Loading...
HomeMy WebLinkAboutRDA Minutes 1998-11-24 Chairman Eugene R. Mullin M I N U T E S Boardmembers: c,,-/ James L. Datzman Redevelopment Agency Joseph A. Fernekes l--~.aryl Matsumoto Municipal Services Building ~ohn R. Penna Community Room November 24, 1998 SPECIAL MEETING REDEVELOPMENT AGENCY OF THE CITY OF SOUTH SAN FRANCISCO NOVEMBER 24, 1998 NOTICE IS HEREBY GIVEN, pursuant to Section 54956 of the Government Code of the State of California, that the Redevelopment Agency of the City of South San Francisco will hold a Special Meeting on Tuesday, the 24th day of November 1998, at 7:00 p.m. in the Municipal Services Building, Community Room, 33 Arroyo Drive, South San Francisco, California. Purpose of the meeting: Call to order CONSENT CALENDAR 1. Motion to approve the Minutes of the Special Meeting of 11/10/98. 2. Motion to confirm expense claims of November 24, 1998 3. Motion to cancel the regular meeting of 12/23/98. 4. Resolution approving the Britannia Development Inc. development plan for the Harbor Way area. A RESOLUTION APPROVING THE BRITANNIA DEVELOPMENT INC. DEVELOPMENT PLAN FOR THE HARBOR WAY AREA GOOD AND WELFARE Adjournment Clerk of the Redevelopment Ag~fl/cy City of South San Francisco Dated: November 19, 1998 AGENDA ACTION TAKEN iLL TO ORDER: (Cassette No. 1) 7:03 p.m. Chairman Mullin presiding. ROLL CALL: Boardmembers present: Datzman, Fernekes, 11/24/98 Page 1 AGENDA ACTION TAKEN ..RDLL CALL - Continued. Matsumoto, Penna and Datzman. Boardmembers absent: None. AGENDA REVIEW AGENDA REVIEW Executive Director Wilson Requested: - Item 4 be heard under Administrative Business. So ordered. CONSENT CALENDAR CONSENT CALENDAR 1. Motion to approve the Minutes of the Special Meeting Approved. of 11/10/98. 2. Motion to confirm expense claims of 11/24/98. Approved in the amount of $29,829.34. 3. Motion to cancel the regular meeting of 12/23/98. So ordered. 4. Resolution approving the Britannia Development Inc. development plan for the Harbor Way area. A RESOLUTION APPROVING THE BRITANNIA DEVELOPMENT, INC. DEVELOPMENT PLAN FOR THE HARBOR WAY AREA M/S Penna/Fernekes - To approve the Consent Calendar with the exception of Item No. 4. Carried by unanimous voice vote. ADMINISTRATIVE BUSINESS ADMINISTRATIVE BUSINESS 4. Resolution approving the Britannia Development Inc. Boardmember Penna left the podium due to a con- development plan for the Harbor Way area. flict of interest, pursuant to an FPPC ruling on realtors not taking part in land use decisions. A RESOLUTION APPROVING THE BRITANNIA DEVELOPMENT, INC. DEVELOPMENT PLAN Coordinator of Economic & Community Develop- FOR THE HARBOR WAY AREA ment Beyer related: the project provides for the participation and preferences by property owners and business occupants in the project area; there are 14 parcels and three are not being included in tonight's discussion; this area is in the Downtown Redevelopment Area and provides for participation by property owners; he stated he will not go into details of the participation rules; the rules also artic- ulate some factors, which could limit the participa- __ tion by other property owners within the project area - the elimination and changing of some land uses, ability of participants to finance the proposed acqui- sition, development or rehab in accordance with the Redevelopment plan; the ability and experience of 11/24/98 Page 2 AGENDA ACTION TAKEN _ADMINISTRATIVE BUSINESS ADMINISTRATIVE BUSINESS Resolution - Continued. participants to undertake and complete the proposed rehab or development, any change in orientation and character of the project area; he recommended the Agency develop the area in new usages; he spoke of the letter in the packet being sent to property owners on 10/16/98, with the exception of one, Mr. Rus- sell, however, a letter was sent to him asking if he was interested in participating; he gave a history of the redevelopment plan for the downtown area, and stated the Harbor Way area was one of six areas designated in the plan, and there are a number of objectives in the plan for desirable usages; funds were allocated to implement the concept for the uniform use of the area, the specific use being re- search and development; this area is adjacent to the Gateway which is a biotech area; staff wants to provide needed jobs in the community; the area in question consists of 14 parcels, and described the acreage ownership in the area; three property own- ers indicated that they were interested in participat- ing as a property owner and continuing their busi- __ ness at its present location; all of the property own- ~ ers with the exception of one lessee have responded , to the Agency's letter in a similar manner and would prefer to stay in their present location to operate their present businesses; neither party indicated any interest in participating in the proposed new devel- opment use, biotech, for their parcels; if the proper- ty owners had indicated an interest in participating in the new development, the Agency would be obli- gated to allow them an opportunity to present a plan on how they would participate; the ordinance adopted by the Agency, Ordinance 1056-89, ap- proved the plan for the Downtown