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HomeMy WebLinkAbout2016-04-13 E-PACKET PEOPLE OF SOUTH SAN FRANCISCO You are invited to offer your suggestions. In order that you may know our method of conducting Council business, we proceed as follows: The regular meetings of the City Council are held on the second and fourth Wednesday of each month at 7:00 p.m. in the Municipal Services Building, Council Chambers, 33 Arroyo Drive, South San Francisco, California. The City Clerk will read successively the items of business appearing on the Agenda. As she completes reading an item, it will be ready for Council action. MARK ADDIEGO Mayor PRADEEP GUPTA Vice Mayor KARYL MATSUMOTO Councilwoman RICHARD A. GARBARINO Councilman LIZA NORMANDY Councilwoman FRANK RISSO City Treasurer KRISTA MARTINELLI City Clerk MIKE FUTRELL City Manager JASON ROSENBERG City Attorney PLEASE SILENCE CELL PHONES AND PAGERS HEARING ASSISTANCE EQUIPMENT AVAILABLE FOR USE BY THE HEARING IMPAIRED AT CITY COUNCIL MEETINGS 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. AGENDA CITY COUNCIL CITY OF SOUTH SAN FRANCISCO REGULAR MEETING MUNICIPAL SERVICES BUILDING COUNCIL CHAMBERS 33 ARROYO DRIVE SOUTH SAN FRANCISCO, CA WEDNESDAY, APRIL 13, 2016 7:00 p.m. REGULAR CITY COUNCIL MEETING APRIL 13, 2016 AGENDA PAGE 2 CALL TO ORDER ROLL CALL PLEDGE OF ALLEGIANCE AGENDA REVIEW PRESENTATIONS  Presentation of new employees. (Mich Mercado, Human Resources Manager).  Recognition of Corporal Rick Amador and Officers Patrick Ferretti, Daniel Finnegan and Daniel Zhang upon achievement of a 10851 Pin (award involving stolen vehicle recoveries). (Jeff Azzopardi, Police Chief).  National Library Week 2016 Proclamation presented to Library Board President Pat Fitzpatrick. (Valerie Sommer, Library Director). PUBLIC COMMENTS For those wishing to address the City Council on any Agenda or non-agendized item, please complete a Speaker Card located at the entrance to the Council Chamber’s and submit it to the City Clerk. Please be sure to indicate the Agenda Item # you wish to address or the topic of your public comment. California law prevents the City Council from taking action on any item not on the Agenda (except in emergency circumstances). Your question or problem may be referred to staff for investigation and/or action where appropriate or the matter may be placed on a future Agenda for more comprehensive action or a report. When your name is called, please come to the podium, state your name and address (optional) for the Minutes. COMMENTS ARE LIMITED TO THREE (3) MINUTES PER SPEAKER. Thank you for your cooperation. COUNCIL COMMENTS/REQUESTS CONSENT CALENDAR 1. Motion approving the Minutes of meetings of February 17, 2016, March 8, 2016, March 9, 2016 and March 16, 2016. 2. Motion confirming payment registers for April 13, 2016. 3. Motion to waive reading and adopt an Ordinance adding Chapter 8.66 to the South San Francisco Municipal Code Requiring the installation of video surveillance systems by certain categories of businesses in the City. (Adam Plank, Police Sergeant). 4. Motion to waive reading and adopt an Ordinance adding Chapter 8.65 to the South San Francisco Municipal Code pertaining to the installation and use of Video Surveillance Systems on City of South San Francisco property. (Valerie Sommer, Library Director). REGULAR CITY COUNCIL MEETING APRIL 13, 2016 AGENDA PAGE 3 5. Motion to waive reading and adopt an Ordinance Zoning Text Amendment to the South San Francisco Municipal Code Chapter 20.380 (“Inclusionary Housing Regulations”) to provide greater flexibility to increase the supply of affordable housing by eliminating the 20% requirement related to any residential projects of four or more units receiving financial assistance from the City. (Tony Rozzi, Senior Planner). 6. Resolution approving a second amendment to an existing Consulting Agreement with Townsend Public Affairs for Grant Consulting Services in an amount not to exceed $12,500. (Jennifer Shimabukuro, Assistant to the City Manager). 7. Resolution renaming “Grandview Drive” (between Pt. San Bruno Boulevard and East Grand Avenue) to “DNA Way”. (Sam Bautista, Principal Engineer). 8. Motion to accept the Junipero Serra Boulevard Asphalt repair/root barrier project in accordance with the plans and specifications. (Total construction cost $209,520.00). (Sam Bautista, Principal Engineer). ADMINISTRATIVE BUSINESS 9. Resolution to approve the addition of staff for the Economic and Community Development Department and approval of the amended 2015-2016 Fiscal Year Budget. (Alex Greenwood, ECD Director). 10. Resolution awarding the construction contract to Bortolussi & Watkin, Inc. of San Rafael, California, for the Gateway Assessment Improvement Project (Project No. st1302) in an amount not to exceed $468,725. (Sam Bautista, Principal Engineer). PUBLIC HEARING 11. Request to approve a Mixed-Use Senior Affordable Housing Project at 310-314 Miller Avenue and an adjacent parking lot (APN 012-311-060), collectively referred to as “300 Miller Avenue” including: Conditional Use Permit, Design Review, Bonus Residential Density, Waiver/Modifications, Parking Reduction, Environmental Consistency Analysis, Purchase and Sale Agreement, Affordable Housing Regulatory Agreement, Development Agreement and a determination that the Project is exempt from the California Environmental Quality Act (CEQA). (Ron Gerber, Housing and Redevelopment Manager). ITEMS FROM COUNCIL/COMMITTEE REPORTS ADJOURNMENT STAFF REPORT SUBJECT: Inclusionary Revision Zoning Amendment DATE: April 13, 2016 Page 2 of 2 Attachment: 1. Ordinance amending SSFMC Chapter 20 ORDINANCE NO. ________ CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO STATE OF CALIFORNIA AN ORDINANCE AMENDING THE SOUTH SAN FRANCISCO MUNICIPAL CODE CHAPTER 20.380 (“INCLUSIONARY HOUSING REGULATIONS”) TO MODIFY THE 20% AFFORDABLE HOUSING REQUIREMENT FOR RESIDENTIAL RENTAL PROJECTS CONSISTING OF FOUR OR MORE UNITS THAT RECEIVE FINANCIAL ASSISTANCE FROM THE CITY FOR THE SOLE PURPOSE OF PROVIDING ON- SITE AFFORDABLE HOUSING UNITS AS PART OF THE PROJECT WHEREAS, on April 8, 2015 the City Council for the City of South San Francisco considered and adopted the Housing Element update to the General Plan