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HomeMy WebLinkAboutRDA Minutes 2009-03-11~~;'C Ei 'HN ~, ~~ ~~~ ~ ~ L ICJ S ~. __ ~- ~-~- ~ FZEDEVEL(1~'ME1~ T AC Ei~l C;Y v ~ o ,_ CITE' OF SOU T ~T SAN FRANCISCO ~`~LIFOR~~~ RE G U L,AR :MEETING MuivICIPAL SERVICES BUILDING COMMUNITY ROOM WEDNESDAY MARCH 11, 2009 6:30 I'.M. CALLED TO ORDER: 6:32 n.m. ROLL CALL : Present: Boardmembers Garbarino, Gonzalez and Mullin, Vice Chairman Addiego and Chairwoman Matsumoto. Absent: None. AGENDA REVIEW None. PUBLIC COMMENTS CONSENT CALENDAR 1. Motion to approve the minutes of February 11, 2009 and February 18, 2009. 2. Motion to approve the expense claims of March 11, 2009 in the amount of $1,900,471.25. 3. Resolution No. 3-2009 approving a loan for the remodel of Bronstein's Music Store, 363 Grand Avenue, in an amount not to exceed $350,000 and authorizing the Executive Director to execute loan documents. 4. Resolution No. 4-2009 awarding an Environmental Consulting Services Contract to Technology, Engineering & Construction, Inc. (TEC), of South San Francisco, CA, in an amount not to exceed $297,114.63 for the new Caltrain Station site located at 296 Airport Boulevard (Project No. 58-13232-0320). 5. Resolution No. 5-2009 authorizing the expenditure of up to $300,000 from the Low-and Moderate-Income Housing Fund to subsidize the purchase of up to six Below Market Rate Units at City Lights, adopting findings in connection therewith, and approving an amendment to the Agency's Low-Moderate Income Housing Fund Operating Budget. Motion - Boardmember Garbarino/Second -Boardmember iviuliin: to approve Consent Calendar Items Nos. 1, 2, 4 and 5. Unanimously approved by voice vote. item 3: Boardmember Gonzalez requested more information on the item. Manager of ~-lousing and Redevelopment Fragoso explaired the loan would take the for: of a business assistance loan from the Redevelopment Agency ire the Downtown Project Area. Such loans permit the City to retain local, regionally and nationally established businesses. She noted that Bronstein's ownersR_ichard Walker and Don Edwards were present. Boardmember Gonzalez stated he was excited about the improvement to the 300 block and questioned when repayment would begin and whether the loan payment would come back to the Agency. Manager Fragoso responded that payments would begin after construction was completed and construction was expected to take several months. The loan was standard at 30 years with a 4% interest rate. Payments would go right back into the Agency's budget. Chairwoman Matsumoto stated she would like to add the condition that anon-cost prohibitive green construction element be incorporated in the project. Director of Economic and Community Development Van Duyn stated the Agency could direct staff to work with the owners to ensure that green objectives were included as part of the design, but he didn't believe the loan would have to be modified to this effect. Manager Fragoso stated staff would work with the owners and the Building Division to make sure green features were included. Chairwoman Matsumoto requested that future loans of this type include a suggestion that business owners pursue a marketing class. Vice Chairman Addiego observed the owners of Bronstein's knew how to market, but the Chairwoman's suggestion more generally applied to future loans of this type was a good one. Manager Fragoso stated staff was looking into offering marketing and business courses through the Chamber. Counsel Mattas clarified the request from the Agency was that staff work with the owners and designers to include green features in construction; however this condition did not need to be incorporated into the loan agreement. The Agency agreed. Motion -Boardmember Gonzalez/Second -Boardmember Garbarino: to approve Resolution 3-2009. Unanimously approved by voice vote. REGULAR REDEVELOPMENT AGENCY MEETIIv'G MARCH 11, 2009 MINUTES PAGE 2 PUBLIC HEARING 6. Nvatt Place Hotel Vijay Patei/applicant SRI Krishna Enterprises/owner X50 Gateway Blvd P07-0073: PP07-0001, SIGN07-0047, VAF~07-0004, TDM08-0003, DR07-0046 & MND07-0003 Precise Plan, Type "C" Sign Permit, Design Review, Transportation Demand Management Plan & Variance applications fora 166 room, eight-story Hyatt Place Hotel, at 550 Gateway Boulevard; in the Gateway Specific Plan District in accordance with SSFMC chapters 20.57, 20.85, 20.86 & 20.120. Continued from regular meetings of November 12, 2008, December 10, 2008, January 14, 2009 and February I1, 2009. Public Hearing opened: 6:45 p.m. Senior Planner Beaudin presented the staff report reintroducing the proposed application for a hotel development at 550 Gateway Blvd. The applicant proposed a 166 room Hyatt Place Hotel and was originally scheduled for hearing before the Agency on November 12, 2008. The Hearing was continued to December 1.0, 2008 and heard at that time. At the December hearing, the Agency provided staff and the applicant :~~ith a list of follow-up items, including the Transportation Demand Management ("TDM") Plan, local hiring, sustainable design and a table top model that would demonstrate how the proposed hotel would fit into the Gateway area neighborhood. The staff