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HomeMy WebLinkAbout2011-01-26 e-packetSPECIAL MEI 'TING ~o.~zx s,~i,~ REDEVELOPMENT ACxENCY OF THE o ~- ~ CITY OF SOUTH SAN FRANCISCO `' P.O. Box 7I 1 (City Hall, 400 Grand Avenue} `~Lrxo~~~°` South San Francisco, California 94083 Meeting to be held at: MUNICII'AI, Sh~2VICI:S BUl[LDING COMMUNITY ROC>Nt 33 ARROYO DRIVE SOU'1'H SAN FI2ANCISC;O, CA WEDNESDAY, JANUARY' 2:6, 2011 6:55 P.M. NOTICE IS HEREBY GIVEN, pursuant to Section 54056 of the Government Code of the State of- California, the Redevelopment Agency of the City of South San Francisco will hold a Special Meeting on. Wednesday, the 26`'' day of :lanuary, :?Ol 1, at 6:55 p.m., in the Municipal Services Building, Community Room, 33 Arroyo Drive, South San Francisco, California. Ptupose of the meeting: 1. Call to Order. 2. Roll Call. 3. Agenda Review. 4. Public Comments -comments are limited to ite~m~ on the Special Meeting Agenda. 5. Resolution Approving an amendment to extend, the Memaranduzn of Understanding among the City of South San Francisco, Redevelopment Agency of the City of South San Francisco and the San Mateo County Harbor District fox Potential Development of the Oyster Point Marina and Oyster Point Business Park. 6. Adjournment. ~~/ .-- C.. rty Clerk,{1~#~~outh San Francisco ~. y J O ~~LiFOt~°` ff to e~ort DATE: January 26, 2011 TO: The Honorable Mayor and City Council The Honorable Chair and Redevelopment Agency Boazd FROM: Marry Van Duyn, Assistant City Manager SUBJECT: RESOLUTIONS APPROVING AN AMENDMENT TO EXTEND THE MEMORANDUM OF UNDERSTANDING AMONG THE CITY OF SOUTH SAN FRANCISCO, SOUTH SAN FRANCISCO REDEVELOPMENT AGENCY AND SAN MATED COUNTY HARBOR DISTRICT FOR POTENTIAL DEVELOPMENT OF THE OYSTER POINT MARINA AND OYSTER POINT BUSINESS PARK RECOMMENDATION Staff recommends that the City Council and Agency Board each approve the attached Resolutions, approving an amendment to eztend the Memorandum of Understanding among the City of South San Francisco, the South San Francisco Redevelopment Agency and the San Mateo County Harbor District. BACKGROUND & DISCUSSION The City owns property located at the Oyster Point Marina. Oyster Point Ventures LLC is a joint venture between Shorenstein Properties and SKS Investments :LLC ("S/SKS"). S/SKS purchased the Oyster Point Business Pazk, which is adjacent to the Oyster Point Marina, for the purpose of developing the Oyster Point Business Park into a modern research and development life sciences campus. In addition, S/SKS has acquired the King Ventures leasehold interest in the City's property. In collaboration with the City, S/SKS has proposed apublic;-private development approach at the Oyster Point Marina and the Oyster Point Business Park., that would result in an integrated development of a modern life sciences campus, with research and development and/or office buildings, commercial development located near and oriented to the proposed public ferry terminal, continued hazbor and marina uses, and enhanced public open/recreati.on space amenities (collectively, the "Project"). The City and the San Mateo County Harbor District ("District") have established a joint powers authority that governs the development, operations, and maintenance of the Oyster Point Marina. Property, including management of the Oyster Point Marina by the District. Staff Report Subject: Harbor District MOU Amendment Page 2 of 3 In May, 2009, the City Council and Redevelopment Agency each approved a Memorandum of Understanding ("MOU") with the District to establish anon-binding mutual understanding among the City, Redevelopment Agency and the District regarding the potential conveyance of lease interests and portions of the area commonly known as the Marina Property, and the potential development an office/research and development life sciences campus, commercial development, and substantial public amenities for the Project. The MOU provided in Section 4 that its effective term ("Term") would commence on the specified Effective Date of May 27, 2009, and would terminate five hundred forty (540) days thereafter, unless extended or earlier terminated as provided in the MOU. The MOU further specified that the Parties may extend the Term for a maximum of three (3) additional thirty (30) calendar day terms. In accordance with the MOU, on December 1, 2010, the District approved a sixty (60) day extension of the MOU, which extension was subsequently approved administratively by the City and Agency, such that the MOU is now set to expire on January 17, 2011. Since the MOU was