and associated Negative Declaration; and WHEREAS, the adopted Housing Element sets forth goals, policies, programs, and quantified objectives to address the City’s housing needs; and WHEREAS, the State’s Department of Housing and Community Development requires that the Housing Element be reviewed annually for progress related to the adopted programs and objectives; and WHEREAS, the Housing Element identifies Program 1-2B to evaluate the Inclusionary Housing Ordinance to promote a broad range of housing opportunities for all identifiable economic segments of the population; and WHEREAS, the City Council has expressed a desire to modify the Inclusionary Housing Ordinance to provide flexibility for City financial assistance on privately developed projects; and WHEREAS, providing the City with flexibility to provide funding exclusively for the purpose of providing on-site affordable housing units within a privately constructed housing project will assure that workforce housing units are created for the City; and WHEREAS, the City has prepared a Zoning Amendment (“Amendment”) to the City’s Zoning Ordinance, including refinements to Chapter 20.380 for the Inclusionary Housing Regulations; and WHEREAS, the Zoning Ordinance was adopted after preparation, circulation, consideration, and adoption of an Initial Study/Negative Declaration (“IS/ND”) in accordance with the California Environmental Quality Act, Public Resources Code Sections 21000, et seq. (“CEQA”), in which the IS/ND analyzed the environmental impacts of adopting the Zoning Ordinance and concluded that adoption of the Zoning Ordinance could not have a significant effect on the environment because none of the impacts required to be analyzed under CEQA would exceed established thresholds of significance; and WHEREAS, the refinements, clarifications, and/or corrections set forth in this Amendment, as they relate to the Inclusionary Housing Regulations are minor in nature, the adoption of which would not result in any new significant environmental effects or a substantial increase in the severity of any previously identified effects beyond those disclosed and analyzed in the IS/ND prepared for the Zoning Ordinance , nor do the refinements, clarifications, and/or corrections constitute a change in the project or change in circumstances that would require additional environmental review. NOW, THEREFORE, BE IT ORDAINED that based on the entirety of the Record before it, as described below, the City Council of the City of South San Francisco does hereby ORDAIN as follows: SECTION I. FINDINGS. Based on the entirety of the record as described above, the City Council for the City of South San Francisco hereby makes the following findings: I. General Findings 1. The foregoing recitals are true and correct and made a part of this Amendment. 2. The Record for these proceedings, and upon which this Amendment is based, includes without limitation, Federal and State law; the California Environmental Quality Act (Public Resources Code §§ 21000, et seq. (“CEQA”)) and the CEQA Guidelines (14 California Code of Regulations § 15000, et seq.); the South San Francisco General Plan and General Plan EIR, including all amendments and updates thereto; the South San Francisco Municipal Code; the adopted 2015-2023 Housing Element Update and IS/ND, prepared by Dyett and Bhatia; all reports, minutes, and public testimony submitted as part of the City Council’s duly noticed December 16, 2015 study session; all reports, minutes, and public testimony submitted as part of the Planning Commission’s duly noticed February 4, 2016 meeting; and all reports, minutes, and public testimony submitted as part of the City Council’s duly noticed March 9, 2016 meeting; and any other evidence (within the meaning of Public Resources Code §21080(e) and §21082.2) 3. The refinements, clarifications, and/or corrections set forth in this Amendment, as they relate to Inclusionary Housing regulations, are minor in nature, the adoption of which would not result in any new significant environmental effects or a substantial increase in the severity of any previously identified effects beyond those disclosed and analyzed in the IS/ND prepared for the Zoning Ordinance , nor do the refinements, clarifications, and/or corrections constitute a change in the project or change in circumstances that would require additional environmental review. 4. The documents and other material constituting the record for these proceedings are located at the Planning Division for the City of South San Francisco, 315 Maple Avenue, South San Francisco, CA 94080, and in the custody of Chief Planner, Sailesh Mehra. II. Zoning Text Amendment Findings 1. As described in Section II, adoption of the proposed Amendment will include revisions to Title 20 of the South San Francisco Municipal Code, to reflect minor changes to the Inclusionary Housing Regulations (SSFMC 20.380). 2. The proposed Amendment is consistent with the General Plan because the Ordinance Amendments would revise an existing housing policy as recommended by the adopted 2015- 2023 Housing Element. Revision of Inclusionary Housing Regulations would promote City financing for affordable housing construction and none of the new or revised definitions, tables, figures and land uses will conflict with or impede achievement of any of the goals, policies, or land use designations established in the General Plan. 3. The areas of the City impacted by the proposed Amendment is suitable for the proposed uses. The Amendment will clarify how the Inclusionary Housing Regulations apply to projects when City financial assistance is provided for the sole purpose of providing on-site affordable housing units as part of a project. The Amendment is consistent with General Plan policies, specifically those policies related to affordable housing. Modifications to the Inclusionary Housing Regulations chapter would not affect or change land use citywide and no land use impact is expected. 