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HomeMy WebLinkAboutRDA Minutes 1988-08-10 Chairman Jack Drago M I N U T E S Boardmembers: Mark N. Addiego Redevelopment Agency Richard A. Halley Gus Nicolopulos Municipal Services Building Roberta Cerri Teglia Community Room August 10, 1988 AGENDA ACTION TAKEN CALL TO ORDER: (Cassette No. 1) 7:10 p.m. Chairman Drago presiding. ROLL CALL: Boardmembers present: Addiego, Haffey, Nicolopulos, Teglia and Drago. Boardmembers absent: None. AGENDA REVIEW AGENDA REVIEW Executive Director Lewis stated that he had nothing to add or delete from the Agenda. He stated that due to a conflict the Agency Counsel and Co-counsel were unable to attend the meeting. --AGENDA AGENDA 1. Motion to approve the Minutes of the M/S Teglia/Haffey - To approve the Regular Meeting of 6/22/88, and the Minutes of the Regular Meeting of Regular Meeting of 7/27/88. 6/22/88, and the Regular Meeting of 7/27/88. Carried by unanimous voice vote. 2. Motion to approve the Regular Bills M/S Haffey/Teglia - To approve the of 7/27/88 and 8/10/88. ~¥~ Regular Bills of 7/27/88 in the amount of $243,556.69, and the Regular Bills of 8/10/88 in the amount of $15,000.00 for a total amount of $258,556.69. Carried by unanimous voice vote. 3. Staff Report 8/10/88 recommending by Assistant Director/Secretary Smith stated Motion to deny Tentative Parcel Map the recommendation was to deny Tentative PM-88-256 resubdividing the two Parcel Map based on the findings in the parcels on the east side of Gateway staff report, i.e., that the tentative Blvd. at Corporate Drive (Homart map was not consistent with the purpose Development applicant) ~ ' , . intent and stands of the Plan and the City's Zoning Ordinance; and the design and improvements are in conflict with existing easements for roadways and parking. She proceeded to read the staff report (which is on permanent file in the Clerk's Office). 8110188 Page 1 I I AGENDA ACTION TAKEN 3. Staff Report - Continued. She concluded by saying that a condition of the Precise Plan governing Embassy Suites, the sharing of the parking area to the east of the proposed WDT shopping center site by more than Embassy Suites and the shopping center is not feasible; the 27 spaces shown on the site plan for Embassy Suites are needed for that hotel and for this shopping center use. Mr. Mike McNeill, Homart Development Co., stated that he was not the applicant, who might be at City Hall looking for the meeting room, but hoped to anticipate a few questions on the Precise Plan and on the purpose of the approval of this Tentative Parcel Map. He stated that the reason was marketability of the property for present and future clients to have retail establishments in the Gateway instead of having to go to neighboring cities. Executive Director Lewis questioned if Mr. McNeill was directing his comments to the Tentative Parcel Map or to the Precise Plan, and stated that it appeared that Mr. McNeill was stalling for time so that the applicant could appear at the meeting. Vice Chairman Teglia stated that she would move for denial of the Tentative Parcel Map. Boardmember Haffey stated that Mr. McNeill's comments should be restricted to the agenda item being considered. Executive Director Lewis stated that staff was recommending denial of the Tentative Parcel Map. Mr. McNeill stated that the Tentative Parcel Map was proposed to create two parcels from one existing parcel; one for the WDT sale and the second for an undetermined use at a later date. He stated that Homart felt there was benefit both to the City and Homart to create an 8/10/88 Page 2 AGENDA ACTION TAKEN 3. Staff Report - Continued. economic unit that would add greater value to the property by possibly incor- porating the new parcel as a future part of the WDT retail center or to build a small office building for a special use. He stated that one portion of the lot was encumbered by a non-exclusive parking easement for Embassy Suites, and that this portion of the lot provided no financial benefit to the City or to Homart Development Co. He continued, because of the inefficiencies of land use on a curved private road, the land would otherwise be used for parking or landscaping only, with minimum financial gain. He stated that the new parcel would sup- port a 4,000 square foot retail building and would continue to accommodate the parking required for Embassy Suites, and a 3,000 square foot restaurant that would provide property and