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HomeMy WebLinkAbout06.26.2017 SP & PCH Minutes @3:00MINUTES SPECIAL MEETING OF THE HOUSING STANDING COMMITTEE OF J O THE CITY COUNCIL AND c9LIF0 PLANNING COMMISSION CITY OF SOUTH SAN FRANCISCO P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, California 94083 1. Call to Order. 2. Roll Call. 3. Public Comments. None. Matters for Consideration Meeting will be held at: CITY MANAGER CONFERENCE ROOM 400 GRAND AVENUE SOUTH SAN FRANCISCO, CA MONDAY, JUNE 26, 2017 3:00 p.m. TIME: 3:01 p.m. PRESENT: Councilmembers Addiego and Matsumoto, and Planning Commissioners Faria, Ruiz and Wong. 1. Report regarding the transfer of the property located at 339 -341 Commercial Avenue to a nonprofit service agency. (Alex Greenwood, ECD Director) Management Analyst Heather Ruiz presented the staff report. Mr. Ramon Serano stated he had not received a letter regarding the meeting, only found out about it on the City's website. He stated he had lived at the property for 19 years. He suggested the City retain the property. He stated it was difficult to find affordable housing. He stated he did not want to be a burden to the City but he raised his six children without assistance and requested he be allowed time to purchase a home. Miss Serano expressed concern regarding the lack of communication regarding the meeting. Councilmember Matsumoto stated she would like to make it a practice that tenants be notified of future meetings. She discussed efforts to contact the Executive Director of HIP Housing and requested she have first option. Councilmember Addiego asked if the Council could select which non - profit. Director Greenwood stated the Housing Investment Plan called for a competitive process. Councilmember Addiego discussed various non -profit organizations. Councilmember Matsumoto stated she did not like the City being a landlord. She suggested the caveat that the existing tenants be allowed to remain. She encouraged Mr. Serano to consider the City's future below market rate units. She stated she did not want any evictions. Planning Commissioner Wong concurred that current families should be able to remain. He asked how the transaction worked. Director Greenwood stated the non - profits would make proposals on the price, future management and ultimate disposition of the project. Planning Commissioner Faria agreed that the City should not be a landlord and suggested clear conditions for existing tenants. Planning Commissioner Ruiz asked if Mr. Serano lived at the property. Mr. Serano explained that he was one of four families at the property. Planning Commissioner Ruiz asked if the City could determine the tenants. Director Greenwood stated the City could place a covenant or restrictions regarding retaining the tenants. Miss Serano asked what would happen to the existing tenants. Councilmember Addiego stated the City could ensure the tenants could stay for some period of time. Councilmember Addiego stated he was not afraid of being a landlord. He stated he could not decide without the remainder of the Council. Councilmember Matsumoto expressed concern with the repairs needed on the property. She requested an updated list of needed repairs. Councilmember Addiego discussed the repairs on the property. Director Greenwood ensured the Committee that the City had a professional property manager that maintained the properties. Councilmember Addiego suggested the entire Council consider the item. City Manager Futrell requested clarification on the Committee's direction. Planning Commissioner Faria expressed concern about the City receiving repayment of loans from a non - profit. Director Greenwood stated the policy direction was to go out for proposals from non- profits. Councilmember Addiego suggested the matter be brought back to the City Council. City Manager Futrell stated the matter would be brought back to Council. 2. Report regarding the hotel developer solicitation process for the proposed hotel project at Oyster Point. (Ernesto Lucero, Economic Development Coordinator) Economic Development Coordinator Lucero presented the staff report highlighting the project, solicitation process, and next steps. JOINT HOUSING STANDING COMMITTEE MEETING JUNE 26, 2017 MINUTES PAGE 2 Councilmember Matsumoto asked who was on the selection team. Coordinator Lucero stated the team was Robert Cook from Genentech, Alex Greenwood, Billy Gross, Eunejune Kim, and Sara Ritecliff. Councilmember Addiego asked about AJ Capital Projects. Coordinator Lucero described their preliminary concept for an independent boutique hotel with conference center. Interim Economic Development and Housing Manager Poncel stated their specialty was in adaptive use. Coordinator Lucero stated the