AVAILABILITY OF PUBLIC RECORDS:
All public record to an open session item on this agenda, which are not exempt from disclosure pursuant to the California Public Records Act, that are distributed to a majority of the legislative body will be available for public inspection at the City Clerk’s Office, City Hall located at 333 90 th Street, Daly City, CA during normal business hours, at the same time that the public records are distributed or made available to the legislative body.
CITY OF DALY CITY
Regular Meeting - CITY COUNCIL
AGENDA
Monday, March 13, 2023 – 7:00 PM
City Hall Council Chambers – 2nd Floor
City Hall, 333 – 90th Street
Daly City, CA 94015
To watch the live telecast:
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Public Participation:
There are two ways to submit public comment: (1) submit written comments by meeting day, and (2) attend the meeting in person.
1. To submit a comment in writing, please visit www.dalycity.org/agendas and complete the Public Comment form. In the comment field box, include the item number and/or title of the item as well as your comments.
Public Comments may also be emailed to [email protected] by including “Public Comment” in the subject line. All written comments received by 4:00 pm on meeting day will be provided to the City Council prior to the meeting. Comments are not read aloud into the record.
Please note: Any written comments received after 4:00 p.m. on the meeting date is not guaranteed to be received by the City Council prior to the meeting.
2. To speak at the meeting in person, please complete a Speaker Card located at the entrance to the Council Chambers and submit to a Staff Member as early in the meeting as possible.
Persons with disabilities who require auxiliary aids or services in attending or participating in this meeting should call the office of the City Clerk at 991-8078 as soon as possible.
CALL TO ORDER:
PLEDGE TO THE FLAG:
ROLL CALL:
PRESENTATIONS:
1. Fiscal Year End 2022 Review
Agenda – City Council
Monday, March 13, 2023
APPROVAL OF MINUTES:
2. Regular Meeting of February 27, 2023
APPROVAL OF AGENDA:
PUBLIC APPEARANCES/ORAL COMMUNICATIONS:
NOTE: Speakers are limited to two minutes, unless modified by the Mayor.
The Council cannot take action on any matter raised under this item.
CONSENT AGENDA
All items listed on the Consent Agenda are considered to be routine and may be approved by one roll call vote of the City Council. There shall be no separate discussion of the matters on the Consent Agenda unless requested by a member of the City Council. If discussion is required, that item will be removed from the Consent Agenda and will be considered separately at the end of the Agenda.
Resolutions:
3. Accept and Appropriate Funds from the County of San Mateo for Summer Enrichment Programs
4. Accept and Appropriate a Senior Nutrition Infrastructure Grant from San Mateo County Health Aging and Adult Services for the Congregate Nutrition Program Locations
5. Exclusive Negotiating Agreement (ENA) between the City of Daly City and JM McLennan Development for Property at 1837 Junipero Serra Boulevard Daly City California
6. Accept Fiscal Year 2023 Mid-Year Budget Adjustments
7. Notice of Completion for the Mussel Rock 2019 Gabion Wall and Stormwater Project
8. Notice of Completion for the 2019 Daly City Street Resurfacing and Slurry Seal Project
END OF CONSENT AGENDA
PUBLIC HEARINGS:
9. Public Hearing on Removal of Commercial Vehicle Parking on the East Side of Bayshore Boulevard
STAFF: Richard Chiu, Jr.
RECOMMENDATION: Open/Close Hearing
Adopt Resolution by Roll Call Vote
Agenda – City Council
Monday, March 13, 2023
APPOINTMENTS: Board/Commission Membership Committee Appointments
REPORTS:
10. Council Committee
a. Development Committee Meeting
b. CDBG Advisory Committee Meeting
c. Design Review Committee Meeting, St. Francis Square
d. Affordable Housing Committee Meeting
11. City Council
12. Staff
ADJOURNMENT:
CITY OF DALY CITY
MINUTES – REGULAR MEETING – CITY COUNCIL
FEBRUARY 27, 2023
--------------------------------
Note on Public Comments: For this meeting, members of the Council and the public had the option of attending in person or submitting public comments via email to the City Clerk’s Office prior to the public meeting. Persons with disabilities who require auxiliary aids or services in attending or participating in this meeting were instructed to call the office of the City Clerk at 991-8078 prior to the meeting.
Visit https://www.youtube.com/@DalyCityVideoMeetings/streams to view the City Council meetings
The meeting was called to order by Mayor Buenaventura at 7:00 P.M.
ROLL CALL: Councilmembers Present:
Raymond A. Buenaventura, Mayor
Juslyn C. Manalo, Vice Mayor
Roderick Daus-Magbual
Pamela DiGiovanni
Glenn R. Sylvester
Staff Present:
Thomas Piccolotti, City Manager
Rose L. Zimmerman, City Attorney
K. Annette Hipona, City Clerk
PRESENTATIONS:
Commendation - San Mateo County Poet Laureate
(Jorge Argueta from Daly City)
Presentation on New Commercial - Mixed Use (C-MU) for Mission Street and Geneva Avenue (Bruce Brubaker, PlaceWorks, City Consultant)
APPROVAL OF MINUTES:
Regular Meeting of February 13, 2023
It was moved by Vice Mayor Manalo, seconded by Councilmember Daus-Magbual and carried to approve the minutes of February 13, 2023.
APPROVAL OF AGENDA:
It was moved by Vice Mayor Manalo, seconded by Councilmember Daus-Magbual and carried to approve the agenda.
PUBLIC APPEARANCES:
Laura Baldwin, resident, expressed concern with safety issues due to streetlights being out for three months in the Westlake division. Laura has reached out to the City Council and the City Manager’s Office to find out information on the status of the lights and urged for safety to come back to the Olympic section of Westlake.
Director of Public Works Richard Chiu provided an update on streetlight outages including the status on required equipment yet to be inspected by PG&E. Mr. Chiu provided an update of when inspection is to be expected and reported on PG&E’s priority to respond to home power outages. City staff do not have the ability to work on PG&E equipment but continue to dialogue with PG&E and residents.
CITY OF DALY CITY
MINUTES – REGULAR MEETING – CITY COUNCIL
FEBRUARY 27, 2023
2 CONSENT AGENDA:
It was moved by Vice Mayor Manalo, seconded by Councilmember DiGiovanni and carried to approve the consent agenda with the exception of items # 6, 8 and 9, which were pulled for further discussion.
Communications:
Accept 2022 Qtr 4 Investment Report
Accept Fiscal Year 2022 Annual Comprehensive Financial Report
Resolutions:
Accept Proposed Title Changes of Administrative Secretary to Executive Administrative Assistant and Legal Secretary to Executive Legal Office Assistant
Director of Human Resources Natalie Sakkal requested acceptance of the proposed title changes in order for the City to be more consistent with industry standards and better reflect the duties of the positions.
Councilmember DiGiovanni had questions on the proposed title change s and industry standards, whether there will be differences in duties and salaries, whether there was more than one candidate who applied for the position of Executive Administrative Assistant, process for selection, and when the titles go into effect.
It was moved by Council member Sylvester, seconded by Vice Mayor Manalo and carried by the following roll call vote to adopt the resolution.
Ayes: Daus-Magbual, Manalo, Sylvester, Buenaventura
Noes: None
Abstained: DiGiovanni
Resolution 2 3-33, Approving Title Change From Administrative Secretary To Executive Administrative Assistant And Legal Secretary To Executive Legal Office Assistant
Adopt Resolution of Annual Delegation of Authority to City Treasurer to Invest City Funds
Resolution 23-34, Renewing Delegation Of Investment Authority To The City Treasurer
Accept Board of State and Community Corrections (BSCC) Officer Wellness and Mental Health Grant Funds for Officer Wellness and Mental Health Resources
Acting Chief of Police Cameron Christensen provided the staff report to accept and appropriate the subject grant funds totaling $63,889.52, which will be used towards improving officer wellness and mental health resources.
It was moved by Councilmember Sylvester, seconded by Vice Mayor Manalo and carried by voice vote to adopt the following resolution:
Resolution 23- 35, Accepting And Appropriating Award Funds From The Board Of State And Community Corrections Officer Wellness And Mental Health Grant Funds
CITY OF DALY CITY
MINUTES – REGULAR MEETING – CITY COUNCIL
FEBRUARY 27, 2023
3 Accept $450,000 in One Bay Area Grant 2 Funds and Authorize the City Manager to Execute th e Program Supplement for the Southgate Avenue and School Street Safety Improvements Project
Director Chiu provided the staff report for the subject grand funds totaling $450,000 and addressed questions on an estimated completion date, whether the re was outreach to stakeholders, and the types of improvements to be done.
It was moved by Councilmember Daus-Magbual, seconded by Vice Mayor Manalo and carried by voice vote to adopt the following resolution:
Resolution 23- 36, Accepting $450,000 In One Bay Area Grant 2 Funds And Authorizing The Program Supplement For The Southgate Avenue And School Street Safety Improvements Project
Authorize the City Manager to Execute Amendment No. 3 to the Professional Services Agreement for the Mussel Rock 2019 Gabion Wall and Stormwater Maintenance Project
Resolution 23-37, Authorizing Amendment #3 Of Professional Services Agreement With 4L eaf, Inc., For Additional Construction Management And Support Services For The Mussel Rock 2019 Gabion Wall And Stormwater Maintenance Project
Authorize Staff to Submit a Grant Application to City/County Association of Governments of San Mateo County and San Mateo County Transportation Authority for the FY 2023/2024 and FY 2024/2025 San Mateo County Shuttle Program
Resolution 23-38, Supporting The Bayshore Shuttle Project And Submitting An Application For San Mateo County Shuttle Program Funding For The Bayshore Shuttle Project
END OF CONSENT AGENDA
RESOLUTIONS:
Consider partnership with the San Francisco Host Lions Club D istrictwide “Strides for Diabetes Awareness Walk” at Gellert Park
Assistant to the City Manager Leilani Ramos requested consideration of partnership with the San Francisco Host Lions Club for the subject event and consideration to waive the associated Gellert Park rental fee for said event.
Reverend Leonard Oakes, on behalf of the Lions Club, thanked the Council for participating and partnering with the Lions to deliver se rvices to the com munity and acknowledged Region Chair Sharon Evanhart and Lion August Valera. Reverend Oakes invited all to the April 22 walk event which will bring awareness of and education in managing diabetes.
It was moved by Councilmember DiGiovanni , seconded by Vice Mayor Manalo and carried by unanimous roll call vote to adopt the following resolution, as amended:
Resolution 23-39, Approving A Partnership With The San Francisco Host Lions Club Districtwide “Strides For Diabetes Awareness Walk” At Gellert Park
CITY OF DALY CITY
MINUTES – REGULAR MEETING – CITY COUNCIL
FEBRUARY 27, 2023
4 APPOINTMENTS:
Appoint Director of the Bay Area Water Supply and Cons ervation Agency (BAWSCA) and the Regional Finance Authority (RFA)
Assistant to the City Manager Ramos provided the staff report and requested an appointment of a member to serve a four-year term as Director of the BAWSCA and the RFA ending June 2027.
It was moved by Mayor Buenaventura and seconded by Councilmember Daus -Magbual to re- appoint Vice Mayor Manalo as Director of the BAWSCA and RFA. Staff addressed questions on how a member of the public can apply for the seat, whether there is a stipend for the position, and whether the position can be advertised to the public in the future. The motion carried by unanimous roll call to adopt the following resolution:
Resolution 23-40, Appointing Director To The Bay Area Water Supply And Conservation Agency And Regional Finance Authority
Vice Mayor Manalo thanked the Council for giving her the opportunity to serve on the agency which advocates for the fairness in water rates across the region.
REPORTS:
City Council
Vice Mayor Manalo thanked the Recreation staff for the Black History Month Event at City Hall and acknowledged Opal Fuller and Chela Anderson for their parts in honoring local heroes in the black community. Vice Mayor Manalo attended the Here I Am: San Mateo Communities United Against Antisemitism campaign with the Jewish Community Relations Council; it was attended by Congressman Mullen, Assemblymember Berman, Mayor Froomin, Mayor Lee, Mayor Mates, Reverend Denham, Reverend Cronin and Ronald C. Wornick Jewish Day School students. Vice Mayor Manalo attended an event honoring Poet Laureate Argueta at the library along with Supervisor Canepa and Consul General of El Salvador Ana. Supervisor Canepa held an event in South San Francisco where representatives from the Filipino Mental Health Initiative and the San Mateo Behavioral Department came to speak about accessing resources for mental health and information on the ongoing free youth mental health training.
Councilmember DiGiovanni acknowledged Chela Anderson and Leslie DuBridge for their efforts during the Black History Month Event held at Daly City City Hall. Councilmember DiGiovanni reported on an upcoming event to combat antisemitism and reported attendance at the Airport Land-use Committee in which cities looked at different types of economic opportunities including life sciences developments.
ADJOURNMENT:
Mayor Buenaventura adjourned the meeting at 8:50 PM in memory of Mario R. Duarte.
Approved as submitted, this 13th
City Clerk
day of March , 2023.
Raymond A. Buenaventura
Mayor
City Council Agenda ReportItem # _____
Meeting Date: March 13, 2023
Subject: Accepting and Appropriating Funding from the County of San Mateo for Summer Enrichment Programs
Recommended Action
It is recommended City Council accept and appropriate funding in the amount of $110,000 from the County of San Mateo to use towards scholarships and added enrichment for the Summer Youth Recreation Program.
Background
San Mateo County approved funds to create the Summer 2023 Enrichment Program. Enrichment Programs focus on developing the academic, social, emotional, and physical needs and interests of students through hands-on, engaging learning experiences. Such programs introduce students to learning opportunities and materials, encouraging them to develop new interests and build new skills.
This scholarship program is meant to expand access to summer enrichment programs for low- income and vulnerable students; support the social-emotional well-being of students to mitigate the setbacks and hardships associated with COVID-19; and provide opportunities for students to re- inspire and propel learning to counterbalance learning loss attributed to the COVID-19 pandemic and distance learning
The contracted deliverables, providing up to $50,000 to be used to provide scholarship awards to Summer Youth Recreation Program participants, that meet criteria established by the county, assisting working families in providing a safe and fun program for their children. Another $50,000 will be used to enhance the Summer Youth Recreation Program which will be offered at Westlake Park, Gellert Park, Marchbank Park, and the Bayshore Community Center. These enhancements may include providing Aftercare (extended hours) for sites, additional snacks and meals for participants, or additional enrichment activities that would not be offered without the grant. The last $10,000 will be utilized for enrichment opportunities for teens enrolled in our Teen Internship Program, Volunteen Leadership Program, and Teen Open Gym.
Fiscal Impact
The City will receive $110,000 grant funding to support scholarships and added enrichment to summer programs. The revenue of $100,000 would be received into account 01-131-142-3661 and expended out of the 01-131-142-4234. The revenue of $10,000 would be received into account 01-131-151-3661 and expended out of the 01-131-151-4234.
City Council Agenda Report
Subject: Accepting and Appropriating Funding from the County of San Mateo County for Summer Enrichment Programs
Meeting Date: March 13, 2022
Summary/Conclusions
Staff is available to provide any additional information desired by the Mayor or City Council.
Respectfully submitted,
Edgardo Bolanos Denise Brown
Administrative Assistant II Recreation Services Manager Department of Recreation Services Department of Recreation Services
City Council Agenda ReportItem # _____
Meeting Date: March 13, 2023
Subject: Accepting and Appropriating a Senior Nutrition Infrastructure Grant from San Mateo County Health Aging and Adult Services for the Congregate Nutrition Program Locations
Recommended Action
It is recommended City Council accept and appropriate a $109,169.57 grant from San Mateo County Health Aging and Adult Services to provide equipment and logistic configurations to the Congregate Nutrition Program locations at the Doelger Senior Center, Lincoln Park Community Center, Bayshore Community Center and Gellert Park Clubhouse (effective July 2023).
Background
The Active Adult and Senior Services Unit has managed the County of San Mateo Aging and Adult Services Congregate Nutrition Program’s grant for senior meals and nutrition education for more than 20 years. The goal of the Congregate Nutrition Program is to promote better physical and mental health for older adults and adults with disabilities. The program goal is met by providing nutritious meals and activities that encourage socialization. Participation in the Congregate Nutrition Program is consistent with the mission of Daly City’s Active Adult and Senior Services Unit. On average approximately 51,000 meals are served per year at the Doelger Senior Center and were served, Monday through Friday, 12:00 - 1:00 p.m., at both the Café Doelger and the Lincoln Park Community Center. This fiscal year 2022-23 we have served meals at the Doelger Senior Center, Lincoln Park Community Center and the Bayshore Community Center (as of August 2022). We will be adding the Gellert Park Clubhouse in July 2023, providing meals twice a week.
To expand our capacity at our senior lunch program locations and provide the best quality and service to our patrons, he Senior Nutrition Infrastructure Grant will supply the senior lunch program locations with the following types of equipment: Reach-in refrigeration, countertop steamers, cart cabinets, mixers, braising pans, drawer warmers, food processors, griddles, menu boards, microwaves and steel worktables.
Fiscal Impact
The cost the City will initially incur would be for the equipment and supplies needed, with San Mateo County Health Aging and Adult Services reimbursing the City monthly as the costs are incurred. The grant revenue of $109,169.57 would be received into Account 01-131-463-3603 and expenditures would be made from Account 01-131-463-4234.
City Council Agenda Report
Subject: Accepting and Appropriating a Senior Nutrition Infrastructure Grant from San Mateo County Health Aging and Adult Services for the Congregate Nutrition Program Locations
Meeting Date: March 13, 2023
Summary/Conclusions
Staff is available to provide any additional information desired by the Mayor or City Council.
Respectfully submitted,
Jennifer Der Denise Brown
Senior Recreation Services Supervisor Recreation Services Manager Department of Recreation Services Department of Recreation Services
City Council Meeting Agenda ReportItem # _____
Meeting Date: March 13, 2023
Subject:Exclusive Negotiating Agreement (ENA) between the City of Daly City and JM McLennan Development for Property at 1837 Junipero Serra Boulevard Daly City California
Recommendation
Approve an Exclusive Negotiating Agreement (ENA) between the City of Daly City and JM McLennan Development and authorize the City Manager or his designee to execute said Agreement.
Background
After the release of an RFP and an extensive review and interview process, the City Council selected JM McLennan as the preferred developer for City-owned property at 1837 Junipero Serra Boulevard at their regular meeting on October 24, 2022 meeting.
Discussion
The JM McLennan Development proposal reflects a mixed-use hotel/residential concept, including 180 hotel rooms, 40 studios for flexible use (short-term rentals, extended stay, or apartments), ten top floor condominium units, a 30,000 square foot conference center, and a 30,000 square foot athletic club.
The ENA (attached) specifies particular tasks that the developer will complete during the agreement period. The ENA further establishes a ten-month term to complete the negotiations, project design, and preparation of a Disposition and Development Agreement with the option to extend an additional six months. The developer will provide a deposit of $250,000 that could be used to offset costs related to legal fees and consulting fees that the City incurs as part of this project.
The ENA itself does not commit the City to selling or the developer to buying the property. It is a contract whereby the City and Developer agree to negotiate in good faith during the term of the ENA to prepare a Disposition and Development Agreement (DDA) for future consideration by the City Council.
Conclusion
Staff recommends that the City Council approve the attached Draft Exclusive Negotiating Agreement and authorize the City Manager or his designee to execute said agreement.
City Council Agenda Report March 13, 2023
Exclusive Negotiating Agreement for Page 2 of 2
1837 Junipero Serra Boulevard, Daly City California
Respectfully submitted,
Tatum Mothershead Rose Zimmerman
Director, Economic and Community Development City Attorney Attachment
Draft Exclusive Negotiating Rights Agreement
1 EXCLUSIVE NEGOTIATING RIGHTS AGREEMENT
THIS EXCLUSIVE NEGOTIATING RIGHTS AGREEMENT (this “Agreement”) is entered into effective as of _____________, 20__ (“Effective Date”) by and between the City of ____________, a municipal corporation (“City”) and JM McLennan Development (Partnership/LLC) (“Developer”). City and Developer are hereinafter referred to collectively as the “Parties.”
