Title
Annual Review: Del Monte Development Agreement - Applicant: TL Partners I, LP. The applicant requests a periodic review of a Development Agreement related to the Del Monte Warehouse Master Plan. The consideration of an Annual Report is not a project under the California Environmental Quality Act (CEQA). No further environmental review is required
Body
To: Honorable President and
Members of the Planning Board
From: Andrew Thomas
Acting Planning, Building and Transportation Director
Date: April 8, 2019
BACKGROUND
In January 2015, the City of Alameda and TL Partners I, LP (“Developer”), entered into a Development Agreement (DA) for the “Del Monte Warehouse Master Plan.”
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 DA. In order to demonstrate good faith compliance, the applicant has submitted a Developer Letter of Compliance (Exhibit 1) for the annual review as required under AMC Section 30-95.1 and Article 5 of the DA.
This annual review reports on activities and developments taking place from December 31, 2017 through April 15, 2019.
ANALYSIS
During the Development Agreement Annual Review Period (January 1, 2018 through April 15, 2019), TL Partners I, LP and the City worked together on several activities. Those activities are summarized below and described in full in Exhibit 1:
Jean Sweeney Open Space Park: The Developer is obligated to make a payment of $2,000,000 in order to fund portions of the Jean Sweeney Open Space Park (“JSOSP”), a 22-acre park. The developer made an initial payment of $300,000 in February 2015, and paid $1 million to the Recreation and Parks Department in 2017. During the review period in 2018, the developer paid the remaining $700,000 of the $2 million obligation.
Using the Developer’s $2 million contribution as matching funds, the City secured a $2 million grant from the California Department of Parks and Recreation. The City has also received $2.3 million grant from the Regional Active Transportation Program, specifically for completion of the Cross-Alameda Trail, which runs the length of the park. Construction of the easterly portion of JSOSP and the Cross-Alameda Trail began in 2017 and was completed in 2018.
Clement Extension: The Developer is required to complete improvements to a portion of Clement Avenue from Atlantic Avenue to Entrance Road. To that end, the Developer needed to acquire a piece of property from Wind River Systems before it could construct those improvements. In July 2017, after four years of negotiations, the Developer acquired the property from Wind River needed to complete these improvements.
During the review period on October 18, 2018, the City Manager approved the developer’s request for a one year extension to the January 15, 2019 deadline for the completion of the Clement Avenue Extension required by Section 6.b. of the Del Monte Warehouse Project Development. In acknowledgment to the economic conditions and pursuant to Section 11 a.i of the Development Agreement, the City Manager conditionally approved the request, subject to the following three (3) conditions:
• TL Partners I, LP shall record an offer of dedication to the City of Alameda for the entire public right of way required to construct the Clement Avenue Extension roadway, sidewalks, and Cross Alameda Trail from Atlantic Avenue to Entrance Road by March 31, 2019.
• TL Partners I, LP shall acquire construction permits and begin construction of the Clement Avenue Extension roadway, sidewalks, and Cross Alameda Trail from Atlantic Avenue to Entrance Road by September 30, 2019.
• If TL Partners I, LP fails to meet either the March 31, 2019 or the September 30, 2019 deadlines described above, the City of Alameda shall immediately provide TL Partners I, LP written notice of breach pursuant to Section 16 of the Development Agreement, at which time TL Partners I, LP may take any actions necessary to cure the breach or request Planning Board and City Council hearings to consider an amendment to the Development Agreement.
In February 2019, the developer submitted the offer of dedication for the entire public right of way needed for the Clement extension. On March 26, 2019, staff completed its review and directed the developer to record the offer as required by the extension.
Affordable Housing Agreement: The Developer was required to submit for review and approval by the City Council, an Affordable Housing Agreement for the provision of fifty-five (55) affordable housing units. In 2015, the City Council approved the Affordable Housing Agreement and the agreement to convey the City-owned portion of the property (which will contain the 31-unit senior affordable housing building), to the Housing Authority of the City of Alameda.
In 2018, the Housing Authority completed construction of 31 units for very low- and low-income senior households at “Littlejohn Commons”. The 24 remaining affordable housing units will be provided within the Del Monte Building when it is constructed.
Transportation Demand Management Program: The DA and Del Monte Master Plan require that the Developer establish and operate a Transportation Demand Management (TDM) Program to reduce peak hour vehicle trips generated by the Del Monte development. Pursuant to those agreements, the Developer is required to initiate TDM services upon occupancy of the building, and the Developer is required to submit an annual report documenting compliance with the Planning Board-approved TDM program for the project. The first TDM annual report will be provided by the Developer upon building occupancy.
The Developer has been working actively with the City on two important transportation initiatives:
• TL Partners was instrumental in working with AC Transit to reinstate service on Line 19 along Buena Vista Avenue. Working with other developments in the Northern Waterfront and the City, TL Partners and others provided financial subsidies for the Line 19 implementation, allowing the Line to offer 20-minute service during commute hours. Line 19 began operation in December 2016.
• In 2017, TL Partners played an important role in assisting the City of Alameda establish the Alameda Transportation Management Association (ATMA) to coordinate supplemental transit services, leverage transportation resources to improve services for Alameda residents, and expand transit services citywide. The Del Monte project is an active member in the new ATMA, which includes all of the projects in the Northern Waterfront and all of Alameda Point.
• During the review period, Easy Passes were provided for all 31 units within Little John Commons.
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 2015.
Project Delays: In 2017, TL Partners completed its construction drawings and improvement plans for the project, and the City completed the plan check in 2017. Unfortunately, the developer has been unable to secure construction financing and begin construction of the Del Monte building portion of the project.
In 2018, the developer began to market the property and the project entitlements to prospective buyers. In an effort to reduce the construction costs, the developer requested, and the Planning Board and Historical Advisory Board approved relatively minor amendments to the project design in early 2019.
Conclusions: City staff will continue to work with the developer and/or prospective buyers to facilitate construction of the project in 2019 and ensure compliance with the Development Agreement.
If work has not been initiated on the Clement Avenue extension by September 30, 2019, staff will immediately provide TL Partners I, LP written notice of breach pursuant to Section 16 of the Development Agreement, at which time TL Partners I, LP may take any actions necessary to cure the breach or request Planning Board and City Council hearings to consider an amendment to the Development Agreement.
ENVIRONMENTAL REVIEW
Annual reviews are exempt from the California Environmental Quality Act.
RECOMMENDATION
Approve the draft resolution (Exhibit 2) declaring that the Developer, TL Partners I, LP, has demonstrated good faith compliance with the terms and conditions of its Development Agreement.
Respectfully submitted,
Andrew Thomas
Acting Planning, Building and Transportation Director
Exhibits:
1. TL Partners I, LP Letter dated March 1, 2019
2. Draft Planning Board Resolution for Del Monte