report focused on these outstanding issues and progress made since December. Preliminary TDM: Staff updated the Preliminary TDM and included it as an attachment to the staff report. A final TDM Plan would be submitted by the applicant during the Building Permit process. Local Hiring: The agreement, which had been signed by the applicant, included local hiring provisions related to both construction and operations. Construction terms established the applicant would use best efforts to hire 15% local. Operations terms extended out five (5) years and applied to 50% of hotel staff. Sustainable Design: The applicant would address this topic, but staff pointed to condition of approval seven (7), which would ensure the incorporation of green features in the overall design. Table Top Model: The applicant would explain why no model was provided. Senior Planner Beaudin closed by stating that if the Agency did not approve the project, staff believed a finding without prejudice was warranted based upon the Gateway Specific Plan. It was no longer prudent to continue the hearing. Applicant Vijay Patel addressed the Agency and provided updates with respect to the outstanding items as follows: REGULAR REDEVELOPMENT AGENCY MEETING MARCH 11, 2009 MINUTES PAGE 3 Table Top Model: The Preliminary TDM had been updated and the Local Hiring Agreement was not challenging and had been signed. Mr. Patel then explained here had been slight changes to the design pursuant to Hyatt. Corporate's requests. After three months of back aild forth on these subjects, Hyatt had finally approved the plan as presented in the staff report. Due the extended nature of these negotiations; tivhich ended. just 10 days ago, the Table Tcp Model had ilot been prepared. Sustainable Design: Mr. Patel advised he had investigated energy efficiencies and met with companies that do the work. He stated the size of the roof presented certain limitations to pursuing energy efficiencies, but two (2) of the three (3) concerns could be accomrr~odated. A battery back-up system would take care of emergency egress lighting in the event of a power loss: In addition 59 solar panels situated along the roof line were proposed. Public Hearing closed: 7:00 p.m. Boardmember Gonzalez stated he was prepared to deny the application with prejudice to permit the applicant to work on a model. He questioned the amount of time necessary to prepare a model. Mr. Patel advised that depending on the size and scale it would take approximately four (4) - six (E) weeks to prepare a model. Boardmember Garbarino stated he was ready to deny the application with prejudice and provide Mr. Patel with as much time as necessary to resolve the remaining issues. Boardmember Mullin stated approval for the overall direction and inclusion of the solar piece. He noted, however, that he would like the benefit of staff's review of the sustainability upgrades. He further stated that although he was not entirely wed to the concept of a model, he would prefer to see one. Accordingly, he encouraged Mr. Patel to move forward and come back before the Agency when the outstanding issues were resolved. Boardmember Garbarino commended Mr. Patel for moving forward with the project given the current economic climate. He stated that production of a model was significant because when approvals had been granted based on conceptual rendering in the past, the final project did not yield the desired result. Vice Chairman Addiego appreciated the majority of the Agency's request for a model, but stated he was more interested in the direction on hiring requirements for employees of the hotel. He noted the local hiring terms pertained to San Mateo County. He questioned the benefit of excluding residents of San Francisco. He commented that he would prefer a smaller local hiring requirement confined to residents of South San Francisco. Counsel Mattas explained the definition of San Mateo County set forth in the agreement applied to both criteria, including construction and operations. San Mateo County was selected to address the construction issue. He noted that if the Agency desired to modify the percentage and the geographic designation for operations, this change could be made. REGULAR REDEVELOPMENT AGENCY MEETING MARCH 11, 2009 MINUTES PAGE 4 Mr. Patel noted that his Company had operated the Hampton Inn in the Gateway area for the past seven (7) years. Only one (1) employee of the Hampton Inn lived outside of San Mateo County and 97% of the employees lived within a seven (7) mile _radius of the hotel. Based upon 1v1r. Patel's comments, Vice Chairman Addiego stated that local hiring criteria for operations might be superfluous. it might be better to strike the language ar~d trust in market forces. Counsel Mattas stated that if the Agency were to deny the application without prejudice the applicant could come back when prepared to provide the additional detail mentioned, including a table top model and enhanced information relating to the sustainability features. The Agency could further provide staff with direction on revisions to the Local Hiring Agreement. Chairwoman Matsumoto recommended maintaining the portion of the Local Hiring