R E C I T A L S
A. The former Daly City Redevelopment Agency ("Dissolved Redevelopment Agency") owned that certain property located at 1837 Junipero Serra Blvd., Daly City, California, as more fully described and mapped in the attached Exhibit A (the "Property") prior to dissolution of the Dissolved Redevelopment Agency pursuant to California law.
B. The Dissolved Redevelopment Agency acquired the Property to assist in the redevelopment of the Property consistent with the goals and objective of the Junipero Serra Redevelopment Plan (the "Redevelopment Plan"), which goals and objectives include the alleviation of blighting conditions and the stimulation of development in the former Daly City Redevelopment Project Area (the "Project Area").
C. In accordance with Health and Safety Code Section 34191.5 the Successor Agency prepared a Long-Range Property Management Plan (the "LRPMP") which LRPMP was approved by the Oversight Board to the Successor Agency and the California Department of Finance.
D. The LRPMP designates the Property to be transferred to the City for future development.
E. The City is the owner of the Property as more particularly described in Exhibit A.
F. The City has solicited and evaluated development proposals for the Property, and based upon such evaluation, has selected Developer as the entity with which to enter exclusive negotiations for redevelopment of the Property.
G. Developer has proposed developing the Property with a Mixed Use Development project described in Exhibit “B” (the “Project”).
H. The purpose of this Agreement is to establish the procedures and standards for the negotiation of a potential disposition and development agreement (“DDA”) that would address: (i) the disposition of the Property from the City to Developer, and (ii) Developer’s development of the Project on the Property. As more fully set forth below, this Agreement does not obligate the City to execute a DDA or convey the Property, or any portion thereof, to Developer, nor does it grant Developer the right to develop the Project on the Property.
2 I. The Property is identified as the Hotel Parcel in Phase II of Planned Development 54 (PD-54). The zoning allows for a 300-room hotel with up to 210,000 gross square feet of hotel space, 25,000 square feet of meeting/banquet space, in a building with a maximum height of 110 feet.
A G R E E M E N T
NOW THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:
1. Incorporation of Recitals. The Recitals set forth above, and all defined terms set forth in such Recitals and in the introductory paragraph preceding the Recitals, are hereby incorporated into this Agreement as though set forth in full.
2. Good Faith Efforts to Negotiate. The Parties shall use their best efforts to negotiate a DDA that will describe the terms and conditions governing the conveyance of the Property and the development of the Project on the Property. The Parties shall diligently and in good faith pursue such negotiations. This Agreement does not impose a binding obligation on City to convey any portion of, or interest in, the Property to Developer, nor does it obligate City to grant any approvals or authorizations required for the Project (including the DDA). Without limiting the generality of the foregoing, Developer expressly acknowledges that any agreement resulting from the negotiations contemplated hereby shall become effective only if the agreement is approved by the City Council following compliance with all applicable notice and hearing requirements and compliance with all other requirements of law, including without limitation the California Environmental Quality Act (“CEQA”).
3. Developer’s Exclusive Right to Negotiate With City. City agrees that it will not, during the term of this Agreement (“Term”), directly or indirectly, through any officer, employee, agent, or otherwise, solicit, initiate or encourage the submission of bids, offers or proposals by any person or entity with respect to the acquisition of any interest in the Property or the development of the Property, and City shall not engage any broker, financial adviser or consultant to initiate or encourage proposals or offers from other parties with respect to the disposition or development of the Property or any portion thereof. Furthermore, City shall not, directly, or indirectly, through any officer, employee, agent or otherwise, engage in negotiations concerning any such transaction with, or provide information to, any person other than Developer and its representatives with a view to engaging, or preparing to engage, that person with respect to the disposition or development of the Property or any portion thereof.
4. Term. The Term shall commence on the Effective Date and shall terminate Ten (10) months thereafter, unless extended or earlier terminated as provided herein. The Term may be extended for up to a maximum of six (6 additional months upon the mutual written agreement of Developer and City or upon approval of the City Manager if the City Manager determines in his sole discretion that the Parties have made substantial progress in their negotiations to merit such
3 extension. The Parties may, with City Council approval, agree to additional extensions. If a DDA has not been executed by the City and Developer (or an entity related to Developer and approved by the City) by the expiration of the Term (as the Term may have been extended pursuant to this Section), then this Agreement shall terminate, and neither Party shall have any further rights or obligations under this Agreement except such rights and obligations that expressly survive termination.
5. Good Faith Deposit. In consideration for this Agreement, Developer has, prior to City’s execution of this Agreement, provided to City a cash deposit in the amount of Two-Hundred Fifty Thousand Dollars ($250,000) (the “Good Faith Deposit”). During the Term, City shall invest the Good Faith Deposit for purposes of earning interest thereon. If the Parties enter a DDA, the Good Faith Deposit shall be disposed of as specified in the DDA. If this Agreement is terminated without execution of a DDA for any reason, other than an Event of a Default (as hereinafter defined) by Developer, then the Good Faith Deposit and any interest earned thereon, less any amounts expended to reimburse City for City Costs as provided in Section 6 below, shall be refunded promptly to Developer. If this Agreement is terminated as a result of an Event of Default, then the Good Faith Deposit and any interest earned thereon shall be disposed of as more fully provided in Section 12.4. If at any time prior to the Parties entering into a DDA, City Costs (as defined in Section 6) are incurred in an aggregate amount that equals or exceeds the amount of the original Good Faith Deposit, the Developer shall replenish the Good Faith Deposit in increments of Ten Thousand Dollars ($10,000) each upon the written request of the City, subject to a maximum amount of expenses to be reimbursed of Forty Thousand Dollars ($40,000).
6. Costs and Expenses. The Good Faith Deposit may be used to cover consulting costs and legal fees reasonably incurred in accordance with this Agreement for the development of Property. (collectively, “City Costs”). City shall notify Developer monthly in writing of the amount drawn by City to pay City Costs. The notice shall include copies of all invoices paid from the Good Faith Deposit.
7. Termination.
7.1 Termination by Agreement. This Agreement may be terminated at any time by the mutual written consent of the Parties. In the event of such termination, subject to Section
7.4, the remaining Good Faith Deposit shall be repaid to Developer neither Party shall have any further rights against or liability to the other under this Agreement.
7.2 Termination by City for Cause. City shall have the right to terminate this Agreement upon City’s good faith reasonable determination that Developer is not negotiating diligently and in good faith, which shall be the tasks described under the schedule of performance set forth in Exhibit “B” City shall exercise such right by delivering not less than ten (10) business days’ advance written notice to Developer describing the nature of Developer’s default and the termination date. If Developer does not commence to cure the default and resume negotiations in good faith within such ten (10) business day period, City may terminate this Agreement effective as of the termination date stated in the notice. In the event of termination by the City pursuant to this Section 7.2, subject to Section 7.4, the remaining Good
4 Faith Deposit and any interest earned thereon shall be repaid to Developer and neither Party shall have any further rights against or liability to the other under this Agreement.
7.3 Termination by Developer. Developer shall have the right to terminate this Agreement upon Developer’s good faith reasonable determination that City is not negotiating diligently and in good faith. Developer shall exercise such right by delivering not less than ten (10) business days’ advance written notice to City describing the nature of City’s default and the termination date. If City does not commence to cure the default and resume negotiations in good faith within such ten (10) business day period, Developer may terminate this Agreement effective as of the termination date stated in the notice. In addition, Developer shall have the right to terminate this Agreement, effective upon ten (10) days’ written notice to City, if Developer determines, in the exercise of Developer’s sole discretion, that the results of Developer’s investigation of the Property are unsatisfactory with respect to Developer’s desired development activities or if Developer is unable to obtain other necessary approvals, rights or interests. In the event of termination by the Developer pursuant to this Section 7.3, the remaining Good Faith Deposit and any interest earned thereon shall promptly be repaid to Developer and subject to Section 7.4, neither Party shall have any further rights against or liability to the other under this Agreement.
7.4 Effect of Termination. Upon the expiration of the Term as such may be extended, or upon the earlier termination of this Agreement, without the Parties having successfully negotiated and executed a DDA, this Agreement shall forthwith be void, and there shall be no further liability or obligation on the part of either of the Parties or their respective officers, employees, agents or other representatives; provided however, the provisions of Section 9.1 (Studies), Section 9.2(Access; Indemnity), Section 10 (Confidentiality), Section 12.4 (Liquidated Damages), and Section 14.7 (Indemnification) shall survive such termination. In no event shall either Party have the right to seek an award of damages as a result of the termination of this Agreement.
8. Compliance with CEQA. The Parties acknowledge that the Project description set forth in this Agreement is preliminary in nature and shall be described in further detail in the DDA to be negotiated during the Term. The Parties acknowledge that development of the Property for the Project will require the grant of discretionary land use entitlements subject to the City’s normal review and approval process, that the Project must comply with CEQA, and that nothing in this Agreement is intended to or shall be interpreted as the grant of any approvals for development of the Project or the Property, or the modification or waiver of any City procedures or requirements. Without limiting the foregoing, the Parties acknowledge that the City retains discretion to (i) modify the Project as City may, in its discretion, determine to be necessary to comply with CEQA, (ii) select other feasible alternative and/or impose mitigation measures to avoid or minimize significant environmental impacts; (iii) balance the benefits of the Project against any significant environmental impacts prior to taking final action, if such impacts cannot otherwise be avoided; and/or (iv) determine not to proceed with the Project.
The Parties acknowledge that nothing in this Agreement shall be deemed a commitment by the City or Developer to enter into an agreement for conveyance or acquisition respectively of any interest in the Property or for the development of the Project. In addition, the Parties
5 acknowledge that the final form of any agreement governing the development of the Property may contain matters not covered in this Agreement, and the provisions herein are not intended to exclude or preclude any other issues that may arise during negotiations.
Developer acknowledges that the Project must be evaluated under CEQA prior to City’s approval of the DDA. If City determines that CEQA compliance requires preparation of an Environmental Impact Report (“EIR”) for the Project, then provided this Agreement has not been terminated pursuant to and in accordance with Article 7 hereof i) City and Developer will select the consultant for preparation of the EIR; and ii) Developer will pay City’s costs for environmental review, including the cost of City’s EIR consultant. Developer’s obligation to pay such costs shall be in addition to Developer’s obligation to pay City expenses pursuant to Section 6.
9. Developer’s Studies; Right of Access.
9.1 Developer’s Studies. During the Term of this Agreement, Developer may prepare, at Developer’s sole expense, any studies, surveys, plans, specifications, and reports (“Developer’s Studies”) Developer deems necessary or desirable in Developer’s sole discretion, to determine the suitability of the Property for the Project. Such studies may include, without limitation, title investigation, relocation analyses, marketing, feasibility, soils, seismic and environmental studies, financial feasibility analyses, and design studies. All this information will be submitted as part of CEQA compliance. Developer shall not be obligated to provide proprietary or financial information. . Developer’s obligation to provide reports and studies pursuant to this Section 9.1 shall survive the expiration or earlier termination of this Agreement.
Upon the expiration of the Term as such may be extended, or upon the earlier termination of this Agreement, without the Parties having successfully negotiated and executed a DDA.
9.2 Right of Access. Developer shall have the right of reasonable access to the Property for the purposes of inspection, environmental assessments, soils testing, and similar work. Developer shall be responsible for obtaining any additional rights of access to the Property from third parties that may be necessary to prepare Developer’s Studies. The City may impose reasonable limitations on access to the Property and may require Developer to provide City with proof of insurance in compliance with City’s requirements prior to performance of studies on the Property. City’s advance written approval from the Director of Economic and Community Developer, which shall not be unreasonably withheld, conditioned, or delayed, shall be required for any invasive testing. Developer agrees that unless City agrees otherwise in writing, Developer shall repair, restore, and return the Property and all improvements located thereon substantially similar to their condition immediately prior to any such testing at Developer’s sole cost and expense. Developer shall at all times keep the Property free and clear of all liens and encumbrances related to Developer’s inspection activities on the Property. .
Developer shall indemnify, defend, and hold the City and its elected and appointed officers, officials, employees, consultants, agents and representatives (collectively, the “Indemnitees”) harmless from and against all liability, loss, cost, claim, demand, action, suit, legal or administrative proceeding, penalty, deficiency, fine, damage and expense (including
6 without limitation reasonable attorney’s fees and of litigation) (all of the foregoing, collectively “Claims”) arising out of Developer’s and Developer’s agents, employees, consultants, representatives and contractor’s entry on the Property or otherwise arising out of the exercise of this right of access, provided that Developer shall have no obligation related to Claims resulting from the Indemnitees’ gross negligence or willful misconduct, or Developer’s mere discovery of information regarding the Property. Developer’s defense and indemnity obligations pursuant to this Section 9.2 shall survive the expiration or earlier termination of this Agreement.
10. Confidentiality of Information. While desiring to preserve its rights with respect to treatment of certain information on a confidential or proprietary basis, Developer acknowledges that City will need sufficient, detailed information about the proposed Project to make informed decisions about the content and approval of the DDA. City will work with Developer to maintain the confidentiality of proprietary information subject to the requirements imposed on City by the Public Records Act (Government Code Section 6250 et seq.). Developer acknowledges that City may share information provided by Developer of a financial and potential proprietary nature with third party consultants who have been contractually engaged to advise City concerning matters related to this Agreement and/or the DDA and to City Council members as part of the negotiation and decision-making process. City shall inform third party consultants of the confidential nature of such financial and potential proprietary information. If this Agreement is terminated without the execution of a DDA, City shall return to Developer any confidential information submitted by Developer under this Agreement. If any litigation is filed seeking to make public any information Developer submitted to City in confidence, City and Developer shall cooperate in defending the litigation if Developer elects not to make public the information in question.
11. Execution of Definitive Agreement. The City shall have no legal obligation to grant any approvals or authorizations for the Project prior to City Council approval of the Project and related agreements following compliance with CEQA and all other applicable requirements of law.
12. Defaults and Remedies.
12.1 Default. In the event either Party breaches its obligations under this Agreement, the non-defaulting Party shall give written notice of a default to the defaulting Party specifying the nature of the default and the required action to cure the default. If a default remains uncured ten (10) days after receipt by the defaulting Party of such notice, the non-defaulting Party may exercise the remedies set forth in Subsections 12.2, 12.3, and 12.4 below, as applicable.
12.2 Remedies for City Default. In the event of an uncured default by City hereunder, Developer’s sole remedy shall be to terminate this Agreement upon which termination, Developer shall be entitled to repayment of the remaining Good Faith Deposit and any interest earned thereon, as further provided in Section 5 and neither Party shall have any further right, remedy or obligation under this Agreement; provided however, any obligation under a specific provision of this Agreement for a Party to pay or reimburse the other Party for a cost or to provide indemnity and defense shall survive such termination. Except as expressly provided herein, neither Party shall have any liability to the other for damages or otherwise for any default, nor shall either Party have any other claims with respect to performance under this
7 Agreement. Each Party specifically waives and releases any such rights or claims they may otherwise have at law or in equity.
12.3 Remedies for Developer Default. In the event of an uncured default by Developer, City's sole remedy shall be to terminate this Agreement and to retain the Good Faith Deposit and any interest earned thereon as further set forth in Subsection 12.4 below. Following such termination, neither Party shall have any right, remedy, or obligation under this Agreement; provided however, any obligation under a specific provision of this Agreement for a Party to pay or reimburse the other Party for a cost or to provide indemnity and defense shall survive such termination.
12.4 Liquidated Damages. IN THE EVENT OF TERMINATION DUE TO DEVELOPER'S DEFAULT AS DESCRIBED IN THIS SECTION 12 ABOVE, THE GOOD
FAITH DEPOSIT (OR AS APPLICABLE, SUCH PORTION THEREOF WHICH HAS NOT
BE DRAWN AGAINST BY THE CITY FOR CITY COSTS) MAY BE RETAINED BY CITY
AS LIQUIDATED DAMAGES AND AS ITS PROPERTY WITHOUT ANY DEDUCTION, OFFSET OR RECOUPMENT WHATSOEVER. THE PARTIES AGREE THAT THE
DAMAGES SUFFERED BY CITY BY REASON OF A DEVELOPER DEFAULT WOULD
BE UNCERTAIN AND THAT SUCH DAMAGES WOULD INVOLVE SUCH VARIABLE
FACTORS AS THE CONSIDERATION THAT ANOTHER DEVELOPER WOULD PAY FOR THE PROPERTY; THE EXPENSES OF CONTINUING THE OWNERSHIP AND
CONTROL OF THE PROPERTY AND OF IDENTIFYING OTHER INTERESTED PARTIES AND NEGOTIATING WITH SUCH PARTIES; POSTPONEMENT OF TAX REVENUES TO THE COMMUNITY; AND THE FAILURE OF CITY TO EFFECT ITS PURPOSES AND
OBJECTIVES WITHIN A REASONABLE TIME, RESULTING IN ADDITIONAL IMMEASURABLE DAMAGE AND LOSS TO CITY. IT IS IMPRACTICABLE AND
EXTREMELY DIFFICULT TO FIX THE AMOUNT OF SUCH DAMAGES TO CITY, BUT
THE PARTIES ARE OF THE OPINION, UPON THE BASIS OF ALL INFORMATION
AVAILABLE TO THEM, THAT SUCH DAMAGES WOULD APPROXIMATELY EQUAL
THE AMOUNT OF THE GOOD FAITH DEPOSIT HELD BY CITY AT THE TIME OF THE
DEFAULT OF DEVELOPER, AND THE AMOUNT OF SUCH GOOD FAITH DEPOSIT
SHALL BE PAID TO CITY UPON ANY SUCH OCCURRENCE AS THE TOTAL OF ALL
LIQUIDATED DAMAGES FOR ANY AND ALL SUCH DEFAULTS AND NOT AS A PENALTY. IN THE EVENT THAT THIS PARAGRAPH SHOULD BE HELD TO BE VOID
FOR ANY REASON, CITY SHALL BE ENTITLED TO THE FULL EXTENT OF DAMAGES OTHERWISE PROVIDED BY LAW. DEVELOPER AND CITY SPECIFICALLY
ACKNOWLEDGE THIS LIQUIDATED DAMAGES PROVISION BY THEIR SIGNATURES HERE:
City: ______________ Developer:
8 13. City Rights Following Expiration or Termination. Following expiration or termination of this Agreement, unless a DDA is executed by the Parties, City shall have the absolute right to pursue disposition and development of the Property in any manner and with any party or parties it deems appropriate; provided, however, nothing herein shall be deemed to preclude or disqualify Developer from responding to future requests for qualifications and/or proposals, if any, that City may publicly issue to qualified firms with respect to development of the Property.
14. Miscellaneous.
14.1 Assignment. The qualifications and identity of Developer are of concern to City.
It is because of those unique qualifications and identity that City has entered into this Agreement with Developer. Accordingly, except as provided below, Developer may not assign its rights under this Agreement to any other person or entity, without the prior written approval of City.
Any purported voluntary or involuntary assignment of Developer’s exclusive negotiation rights without such City written approval shall be null and void. Notwithstanding the foregoing, Developer may assign its rights under this Agreement to a limited liability company or partnership in which Developer or an affiliated entity: (a) is a managing member or general partner; (b) is responsible for managing the day-to-day entitlement and development activities of such entity; and (c) has a controlling interest in such entity.
14.2 Notices. Except as otherwise specified in this Agreement, all notices to be sent pursuant to this Agreement shall be made in writing and sent to the Parties at their respective addresses specified below or to such other address as a Party may designate by written notice delivered to the other parties in accordance with this Section. All such notices shall be sent by:
(i) personal delivery, in which case notice is effective upon delivery; (ii) certified or registered mail, return receipt requested, in which case notice shall be deemed delivered on receipt if delivery is confirmed by a return receipt; or (iii) nationally recognized overnight courier, with charges prepaid or charged to the sender’s account, in which case notice is effective on delivery if delivery is confirmed by the delivery service.
City: City of Daly City
Attn: Director of Economic and Community Development
333 90th Street
Daly City, CA 94015
Copy: City of Daly City
Attn: City Attorney
333 90th Street, Third Floor
Daly City, CA 94105
Developer: Bob Mclennan
** Address
9 14.3 No Commissions. Each Party represents and warrants that it has not entered into any agreement, and has no obligation, to pay any real estate commission in connection with the transaction contemplated by this Agreement. If a real estate commission is claimed through either Party in connection with the transaction contemplated by this Agreement or any resulting DDA, then the Party through whom the commission is claimed shall indemnify, defend, and hold the other Party harmless from any liability related to such commission. The provisions of this Paragraph shall survive termination of this Agreement.
