HomeMy WebLinkAbout2017-07-18 e-packet@2:00Tuesday, July 18, 2017
2:00 PM
City of South San Francisco
P.O. Box 711 (City Hall, 400 Grand Avenue)
South San Francisco, CA
City Hall, City Manager's Conference Room
400 Grand Avenue, South San Francisco, CA
Oversight Board to the Successor Agency to the former
Redevelopment Agency
Regular Meeting Agenda
July 18, 2017Oversight Board to the Successor
Agency to the former
Redevelopment Agency
Regular Meeting Agenda
NOTICE IS HEREBY GIVEN, pursuant to Section 54956 of the Government Code of the State of
California, the Oversight Board for the Successor Agency to the City of South San Francisco
Redevelopment Agency will hold a Regular Meeting on Tuesday, July 18, 2017, at 2:00 p.m., in the
Large Conference Room, Top Floor at City Hall, 400 Grand Avenue, South San Francisco, California.
In accordance with California Government Code Section 54957.5, any writing or document that is a
public record, relates to an open session agenda item, and is distributed less than 72 hours prior to a
regular meeting will be made available for public inspection in the City Clerk ’s Office located at City
Hall. If, however, the document or writing is not distributed until the regular meeting to which it relates,
then the document or writing will be made available to the public at the location of the meeting, as listed
on this agenda. The address of City Hall is 400 Grand Avenue, South San Francisco, California 94080.
In compliance with Americans with Disabilities Act, if you need special assistance to participate in this
meeting, please contact the South San Francisco City Clerk ’s Office at (650) 877-8518. Notification 48
hours in advance of the meeting will enable the City to make reasonable arrangements to ensure
accessibility to this meeting.
Page 2 City of South San Francisco Printed on 7/13/2017
July 18, 2017Oversight Board to the Successor
Agency to the former
Redevelopment Agency
Regular Meeting Agenda
Chairperson: Selected by:
Neil Cullen Largest Special District of the type in H&R
Code Section 34188
Vice Chair: Selected by:
Michael Krause San Mateo County Superintendent of Schools
Assistant Superintendent, Business Services
South San Francisco Unified School District
Alternate: Vacant
Superintendent, South San Francisco Unified School District
Board Members: Selected by:
Mark Addiego Mayor of the City of South San Francisco
Councilmember, City of South San Francisco
Barbara Christensen Chancellor of California Community College
Director of Community/Government Relations,
San Mateo County Community College District
Reyna Farrales San Mateo County Board of Supervisors
Deputy County Manager, San Mateo County
Paul Scannell San Mateo County Board of Supervisors
(Public Member)
Adena Friedman Mayor of the City of South San Francisco
Senior Planner, City of South San Francisco
Counsel
Craig Labadie
Advisory:
Marian Lee –Assistant City Manager, City of South San Francisco
Richard Lee – Finance Director, City of South San Francisco
Alex Greenwood – Director of Economic and Community Development, City of South San Francisco
Jason Rosenberg – City Attorney, City of South San Francisco
Krista Martinelli – City Clerk, City of South San Francisco
Page 3 City of South San Francisco Printed on 7/13/2017
July 18, 2017Oversight Board to the Successor
Agency to the former
Redevelopment Agency
Regular Meeting Agenda
Call To Order.
Roll Call.
Agenda Review.
Public Comments
Comments from members of the public on items not on this meeting agenda. The
Chair may set time limit for speakers. Since these topics are non-agenda items, the
Board may briefly respond to statements made or questions posed as allowed by the
Brown Act (Government Code Section 54954.2). However, the Board may refer
items to staff for attention, or have a matter placed on a future agenda for a more
comprehensive action report.
MATTERS FOR CONSIDERATION
Motion to approve the Minutes from the meeting of May 16, 2017.1.
Report regarding a resolution approving the retention by the City of South San
Francisco of certain former Redevelopment Agency real property assets pursuant to
the approved Long Range Property Management Plan and Health and Safety Code
Section 34191.5, upon the payment of $7,180,000, with the proceeds to be distributed
to the local taxing entities. (Marian Lee, Assistant City Manager and Jason
Rosenberg, City Attorney)
2.
Resolution approving the retention by the City of South San Francisco of certain
former Redevelopment Agency real property assets pursuant to the approved Long
Range Property Management Plan and Health and Safety Code Section 34191.5, upon
the payment of seven million one hundred eighty thousand dollars ($7,180,000), with
the proceeds to be distributed to the local taxing entities.