approved in May 2009, staff and S/SKS :have made significant progress towards finalizing draft land use entitlements for the City Council's and Redevelopment Agency Board's consideration. Nearly all of the environmental analyses that will be required for the Environmental Impact Report are now complete. However, in order to complete environmental review and obtain required governmental approvals and entitlements for the proposed Project, all parties have determined that it is necessary to extend the Term beyond that set forth in the MOU, including the additional 30- day extensions specified in the MOU. The attached Resolutions propose an amendment to Section 4 of the MOU ("First Amendment"). If approved, the First Amendment would extend the effective period of the MOU to terminate at the same time as the separate memorandum of understanding between the City, Redevelopment Agency, and S/SKS ("S/SKS MOU"), on September 30, 2011, with the option to extend for up to three additional thirty-day periods, as approved in the original MOU. The First Amendment would not affect any other sections, terms, or conditions of the MOU, which staff and S/SKS agree would all remain in full force and effect. ENVIRONMENTAL IMPACT Approval of the original MOU did not authorize the construction of the proposed Project or any other construction, and did not result in either a direct or reasonably foreseeable indirect physical change in the environment; rather, the MOU only committed the parties to certain obligations related to the further planning and negotiation of the property exchanges and development of the Project. Likewise, approval of the First Amendment would not authorize any construction of the proposed Project or any other construction, and would not result in either a direct or reasonably foreseeable indirect physical change in the environment. Approval of the First Amendment would simply extend the term of the existing MOU. No construction will be authorized until (i) C.ity, in conjunction with RDA, has prepazed, certified as adequate and approved an Environmental impact Report under CEQA; (ii) City has approved the land use entitlements required for the Project; and (iii) any agreements or regulatory permits required by any other applicable regulatory agencies have been obtained. Accordingly, no further environmental review is required for approval of the First Amendment. Staff Report Subject: Harbor District MOU Amendment Page 3 of 3 FISCAL IMPACT Pursuant to the S/SKS MOU, S/SKS will pay for or reimburse the City and Redevelopment Agency for all costs related to the negotiations of any binding agreements, analysis under CEQA of the Project and all planning activities. The proposed First Amendment extending the term of the MOU with the Harbor District will not affect this obligation. CONCLUSION Staff recommends that the City Council and Agency Boazd each approve the attached Resolutions, approving an amendment to extend the Memorandum of Understanding among the City of South San Francisco, South San Francisco Redevelopment Agency and San Mateo County Hazbor District. By: Marty Van Duyn Assistant City Manager Approved: a ~" arry M. Nage City Manager Enclosures: City Resolution - Hazbor District MOU Extension Redevelopment Agency Resolution -Harbor District MOU Extension 1560469.1 RESOLUTION NO. CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION APPROVING AN AMENDMENT TO EXTEND THE MEMORANDUM OF UNDERSTANDING AMONG THE CITY OF SOUTH SAN FRANCISCO, REDEVELOPMENT AGENCY OF THE CITY OF SOUTH SAN FRANCISCO AND THE SAN MATED COUNTY HARBOR DISTRICT FOR POTENTIAL DEVELOPMENT OF THE OYSTER POINT MARINA AND OYSTER POINT BUSINESS PARK WHEREAS, the City Council of the City of South San Francisco ("City") has adopted a Redevelopment Plan for the Downtown/Central Project Area (as amended, the "Project Area"); and, WHEREAS, the City is the owner of certain real property located within the Project Area and commonly known as the Oyster Point Marina ("Marina Property"); and, WHEREAS, the City and the San Mateo County Harbor District ("District") have established a joint powers authority that governs the development, operations, and maintenance of the Oyster Point Marina Property, including management of the Oyster Point Marina by the District; and, WHEREAS, Oyster Point Ventures LLC, a joint venture between Shorenstein Properties and SKS Investments LLC ("S/SKS"), purchased the Oyster Point Business Park, which is adjacent to the Oyster Point Marina, for the purpose of developing the Oyster Point Business Park into a modern