Loading...
HomeMy WebLinkAbout03.20.2018 SP & PC Minutes @2:00MINUTES SPECIAL MEETING y °4s "S� OF THE Cn r HOUSING STANDING COMMITTEE OF THE CITY COUNCIL AND cQLIFO PLANNING COMMISSION CITY OF SOUTH SAN FRANCISCO P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, California 94083 Meeting will be held at: Terrabay Gymnasium & Recreation Building, Poppy Room 1121 SOUTH SAN FRANCISCO DRIVE SOUTH SAN FRANCISCO, CA MONDAY, MARCH 20, 2018 2:00 p.m. Call to Order. TIME: 2:08 p.m. Roll Call. PRESENT: Mayor Pro Tem Matsumoto, Councilmember Addiego, and Planning Commissioners Faria, Wong and Alternate Committee Member Planning Commissioner Shihadeh. Public Comments. Danny Campbell thanked the Council for its work and requested the City work to obtain the greatest economic benefit from developers. He also suggested developers use local workers, pay a living wage, and partner with building trades. Councilmember Addiego stated the Committee anticipated reaching a decision today. Matters for Consideration 1. Continuation of interviews of developers for the Public Utilities Commission site, a Successor Agency to the former Redevelopment Agency of South San Francisco property, and selection of a preferred developer and alternate developer. (Mike Lappen, Economic Development Coordinator) Coordinator Lappen explained that each developer would respond to questions posed at the last meeting. He stated the developers were informed that the park fee would not be waived. He explained that the committee would go into closed session and then the developers could answer additional questions regarding price and terms. AGI /KASA Andrew Kawahara, Principal, KASA, stated they would address the request to see more renderings, architecture and retail viability. Eric Tao, President /CEO, AGI, stated their personal engagement in projects and that better projects arose when companies worked tightly with the community. He explained efforts to create multiple neighborhoods and maximize density to pay for the land. He presented the two neighborhoods designed by two different architects. Mr. Kawahara explained the materials that would be used on both the bottom and upper levels. Mr. Tao displayed the styles of the two architects. He discussed the planned condo quality apartments, density and features and amenities included in the units. Brian Baker, Vice President, AGI, explained that the general contractors were involved in pricing. Mr. Kawahara explained the viability of the proposed retail and proposed market hall. He suggested two phases of retail: 1) bringing in a food and beverage producer /distributor; and 2) producing a market hall. Mr. Baker explained that the businesses did not make a lot of money in the beginning but rely on production inside the facility rather than the retail space. Mr. Kawahara cited examples of successful production businesses. He also explained Phase 2 - the market hall. Mr. Tao stated the addition of a production facility to the retail component added to economic viability. Councilmember Addiego added that Grand Avenue was a good example. Mr. Tao stated people enjoyed the authenticity of knowing who was making their product. Mayor Pro Tern Matsumoto stated the density would bring people to the facility. Mr. Tao stated their vision was for small, organic, businesses. Mr. Kawahara stated the production facility would produce more jobs than regular retail spaces. He discussed financial benefits of their concept. Mayor Pro Tem Matsumoto asked about the two South City businesses at the farmer's market and if they could consolidate to increase their profitability. Mr. Baker stated the proposed commercial space allowed more flexibility than a traditional retail space. Planning Commissioner Wong suggested Phase 2 be completed sooner in order for the plan to be successful and questioned the feasibility of using nearly half of the space for production. He suggested more businesses rather than splitting one up. JOINT HOUSING STANDING COMMITTEE MEETING MARCH 20, 2018 MINUTES PAGE 2 Mr. Baker agreed with Planning Commissioner Wong that two small anchors would be better. Mr. Tao stated they wanted to focus on what had been working including production backing up the retail, shared facilities, and variety. Mayor Pro Tem Matsumoto inquired about the architecture designs. Mr. Baker explained the design and breezeway between the buildings. Mayor Pro Tem Matsumoto noted the design elements were both different and cohesive. Blake Griggs Properties Lauren Seaver, Vice President of Development, explained Options A, B, and C and described the childcare programs. City Attorney Rosenberg added that the handout was confidential. Andrea Osgood, Director of Real Estate Development, provided an example of a successful community childcare center in another development. Ms. Lauren added that Option A included the 5,000- square foot childcare space and there was an option to add it to Building C. Ms. Osgood discussed the nominal rental charges for daycare facilities. Councilmember Addiego asked about an after - school program. Ms. Osgood discussed after school programs they ran in Palo Alto and San Jose. She explained that resident services would handle the programming. Councilmember Addiego stated he would have questions on low level affordability versus moderate. Brad Blake, Managing Partner, explained that a company would be contracted for marketing the for -sale housing and that research had been done for the positioning of the project in the market. Councilmember Addiego asked why the for -sale portion did not work. Mr. Blake explained that the for -sale portion was less profitable than the for -rent portion and had to be spread throughout. Planning Commissioner Wong inquired on the size of the for -sale spaces. Sage Sudbury, Investment Manager, stated they would mostly be two bedrooms