14.4 Relationship of the Parties. The Parties agree that nothing in this Agreement shall be deemed or interpreted to create between them the relationship of lessor and lessee, of buyer and seller, or of partners or joint venturers.
14.5 Authority; Disclosure. Developer warrants that to Developer’s knowledge none of its principals, officers, general partners, joint venturers, employees, associates, or affiliates who have any economic interest in this Agreement or the contemplated development of the Property or the Project, have a familial, financial, or other material relationship with any elected or appointed official or employee of the City. Each person executing this Agreement on behalf of Developer does hereby covenant and warrant that (a) Developer is created and validly existing under the laws of the state of formation, (b) Developer has and is duly qualified to do business in California, (c) Developer has full corporate power and authority to enter into this Agreement and to perform all of Developer’s obligations hereunder, and (d) each person (and all of the persons if more than one signs) signing this Agreement on behalf of Developer is duly and validly authorized to do so. Each person executing this Agreement on behalf of City does hereby covenant and warrant that (a) City has full power and authority to enter into this Agreement and to perform all of City’s obligations hereunder, and (b) each person (and all of the persons if more than one signs) signing this Agreement on behalf of City is duly and validly authorized to do so.
14.6 Waiver of Lis Pendens. It is expressly understood and agreed by the Parties that no lis pendens shall be filed against any portion of the Property with respect to this Agreement or any dispute or act arising from this Agreement. This Section shall survive the expiration of termination of this Agreement.
14.7 Indemnification. Developer hereby covenants, on behalf of itself and its permitted successors and assigns, to indemnify, hold harmless and defend the Indemnitees (defined in Section 9) from and against all Claims (defined in Section 9) arising out of or in connection with the actions of Developer or Developer’s agents, employees, officers, representatives, contractors or consultants pursuant to this Agreement; provided however, Developer shall have no indemnification obligation with respect to the gross negligence or willful misconduct of any Indemnitee. This Section shall survive the expiration or earlier termination of this Agreement.
14.8 Severability. If any term or provision of this Agreement or the application thereof shall, to any extent, be held by a court of competent jurisdiction to be invalid or unenforceable, such term or provision shall be ineffective to the extent of such invalidity or unenforceability without invalidating or rendering unenforceable the remaining terms and provisions of this Agreement or the application of such terms and provisions to circumstances other than those as
10 to which it is held invalid or unenforceable unless an essential purpose of this Agreement would be defeated by loss of the invalid or unenforceable provision.
14.9 Entire Agreement. This Agreement contains the entire understanding of the Parties with respect to the subject matter hereof and supersedes all prior or contemporaneous agreements and understandings, oral or written, between the Parties with respect to such subject matter.
14.10 Amendments. This Agreement may be amended only by a written instrument executed by the Parties or their permitted successors in interest.
14.11 Successors and Assigns; No Third-Party Beneficiaries. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective permitted successors and assigns; provided however, that except as expressly permitted by this Agreement, neither Party shall transfer or assign any of such Party’s rights hereunder by operation of law or otherwise without the prior written consent of the other Party, and any such transfer or assignment without such consent shall be void. Subject to the immediately preceding sentence, this Agreement is not intended to benefit, and shall not run to the benefit of or be enforceable by, any other person or entity other than the Parties and their permitted successors and assigns.
14.12 Captions; Interpretation. This Agreement shall be interpreted as though prepared jointly by the Parties. Titles and captions are for convenience of reference only and do not define, describe, or limit the scope or the intent of this Agreement or any of its terms.
14.13 Governing Law; Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of California without reference to conflicts of laws principles. Venue for any action under this Agreement shall be in the County of San Mateo, California.
14.14 Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be an original and all of which together shall constitute one agreement.
SIGNATURES ON FOLLOWING PAGE.
11 IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above.
CITY OF ____________, a municipal corporation
By: _______________________________
, City Manager
APPROVED AS TO FORM:
By: ___________________________
, City Attorney
DEVELOPER:
Bob Mclennan
By:________________________________
Print Name:_________________________
Title:______________________________
12 Exhibit A
PROPERTY
(Attach legal description.)
13 EXHIBIT B
SCOPE OF NEGOTIATIONS/SCHEDULE OF PERFORMANCE
The goal of negotiations is to prepare a Disposition and Development Agreement (“DDA) acceptable to both parties that will then be submitted to the City Council for consideration at a public meeting. The proposed DDA contemplates the conveyance of the Site to the Developer at fair market value pursuant to a third-party appraisal or broker opinion of value to be paid for by the Developer, subject to various conditions precedent and the subsequent redevelopment of the Site into a high-quality commercial development.
The Project Goals
The City encourages development of the Site into a high-quality Project that will maximize tax revenues to the City, create a significant number of job opportunities, and provide goods and services currently lacking in the community. The Developer shall seek cooperation from the property owners to the north and south of the Site to create integration with reciprocal rights of ingress/egress and parking.
The JM McLennan Development proposal reflects a mix ed-use hotel/residential concept, including 180 hotel rooms , 40 studios for flexible use (short -term rentals, extended stay , or apartments), ten top floor condominium units, a 30,000 squar e foot conference center, and a 30,000 square foot athletic club.
The Site is identified as the Hotel Parcel in Phase II of Planned Development 54 (PD -54). The zoning allows for a 300-room hotel with up to 210,000 gross square feet of hotel space, 25,000 square feet of meeting/banquet space, in a building with a maximum height of 110 feet.
Responsibilities/Schedule of Performance
The developer shall complete the following tasks during the Exclusive Negotiation Period:
1. Conduct community outreach to receive public input for the project.
2. Submit a site plan and building elevations to City for the Project.
3. Identify the critical infrastructure currently available to the Site and any improvements needed to support the Project.
4. Provide the City with real estate valuation input to help determine the cost of the Site for purposes of the DDA with the City. This may include proformas detailing the value of the development parcel and the associated public and private improvement costs to produce a parcel that is ready for development. This should also include an estimate of governmental fees to be paid.
14 5. Provide the City with other cost/benefit information to enable its consultants to prepare a fiscal benefit analysis for presentation to the City Council. This analysis typically includes the number of construction jobs created, the number of permanent jobs created the cost to maintain the public improvements upon dedication, the value of completed development, and the various tax revenues associated with development operations.
6. Provide a tentative schedule for acquisition and development of the Project.
7. If it is determined to be necessary condition precedent to the City’s consideration of the DDA, the Developer shall submit an application for environmental review by the City and pay all normal and customary fees related thereto. The developer shall submit an application to amend the Planned Development to allow for the uses identified in the project description. Environmental review in conformance with the California Environmental Quality Act will be required.
City Council Agenda ReportItem #
Meeting Date: March 13, 2023
Subject: Fiscal Year 2023 Mid-Year Budget Adjustments
Recommended Action
It is recommended that the City Council approve Fiscal Year 2023 mid-year revenue and expenditure budget adjustments.
Background
The Fiscal Year 2023 Operating and Capital budgets were adopted by the City Council on June 13, 2022. The FY 2023 mid-year budget review is an opportunity for staff to recommend budget adjustments to reflect changes in revenue and expenditure estimates based on performance through the first half of FY 2023.
Discussion
After a review of financial activity from July 1, 2022, through December 31, 2022, City staff identified some needs for budget adjustments as summarized in Attachment A. Staff is recommending an increase in General Fund budgeted expenditures by a total of $4,448,572, which includes increases of $4.36M to salary and benefits from approved MOUs as a result of labor negotiations including those funded by Measure Q, $57k for Measure Q Recreation services and supplies, and $39,754 for other services and supplies, program costs, and capital outlay. No adjustments to General Fund revenues are recommended.
Staff recommends adjustments to expenditures in other Non-General Fund budgets that equate to approximately $1,153,158. This includes increases of $746k for salary and benefits due to approved MOUs as a result of labor negotiations, $395k for other services and supplies, and the addition of $11,976 in developer contributions for the CIP Traffic Signal Interconnect Project. Proposed adjustments in revenues in Non-General Fund budgets equate to an increase of $108k in the water fund for receipts from other agencies.
Fiscal Impact
FY 2023 General Fund budgeted expenditures will increase $4,448,572 while revenues will remain as originally budgeted. FY 2023 other City Funds will see an overall increase in budgeted revenues of $108,000, and an increase in budgeted expenditures of $1,153,158.
Summary/Conclusion
Staff recommends the City Council adopt a resolution to approve the recommended budget adjustments for FY 2023 as outlined in Attachment A. Staff is available to provide any additional information desired by the Mayor or City Council Members.
Respectfully submitted,
Tim Nevin
Director of Finance and Administrative Services
Attachment A: FY 2023 Mid-Year Budget Adjustments
Fund Fund Name Expense Type Amount
01 General Fund Salaries and Benefits including Measure Q 4,363,794$ Measure Q Services and Supplies 57,000
Services and Supplies 5,000
Program Costs 778
Capital Outlay 22,000
General Fund Total 4,448,572
11 20% Housing Set Aside Salaries and Benefits 1,813
17 Gas Tax Salaries and Benefits 180,964
Developer Contribution for Traffic Signal Interconnect Project 11,976 Services and Supplies 50,000
Gas Tax Total 242,940
18 Community Block Grant Salaries and Benefits 67,784
28 Grants Salaries and Benefits 3,818
41 Water Fund Salaries and Benefits 99,879
51 Motor Vehicles Salaries and Benefits 30,726
52 Central Services Salaries and Benefits 13,484
54 Maintenance Salaries and Benefits 86,825
Services and Supplies 230,000
Maintenance Total 316,825
55 Information Services Salaries and Benefits 29,744
Services and Supplies 75,000
Information Services Total 104,744
58 Self Insurance Salaries and Benefits 8,173
Services and Supplies 40,000
Self Insurance Total 48,173
87 Sanitation Fund Salaries and Benefits 283,749
5,662,506$
Fund Fund Name Revenue Type Amount
41 Water Fund Miscellaneous Revenue 108,000$
108,000$ Total Revenue
Total Expenditures
Attachment A: FY 2023 Mid-Year Budget Adjustments
Mid-Year Expenditure Adjustments
Mid-Year Revenue Adjustments
City Council Agenda ReportItem # _____
Meeting Date: March 13, 2023
Subject: Notice of Completion for the Mussel Rock 2019 Gabion Wall and Stormwater Project
Recommended Action
Staff recommends that the City Council authorize the filing of the Notice of Completion and accept the improvements completed in compliance with the construction contract for the Mussel Rock 2019 Gabion Wall and Stormwater Project.
Background
On April 26, 2021, City Council awarded a contract to Brannon Corporation for construction of the Mussel Rock 2019 Gabion Wall and Stormwater Maintenance project. The project includes relocation of an existing drainage system, reconstruction of existing gabion walls, site grading, slope maintenance, culvert cleaning and miscellaneous site maintenance. Maintenance work at the Mussel Rock Landfill is conducted in compliance with regulatory requirements of the Regional Water Quality Control Board, the California Coastal Commission, and the County of San Mateo. Project activities involve maintenance on the Lower Disposal Area which is located in the western and southwestern portions of the landfill.
In mid-January, 2022, staff became aware that solid waste material has been exposed along the highest point of the bluffs to the west of the Upper Disposal Area, located in the northeastern portion of the landfill. Simultaneously, staff observed that earthen materials from an active landslide between the beach and the Upper Disposal Area have reached the beach below. Small pieces of waste material appeared to be mixed into the earthen materials. Additional work was required to address these and other unforeseen conditions discovered during construction.
Discussion
Brannon Corporation has completed all improvements required by the construction contract documents for a total amount of $1,750,576.77, including change orders in the amount of $952,407.77. The total dollar value of the change orders is 119% of the original contract award of $798,169.00. Change orders were issued for additional waste pull-back in the Upper Disposal Area, unforeseen soil conditions, and quantity increases.
Fiscal Impact
The construction contract was completed in the total amount of $1,750,576.77 with funds available in the General Capital Project Fund – Gabion Wall and Landfill Drainage project account 31-310-554.
Summary/Conclusion
The contractor’s work is now complete and acceptable for City maintenance. Staff recommends that the City Council authorize the filing of the Notice of Completion and accept the improvements completed in compliance with the construction contract for the Mussel Rock 2019 Gabion Wall and Stormwater Project.
Notice of Completion for the
Mussel Rock 2019 Gabion Wall and Stormwater Maintenance Project Meeting Date: March 13, 2023
Staff is available to provide any additional information desired by the Mayor or Councilmembers.
Respectfully submitted,
Kevin Fehr Richard Chiu Jr.
City Engineer Director of Public Works
Attachments:
1. Resolution
2. Notice of Completion
RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO
OFFICE OF THE CITY CLERK
CITY OF DALY CITY
333 - 90th Street
Daly City, California 94015
Notice of Completion
NOTICE IS HEREBY GIVEN as follows:
1. The date of completion of the work of improvement is:
2. The owner of the work of improvements is: City of Daly City, a Municipal Corporation.
3. The address of the owner of the work of improvement is: City Hall 333 - 90th Street
Daly City, California 94015
4. The nature of the owner’s interest or estate is: In fee.
5. The work of improvement is located in Daly City, California, and is particularly described as follows:
MUSSEL ROCK 2019 GABION WALL AND STORMWATER PROJECT
The name of the original contractor for the work of improvement is:
Brannon Corporation
10492 Dougherty Avenue
Morgan Hill, CA 95037
Dated:
The undersigned, being duly sworn, says: That he is the owner of the aforesaid interest or estate in the pro perty described in the foregoing notice; that he has read t he same, and knows the contents thereof, and that the facts stated therein are true.
CITY OF DALY CITY, OWNER
Richard Chiu, Jr., Public Works Director
STATE OF CALIFORNIA,
COUNTY OF SAN MATEO }SS.
Subscribed and sworn to (or affirmed) before me on this day of , 2023 ,
by . , proved to me on the basis of satisfactory evidence to be the person(s) who appeared before me.
Signature
Name (Typed or Printed)
Notary Public in and for said County and State
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DALY CITY ACCEPTING
COMPLETION OF CERTAIN PROJECT IN THE
DEPARTMENT OF PUBLIC WORKS
(Mussel Rock 2019 Gabion Wall and Stormwater Project)
A. The Project Manager has a dvised that the project se t forth hereinafter has been completed in accordance with the terms of the contract with the City of Daly City and Brannon Corporation, a CA Corporation.
B. The City Council of the City of Daly City desires to acknowl edge the completion of such project so that notice of completion may be given.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Daly City that pursuant to the above, the City of Daly City does hereby accept as complete the following described project:
MUSSEL ROCK 2019 GABION WALL AND STORMWATER PROJECT
BE IT FURTHER RESOLVED by the City Council of the City of Daly City that said project be, and it is hereby accepted as complete, and at the expiration of fifty -five (55) days from this date, final payment in connection with this pro ject be, and it is hereby authorized, provided that all statutory liens, claims and withholds are satisfied pursuant to law.
I hereby certify the foregoing to be a true copy of a Resolution adopted by the City C ouncil of Daly City, California, at a regular meeting thereof held on the day of , 20 23, by the following vote of the members thereof:
AYES, and in favor thereof, Councilmembers:
NOES, Councilmembers:
ABSENT, Councilmembers:
CITY CLERK OF THE CITY OF DALY CITY
APPROVED:
MAYOR OF THE CITY OF DALY CITY
City Council Agenda ReportItem # _____
Meeting Date: March 13, 2023
Subject: Notice of Completion for the 2019 Daly City Street Resurfacing and Slurry Seal Project
Recommended Action
Staff recommends that the City Council authorize the filing of the Notice of Completion and accept the improvements completed for the 2019 Daly City Street Resurfacing and Slurry Seal project.
Background
In November 2016, City Staff applied for the OBAG 2 LSR Preservation Program and was awarded a total of $1,310,000 in federal grant funding by the City/County Association of Governments (C/CAG) to construct the 2019 Daly City Street Resurfacing and Slurry Seal project. The project included an asphalt concrete (AC) overlay of approximately 0.64-centerline mile of City streets as shown on the attached project location map. The streets were selected based on the requirements of the OBAG 2 LSR Preservation Program which called for:
•Street segments on the federal-aid highway system and not classified as a rural minor collector or local road (residential) or lower; and
•Seventy percent (70%) of the grant funds need to be spent in, or provide “proximate access” to a Priority Development Area (PDA).
In general, the PDAs in Daly City are located in the Bayshore, Crocker, Hillside, and Original Daly City neighborhoods. A street segment was considered to provide “proximate access” to a PDA if it was within a one-mile radius of a PDA boundary. The street segments selected for this project included:
Base Bid – Asphalt Concrete Overlay
•Eastgate Drive between N. Mayfair Avenue and Glenwood Avenue, •Southgate Avenue between St. Francis Boulevard and El Dorado Drive, •South Hill Boulevard between Bellevue Avenue and Alta Vista Way, •Westmoor Avenue between Baldwin Avenue and Southgate Avenue, In addition to pavement maintenance and rehabilitation, concrete curb ramps at street intersections within the limits of the asphalt concrete overlay were included in the project to be constructed in compliance with the Americans with Disabilities Act (ADA).
On April 13, 2020, the City Council authorized the award of a construction contract to Interstate Grading & Paving, Inc. of South San Francisco, California, in the amount of $1,290,122.45 to complete only the Base Bid of the 2019 Daly City Street Resurfacing and Slurry Seal project.
Discussion
Interstate Grading & Paving, Inc. has completed all improvements required by the construction contract documents for a total amount of $1,351,897.84, including change orders in the amount of $61,775.39.
The total dollar value of the change orders is 4.79% of the original contract award of $1,290,122.45. The
Notice of Completion for the
2019 Daly City Street Resurfacing and Slurry Seal Project Meeting Date: March 13, 2023
change orders were issued for a construction method alteration on Westmoor Avenue due to unforeseen conditions, and differences between estimated bid quantities and actual quantities.
Fiscal Impact
The construction contract was completed in the total amount of $1,351,897.84 with funds available in the FY 2019-20 Capital Improvement Projects (CIP) account 17-312-613, the Street Resurfacing Sanitation Mains account 87-920-617 and the Street Resurfacing Water Mains account 41-385-617.
Summary/Conclusion
The contractor’s work is now complete and acceptable for City maintenance. Staff recommends that the City Council authorize the filing of the Notice of Completion and accept the improvements completed for the 2019 Daly City Street Resurfacing and Slurry Seal project.
Staff is available to provide any additional information desired by the Mayor or Councilmembers.
Respectfully submitted,
Alexander Yuen Richard Chiu Jr.
Civil Engineer II Director of Public Works
Attachments:
1. Project Location Map
2. Resolution
3. Notice of Completion
SAN MATEO COUNTY, CALIFORNIA2019 DALY CITY STREET RESURFACINGAND SLURRY SEAL
EASTGATE DRIVE
WESTMOOR AVENUE
SOUTH HILL BOULEVARD
SOUTHGATE AVENUE
RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO
OFFICE OF THE CITY CLERK
CITY OF DALY CITY
333 - 90th Street
Daly City, California 94015
Notice of Completion
NOTICE IS HEREBY GIVEN as follows:
1. The date of completion of the work of improvement is:
2. The owner of the work of improvements is: City of Daly City, a Municipal Corporation.
3. The address of the owner of the work of improvement is: City Hall 333 - 90th Street
Daly City, California 94015
4. The nature of the owner’s interest or estate is: In fee.
5. The work of improvement is located in Daly City, California, and is particularly described as follows:
2019 DALY CITY STREET RESURFACING AND SLURRY SEAL PROJECT
The name of the original contractor for the work of improvement is:
Interstate Grading & Paving, Inc.
128 So. Maple Ave.
So. San Francisco, CA 94080
Dated:
The undersigned, being duly sworn, says: That he is the owner of the aforesaid interest or estate in the pro perty described in the foregoing notice; that he has read t he same, and knows the contents thereof, and that the facts stated therein are true.
CITY OF DALY CITY, OWNER
Richard Chiu, Jr., Public Works Director
STATE OF CALIFORNIA,
COUNTY OF SAN MATEO }SS.
Subscribed and sworn to (or affirmed) before me on this day of , 2023 ,
by . , proved to me on the basis of satisfactory evidence to be the person(s) who appeared before me.
