Title
Annual Review of Alameda Landing Commercial Project Development Agreement and Alameda Landing Residential Project Development Agreement. Applicant: Catellus Alameda Development, LLC. An Annual Review of the Development Agreements between City of Alameda and Catellus Alameda Development, LLC 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
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 May 2017 through May 2018.
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 May 2017 through May 2018.
Pursuant to the Alameda Landing Development Agreements and Environmental Impact Report (EIR), the applicant is also required to prepare an annual report on its Transportation Demand Management (TDM) program, for review by the Transportation Commission and City Council. The applicant has submitted its annual TDM Report for Transportation Commission and City Council review (Exhibit 2). The Transportation Commission is scheduled to review the TDM Report in July.
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. In December 2015, there was a third partial assignment of the Residential Development Agreement to Tri Pointe in connection with the third and final sub-phase of residential development.
Between January 2010 and March 2017, 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 and 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. 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.
In June 2016, Catellus sold the Alameda Landing Shopping Center 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.
During the current Development Agreement Annual Review Period (May 2017 through May 2018), Catellus and the City worked together on the following activities:
Waterfront Lands Master Plan Amendment. In July 2017, the City Council adopted the Bayport/Alameda Landing Master Plan Amendment and Environmental Impact Report Addendum, which allowed for allowed for 17 acres of maritime commercial uses within 364,000 square feet of existing waterfront warehouses, 15 acres of residential uses, and a 4.5-acre public waterfront park on the remaining undeveloped land at Alameda Landing.
In December 2017, Developer completed the sale to Bay Ship and Yacht of two (2) buildings totaling 364,000 square feet on the Alameda Landing Waterfront. In January, construction commenced on the north warehouse and is expected to be completed in Fall 2018. Construction activities included significant roof repairs, internal demolition of existing equipment, exterior wall reconstruction and utility upgrades. Bay Ship & Yacht intends to occupy a portion of the building and lease the remainder of the north building to maritime commercial tenants. Construction on the south warehouse will commence at a later date.
In May of 2018, Catellus presented the initial design concept for the 4.5-acre park for Recreation and Parks Commission review. The Park Development Plan and Design Review plans are scheduled for Planning Board review at the June 25, 2018 meeting.
Completion of Alameda Landing Residential. As of May 2018, all but nine (9) of the 288 residential units in the Alameda Landing Residential development are sold and occupied. All 32 deed-restricted very low- and low-income rental units at Stargell Commons are occupied, and all of the deed-restricted moderate-income ownership units have been sold and are occupied.
Alameda Landing Transportation Demand Management (TDM) Program. The Alameda Landing TDM program began in October 2013, and is completing its fifth year. The program is administered by the West Alameda Transportation Management Association (TMA), and its Board of Directors which includes: Brian Barry, Tripoint Homes, Robert Osorio, Target Stores, Randy Rencheller, Mayor’s appointee, Sean Whiskeman, Catellus. The TDM program includes a part-time TDM coordinator, a website, and a commute hour shuttle running between 12th Street BART and Alameda Landing, that carries approximately 4,000 riders per month.
The Planning Board may choose to comment on the TDM report, but the formal review of the report is reserved for the Transportation Commission and City Council per the Development Agreement.
Conclusion: 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 1, 2017
2. TDM Annual Report
3. Draft Planning Board Resolution