sales tax revenue to the City. He stated that Homart was not interested in changing the character of the project, but only its marketability in that they had not been able to find a client to take over the entire parcel. He stated that most of the streets in the Gateway were straight, not curving, and the only one that curves is Gateway Boulevard which had been designed over eight years ago. He stated that he felt that staff's con- cern was the introduction of fast food, which Homart will not petition for fast food and would be happy to incorporate that into any kind of a document the City chose. Discussion followed: that WDT was only interested in their original project area; the realignment of Corporate Drive to create a saleable parcel; that nego- tiations on the occupancy of the parcel were really between Homart and WDT; the existing easements; the twenty-four parking spaces on the site; Councilman 8/10/88 Page 3 A G E N D A A C T I O N T A K E N 0230 .. 3. Staff Report - Continued. Nicolopulos was concerned about the suggested changes to the original approved plan executed eight years ago, and demanded quality in the project; Homart's reasons for changing the con- figuration of the street; Councilman Nicolopulos felt that Homart should be allowed to straighten the street; that staff had concern over Homart's future plans, and until known could not allow the lot to be subdivided; concern over not seeing the fruition of plans made eight years ago; that there were two easements for egress and ingress to get to the rear parking lot that would be extended if this item was acted upon; Mayor concerned over subdividing the par- cels piecemeal which had not been the agreed plan; that if Homart could fi nd a large developer they would not want to subdivide the parcels; that Homart had made a commitment and the City had complete control over any kind of business going into the Gateway; that only a fine dinner house restaurant would .... go into the project; that Homart did not have a hidden agenda; that WDT was only interested in a portion of the parcel; that at a future date the road could be reconfi§ured, and did not need to be done at this time; that the realignment of the road did not affect WDT; transferring the easement to a newly created lot, etc. Mr. Richard Dewey, WDT, related: that the current site plan was one lot, and the plan in front of Council proposed a lot split with a tail; that Embassy Suites had a non-exclusive easement, and did not have control of the site; that the easement was to provide parking for the meeting facilities and the over flow. He stated that what was being proposed was to straighten the road and create a one acre piece for a fast food use - which was not acceptable to the Council. He stated that the acre could also be used as a free standing bank building which would be a benefit to the project. He stated that the realignment would 8/10/88 Page 4 AGENDA ACTION TAKEN 0231 -- 3. Staff Report - Continued. generate a parcel that would accommodate a 5,000-6,000 sq. foot building with adjacent parking. He stated that the Agency had control over any use in the project, and should not be concerned about a fast food use being included. M/S Haffey/Teglia - To deny Tentative Parcel Map PM-88-256. Councilman Addie§o stated that the Developer should have the tools to enhance the project - such as straightening Corporate Drive. Councilman Nicolopulos stated that the Genentech parcel had been sold, yet it was supposed to be developed. Motion and Second failed, Nicolopulos, Addiego and Drago voted no. M/S Nicolopulos/Addiego - To approve - Tentative Parcel Map PM-88-256. Carried by majority voice vote, Haffey and Teglia voted no. 4. Public Hearing - To consider Mayor Drago opened the Public Hearing. Variance (V-88-304) from South San Francisco Municipal Code Section Assistant Director/Secretary Smith read 20.57.220B to allow parking within the staff report (which is on permanent 20 feet of a building in the Gateway file in the Clerk's Office). She stated Specific Plan Zone District for that approval was needed on the variance property at 108-148 Corporate Drive. due to parking requirements, and that if Security Pacific moved from the site Staff Report 8/10/88 recommending: Special Condition No. 8 should be added 1) Open the Public Hearing and hear to the approval of Precise Plan No. testimony; 2) Close the Public 88-15. Hearing; 3) Motion to approve Precise Plan No. 88-15 and Variance Mayor Drago spoke of the concerns cited V-88-304 for 108-148 Corporate ~qa~ in Mr. Dewey's letter of 8/5/88: require- Drive. ment for an $8.23 per sq. ft. contribu- tion for the Oyster Point Overcrossing Fee, when the office towers at the Gateway contributed approximately $2.00 per sq. ft. of building; if the City reduces or waives the Oyster Point Overcrossing Fee, WDT shall pay only the 8/10/88 Page 5 .... 