4. The proposed Amendment is not detrimental to the use of land in any adjacent zone because the Amendment would only clarify existing regulations. More specifically, the Amendment includes a revision to the Inclusionary Housing Regulations and the applicability of the 20 percent requirement for affordable units when public funds are involved. The proposed Amendment will not be detrimental to the public interest, convenience, or welfare of the City or land within the City; instead, the Amendment will bolster the public interest by allowing for affordable housing funding that would not otherwise occur and amends the Zoning Ordinance consistent with the recommendations of the Housing Element in the General Plan. SECTION II. AMENDMENTS. The City Council hereby amends the following sections of the South San Francisco Municipal Code to read as follows. Sections and subsections that are not amended by this Ordinance are not included below, and shall remain in full force and effect. A. Revise Chapter 20.380 Inclusionary Housing Regulations to read as follows: 1. Revise Section 20.380.003 Inclusionary Housing Requirement to modify the inclusionary requirement when City funds are contributed to a project for the sole purpose of providing on-site affordable housing units. 20.380.003 Inclusionary Housing Requirement A. The inclusionary housing requirements of this chapter shall apply as follows: 1. This chapter shall apply to all residential market-rate dwelling units resulting from new construction of “for-sale” projects consisting of four or more residential units, as well as the conversion of apartments to condominiums. 2. This chapter shall apply to all residential market-rate dwelling units resulting from new construction of rental projects consisting of four or more residential units, as well as the conversion of condominiums to apartments, if the owner of the rental project or converted project receives any direct financial assistance or contribution from the City, including density bonuses, as specified Government Code, Sections 65915, et seq. 3. For any residential development or development revision of four or more units, not less than 20 percent of the total units approved shall be constructed and restricted both as to occupancy and affordability to low- and moderate-income households. B. This chapter shall not apply to the following: 1. Existing residences which are altered, improved, restored, repaired, expanded or extended, provided that the number of units is not increased, except that this chapter shall pertain to the subdivision of land for the conversion of apartments to condominiums; 2. Conversion of a mobilehome park pursuant to Section 21.37.120; 3. The construction of a new residential structure which replaces a residential structure that was destroyed or demolished within two years prior to the approval of a building permit for the new residential structure, provided that the number of residential units is not increased from the number of residential units of the previously destroyed or demolished residential structure; 4. Second dwelling units not constructed to fulfill inclusionary housing requirements and developed in accordance with Section 20.350.033 (“Second Dwelling Units”); 5. Those residential units which have obtained approval of a vesting tentative map or a development agreement prior to the effective date of the ordinance codified in this chapter, as set forth in Section 20.380.017 (“Pre-Existing Approvals”). 6. New construction of rental projects consisting of four or more residential units, as well as the conversion of condominiums to apartments, when the only financial assistance that the rental project or converted project receives from the City is for the sole purpose of providing on-site affordable housing units as part of the project and the City determines that the financial assistance provided by the City does not exceed the actual cost of providing the specific on-site affordable units. SECTION III. SEVERABILITY. If any provision of this ordinance or the application thereof to any person or circumstance is held invalid or unconstitutional, the remainder of this ordinance, including the application of such part or provision to other persons or circumstances shall not be affected thereby and shall continue in full force and effect. To this end, provisions of this ordinance are severable. The City Council of the City of South San Francisco hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase hereof irrespective of the fact that any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases be held unconstitutional, invalid, or unenforceable. SECTION IV. PUBLICATION AND EFFECTIVE DATE. Pursuant to the provisions of Government Code Section 36933, a summary of this ordinance shall be prepared by the City Attorney. At least five (5) days prior to the Council meeting at which this ordinance is scheduled to be adopted, the City Clerk shall (1) publish the summary, and (2) post in the City Clerk’s Office a certified copy of this ordinance. Within fifteen (15) days after the adoption of this Ordinance, the City Clerk shall (1) publish the summary, and (2) post in the City Clerk ’s Office a certified copy of the full text of this ordinance along with the names of those City Council members voting for and against this ordinance or otherwise voting. This ordinance shall become effective thirty (30) days from and after its adoption. * * * * * * * Introduced at a regular meeting of the City Council of the City of South San Francisco, held the 9th day of March, 2016. Adopted as an ordinance of the City of South San Francisco at a regular meeting of the City Council held the 13th day of April, 2016 by the following vote: AYES:_______________________________________________________________________ NOES:_______________________________________________________________________ ABSTENTIONS:_______________________________________________________________ ABSENT:_____________________________________________________________________ Attest:__________________________________ Krista Martinelli, City Clerk As Mayor of the City of South San Francisco, I do hereby approve the foregoing Ordinance this 13th day of April, 2016. Mayor Staff Report DATE: April 13, 2016 TO: Mayor, Vice Mayor, and Councilmembers FROM: Alex Greenwood, Director of Economic and Community Development SUBJECT: REQUEST TO APPROVE A MIXED-USE SENIOR AFFORDABLE HOUSING PROJECT AT 310-314 MILLER AVENUE AND AN ADJACENT PARKING LOT (APN 012-311-060), COLLECTIVELY REFERRED TO AS “300 MILLER AVENUE” INCLUDING: CONDITIONAL USE PERMIT, DESIGN REVIEW, ENVIRONMENTAL CONSISTENCY ANALYSIS, BONUS RESIDENTIAL DENSITY, WAIVER/MODIFICATIONS, PARKING REDUCTION, PURCHASE AND SALE AGREEMENT, DEVELOPMENT AGREEMENT, AFFORDABLE HOUSING AGREEMENT AND DETERMINATION THAT THE PROJECT IS EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) RECOMMENDATION It is recommended that the City Council: 1. Make findings and adopt a resolution finding that the project falls within the Government Code section 65457(a) exemption to California Environmental Quality Act (CEQA) for residential projects consistent with and undertaken pursuant to a specific plan for which an environmental impact report has been certified and the Class 32 categorical exemption to CEQA for infill development and approve the Environmental Consistency Analysis. 