Signature
Name (Typed or Printed)
Notary Public in and for said County and State
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DALY CITY ACCEPTING
COMPLETION OF CERTAIN PROJECT IN THE
DEPARTMENT OF PUBLIC WORKS
(2019 Daly City Street Resurfacing and Slurry Seal Project)
A. The Project Manager has advised that the project set forth hereinafter has been completed by Interstate Grading & Paving, Inc., a Corporation.
B. The City Council of the City of Daly City desires to acknowl edge the completion of such project so that notice of completion may be given.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Daly City that pursuant to the above, the City of Daly City does hereby accept as complete the following described project:
BE IT FURTHER RESOLVED by the City Council of the City of Daly City that said project be, and it is hereby accepted as complete, and at the expiration of thirty (30) days from this date, final payment in connection with this pro ject be, and it is here by authorized, provided that all statutory liens, claims and withholds are satisfied pursuant to law.
2019 DALY CITY STREET RESURFACING AND SLURRY SEAL PROJECT
I hereby certify the foregoing to be a true copy of a Resolution adopted by the City C ouncil of Daly City, California, at a regular meeting thereof held on the day of , 20 23, by the following vote of the members thereof:
AYES, and in favor thereof, Councilmembers:
NOES, Councilmembers:
ABSENT, Councilmembers:
CITY CLERK OF THE CITY OF DALY CITY
APPROVED:
MAYOR OF THE CITY OF DALY CITY
City Council Agenda ReportItem # _____
Close
s
Meeting Date: March 13, 2023
Subject: Public Hearing on Removal of Commercial Vehicle Parking on the East Side of Bayshore Boulevard
Recommended Action
Staff recommends that the City Council:
1. Hold a public hearing; and
2. Approve a resolution to revise the Commercial Vehicle Parking Zone, removing the 800 ft.
Commercial Vehicle Parking on the east side of Bayshore Boulevard.
Background
City Council, at its meeting of January 9, 2023, set February 13, 2023 as the date for a public hearing regarding the removal of the Commercial Vehicle Permit Parking on the east side of Bayshore Boulevard. City Council, at its meeting of February 13, 2023, continued the public hearing to the meeting of March 13, 2023. The Notices of Public Hearing were published in the newspaper, on the City’s Web Site, and were mailed directly to all commercial vehicle parking program permit holders.
Discussion
Resolution 15-43 designated 965-ft. No Parking Zone along the east side of Bayshore Boulevard, north of Geneva Avenue, replacing the existing 800-ft. commercial vehicle parking zone that was previously established. The No Parking Zone was needed to prevent overflow parking from the San Francisco Municipal Transportation Agency’s auto return site at 2650 Bayshore Boulevard.
Fiscal Impact
There is no fiscal impact associated with this recommendation.
Summary/Conclusion
Staff recommends that the City Council:
1. Hold a public hearing; and
2. Approve a resolution to revise the Commercial Vehicle Parking Zone, removing the 800 ft.
Commercial Vehicle Parking on the east side of Bayshore Boulevard.
Staff is available to provide any additional information desired by the Mayor or City Council members.
Public Hearing on Removal of Commercial Vehicle
Parking on the East Side of Bayshore Boulevard
Meeting Date: March 13, 2023
Respectfully submitted,
Shirley Chan Richard Chiu, Jr.
Senior Civil Engineer Director of Public Works
Cameron Christensen
Acting Chief of Police
Attachment:
1. Commercial Vehicle Parking Zone 1 Map
CITY OF DALY CITY INTER-OFFICE MEMORANDUM
DATE: March 1, 2023
TO:See Below
FROM:Charlie Machado-Morrow, City Manager's Office
SUBJECT: MEETING NOTICE
RE: Development Committee Meeting
-Discuss development in Daly City in general with a focus on the battery storage farm at the old Syufu Drive-In site off Carter Street
-Discuss Midway Village Phase II
DATE:Monday March 6 th 2023
TIME:12:30pm
PLACE:Zoom
ATTENDING:
City Participants: Other Participants:
Juslyn Manalo, Vice Mayor
Roderick Daus-Magbual, Councilmember
Thomas J. Piccolotti, City Manager
Rose Zimmerman, City Attorney
Michael Van Lonkhuysen
Tatum Mothershead
cc: City Council
City of Daly City
Planning Division
333 90th Street
Daly City, CA 94015
(650) 991-8033
Project Name Application Type Plan Case No. Location/APN Proposed Unit Type
Site Size
(acres)
Proposed
Units Qty.
Proposed
Density (du/ac) Status Intake Date Hearing Schedule Developer/Contact Planning Contact
Point Martin
- Phase One Major subdivision SUB-6-15-11016
Steve Courter Way and Martin
Street;
APN 005-042-020
Detached
homes 1.9 16 8 Under construction June 8, 2015
City Council approved September
14, 2015; ; two-year time extension
granted
June 25, 2018 to
September 14, 2020
Alec Tappin
KB Home
925-683-7782
Michael
VanLonkhuysen,
Planning Manager
(650) 991-8158
Point Martin
- Phase Two
General Plan
Amendment and
PD Zone Change
GPA-01-16-011884
PD-10-15-11781
CEQA-10-15-11782
APNs 005-031-070 + 47 others;
Steve Courter Way and Martin
Street
Detached
homes 8.3 117 14.1 Under construction October 29, 2015 City Council approved May 22, 2017
Alec Tappin
KB Home
925-683-7782
Michael
VanLonkhuysen,
Planning Manager
(650) 991-8158
Pacific Place Retail
Conversion
Zone Change
Major Subdivision
Design Review
Major Subdivision
ZC-4-16-12036
SUB-4-16-12037
UP-4-16-12038
CEQA-4-16-12039
2665 Geneva Avenue
APN 005-064-250 Condominiums 1.00 7 7.0 All entitlements appoved April 14, 2016
City Council approved
April 24, 2017; two-year time
extension granted April 22, 2021
Harry C. Arthur
(415) 690-6442
Michael
VanLonkhuysen,
Planning Manager
(650) 991-8158
Mission Street/
Goethe Street
Mixed-Use Building
Use Permit and
Design Review
SUB-12-20-14799
UPR-9-16-12301
DR-9-16-012302
6098 Mission Street
APNs 004-031-160 and 170
Apartment
building 0.25 36 144 All entitlements
appoved September 13, 2016
City Council approved
condominium map April 26, 2021.
Use Permit and Design Review
extended to April 26, 2023. All
permits now expire on this date.
6098 Mission Street, LLC
(415) 272-4901
Michael
VanLonkhuysen,
Planning Manager
(650) 991-8158
Eastmoor
Mixed-Use
(CORE)
Use Permit and
Design Review
UPR-6-19-14076 and
DR-6-19-14077
493 Eastmoor Avenue
APN 008-082-200
Mixed-Use
Apartment
building
0.37 71 192.9 In plan check June 18, 2019
City Council approved
February 24, 2020; Time extension
granted to February 24, 2024
Carl Hertel
CORE Affordable
Housing
(408) 292-2841
Michael
VanLonkhuysen,
Planning Manager
(650) 991-8158
Midway Village
Redevelopment
General Plan
Amendment,
Subdivision,
and Design Review
GPA-5-19-14054,
SUB-5-19-14055, and
DR-5-19-14056
45 Midway Drive
APN 005-330-320 and others Apartment buildings 15.00 555 37.0 Under construction June 21, 2019 City Council approved June 8, 2020
Abby Goldware Potluri
Mid-Pen Housing
Coalition
(650) 515-6358
Michael
VanLonkhuysen,
Planning Manager
(650) 991-8158
Jefferson Elementary
School District Faculty
and Staff Housing
General Plan
Amendment, Rezoning,
and Design Review
GPA-11-19-14331
ZC-11-19-14332
DR-11-19-014333
305 Eastmoor Avenue
APN 008-082-160 Apartment buildings 2.38 56 23.5 Under construction November 27, 2019 City Council approved December 14, 2020
Jefferson Elementary
School Dsitrict
(650) 991-1000
Michael
VanLonkhuysen,
Planning Manager
(650) 991-8156
Third Avenue
Townhouses
General Plan
Amendment, Rezoning,
Subdivision, Use Permit,
and Design Review
GPA-8-20-14643
ZC-8-20-14633
SUB-8-20-14634
UPR-8-20-14642
DR-8-20-14636
141 Third Avenue
APN 006-254-030)
Detached
townhomes 0.72 15 21.0
Planning Commission
meeting scheduled
March 7, 2023
June 17, 2020 TBD
John Suppes Authorized
Agent
(650) 465-7369
Michael
VanLonkhuysen,
Planning Manager
(650) 991-8158
Old Burlington Site
Mixed-Use
Redevelopment
(Residential)
Planned Development
Text Amendment and
Design Review
ZC-4-21-14994
DR-4-21-14995
99 Southgate Avenue
APN 002-201-570
Mixed-Use
Apartment
building
1.95 179 91.8
Approved but no
permit application
submitted
April 21, 2021 City Council approved September
12, 2022
Michael Strahs
Kimco Realty
(650) 746-7501
Michael
VanLonkhuysen,
Planning Manager
(650) 991-8158
Serramonte Dey Rey
Redevelopment
(Residential)
General Plan
Amendment, PD
Rezoning, Subdivision,
and Design Review
GPA-04-21-14998,
PD-04-21-14997,
DR-04-21-15000
SUB-04-21-14999
699 Serramonte Boulevard
APN 091-211-230
Mixed-use apartment
buildings and
apartment buildings
22.00 1,235 56.1 Entitlements
in process April 23, 2021
City Council approved Preliminary
Plan
January 10, 2022
Tina Van Raaphorst
Jefferson Union High
School District
(650) 550-7954
Michael
VanLonkhuysen,
Planning Manager
(650) 991-8158
7310 Mission Street
Mixed-Use Building
Use Permit and
Design Review
UPR-04-22-15650
DR-04-22-156516
7310 Mission Street
APN 006-244-080
Mixed-Use
Apartment
building
0.12 17 141.7
Approved but no
permit application
submitted
April 1, 2022
City Council approved
May 23, 2022
(re-approval)
Stephen Antonaros
(415) 864-2261
Brian Paland, Assistant
Planner
(650) 991-8035
CURRENT RESIDENTIAL PROJECT LIST
Reflects application received, entitlements granted, and construction commenced for the 24 months preceding January 1, 2023 Does not include Pre-Application Conference applications (sorted by Planning Division intake order)
Project Name Application Type Plan Case No. Location/APN Proposed Unit Type
Site Size
(acres)
Proposed
Units Qty.
Proposed
Density (du/ac) Status Intake Date Hearing Schedule Developer/Contact Planning Contact
Sullivan Avenue
Apartments
(office conversion)
Use Permit and
Design Review
UPR-10-22-15907
DR-2-23-16093
1784 Sullivan Avenue
APN 006 254 030
Apartment
building 0.25 14 56.0
Planning Commission
meeting scheduled
March 7, 2023
October 6, 2022 TBD Nelson Tong
(650) 773-1862
Michael
VanLonkhuysen,
Planning Manager
(650) 991-8158
6225 Mission Street
Mixed-Use Building
Use Permit,
Variance, and
Design Review
UPR-11-22-15984
VARC-11-22-15985
DR-11-22-15986
6225 Mission Street
APN 004 050 190 and 200
Mixed-Use
Apartment
building
0.09 8 88.9 Application
incomplete December 6, 2022 TBD Tom Zhang
(510) 759-4149
Brian Paland, Assistant
Planner
(650) 991-8035
City of Daly City
Planning Division
333 90th Street
Daly City, CA 94015
(650) 991-8033
Project Name Application Type Plan Case No. Location/APN Proposed New Sq. Ft.
Site Size
(acres) ProposedType Status Intake Date Hearing Schedule Developer/Contact Planner Hilldale School
Expansion
Use Permit and
Design Review
UPR-6-19-14071 and
DR-11-19-14321
25 Florence Avenue
APN 003-401-010 and 030 2,100 1.42 Private school All entitlements appoved March 2, 2018
City Council approved
January 13, 2020; time
extension approved
to January 13, 2025
John Sittner
(801) 359-2000
Michael VanLonkhuysen,
Planning Manager
(650) 991-8158
Serremonte Shopping
Center Northwest
Quadrant (theater,
hotel, and retail)
Design Review DR-1-19-13855
3 Serramonte Center
APN 005-240-180,
-190, and -310
70,000 (cinema)
75,000 (hotel)
28,000 (retail)
80.00 Retail/Office All entitlements
appoved January 22, 2019
DRC approved
August 12, 2019;
Time extension approved by DRC
to December 28, 2022
Regency Centers
(925) 279-1865
Michael VanLonkhuysen,
Planning Manager
(650) 991-8156
Duggan’s Serra
Mortuary Expansion
and Carvana Vending
Machine Fulfillment
Center
Planned Development,
Use Permit,
and Design Review
PD-4-19-13998,
UPR-4-19-13999, and
DR-4-19-14000
500 Westlake Avenue
APN 002-342-160 and
others
15,743 (Duggans expansion)
12-story fullfillement structure
(Carvana)
0.9 (Duggans)
1.75 (Carvana)
Mortuary/
new vecicle
fullfilment
Carvana
construction
complete
April 19, 2019 City Council approved
June 22, 2020
Sierra Enterprises
(707) 287-2537
Michael VanLonkhuysen,
Planning Manager
(650) 991-8156
Mission Street/
Goethe Street
Mixed-Use Building
Use Permit and
Design Review
UPR-7-19-14111 and
DR-7-19-14112
6098 Mission Street
APNs 004-031-160 and 170 1,568 0.25 Retail All entitlements appoved July 9, 2019
City Council approved
condominium map April 26, 2021.
Use Permit and Design Review
extended to April 26, 2023. All
permits now expire on this date.
6098 Mission Street, LLC
(415) 272-4901
Michael VanLonkhuysen,
Planning Manager
(650) 991-8158
Old Burlington Site
Mixed-Use
Redevelopment
(Retail)
Planned Development
Text Amendment and
Design Review
ZC-4-21-14994 and
DR-4-21-14995
99 Southgate Avenue
APNs 002-201-570 10,800 1.95 Retail All entitlements
appoved April 21, 2021 City Council approved
September 12, 2022
Michael Strahs
Kimco Realty
(650) 746-7501
Michael VanLonkhuysen,
Planning Manager
(650) 991-8156
Serramonte Dey Rey
Redevelopment
(Commercial)
General Plan
Amendment, PD
Rezoning, Subdivision,
and Design Review
GPA-04-21-14998,
PD-04-21-14997,
DR-04-21-15000
SUB-04-21-14999
699 Serramonte Boulevard
APN 091-211-230 14,000 22.00 Retail Entitlements
in process April 23, 2021
City Council approved
Preliminary Plan
January 10, 2022
Tina Van Raaphorst
Jefferson Union High
School District
(650) 550-7954
Michael VanLonkhuysen,
Planning Manager
(650) 991-8156
Saint Francis Square
Remodel, Retail
Addition, and Drive-
Through
Use Permit and
Design Review UPR-1-22-15498 79 Saint Francis Square
APNs 008-481-010, -270, and -280 16,247 5.88 Retail Application incomplete October 18, 2021 TBD John Lee (626) 233-8496
Michael VanLonkhuysen,
Planning Manager
(650) 991-8156
Station Avenue
Self Storage Design Review DR-2-22-15533 60 Station Avenue APN 003 293 120 92,450 0.05 Self-Storage Approved but no permit application submitted February 14, 2022 DRC Approved
July 26, 2022
Daniel Sachs
(312) 576-4291
Michael VanLonkhuysen,
Planning Manager
(650) 991-8156
7310 Mission Street
Mixed-Use Building
Use Permit and
Design Review
UPR-04-22-15650
DR-04-22-156516
7310 Mission Street
APN 006-244-080 5,097 0.12 Retail Approved but no permit application submitted April 1, 2022
City Council approved
May 23, 2022
(re-approval)
Stephen Antonaros
(415) 864-2261
Brian Paland
Asistant Planner
(650) 991-8035
455 Hickey
Office Building
Planned
Developemnt
Zoning and
Design Review
PD-10-22-015932 455 Hickey Boulevard
APN 091-341-140 280,000 0.09 Office Application incomplete October 20, 2022 TBD DES Architects
and Engineers
(650) 980-9513
Sam Fielding,
Associate Planner
(650) 991-8156
Cormorant
Battery Storage
Facility
General Plan
Amendment, Zone
Change, Use Permit,
and Design Review
GP-11-22-015959, ZC-11-22-
015960. UPR-11-22-015962,
and DR-11-22-015961
2150 Geneva Avenue
APN 005-050-020 0 11.00 Battery storage Application incomplete November 7, 2022 TBD Aaron Branam
Cormorant Energy
(713) 899-5193
Sam Fielding,
Associate Planner
(650) 991-8156
6225 Mission Street
Mixed-Use Building
Use Permit,
Variance, and
Design Review
UPR-11-22-15984
VARC-11-22-15985
DR-11-22-15986
6225 Mission Street
APN 004 050 190 and 200 567 0.09 Retail Application incomplete December 6, 2022 TBD Tom Zhang (510) 759-4149
Brian Paland
Asistant Planner
(650) 991-8035
CURRENT NON-RESIDENTIAL PROJECT LIST
Reflects application received, entitlements granted, and construction commenced for the 24 months preceding Janaury 1, 2023 Does not include Pre-Application Conference applications (sorted by Planning Division intake order)
DALY CITY INTER-OFFICE MEMORANDUM
COUNCIL COMMITTEE
DATE: March 6, 2023
TO:Development Council Committee
Juslyn Manalo, Vice Mayor
Rod Daus-Magbual, Councilmember
FROM:Tatum Mothershead, Director of Economic and Community Development SUBJECT:Update on Development Projects
______________________________________________________________________________ Attached, please find a copy of the Current Residential Project List and the Current Commercial Project List. Both lists are maintained by the Planning Division and track projects that have pending or recently approved development applications. The Development Committee will have the opportunity to ask questions regarding the approved projects and development applications on the list.
Attachment A – Project List
CITY OF DALY CITY INTER-OFFICE MEMORANDUM
DATE: March 1, 2023
TO:See Below
FROM:Charlie Machado-Morrow, City Manager's Office
SUBJECT: MEETING NOTICE
RE: CDBG Advisory Committee Meeting
DATE:March 6, 2023
TIME:4:00pm
PLACE:Zoom
ATTENDING:
City Participants: Other Participants:
Juslyn Manalo, Vice Mayor
Roderick Daus-Magbual, Councilmember
Thomas J. Piccolotti, City Manager
Tatum Mothershead, Director of ECD
Betsy Zobell
Lenelle Suliguin
cc: City Council
1 DALY CITY INTER-OFFICE MEMORANDUM
DATE: March 6, 2023
TO: CDBG Advisory Committee
Vice Mayor Juslyn Manalo
Councilmember Rod Daus-Magbual
FROM: Betsy ZoBell, Housing and Community Development Supervisor Lenelle Suliguin, Senior Management Analyst
CC: Thomas Piccolotti, City Manager
Tatum Mothershead, Director Economic and Community Development
SUBJECT: Allocation of FY 23-24 Community Development Block Grant Funds and HOME Funds
Materials for Upcoming CDBG Advisory Committee Meeting & 2023-2024 HUD Five-Year Consolidated Plan
This memo provides background information on the following items that will be discussed at our March 6, 2023 meeting:
• Daly City’s 2023-2027 HUD Five-Year Consolidated Plan • Allocation of Daly City's FY 23-24 Community Development Block Grant (CDBG) funds
• Allocation of Daly City's FY23-24 HOME funds
A. DALY CITY’S 2023-2027 HUD FIVE-YEAR CONSOLIDATED PLAN
As the current Five-year HUD Consolidated Plan ends on June 30, 2023, the City is required to prepare and submit a new five-year HUD Consolidated Plan for the time period beginning July 1, 2023 and ending June 30, 2028. The HUD Consolidated Plan describes the City’s community development and housing needs, provides a short and long range plan for the use of HUD programs in addressing these needs, and guides the funding priorities for the CDBG and HOME programs.
Table 1 identifies the City’s priority needs for the Five Year Consolidated Plan. Each priority serves a population and addresses goals to be achieved during the five-year planning period.
