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HomeMy WebLinkAboutRDA Minutes 2001-09-26 ,?...o o MINUTES REDEVELOPMENT AGENCY OF THE CITY OF SOUTH SAN FRANCISCO REGULAR MEETING SEPTEMBER 26, 2001 MUNICIPAL SERVICES BUILDING COMMUNITY ROOM 33 ARROYO DRIVE CALL TO ORDER: 7:08 p.m. (Cassette Tape No. 1) ROLL CALL Present: Boardmembers Gonzalez, Matsumoto and Penna, Vice Chair Mullin and Chairman Fernekes Absent: None. AGENDA REVIEW No changes. PUBLIC COMMENTS None. CONSENT CALENDAR 1. Motion to approve the minutes of the September 12 regular meeting and September 19 special meeting 2. Motion to confirm expense claims of September 26, 2001 in the amount of $21,093.13 Motion-Matsumoto/Second-Gonzalez: To approve the Consent Calendar as submitted. Approved by voice vote. Abstain: Chairman Fernekes, Item No. 1. PUBLIC HEARING 3. Consideration of Modification to Precise Plan (PP-00-060/Mod 1) and Modification to Parcel Map (PM-00-060/Mod 1) to construct a phased development consisting of one nine-story office building totaling 223,354 square feet and three four-story office/R&D buildings totaling 388,622 square feet, 20,000 square feet of which would be ancillary restaurant/retail; Resolution approving Precise Plan and Parcel Map, Resolution approving a First Amendment to Owner Participation Agreement for Bay West Cove Planning Area 1A (Hines Development), and Resolution approving an addendum to a Supplemental Environmental Impact Report for the Bay West Cove Project; Applicant: Hines Bay West Cove ' ' (Public hearing opened on September 12 and continued to September 19 and September 26.) Executive Director Wilson requested the Agency consider the land use issues before hearing the staff report on the OPA. Staff report and visual presentation given by Principal Planner Kalkin. Mr. Doug Holte, Hines Development, discussed Hines track record, presented an overview of the modification and reasons why the modification should be approved. He stated that there has been a downturn in office space with an increasing need for R&D development. The applicant submitted letters for the record from Courtyard/Marriott, Western International, Corixa, Advanced Medicine, BT Commercial Real Estate, and Sedway Group, and two newspaper articles from SF Chronicle and SF Business Times. He further addressed the need for more biotechnology facilities in South San Francisco and the benefits of competition, being design innovation and flexible lease terms. He concluded his lengthy presentation with a computer generated video of the proposed development. Mr. Marshall Lees, Slough Estates, gave a slide presentation and stated his concerns regarding the modification. He discussed past trends and cycles in the economy and the continuing demand for office space as biotech companies develop and grow. He stated that high-rise office buildings are still viable in the Bay West Cove development and that Slough does not control the biotech building space market. He urged Council to deny the modification. Mr. Dan Hippel, Advanced Medicine, 901 Gateway Boulevard, speaking in favor of the modification, discussed how this R&D development differs from Slough's, and the importance and need of bringing a different design quality/model to the biotech community. In response to Mr. Lees, Mr. Holte further commented on the downturn office space and that both economists and real estate firms are predicting a high rate of vacancy by the end of the year. He reiterated that the current market needs are for biotech firms who need choice and open competition. Public hearing closed. Boardmember Penna stated his viewpoint on the information provided by the speakers and agreed that there currently is a glut of office space. He stated his support for the modification that will allow a sense of competition. He felt the City should not go in a direction that will force biotech companies to look elsewhere for the type of facilities that they need. Vice Chairman Mullin stated his support for the modification. He stated that both Hines and Slough are excellent companies, competition is a good idea for the biotech community, and that the Precise Plan modification is not a detriment to the community. In response to Boardmember Matsumoto, Mr. Hanns Lee, Hines Development, stated the office building is 142' and that the retail will be a coffee shop and two sandwich shops. He stated that the TDM program requirement of 35% will pass on to subsequent owners, and mentioned that a potential tenant, a French telecom company, reassessed its growth and decided not to lease one of the proposed office towers. Boardmember Matsumoto discussed with Mr. Lee the possibility of allocating $25,000 of the $200,000 on-site public art allocation to an off-site public location. Mr. Lee stated his agreement to the proposal. Boardmember Gonzalez discussed with Mr. Lee the parking standards for the development, and Mr. Lee indicated that if there is an increase in the demand for parking, 40 more spaces can be provided in the garage. He stated that another creative measure is to increase the TDM requirement to 37¥2 % to keep the parking rate down. Boardmember Gonzalez further REGULAR REDEVELOPMENT AGENCY MEETING SEPTEMBER 26, 2001 MINUTES PAGE 2 2.O2. discussed with Mr. Lee the OPA requirement for childcare, and the EIR mitigation measure for recycling biotech wastewater. Boardmember Gonzalez questioned the possibility of having a tennis court on the roof of one of the R&D buildings, which Mr. Lee