City of South San Francisco P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA Legislation Text Report regarding the Housing Standing Committee recommendation to consider selecting either AGI/KASA Partners or Blake Griggs as the preferred developer for a Successor Agency to the Redevelopment Agency of the City of South San Francisco property known as the San Francisco Public Utilities Commission site. (Mike Lappen, Economic Development Coordinator) RECOMMENDATION The Housing Standing Committee of the City Council and Planning Commission (the Committee ) recommends that that the joint City Council/Successor Agency consider selecting either Blake Griggs or AGI/KASA Partners as the preferred developer for development of a Successor Agency to the Redevelopment Agency of the City of South San Francisco ( Successor Agency ) property known as the San Francisco Public Utilities Commission site (the PUC Site ). BACKGROUND This report provides background information on the developer solicitation process for the PUC Site, brief descriptions of each developer proposal, the Committee s recommendation to select a preferred and alternate developer, and next steps in the disposition process. Site Description In 2007, the former Redevelopment Agency of the City of South San Francisco entered into an agreement with the City and County of San Francisco/San Francisco Public Utilities Commission to purchase 13.2 acres of land located in the vicinity of El Camino Real & Chestnut Ave. The sale was completed and the property was transferred to the Agency on January 31, 2008. Within this 13.2-acre property, there is a 5.9-acre site - currently referred to as the PUC Site - that is the subject of the current developer solicitation process. The PUC Site consists of two vacant lots totaling approximately 5.9 acres, identified as assessor s parcel number (APN) 093-312-060 (see map, Attachment 1). The PUC Site offers an outstanding opportunity for mixed-use development, due to its large contiguous land area, extensive frontage along Mission Road, and direct pedestrian access to the South San Francisco Bay Area Rapid Transit (BART) Station, El Camino Real shopping, Centennial Trail / Colma Creek, and other amenities. Planning Background The PUC Site is located within a portion of the El Camino corridor that, due to proximity of the BART Station and other factors, has the potential to become a vibrant mixed-use neighborhood and activity node for the city. The City Council has long recognized the strategic importance of this area, and to help the area reach its full potential the City has: City of South San Francisco Page 1 of 5
Adopted the South San Francisco (SSF) General Plan which encourages transit oriented development; Implemented the SSF BART Transit Village Plan and ordinance; Prepared plans to extend Oak Avenue from Mission Road to El Camino Real; Constructed the majority of Centennial Way over the BART- San Francisco International Airport right-of-way; and Using the former South San Francisco Redevelopment Agency, purchased vacant land from the San Francisco Public Utilities Commission and Ron Price Motors to ensure high quality mixed use development. The most recently approved housing projects in the vicinity include: Park Station at 1200 El Camino Real (99 units), the Mid-Peninsula Housing Project at 636 El Camino Real (109 affordable units and 5,700 square feet of commercial space), the Mission & McLellan project at 1309 Mission Road (20 units and 6,000 square feet of commercial space), and Summerhill Homes project at 998 El Camino Real (172 units and 6,000 square feet of commercial space). Long Range Property Management Plan Following the dissolution of redevelopment agencies across California in 2012, the City prepared a Long Range Property Management Plan (LRPMP). Housing properties were transferred to the City and the non-housing properties were transferred to the Successor Agency. The City/Successor Agency is now responsible for disposition of these non-housing properties. The LRPMP designated the PUC property for future development, specifically, for disposition and development of uses consistent with the El Camino Real/Chestnut Area Plan. The California Department of Finance formally approved the LRPMP in 2015. El Camino Real/Chestnut Avenue Area Plan In 2011, the City adopted the El Camino Real/Chestnut Avenue Area Plan ( Area Plan ), which introduced higher density development on and in the vicinity of the PUC Site. In summary, the adopted Area Plan set forth: Heights and intensities greater than existing, surrounding development to emphasize the planning area s central role as a transit-oriented destination; Overall height ranges of three to six stories, with taller buildings up to 15 stories tall disbursed throughout, and which are varied in height and bulk, to create visual interest; A new neighborhood of up to 4,400 residents housed in low- to high-rise buildings; A range of commercial uses; walking access to everyday amenities; and a new Civic Campus with library, recreation and police services, plazas, and gathering spaces for the entire South San Francisco community; and A linear park and a pedestrian-oriented Main Street lined with restaurants, cafés, and outdoor seating along a portion of the BART right-of-way. The PUC Site is zoned according to the El Camino Real/Chestnut Avenue Area Plan, with designations including High Density Residential, El Camino Real Mixed Use North, El Camino Real Mixed Use North High City of South San Francisco Page 2 of 5