Table 2 further describes the goals, outlining the needs addressed by the goals, the source of funding and goal outcome indicators. These tables provide a basis for the annual allocation of CDBG and HOME funds, as the funding allocations reflect the identified priorities. The five-
2 year target goals listed in Table 2 assume funding levels similar to FY23-24 and presumes that funding levels remain consistent over the five-year plan period.
Staff collaborated with the County of San Mateo, and the cities of South San Francisco, San Mateo, and Redwood City to conduct outreach and consultations required for preparation of the Consolidated Plan. The five jurisdictions worked with Root Policy, a housing and community development research firm, which administered a survey for residents and stakeholders to identify housing and community development priorities. Unfortunately, survey participation from Daly City residents was too low to be considered statistically significant. However, the findings from those who participated generally mirrored the priorities expressed in our current Consolidated Plan which include affordable housing, public services for lower income households, economic development, and public facilities.
The need for childcare services was highlighted in consultations Root Policy had with community service organizations serving Daly City residents. During the public hearing for housing and community development needs held on December 13, 2022, Peninsula Family Services wrote in their letter to the City Council:
“Daly City is a community in dire need of high-quality early childhood education.
According to the San Mateo County 2022 Child Care Needs Assessment only 19% of Daly City’s demand for infant care is being met by existing providers. For the high-quality, full-day subsidized spaces that PFS provides, there is an unmet need of 878 children in need of subsidized spaces. In addition, our waiting list for current services in Daly City are over 100 children long.”
Given that there are alr eady plans to build a childcare facility t o meet this unmet need using $1,000,000 in American R escue Plan Act funds ( Council Resolution 21-58) and $800,000 from the 2023 Consolidated Appropriations Act faci litated by Co ngresswoman Jackie Speier , s taff recommends that the construction of the childcare facility be identified as a goal in the Consolidated Plan and that the Council approve the use of a Section 108 loan to fully finance the construction of the fa cility. The use of the Sectio n 108 Loan Program must be identified in the Consolidated Plan.
The Section 108 Loan Guarante e Program (Section 108) provides Community Development Block Grant ( CDBG) recipients with the ability to leverage their annual grant allocation to access low -cost, flexible fi nancing for economic development, housing, public facility, and infrastructure pr ojects. Communities can use Sect ion 108 guaranteed loans to either f inance specific projects or to launch loan funds to finance mult iple projects over several years. In 2001 the City utilized the Section 108 program to finance the construction of the Bayshore Community Center. That loan wa s paid off in August of 2022. Loan payments for a $3.2 million Section 108 loan to finance a portion of the costs of the proposed childcare facility would be approximately $390,000 per year and would begin in FY 2023-24.
3 B. ALLOCATION OF FY23-24 CDBG FUNDS
On February 27, 2023, the U.S. Department of Housing and Urban Development (HUD) published online the CDBG and HOME allocations for FY23-24. The City has been allocated $977,893 in CDBG funds. This is a 2.7% decreased from its allocation in FY22-23. Table 3 summarizes our total estimated CDBG revenue for FY23-24. The revenue estimate includes the $977,893 plus estimated FY23-24 program income and unspent prior year CDBG funds.
In December 2022, the City Council authorized staff to circulate a request for proposals to organizations and City Departments that intended to undertake activities that are eligible under the CDBG Program. A total of eight proposals were received from various organizations serving Daly City residents and resulted in a total funding request of $602,182. Table 4 summarizes pertinent information about each proposal for the FY23-24 CDBG Grant cycle. The table includes a general description of the projects and the number of proposed beneficiaries.
For our meeting on March 6, we have prepared preliminary recommendations for how the City might allocate available CDBG funds. These recommendations are shown in Table 5 and are broken out into various categories: Administration, Housing, Capital Projects, and Public Services. The categories of Administration and Public Services have maximums.
Administration expenditures are capped at 20% of the FY23-24 allocation plus estimated program income for FY23-24. Public Service expenditures are capped at 15% of the FY23-24 allocation plus program income from FY22-23. The City has a two-year CDBG funding cycle, issuing Request for Proposals for the first and third years of the Consolidated Plan period.
Grantees funded in FY22-23 and performing satisfactorily will have their funding extended for the second year. In the fifth and final year of the Consolidated Plan period, an RFP is issued for one year.
C. ALLOCATION OF FY23-24 HOME FUNDS
As mentioned previously, the City has been informed of its FY23-24 HOME allocation. It will be receiving $354,725 in HOME funds. Staff recommends that ten percent (the statutory limit) of this amount be set aside for HOME program administration. Staff also recommends that 75% ($266,043) be allocated for 493 Eastmoor, a 72-unit affordable housing development that will target households at 60% AMI or less. The City has already conditionally committed $1,129,804 in prior year HOME funds (Council Resolution 22-84) to this project. Fifteen percent of each year’s HOME allocation must be set-aside to a housing project sponsored or developed by a community housing development organization (CHDO). As in years past, the use of this set- aside has been challenging because there are few CHDOs in the County.
The HUD Five-Year Consolidated Plan must be submitted to HUD by May 15, 2023. The Consolidated Plan also includes the FY23-24 Annual Action Plan, the first year in the Five-Year Plan period. The draft Consolidated Plan will be made available for a 30-day public review and comment period followed by a public hearing either the second Council meeting in April or the first Council meeting in May.
4 TABLE 1: CONSOLIDATED PLAN PRIORITY NEEDS
Priority Need Name Priority
Level
Population Goals Addressing
Maintain and improve
housing stock
High Low
Moderate
Large Families
Families with Children
Elderly
Elderly
Provide minor home repair
Provide minor and complete
rehab
Provide housing accessibility
modifications
Increase supply of affordable
housing
High Extremely Low
Low
Moderate
Large Families
Families with Children
Elderly
Develop new rental units
Develop new ownership units
Assist first time homebuyers
Acquisition and rehabilitation
Preserve housing affordability High Extremely Low
Low
Moderate
Large Families
Families with Children
Elderly
Public Housing
Residents
Preserve rental assistance
Affordable housing preservation
Public Services High Extremely Low
Low
Moderate
Large Families
Families with Children
Elderly
Chronic Homelessness
Individuals
Unaccompanied Youth
Persons with Physical
Disabilities
Victims of Domestic
Violence
Non-housing
Community
Development
Provide public services for
children and youth
Provide public services for the
homeless and special needs
populations
Economic Development High Extremely Low
Low
Moderate
Facilitate economic development
Maintain, provide and
improve public facilities
High Extremely Low
Low
Moderate
Maintain, provide and improve
public facilities
Increase handicapped
accessibility
General Administration,
including Furthering Fair
Housing
High Extremely Low
Low
Moderate
Administration and Coordination
Fair Housing
5 TABLE 2: CONSOLIDATED PLAN GOALS
Goal Name Start
Year
End
Year
Category Needs Addressed Funding Goal Outcome
Indicator
Provide minor
home repair
2023 2027 Affordable
Housing
Non-
Homeless
Special Needs
Maintain and
improve housing
stock
CDBG Homeowner
Housing
Rehabilitated:
35 Household
Housing Unit
Provide
Residential
Rehabilitation
program
2023 2027 Affordable
Housing
Non-
Homeless
Special Needs
Maintain and
improve housing
stock
CDBG Homeowner
Housing
Rehabilitated:
30 Household
Housing Unit
Provide
housing
accessibility
modifications
2023 2027 Affordable
Housing
Non-
Homeless
Special Needs
Maintain and
improve housing
stock
CDBG Homeowner
Housing
Rehabilitated:
50 Household
Housing Unit
Provide public
services for
children and
youth
2023 2027 Non-Housing
Community
Development
Public Services CDBG Public service
activities other
than
Low/Moderate
Income Housing
Benefit:
150 Persons
Assisted
Provide public
services for
the homeless
2023 2027 Homeless Public Services CDBG Public service
activities for
Low/Moderate
Income Housing
Benefit:
60 Households
Assisted
Affirmatively
further Fair
Housing
2023 2027 Affordable
Housing
Non-Housing
Community
Development
General
Administration,
including
furthering Fair
Housing
CDBG
Provide public
services for
2023 2027 Affordable
Housing
Public Services CDBG
6 Goal Name Start
Year
End
Year
Category Needs Addressed Funding Goal Outcome
Indicator
special needs
population
Non-
Homeless
Special Needs
Develop new
rental units
2023 2027 Affordable
Housing
Increase supply
of affordable
housing
HOME Rental units
constructed:
71 Household
Housing Unit
Develop new
ownership
units
2023 2027 Affordable
Housing
Increase supply
of affordable
housing
HOME
Assist first
time
homebuyers
2023 2027 Affordable
Housing
Increase supply
of affordable
housing
Public Services
Preserve
rental
assistance
2023 2027 Affordable
Housing
Public
Housing
Preserve
housing
affordability
Acquisition
and
rehabilitation
2023 2027 Affordable
Housing
Increase supply
of affordable
housing
Affordable
housing
preservation
2023 2027 Affordable
Housing
Preserve
housing
affordability
Maintain and
improve public
facilities
2023 2027 Non-Housing
Community
Development
Maintain and
improve public
facilities
CDBG
Facilitate
economic
development
2023 2027 Non-Housing
Community
Development
Economic
Development
CDBG
Provide public
services -
General
2023 2027 Affordable
Housing
Non-Housing
Community
Development
Public Services CDBG Public service
activities other
than
Low/Moderate
Income Housing
Benefit:
150 persons
7 TABLE 3: ESTIMATED CDBG REVENUE PROJECTION FOR FY23-24
Sources Sub-Totals Totals
FY 2023-24 CDBG Entitlement Grant 977,893
FY 2023-24 Estimated Program Income 48,000
Rehab Loan Repayments 48,000
Loan Repays 48,000
Loan Payoffs 0
Affordable Housing Loan Repayments 0
Loan Repays 0
0 Unallocated FY 2022-23 Funds 406,578
Unappropriated Funds 322,199
Excess Program Income 84,380
Rehab Loan Repayments 59,357
Housing Devt. Loan Repayments 25,023
Estimated FY2022-23 Year-End Unspent Funds 0
Residential Rehabilitation (303) 0
CDBG Administration (305)
0 Subrecipents
ESTIMATED REVENUES FOR FY2023-24 1,432,471
HUD CAPS for FY 2023-24 ACTUAL
Planning / Admin. 20% Limitation (+20% of FY2023-24 program income) 205,179 Public Service 15% Limitation (+15% of FY2022-23est. program income) 167,790
Calc'd FY 2022-23 Est. Program Income Budgeted Y-E Estimate EXCESS Rehab Loan Repayments 48,800 108,157 59,357
Housing Development Loan Repayments 7,529 32,552 25,023 TOTALS 56,329 140,709 84,380
8 TABLE 4: FY23-24 CDBG APPLICATIONS RECEIVED
Organization Project/Program Funding Requested Proposed Project Proposed Low
Income
Beneficiaries*
Center for
Independence for
Individuals with
Disabilities (CIID)
Home Accessibility
Modification (HAM) $ 20,000.00
provide home
accessibility
modifications (e.g.
grab bars, ramps) 10 households
Habitat for Humanity Housing Rehab $ 396,182.00
administer the
rehab loan
program and
provide residential
rehab repairs 4 housing units
Life Moves Family Crossroads $ 18,000.00
provide
transitional
housing and
comprehensive
supportive
services at Family
Crossroads
12 households/30
persons
Peninsula Family
Service (PFS)
Mission Child
Development center $ 30,000.00
provide childcare
at the PFS
Mission Child
Development
Center 30 children
Project Read Project Read $ 20,000.00
provide free
literacy tutoring up to 30 persons
Project Sentinel Fair Housing $ 20,000.00
provide
comprehensive
fair housing
services including
complaint
investigations,
audits, and
community
outreach and
education
6 investigations;
7 audits
Rebuilding Together Safe at Home $ 63,000.00
provide critical
health and safely
related minor
home repairs and
accessibility
modifications 7 housing units
Renaissance
Entrepreneurship
Entrepreneur
Classes $ 35,000.00
provide support
to low income
entrepreneurs
through
customized small
business training,
one-one-one
consulting, and
access to capital,
resources and
networks 40 persons
$ 602,182.00
* p= people, h=
households
9 TABLE 5: FY23-24 CDBG ALLOCATION RECOMMENDATIONS
ACTIVITY
FY23-24
Request
FY22-23
Allocation
FY23-24
Recommendations
Administration
General Administration 185,179.00$ 195,869$ 185,179$ Project Sentinel/Fair Housing 20,000.00$ 15,000$ 20,000$ subtotal 205,179.00$ 210,869$ 205,179$ Capital Projects
Early Learning/Childcare Center 389,230.00$ 389,230$ 389,230$ subtotal 389,230.00$ 389,230$ 389,230$ Economic Development
Renaissance Entepreneurship 35,000.00$ 22,637$ 35,000$ subtotal 35,000.00$ 22,637$ 35,000$ Housing
Rebuilding Together/Safe at Home 63,000.00$ 20,000$ 63,000$ CID/Housing Accessibility Modification (HAM) Program 20,000.00$ 20,000$ 20,000$ Habitat for Humanity/Residental Rehab 396,182.00$ 168,100$ 396,182$ City Housing Rehab 255,880.00$ 335,354$ 255,880$ subtotal 735,062.00$ 543,454$ 735,062$ Public Services
Life Moves/Family Crossroads 18,000.00$ 18,000$ 18,000$ Peninsula Family Service 30,000.00$ 30,000$ 30,000$ Project Read 20,000.00$ 20,000$ 20,000$ subtotal 68,000.00$ 68,000$ 68,000$ TOTAL 1,432,471.00$ 1,234,190$ 1,432,471$
FY23-24 estimated revenue from Table 1 1,432,471.00$
FY23-24 public services cap 167,790.00$
FY23-24 admin cap 205,179.00$
CITY OF DALY CITY INTER-OFFICE MEMORANDUM
DATE: March 1, 2023
TO:See Below
FROM:Charlie Machado-Morrow, City Manager's Office
SUBJECT: MEETING NOTICE
RE: Design Review Committee Meeting (79 St. Francis Square, Seafood City) DATE:Monday March 6, 2023
TIME:5:00pm
PLACE:Zoom
ATTENDING:
City Participants: Other Participants:
Juslyn Manalo, Vice Mayor Bill Beebe
Roderick Daus-Magbual, Councilmember Stan Iverson______________________ Michael Van Lonkhuysen
Sam Feilding
Tatum Mothershead
Thomas J. Piccolotti
cc: City Council
DALY CITY INTER-OFFICE MEMORANDUM
DESIGN REVIEW COMMITTEE
DATE: March 6, 2023
TO: Council Design Review Committee
Juslyn Manalo, Vice Major
Rod Daus-Magbual, Councilmember
FROM: Sam Fielding, Associate Planner
SUBJECT: Design Review DR-01-22-015499
Saint Francis Square Shopping Center Renovation Project – 79 Saint Francis Square, APNs 008-481-010, #008-481-270 and -280
_____________________________________________________________________________
RECOMMENDATION
Staff recommends the Design R eview Committee approve Design Review DR-01-22-015499, subject to the Conditions of Approval in this report.
PROPOSAL
The applicant, Amor Architectural Corporation, is requesting approval to demolish and reconstruct a supermarket (Seafood City), construct a new retail building (new building #4), and undertake façade improvements to three existing retail buildings (Buildings #1, #2 and #3) at the Saint Franc is Square Shopping Center (see Att achment A – Project Narrative ). L andscaping (trees, planters, landscaping) and renovate the surface parking lot (new paving, striping and parking lot lighting, and driveway access) would also be implement ed (see Attachment B – Project Plans). The Committee should be aware that a future phase of the project will include construction of a new restaurant and drive -through and a master sign progra m for the shopping center, which will undergo separate entitlements through the Planning Commiss ion and C ity Council.
BACKGROUND
The Saint Francis Square Shopping Center, built in the late 1960s, is located at the southeast corner of Saint Francis Boulevard and Southgate Avenue. The shopping center contains a mix of commercial retail, office and restaurant uses on the site. The proposed shopping center renovation project would demolish and construct a new la rger 25,405 sf, supermarket store, construct a new 6,657 sf retail building, renovate the exterior façade of three existing retail buildings and renovate the parking lot with new parking striping, planter boxes, landscaping, and lighting plan. Vehicular access would be provided by three full access driveways including on exiting driveway on Saint Francis Boulevard and two existing driveways on Southgate Avenue. Parking would be shared by all uses on site.
The subject property is zoned Neighborhood Commercial (C-N), where the new supermarket, new retail pad, retail building façade improvements, and parking lot landscaping an d renovations are allowed under the existing zoning, without the requirement for a use permit. These components of the Saint Francis Square Renov ation project are being reviewed and approved under separate
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79 Saint Francis Square Shopping Center Renovation Project Page 2
building permits. The applicant will submit a Design Review and Use Permit application later for a new restaurant with drive-through and master sign program for review and approval by the Planning Commission and City Council.
DESIGN EVALUATION
Site Plan
The proposed Saint Francis S hopping Center renovation project is loca ted on an approximate 256,133 square foot parc el at the northwest corner of Saint Francis Bo ulevard and Southgat e Boulevard. The project would demolish and expand the size of the existing supermarket store by 4,756 (from 20,649 sf to 25,405 sf) and add a ne w retail building of 6,657 sf at the western portion of the shopping center property. In addition, a new 2,480 sf restaurant with drive-through would be const ructed, under separate design review and use permits. The overall project would increase the square footage of building space from 57,955 sf to 71,848 sf.
The shopping center ren ovation project is b eing implemented in phases. The first phase entails demolition and new const ruction of the existing supermarket store and site plan work that includes the installation of a new water main, sewer main, st orm dra inage, and treatment of storm water, site power and light, landscaping, and repaving and rest riping the surface parking lot. The project propose s to provide approximately 262 surface parking spaces . The second phase would remodel the front facades of thre e existing retail buildings. The third phase would construct a pad for a new retail building (Building #4). The fourth phase entails construction of a new restaurant (Building #5) and drive-through and a master sign program, which will require a separate design review and use permit application.
Landscaping
The shopping center renovation project includes new landscaping that would include a variety of trees and large shrubs, shrubs/perennials/ground covers and vi nes, spread throughout the shopping center and along the border areas of the shopping center. There would be a total of 129 trees, 1,387 Shrubs/perennials/Ground covers and 8 vi nes. The ground cover plants will be drought tolerant plants and shade tolerant, where planted in shaded areas. Trees would be located on landscaping and driveway entry ways adjacent to St Francis Boulevard and Southgate Avenue and spaced evenly throughout the surface parking lot. The tree selected include Arbutus marina, Australian Flame Tree, Ceanothus hybrid, Toyon, Sweet Shade, Brisbane B ox and New Zealand Christmas Tree. Shrubs , Perennials and Ground Covers inc lude Common Yarrow hybrid, Santa Barbara Daisy, Blue Fescue h ybrid, Pink Muhly, Rosemary, Autumn Sage hybrid and Cat Cl aw Vine. Ground covers include White Lantana hybrid and Sage hybrid. A three-inch thick layer of shredded bark mulch will be spread thr oughout all landscape areas. All plan tings would be selected and sited to maintain visibility site distance requirements for pedestrians, bicyclists, and vehicles.
Site Lighting
Lighting will be provided for all shopping center parking lot paved areas according to Daly City required lu minate s tandards and light type specific ations. The light quantities include 9 Flood type lights, 5 Single Pole Type 3, 12 Single Pole Type5, 10 Wall Pack T ype 2, 13 Wall Pack Type 3 and 4 Wall Pack Type.
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79 Saint Francis Square Shopping Center Renovation Project Page 3
Building Design
The design elements including colors, material, and architectural details of the new supermarket are integrated with the renovation of the exist ing r etail building facades and the new retai l building to be located at the southwest side of the shopping center. Based on staff review of the plans, t he architectural design and proposed exterior materials and earth tone colors of the shopping center buildings are compatible with the character, scale and quality of the design, the architectural relationship with the site and other buildings, building ma terials, and colors . A master sign program application will be submitted for review and approval at a late r date for all buildings at the shopping center.