2. Make findings and adopt a resolution to approve Conditional Use Permit (UP15- 0010), Design Review (DR15-0083), Parking Reduction (PE16-0001), Waiver and Modifications (WM16-0001), and Density Bonus based on the attached draft findings and subject to the attached draft conditions of approval. 3. Introduce an ordinance and waive reading to approve a Development Agreement (DA16-0001) with Rotary Plaza, Inc., for the development of four Downtown area sites. 4. Adopt a resolution approving the Purchase and Sale Agreement with Rotary Plaza, Inc., for the acquisition and development of four Downtown area sites. Staff Report Subject: REQUEST TO APPROVE A MIXED-USE SENIOR AFFORDABLE HOUSING PROJECT AT 310-314 MILLER AVENUE AND AN ADJACENT PARKING LOT (APN 012-311-060), COLLECTIVELY REFERRED TO AS “300 MILLER AVENUE” Date: April 13, 2016 Page 2 of 10 5. Adopt a resolution approving the Affordable Housing Agreement with Rotary Plaza, Inc., in connection with the acquisition and development of four Downtown area sites. 6. Adopt a resolution approving the Performance Deed of Trust with Rotary Plaza, Inc. in connection with acquisition and development of four Downtown area sites. BACKGROUND/ DISCUSSION Introduction The proposed project is the result of an innovative public-private partnership among the City (as the Housing Successor Agency), South San Francisco Rotary Club, American Baptist Homes of the West (ABHOW), and Beacon Development Communities, Incorporated (a private development partner). The resulting project will transform a blighted, underused Downtown site into 80 units of affordable senior housing. These 80 units further demonstrate the City’s longstanding commitment to affordable housing, and add to the City’s existing portfolio of approximately 1,000 affordable units built over the past 30 years. This project involved extensive efforts by the listed collaborators, and it required assembling four properties and raising over $32 million. The development brings to fruition the good faith efforts of these parties and reflects the ongoing negotiations between the City and South San Francisco Rotary Club since the execution of the Exclusive Rights Negotiating Agreement (ENRA) 15 months ago. These 80 residential units will be made affordable for seniors who are in the extremely low, very low, and low-income range. Of the 80 units, 71 units will be restricted to 50 percent Area Median Income (AMI) and 9 units restricted to 30 percent AMI or below. An 81st unit will be included for an onsite manager. For reference, the 2015 San Mateo County AMI categories are summarized in Table 1 below. Table 1: San Mateo County AMI Categories Income Category Total Income for a One- Person Household Total Income for a Two-Person Household Total Income for a Three-Person Household Extremely Low (30 percent AMI) $24,650 $28,150 $31,650 Very Low (50 percent AMI) $41,050 $46,900 $52,750 Low (80 percent AMI) $65,700 $75,100 $84,500 Source: Housing and Urban Development (2015) Furthermore, 20 percent of these units will be designated for seniors with disabilities and two of the units will be for formerly homeless seniors. As an additional social benefit, this affordable housing project’s strategic location in Downtown has a high walk score, a calculation of how Staff Report Subject: REQUEST TO APPROVE A MIXED-USE SENIOR AFFORDABLE HOUSING PROJECT AT 310-314 MILLER AVENUE AND AN ADJACENT PARKING LOT (APN 012-311-060), COLLECTIVELY REFERRED TO AS “300 MILLER AVENUE” Date: April 13, 2016 Page 3 of 10 easy it is for residents to get around without a car. This project achieved a walk score of 80 out of 100, which means this location is classified as very walkable and possible to get by without driving. Therefore, this location increases residents’ mobility and connects them to public transportation, pedestrian-oriented retail, restaurants, services, and to the region. The City previously authorized an ENRA with Rotary Plaza, Inc., in order to finalize a Purchase and Sale Agreement (PSA) to acquire the properties and a Development Agreement (DA) for development of the project site. As seen in Figure 1 below, the project site consists of four separate lots, 310, 312, and 314 Miller and a municipal parking lot to the immediate west of 314 Miller (“Municipal Parking Lot”), which will ultimately be merged into one lot totaling 24,500 square feet (“Project Site”). These parcels were originally acquired by the South San Francisco Redevelopment Agency (“Redevelopment Agency”) and later transferred to the City as part of the dissolution of Redevelopment Agencies (RDA) by the California Legislature. Figure 1 - Project Aerial To date, Rotary Plaza, Inc., has pursued multiple funding options for this project. Below is a chart summarizing the project’s secured funding sources and the funding sources that are in progress: Staff Report Subject: REQUEST TO APPROVE A MIXED-USE SENIOR AFFORDABLE HOUSING PROJECT AT 310-314 MILLER AVENUE AND AN ADJACENT PARKING LOT (APN 012-311-060), COLLECTIVELY REFERRED TO AS “300 MILLER AVENUE” Date: April 13, 2016 Page 4 of 10 This affordable housing project does not utilize any General Funds from the City. However, the City’s assistance entails contributing the land, valued at $2,040,000 towards this project. DEVELOPMENT AGREEMENT The applicant and the City have negotiated a Development Agreement (“DA”) to clarify and obligate project features and mitigation measures. The key features of the DA (Exhibit 1, Attachment B) include: 1. Term of 10 years. 