUARY 23, 2011 6:30 P.M. Purpose of the meeting: 1. Call to Order. 2. Roll Call. 3. Agenda Review. 4. Public Comments — comments are limited to items on the Special Meeting Agenda. 5. Resolution approving an Owner Participation and Loan Agreement with GIFFRA ENTERPRISES, LLC, approving the provision of a loan for the Rehabilitation of a Moderate - Income Residential/Mixed -use project at 226 -238 Grand Avenue and authorizing the execution of documents in connection with such financing. Redevelopment Consultant, Armando Sanchez presented the staff report. He stated the agreement was originally going to be presented one (1) year ago but several issues needed to be resolved. The Housing Subcommittee has reviewed it and recommended it be brought before the Board. Since then, there have been no changes. Owner, Gregg Giffra was present to answer questions. The development included 10 rental units for moderate income residents, all were two bedroom, two bath units with modern amenities intended to attract East of 101 workers. The loan starts with two (2) year no payment, no interest clause, and after it starts ramping up resulting in full payment. Boardmember Matsumoto wanted to ensure tenants would meet financial requirements and questioned if the number of families per unit could be restricted. Mr. Sanchez stated it would be a violation of fair housing to do so, but owner would make sure units were not overcrowded. Income requirements would be targeted for moderate incomes, 90% to 120% of the median income. Boardmember Matsumoto noted her approval due to her desire to encourage and recruit residency for East of 101 workers who had the discretionary income available to support the local businesses. Mr. Sanchez felt the project would do just that, as units and amenities were very attractive. The design of a two (2) bedroom, two (2) bath was good set -up for roommate situations, a profile which most east of 101 workers fit as they are typically young and without family. Lastly, Boardmember Matsumoto asked if the Board would have any say over the retail, as she wanted to ensure a higher end establishment as opposed to the dollar store that was there before. Mr. Sanchez noted with respect to retail, Buon Gusto would take up most of the space, but once the building was improved, it would attract higher end establishments. City Attorney Mattas stated the City could not dictate tenants but staff could work with property owner to put Council's vision into play. It was recommended to modify the agreement for approval between the City Manager and owner as to the determination of tenants. The Agency has to give direction to modification before documents were executed but with respect to what's going on with RDA in Sacramento, they may want to act tonight. Boardmember Addiego felt the market would dictate the tenants who would apply and asked the current rental market as that would likely tell what type of tenant would be attracted. Mr. Sanchez stated current rental rates were between $1800 up to $2500. Boardmember Addiego felt that was a bit higher than what was the norm on Grand. Boardmember Matsumoto noted retail tenants and her main concern. Boardmember Addiego understood her concern but noted the time constraint was resonating with him and wanted to encourage the agency to move ahead. Boardmember Matsumoto wanted to be sure moving forward would not preclude the Agency from pursuing this issue. Attorney Mattas stated the Agency could try to include it in the direction given this evening. Boardmember Gonzalez concurred with Boardmember Matsumoto on the retail aspect as he was not happy with some of the current retailers in that area. Chairman Mullin asked about the construction timeline. Mr. Sanchez noted the project was on the cusp of getting permits and final bid from the contractor. Property owner Gregg Giffra approximated a one (1) year start time for construction and gave the Board his assurance that he would look for upscale retail shops. Mr. Sanchez noted that due to the payment schedule of the loan, it was in Mr. Giffra's best interest to have project complete before payments begin. Motion — Boardmember Gonzalez/ Second — Vice Chairman Garbarino: to approve resolution No. 6 -2011. Unanimously approved by voice vote. Closed Session Time in — 6:53 p.m. Time out — 7:05 p.m. Report out of closed session: Direction given. No reportable action taken. 6. CLOSED SESSION: Real Property Negotiations Pursuant to Government Code Section 54956.8 Agency Negotiator: Marty Van Duyn Related to: SPECIAL REDEVELOPMENT AGENCY MEETING FEBRUARY 23, 2011 MINUTES PAGE 2 Address Property Owner 315, 401, 411,421 Airport Blvd., David Gonzales 216 Miller, 405 Cypress 204 Miller (Drycleaner) Eliades Mary Trust 201 Cypress Ave Joseph Gilio 206 Baden Dolores Calegari 210 Baden Welch Family Partnership 950 Linden 15 SSFDEV LLC 942 Linden Andy Yue 200, 206, 210 Airport William Borba 221 Airport David Ratto 223 -25 Grand Ave. O. Romo 505 Cypress Ave 505 Cypresss Ave LLC 227 Hillside Ave Basil Cavalieri 249 Hillside Ave K.J. Song APN #011 - 324 -200 Cal Water Service 942 Antoinette Bruce Bailey 950 Antoinette Samir Habash 41 Chestnut Ave. Elmo Fatica 45 Chestnut Ave Niki Tam 998 El Camino Real Louise Petrocchi 7. Closed Session: Real Property Negotiations Pursuant to Government Code Section 54956.8 Agency Negotiator: Marty Van Duyn Related to: Address Property Owner 340 Grand Avenue St. Vincent De Paul Item not heard. Being no further business, Chairman Mullin adjourned the meeting at 7:05 p.m. Submitted: Approved: 3 J 8 c ti etArtA\" Anna M. Brown Kevin Mullin Deputy City Clerk, Redevelopment Agency Chairman, City of South San Francisco City of South San Francisco SPECIAL REDEVELOPMENT AGENCY MEETING FEBRUARY 23, 2011 MINUTES PAGE 3