2a.
FUTURE AGENDA ITEMS
636 El Camino Real Commercial Space.
Adjournment.
Page 4 City of South San Francisco Printed on 7/13/2017
City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:17-638 Agenda Date:7/18/2017
Version:1 Item #:1.
Motion to approve the Minutes from the meeting of May 16, 2017.
City of South San Francisco Printed on 7/3/2017Page 1 of 1
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City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:17-627 Agenda Date:7/18/2017
Version:1 Item #:2.
Report regarding a resolution approving the retention by the City of South San Francisco of certain former
Redevelopment Agency real property assets pursuant to the approved Long Range Property Management Plan
and Health and Safety Code Section 34191.5,upon the payment of $7,180,000,with the proceeds to be
distributed to the local taxing entities.(Marian Lee,Assistant City Manager and Jason Rosenberg,City
Attorney)
RECOMMENDATION
Staff recommends the Oversight Board adopt a resolution approving a purchase price of $7,180,000 and
retention by the City of certain former Redevelopment Agency real property assets (former PUC
parcels:APN 093-312-050,APN 093-312-060,APN 011-326-030,APN 011-322-030)pursuant to the
approved Long Range Property Management Plan and Health and Safety Code Section 34191.5.
BACKGROUND/DISCUSSION
Consistent with the approved Long Range Property Management Plan (LRPMP),on February 8,2017,the City
of South San Francisco (“City”)adopted Resolution 16-2017 approving the transfer of certain Redevelopment
Properties from the Successor Agency to the Redevelopment Agency of the City of South San Francisco
(“Successor Agency”)to the City.Subsequently,on February 21,2017,the Oversight Board for the Successor
Agency to the Redevelopment Agency of the City of South San Francisco (“Oversight Board”)adopted a
resolution approving the transfer of the Redevelopment Properties from the Successor Agency to the City.
Subsequently,the Successor Agency and City executed grant deeds transferring all remaining the
Redevelopment Properties to the City in order to carry out the terms of the LRPMP.
As discussed previously,the City is interested in retaining four of the nineteen Redevelopment Properties in
order to construct the City’s proposed Community Civic Campus project at the corner of El Camino Real and
Chestnut Avenue.These four properties are part of the former PUC parcels and are identified in the LRPMP as
property numbers #2,#3,#6,,and the Assessor Parcel Numbers are:APN 093-312-050,APN 093-312-
060,APN 011-326-030,and APN 011-322-030.The City’s plan in developing the potential Community Civic
Campus project is consistent with the LRPMP’s stated goal for the PUC properties by adopting a strategy most
likely to maximize the long-term revenue to the taxing agencies while also maintaining the vision expressed in
the former Redevelopment Agency’s El Camino Corridor Project Plan,the El Camino Real/Chestnut Avenue
Area Plan and the City’s General Plan.
Appraisals prepared by a qualified commercial real estate appraiser,Watts,Cohn and Partners Inc.in December
2016 determined that the fair market price of the subject PUC Properties based on the highest and best uses
contemplated in the LRPMP,after reasonable deductions,is $7,180,000.The reasonable deductions were for
demolition,allocable share of infrastructure costs for the planned extension of Oak Avenue,and required
environmental cleanup.The allocable share of the Oak Avenue extension infrastructure costs is based on
projected trip generation from the subject parcels,and the deduction for environmental cleanup is based on
estimates of soil remediation costs for the PUC Properties.The City offered $7,180,000 in order to retain the
PUC Properties for use as the City’s Community Civic Campus Project.The offer of the said amount was
presented to the Oversight Board and was accepted with the addition of the following two conditions:
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1.The City will commit to including the Oak Avenue extension project in the City’s Capital Improvement
Plan,making best reasonable efforts to prepare a full funding plan (including a $5,370,000 set aside)for
the total cost of the extension which is estimated at $15,500,000 in 2017 dollars,and building the
project subject to necessary processes and approvals, including environmental and public discussions.
2.If the final costs of environmental remediation undertaken by the City on the PUC Properties costs less
than $790,000,the cost estimate for soil remediation,the City will distribute the difference between the
$790,000 remediation estimate and the final remediation costs to the taxing entities.