Central Redevel- opment Project Area, it consisted of six sub-areas and called for the elimination of blight in the project area and provided several objectives; the Agency approved a planning concept for the portion of the project area which encompassed Harbor Way be- tween East Grand Avenue and the railroad tracks; Britannia has presented a development plan which includes the majority of the Harbor Way area being developed into an expansion of the business park with new bio technology uses; they have acquired or control six parcels consisting of 7.98 acres, and is requesting approval of the plan and potential assis- tance in its implementation; this calls for the expan- sion of the Point Grand Business Park to include all the parcels on the easterly side of Harbor Way and 11/24/98 Page 3 ..ADMINISTRATIVE BUSINESS ADMINISTRATIVE BUSINESS Resolution - Continued. includes three parcels on the western side of Harbor Way; Britannia has made acquisition offers to all of the other property owners affected by the proposed development; a counter offer was made to Britannia from the owners of 208 E. Grant Ave.; the property owners of 160, 169 and 185 Harbor Way have not responded to offers made by Britannia, and the most recent offers were made in late May; the Agency made an offer on the 208 E. Grand Ave. property in April 1998 and did not receive a counter offer from the property owners and negotiations have continued with the owners; the Agency adopted a resolution of necessity in May 1998 to acquire the property through eminent domain, but delayed filing the action to allow Britannia and Atlas to negotiate an acceptable acquisition agreement; staff has had several meetings with Cai Trans, the owner of a two acre parcel on the western side of Harbor Way, and has recently provided an additional six month period to enable the Agency to locate a parcel of land which could be acquired and then traded to Cai __ Trans for the Harbor Way parcel wherein the major parcels would be under control of either the Agency or Britannia; Britannia is further requesting that the Agency assist in acquiring the remaining parcels, if it cannot come to an agreement on an acquisition price with these property owners. Chairman Mullin stated he had one speaker card and asked the City Attorney, procedurally, if it was proper to allow him to speak. Counsel Mattas stated, this is not a public hearing, you do have individuals that have submitted their responses, and it is within the authority to take additional information as comments on the items. Mr. Tom Carrigan, Trans Coast Envelope Co., 240 Littlefield, stated his issue is regarding a business matter on Littlefield, and he does not know if this is the proper time to bring forward a serious issue before the Agency on Littlefield. His firm has been an employer for 30 years, every since Folgers was in the area, and the congestion has reached intolera- ble levels. He related: they are a 24 hour manufacturing company; he asked the City to inspect the streets that are coming apart; he spoke to Road- way Package, that is his tenant on the west side, and they have damage with the new facility from the 11/24/98 Page 4 AGENDA ACTION TAKEN ..ADMINISTRATIVE BUSINESS ADMINISTRATIVE BUSINESS trucks; they have a real safety issue in trying to leave their property; the police are diligent in com- ing and ticketing endlessly, but if the vehicle does not have more than five violations they cannot do anything; the air freight companies have $40,000 to put into parking tickets; will the City assign this as an emergency before they have real problems. Chairman Mullin stated the City will see if they can resolve that issue by sending staff out there and investigate the problem and they will keep Mr. Carrigon informed. Mr. Norman Tuttle Harrison stated he is a land use attorney in the East Bay with a background in urban renewal, and some of his friends are impacted by what is going on. He has been house counsel to the Oakland Redevelopment Agency and is sympathetic to both sides. The people he has on Harbor Way don't feel they are being very well communicated with and are being short shifted. He listened to the complaints and talked to staff, and for what it is worth it looks to him, rather consistently, they have made minor procedures. He understands why the City is interested in biotech business, but with the spirit of the old and the new, that you keep an eye on the industry that feels they are S.S.F. businesses for 30 or 40 years, and there appears to be no City staff interest in helping old businesses in S.S.F. When he met with some of the members of staff, one of the comments was, let Brittania have the property. He has used condemnation and it has some glitches, but when you take the position to let Brittania do it, you must realize they have no duty for assistance or to pay relocation expenses as the Agency does. Britannia has no duty to look into the real costs or that the businesses don't want to leave the City. So, his plea is for the Agency not to reverse the course of history of moving in this area to expand the biotech technology, but direct your staff to follow the spirit and the laws of this state that over