Title
Annual Review: Alameda Landing Mixed Use Project Development Agreement Applicant: Catellus Alameda Development, LLC. The applicant requests a periodic review of two Development Agreements related to the Alameda Landing Mixed Use Residential Project and the Alameda Landing Mixed Use Commercial Project.
Body
CITY OF ALAMEDA
Memorandum
To: Honorable President and
Members of the Planning Board
From: Andrew Thomas
City Planner
Date: July 25, 2016
Re: Annual Review: Alameda Landing Mixed Use Project Development Agreement Applicant: Catellus Alameda Development, LLC. The applicant requests a periodic review of two Development Agreements related to the Alameda Landing Mixed Use Residential Project and the Alameda Landing Mixed Use Commercial Project.
BACKGROUND
In January 2007, the City of Alameda and Palmtree Acquisition Corporation (successor by merger to Catellus Development Corporation, predecessor-in-interest to Catellus Alameda Development, LLC) (“Master Developer”), entered into two Development Agreements, one for the “Alameda Landing Commercial Project” and the other for the “Alameda Landing Residential Project” (collectively, the “Alameda Landing Development Agreements”). This annual review covers both of the Alameda Landing Development Agreements and reports on activities and developments taking place during the period from April 2015 through May 2016.
Alameda Municipal Code (“AMC”) Section 30-95.1 authorizes the Planning Board to conduct a public hearing at which the applicant must demonstrate good faith compliance with the terms and conditions of the agreements. In order to demonstrate good faith compliance, the applicant has submitted a Master Developer Letter of Compliance (Exhibit 1) for the annual review as required under AMC Section 30-95.1 and Article 5 of the Alameda Landing Development Agreements. The letter summarizes actions that have been taken during the period from April 2015 through May 2016.
Pursuant to the Alameda Landing Master Plan and Environmental Impact Report (EIR), the applicant is also required to prepare an annual report on its Transportation Demand Management program. Pursuant to those requirements, the TDM Annual Report must be reviewed by the Transportation Commission and City Council. The Council reviewed the 2015 TDM Annual Report in March 2016. The Transportation Commission will review the next annual report in January 2017.
ANALYSIS
The City of Alameda and Master Developer originally entered into a Development Agreement in 2000, for the “Catellus Mixed Use Project” that is commonly referred to as the “Bayport neighborhood” and the 77-acre Alameda Landing area generally located north of the College of Alameda, south of the Oakland Alameda Estuary, west of the Webster and Posey Tubes, and east of the former Coast Guard housing and Shinsei Gardens apartments. Pursuant to the original Development Agreement, the City and Catellus Development Corporation began work on the Bayport neighborhood immediately and demolition and site preparation began in 2002.
In 2005, the parties began work on a revised Master Plan, a Supplemental EIR, and an amended Development Agreement for a revised land use plan for the 77-acre Alameda Landing portion of the project area. In 2007, the City Council approved the amended Bayport-Alameda Landing Master Plan, the Supplemental EIR, and an amended Development Agreement. At that time the original project was bifurcated due to a change in ownership, pursuant to which FOCIL-BP, LLC (“Bayport Developer”) became the master developer of the Bayport neighborhood, and a Catellus entity remained the master developer of Alameda Landing. The amended original Development Agreement continued to govern development of the Bayport neighborhood which was near completion. Commencing in 2007, the Alameda Landing Development Agreements governed development of the Alameda Landing Commercial Project area, and the Alameda Landing Residential Project area.
Between 2007 and 2010, the Alameda Landing projects were slowed by the recession. However, the City and the Master Developer used this period to complete the new Stargell Avenue extension and intersection at Webster Street. This major public improvement required complex negotiations and cooperation with the College of Alameda and Caltrans and provides a new gateway to Alameda Landing, west Alameda, and future development at Alameda Point.
In 2010, the City of Alameda and the Bayport Developer officially completed the Bayport neighborhood and met all of the associated terms and conditions included in the Bayport Development Agreement and it was terminated. Neither the City, nor the Bayport Developer, nor the Master Developer have any further Development Agreement obligations for the Bayport neighborhood area.
In July 2012 and December 2013, the new Development Agreement pertaining to the Alameda Landing Commercial Project area was partially assigned to Target Corporation and Catellus Alameda Retail, LLC, respectively in connection with land conveyances. Also in December 2013, the new Development Agreement pertaining to the Alameda Landing Residential Project area was partially assigned to Tri Pointe Homes, Inc. in connection with conveyance of the first sub-phase of the Alameda Landing Residential Project development. In December 2014, there was a second partial assignment of the Residential Development Agreement to Tri Pointe in connection with the second sub-phase of residential development. The Master Developer retained its master developer obligations under the Alameda Landing Development Agreements.
