HomeMy WebLinkAboutMinutes 1989-03-15Mayor Roberta Cerri Teglia
Council:
Mark N. Addiego
Jack Drago
Richard A. Halley
Gus Nicolopulos
AGENDA
ADJOURNED REGULAR MEETING
CALL TO ORDER: (Cassette No. 1)
ROLL CALL:
1. Interview of Personnel Board
Applicants.
CLOSED SESSION
®
Closed Session for the discussion
of personnel matters, labor
relations, property negotiations
and litigation.
RECALL TO ORDER:
CALL TO ORDER:
Joint Meeting with the Parking Place
Commission at 8:00 p.m. to discuss
items of mutual concern. ~
MINUTES
City Council
City Council Conference Room
City Hal 1
March 15, 1989
ACTION TAKEN
ADJOURNED REGULAR MEETING
6:40 p.m. Mayor Teglia presiding.
Council present:
Council absent:
Addiego, Drago,
Nicolopulos, and
Teglia.
Halley.
City Clerk Battaya stated that Vice Mayor
Halley had informed her office that due
to his work schedule he would be late in
arriving at the meeting.
Council interviewed the following
Personnel Board applicants: Marilyn
Rossi, Jack Stuart, David Anderson, Janet
Saunders. It was noted that Mr. Samir
Habash did not appear at the meeting for
an interview.
CLOSED SESSION
Mayor Teglia called a Closed Session at
7:48 p.m. for the purpose of a discussion
of potential property acquisition, the
property completed being on Miller and
Cypress Ave., and potential acquisition
of property on the corner of Grand and
Cypress.
Mayor Teglia recalled the meeting to
order at 8:04 p.m., all Council present
with the exception of Councilman Halley,
and stated that no action had been taken.
Parking Place Commissioners:
Commissioners present: De Tomasi,
Maltoni, and Chairman
Wel ker.
Commissioners absent: None.
City Manager Armas stated that the
Council Subcommittee would provide intro-
ductory comments.
3/15/89
Page i
AGENDA ACTION TAKEN
Joint Meeting - Continued.
Councilman Addiego stated that he would
like to set the stage on how the Council
had become involved in this project, when
up to this point it had been in the pur-
view of the Parking District. He stated
that some time ago Councilman Nicolopulos
was able to entice the real estate deve-
loper of a major retailer to look at our
downtown situation for his business
needs. He stated that some of the things
the real estate person told Councilman
Nicolopulos had led to conversations bet-
ween Councilman Nicolopulos and himself;
and ultimately more discussions at the
Council level. He continued, it was
realized that in looking at the lot at
Miller and Cypress, intended for a
parking lot, a component was missing in
the downtown. He stated that a
Subcommittee was formed of he and
Councilman Nicolopulos to look at some
possibilities, which had been developed
into this proposal.
He stated that the City needs two things:
anchor tenants to advertise and make the
whole scheme more viable, and a parking
structure.
Councilman Nicolopulos agreed, and stated
that this was a dream which was not in
cement. He stated that the Council
needed to give up the archaic way of
looking at things in order to attract
business into the area.
City Manager Armas stated that the preli-
minary components would be discussed
without action being taken. He stated
that staff would bring forth an overview
of the project by staff, with assumptions
presented on its financial feasibility.
He stated that the project was in the
neighborhood of $5,000,000, that could be
done by the City or through a private
venture after a great deal of careful
analysis and research was done.
Deputy City Manager/City Engineer Wong
presented engineering renderings of the
project (a copy of the staff report is on
file in the Clerk's Office).
3/15/89
Page 2
AGENDA ACTION TAKEN
Joint Meeting - Continued.
(Cassette No. 2)
He described the project in detail: a
structure with commercial use on the
street floor with two floors or decks of
parking above in the Merriam block of
Grand Avenue; street parking in the
parking lot behind it; Cypress Ave. to
continue through underneath the struc-
ture; lighting and ventilation for the
building; the circulation into the struc-
ture is by way of Cypress or Fourth Lane;
a left turn at ground level could be made
on Miller and Fourth; that architectural
designs would be compatible with the
downtown; that there was 22,000 sq. ft.
of commercial space on the first level
that could be one or more businesses;
that the height would be that of the Sun
Dial and the Merriam Buildings; Cypress
would go through with parking on the
right side and diagonal parking at the
end; construction estimates were a mixed
use of both commercial and parking with
281 stalls; that the estimate for design,
construction administration, and engin-
eering was $3,900,000; that a cost of
$900,000 for land acquisition was inclu-
ded; that the cost per stall was $20,000.