Agreement pertaining to construction, but eliminating the portion pertaining to operations. Mr. Patel stated that he would be agreeable to this revision. Chairwoman Matsumoto questioned the procedure for bringing the applicant back if a table top model could be prepared within four (4) to six (6) weeks. She also requested that the applicant not be charged an additional application fee. Counsel Mattas advised that if the Agency denied the application without prejudice, the time period would start anew upon the applicant's submission of new data. Accordingly, a public hearing would be noticed and the item would be brought back before the Agency. Counsel Mattas further confirmed that in this instance, staff would not charge the applicant to resubrr~it his application. Mr. Patel stated that as an applicant he had done everything requested. He understood the importance of the model and respected the need for it, but noted he was facing a time constraint imposed by Hyatt Hotels and could be close to missing the opportunity to work with Hyatt on the project. Counsel Mattas advised the City could be prepared to hear the application at the April 8th regular meeting of the Agency; however, it would be up to the developer to have a model prepared by this time. Vice Chairman Addiego stated he did not need to see a model, but three (3) of the Agency members wanted one. Boardmember Gonzalez stated a model was important because it would provide the community with insight as to the planned development. Boardmember Garbarino stated the model did not have to include topography and landscaping. Mr. Patel requested an approval with conditions. REGULAR REDEVELOPMENT AGENCY MEETING MARCH 1 1, 2009 MINUTES PAGE 5 Boardmember Mullin stated his primary concern was not the lack of a model, but, rather, the sustainability iss~~Ps that had just been presented that evening. Chairwoman Matsumoto req~~ested file Board's prcfcrence. Vice Chairmian Addiego stated that although he would make a mctior~ to approve, it appeared as though the Board was leaning in favor of denial of the application without prejudice. Counsel Mattas stated he understood the Agency to be in favor of a finding of denial without prejudice with direction to staff that the project come back before the Agency when sustainability design features could be better explained and a model is prepared by the applicant. In addition, the Local Hiring Agreement would be modified to maintain the construction terms as drafted, but the operations piece would be eliminated. Motion -Boardmember Mullin/Second -Boardmember Gonzalez: to deny the application without prejudice and to direct staff that the project come back before the Agency when sustainability design features could be better explained and a model is prepared by the applicant. In addition, the Local Hiring Agreement would be modified to maintain the construction terms as drafted, but the operations piece would be eliminated. Unanimously approved by voice vote. Recess: 7:29 p.m. Meeting Resumed: 8:40 p.m. Chairwoman Matsumoto recognized Koray Ergur who had submitted a public comment card pertaining to Closed Session Item No. 9. Mr. Ergur addressed the Agency and advised he was prepared to use the justice system to hold staff and others responsible for actions pertaining to the property located at 938 Linden Avenue. Recess: 8:45 p.m. Meeting Resumed: 8:55 p.m. CLOSED SESSION Prior to entering Closed Session it was announced that Vice Chairman Addiego would not participate in discussions pertaining to Closed Session Items 9 and 10 due to potential conflict of interest. Closed Session opened: 8:55 p.m. Open Session resumed: 10:45 p.m. REGULAR REDEVELOPMENT AGENCY MEETING MARCH 11, 2009 MINUTES PAGE 6 7. Conference with Real Property Negotiator (Pursuant to Government Code section 54956.8) Property: 415-417 Grand Avenue. Negotiating Parties: Dalai Metwalli and SSF RDA Agency negotiator: Marty Van Duyn. Under Negotiation: Terms and Conditions for Purchase of Property. Report Out of Closed Session: Direction given. 8. Conference with Legal Counsel: Existing Litigation (Pursuant to Government Code section 54956.9(a)) South San Francisco Redevelopment Agency v. Clear Channel. Report Out of Closed Session: Direction given. 9. Conference with. Real Property Negotiator (Pursuant to Government Code section 54956.8) Property: 938 Linden Avenue. Negotiating Parties: 15SSF DEV, LLC and SSF RDA Agency negotiator: Marty Van Duyn. Under Negotiation: Terms and Conditions for Purchase of Property. Report Out of Closed Session: Direction given. 10. Conference with Real Property Negotiator (Pursuant to Government Code section 54956.8) Property: 344 Grand Avenue Negotiating Parties: St Vincent de Paul and SSF RDA Agency negotiator: Marty Van Duyn. Under Negotiation: Terms and Conditions for Purchase of Property. Report Out of Closed Session: Direction given. ADJOURNMENT Being no further business, Chairwoman Matsumoto adjoun~ed the meeting at 10:45 p.m. Submitted by: ~~~ ' to Ma ~nelli-Larson, Clerk City o outh San Francisco Approved: r ~ ~, Karyl Matsumoto, Chairwoman City of South San Francisco REGULAR REDEVELOPMENT' AGENCY MEETING MINUTES MARCH 11, 2009 PAGE 7