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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
To: Honorable President and
Members of the Planning Board
From: Andrew Thomas
Assistant Community Development Director
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 2016 through May 2017.
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 2016 through May 2017.
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.
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 2006/2007, 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.
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.
During the current Development Agreement Annual Review Period (April 2016 through May 2017), Catellus and the City worked together on the following activities:
• Affordable Housing: In May, 2017, Resources for Community Development and the City of Alameda Housing Authority held a grand opening to mark the completion of a 32-unit, multi-family affordable housing complex located at the northwest corner of Fifth Street and Stargell Avenue. The project provides housing affordable to low- and very low-income households.
• Construction and Sales Activity:
a. The Alameda Landing Shopping Center was sold in June 2016 to AFL-CIO Building Investment Trust (BIT), a bank collective trust for which PNC Bank serves as trustee. Vestar has remained the property manager for the new owner. The shopping center is currently 87% leased with 14,205 square feet of retail space available and 6,692 square feet of office space available.
b. Vertical Construction of the Tri Pointe residential project is ongoing. In Phase 1, 126 of the 141 units have closed escrow and the remaining units are projected to be sold by the end of 2017. In Phase 2, construction is complete on approximately 90% of the townhomes and attached units with 33 of the 56 units projected to be closed by June 30, 2017. The final Tri Pointe residential phase, including single family detached and attached units, is under construction and the first closings are projected to occur in June 2017.
By the end of June, 2017, 169 (66%) of the total 255 units will be closed.
• Waterfront Project: In February, 2017, the Developer participated in a public workshop at a Planning Board meeting to discuss the “Waterfront” phase located north of Mitchell Avenue and directly across from Jack London Square. Catellus introduced its current conceptual plans for the remaining waterfront acres, including a waterfront park that was originally envisioned in the Alameda Landing/Bayport Mixed Use Master Plan.
• TDM and MMRP: Phase 1 of the TDM plan was implemented. The shuttle is currently running between 12th Street BART and Alameda Landing and has averaged over 4,000 riders per month. The success of the program has also prompted Developer to increase the size of the shuttle to permit an additional ten riders per stop as well as provide improved bike racks and a GPS tracking device for riders to follow the location of the shuttle. Developer continues to market the shuttle to increase ridership to new residents, visitors, employees, and the community. Developer has also worked to promote AC Transit’s new Line 96 which now serves Alameda Landing.
• Coordination: Developer meets regularly with City staff for project updates and coordination. Developer also has been active in the community supporting many local events as well as closely coordinating with the Chamber of Commerce and the West Alameda Business Association.
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.
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