Director of Finance Marx described the
assumptions developed on the financial
feasibility for the Parking Place
Commission FY 89-90 - FY 93-94; income
and expenses; adding the garage and
including both metered spaces and commer-
cial spaces; free parking garage above
commercial space; total garage without
commercial space; status quo; metered
garage and commercial space; revenue com-
parisons of the various assumptions; debt
service for the various assumptions.
City Manager Armas presented financial
graphs on the parking structure financial
feasibility status, and explained in
detail the financing tools that could be
employed by the involvement of the
Parking District, Redevelopment Agency
and City - or a joint partnership of
public and private development where the
risk was distributed accordingly. He
stated that it was important to retain a
firm that specializes in this type of
3/15/89
Page 3
Joint Meeting - Continued.
thing, and advise the City on the viabi-
lity of the assumptions made and
appropriate financing. He stated that
the information from the firm would go
to the Parking Place Commission for
review and recommendation.
Parking Place Commissioner Chairman Welker
questioned if this was a work project to
show the feasibility of a $5,000,000
project. He expressed concern that the
Commission had been given an edifice that
had never been brought up before.
Councilman Addiego stated that a portion
of the Council had gone to the corner of
that property, and looked over towards
Grand Avenue and realized that the City
was property owner of another portion.
He stated that they started recognizing
the potential, however, this did not mean
that this was the best edifice because
the Commission could come up with
another.
Mayor Teglia stated that Chairman
Welker's question appeared to be - is
this a site specific project or are other
sites still up for consideration.
Chairman Welker stated that the EIR
called for 800 new parking spaces, and
stated that this was a good start but was
not where it was needed. He stated that
he would hate to think that they were
going to tie up all of their energies and
money in an area that was not necessarily
the most prominent area.
He stated that the Commission had been
trying for two and a half years to get
financing for the parking structures
needed.
Mayor Teglia stated that the Commission
would have the opportunity to recommend
other ideas to the Council after their
review process.
Discussion followed: that the Commission
had been given a directive, that the
Council did not want parking on Grand
3/15/89
Page 4
Joint Meeting - Continued.
Ave., that this structure was not on the
street, but above and behind Grand Ave.
Councilman Nicolopulos stated that this
concept was a projection to enhance the
downtown, but it did not preclude con-
siderations of others. He stated that
the Council was trying to entice the
people working across the freeway into
the downtown area, and all Commission
input would be welcomed.
Councilman Drago stated that a few months
ago he had been the swing vote against
paving a lot for 32-35 spaces when some
day the area would have to be expanded,
so why spend $50,000 of the taxpayers
money on an interim basis. He felt
enthused by structures like this and what
it might bring into the area, and felt it
was incumbent for the Commission to see
that the City has the capability to put a
structure like this up. He felt that the
Commission would support the concept
regardless of the location.
Mayor Teglia stated that with that in
that vein, there was still consideration
of the back lot originally acquired for
the purpose of turning it into a lot, and
then this discussion had come into play.
She stated that if in fact the Commission
finds, and can make findings that the
Council can accept, that something can be
done somewhere else in a larger magnitu-
de; and also for an interim period of x-
number of years that lot should be paved,
it would be considered.
Chairman Welker stated that the concern
was that the Commission's immediate needs
down there were more timely, more
necessary at this time for the 30 spaces
than the 200 spaces. He stated that the
material had been received by the
Commission yesterday, and there had not
been an opportunity for review or
discussion.
He questioned if there were plans to
change the zoning or demographics of the
residential areas due to the magnitude of
3/15/89
Page 5
AGENDA ACTION TAKEN
r -2.
Joint Meeting - Continued.
the project.
Senior Planner Christians stated that
there had been discussion about looking
at the zoning in Irish town, but there
had not been proposals to change the
zoning in the downtown area.
City Manager Armas stated that the
Council had on its agenda last week a
recommendation that must have a general
plan amendment involving downtown that
the Planning Commission had looked at and
forwarded to Council. He continued, one
component simply had a study to pursue as
to whether the medium density that
exists at the moment for Irish Town
should be changed to high density, and
without making a recommendation the
Planning Commission had said: 1) it
should be studied; 2) bef6re any changes
for recommendations are made there needed
to be clear notice to the residents, and
the residents consulted.