research and development life sciences campus; and, WHEREAS, in collaboration with the City and the South San Francisco Redevelopment Agency, S/SKS has proposed apublic-private development approach that would result in an integrated development of the Oyster Point Marina and the Oyster Point Business Park ("Project"), which requires collaboration amongst the City, the District, the Agency and S/SKS; and, WHEREAS, in May 2009 the City Council and. Redevelopment Agency Board approved anon-binding Memorandum of Understanding ("MOU"), that establishes a mutual understanding among the City, the Agency and th.e District regarding the potential conveyance of lease interests and portions of the area commonly known as the Marina Property, and the potential development an office/research and development life sciences campus, commercial development, and substantial public amenities for the Project; and, 1 WHEREAS, the MOU provided in Section 4 that its effective term ("Term") would commence on the specified Effective Date of May 27, 2009, and would terminate five hundred forty (540) days thereafter, unless extended or earlier terminated as provided in the MOU. The MOU further specified that the Parties may extend the Term for a maximum of three (3) additional thirty (30) calendar day terms; and, WHEREAS, in accordance with the MOU, on December 1, 2010, the District approved a sixty (60) day extension of the MOU, which extension was subsequently approved administratively by the City and Agency, such that the MOU is now set to expire on January 17, 2011; and, WHEREAS, in order to complete environmental review and obtain required governmental approvals and entitlements for the proposed :Project, the Parties have determined that it is necessary to extend the Term beyond that set forth in the MOU, including the three additiona130-day extensions specified in the MOU; and, WHEREAS, the City, the Agency, and the District now all wish to extend the term of the MOU, as described in the proposed First Amendment, attached to this Resolution as Attachment 1; and WHEREAS, the First Amendment to the MOU would extend the effective period of the MOU, but would not change any other sections, terms, or conditions of the MOU, which would remain in full force and effect; and WHEREAS, the MOU is a preliminary, non-binding agreement, and neither the MOU nor the First Amendment thereto, commits the City to a definite course of action or forecloses consideration of alternatives; and certification of environmental review pursuant to the California Environmental Quality Act (CEQA) will be required prior approval of any land use entitlements for the Project; therefore, execution of this First Amendment to the MOU is not an "approval" of a "project," as those terms are defined in CEQA. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of South San Francisco hereby: (1) Finds and determines that the recitals are true and correct; (2) Approves the First Amendment to the MOU in substantially the same form attached hereto as Attachment 1; (3) Authorizes the City Manager to enter into and execute the First Amendment to the MOU in substantially the same form as attached hereto as Attachment 1, and with any revisions, amendments, or modifications deemed necessary by the City Attorney to carry out the intent of this Resolution and which do not materially or substantially increase the City's obligations thereunder; and 2 (4) Directs the members, employees, officers, and agents of the City to jointly and severally do any and all things and to execute and deliver any and all other agreements deemed necessary to carry out, give effect to, and comply with the terms and intent of this Resolution and the First Amendment to the MOU as approved by this Resolution so long as such agreements do not materially or substantially increase the City's obligations with respect to the First Amendment to the MOU. I hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of South San Francisco at a regular meeting held on the _ day of 2010 by the following vote: AYES NOES: ABSTAIN: ABSENT: ATTEST:_ City Clerk 1559967.1 3 RESOLUTION NO. __ REDEVELOPMENT AGENCY BOARD, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION APPROVING AN AMENDMENT TO EXTEND THE MEMORANDUM OF UNDERSTANDING AMONG THE CITY OF SOUTH SAN FRANCISCO, REDEVELOPMENT AGENCY OF THE CITY OF SOUTH SAN FRANCISCO AND THE SAN MATED COUNTY HARBOR DISTRICT FOR POTENTIAL DEVELOPMENT OF THE OYSTER POINT MARINA AND OYSTER POINT BUSINESS PARK WHEREAS, the Redevelopment Agency of the City of South San Francisco ("Agency") is a redevelopment agency formed, existing and exercising its powers pursuant to the provisions the Community Redevelopment Law of the State of California (Health and Safety Code Section 33000 et seq.); and, WHEREAS, the City Council of the City of South San Francisco ("City") has adopted a Redevelopment Plan for the Downtown/Central Project Area (as amended, the "Project Area"); and, WHEREAS, the City is the owner of certain real property located within the Project Area and commonly known as the Oyster Point Marina ("Marina Property"); and, WHEREAS, the City and the San Mateo County Harbor District ("District") have established a joint powers authority that governs the development, operations, and maintenance of the Oyster Point Marina Property, including management of the Oyster Point Marina by the District; and, WHEREAS, Oyster Point Ventures LLC, a joint venture between Shorenstein Properties and SKS Investments LLC ("S/SKS"), purchased the Oyster Point Business Park, which is adjacent to the Oyster Point Marina, for the purpose of developing the Oyster Point Business Park into a modern research and development life sciences campus; and, WHEREAS, in collaboration with the City and the Agency, S/SKS has proposed a public-private development approach that would result in an integrated development of the Oyster Point Marina and the Oyster Point Business Park ("Project"), which requires collaboration amongst the City, the District, the Agency and S/SKS; and, WHEREAS, in May 2009 the City Council and Redevelopment Agency Board approved anon-binding Memorandum of Understanding ("MOU"), that establishes a mutual understanding among the City, the Agency and the District regarding the potential conveyance of lease interests and portions of the area commonly known as the Marina 1 Property, and the potential development anoffice/research and development life sciences campus, commercial development, and substantial public amenities for the Project; and, WHEREAS, the MOU provided in Section 4 that its effective term ("Term") would commence on the specified Effective Date of May 27, 2009, and would terminate five hundred forty (540) days thereafter, unless extended. or earlier terminated as provided in the MOU; and, WHEREAS, in accordance with the MOU, on December 1, 2010, the District approved a sixty (60) day extension of the MOU, which extension was subsequently approved administratively by the City and the Agency, such that the MOU is now set to expire on January 17, 2011; and, WHEREAS, in order to complete environmental review and obtain required governmental approvals and entitlements for the proposed Project, the City, the Agency, and the District have determined that it is necessary to extend the Term beyond that set forth in the MOU; and, WHEREAS, the City, the Agency, and the District now all wish to extend the Term of the MOU, as described in the proposed First Amendment, attached to this Resolution as Attachment 1; and WHEREAS, the First Amendment to the MOU would extend the effective period of the MOU, but would not change any other sections, terms, or conditions of the MOU, which would remain in full force and effect; and WHEREAS, the MOU is a preliminary, non-binding agreement, and neither the MOU nor the First Amendment thereto, commits the City to a definite course of action or forecloses consideration of alternatives; and certification of environmental review pursuant to the California Environmental Quality Act (CEQA) will be required prior approval of any land use entitlements for the Project; therefore, execution of this First Amendment to the MOU is not an "approval" of a "project," as those terms are defined in CEQA. NOW, THEREFORE, BE IT RESOLVED that the Redevelopment Agency Board of the City of South San Francisco hereby: (1) Finds and determines that the recitals are true and correct; (2) Approves the First Amendment to the :MOU in substantially the same form attached hereto as Attachment l; (3) Authorizes the Executive Director to enter into and execute the First Amendment to the MOU in substantially the same form as attached hereto as Attachment 1, and with any revisions, amendments, or modifications deemed necessary by counsel to the Agency to carry out the intent of this Resolution and which do not materially or substantially increase the Agency's obligations thereunder; and 2 (4) Directs the members, employees, officers, and agents of the Agency to jointly and severally do any and all things and to execute and deliver any and all other agreements deemed necessary to carry