Supermarket
The supermarket r eplaces and expands the b uilding footprint of the previous supermarket building, located on the north east corner of the shopping center , near the Southgate Avenue driveway entra nce. The exteri or finish materials, det ails and colors include gray (“Stonington Gray”) exterior stucco wall , horizontal wood siding ( “Moonlight White ”, corrugated metal siding, black ( “Black Iron” ) decorative framed cornice, exterior st acked st one entry pillars (“insert color”) and natural wood color trellis. Windows will be low -e insulated glazed windows with clear anodized aluminum storefront window framing . In addition, the building exterior includes wall sconce lighting, decorative corbels, and a metal canopy (Please see attachment B, Plan Sheet A4.2). Signage will be submitted und er a separate master sign program application for review and approval.
New Retail Building
The new retail building will be in the southwest corner of the s hopping center facing east. The exterior retailing building wall will be s mooth painted pla ster with finish combination of stone veneer base and wood paneling. The exterior finish details and materials include vertical reveals, accent band, cedar board batten siding . The exterior wall colors will be beige (“Spare White”) and grey colors (“Cornwall Slate”). The exterior wood trim will be painted grey tones (“Pewter Tankard”) and (“Cornwall Slate”). The wood siding will be light grey (“Skipping Rocks”). The ground level exterior st one veneer i s a com bination of grey (“Coronado Prairie Stone-Mocha Granite”) veneer and (“Coronado Element Ledgestone-Mount Vernon” ) st one veneer. The windows will be clear anodized alumin um storefront windows with overhang roof panel pai nted black (“Black of Night”). The proposed roof is a standing seam black metal roof with decorative wood beam and trusses to match the wood color (“American Cherry”) (Please see Attachment B, Plan Sheet A3.2).
Existing Retail Building Façade Improvements
The applicant will improve the exterior retail buildings by removing and i nstalling new exterior front facades and doorways. The exterior concrete block and wood st ud walls of the existing retail buildings will remain; however, the arcade awnings will be d emolished. The new exterior finishes mat erials and colors include Nichiha fiber cement pane ls (“Cedar”), c orrugated metal siding, wood trellis ( “Horseradish”), exterior smooth plast er gray ( “Stonington Gray” ), black (“Black Iron) parapet trim, exterior stacked stone base entry and wood trellis pillars, wall sconce lighting, met al canopy and st anding seam shed roof. The windows will be Low -E i nsulated
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79 Saint Francis Square Shopping Center Renovation Project Page 4
glazing windows with clear anodized aluminum st orefront window frames. The exist ing st ore front exteriors will be repaired and repainted. In addition, new planters will be installed along the retail buildings’ frontage (Please see Attachment B, Plan Sheet A4.2).
Staff has reviewed the architectural design of the proposed new supermarket, retail store building and restaurant as well as the façade improvements to the building with th e three existing retail business and is satisfied that the applicant has incorporated architectural considerations in the design of the new buildings to ensure the compatibility of this development with its design concept and the character of other adjacen t b uildings. These consider ations include, but are n ot lim ited to, the character, scale an d quality of the design, the ar chitectural relationship with the site and other buildings, building materials, and colors.
Staff does however make the following recommendations for Conditions of Approval:
1. The overhang of any sloping roof shall be at least 36 inches. All such overhands shall receive corbels sized for proper pr oportion to the a djacent roof, as determined by the Planning Division.
2. Similar wainscot veneer and decorative cap shall be added to the base of all buildings . The veneer shall return the ent irety of the north elevation of the supermarket building, facing Southgate Avenue and the north elevation of the new retail building.
3. Cart corrals adjacent to any building shall be constructed from concrete and re ceive the wainscot veneer identified in the previous Condition of Appr oval or similar material acceptable to the Planning Division.
4. The north elevation of the new retail building shall receive additional architectural elements that assist with breaking u p the long blank walls that are currently proposed. A potential remedy to this requirement could be the placement a halo-illuminated sign at this wall.
5. All rooftop mechanical equipment shall receive a roof screen if visible from the adjacent street or center parking lot, as determined necessary by the Planning Division.
6. All trash enclosures associated with the project shall be constructed from concrete reflecting the design element quality present on retail buildings, shall be covered with a roof, and receive anodized heavy-gauge metal doors painted to match/complement the design present in the retail buildings.
7. The applicant shall be required to submit and im plement a Sign Program for the shopping center. The submittal and approval of the Sign Program by the City shall occur prior to occupancy of the new supermarket building. All signs, aside from major tenant signs and sign that the Planning Division deems re-usable shall be halo-illuminated only. All signs shall be in proportion to the surface upon which they are mounted.
Transportation and Parking
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79 Saint Francis Square Shopping Center Renovation Project Page 5
The proposed s hopping center renovation project would provide approximately 262 parking spaces, sufficient to accommodate the projected peak parking de mand, according to the traffic consultant transportation study completed for the project. The project would consolidat e t he number of existing driveways from two to one on Saint Francis Boulevard and four to two on Southgate Avenue. A traffic consultant (Hexagon Transportation Consultants, Inc.) has prepared a Traffic St udy for the proposed project that examine d the local tra ffic and parking for the project.
Traffic Analysis
The Local Traff ic analysis evaluat ed the project ’s effect on week day AM and PM peak -hour traffic conditions at the Saint Francis Boulevard and Southgate Avenue intersection, queuing at the study intersection, site access, on -site circulation, drive-through queuing, and parking. The results of the intersection level of s ervice analysis indicate that the st udy intersection would operate at accep table levels during both the AM and PM pea k hours of commute traf fic under existing plus project conditions. Therefore, the project traffic would not cause an adverse effect on traffic operations.
Site Access and On-Site Circulation
Vehicular access t o the site woul d be provided by the t hree exist ing full -access d riveways including one driveway on Saint Francis Boulevard and two driveways on Southgat e Avenue.
The Daly City Municipal Code require s a minimum driveway width of 24 feet for a two -way driveway. The remaining exist ing drivewa ys would be at least 26 feet w ide, wh ich meet the Daly City requirement. An evaluation of the on- site circulation d etermined that the project would provide adequate circulation around the surface lot with acceptable drive aisle widths and site distance clear of obst ructions for visibi lity of pedestrians on sidewalks and vehicles and bicycles traveling on Saint Francis Boulevard and Southgate Avenue.
The Design Review Commi ttee should be aware th at the a pplicant has proposed removing the pedestrian access sidewalk that currently exists at the driveway leading to the shopping center parking lot from S aint Francis Boule vard. The applicant has cited the lack of safety to pedestrians given the slope of the access sidewalk and the inability to replace the sidewalk with a feasible alternative. Staff had initially resisted the removal but has since agreed to it given that a replacement would need be of significant length from the sidewalk al ong Saint Francis Boulevard and therefore indirect. This indirectness would negate the l ikelihood of its use by pedestrians seeking the most direct route to the supermarket and retail uses on the site, and so staff has reluctantly agreed to recommend its removal to the Design Review Committee.
Parking Analysis
Section 17.34.020 of the Daly City Code re quires parking for the shopping center be calcula ted as following for restaurant and retail service commercial uses:
• All Other Retail or Servi ce Commercial: one space for each 300 sf of gross fl oor area up to 21,000 sf; thereafter, one space for each 200 sf of gross floor area.
• Fast-Food Restaurant or Drive-Through: one space per 75 sf of gross floor area.
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79 Saint Francis Square Shopping Center Renovation Project Page 6
The shopping center would require 33 parking spaces for the fast -foot restaurant and 312 spaces for all othe r uses, for a total of 345 parking spaces. The shopping center would provide 262 parking spaces, which are 83 spaces fewer than the requires spaces. According to City Code, for mixed use developments the city may gr ant a reduction in the overall off -street parking requirement by no more than 20 percent (from 345 to 276 spaces) if the individua l activities within a single co mplex were considered separately. Because the proposed parking spaces are fewer than the required spaces, a parking demand analysis was conducted to estimate the parking demand of the shopping center b ased on the vehicle parking counts conduc ted for the shopping center and the ITE Parking Ge nerational Manual, 5 th Edition, for the proposed retail building, fast-food restaurant, and the supermarket store. The estimated parking demand for the new uses were added to the existing parking demand to determine if the proposed parking supply would be adequate. The analysis f ound that the maximum parking de mand for the shopping center with the new buildings would be 226 and 250 spaces on a weekday and Saturday. T herefore, the proposed parking supply of 262 spaces would be sufficient to accommodate the projected peak parking demand.
In conclusion, the traffic operations analysis for the propose d renovation and expansion of the Saint Francis Square shopping center shows that the vehicle trips generated by the project would not cause an adverse effect on traffic operations at the adjacent Saint Francis Boulevard and Southgate Avenue intersection and the project driveways (see Attachment C - Traffic Study).
Building Height
The subject property is zoned C-N, Neighborhood Commercial where the maximum building height allowed is 36 feet. The proposed height for the new supermarket would be 32’-6”. The existing retail buildings undergoing façade improvements (buildings #2 and #3) are 26’ in height. The new retail building (building #4) would be 30’ in height. Based on the plans submitted by the applicant, the proposed new buildings and façade improvements demonstrate that the project complies with the Zoning Ordinance height maximum.
ENVIRONMENTAL ASSESSMENT
The proposed project is categorically exempt pursuant to California Environmental Quality Act (CEQA) Guidelines Sections 15302, Class 2, (c) Replacement or Reconstruction of a commercial structure with a ne w structure of substantially the same size, purpose, and capacity, and Section 15303. New Construction or Conversion of Small Structures, Class 3, (c), new construction of up to four commercial buildings not exceeding 10,000 square feet.
The proposed demolition and new construction of a seafood supermarket is categorically exempt under Class 2 as it rep laces an existing commercial structure (supermarket) with a new structure (supermarket) of substantially the same size, purpose, and capacity. The propos ed n ew retail store building (building #4) is exempt under Class 3 as i t would be a 6,657- sf building, not exceeding 10,000 square feet and is a use permitted in the Neighborhood Commercial Zone.
The Engineering Division required preparation of a transportation study to ensure that the project was not exclude d from the exemption (see Attachment E, Traffic Study). T he study found that
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79 Saint Francis Square Shopping Center Renovation Project Page 7
the proposed project would not have any significant impacts on the transpor tation system in terms of conflicts with plans, local traffic and parking impacts, and hazards or emergency access.
FINDINGS
Staff recommends that the Design Review Committee find that the approval of Design Review DR-2-22-15533, as co nditioned, is in accordance with Section 17.45 (Design Review ) of th e Daly City Municipal Code. Approval of the design revie w application, as conditioned herein, is in the best interest of the public health, safety, a nd general welfare of the community, and that the genera l site, architecture, and landscape considerati ons have been incorporat ed t o ensure compatibility with adjacent buildings and to provide an attra ctive environment. The se findings are based in part on the following:
1. The Design Review Committee has reviewed the proposal under the requirements of the California Environmental Quality Act (CEQA) and has determined that the proposed project is categorically exempt pursuant to California Environmental Quality Act (CEQA) Guidelines Section 15332: In-Fill Development Projects;
2. The project complies with applic able provisions of Design Re view Section 17.45 of the Zoning Ordinance and is consistent with the Planned Development zoning applicable to the site;
3. General architectural considerations have been incorporated to ensure the compatibility of this development with its design concept a nd the character of o ther adjacent buildings. These considerations include, but are not limited to, the character, scale and quality of the design, the architectural relationship with the site and other buildings, building materials, and colors;
4. The proposed buildings conform to the 36-foot height limit along the front elevation, which is along Saint Francis Boulevard and;
5. The project wil l minimize the risk to existing pu blic improvements an d adjacent private property by providing controlled stormwater runoff from the site t o City facilities in full compliance with Or der R -2 NPDES Permi t No. CAS612008 a nd Order No. 2010- 0014- DWQ, NPDES No. CAS000002, the s tatewide National Pollutant Discharge Elimination System (NPDES) General Construction Activity Storm Water Permit.
CONDITIONS OF APPROVAL
Failure to comply with these Conditions of Approval is a violation of this title and subject to enforcement, penalties, and legal procedures as prescribed by Chapter 17.50 of the Daly City
Municipal Code. Minor modifications may be approved administratively by the Planning Division; however, major changes to the approved design will require Design Committee approval. Distinctions between major and minor changes are subject to the determination by the Director of Economic and Community Development. The recommended Conditions of Approval related to the site and architectural designs for Design Review DR--01-22-015499 are as follows:
A. DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT
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79 Saint Francis Square Shopping Center Renovation Project Page 8
General
1. Plans submitted for the construction of all improvements shall be consistent with plans and project details f or Design Review DR- -01-22-015499, as ap proved by the Daly City Council Design Review Committee. Modifications required for minor design and location changes may be approved by the P lanning Divisio n. Major changes will require revie w and approval by the Design Review Committee.
2. If building pe rmits have not bee n issued within one year of Design Revie w Committee approval, the Design Review application shall expire.
3. The applicant sha ll comp ly with all applicable development standards specified in the zoning for this site.
4. The proposed landscaping is subject to Chapter 17.41 (Water Conservation in Landscaping) of the Daly City Municipal Code. The applicant shall submit documentation as required by this chapter to the Planning Division at the time of building permit submittal.
5. The applicant s hall provide utility , grading, and landscape plans at the time of building permit su bmittal. The Plan ning Division shall not begin review of the building permit application without the provision of these items.
6. All Conditions of Ap proval identified herein shall be satisfied prior to final Certificate of Occupancy, unless otherwise specified.
Parking Lot Design
7. Prior to building permit issuance, the applicant shall submit a striping pl an to the Planning Division, Building Division, and Fire Department for review and approva l. Any parking spaces that are mandated to be allocated to clean air vehicles or that provide EV charging shall be signed as such and painted green with appropriate ground-painted lettering and iconography.
Building Design
8. The applicant shall provide e xterior up/and down lighting (sconces) that accentuate the building exterior.
9. All signs shall conform to the Zoning Or dinance maximum and architectural quality of the building, as det ermined by st aff. Unless other wise permitted by st aff, all signs shall incorporate halo-illumination.
10. The overhang of any sloping roof shall be at least 36 inches. All such overhands shall receive corbels sized for proper pr oportion to the adjacent roof, as determined by the Planning Division.
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79 Saint Francis Square Shopping Center Renovation Project Page 9
11. Similar wainscot veneer and decorative cap shall be added to the base o f all buildings. The veneer shall return the ent irety of the north elevation of the supermarket building, facing Southgate Avenue and the north elevation of the new retail building.
12. Cart corrals adjacent to any building shall be constructed from concrete and re ceive the wainscot veneer identified in the previous Condition of Appr oval or similar material acceptable to the Planning Division.
13. The north elevation of the new retail building shall receive additional architectural elements that assist with b reaking up the long blank walls that are currently proposed. A potential remedy to this requirement could be the placement a halo-illuminated sign at this wall.
14. All rooftop mechanical equipment shall receive a roof screen if visible from the adjacent street or center parking lot, as determined necessary by the Planning Division.
15. All trash enclosures associated with the project shall be constructed from concrete reflecting the design element quality present on retail buildings, shall be covered with a roof, and receive anodized heavy-gauge metal doors painted to match/complement the design present in the retail buildings.
16. The applicant shall be required to submit and implement a Sign Program for the shopping center. The submittal and approval of the Sign Program by the City shall occur prior to occupancy of the new supermarket building. All signs, aside from major tenant signs and sign that the Planning Division deems re-usable shall be halo-illuminated only. All signs shall be in proportion to the surface upon which they are mounted.
Stormwater Management
17. The applicant shall develop and submit a stormwater management plan that illustrates f ull compliance with Section C.3 of Order R -2-2009-0074 NPDES Permit No. CAS612008.
The project must comply w ith Order N o. 2010-0014-DWQ, NPDES No. CAS000002, t he statewide National Pollutant Discharge Elimination System (NPDES) General Construction Activity Storm Water Permit.
18. The applicant shall receive approval of the stormwater management plan from a third-party reviewer appointed by the Ci ty prior to buildin g permit submittal. The applicant shall pay the entire cost of the third-party reviewer.
19. All stormwater treatment facilities shall be inspected during construction to ensure eventual compliance with the stormwater management plan. The applicant shall pay the entire cost of these inspections.
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20. The applicant shall enter into a Maint enance Agreement with the City to ensure long- term maintenance and servicing by the Pro perty Owner of stormwater site design and treatment control measures according to the approved Maintenance Plan.
21. The applicant shall arrange and pay for final inspection of installed treatment measure by municipality’s Special Inspector w ithin 45 days of in stallation or project construction completion, whichever comes first.
22. The applicant shall submit a stormwater management plan that illustrates full compliance with the C ity’s stormwater reg ulations. The plan shall build upon the prelimi nary plan submitted by the applicant to identify appr opriately siz ed facilities necessary to fully comply the City’s NPDES Permit and shall include stormwater treatment calculations that demonstrate this comp liance. Where necessary, the plan shall also dem onstrate that substrate material can accept and/or has been designe d to a ccept stormwater for trea tment and can do so at a rate acceptabl e to the Ci ty. Th e applicant shall be aware that the Stormwater Treatment Plan is sub ject to third -party review and that the entire cost of this review will be paid for by the applicant.
Site Maintenance
23. The applicant shall submit a site maintenance plan to the Planning Division for review and approval. The maintenance plan shall reference the cross-access easements required by the City during the parcel approval for th e project and s hall p rovide specific mainte nance assignments of all shared facilities on the project site. These facilities shall include, but not limited to driveways, drainage facilities, retaining walls, site lighting, and the st ormwater treatment meas ures identified in th e St ormwater Treatment Plan. Where necessary, the maintenance p lan shall identify any responsibilities o f the senior apar tments, where the apartments benefit from shared facilities (e.g., driveways).
24. The applicant shall maintain the building in a m anner that enhances the life and character of the building through routine clea ning of the si te and building facades in response to prevent premature aging and wear due to the harsh climatic conditions.
B. DEPARTMENT OF PUBLIC WORKS/ENGINEERING
General
25. All improvements, including the on - and off-site improvements and all public servic e and utility facilities, shall be completed by the applicant, or shall be incorporated into a development agreement before issuance of a building permit.
26. All improvements shall be consistent with the plans approved by the City Engineer and the Conditions of Approval. All improvements shall meet the latest California Building Code, California Fire Code, Daly City Municip al Code, and the City St andards and Specifications.
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27. Provide “will serve letters” from the City ’s Water and Wastewater Department for water and sewer services and Pacific Gas and Electric Company (PG&E) for gas and electric services.
28. Concurrent with each demolition, grading and drainage permi t submittal or as a part of the Improvement Plan package, the Applicant shall prepare a dust control plan. The plan shall conform to the City St andards and comply with the requirements of the Bay Area Air Quality Man agement Dist rict (BAAQMD) Best Management Pra ctices for dust control.
The Applicant shall post a publicly visible sign with the telephone num ber and person to contact regarding dust complaints. The person shall respond and take corrective action within 48 hours.
29. The applicant and/or Contractor shall have a project sign with a 24- hour Project contact information for public concerns such as off -site tracking, dust control, noise complaints, ground shaking and any related const ruction activities. The complaints and responses shall be logged, and copies provided to the City Engineer with action status on a weekly basis.
30. Provide erosion and st orm water pollution plan incorporating best management practices, including operation and maintenance provisions per the requirements applicable at the time of construction permit application. During the wet/rainy season (October 1 to April 30) the developer shall submit a revised erosion control plan as necessary (every five working days) or as required by the City Engineer and/or his representative.
31. All improvements shall be installed, inspected and approved by the City Engineer prior to issuance of occupancy permits. In addition, as -built record plans of all improvements shall be submitted in a form acceptable to the C ity Engineer prior to issuance of occupa ncy permits.
32. All utility services shall be provided through underground connections. There shall be no overhead drops . Said improvements shall conform to Daly City and affected Agency’s standards.
33. All plans shall be accompanied by all required calculati ons and s tudies including geotechnical and impact st udies to just ify design signed and sealed by a licens ed professional engineer.
34. Grading and improvement plan review and approval by the City Engineer are required before any C ity permit is issued. The improvemen t plans shall includ e details for on -site and off -site improvements for vehicular and pedestrian access, parking, traffic signs and markings, utility service connections, modifications and extensions of the City’s sewer, storm drain, safety lighting, landscaping, and other public service facilities.
35. The applicant shall apply for a Site Improvement Perm it through the Engineering Division for construction of on- and off-site improvements. Securities for all improvements (on-site and off-site), and applicable fees and charges, shall be submitted with any building permits.