the years should become sensitive to his friends that are hurting and not just give a check for the value of the land and a depleted business. Mr. Wayne Kaul, owner of 169 Harbor Way, com- mented: he was never advised of the October meet- ing; for this particular meeting the notice was mailed on Friday, and he received it Monday which is cut- 11/24/98 Page 5 I ~ I · ADMINISTRATIVE BUSINESS ADMINISTRATIVE BUSINESS ting it too close; in the letter, the statement was made that Brittania made an offer - he received no offer, so he does not know who is handling this - the City or Brittania; he wants to know what is going on. Coordinator of Economic & Community Develop- ment Beyer stated he received a copy of the letter and met with Mr. Kaul who indicated he had not received an offer at that time. So, he suggested another offer be made. Mr. Kaul related: his firm objected to the redevel- opment by Brittania of Harbor Way; his building is on the corner of East Grand and Harbor; it is not a metal building; it is a concrete tilt up building that is well maintained; this is a family owned company that has been in business since 1990, and his two sons and daughters work there; but the offer of $625,000 for a property that we purchased for $645,000 does not cover the cost of the building for the move or the additional property tax or interest on the loan; biotech prevents them from continuing in their business; they employ people that live in the City; he feels this is too restrictive and unreason- able and his firm wants to remain; they have not been able to reach an agreement, and a new location of approximately the same size and configuration could cost more than we could afford, for it is diffi- cult to find a place they could move to; Brittania picked a poor time to purchase land in S.S.F. Mr. Anthony Buscaman, Marble Masters, related: today, except for his neighbor across the street, he would not have known any of this, for he has not received any paperwork nor was an offer made to him. Mr. Beyer stated staff contacted Marble Masters, but sent the letter to the owners of the property on 10/16/98, but received no response. Mr. Buscaman stated he did not receive a copy of the letter. Discussion followed: why not send letters out by registered mail, in the future, to prove the letters were received; that was a suggestion made subse- quent to the mailing. 11/24/98 Page 6 ADMINISTRATIVE BUSINESS ADMINISTRATIVE BUSINESS Mr. Bob Rosetto related: he started his business in 1976 and it is a family business, with his son being a third generation, and they employ 69 people who rely on them for their income; they have done work for everybody all over S.S.F. and San Bruno; he believes moving his business would be detrimental; this steel building is paradise, they have high ceil- ings, cranes and a yard; he believes their steel build- ing is in compliance with the City; they would like to stay here and don't see why another industry can come in and force us out because of the type of business they are; he had to call Bob Beyer for he did not get a copy of the letter, and could not make a decision; it would be good to get cooperation to make something happen that would be positive to the City and him. Mr. Andy Wilson related: his business has been in that location for 30 years, and in the meantime, have put up several new buildings over the years; they have 25 employees who all live within this area; if we had to move we would have to start all over again with new people. Boardmember Mullin asked if staff had responses to the notification issue, particularly when the Agency is dealing with tenants and staff notified the owners. He questioned if there was some reason why staff was not consistent. Boardmember Matsumoto related: during one of the Agency meetings it was mentioned that Brittania, in making offers, was including a generous reloca- tion cost - is that the case. Coordinator of Economic & Community Development Beyer stated the offers were made basically on acquisition of the land, and the other would come into play during negotiations. Discussion followed: is it standard in eases like this where we are asking businesses to move - does the Agency get involved; is the responsibility on the developer as opposed to the Agency as a City; if the .... Agency intercedes in the acquisition and consol- idation of parcels, then yes, we would have the responsibility; has Brittania contacted all of these parties in trying to negotiate; Mr. Beyer has copies of the offers made; Vice Chairman Datzman stated 11/24/98 Page 7 AGENDA ACTION TAKEN ADMINISTRATIVE BUSINESS ADMINISTRATIVE BUSINESS Resolution - Continued. he had a lot of confidence in the staff; not many years ago the Agency looked at the blighted area and wondered if that area would change for the greater benefit of the area; the report talks about people participating, although some uses are not consistent with the biotech business; this all developed because of the toxic contaminants and the dilapidated build- ings for redevelopment in 1989; some of those areas have changed because Brittania has acquired them and is constructing, and have acquired buildings that are on Harbor Way as late