Title
Adoption of Resolution Approving a Partial Exemption from Public Art Ordinance for the McKay Respite Center (1245 McKay Avenue), Reducing the Public Art In-Lieu Fee From $244,117 to $100,000. (Base Reuse and Economic Development)
Body
To: Honorable Mayor and Members of the City Council
From: Adam W. Politzer, Interim City Manager
EXECUTIVE SUMMARY
City of Alameda’s (City) Public Art Ordinance (Alameda Municipal Code Section 30-98) requires commercial, industrial and municipal development projects having a building development cost of two hundred fifty thousand ($250,000) dollars or greater to devote one percent (1%) of building development costs for public art in Alameda. 1245 McKay Avenue was federal property until 2017, when it was declared surplus. Under Title V of the McKinney-Vento Homeless Assistance Act, Alameda Point Collaborative (APC) applied for and secured the property to use for homeless services. In 2019, Alameda residents approved Measure A to support development of a medical respite center and supportive housing community at 1245 McKay Avenue. Additionally, the project has received more than $30 million in state and regional grant funding, as well as support from foundations and health care organizations.
After a series of hearings and submittals, APC was granted approval by the City to develop the property. The project, officially named the Beacon, is currently under construction and will feature two buildings:
Building 1, an approximately 61,300-square-foot, two-story senior convalescent living facility with 90-100 units of Permanent Supportive Housing (PSH). By becoming stably housed, residents will gain the foundation to stabilize physical and behavioral health conditions, address complex trauma and social determinants of health, and receive palliative or end-of-life care when appropriate.
Building 2, the McKay Respite Center, an approximately 29,810-square-foot, 50-bed recuperative care medical respite facility with twenty-four/seven medical care, mental health services, and case management with linkages to housing, health and community resources.
Building 1, the senior Permanent Supportive Housing development is 100% affordable and is therefore exempt from the Public Art Ordinance. However, the McKay Respite Center, is not exempt. The total valuation of the construction is $24,411,700 which requires APC to pay a $244,117 Public Art in-lieu fee. The fee is cost-prohibitive for the non-profit whose primary mission is to provide supportive housing and services to Alameda’s homeless or formerly homeless residents. APC is dedicated to delivering Public Art at the Beacon development and requests a partial exemption of the Public Art Ordinance, reducing the Public Art in-lieu fee to $100,000.
The McKay Respite Center serves medically fragile homeless, and it is critical every dollar be dedicated towards care. Staff is requesting that City Council approve a partial exemption of the Public Art Ordinance, reducing the Public Art in-lieu fee to $100,000. APC intends to deliver on-site Public Art valued at $100,000 to highlight and honor the history of the site.
BACKGROUND
The Public Art Ordinance (Alameda Municipal Code Section 30-98) (Exhibit 1) requires commercial, industrial and municipal development projects having a building development cost of two hundred fifty thousand ($250,000) dollars or greater, as well as residential projects with five (5) or more units costing $250,000 or greater, to devote one percent (1%) of building development costs for public art in Alameda. Any in-lieu fees collected are deposited in the dedicated Fund and the Fund can only be used by the City to provide or support public art. The current balance of the Public Art Fund is approximately $888,102; a total balance will be available at the end of the fiscal year when actuals expenses and revenues are reconciled.
APC submitted an application on January 28, 2020, requesting Design Review to allow the rehabilitation of an approximately 50,517 square foot existing building for adaptive reuse as a senior living convalescent home on approximately 3.65-acres located at 1245 McKay Avenue. Design Review Application No. PLN20-0047 was approved on July 21, 2020. The project is 100% affordable and is therefore exempt from the Public Art Ordinance.
APC submitted an application on February 22, 2021, requesting Design Review to allow the construction of an approximately 29,810-square-foot medical respite center on an approximately 3.65-acre site located at 1245 McKay Avenue. On September 7, 2021, City Council approved Design Review Application No. PLN21-077. The total valuation of the McKay Respite Center is $24,411,700 which requires APC to pay a $244,117 Public Art in-lieu fee. The fee is cost-prohibitive for the non-profit whose primary mission is to provide supportive housing and services to Alameda’s homeless or formerly homeless residents. APC is dedicated to delivering Public Art at the Beacon development and requests a partial exemption of the Public Art Ordinance, reducing the Public Art in-lieu fee to $100,000. APC intends to deliver on-site Public Art valued at $100,000 to highlight and honor the history of the site.
DISCUSSION
Under the Public Art Ordinance, Municipal or Non-Profit Organization Development Projects, including parks, may be exempted (fully or partially) from the Public Art in-lieu fee when the City Council finds that, based upon the characteristics of the project or the project budget, it is in the best interests of the Alameda community to do so. Because APC is a nonprofit and a long-standing pillar of community service to Alameda’s homeless or formerly homeless residents, staff recommends that City Council approve a partial exemption of the Public Art Ordinance, reducing the Public Art in-lieu fee to $100,000. The McKay Respite Center serves medically fragile homeless people, and it is critical every dollar be dedicated towards care.
ALTERNATIVES
• Approve a Partial Exemption from Public Art Ordinance for the McKay Respite Center, reducing the fee to $100,000.
• Approve a Partial Exemption from Public Art Ordinance for the McKay Respite Center, reducing the fee with different terms; this would require City Council to provide staff direction on revised terms.
• Do not approve a Partial Exemption from Public Art Ordinance for the McKay Respite Center. The fee will remain $244,117.
FINANCIAL IMPACT
As APC intends to deliver all public art on site rather than contributing to the Public Art Fund, there is no financial impact to the City associated with approving the recommended partial exemption.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
• On April 9, 2019, voters in Alameda approved Measure A, authorizing the City's proposal to redevelop vacant federal buildings located on a 3.65-acre parcel on McKay Avenue as the site of a wellness center for senior assisted living and homelessness services.
• Public Art Ordinance (November 7, 2017)
o 30-98.3-a. that commercial, industrial and municipal development projects having a building development cost of two hundred fifty thousand ($250,000.00) dollars or greater shall be subject to the provisions [the Public Art Requirement].
o 30-98.3-b. Exemptions to the Public Art Requirement
o 30-98.4 - Contribution Requirements
• Alameda Public Art Master Plan (2023)
This action is subject to the Levine Act.
ENVIRONMENTAL REVIEW
This action does not constitute a “project” as defined in California Environmental Quality Act (CEQA) Guidelines Section 15378 and therefore no further CEQA review is required.
CLIMATE IMPACT
There are no identifiable climate impacts or climate action opportunities associated with the approval of this recommendation.
RECOMMENDATION
Adopt a resolution approving a partial exemption from Public Art Ordinance for the McKay Respite Center (1245 McKay Avenue), reducing the Public Art In-Lieu fee from $244,117 to $100,000.
Respectfully submitted,
Abigail Thorne-Lyman, Base Reuse and Economic Development Director
By,
Jackie Keliiaa, Development Manager
Financial Impact section reviewed,
Ross McCarthy, Finance Director
Exhibit:
1. Public Art Ordinance