Title
Recommendation to Approve the First Amendment to the Exclusive Negotiating Agreement (ENA) between the City of Alameda and a Consortium of Four Developers Consisting of MidPen Housing, Alameda Point Collaborative, Building Futures with Women and Children, and Operation Dignity to Extend the Term if the ENA to December 31, 2017 unless Terminated or Extended as Provided in the ENA, and Complete an Implementation Term Sheet, Disposition and Development Agreement, and Development Plan for the Design and Construction of a New Supportive Housing Facilities on a 10.4-Acre Parcel in the Main Street Neighborhood at Alameda Point. (Base Reuse 819099)
Body
To: Honorable Mayor and Members of the City Council
From: Jill Keimach, City Manager
Re: Approve the First Amendment to the Exclusive Negotiating Agreement (ENA) between the City of Alameda and a Consortium of Four Developers Consisting of MidPen Housing, Alameda Point Collaborative, Building Futures with Women and Children, and Operation Dignity to Extend the Term if the ENA to December 31, 2017 unless Terminated or Extended as Provided in the ENA, and Complete an Implementation Term Sheet, Disposition and Development Agreement, and Development Plan for the Design and Construction of a New Supportive Housing Facilities on a 10.4-Acre Parcel in the Main Street Neighborhood at Alameda Point
BACKGROUND
On December 15, 2015, the City Council unanimously approved an Exclusive Negotiation Agreement (ENA) with MidPen Housing, as Developer, and Alameda Point Collaborative, Building Futures with Women and Children, and Operation Dignity (together referred to as “The Collaborating Partners”) to begin work on consolidating existing housing and develop a supportive housing campus in the southeastern portion of the Main Street Neighborhood. (Exhibit 1).
In the summer of 2015, MidPen and the Collaborating Partners began an extensive community planning process to confirm an ideal location and preliminary site plan for the new campus. Their preferred location has been incorporated into the Draft Main Street Specific Plan (Specific Plan).
The relocation and consolidation of the Collaborating Partner’s campus to their preferred location is important from an operational, safety and funding perspective. Currently, the Collaborating Partner’s facilities are spread over a 34-acre area, which is challenging to provide services efficiently and cost-effectively. Their residents include vulnerable populations, including homeless veterans suffering from post-traumatic stress syndrome and women and children affected by domestic violence, who need a safe environment where their needs are met. Their current facilities are 70+ years old and require constant maintenance by the City. The new location would allow the City to demolish the dilapidated buildings, reduce maintenance costs and open up land for redevelopment. The Collaborating Partners’ new location meets a number of requirements for low-income tax credits and is the best opportunity for funding the state of the art campus.
The ENA requires that MidPen and the Collaborating Partners prepare an Implementation Term Sheet, a proposed Development Plan, a project schedule and a draft Financing Plan based on the Main Street Specific Plan once it is approved. There was no requirement of approving a Disposition and Development Agreement (DDA). The Term of the ENA is set to expire on December 15, 2016 unless extended by the City Council.
DISCUSSION
MidPen and the Collaborating Partners have been working closely with staff and providing regular updates on the status of their financing plan and development plan. However, an approved Specific Plan is necessary to make additional progress on their plans and the other requirements of the ENA. The Specific Plan will approve development standards and guidelines, including setbacks, building heights, bulk and massing, parking, building frontages and materials, all which will provide MidPen and the Collaborating Partners with the information to finalize their development plan and will inform the financing plan and related Implementation Term Sheet.
Staff has received comments on the draft Main Street Specific Plan from the Planning Board on October 24, 2016 and the City Council on November 1, 2016, the Recreation and Park Commission on November 10, 2016 and the Transportation Commission on November 16, 2016. Over the next few months, staff and the Consultant team will synthesize these comments into a Final Plan for review and approval by the Planning Board and City Council in the first quarter of 2017.
Due to the need to finalize the Main Street Specific Plan before making significant progress on the ENA requirements, staff is recommending that the City Council approve an amendment to the ENA (Exhibit 2) that would extend the term of the agreement to the end of 2017, add a new requirement to negotiate a DDA, and include other specific milestones for approval by the City Council. The terms of the ENA amendment include:
1) An Implementation Term Sheet for City Council approval by a date certain: no later than April 30, 2017 to establish the essential business terms and framework for the transfer and development of the property.
2) A negotiated DDA and Development Site Plan no later than December 31, 2016.
3) An extension of the term at the sole discretion of the City Manager for no more than two times for up to three months each time.
The amendment to the ENA will continue the City’s commitment to help facilitate consolidation and rehabilitation of the Collaborating Partners existing scattered and dilapidated facilities and hold them to making measurable progress toward that goal.
FINANCIAL IMPACT
There is no impact to the General Fund or the Base Reuse Fund budgets as City staff time dedicated to this project fall within current staffing and legal budget.
ENVIRONMENTAL REVIEW
On February 4, 2014, the City Council certified a Final Environmental Impact Report (State Clearinghouse No. 201301243) for the Alameda Point project (including the Main Street Neighborhood), in compliance with the California Environmental Quality Act (CEQA).
RECOMMENDATION
Approve the First Amendment to the Exclusive Negotiating Agreement (ENA) between the City of Alameda and a Consortium of Four Developers Consisting of MidPen Housing, Alameda Point Collaborative, Building Futures with Women and Children, and Operation Dignity to Extend the Term if the ENA to December 31, 2017 unless Terminated or Extended as Provided in the ENA, and Complete an Implementation Term Sheet, Disposition and Development Agreement, and Development Plan for the Design and Construction of a New Supportive Housing Facilities on a 10.4-Acre Parcel in the Main Street Neighborhood at Alameda Point.
Respectfully submitted,
Jennifer Ott, Base Reuse Director
By,
Michelle Giles, Redevelopment Project Manager - Alameda Point
Financial Impact section reviewed,
Elena Adair, Finance Director
Exhibits:
1. Exclusive Negotiation Agreement with MidPen Housing and Alameda Point Collaborative, Building Futures with Women and Children and Operation Dignity
2. First Amendment to the Exclusive Negotiation Agreement