Per Senate Bill 107,California Health and Safety Code section 34191.5(f),actions to implement the disposition
of property pursuant to an approved LRPMP does not require review by the Department of Finance (DOF).
Adoption of this resolution would be consistent with the LRPMP.The associated resolution approves the
retention of certain former Redevelopment Agency assets by the City of South San Francisco at fair market
value based on the highest and best use contemplated by the LRPMP.
Subject to the completion of environmental review pursuant to the California Environmental Quality Act
(CEQA)and approval of the appropriate environmental document,the City will pay the purchase price of
$7,180,000 to the taxing entities according to Section 5 of the Amended and Restated Master Agreement for
Taxing Entity Compensation.
CONCLUSION
Consistent with prior Oversight Board direction,City staff recommends adoption of a resolution approving the
retention by the City of South San Francisco of certain former Redevelopment Agency real property assets
pursuant to the approved Long Range Property Management Plan and Health and Safety Code Section 34191.5,
upon the payment of $7,180,000, with the proceeds to be distributed to the local taxing entities.
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City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:17-626 Agenda Date:7/18/2017
Version:1 Item #:2a.
Resolution approving the retention by the City of South San Francisco of certain former Redevelopment
Agency real property assets pursuant to the approved Long Range Property Management Plan and Health and
Safety Code Section 34191.5,upon the payment of seven million one hundred eighty thousand dollars
($7,180,000), with the proceeds to be distributed to the local taxing entities.
WHEREAS,on June 29,2011,the Legislature of the State of California (the “State”)adopted Assembly Bill x1
26 (“AB 26”),which amended provisions of the State’s Community Redevelopment Law (Health and Safety
Code sections 33000 et seq.); and
WHEREAS,pursuant to AB 26 and the California Supreme Court decision in California Redevelopment
Association,et al.v.Ana Matosantos,et al.,which upheld AB 26,the former Redevelopment Agency of the
City of South San Francisco was dissolved on February 1, 2012; and
WHEREAS,the City of South San Francisco (“City”)became the Successor Agency to the Redevelopment
Agency of the City of South San Francisco (“Successor Agency”); and
WHEREAS,the California Legislature subsequently amended AB 26 by the passage of AB 1484 and AB 107,
and these statutes are collectively referred to as the “Dissolution Law”; and
WHEREAS,pursuant to Health and Safety Code Section 34191.5(c)(2)(C),property shall not be transferred to
a successor agency,city,county or city and county,unless a Long Range Property Management Plan (LRPMP)
has been approved by the Oversight Board and the California Department of Finance (“DOF”); and
WHEREAS,pursuant to the Dissolution Law,the Successor Agency prepared an LRPMP,which was approved
by a resolution of the Oversight Board for the Successor Agency to the Redevelopment Agency of the City of
South San Francisco (“Oversight Board”)on May 21,2015,and was approved by the DOF on October 1,2015;
and
WHEREAS,pursuant to the Dissolution Law and the LRPMP,certain real properties located in the City of
South San Francisco,that were previously owned by the former Redevelopment Agency,were transferred to
the Successor Agency (“Agency Properties”); and
WHEREAS,the LRPMP establishes a plan for transferring nineteen (19)Agency Properties from the Successor
Agency to the City for development consistent with an approved redevelopment plan (the “Redevelopment
Properties”)pursuant to Health and Safety Code section 34191.5(c)(2)and in accordance with the requirements
set forth in the LRPMP; and
WHEREAS,on October 18,2016,the City of South San Francisco entered into an Amended and Restated
Master Agreement for Taxing Entity Compensation (“Compensation Agreement”)with the various local
agencies who receive shares of property tax revenues from the former redevelopment project area (“Taxing
Entities”); and
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WHEREAS,the Compensation Agreement provides that upon approval by the Oversight Board of the sale
price,and consistent with the LRPMP,the proceeds from the sale of any of the Agency Properties will be
distributed to the Taxing Entities in accordance with their proportionate contributions to the Real Property Tax
Trust Fund for the former Redevelopment Agency; and
WHEREAS,on February 8,2017,the City adopted Resolution 16-2017 approving the transfer of the
Redevelopment Properties from the Successor Agency to the City and in accordance with the requirements set
forth in the LRPMP; and
WHEREAS,on February 21,2017,the Oversight Board adopted a resolution approving the transfer of the
Redevelopment Properties from the Successor Agency to the City; and
WHEREAS,consistent with the LRPMP and the Oversight Board resolution,the Successor Agency and City