as a year and a half ago; Vice Chairman Datzman is uncomfortable with the questions that are asked or not asked on the form, because of some of the issues; the form talks about would you like to continue in the same location; but things like how long a business is there, how well established, how successful, relocation and whether that is possible to accomplish and he does not feel they have the information to make a decision; if a person comes to the podium and feels they were not properly notified, that is a key issue and should be __ made a part of the record; people have said they are not sure who they are to negotiate with - the City or Brittania; there should be a record somewhere which would make him more comfortable in making a decision; Counsel Mattas stated, the specific ques- tion is fairly focused under the owner participating process and that policy decision was a decision of a prior Agency, that is why they adopted the plan; should this be held over for two weeks or a month to verify there has been timely notification and Britannia has been in contact with everyone; does Britannia have a plan to acquire property to come into conformity of the Redevelopment Agency, for Chairman Mullin is concerned there has not been the type of high quality communications the Agency wants to take place; he is also concerned if there have been no offers or letter communications by Britannia to the tenants, is there something the City can do to make it a fuller and more complete pro- cess with the people that spoke tonight; Counsel Mattas replied, from the standpoint of the Agency moving forward the business plan and the businesses that want to stay and move forward, however, the . Agency tonight is being asked to look at a concept to further the redevelopment plan with the exception of Atlas, that you adopt the resolution and anything else would come back to the Agency to acquire those properties; if the Agency adopts the resolution, 11/24/98 Page 8 AGENDA ACTION TAKEN ADMINISTRATIVE BUSINESS ADMINISTRATIVE BUSINESS Resolution - Continued. you are saying you buy the concept, the biotec, as a long term use of the property; it is not an approval of the development and it is not approval of any projects at all tonight; Boardmember Fernekes has concern with what he heard from the individuals, who are businesses and not property owners; is it possible that staff spend some time to sit down and talk to them for everyone's understanding because what he is hearing they do not understand; Mr. Beyer talked to Mr. Resotto, Mr. Kaul and the Wilsons this past summer on the general concept of the area and he knows they received two offers, but staff will be pleased to sit down and discuss this further; Mr. Restetter urged the Agency to post- pone the issue for redevelopment, it is not their job; his job is sheet metal and these people have a long time to formulate their planning; are we going to be forced out, if so, what is the plan; can we develop our own property and our own plan; the City knows it is difficult to deal with architects, you know it is difficult to pop out a plan, so we need to know those __ two things; holding it off is not going to be earth shattering, but he feels they should be afforded that time to determine what they are going to do; Coun- sel Mattas, stated if the Agency accepts the resolu- tion it endorses the conceptual plan for further biotech in that area, and it will be between Brittania and the property owners to agree on the issues; Boardmember Matsumoto was close to a Motion because other things would come back to the Agen- cy; Chairman Mullin stated, before you continue with your Motion he would feel more comfortable if any loose ends were cleared up; he supports this plan, but is concerned there has not been adequate information; he is supportive of a delay, but not supportive of the plan right now; can the Motion include a start of one month vs. implementation of the plan; the resolution can include that, a delayed date in terms of the Agency, for there was a delay to continue negotiations prior to filing condemna- tion; he would change the wording to show a delay and the matter come back to the Agency in one to two months for reconsideration; the information coming back should include the issue of relocation, ,. so it does not appear we are proceeding without understanding the issue of each business; that would take place prior to the acquisition; etc. M/S Fernekes/Datzman - To continue the item to the 11/24/98 Page 9 ADMINISTRATIVE BUSINESS ADMINISTRATIVE BUSINESS Resolution - Continued. first meeting in January. Carried by majority voice vote, Boardmember Penna was absent. Boardmember Penna Returned to the Podium: Boardmember Penna returned to the podium and stated due to a FPPC ruling on realtors he cannot act on land issues. M/S Fernekes/Penna - To adjourn the meeting. Carried by unanimous voice vote. ADJOURNMENT: Time of adjournment was 8:07 p.m. RESPECTFULLY SUBMIWrED, APPROVED. B_~arbara A. Battaya, Clerk C/ Eug R Mullin, Chairman development Agency Redevelopment Agency ty of South San Francisco City of South San Francisco 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. 11/24/98 Page 10