The applicant shall obtain all required permits before commencing work.
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36. Comply with the applicable requirements of the City’s General Con dition of Approval:
Variances, Design Reviews, Planned Developments and Subdivisions, dated December 8, 1999.
37. City records show a 48” subdrain runs through the project site. If the 48” subdrain is encountered during const ruction, all const ruction activity must stop and the subdrain shall be inspected and protected in place to the satisfaction of the Engineering Division.
38. Clearly depict and identify al l pr operty lines, parcel lines, easements, etc. on the plans (Legend with linetypes, labeling on the plans).
Site
39. Prior to Building Permit appro val the applican t shall enter into a Landscape Maintenance Agreement in a form acceptable to the City Attorney t o en sure the Property Owner will provide long-term maintenance of all street trees, landscaping, irrigation, and pedestrian- scale lighting installed in the public right-of-way. Design of planting and irrigation system shall minimize the extent of irrigation l ines, controllers, and valves in the public right -of- way and shall be reviewed and approved by the City Engineer.
40. The applicant shall rep air and/or replac e additional areas o f st reet pavement, sidewalk, curb, and gutter, street lights, manhole, catch basins, or any other public infrast ructure within the right -of-way damaged by const ruction activities associated with the project (utility installation, etc.) as required by the City Inspector during construction.
41. The limits of the curb gutter and sidewa lk replacement will span the entire frontage of the proposed development to the nearest expansion joints or score lines.
42. Any modifications to the development plan that affect Repub lic Services’ ability to access the property shall be reviewed and approved by Republic Services. \
43. Provide a current title report within the last six months for the project si te and all referenced documents. Include all referenced documents.
44. Parking st alls span across parcel lines and the proposed pro ject anticipates sharing of parking for multiple uses across multiple lots, such that each lot may not contain the parking requi red for the same buildings located within the same lot. The a pplicant shall cause an instrument, to the satisfaction of the City, to be recorded on all proje ct properties to ensure that parking is made available for all uses within the project limits, and such restriction shall remain for any su ccessors in the event that each legal lot is sold off individually or otherwise portions of the project site are under di fferent ownership. A lot line adjustment to merge all parcels together is preferred to carry out this condition.
45. Address City comment s on the Traffic Study, dated August 2022, and resubmit a revised traffic study. A Traffi c Study, approved by the Tra ffic Engineer, is required and shall be implemented for the project.
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46. Placement of any monument sig ns or other permanent fixtures shall be located out of the line of sight of motorists.
47. Install street trees along the project fron tage within the Public Rig ht of W ay. St reet tree spacing shall be per Daly City Standards and Details.
48. If there is to be a modification or replacement to the southe rn driveway along Saint Francis Blvd. the new driveway shall align with Campana Ave. and shall meet the City Standard driveway requirements outlined in Daly City Standard Detail S-3.
49. Clearly show pedest rian and bike accommodations to and from the site. In clude bike amenities (bike racks, pathway, etc.) for commercial space in front of the buildings within the project site as well as pathways within the project site and parking lot.
Grading
50. Grading exceeding 50 cubi c yards shall require approval of plans and a grading permit. A licensed Civil Eng ineer shall prepare the grading plans and erosion control plan in conformance with a soil report prepared by a licensed soil engineer or qualified civil engineer in complianc e with the NPDES requirements prior to a ny development on the property.
51. Grading pl ans shall be reviewed by an independent qu alified Consulting Engineer or Geologist as well as the City Engineer; a letter of compliance from the independent qualified Consul ting Engineer or Geologist shall be prov ided to Engineering pri or to the issuance of any permit. The Engineer and/or Geologis t, of record, shall be present on- site during the excavation and grading phases of the project and shall submit a written certification that the project civil plans has been implemented as approved.
52. The applicant s hall provide fail -safe conditions for cata strophic events such as 100 -year storms, seismic events, system overflows or failures. Drainage swales shall be provided at the to p, intermediate and bottom of slopes and embankments to prevent erosion and degradation of slopes. The project geotechnical re port shall include appropriate recommendations regarding the protection of existing and proposed slopes.
53. A Geotechnical Report sh all be prepared by a licensed geologist or soils engineer for any proposed retaining wall against the existing adjacent properties.
54. Curb ramps in and around the proje ct site shall utilize the case types in the Caltrans Standard Plans.
55. For on-site retaining walls, indicate if any tiebacks will be used on the project. Tiebacks are not allowed to encroach into the Ci ty’s right-of-way. Plans should include property li nes and adjacent utilities to identify any potential conflicts.
Storm Water / Utility
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56. Drainage from the site to a public st orm dra in syst em or st reet shall not flow over any sidewalk. On site drainage retent ion shall be provided to limit the flow rate entering t he City’s storm drain syst em to the pre -development rate. The retention facility sha ll accommodate the excess runoff from a st orm of 10- year frequency and two-hour duration as defined in the 1990 Daly City Design Standards.
57. Include impervious and pervi ous areas for the pre and post -development site conditions on the plans.
58. All stormwate r retention, treatment system or other C .3 or LID improvements shall be located outside of the public right-of-way and maintained by the property owner.
59. All storm water connections and extensions shall be underground.
60. All new roof drainage shall be treated before being directed toward the public storm drain system.
61. Install pedestrian scale streetlight on the southwest corner of Southgate Avenue/El Dorado Drive. St reetlight to be maintained by the applicant through a landscape maintenance agreement. Streetlight and luminaire models shall match those used on the Mission St reet Streetscape Project.
62. The project’s electrical transformers shall not be installed within public right-of-way.
63. Full trash capture devices approved by the City Engineer shall be installed on the drainage system.
C. DEPARTMENT OF WATER/WASTEWATER SERVICES
64. All cost s associated with any water syst em improvements required by the City, shall be borne by the applicant.
65. All costs associated with any sewer syst em improv ements requir ed by the City, shall be borne by the applicant.
66. Landscaping: There are several conflicts with the planting schedule and the buried utilities.
All water and sewer infrast ructure shall remain out of the drip line of the trees when they are fully grown. Only low plantings, ground c over, that does not screen the infrast ructure, shall be permitted.
67. Water Services : Each water service to the project shall incorporate a mast er meter. Th e master meter shall be located in the ROW . Each water service to the project shall incorporate a RP type back flow devic e immediately after the master meter. The RP shall be located in p rivate property . All water servi ces within the private water syst em shall incorporate RP type back flow devices. Private fire services require an RPDA . Private domestic and irrigation systems require an RP.
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68. Garbage Enclosures. All external garbage enclosures shall have:
i. Solid walls and gate
ii. A roof
iii. A floor sloped to prevent run on of storm water and run off of effluent iv. A drain to the sewer for wash down
v. A clean out 18 to 24 inches outside the structure
FIRE DEPARTMENT
69. A Fire sprinkler syst em is r equired for new buildings. Submit plans to NCFA under separate fire permit.
70. For remodels or additional square footage – Sprinklers are required for existing building when the alteration, addit ion, or repair exceeds 50% of the building gross original are a within any 5-year period.
71. Trash enclosures shall be provided with fire sprinkler protection, per DCMC.
72. Applicant shall provide fire flow information per CFC, Appendix B.
73. Fire extinguishin g/hood syst em required. Applicant shall s ubmit plans to NCFA under separate fire permit.
74. A Monitored fire alarm syst em is required. Applicant shall submit plans to NCFA under separate fire permit.
75. Knox Box is required for new/remodeled buildings. Ap plicant shall a pply for approved hardware at NCFA Administration.
76. Portable fire extinguishers(s) are require d. Appl icant shall m ount fire extinguishers 3 -5 feet above floor.
77. Illuminated address identification is required.
STAFF RECOMMENDATION
Staff recommends the Design Review Committe e approve Design R eview DR--01-22-015499 subject to the findings and conditions in this report.
Respectfully submitted,
Sam Fielding Tatum Mothershead
Associate Planner Director of Economic and
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Community Development
Attachments
Attachment A – Site Location
Attachment B – Project Plans
Attachment C – Traffic Study
CITY OF DALY CITY INTER-OFFICE MEMORANDUM
DATE: March 1, 2023
TO:See Below
FROM:Charlie Machado-Morrow, City Manager's Office
SUBJECT: MEETING NOTICE
RE: Affordable Housing Committee Meeting
DATE: March 6, 2023
TIME:6:00pm
PLACE:Zoom
ATTENDING:
City Participants: Other Participants:
Juslyn Manalo, Vice Mayor
Glenn R. Sylvester, Councilmember
Thomas J. Piccolotti, City Manager
Rose Zimmerman, City Attorney
Tatum Mothershead, Director of ECD
Betsy Zobell
Lenelle Suliguin
cc: City Council
1 DALY CITY INTER-OFFICE MEMORANDUM
DATE: March 6, 2023
TO: Affordable Housing Committee
Mayor Juslyn C. Manalo and Councilmember Glenn Sylvester
FROM: Betsy ZoBell, Housing and Community Development Supervisor
CC: Thomas J. Piccolotti, City Manager
Rose Zimmerman, City Attorney
Tatum Mothershead, Director Economic and Community Development Betsy ZoBell, Housing and Community Development Manager Lenelle D. Suliguin, Senior Management Analyst
SUBJECT: Welfare Property Tax Exemption/ Inquiry from Housing Developers
BACKGROUND
Adopted by voters as a constitutional amendment in 1944, California’s Welfare Tax Exemption grants the California Legislature the authority to exempt eligible properties from property taxes.
In a market like California, this can generate substantial financial savings to property owners.
Among the property types eligible for this exemption is housing for low-income households. In instances where the property is owned and operated by a nonprofit organization, a property is eligible under the following circumstances:
The property use is restricted to low-income housing by a regulatory agreement, recorded deed restriction, or other legal document. A minimum of 51 percent of the residential units must be restricted to households with incomes at or below 80 percent of the area median. Rents for these units may not exceed the amount affordable to households with incomes at or below 80 percent of the area median.
The funds that would have been necessary to pay property taxes are used to maintain the affordability of the housing or to reduce the rents for the units occupied by lower income households, defined by HUD as households earning below 80% of the Area Median Income (AMI).
A public subsidy of at least $5,000 is provided by a City or regional agency
Over the last several months, staff have been contacted by developers seeking to acquire existing multi-family rental properties in Daly City. These developers have inquired about City assistance in providing the regulation necessary to achieve the Welfare Tax Exemption (WTE).
COSTS AND BENEFITS OF THE WELFARE TAX EXEMPTION IN DALY CITY
2 1. Loss of General Fund Revenue
Properties that receive the WTE do not pay property taxes on any units whose tenants have a household income that is 80 percent of the area median income or less. Although the recorded deed restriction only requires that 51 percent of the units are deed restricted to 80 percent AMI or below with rents affordable at that level, the owner may claim the WTE for any unit where the tenants have incomes at 80 percent AMI or below and the rent is set at 80 percent AMI levels; even though the regulatory restrictions may only restrict 51% of the units.
The City will lose General Fund revenue for properties that receive a WTE. As an example, a 50-unit apartment complex currently paying $300,000 in total property taxes, would see a reduction of $150,000 in total property tax payments. Since Daly City receives 16 percent of total property taxes collected, implementation of the WTE would result in the annual loss of approximately $48,000 in General Fund Revenue1.
2. Production of New Affordable Housing Units in Daly City
The WTE rules require property owners to restrict rents on at least 51 percent of units to a level affordable to households with incomes at or below 80 percent AMI. Based on a survey of rents presented on the websites of larger apartment complexes in Daly City, it appears that rents currently available in the Daly City marketplace are already affordable to households with incomes at 80 percent AMI2. In other words, the 80 percent AMI deed restriction required under the WTE would not necessarily result in production of additional affordable units for lower income households.
It has been suggested that while today rents targeted at 80 percent of the San Francisco HUD Metro Area Median Family income are essentially market rate in Daly City, over time Daly City rents could increase faster than calculated affordable rents. Under this scenario, in the future, the WTE could result in a future benefit by providing restricted rents (in the future) that are truly lower than what is available in the market-place. An analysis of published rent limits and Daly City market rate rents over the last 20 years does not support a prediction that a WTE restrictions executed today will necessarily result in below market rents in the future.
1 Bedroom 2-Bedroom
Westlake Apartments $2,132-$3,295 $2,022-$3,400
Serramonte Ridge $2,725-$2,755 $3,045
Restricted Rent at 80% AMI $2,797 $3,356
1 This calculation does not include increases in assessed value that might occur when a property transfers. Such increases could be great enough that even with the Welfare Property Tax exemption, the net amount of property tax generated to Daly City would increase.
2 A comprehensive market study of Daly City rents could be carried out to confirm statistically valid median rents.
3 3. Preservation of Existing Affordable Housing Stock
It is not clear that the WTE would preserve existing affordable housing stock in Daly City.
Affordable housing that actually meets the needs of lower income households in Daly City is housing with rents that are affordable to households with incomes at 80 percent of the Daly City Median income. The WTE only requires that owners restrict rents to 80 percent of the San Francisco HUD Metro Area. As shown in the following Table, the Daly City Median income, is significantly lower than the average for the San Francisco HUD Metro Area, of which Daly City is a part.
To the extent that a Daly City property offered rents affordable at 80 percent of Daly City’s median income, an owner using the WTE would have no obligation to preserve the rents of those tenants with incomes significantly below 80 percent of median and could immediately raise rents by an amount equivalent to the State maximum (currently 11.4 % annually) until they reached the level affordable to households at 80 percent of the San Francisco HUD Metro Area Median Family income. Currently, rents affordable at 80 percent of the San Francisco HUD Metro Area Median Family income are 66 percent higher than rents affordable to households with incomes at 80% the Daly City Median Income. In other words, households with incomes at 80 percent of the San Francisco HUD Metro Area median would count towards the “low income households” required to claim the WTE even though those households could have incomes are 66 percent higher than what is actually “low-income” in Daly City.
Since the WTE requirements would not require owners to preserve the rents on naturally occurring affordable rental units, it is difficult to conclude that this program is an effective tool for preserving affordable housing in Daly City.
Jurisdiction Median Household Income Rent Affordable at 80% AMI (One Bedroom)
San Francisco HUD Metro
Area Median Family Income
$166,000 $2,797
Daly City Median Family
Income
$ 99,910 $1,683
4. Protections for Existing tenants, particularly low-income tenants
The WTE does not require a property owner to provide any protections for existing residents who might currently be rent-burdened3. For example, an owner with a WTE could continue to charge rents that exceed a household’s ability to pay. The WTE does not place any limits, beyond those defined in State Law, on annual rent increases. Under today’s economic
3 “rent burdened” is defined as paying more than 30% of gross household income for housing costs
4 conditions, a property owner could increase rents up to 11.4 % 4 on all units (both deed restricted and market rate) annually.
BAY AREA HOUSING FINANCE AGENCY WELFARE TAX EXEMPTION
PROGRAM
The Bay Area Housing Finance Authority (BAHFA) is a shared initiative of ABAG and the Metropolitan Transportation Commission, in partnership with cities and counties, to step up efforts to address the Bay Area’s chronic housing affordability challenges.
BAHFA was established by AB 1487 (2019, Chiu) and seeks to offer a powerful new set of financing and policy tools to promote housing affordability and address the region’s housing crisis.
BAHFA offers a WTE program under which they provide a small subsidy payment in exchange for a regulatory agreement with the developer that meets the requirement for the WTE.
Attached is a summary term sheet for the BAHFA’s program. In late 2022, BAFTA contacted the City to discuss the City’s opinion on a prospective BAFTA-sponsored WTE project in Daly City. At that time, staff indicated that the City does not have a formal policy on such projects.
BAHFA ultimately did not proceed with the proposed project citing a variety of reasons. In discussions with staff, BAHFA expressed a desire to pursue projects that are in alignment with Daly City policy and objectives.
Generally, staff concurs with BAHFA’s program, but would recommend two additional requirements of developers:
Decrease the rents to a maximum of 30 percent of gross household income for all rent-burdened tenants with incomes less than or equal to 80 percent AMI Provide relocation assistance to all tenants temporarily displaced due to building rehabilitation.
CONCLUSION
On its own, the WTE program does not appear to offer significant public benefit to lower income renters in Daly City and staff recommends that City adhere to a policy of not offering stand- alone WTE deed restrictions. For developments that include housing units that are truly below market (60 percent AMI and below), there is generally some form of public financing involved and deed restrictions that meet the requirements of the WTE law would be in place as a result of the public financing.
Since BAHFA already offers a WTE Program, staff recommends that such requests from developers seeking to acquire buildings in Daly City be referred to BAHFA. Since BAHFA has indicated their preference to limit use of their WTE program to projects that align with the City objectives, staff further recommends that BAHFA be urged to amend their program in Daly City
4 Assumes CPI of 6.4% January 2022 through January 2023.
5 such that (1) rent relief is offered to lower income rent-burdened tenants and (2) relocation assistance is offered to tenants displaced due to building rehabilitation.
For projects where the owner intends to create or protect affordable housing with income targeting significantly below market (e.g. 60 percent AMI), staff recommends that the City provide the WTE regulation with terms similar to those typically included in Daly City affordable housing financings (e.g. 55 year term, limits on rent increases, etc.).
1 DALY CITY INTER-OFFICE MEMORANDUM
DATE: March 6, 2023
TO: Affordable Housing Committee
Mayor Juslyn C. Manalo and Councilmember Glenn Sylvester
FROM: Betsy ZoBell, Housing and Community Development Supervisor
CC: Thomas J. Piccolotti, City Manager
Rose Zimmerman, City Attorney
Tatum Mothershead, Director Economic and Community Development Betsy ZoBell, Housing and Community Development Manager Lenelle D. Suliguin, Senior Management Analyst
SUBJECT: Welfare Property Tax Exemption/ Inquiry from Housing Developers
BACKGROUND
Adopted by voters as a constitutional amendment in 1944, California’s Welfare Tax Exemption grants the California Legislature the authority to exempt eligible properties from property taxes.
In a market like California, this can generate substantial financial savings to property owners.
Among the property types eligible for this exemption is housing for low-income households. In instances where the property is owned and operated by a nonprofit organization, a property is eligible under the following circumstances:
The property use is restricted to low-income housing by a regulatory agreement, recorded deed restriction, or other legal document. A minimum of 51 percent of the residential units must be restricted to households with incomes at or below 80 percent of the area median. Rents for these units may not exceed the amount affordable to households with incomes at or below 80 percent of the area median.
The funds that would have been necessary to pay property taxes are used to maintain the affordability of the housing or to reduce the rents for the units occupied by lower income households, defined by HUD as households earning below 80% of the Area Median Income (AMI).
A public subsidy of at least $5,000 is provided by a City or regional agency
Over the last several months, staff have been contacted by developers seeking to acquire existing multi-family rental properties in Daly City. These developers have inquired about City assistance in providing the regulation necessary to achieve the Welfare Tax Exemption (WTE).
COSTS AND BENEFITS OF THE WELFARE TAX EXEMPTION IN DALY CITY
2 1. Loss of General Fund Revenue
Properties that receive the WTE do not pay property taxes on any units whose tenants have a household income that is 80 percent of the area median income or less. Although the recorded deed restriction only requires that 51 percent of the units are deed restricted to 80 percent AMI or below with rents affordable at that level, the owner may claim the WTE for any unit where the tenants have incomes at 80 percent AMI or below and the rent is set at 80 percent AMI levels; even though the regulatory restrictions may only restrict 51% of the units.
The City will lose General Fund revenue for properties that receive a WTE. As an example, a 50-unit apartment complex currently paying $300,000 in total property taxes, would see a reduction of $150,000 in total property tax payments. Since Daly City receives 16 percent of total property taxes collected, implementation of the WTE would result in the annual loss of approximately $48,000 in General Fund Revenue1.
2. Production of New Affordable Housing Units in Daly City
The WTE rules require property owners to restrict rents on at least 51 percent of units to a level affordable to households with incomes at or below 80 percent AMI. Based on a survey of rents presented on the websites of larger apartment complexes in Daly City, it appears that rents currently available in the Daly City marketplace are already affordable to households with incomes at 80 percent AMI2. In other words, the 80 percent AMI deed restriction required under the WTE would not necessarily result in production of additional affordable units for lower income households.
