Title
Annual Review: Del Monte Mixed Use Project Development Agreement - Applicant: TL Partners I, LP. Approve a Resolution Finding that the TL Partners I, LP has Demonstrated Good Faith Compliance with the Terms and Conditions of the Del Monte Development Agreement through January 2016, based on the Findings contained in the Draft Resolution. This Compliance Review is not a project under CEQA.
Body
To: Honorable President and
Members of the Planning Board
From: Andrew Thomas
Assistant Community Development Director
BACKGROUND
In September 2014, the Planning Board held a public hearing and unanimously approved a Master Plan, Density Bonus application, Development Plan, Design Review, Development Agreement, and Transportation Demand Management Program for the adaptive reuse of the Del Monte Warehouse and surrounding property located at 1501 Buena Vista Avenue.
On January 15 2015, the City of Alameda and TL Partners I, LP, a California limited partnership; ("Developer") entered a Development Agreement for the Del Monte Warehouse Project. Pursuant to State law, Alameda Municipal Code (AMC) Section 30-95.1, and Article 5 of the Development Agreement, the Planning Board is required to hold a public hearing at which the applicant must demonstrate good faith compliance with the terms and conditions of the agreement. In order to demonstrate good faith compliance, the applicant has submitted a Developer Letter of Compliance (Exhibit 1) for the annual review.
The Developer has been working with its design team to complete the construction drawings and improvement plans for the site and anticipates commencement of improvements on the site in 2016, with vertical building construction beginning in late 2016. The Developer has met regularly with City staff during this review period to ensure that the Development Agreement and all subsequent approvals are being implemented in a timely fashion.
ANALYSIS
Exhibit 1 summarizes actions that have been taken by the Developer and the City during the period from January 2015, through January 2016, to implement the provisions of the Development Agreement. Those activities are summarized below and described in full in the attached letter from the Developer:
• Jean Sweeney Open Space Park: The Developer paid $300,000 towards a total contribution of $2,000,000 to fund portions of the Jean Sweeney Open Space Park. The initial $300,000 is for design of the park. The City has entered into a contract with Placeworks Landscape Design and is nearing 30% design of the park. The design and construction documents should be completed by December 2016. Construction of Phase 2, the most eastern portion of the park along Sherman Street will likely commence in Spring 2017 and the Phase 1, Cross Alameda Trail, will start in late fall 2016.
• Affordable Housing Agreement: The Developer is required to submit for City Council's review and approval, an Affordable Housing Agreement for the provision of fifty-five (55) affordable housing units. On July 21, 2015, the City Council approved the Affordable Housing Agreement and in September 2015, the City Council approved an option agreement between the City and the Alameda Housing Authority to transfer approximately .47 acres of City-Owned property for the construction of a 31-unit affordable senior housing development.
• Affordable Housing Project: On May 26, 2015, the Planning Board approved the Development Plan and Design Review for the 31-unit low- and very low-income senior affordable housing building. The Housing Authority submitted its funding application to the State Tax Credit Allocation Committee (TCAC) in March 2016. If funded, this project will start construction in late 2016.
• Clement Extension: The Developer is required to construct, at no cost to the City, the extension of Clement Avenue from Atlantic Street to Entrance Road, including a new intersection and signal at Sherman, Clement, and Atlantic, and installation of stop signs at the following intersections: Buena Vista/Entrance Road and Clement/Entrance Road. The improvements are to be completed on the earlier of the issuance of the 250th certificate of occupancy for the project, or four years from the effective date of the Development Agreement; however, the completion deadline may be extended if necessary pursuant to terms of the DA. Wind River System currently owns a portion of the land that will be needed to complete the extension of Clement Avenue. To that end, the Developer must acquire land from Wind River Systems before it can construct those improvements. The Developer and Wind River are in discussions and a final agreement and purchase is expected in the summer of 2016. Developer is also obligated to establish a funding mechanism to provide funding to the City for maintenance of Clement Extension.
• Transportation Demand Management Program: The Developer is required to implement a Transportation Demand Management Program prior to issuance of the first certificate of occupancy. Since this is not anticipated until late 2017, or 2018, none of the implementation measures (e.g., establishment of the TMA, provision of a shuttle to BART, and provision of AC Transit passes to each household) were completed during this review period.
• Retail/Commercial Leasing: The Developer is required to include a minimum of 30,000 square feet of ground floor neighborhood-serving retail/commercial space within the Project. Leasing of these retail spaces will commence upon building completion.
• Beneficial Transfer Fee Agreement: The Beneficial Transfer Fee Agreement was executed concurrently with the Development Agreement in January 2015.
During the review period, there has been on-going cooperation between the Developer and the City regarding all applicable aspects of the Del Monte project, as there has been in previous years. Staff believes that the Developer has performed in good faith compliance with the terms and conditions of the Del Monte Development Agreement.
ENVIRONMENTAL REVIEW
Annual review and reporting is exempt from the California Environmental Quality Act.
RECOMMENDATION
Approve the draft resolution (Exhibit 3) declaring that the Developer, TL Partners I, LP, has demonstrated good faith compliance with the terms and conditions of the Del Monte Development Agreement.
Respectfully submitted,
Andrew Thomas
Assistant Community Development Director
Exhibits:
1. TL Partners I, LP Letter dated May 12, 2016, 2016
2. Draft Planning Board Resolution