executed and recorded grant deeds transferring the Redevelopment Properties to the City; and
WHEREAS,four (4)of the nineteen (19)Redevelopment Properties,which are commonly known as the former
PUC properties,are identified in the LRPMP for redevelopment activities consistent with the Redevelopment
Plan and the LRPMP, and more specifically identified in Exhibit A (“PUC Properties”); and
WHEREAS,the City,in partnership with the Grand Boulevard Initiative,conducted a market analysis for the
site and prepared a development program that would be consistent with the Redevelopment Plan and the El
Camino Real Chestnut Area Specific Plan; and
WHEREAS,at the time of LRPMP preparation,the City and the consultants determined that a master-
developer approach would yield the highest and best uses of the PUC Properties; and
WHEREAS,the City is interested in retaining the PUC Properties in order to construct the City’s proposed
Community Civic Campus Project; and
WHEREAS,the City’s goal of developing a Community Civic Campus Project on the PUC Properties would
achieve the same goals as the master developer approach identified in the LRPMP,which is to,“adopt a
strategy most likely to maximize the long-term revenue to the taxing agencies while also maintaining the vision
expressed in the former Redevelopment Agency’s El Camino Corridor Project Plan,the El Camino
Real/Chestnut Avenue Area Plan and the City’s General Plan; (LRPMP p. 68)”; and
WHEREAS,the LRPMP also contains the following additional statements regarding the objectives for the PUC
Properties:
·“The City of South San Francisco has identified the intersection of El Camino Real and Chestnut
Avenue as a key opportunity site for new development and economic revitalization.The El Camino
Real/Chestnut Avenue Area Plan,adopted in 2011,establishes a compelling long-term vision for the
area as a new mixed-use neighborhood with residential,retail,and civic uses at a range of densities,
along with public plazas and open space that benefit the broader community.” (LRPMP, p. 68)
·“Strategic Economics worked with Successor Agency staff to devise a development program that is
both market driven and consistent with the community’s goals for the study area as expressed in the El
Camino Real/Chestnut Avenue Area Plan and the goals of the El Camino Real Project Plan.The
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Camino Real/Chestnut Avenue Area Plan and the goals of the El Camino Real Project Plan.The
development program assumes redevelopment of all Successor Agency-owned parcels in a manner
consistent with a master developer approach.In this approach,the property is redeveloped with the goal
of maximizing the combined potential of all of the parcels”…1)economies of scale;2)more efficient
site design; 3) development of all properties. (LRPMP, pp. 71-72)
·In the event the Successor Agency elected to sell individual properties,Site C is the only site that would
be developed consistent with the Agency’s El Camino Corridor Project Plan,the El Camino
Real/Chestnut Avenue Area Plan and the City’s General Plan.Site A1 would most likely be purchased
by a business that would retain the existing use.Site A2 would not be developed or sold given the site’s
development constraints and environmental condition.The size and accessibility constraints of Site A3
and Site B would most likely preclude the development and sale of these properties as well.Such
outcomes waste a tremendous opportunity to develop hundreds of housing units in a transit oriented
area.” (LRPMP, pp. 71-72)
WHEREAS,the development of the Community Civic Campus Project,which would include a new joint
library and recreation center,police station,and other civic uses,would be consistent with the stated goals of
the LRPMP and maximize the development of all properties; and
WHEREAS,appraisals completed in December 2016 by a qualified commercial real estate appraiser
determined that the total fair market value of the PUC Properties based on the highest and best uses
contemplated in the LRPMP,after reasonable deductions for environmental cleanup and infrastructure costs,is
seven million one hundred eighty thousand dollars ($7,180,000); and
WHEREAS,the deduction for an allocable share of infrastructure costs for the planned extension of Oak
Avenue is based on projected trip generation from the subject parcels,which is an accepted and reasonable
allocation methodology; and
WHEREAS,the deduction for environmental cleanup is based on estimates of soil remediation costs for the
PUC Properties; and
WHEREAS,the City has offered to pay seven million one hundred eighty thousand dollars ($7,180,000)in
order to retain the PUC Properties for use as the City’s Community Civic Campus Project; and
WHEREAS,the retention of the properties and the implementation of the amended LRPMP through this
Resolution itself does not commit the Oversight Board to any action that may have a significant effect on the
environment and thus does not constitute a “project”subject to the requirements of the California
Environmental Quality Act (“CEQA”), pursuant to CEQA Guidelines section 15061(b)(3).