and that the more monumental the building was, the more popular it would be. Danny Campbell asked why the handout on price negotiations was confidential. City Attorney Rosenberg explained that the information had to remain confidential pending negotiation of the final sale price. Councilmember Addiego confirmed that it kept the information from competing developers. JOINT HOUSING STANDING COMMITTEE MEETING MARCH 20, 2018 MINUTES PAGE 3 SummerHill Housing Group Robert Freed, President/CEO, discussed their strategy for a larger condominium building and explained some of the risks related to building a condo development. He also described some of the guarantees and discounts that were part of the process. Councilmember Addiego asked if the building could be converted by floors. Mr. Freed explained that the building had to be built all at one time but could be sold in phases. Councilmember Addiego inquired on why the new condos would not be successful in the current South San Francisco housing market. Mr. Freed stated the project would be extremely successful if available for sale today. He also explained the financial background of the Park Station development. Mayor Pro Tem Matsumoto stated that the last units in Park Station sold immediately. Mr. Freed explained that the final units were sold at a deep discount and the timing of another development was put on hold out of caution. Mr. Freed added that between Park Station and Park Place they ended up about financially even. Elaine Breeze, Vice President of Development, reviewed the responses to the questions received after the last interview. She stated they wanted to maintain the vision for the site and meet the City's expectations. She noted changes and additions made to the original proposal. She presented two alternatives for discussion. Councilmember Addiego asked for clarification on the layout of the development. Ms. Breeze stated each condominium had its own driveway and included landscaping and emergency vehicle entry. Mr. Freed added that the landscaping allowed for a buffer between the existing housing and the new high density apartment buildings. Planning Commissioner Faria asked if the driveway went to Grand Avenue. Ms. Breeze stated the drive almost went into Grand Avenue. She described the transition into single family homes, proximity of the town homes to the plaza, and the proposed building sizes. She noted the proposed retail space, including parking and space for childcare parking. She. explained the additions made to the original proposal and the sizes of the for -sale town homes. Mayor Pro Tem Matsumoto asked the number of bedrooms in the townhomes and whether the BMR's (below market rate) would apply to those units. Ms. Breeze explained the townhome bedrooms and recommended the BMR's be applied to the apartment buildings. She stated they were committed to a proportionate mix. Councilmember Addiego inquired about the loss of 26 units. Ms. Breeze explained that a section of each building was cut to accommodate the land. She described the rendering and updates to the alternate proposal. She described the proposed retail component. She JOINT HOUSING STANDING COMMITTEE MEETING MARCH 20, 2018 MINUTES PAGE 4 responded to questions regarding childcare including discussions with the YMCA, outdoor play area, employee parking, and priority to project residence. She added that they would be open to work with other providers. Mayor Pro Tern Matsumoto voiced concern with the child care being in close proximity to the trash area and bicycles. Ms. Breeze explained that the updated proposal included a larger buffer between the trash and child care area. Councilmember Addiego stated he was surprised with the changes made in such a relatively short amount of time. Ms. Breeze described the ratio of low income units and priority to South San Francisco residents. She explained the proposed number of units in the alternative proposals. Mr. Freed explained that the units would be built, then leased and not for sale right away. Mayor Pro Tern Matsumoto stated the process had not worked where she lived. Mr. Freed stated that they did not plan on being a part of the selling phase of the development. He added that they would provide information to further explain the evaluation in the Closed Session. Planning Commissioner Shihadeh asked about parking for the retail space and expressed concern regarding the drop off and pick up area for the day care. Mr. Freed stated they felt there was an advantage to having the daycare in the rear. He explained that the retail space would be primarily walk up but outside shoppers would also be taken into consideration. He added that they did not want to propose a retail front that would become vacant. 2. Closed Session: Conference with Real Property Negotiators: (Pursuant to Government Code Section 54956.8) Properties: PC Site (APN 093 - 312 -060) City Negotiators: Alex Greenwood and Nell Selander Negotiating Parties: Housing Standing Committee of the City Council and Planning Commission of the City of South San Francisco and AGI /KASA, Blake Griggs, Republic Metropolitan, Sares Regis, and SummerHill Housing. Under Negotiations: Price and terms for disposition of the property. The Committee entered Closed Session at 4:15 p.m. Mayor Pro Tern Matsumoto resumed the meeting from Closed Session at 5:39 p.m. City Attorney Rosenberg reported that the Committee recommended the two finalists, AGI/KASA and Blake Griggs, to the City Council. JOINT HOUSING STANDING COMMITTEE MEETING MARCH 20, 2018 MINUTES PAGE 5 Adi ournment Being no further business the meeting was adjourned at 5:40 p.m. Submit Approved b Gabriel Rod ' uez, Deputy City Clerk Karyl k atsumoto, Mayor Pro Tem City of South San Francisco City of South San Francisco JOINT HOUSING STANDING COMMITTEE MEETING MARCH 20, 2018 MINUTES PAGE 6