Chairman Welker stated that the
Commission had discussed that and did not
think that as a business area that you
could depend on the continuity of busi-
ness that will be provided by transits
coming to Grand Ave.
Mayor Teglia stated that she hoped that
when the Planning Commission began doing
its work that this Commission would have
a meeting to discuss sustaining busi-
nesses and the parking before the
Merchants, Chamber of Commerce, and PIBC
were brought into the process.
She stated that there were other alter-
natives to the financing, such as private
participation, and the Council wanted to
see a full range of alternatives deve-
loped by a consultant.
Discussion followed: looking at what
other cities had done to effect public
parking structures, and marketing commer-
cial spaces; Councilman Drago suggested
that businesses be allowed to purchase
stalls; the time frame for completion of
3/15/89
Page 6
Joint Meeting - Continued.
the project; that the Commission needed
the Cypress lot developed right now; that
it would take two to three months for the
bid process on the Cypress lot; that
before the Council acted on the parking
structure it needed to be assured that it
was viable; that the cost for an outside
person to do the analysis was approxima-
tely $10,000; securing a tenant with a
major advertising program to entice other
businesses into the downtown; the current
produce and wholesale uses in the down-
town; that other locations should be
looked at, etc.
Mayor Teglia stated that this meeting was
for the purpose of a study session,
however, in that members of the public
were present they would be allowed to
speak.
Mrs. Lorraine Kehoe, 306 Almateo Lane,
Woodside, stated that she had property in
Half Moon Bay, and when the town had been
developed and beautified, she felt that
parking was an issue to be addressed when
the businesses came into town.
She felt that South San Francisco should
be beautified because it was going to be
big like San Francisco, and she wanted to
hang on to her property and be a party to
the event.
Paula Canny, Esq., 1450 Chapen Ave.,
Burlingame, stated that she represented
the Kehoes and Benedettis who owned the
property located at 200-202 Grand Avenue.
She questioned if this proposal was site
specific.
Mayor Teglia stated that it had not been
determined, but the analysis could be
applied to any site.
Ms. Canny questioned if the Council would
refer this for an economic analysis
because of the revenues involved without
having a specific site in mind or wasn't
really the referral to analysis presumed
on this site.
3/15/89
Page 7
®
Joint Meeting - Continued.
She stated that the Kehoes had worked
with the Revitalization Agency for the
past year to attempt to improve the pro-
perty, and she did not feel that her
clients objected to improving the City.
She stated that she was astonished at the
work that went into the preliminary plan
without consultation with her Clients,
the Parking Place Commission, the
Revitalization Agency. She stated that
relative to the discussion of the inten-
tion to utilize this property - to take
her clients property and be constitu-
tionally permissible, the Council had to
establish: 1) that the taking was for a
public use; and 2) that they would be
justly compensated. She stated that what
had been presented here, in her opinion,
wouldn't fall under public use, and the
City would have a difficult road in
trying to take the property by eminent
domain.
She stated that her clients had sold an
adjacent lot to the City, and one of the
concerns at that time was that the City
would not do anything relative to the one
remaining property which holds the States
Tavern, because that was the first piece
of property that Mr. Benedetti ever
purchased in this City. She stated that
the property was also the source of
income for four elderly people. She
thought the contract for the sale was
under threat of eminent domain, and the
property has been used for a private per-
son by being rented to So. City Ford for
two years.
Mayor Teglia stated that she did not
believe that the Council had any
knowledge of the presumed motive for the
City purchase. She stated that she did
not believe that the Council had ever
directed or authorized any kind of such
representation which she wanted clearly
stated on the record at this time.
She stated that with reference to the lot
the City purchased for a parking lot some
months ago, the City had gone out to bid
and in light of some new ideas the City
3/15/89
Page 8
AGENDA ACTION TAKEN
Joint Meeting - Continued.
held back from accepting a bid because
the Council felt there might be a larger
public use of that property. She stated
that the Council fully intended to have
the property acquired in public use,
whether it is going to be paved as a
single lot or part of a larger plan to
best serve the public.
She stated that one of the things the
study would pursue was alternatives for
public/private participation.
Ms. Canny stated that she would do
everything within her power for her
clients to protect their rights against
whatever action the City should take, if
the City should take an action.