Intensity, El Camino Real Mixed Use North Medium Intensity, and Public Use. These Zoning designations allow for base maximum densities of 80 to 120 foot height limits, subject to incentive based increases, and floor area ratios of 2.0 to 3.0. Developer Selection Process In order to dispose of the PUC Site in a manner consistent with the LRPMP, on May 1, 2017, the City issued a Request for Qualifications (RFQ) for a well-qualified development team to create a high-quality, mixed-use, transit-oriented development on the PUC Site. Twelve development teams responded. Responses to the RFQ were reviewed and reduced to a list of eight finalists, which were interviewed by a sixmember Review Panel of community members and City staff. Following the interviews, the Review Panel recommended that four developers be invited to respond to a Request for Proposals (RFP), subject to Committee approval. On October 16, 2017, the Committee reviewed the draft RFP and the Review Panel s recommended short list of developers. The Committee approved the RFP and determined that the following teams should be invited to respond to it: 1. AGI Avant/KASA Partners; 2. Blake Griggs; 3. Republic Metropolitan; 4. Sares Regis; and 5. Summerhill Housing Group. In late October 2017, staff sent the approved RFP to the selected developer teams. The 90-day solicitation concluded on February 5, 2018. Five developer teams submitted responses to the RFP: AGI/KASA, Blake Griggs, Republic Metropolitan, Sares Regis, and SummerHill Housing Group. Their proposals are summarized and attached in full to the Committee staff report dated March 12, 2018. On March 12 and 13, 2018, the Committee interviewed the five developer teams that submitted responses to the RFP. Each team presented their project and answered specific questions related to project design, architecture, project management, financing methods, proposed community benefits, and construction phasing. The two-day interview period culminated in a closed session during which price and terms were presented to the Committee. Needing more information from three of the developer teams, the Committee invited AGI/KASA, Blake Griggs, and SummerHill Housing Group to provide answers to specific Committee-directed questions on March 20, 2018. On March 20, 2018, the Committee met again to review the three developers revised project descriptions, site plans, architectural details, and amended offers. DISCUSSION Housing Standing Committee Recommendation At the March 20, 2018 meeting, the three developers presented revised proposals. AGI/KASA reduced the City of South San Francisco Page 3 of 5
parking ratio and the off-site open space and parks. Blake Griggs added a childcare facility and reduced the height of the original tower from 155 feet to 125 feet. Summerhill added 15 for-sale units, expanded retail space, and refined design of a childcare center. Based on the revised proposals presented on March 20, 2018, the Committee decided to recommend that the full City Council consider either AGI/KASA and Blake Griggs as the preferred developer of the PUC Site. The Committee is recommending the two developers because of their qualifications, project proposal, community and economic benefits, and offer prices. The Committee felt that the City Council/Successor Agency should have the opportunity to decide on the preferred developer because the two proposed projects present different visions for this critical site at the center of the City. The El Camino Real/Chestnut Area Plan envisions an area with public and private amenities that will attract both residents and businesses. The two recommended developer teams take different approaches to using the site to address the goals of the Area Plan. Attachment 2 includes a summary of the City expectations and evaluation criteria utilized in the selection process. The two developer team proposals for site planning, architecture, retail, parking, childcare, and parks/open space, as revised on March 20, 2018, are summarized below: AGI/KASA Partners The project team includes AGI Avant Inc., KASA Partners, Kwan Hemi Architects, BAR Architects, RHAA Landscape Architects, GLS Landscape/Architecture, and Bridge Housing. See Attachments 3 & 4 for full proposal and the associated presentation. Total Number of Units: 812 units BMR Units: 162 units (20 percent) in a stand-alone project built by Bridge Housing Rental Units: 812 units For-Sale Units: 0 units Building Height: 85 feet Child Care: 5,500 square feet Open/Park Space: 3.13 acres on site and 1.8 acres off site Retail Space: 13,000 square feet (SF Made) Parking: 1,049 spaces (reduced parking ratio) Blake Griggs The project team includes Blake Griggs, Eden Housing, Capital Senior Housing, TCA Architects. See Attachments 5 & 6 for full proposal and associated presentation. Total Number of Units: 820 units BMR Units: 167 combines 97 units in a stand-alone project built by Eden Housing and 70 inclusionary rental units Rental Units: 702 units City of South San Francisco Page 4 of 5
For-Sale Units: 118 units (all in Alternative C tower) Building Height: 125 feet for the tower and 85 feet for the two building on Site C Child Care: 5,000 square feet (located in Eden s building) Open/Park Space: 3.5 acres Retail Space: 14,000 square feet Parking: 1,000-1,100 CONCLUSION At this meeting, the Committee requests that the City Council/Successor Agency select either Blake Griggs or AGI/KASA as the preferred developer of the PUC site. Following this public hearing and Closed Session, staff will bring forward a resolution approving the preferred and alternate developer and authorizing the City Manager to enter into an exclusive negotiating rights agreement (ENRA) with the preferred developer. Following City Council/Successor Agency approval of the resolution, the City will enter into an ENRA with the selected developer, which will form the basis of agreements for the development and disposition of the PUC Site. The ENRA period is anticipated to take approximately ten months to conclude. Attachments: 1. Site Map 2. City Expectations and Evaluation Criteria 3. AGI/KASA Partners Proposal 4. AGI/KASA Supplemental Presentation 5. Blake Griggs Proposal 6. Blake Griggs Supplemental Material City of South San Francisco Page 5 of 5