4. Staff Report - Continued. reduced amount so required; if the fee is required, WDT shall secure their project in the form of a letter of credit; should Security Pacific remove the existing building and provided the set-back limi- tations are observed, WDT shall have the right to extend their building fronting Gateway Blvd. with the customary con- ditions that the additional area has suf- ficient parking and the elevations are the same as the project as approved. Discussion followed: whether the new development should pay fees for an existing building; whether the Agency had to act on the letter of credit at this time; that the WDT letter had asked for inclusion of conditions; that the Agency did not have to act on either request because of existing policy set by Council; that the fees were an arbitrary decision by staff; that staff recommended WDT contribute cash - not a letter of credit because it was difficult to handle and required additional work; who had made the determination to not allow anyone to have a letter of credit under $300,000; that it was staff's recommen- dation. Mr. Dewey stated that his was a retail development that served the area and the company was not drawin§ customers west of 101. He stated that the City was requiring a payment of $8.24 sq. ft. for his business while an office building paid only $2.00 per sq. foot. He urged the Agency to grandfather the use in that it was not a regional draw that impacted traffic mitigation. He stated that a letter of credit would cost his company $4,500 as opposed to $45,000 for a cash payment. Discussion followed: that the Subcommittee had thought to relook at the existing formula; that capital improve- ments escalate, while a letter of credit did not; that WDT could be grandfathered (Agency Counsel arrived at 7:20 p.m.) in if the system changes; Agency Counsel 8110/88 Page 6 ,.. 4. Staff Report - Continued. suggested reevaluating the remaining let- ters of credit. (Cassette No. 2) Chairman Drago closed the Public Hearing. Mr. Dewey requested the Agency approve the Precise Plan and the Variance, and continue the letter of credit issue to the next meeting. M/S Addiego/Teglia - To approve Variance V-88-204 for 108-148 Corporate Drive based on the findings in the staff report. Carried by unanimous voice vote. ~o~ ~ M/S Teglia/Haffey - To approve Precise Plan No. 88-15 subject to findings and conditions in the staff report, and Condition No. 8, "Should the existing Security Pacific Building be removed, that WDT may extend its building to include a like area subject to the custo- mary conditions including parking and the -- elevations are a continuation of this project as approved. Executive Director Lewis recommended that the Agency take cash from WDT, and if a letter of credit was considered then the Attorney should draft one. Mr. Dewey stated that if a letter of cre- dit was not considered he would ask the Agency to continue the matter and he would rethink the project. Boardmember Addiego requested that the Attorney research contingencies involved with the letter of credit. Boardmember Haffey withdrew his Second to the Motion. Chairman Drago continued the item and directed staff to negotiate with WDT on the letter of credit. 8/10/88 Page 7 AGENDA ACTION TAKEN CLOSED SESSION CLOSED SESSION 5. Closed Session for the purpose of The Agency chose not to hold a Closed the discussion of personnel Session. matters, labor relations, property negotiations and litigation. M/S Teglia/Haffey - To adjourn the meeting. Carried by unanimous voice vote. ADJOURNMENT: Time of adjournment was 8:40 p.m. RESPECTFULLY SUBMITTED, APPROVED. Bar ara A. Battaya, Redevelopment Agency Ra~k D~ago, City of South San Francisco sP~ue~ s~nen~Yrancisco --The entries of this Agency meeting show the action taken by the Redevelopment Agency to dispose of an item. Oral communications, arguments, and comments are recorded on tape. The tape and documents related to the items are on file in the Office of the City Clerk and are available for inspection, review and copying. 8/10/88 Page 8