Mr. John Penna, 435 Grand Ave., stated
that the Benedettis had been his clients
for several years, and had learned
yesterday and were very upset about what
Ms. Canny had related. He stated that
they had no intention of selling the pro-
perty, and were further upset by the
thought of having it taken away from them
by the City.
He stated that a better location for a
parking structure was between City Hall
and the Library, underground, which was
in a viable part of the community.
Mayor Teglia suggested that Mr. Penna
bring that idea to the Parking Place
Commission for discussion. She
questioned if Mr. Penna was aware of any
representations made to his client
regarding the safety of their remaining
property - if in fact they dealt with the
City on the first property.
Mr. Penna stated that it had been speci-
fically mentioned to him by City Manager
Lewis, that his clients would not be
jeopardizing their other property. He
stated that the family, after specific
conversations with Mark Lewis, assuring
them that their property would never be
touched on the other side, and assuring
them that by giving up this property the
3/15/89
Page 9
AGENDA ACTION TAKEN
Joint Meeting - Continued.
City would definitely be developing it as
a parking lot; and it would be a benefit
to their property as well.
Mayor Teglia suggested that Mr. Penna
give copies of any notes taken during
these discussions with Mr. Lewis to the
City.
Mr. Robert Giorgi stated that he was a
local merchant on Baden Ave., and had
always thought that the Council did not
want a parking structure on Grand Avenue
- rather to encourage retail businesses.
He stated that he did not agree in
tearing down old buildings which added to
the historical nature of the street, and
replace them with parking structures.
He spoke of a study by the Merchants
Assn. in 1987 that had identified the
problem in the area as that of image, and
then to improve the parking.
He stated that he was amazed at this pro-
posal, when the Commission had a plan for
lot 5, 3, 8, 10, and the Cypress and
Miller lots which were perfect lots to
put structures on.
He stated that he was on the
Revitalization Committee, and questioned
what the Kehoes were supposed to do with
their project for revitalization, which
was about to be approved by the
Committee.
Mayor Teglia stated that her feeling would
be to hold those funds for them.
Discussion followed: that this was a two
fold structure that could be done with or
without the parking authority; that along
with stimulation of the area, went
parking, and this $5,000,000 project
would not alleviate that problem; that a
meeting had to be held with the merchants
of the area whose livelihood would be
affected; the Council was giving this
proposal to the Commission for them to
analyze and present recommendations at a
future meeting, etc.
3/15/89
Page 10
AGENDA ACTION TAKEN
2. Joint Meeting - Continued.
(Cassette No. 3)
Mr. Kehoe stated that he was a former
member of the San Mateo City Council,
and had solicited bids for the beautifi-
cation of his property - now he was con-
cerned about the Council withholding the
revitalization funds and keeping the pro-
ject in limbo. He stated that the family
was very concerned and wanted reassurance
that they could go ahead with the
project.
Mr. Dennis Rosaia, D&M Liquors, stated
that he was currently on the
Revitalization Committee, and a former
Parking Place Commissioner, and was fami-
lar with the problems being discussed
tonight. He stated that the plan had
merit, however, it was not set in
concrete and there may be ways to effect
it without tearing down the Kehoe
building.
Parking Place Commissioner Maltoni stated
that the Commission was not against rede-
velopment, however, there had not been
time to digest the information, and hoped
that there would be public hearings on
the project.
Mr. Dell'Angela complimented the Council
and staff for a thorough job of research
on the proposal.
He stated that he had heard concerns over
the land use decisions being made down-
town, and the Council should look closely
at the uses occurring, i.e., wholesale
businesses in the area, which he felt was
not compatible to the area.
He stated that his client, South City
Ford, would welcome a private commercial
parking structure being built here or in
another location.
Mrs. Kehoe stated that the City should
concentrate on a larger structure to
really address the parking needs.
M/S De Tomasi/Maltoni - To adjourn the
Parking Place Commission meeting.
3/15/89
Page 11
AGENDA ACTION TAKEN
ADJOURNMENT:
Carried by unanimous voice vote.
M/S Addie§o/Drago - To adjourn the
Council meeting.
Carried by unanimous voice vote.
Time of adjournment was 10:05 p.m.
RESPECTFULLY SUBMITTED,
Barbara A. Battaya, City C<~rk
City of South San Francisco
The entries of this Council meeting show the action taken by the City Council 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.
3/15/89
Page 12