Between January 2010 and March 2014, City staff, Planning Board, City Council and Catellus staff worked diligently to develop the retail and residential sub-areas of the Alameda Landing project (those portions of the project area generally located between Stargell Avenue and Mitchell Avenue). This work included completion of all of the land use entitlements for the Alameda Landing Commercial Project area, and most of the land use entitlements for the Alameda Landing Residential Project area.
In October of 2013, the Master Developer, Target Corporation, and the City celebrated the successful opening of a Target Store in the Alameda Landing Retail center and the initiation of the West Alameda Transportation Management Association (“TMA”) and shuttle services between Alameda Landing and Downtown Oakland BART.
The period from January 2013 through March 2014 focused on the preparation, review, and issuance of permits for, and the construction of, the major public infrastructure improvements necessary to support the Alameda Landing Commercial Project and Alameda Landing Residential Project areas consistent with the Master Infrastructure Plan for Alameda Landing. In addition, the City issued building permits consistent with the Planning Board’s design review approvals for the retail center and a residential neighborhood along Fifth Street. In addition, during this period, the West Alameda Business Association (WABA) district boundaries were expanded to include the Alameda Landing Commercial Project area, as required by the applicable Development Agreement.
The period from January 2013 through March 2014 also focused on review and approval of building permits for the Phase I residential development and the final subdivision map for the Phase II residential development, as well as Design Review for a 32-unit, multi-family affordable complex. In addition, a 17,000 square foot Michaels store opened in October, 2014, a 45,000 square foot Safeway store opened in January, 2015, and three shop spaces opened between December 2014 and January, 2015 for Sleep Train, The Habit Burger Grill, and Panda Express.
During the current Development Agreement Annual Review Period (April 2015 through May 2016), Catellus and the City worked together on the following activities:
• Entitlements: The City Council approved a Final map for Phase 3 of Tri Pointe Home’s residential area.
• Affordable Housing: The City of Alameda Housing Authority and RCD held a ground-breaking event for Stargell Commons, the 32-unit, multiple family affordable housing project for low- and very low-income households. The project is under construction.
• Land Takedowns: The City sold six acres to Tri Pointe Homes which represents the last remaining land in the residential area.
• Construction: Vertical construction of the Alameda Landing retail center is now complete. The retail center is 87 percent leased with 19,398 square feet currently under lease negotiation or available for lease. Vertical construction of the residential area is ongoing. Approximately 100 single-family detached and attached homes in Phase I have been built and sold to date. The townhomes and condominiums in Phase 2 are under construction, with the first round of closing expected in the third quarter of 2016. The final phase of the residential area will be under construction by the third quarter of 2016. Nine of the 16 moderate-income units were sold during the review period.
• Waterfront Project: On May 23, 2016, the developer attended a Planning Board workshop and presented conceptual plans for development of 41 acres located north of Mitchell Avenue.
• MMRP: Developer and City staff continue to coordinate compliance with the Mitigation Monitoring and Reporting Program (MMRP) as part of the Supplemental EIR.
• Coordination: Developer meets regularly with City staff for project updates. In addition, developer has been working with the West Alameda Business Association to ensure collaboration on all projects.
Exhibit 1 presents a status report of actions taken by the Master Developer, including on behalf of Target Corporation and TRI Pointe Homes, Inc., pursuant to the Alameda Landing Development Agreements during the review period.
During the review period, there has been on-going cooperation between the Master Developer and the City, as well as with Catellus Alameda Retail, LLC, Target Corporation, and TRI Pointe Homes, Inc., regarding all applicable aspects of the Alameda Landing Development Agreements, as there has been in previous years. As a result, staff believes that the Master Developer, Catellus Alameda Retail, LLC, Target Corporation, and TRI Pointe Homes, Inc., have all performed in good faith compliance with the terms and conditions of the Alameda Landing Development Agreements.
Over the course of the next few years, staff anticipates that the City/Master Developer partnership, together with Catellus Retail, LLC, and TRI Pointe Homes, Inc., as applicable, will continue to work on activities necessary to complete leasing of the retail center, complete construction of the residential neighborhoods along Fifth Street and Mitchell Avenue, and begin the final entitlements with the Planning Board for the waterfront areas between Mitchell Avenue and the Estuary.
ENVIRONMENTAL REVIEW
Annual review and reporting is exempt from the California Environmental Quality Act.
RECOMMENDATION
Approve the draft resolution (Exhibit 2) declaring that Master Developer, Catellus Alameda Retail, LLC, Target Corporation, and TRI Pointe Homes, Inc., have demonstrated good faith compliance with the terms and conditions of the Alameda Landing Development Agreements.
Respectfully submitted,
Andrew Thomas
Assistant Community Development Director
Exhibits:
1. Catellus Alameda Development, LLC Letter dated June 9, 2016
2. Draft Planning Board Resolution