2. Payment of applicable impact fees. 3. Provision of qualifying public benefits. 4. Compliance with all applicable mitigation measures identified and approved in the Downtown Station Area Specific Plan Environmental Impact Report (EIR). 5. Provision of community meeting space within the project. PURCHASE AND SALE AGREEMENT The applicant and City have negotiated a Purchase and Sale Agreement (PSA) for the conveyance of the Property. The key features of the PSA (Exhibit 6, Attachment A) include: 1. The purchase price for the property will be $1dollar, but the applicant is also agreeing to affordability restrictions as set forth in the Affordability Agreement section below. 2. City is only obligated to sell once the Development Agreement and Affordability Agreement has been executed. Funding Sources Amount Secured General Partner Loan/Equity: Rotary Plaza, Inc. $10,322,203 Yes San Mateo County Department of Housing $1,500,000 Yes Four percent LIHTC Equity-Investor TBD $12,613,260 In Progress Tax Exempt Financing-Citi Bank $4,374,600 In Progress Deferred Cost: Developer Fee $654,470 Yes Cap and Trade Grant $1,000,000 In Progress Staff Report Subject: REQUEST TO APPROVE A MIXED-USE SENIOR AFFORDABLE HOUSING PROJECT AT 310-314 MILLER AVENUE AND AN ADJACENT PARKING LOT (APN 012-311-060), COLLECTIVELY REFERRED TO AS “300 MILLER AVENUE” Date: April 13, 2016 Page 5 of 10 AFFORDABLE HOUSING AGREEMENT The applicant and City have negotiated an Affordability Agreement in order to ensure that the Project will be restricted as affordable units. The key features of the Affordability Agreement (Exhibit 6, Attachment B) include: 1. Term of the affordability restrictions will be for 55 years. 2. While the project will be 100 percent affordable, under Article 34 of the California Constitution, the City is only permitted to restrict 49 percent of the units without voter approval. Therefore, the Affordability Agreement only applies to 49 percent of the units. The City recognizes that the remaining 51 percent of the units will be rent-restricted as affordable by the Low Income Housing Tax Credit (LIHTC). 3. The Affordability Agreement restricts the units to very low income seniors. 4. The Affordability Agreement will be secured by a performance deed of trust (“Performance Deed of Trust”), which creates a lien and security interest in the property in favor of the City to ensure that the applicant complies with the affordability restrictions. 5. The Affordability Agreement, the Development Agreement and the Performance Deed of Trust include express subordination provisions, pursuant to which the City agrees that the Agreements are subordinated to a first lender. In the event of bankruptcy or default, the City would have to cure in order to continue to maintain the affordability restrictions. ENTITLEMENT Project Overview The project site is located within the Downtown Station Area Specific Plan (DSASP). The immediate vicinity includes the nearby South San Francisco Caltrain station, US-101, Airport Boulevard, and a mixture of low-density residential, mixed-use, and commercial development along Linden Avenue and Miller Avenue. As shown in Figure 1 in the above section, the project site is comprised of four contiguous parcels: the 14,000 square-foot Municipal Parking Lot (APN 012-311-260) and 310, 312, and 314 Miller Avenue (APNs 012-311-230, 012-311-240, 012-311-250, respectively), which are each 3,500 square feet and developed with single-story and two-story residential structures. Once all four parcels are merged, all existing residential structures will be demolished to accommodate the proposed project. Staff Report Subject: REQUEST TO APPROVE A MIXED-USE SENIOR AFFORDABLE HOUSING PROJECT AT 310-314 MILLER AVENUE AND AN ADJACENT PARKING LOT (APN 012-311-060), COLLECTIVELY REFERRED TO AS “300 MILLER AVENUE” Date: April 13, 2016 Page 6 of 10 The completed project will be an 88,287 square foot, 65-foot tall, five-story residential building comprised of 81 residential units above a parking garage. The proposed building is designed in a mix of modern architectural styles and will be constructed of four stories of wood frame over one-story concrete podium. The first floor will accommodate the parking area, bicycle storage, lobby, office, utility spaces, and a 1,993 square-foot community assembly space. The second through fifth floors will consist of 80 one-bedroom affordable senior apartments and one two- bedroom manager apartment, 7,489 square feet of open space in the form of two terraces and a main courtyard, and resident amenities such as laundry and lounge areas. The proposed amenities include the following: a community room adjacent to an open-air courtyard; a courtyard with planting areas, exercise equipment, and seating areas; and a terrace on the fifth floor. Figure 2 – Rendering View from Miller Avenue Staff Report Subject: REQUEST TO APPROVE A MIXED-USE SENIOR AFFORDABLE HOUSING PROJECT AT 310-314 MILLER AVENUE AND AN ADJACENT PARKING LOT (APN 012-311-060), COLLECTIVELY REFERRED TO AS “300 MILLER AVENUE” Date: April 13, 2016 Page 7 of 10 Figure 3 – Rendering View from Tamarack Lane PLANNING MILESTONES Planning Commission The Planning Commission reviewed this project at their public hearing on March 17, 2016, and expressed support for the project. The applicant specifically requested, and the Planning Commission recommended, that the City Council approve the following entitlements: a Parking Reduction from 41 required parking spaces to 39; Waiver and Modification request to allow 7,489 square feet of open space instead of a minimum of 8,100 square feet, to allow an increase in maximum lot coverage from 90 percent to 98 percent, and to waive the private storage requirement of 200 cubic feet; a Conditional Use Permit to allow a maximum density of 125 units per acre; a Density Bonus to allow a 25 percent increase in maximum density to 156 units per acre; and recommended that the City Council make a finding that the project is statutorily and categorically exempt from CEQA and approve the Environmental Consistency Analysis (ECA) and recommended that the City Council adopt an ordinance approving the DA. There were 20 speakers during the public comment period, with 10 speaking in favor of the project and 10 opposed. Those that were opposed to the project had the following concerns:  Shadows created by the project  Insufficient parking on-site  Elimination of existing parking spaces Staff Report Subject: REQUEST TO APPROVE A MIXED-USE SENIOR AFFORDABLE HOUSING PROJECT AT 310-314 MILLER AVENUE AND AN ADJACENT PARKING LOT (APN 012-311-060), COLLECTIVELY REFERRED TO AS “300 MILLER AVENUE” Date: April 13, 2016 Page 8 of 10  Design of the structure  Traffic impacts on Miller Avenue and Linden Avenue  Safety access for Fire and Police The Planning Commission considered public testimony during the comment period as well as the staff report and supplemental information attached to the staff report in making its decision to unanimously recommend approval of the project. Housing Sub-Committee Meeting A Housing Sub-Committee meeting was held on July 8, 2015, to share the preliminary designs with representatives from the City Council and Planning Commission. Design Review Board The Design Review Board reviewed the Project at their July 21, 2015 meeting and a revised project at its August 18, 2015 meeting. Based on the Design Review Board’s recommendations at its July 21, 2015 meeting, the applicant reduced the number of units from 91 to 81 to reduce the height and scale of the proposed building, incorporated a loading zone along Miller Avenue, and increased articulation along the Tamarack Lane elevation and submitted those revisions at the August 18, 2015 meeting. Neighborhood Meeting A neighborhood meeting was held on July 23, 2015, in which approximately 10 residents attended. A detailed discussion of these meetings is included in the Planning Commission staff report, dated March 17, 2016 (Attachment 2). CONCLUSION The proposed project seeks to transform an underutilized collection of sites into a high-density affordable residential development along Miller Avenue, bring new residents into close proximity to existing transit providers, and assist in creating a pedestrian-friendly Downtown. In addition, the proposed development conforms to the vision articulated in the General Plan, (including the Housing Element), and is consistent with the standards and guidelines of the DSASP, as applicable with the modification requests. It is recommended that the City Council: 1. Make findings and adopt a resolution finding that the project falls within the Government Code section 65457(a) exemption to CEQA for residential projects consistent with and Staff Report Subject: REQUEST TO APPROVE A MIXED-USE SENIOR AFFORDABLE HOUSING PROJECT AT 310-314 MILLER AVENUE AND AN ADJACENT PARKING LOT (APN 012-311-060), COLLECTIVELY REFERRED TO AS “300 MILLER AVENUE” Date: April 13, 2016 Page 9 of 10 undertaken pursuant to a specific plan for which an environmental impact report has been certified and the class 32 categorical exemption to CEQA for infill development and approve the Environmental Consistency Analysis. 2. Make findings and adopt a resolution to approve Conditional Use Permit (UP15-0010), Design Review (DR15-0083), Parking Reduction (PE16-0001), Waiver and Modifications (WM16-0001), and Density Bonus based on the attached draft findings and subject to the attached draft conditions of approval. 3. Introduce an ordinance and waive reading to approve a Development Agreement (DA16- 0001) with Rotary Plaza, Inc., for the development of four Downtown area sites. 4. Adopt a resolution approving the Purchase and Sale Agreement with Rotary Plaza, Inc., for the acquisition and development of four Downtown area sites. 5. Adopt a resolution approving the Affordable Housing Agreement with Rotary Plaza, Inc., in connection with the acquisition and development of four Downtown area sites. 6. Adopt a resolution approving the Performance Deed of Trust with Rotary Plaza, Inc., in connection with the acquisition and development of four Downtown area sites. By: Approved: Alex Greenwood Director of Economic and Community Development Mike Futrell City Manager Staff Report Subject: REQUEST TO APPROVE A MIXED-USE SENIOR AFFORDABLE HOUSING PROJECT AT 310-314 MILLER AVENUE AND AN ADJACENT PARKING LOT (APN 012-311-060), COLLECTIVELY REFERRED TO AS “300 MILLER AVENUE” Date: April 13, 2016 Page 10 of 10 Attachments: 1. City Council CEQA Resolution a. Environmental Consistency Analysis i. Historic Resources Analysis ii. Traffic and Circulation Analysis and Addendum iii. Shadow Analysis iv. Final Mitigation Monitoring and Reporting Program from DSASP EIR 2. City Council Entitlements Resolution with Exhibits a. Conditions of Approval b. Entitlement Submittal Project Plans, dated February 11, 2016 3. Planning Commission a. Staff Report for March 17, 2016 b. Resolution 2785-2016 4. City Council Development Agreement Ordinance a. Development Agreement 5. Zoning Ordinance Compliance a. Waivers and Modification Request Memorandum 6. Proposed Community Benefits Memorandum 7. Public Comments a. Support Letters submitted by Developer b. Community Letters in Opposition c. Staff Response 8. City Council Purchase and Sale Agreement Resolution a. Purchase and Sale Agreement 9. City Council Affordable Housing Agreement Resolution a. Affordable Housing Agreement 10. City Council Performance Deed of Trust Resolution a. Performance Deed of Trust 11. City Council Staff Presentation RT/RG/AG/LD/JS/MF City Council April 13, 2016 Unique partnership: City, Rotary, ABHOW, and Beacon Development 81 housing units ◦80 affordable senior units ◦1 manager unit 1,993 sq. ft. community space Helps implement Downtown Plan Converts 4 vacant/blighted parcels into a developable 0.56-acre site Housing Sub-Committee July 8, 2015 Design Review Board July 21, 2015 Neighborhood meeting July 23, 2015 2nd Design Review Board August 18, 2015 Planning Commission March 17, 2016 Reviewed on March 17, 2016 20 speakers (10 for, 10 against) Questions related to: shadows, parking, design, traffic impacts, fire/police access Recommended approval (7-0) 7 ◦City land sold for $1 ◦Affordability Agreement ◦Impact Fees ◦Public Benefits ◦Community meeting space ◦Compliance with