developer determined it to be infeasible. Councilmember Matsumoto stated she like RM Rad and questioned why they were ranked #8. Manager Poncel stated the request for qualifications were sent to developers and their proposal was submitted by an architect. She stated the panel felt that the City needed to engage with a developer. Councilmember Matsumoto stated she was looking for a visual statement. Planning Commissioner Wong asked why Bay View dropped out. Coordinator Lucero stated they respectfully declined but were not really experienced hotel developers. Councilmember Matsumoto asked which brand would be at the airport. Coordinator Lucero stated it was a Grand Hyatt. Councilmember Matsumoto stated branding was important. Councilmember Addiego asked about Akon Capital. Coordinator Lucero stated Ensemble Real Estate development did not bring Akon to the interview and additional information would be provided in the request for proposals. Coordinator Lucero discussed the submittal requirements and selection criteria. He summarized the Ensemble proposal. Councilmember Addiego asked if any of the four operated as a union hotel. Mikey Kuo, CBRE Hotels, stated all four were anti -union and he was unsure if any operated union hotels. Councilmember Matsumoto stated prevailing wage would have to be paid on the construction side. She asked what was going to succeed in South San Francisco. Mr. Kuo explained that a 350 -room hotel was full service, with conference space. He stated the cost of construction made full service hotels economically infeasible. He discussed limited service with some food and beverage or extended stay with continental breakfast. Councilmember Matsumoto asked how many rooms Best Western had. Mr. Kuo stated he did not know how many rooms Best Western had. Director Greenwood stated Best Western was a 2 -3 star hotel. Councilmember Matsumoto requested room size. Mr. Kuo stated the Westin in Burlingame was 350 -400 rooms. Planning Commissioner Faria asked how many stars were proposed. Mr. Kuo explained hotel brands including luxury, upper upscale, upscale, upper mid -scale and extended stay. Councilmember Addiego confirmed that transient occupancy tax was paid for extended stays. JOINT HOUSING STANDING COMMITTEE MEETING JUNE 26, 2017 MINUTES PAGE 3 Councilmember Matsumoto asked who the hotel was catering to. Mr. Kuo discussed stays by corporate clients. Planning Commissioner Wong asked about extended stay. Mr. Kuo stated extended stay was 5 -7 days. Planning Commissioner Wong asked if there was data on extended stays. Mr. Kuo stated the extended stays in the area performed at 80 %. Planning Commissioner Faria asked the difference between a meeting room and banquet room. Mr. Kuo explained the difference. Director Greenwood stated the Committee wanted something feasible while lifting the area. He stated the RFP could specify an architectural statement, regardless of the interior. Councilmember Matsumoto stated she liked the simple elegance at the Westin. Manager Poncel summarized the proposals by JMA, OTO Development, and the Shashi Group. Planning Commissioner Wong asked which proposal staff felt was a good fit. Manager Poncel explained the request for qualifications and information to be provided in the request for proposals (RFP) phase. She stated the review panel determined the four teams should go on to the RFP process. Planning Commissioner Wong asked if the RFP could include the specific brand of hotel. Manager Poncel discussed the benefit of not having the brand predetermined. Councilmember Matsumoto asked if the City could suggest the brand. Director Greenwood stated the certainty would come later in the process. Manager Poncel stated schematic drawings would be required in the RFP. Director Greenwood stated staff recommended giving all four teams the opportunity to participate in the RFP process. Manager Poncel discussed the importance of track record and qualifications. Councilmember Matsumoto stated the hotel should accommodate corporate, extended stay and overflow from San Francisco. Director Greenwood stated biotechs would draw guests. Councilmember Matsumoto suggested determining the demographics of guests to decide on hotel style. Manager Poncel stated the proposers would conduct market studies to ensure a viable product. By consensus, the Committee directed staff to move forward to the RFP process with the four teams. Adjournment Being no further business the meeting was adjourned at 4:26 p.m. JOINT HOUSING STANDING COMMITTEE MEETING JUNE 26, 2017 MINUTES PAGE 4 Submit y: Gabriel R guez, Deputy City Clerk City of South San Francisco Approved by: Councilmember City of Sou an Francisco JOINT HOUSING STANDING COMMITTEE MEETING JUNE 26, 2017 MINUTES PAGE 5