NOW,THEREFORE,BE IT RESOLVED that the Oversight Board of the Successor Agency to the
Redevelopment Agency of the City of South San Francisco does hereby take the following actions:
(1)Finds and determines that the above recitals are true and correct and the proposed actions are consistent
with the Long Range Property Management Plan.
(2)Subject to the completion of environmental review pursuant to the California Environmental Quality
Act (CEQA)and approval of the appropriate environmental document,the Oversight Board approves a
purchase price of seven million one hundred eighty thousand dollars ($7,180,000)for the Agency Properties
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File #:17-626 Agenda Date:7/18/2017
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purchase price of seven million one hundred eighty thousand dollars ($7,180,000)for the Agency Properties
identified in the LRPMP as properties #2,#3,#6,and #7,and as also described in Exhibit A (the “PUC
Properties”).
(3)Approves the retention by the City of South San Francisco of the Agency Properties identified in the
LRPMP as properties #2,#3,#6,and #7,and as also described in Exhibit A.The retention of the PUC
Properties by the City is conditioned on the following terms:
(A)Pending compliance with CEQA,the City will pay a total purchase price of seven million one
hundred eighty thousand dollars ($7,180,000)for the PUC Properties.The sale proceeds will be
distributed to the taxing entities according to Section 5 of the Amended and Restated Master
Agreement for Taxing Entity Compensation.Nothing in this Resolution shall be deemed to pre-
commit the City Council to retaining the PUC Properties until the City Council formally approves
the issuance of a Notice of Decision or any other appropriate environmental review required under
the CEQA.
(B)Pending compliance with CEQA,the City will commit to including the Oak Avenue extension project
in the City’s Capital Improvement Plan,making reasonable efforts to prepare a full funding plan
(including a five million,three hundred and seventy thousand dollars ($5,370,000)set aside)for the
total cost of the extension which is estimated at fifteen million five hundred thousand dollars
($15,500,000)in 2017 dollars,and building the project subject to necessary processes and
approvals, including environmental review and public discussions.
(C)If the final costs for any environmental remediation undertaken by the City on the PUC Properties is
less than seven hundred and ninety thousand dollars ($790,000),the cost estimate for soil
remediation,the City will distribute the difference between the seven hundred and ninety thousand
dollar ($790,000)soil remediation estimate and the final remediation costs to the taxing entities
according to Section 5 of the Amended and Restated Master Agreement for Taxing Entity
Compensation.
(D)Prior to the retention of the PUC Properties and the distribution of the net unrestricted proceeds from
the sale price to the taxing entities,the City shall be given the opportunity to obtain a title free and
clear of all liens,encumbrances,conditions,covenants,and restrictions that would affect the
marketability or value of the Property.This condition may only be waived if the City expressly
agrees to acquire title to the property subject to certain exceptions which may appear on the title
report.
(E)In the event that the City retains the PUC Properties and pays a total purchase price of seven million one
hundred eighty thousand dollars ($7,180,000),upon distribution of the sale price to the taxing
entities,the PUC Properties will no longer be subject to the provisions of the Amended and Restated
Master Agreement for Taxing Entity Compensation,and the City will be entitled to retain any future
revenue received from any of the PUC Properties.The City will accept the properties subject to any
existing leases as of the date of this resolution.
(4)Authorizes and directs the City Manager and any designees to execute and record any and all
documents,and take all actions necessary to implement this intent of this Resolution,including without
limitation the execution of Grant Deeds,Quitclaim Deeds,Certificates of Acceptance,and all other necessary
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instruments, as applicable, subject to approval as to form by the City Attorney and Oversight Board Counsel.
(5)Finds that the adoption of this Resolution itself does not commit the City of South San Francisco or
Oversight Board to any action that may have a significant effect on the environment and thus does not
constitute a “project”subject to the requirements of the California Environmental Quality Act (“CEQA”),
pursuant to CEQA Guidelines section 15061(b)(3).
*****
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Exhibit A
PUC Properties
LRPMP Property # Address APN
2
Former PUC Properties
093-312-050
3 093-312-060
6 011-326-030
7 1 Chestnut Avenue 011-322-030