all applicable mitigation measures 8 ◦55 years ◦All units affordable 49% affordable by AHA 51% affordable by LIHTCs ◦Very Low Income Seniors ◦Performance Deed of Trust ◦Subordinated to 1st lender Approve: Development Agreement Purchase & Sale Agreement Affordable Housing Agreement CUP, Design Review & Related Project Approvals government Code Section 54957.5 SB 343 CITY OF SOUTH SAN FRANCISCO INTEROFFICE MEMORANDUM DATE: April 8, 2016 TO: Mayor, Vice Mayor and City Council FROM: Sailesh Mehra, Planning Manager SUBJECT: Planning Commission Meeting Minutes for March 17, 2016 Agenda 04.13.16 Item # 11 For additional background information on the Public Hearing Item 11 for the Regular City Council Meeting on April 13, 2016, attached are the approved Minutes from the Planning Commission Meeting on March 17, 2016. The video recording of this Regular Planning Commission meeting can be found at httQA5 ww. ssf.net11996IRanning- Commission MINUTES March 17, 2016 CITY OF SOUTH SAN FRANCISCO REGULAR PLANNING COMMISSION CALL TO ORDER / PLEDGE OF ALLEGIANCE ROLL CALL / CHAIR COMMENTS AGENDA REVIEW TIME: 7:00 P.M. PRESENT: Commissioners Martin, Nagales, Ruiz and Wong, Vice Chairperson Faria, and Chairperson Khalfin ABSENT: None Planning Manager Mehra recommended switching the order of the two items to accommodate number of speakers for Project P15 -0043, 300 Miller Ave. The Commission agreed and confirmed reordering the items. ORAL COMMUNICATIONS None. CONSENT CALENDAR 1. Approval of the regular meeting minutes March 3, 2016. Commission Discussion begins 00:02:22 in video recording. Motion — Commissioner Nagales /Second — Commissioner Ruiz to approve the regular meeting minutes of March 3, 2016. Approved by roll call vote (5 -0-0). PUBLIC HEARING 2. New 81 -Unit Senior Housing Development CITY OF SOUTH SAN FRANCISCO /Owner Beacon Communities, Inc. /Applicant 300 Miller Ave P15 -0043: PE16 -0001, DA16-0001, UP15 -0010, DR15 -0038, WM16 -0001 Request for Conditional Use Permit and Design Review to construct a new five -story mixed -use building with a total of 81 affordable senior residential units and 1,995 square feet of community assembly space at the following addresses: 310 Miller Avenue (APN 012 - 311 -230), 312 Miller Avenue (APN 012 - 311 -240); 314 Miller Avenue (APN 012 -311 -250), and APN 012- 311 -060, collectively referred to in Project documents as "300 Miller Avenue "; request for Maximum Density with Incentive Program; request for Bonus Residential Density; request for Waiver /Modification to modify lot coverage, minimum usable open space standards and private storage requirements; request for a Parking Reduction to reduce required parking from 82 spaces to 39 spaces; and consideration of an Environmental Consistency Analysis and a Development Agreement. The parcels are located in the Downtown Residential Core (DRC) Zoning District and the Development Agreement, Conditional Use Permit, Design Review, Waiver and Modification, and Parking Reduction requests are in accordance with SSFMC Chapters 19.60, 20.280, 20.330, 20.3903 20.480, 20.490, and 20.510 and the California Environmental Quality Act (CEQA), Public Hearing Opened: 7:05 P.M. Mach 17, 2016 Minutes Page 1 of 4 • April Glatt (Attorney for John Casagrande) opposed the project because of traffic, lack of emergency access, parking and shadow impacts. Ken Burn opposed the project because of concern of blocking Tamarack Lane for emergency access. Tom Roth opposed the project because of parking impact and feels the parking will not be enough. • Robert Pianca (Resident) opposed the project. • Theresa Wolowic (Resident) opposed because of size of project. • Marco Pinto (Resident) opposed because of parking impact • Michele Evans (Resident and President Elect of Rotary Club) supported to project because it alms to fulfill a shortage of senior housing and will help to enrich the City. • Gene Mullin (Resident, Former member of Planning Commission, Current member of Rotary Club) supported the project because it aims to fulfill senior housing need in the City. Don Bowcut: (President of Rotary Club) supported the project because it addresses affordable Senior Housing need in the City. • Mike Massoni (Member of Board of Directors Rotary Club) supported the project and believes that parking and emergency access will not be affected. • Jidy Cosme (Resident) supported the project. • Mark Barradas (Resident and Member of Chamber of Commerce) supported the project. • Ed Gomez (Resident) opposed to the project because it will affect parking in the region. • Marc Teglia (Former member of Planning Commission) opposed the project due to shadowing, parking and design concerns. • Andre Velarde (Resident) supported the project because it will address the need for Senior Housing. • Rebecca Montenegro (Resident of Rotary Club) supported the project. Beverly Karnatz (Rotary Club Coordinator) supported the project. • Daisy Milan (Resident of Rotary Club) supported the project. • Katherine Hamburger (Resident) opposed the project because of traffic concerns. • Henry Canole (Member of Rotary Club) supported the project because it allows seniors to be more part of the Downtown community. • Laura Gonzalez opposed to the project due to the scale. • Arlene Ericson (Member of Rotary Club) supported the project. Public Hearing Closed: 8:21 P.M. Commission Discussion begins 01:20:35 in video recording. • Commissioner Wong asked staff and the applicant to clarify the general number of parking spaces required for a project such as this and the reason for the reduction. Planning Manager Mehra explained that Senior Housing generally does not require a one to one ratio of units to parking. The applicant's attorney Paul McGowen explained in a previous slide that the a project of this size would require roughly 26 parking spaces so in conclusion, this project will exceed the necessary amount to include demand from residents, residential staff, medical services and visitors. • Commissioner Nagales asked if the Fire Marshal or Fire Department representative could speak to the public's concern of lack of emergency vehicle access once this project is constructed. Tom Carney, Acting Fire Marshal of the SSF Fire Department confirmed that this project