stated can not be accomplished due to mechanical equipment, but a basketball court is being considered for the top floor of the parking garage. Chairman Fernekes stated his concern that there is the possibility of the hotel not being built unless the modification is approved. Mr. Lee stated he could not guarantee a hotel being built on the site due to a concern of being isolated. He reviewed the zoning history of the site and the effort the Agency and Council has made to see that a hotel is included in the Bay West Cove development. He commented that another developer was told R&D was not permitted on the office parcel. He pointed out that two Marriott hotels are located in the area and are isolated from any development. (Cassette Tape No. 2) Boardmember Matsumoto and Chairman Fernekes discussed with staff the process that is followed when a developer proposes a use that is not zoned for a site. Executive Director Wilson clarified that staff' s policy is to inform a developer of the City Council's/Agency's plan and if the proposal is contrary staff will recommend against it. Boardmember Matsumoto reasoned that it is still the developer's prerogative to go forward to Council or the Agency with the proposal even though staff is recommending against it. Chairman Fernekes verified that a developer was told that he could not build R&D on the office parcel, which staff confirmed. Boardmember Gonzalez stated his support for the modification due to the decline in the office market and the need for R&D development. He commented that the R&D development will bring the hotel in. Vice Chairman Mullin stated his support for the modification. He commented that the development is still mixed use, acknowledged that the hotel will not be built for awhile, and endorsed the lower profile the development will offer the city. Staff report on the amendment to Owner-Participation Agreement presented by Redevelopment Project Manager Beyer. Chairman Fernekes discussed the penalties and conditions the developer will have to pay if the hotel is not built in two years from now. Mr. Lee stated his knowledge of those penalties and Hines agreement to the OPA. Boardmember Penna confirmed the deadlines that Hines is to meet and Mr. Lee stated his agreement and that a hotel developer is still under contract. Counsel Mattas stated language will be added to the OPA for public art in the amount of $25,000 off-site and $175,000 on-site. Boardmember Matsumoto stated the Cultural Arts Commission can use the money for public art in the Atrium or Sculpture Garden. The Board concurred with the amendment. Counsel Mattas proposed amended wording for Section 3.1.3 of the amended OPA, as follows: "at the Agency's option, participant may be required to pay an initial payment of $25,000 prior to issuance of a building permit for the first building in the project." Motion-Mullin/Second-Penna: To approve Resolution No. 04-2001, approving an addendum to a Supplemental Environmental Impact Report for the Bay West Cove Project. Approved by voice vote. Noes: Chairman Fernekes. REGULAR REDEVELOPMENT AGENCY MEETING SEPTEMBER 26, 2001 MINUTES PAGE 3 ?.o3 Motion-Mullin/Second-Gonzalez: To approve Resolution No. 05-2001, amending the Precise Plan and Tentative Parcel Map for Bay West Cove Planning Area IA (Hines Development). Approved by voice vote. Noes: Chairman Fernekes Motion-Mullin/Second-Gonzalez: To approve Resolution No. 06-2001, approving a First Amendment to Owner Participation Agreement for Bay West Cove Planning Area lA (Hines Development), and amending Section 3.3 by adding: "at the Agency's option, participant may be required to pay an initial payment of $25,000 prior to issuance of a building permit for the first building in the project.". Approved by voice vote. Noes: Chairman Fernekes. ADMINISTRATIVE BUSINESS 4. Resolution authorizing the execution of an Exclusive Negotiating Rights Agreement with Bay Area Economics to undertake feasibility analysis of developing housing above parking lot at 329 Miller Avenue Staff report presented by Housing and Community Development Manager Fragoso. In response to Boardmember Penna's concern regarding the number of parking spaces in the development, Manager Fragoso explained that the existing number of public parking spaces will double. There was further discussion of the building's aesthetics and lack of play area for children. Assistant Director Van Duyn stated the feasibility study will look at amenities for the site. In response to Boardmember Gonzalez's question on the number of units and parking, Assistant Director Van Duyn stated that the feasibility study will determine the number. ' Boardmember Matsumoto stated her support for the project and commented that Bay Area Economics is highly recommended. Assistant Director Van Duyn stated that they have agreed to meet the City's inclusionary ordinance requirement. Motion-Matsumoto/Second-Gonzalez: To approve Resolution No. 07-2001, approving an Exclusive Negotiation Rights Agreement (ENRA) between the City of South San Francisco and Bay Area Economics (BAE) to develop the City parking lot at 329 Miller Avenue. Unanimously approved by voice vote. ADJOURNMENT Motion-Mullin/Second-Penna: To adjourn the meeting at 9:04 p.m. Unanimously approved by voice vote. Submitted by: Approved: Sylv/a M. Payne, Clerk / Id ~o.~epleph A. Fernekes, Chairman. City of South San Francisco City of South San Francisco REGULAR REDEVELOPMENT AGENCY MEETING SEPTEMBER 26, 2001 MINUTES PAGE 4