out, give effect to, and comply with the terms and intent of this Resolution and the First Amendment to the MOU as approved by this Resolution so long as such agreements do not materially or substantially increase the Agency's obligations with respect to the First Amendment to the MOU. I hereby certify that the foregoing Resolution was regularly introduced and adopted by the Redevelopment Agency Board of the City of South San Francisco at a regular meeting held on the day of 2010 by the following vote: AYES: NOES: ABSTAIN: ABSENT: 1559977.1 ATTEST: City Clerk 3 FIRST AMENDMENT TO MEMORANDUM OF UNDERSTANDING (Harbor District -Oyster Point Marina) THIS FIRST AMENDMENT TO MEMORANDUM OF UNDERSTANDING (this "First Amendment"), dated and made effective as of , 20_ (the "Effective Date") is entered into by and among the City of South San Francisco, a California municipal corporation ("City"), South San Francisco Redevelopment Agency, a public body, corporate and politic ("Agency") and the San Mateo County Harbor District, a political subdivision of the State of California ("District"). City, Agency, and District are hereinafter collectively referred to as the "Parties." RECITALS A. The Parties previously entered a Memorandum of Understanding ("MOU"), effective as of May 27, 2009, setting forth preliminary points of agreement among the Parties regarding the potential conveyance of lease interests and portions of the area commonly known as the Oyster Point Marina ("Marina Property"), for the potential development anoffice/research and development life sciences campus, commercial development (including retail, restaurants, and hotel uses), and substantial public amenities located on the Oyster Point Business Park ("Business Park") and the Marina Property ("Project"). B. The MOU provided in Section 4 that its effective term ("Term") would commence on the specified Effective Date of May 27, 2009, and would terminate five hundred forty (540) days thereafter, unless extended or earlier terminated as provided in the MOU. The MOU further specified that the Parties may extend the Term for a maximum of three (3) additional thirty (30) calendar day terms. C. In accordance with the MOU, on December 1, 2010, the District approved a sixty (60) day extension of the MOU, which extension was subsequently approved by the City and Agency, such that the MOU is now set to expire on January 17, 2011. D. In order to complete environmental review and obtain required governmental approvals and entitlements for the proposed Project, the Parties have determined that it is necessary to extend the Term beyond that set forth in the MOU, including the three additiona130-day extensions specified in the MOU. NOW THEREFORE, in consideration of the mutual covenants and agreements set forth in the MOU and hereinafter, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows: AGREEMENT Section 1 MOU in Effect. The Parties acknowledge and agree that the MOU remains in full force and effect. Section 2 Section 4 Amended. Section 4 of the MOU is hereby amended to read in full as follows: sf-2884308 Section 4 Term. The term of this MOU (the "Term") shall commence on the Effective Date, and shall terminate on September 30, 2011, unless extended or earlier terminated as provided herein. The Term maybe extended for up to a maximum of three (3) additional thirty (30) calendar day terms upon the mutual written agreement of District acting through and in the discretion of its General Manager, the Agency acting through and in the discretion of its Executive Director and the City acting through and in the discretion of its City Manager, or maybe extended as otherwise mutually agreed upon by the Parties. Section 3 Other Terms and Conditions to Remain in Effect. All other provisions, terms, and conditions of the MOU not expressly amended by this First Amendment shall remain in full force and effect. IN WITNESS WHEREOF, the Parties have executed this First Amendment effective as of the date first written above. CITY CITY OF SOUTH SAN FRANCISCO, a municipal corporation By: Name: City Manager ATTEST: By: City Clerk APPROVED AS TO FORM: By: City Attorney AGENCY REDEVELOPMENT AGENCY OF THE CITY OF SOUTH SAN FRANCISCO, a public body, corporate and politic By:_ Name: Executive Director ATTEST: By: Agency Secretary APPROVED AS TO FORM: By: Agency General Counsel sf-2884308 2 DISTRICT SAN MATEO COUNTY HARBOR DISTRICT, apolitical subdivision of the State of California By: Name: General Manager ATTEST: By District Secretary APPROVED AS TO FORM: By: District Counsel sf-2884308 3