has been reviewed by their department and does not see issue with access. Planning Manager Mehra also noted that every project gets vetted by the Technical Advisory Group which is comprised of various members of the City's departments including Fire and Police who would be able to give comments from their perspective. • Commissioner Martin expressed support of the project in the respect to activating the Downtown region with new residents. Motion — Commissioner Nagales /Second — Commissioner Wong to adopt a Resolution making findings and recommending that the City Council find that the project P15 -0043 is statutorily and categorically exempt from CEQA and recommending that the City Council approve a Development Agreement, Environmental Consistency Analysis, Use Permit 15 -0010, Design Review 15 -0038 Parking Reduction PE16 -001, Waiver Modification WM16 -0001 and Density Bonus for the construction of 80 affordable senior housing units, one manager unit and 1903 square feet of community assembly space at 310, 312, 314 Miler Ave and a municipal parking lot APN (012 -311 -060) and make findings that project is consistent with the General Plan based on the attached draft findings including the revised finding of section C number 10, and the Resolution to state that the proposed project reflects a fair financial balance of a cost and benefits between the City and the applicant as the values of the public benefits offered by the applicant are reasonable and in light of the cost to March 17, 2016 Minutes Page 2 of 4 the City of providing the additional density provided for under 20.280.05 of the municipal code and subject to the draft conditions of approval. Approved by roll call vote (5 -M). Regular Planning Commission Meeting Recess: 9:11 P.M. Regular Planning Commission Meeting Resumed: 9:12 P.M. 3. New Single Family Dwelling NAND VINAL VISHEK/Owner /Applicant 901 Larch Avenue P15 -0037: DR15 -0033, ND16 -0004 Design Review to construct a new single family dwelling at 901 Larch Avenue in the Low Density Residential (RL -8) Zoning District and adoption of an Initial Study and Negative Declaration in accordance with SSFMC Chapters 20.080, 20.160, 20.300, 20.3302 20.460 & 20.480, and the California Environmental Quality Act (CEQA). Public Hearing Opened: 9:13 P.M. • Sylvia Smock (Resident, neighbor) opposed project due to concerns of erosion, long term effects of dislodging mountain as well as traffic concerns during construction period. • Ithickar Nazir (Resident, neighbor) opposed project due to concerns of unstable ground • Jerry DelaPena (Resident, neighbor) opposed project to similar concerns as previous speakers but also expressed concerns whether this will become a rental property. • Commissioner Nagales asked how the applicant will assist in mitigating noise levels of the construction site for neighboring residents. Environmental Consultant Allison Knapp, explained that the best mitigation measures determined by Noise Consultant is utilizing a sound wall to contain noise as well as maintaining strict hours during construction phases. • The Commission asked staff to address the neighbors' concerns regarding additional erosion and asked if he has seen projects like this before. The Geotechnical Consultant Yang stated the data is based on optimal conditions and of course depends on the contractor used. He also noted that he has seen many projects like this and with even more difficult than this one and highlighted that this is not uncommon. • Commissioner Nagales asked staff to address the concerns about parking impacts for neighbors during the construction. Senior Planner Friedman explained that the Conditions of Approval can state restrictions for construction vehicles to help protect parking for neighbors. • Vice Chairperson Faria asked that the applicant be mindful in selecting a contractor with enough experience in this type of work to help mitigate any possible Issues. • The applicant also noted that he would be available for any questions and concerns that neighbors may have. • Ithickar Nazir (Resident) requested that an additional phone number be provided. • Joshua Krishna (Friend of applicant) supports the project and emphasized the excellent character of the applicant and his family. Public Hearing Closed: 10:11 P.M. Commission Discussion begins 03:02:40 in video recording. • Commissioner Martin stated support of the project but asked a general comment if this space is necessary to be developed considering the constraints. • The Commission expressed overall support of the project and asked that the neighboring residents help to hold the applicant to the level of standard required upon approval. Motion — Commissioner Wong /Second — Commissioner Martin to adopt a Resolution making findings and adopting the Initial Study and Negative Declaration ND16 -0004. Approved by roll call vote (5 -0-0). Motion — Commissioner Wong /Second — Commissioner Martin to approve Design Review DR15 -0033 to construct new single family dwelling based on the attached draft findings and subject to the draft conditionals of approval Approved by roll call vote (5 -0 -0). March 17, 2016 Minutes Page 3 of 4 ADMINISTRATIVE BUSINESS ITEMS FROM STAFF Planning Manager Mehra let the Commission know about the upcoming training queued up including learning about the Planning Entitlement Process, overview of the Downtown Station Area Speck Plan and Affordable Housing requirements for both state and local. Encouraged the Commission to let staff know about any other trainings they are interested in. ITEMS FROM COMMISSION Commissioner Wong stated that he liked the history included in the Staff Reports. Commissioner Nagales shared with the Commission about the ribbon cutting for Seafood City on Tuesday, March 22. Commissioner Martin greeted everyone present a Happy Saint Patrick's Day. Commissioner Ruiz stated that he appreciated the replies to the public letters for the 300 Miller project. ITEMS FROM THE PUBLIC None. ADJOURNMENT Chairperson Khalfin adjourned the meeting at 10:28 P.M. A /"`� Sailesh Mehra Secretary to the Planning Commission City of South San Francisco Alexander Khalfin, Chairperson Planning Commission City of South San Francisco March 17, 2016 Minutes Page 4 of 4