It has been suggested that while today rents targeted at 80 percent of the San Francisco HUD Metro Area Median Family income are essentially market rate in Daly City, over time Daly City rents could increase faster than calculated affordable rents. Under this scenario, in the future, the WTE could result in a future benefit by providing restricted rents (in the future) that are truly lower than what is available in the market-place. An analysis of published rent limits and Daly City market rate rents over the last 20 years does not support a prediction that a WTE restrictions executed today will necessarily result in below market rents in the future.
1 Bedroom 2-Bedroom
Westlake Apartments $2,132-$3,295 $2,022-$3,400
Serramonte Ridge $2,725-$2,755 $3,045
Restricted Rent at 80% AMI $2,797 $3,356
1 This calculation does not include increases in assessed value that might occur when a property transfers. Such increases could be great enough that even with the Welfare Property Tax exemption, the net amount of property tax generated to Daly City would increase.
2 A comprehensive market study of Daly City rents could be carried out to confirm statistically valid median rents.
3 3. Preservation of Existing Affordable Housing Stock
It is not clear that the WTE would preserve existing affordable housing stock in Daly City.
Affordable housing that actually meets the needs of lower income households in Daly City is housing with rents that are affordable to households with incomes at 80 percent of the Daly City Median income. The WTE only requires that owners restrict rents to 80 percent of the San Francisco HUD Metro Area. As shown in the following Table, the Daly City Median income, is significantly lower than the average for the San Francisco HUD Metro Area, of which Daly City is a part.
To the extent that a Daly City property offered rents affordable at 80 percent of Daly City’s median income, an owner using the WTE would have no obligation to preserve the rents of those tenants with incomes significantly below 80 percent of median and could immediately raise rents by an amount equivalent to the State maximum (currently 11.4 % annually) until they reached the level affordable to households at 80 percent of the San Francisco HUD Metro Area Median Family income. Currently, rents affordable at 80 percent of the San Francisco HUD Metro Area Median Family income are 66 percent higher than rents affordable to households with incomes at 80% the Daly City Median Income. In other words, households with incomes at 80 percent of the San Francisco HUD Metro Area median would count towards the “low income households” required to claim the WTE even though those households could have incomes are 66 percent higher than what is actually “low-income” in Daly City.
Since the WTE requirements would not require owners to preserve the rents on naturally occurring affordable rental units, it is difficult to conclude that this program is an effective tool for preserving affordable housing in Daly City.
Jurisdiction Median Household Income Rent Affordable at 80% AMI (One Bedroom)
San Francisco HUD Metro
Area Median Family Income
$166,000 $2,797
Daly City Median Family
Income
$ 99,910 $1,683
4. Protections for Existing tenants, particularly low-income tenants
The WTE does not require a property owner to provide any protections for existing residents who might currently be rent-burdened3. For example, an owner with a WTE could continue to charge rents that exceed a household’s ability to pay. The WTE does not place any limits, beyond those defined in State Law, on annual rent increases. Under today’s economic
3 “rent burdened” is defined as paying more than 30% of gross household income for housing costs
4 conditions, a property owner could increase rents up to 11.4 % 4 on all units (both deed restricted and market rate) annually.
BAY AREA HOUSING FINANCE AGENCY WELFARE TAX EXEMPTION
PROGRAM
The Bay Area Housing Finance Authority (BAHFA) is a shared initiative of ABAG and the Metropolitan Transportation Commission, in partnership with cities and counties, to step up efforts to address the Bay Area’s chronic housing affordability challenges.
BAHFA was established by AB 1487 (2019, Chiu) and seeks to offer a powerful new set of financing and policy tools to promote housing affordability and address the region’s housing crisis.
BAHFA offers a WTE program under which they provide a small subsidy payment in exchange for a regulatory agreement with the developer that meets the requirement for the WTE.
Attached is a summary term sheet for the BAHFA’s program. In late 2022, BAFTA contacted the City to discuss the City’s opinion on a prospective BAFTA-sponsored WTE project in Daly City. At that time, staff indicated that the City does not have a formal policy on such projects.
BAHFA ultimately did not proceed with the proposed project citing a variety of reasons. In discussions with staff, BAHFA expressed a desire to pursue projects that are in alignment with Daly City policy and objectives.
Generally, staff concurs with BAHFA’s program, but would recommend two additional requirements of developers:
Decrease the rents to a maximum of 30 percent of gross household income for all rent-burdened tenants with incomes less than or equal to 80 percent AMI Provide relocation assistance to all tenants temporarily displaced due to building rehabilitation.
CONCLUSION
On its own, the WTE program does not appear to offer significant public benefit to lower income renters in Daly City and staff recommends that City adhere to a policy of not offering stand- alone WTE deed restrictions. For developments that include housing units that are truly below market (60 percent AMI and below), there is generally some form of public financing involved and deed restrictions that meet the requirements of the WTE law would be in place as a result of the public financing.
Since BAHFA already offers a WTE Program, staff recommends that such requests from developers seeking to acquire buildings in Daly City be referred to BAHFA. Since BAHFA has indicated their preference to limit use of their WTE program to projects that align with the City objectives, staff further recommends that BAHFA be urged to amend their program in Daly City
4 Assumes CPI of 6.4% January 2022 through January 2023.
5 such that (1) rent relief is offered to lower income rent-burdened tenants and (2) relocation assistance is offered to tenants displaced due to building rehabilitation.
For projects where the owner intends to create or protect affordable housing with income targeting significantly below market (e.g. 60 percent AMI), staff recommends that the City provide the WTE regulation with terms similar to those typically included in Daly City affordable housing financings (e.g. 55 year term, limits on rent increases, etc.).
1 DALY CITY INTER-OFFICE MEMORANDUM
DATE: March 6, 2023
TO: Affordable Housing Committee
Mayor Juslyn C. Manalo and Councilmember Glenn Sylvester
FROM: Betsy ZoBell, Housing and Community Development Supervisor
CC: Thomas J. Piccolotti, City Manager
Rose Zimmerman, City Attorney
Tatum Mothershead, Director Economic and Community Development Betsy ZoBell, Housing and Community Development Manager Lenelle D. Suliguin, Senior Management Analyst
SUBJECT: Welfare Property Tax Exemption/ Inquiry from Housing Developers
BACKGROUND
Adopted by voters as a constitutional amendment in 1944, California’s Welfare Tax Exemption grants the California Legislature the authority to exempt eligible properties from property taxes.
In a market like California, this can generate substantial financial savings to property owners.
Among the property types eligible for this exemption is housing for low-income households. In instances where the property is owned and operated by a nonprofit organization, a property is eligible under the following circumstances:
The property use is restricted to low-income housing by a regulatory agreement, recorded deed restriction, or other legal document. A minimum of 51 percent of the residential units must be restricted to households with incomes at or below 80 percent of the area median. Rents for these units may not exceed the amount affordable to households with incomes at or below 80 percent of the area median.
The funds that would have been necessary to pay property taxes are used to maintain the affordability of the housing or to reduce the rents for the units occupied by lower income households, defined by HUD as households earning below 80% of the Area Median Income (AMI).
A public subsidy of at least $5,000 is provided by a City or regional agency
Over the last several months, staff have been contacted by developers seeking to acquire existing multi-family rental properties in Daly City. These developers have inquired about City assistance in providing the regulation necessary to achieve the Welfare Tax Exemption (WTE).
COSTS AND BENEFITS OF THE WELFARE TAX EXEMPTION IN DALY CITY
2 1. Loss of General Fund Revenue
Properties that receive the WTE do not pay property taxes on any units whose tenants have a household income that is 80 percent of the area median income or less. Although the recorded deed restriction only requires that 51 percent of the units are deed restricted to 80 percent AMI or below with rents affordable at that level, the owner may claim the WTE for any unit where the tenants have incomes at 80 percent AMI or below and the rent is set at 80 percent AMI levels; even though the regulatory restrictions may only restrict 51% of the units.
The City will lose General Fund revenue for properties that receive a WTE. As an example, a 50-unit apartment complex currently paying $300,000 in total property taxes, would see a reduction of $150,000 in total property tax payments. Since Daly City receives 16 percent of total property taxes collected, implementation of the WTE would result in the annual loss of approximately $48,000 in General Fund Revenue1.
2. Production of New Affordable Housing Units in Daly City
The WTE rules require property owners to restrict rents on at least 51 percent of units to a level affordable to households with incomes at or below 80 percent AMI. Based on a survey of rents presented on the websites of larger apartment complexes in Daly City, it appears that rents currently available in the Daly City marketplace are already affordable to households with incomes at 80 percent AMI2. In other words, the 80 percent AMI deed restriction required under the WTE would not necessarily result in production of additional affordable units for lower income households.
It has been suggested that while today rents targeted at 80 percent of the San Francisco HUD Metro Area Median Family income are essentially market rate in Daly City, over time Daly City rents could increase faster than calculated affordable rents. Under this scenario, in the future, the WTE could result in a future benefit by providing restricted rents (in the future) that are truly lower than what is available in the market-place. An analysis of published rent limits and Daly City market rate rents over the last 20 years does not support a prediction that a WTE restrictions executed today will necessarily result in below market rents in the future.
1 Bedroom 2-Bedroom
Westlake Apartments $2,132-$3,295 $2,022-$3,400
Serramonte Ridge $2,725-$2,755 $3,045
Restricted Rent at 80% AMI $2,797 $3,356
1 This calculation does not include increases in assessed value that might occur when a property transfers. Such increases could be great enough that even with the Welfare Property Tax exemption, the net amount of property tax generated to Daly City would increase.
2 A comprehensive market study of Daly City rents could be carried out to confirm statistically valid median rents.
3 3. Preservation of Existing Affordable Housing Stock
It is not clear that the WTE would preserve existing affordable housing stock in Daly City.
Affordable housing that actually meets the needs of lower income households in Daly City is housing with rents that are affordable to households with incomes at 80 percent of the Daly City Median income. The WTE only requires that owners restrict rents to 80 percent of the San Francisco HUD Metro Area. As shown in the following Table, the Daly City Median income, is significantly lower than the average for the San Francisco HUD Metro Area, of which Daly City is a part.
To the extent that a Daly City property offered rents affordable at 80 percent of Daly City’s median income, an owner using the WTE would have no obligation to preserve the rents of those tenants with incomes significantly below 80 percent of median and could immediately raise rents by an amount equivalent to the State maximum (currently 11.4 % annually) until they reached the level affordable to households at 80 percent of the San Francisco HUD Metro Area Median Family income. Currently, rents affordable at 80 percent of the San Francisco HUD Metro Area Median Family income are 66 percent higher than rents affordable to households with incomes at 80% the Daly City Median Income. In other words, households with incomes at 80 percent of the San Francisco HUD Metro Area median would count towards the “low income households” required to claim the WTE even though those households could have incomes are 66 percent higher than what is actually “low-income” in Daly City.
Since the WTE requirements would not require owners to preserve the rents on naturally occurring affordable rental units, it is difficult to conclude that this program is an effective tool for preserving affordable housing in Daly City.
Jurisdiction Median Household Income Rent Affordable at 80% AMI (One Bedroom)
San Francisco HUD Metro
Area Median Family Income
$166,000 $2,797
Daly City Median Family
Income
$ 99,910 $1,683
4. Protections for Existing tenants, particularly low-income tenants
The WTE does not require a property owner to provide any protections for existing residents who might currently be rent-burdened3. For example, an owner with a WTE could continue to charge rents that exceed a household’s ability to pay. The WTE does not place any limits, beyond those defined in State Law, on annual rent increases. Under today’s economic
3 “rent burdened” is defined as paying more than 30% of gross household income for housing costs
4 conditions, a property owner could increase rents up to 11.4 % 4 on all units (both deed restricted and market rate) annually.
BAY AREA HOUSING FINANCE AGENCY WELFARE TAX EXEMPTION
PROGRAM
The Bay Area Housing Finance Authority (BAHFA) is a shared initiative of ABAG and the Metropolitan Transportation Commission, in partnership with cities and counties, to step up efforts to address the Bay Area’s chronic housing affordability challenges.
BAHFA was established by AB 1487 (2019, Chiu) and seeks to offer a powerful new set of financing and policy tools to promote housing affordability and address the region’s housing crisis.
BAHFA offers a WTE program under which they provide a small subsidy payment in exchange for a regulatory agreement with the developer that meets the requirement for the WTE.
Attached is a summary term sheet for the BAHFA’s program. In late 2022, BAFTA contacted the City to discuss the City’s opinion on a prospective BAFTA-sponsored WTE project in Daly City. At that time, staff indicated that the City does not have a formal policy on such projects.
BAHFA ultimately did not proceed with the proposed project citing a variety of reasons. In discussions with staff, BAHFA expressed a desire to pursue projects that are in alignment with Daly City policy and objectives.
Generally, staff concurs with BAHFA’s program, but would recommend two additional requirements of developers:
Decrease the rents to a maximum of 30 percent of gross household income for all rent-burdened tenants with incomes less than or equal to 80 percent AMI Provide relocation assistance to all tenants temporarily displaced due to building rehabilitation.
CONCLUSION
On its own, the WTE program does not appear to offer significant public benefit to lower income renters in Daly City and staff recommends that City adhere to a policy of not offering stand- alone WTE deed restrictions. For developments that include housing units that are truly below market (60 percent AMI and below), there is generally some form of public financing involved and deed restrictions that meet the requirements of the WTE law would be in place as a result of the public financing.
Since BAHFA already offers a WTE Program, staff recommends that such requests from developers seeking to acquire buildings in Daly City be referred to BAHFA. Since BAHFA has indicated their preference to limit use of their WTE program to projects that align with the City objectives, staff further recommends that BAHFA be urged to amend their program in Daly City
4 Assumes CPI of 6.4% January 2022 through January 2023.
5 such that (1) rent relief is offered to lower income rent-burdened tenants and (2) relocation assistance is offered to tenants displaced due to building rehabilitation.
For projects where the owner intends to create or protect affordable housing with income targeting significantly below market (e.g. 60 percent AMI), staff recommends that the City provide the WTE regulation with terms similar to those typically included in Daly City affordable housing financings (e.g. 55 year term, limits on rent increases, etc.).
BAY AREA HOUSING FINANCE AUTHORITY
Welfare Tax Exemption Preservation Term Sheet
Multifamily Rental Properties
Program
Description
BAHFA assists mission-driven developers to preserve existing mixed-income, multifamily housing by providing the public sector regulation necessary to achieve the “welfare exemption” defined in California Revenue and Taxation Code (R&T) Section 214(g). BAHFA assistance includes:
1) A grant of the minimum amount the California Board of Equalization (BOE) will accept to meet the local financing provision of R&T Section 214(g)(A) (currently $5,000)
2) A recorded deed restriction on the property that continuously limits occupancy of designated units to Lower Income households (see R&T Section 214(g)(2)(A)(ii).
The Program’s goal is to prevent displacement of low-income households, to create a permanently affordable housing stock that provides safe, decent, stable residencies for working households, and to promote neighborhood vitality.
Eligible
Applicants
Affordable housing development teams that:
1) Meet the ownership requirements of R&T Section 214(g)(1); and 2) Have a demonstrated track record of successfully developing, owning and operating comparable projects.
Eligible
Projects
Occupied, unrestricted buildings with 4 or more legal dwelling units. 1) Mixed-use buildings are eligible so long as the majority of the building square footage is used for residential uses.
2) Applicants must demonstrate that the proposed welfare-exempt rent restrictions provide a discount to market-rate rents of at least 10% or, in the alternative and subject to the approval of BAHFA, other economic conditions that justify imposition of the welfare exemption.
BAY AREA HOUSING FINANCE AUTHORITY
Welfare Tax Exemption Preservation Term Sheet
Multifamily Rental Properties
Term and
Regulatory
Restrictions
Regulatory Term: 55 years. BAHFA will consider shorter regulatory periods if the Applicant demonstrates that a shorter term remains compatible with 1) permanent affordability and 2) a prohibition on displacement. For example, Applicants may plan to refinance the property with tax credit equity or other public sources that would provide new regulatory controls that supersede BAHFA’s restrictions.
Lien Priority: BAHFA requires first lien priority for its occupancy deed restriction. In its sole discretion, BAHFA will consider subordination of its restriction if Applicant demonstrates the necessity of subordination to secure financing and if such subordination is consistent with the goal of creating permanent affordable housing.
Displacement: Notwithstanding the imposition of income restrictions, no existing resident in the Project shall be displaced because of the preservation action or by Applicant’s imposition of any new, discretionary “house rules”.
1) Eligibility for the welfare exemption may be full or partial at acquisition, with additional units converting to welfare exempt over time through unit turnover.
2) For units subject to local “just cause” eviction ordinances, Applicants shall continue to comply with the just cause ordinance rules after acquisition.
3) All Applicants must comply with the Tenant Protection Act of 2019, Civil Code Sec. 1946.2 et seq. (AB 1482, Chiu) provisions regarding protections of tenants from tenancy terminations without just cause.
Temporary Relocation: If Applicant must temporarily relocate tenants for the purpose of safely conducting a Project rehabilitation, the following requirements apply:
1) Temporary relocation shall not exceed 90 days unless approved by BAHFA. Permanent relocation is prohibited.
2) Applicants shall provide temporary housing that is decent, safe, sanitary and of comparable size to the relocated tenant’s dwelling unit.
3) Tenants shall continue to pay the rent for their original unit, but shall bear no costs related to relocation, including:
a. Moving and packing expenses
b. Any costs associated with the relocation dwelling that exceed their typical housing expenses (rent, utilities, other charges)
BAY AREA HOUSING FINANCE AUTHORITY
Welfare Tax Exemption Preservation Term Sheet
Multifamily Rental Properties
4) Notwithstanding the relocation requirements listed above, if Applicant conducts a substantial rehabilitation project funded with low-income housing tax credits or a similar program that ensures permanent affordability and extends the useful life of the building, BAHFA will subordinate its relocation requirements to the relocation requirements of the permanent rehabilitation affordable funding source.
Rent Setting:
1) Existing Tenants: Upon acquisition, rents for all existing residents shall remain unchanged until the anniversary of the tenant’s initial leasing.
a. For units subject to local rent stabilization ordinances, Applicants shall continue to comply with the rent stabilization ordinance when imposing rent increases after acquisition. b. For units not subject to or exempt from rent stabilization requirements, annual rent increases shall be limited to the lesser of the annual increase in area median income (AMI) or 4%.
c. For existing residents earning less than or equal to 80% AMI and who pay more than 30% of gross household income for rent, Applicant shall decrease those households’ rents to a maximum of 30% of gross annual income upon approval of
the Applicant’s welfare tax exemption application by the local assessor’s office, assuming Project income is sufficient to allow a rent decrease for such households while covering necessary and standard Project operating expenses.
2) New Tenants (filling existing vacancies or newly vacated units in welfare exempt designated units):
a. Tenant household income must be certified as meeting welfare exemption requirements prior to lease execution b. Rents for welfare exempt designated units shall not exceed 30% of 80% of AMI, adjusted for household size.
BAY AREA HOUSING FINANCE AUTHORITY
Welfare Tax Exemption Preservation Term Sheet
Multifamily Rental Properties
Submission
Requirements
Applicants must submit the following documents for BAHFA review:
1) Project proposal and acquisition due diligence documents, including but not limited to:
a. Purchase and Sale Agreement
b. As-is, current appraisal
c. Independent, third-party physical needs assessment
d. Environmental review documents (e.g., Phase 1 and, as applicable, Phase 2, lead and asbestos survey, etc.)
e. Preliminary Title Report
f. Rent roll
2) Project financing documents, including:
a. Sources & Uses budget
b. Rehabilitation scope
c. Operating budget
d. 20-year cash flow
3) Development Team Documents, including:
a. Applicant’s current audited financials; organizational chart; board of directors roster
b. As applicable, description of Project architect; general contractor; and property manager
Compliance Fair Housing and Rehabilitation: The Applicant must comply with all applicable Federal, State, and local laws, orders, and regulations prohibiting housing discrimination as well as all applicable laws and regulations governing construction, rehabilitation, and building operations.
Welfare Exemption: Applicant is solely responsible for and must annually secure the welfare exemption from the applicable governing bodies.
Applicant shall provide evidence of the welfare exemption to BAHFA annually, as well as any other Project-related information BAHFA reasonably requests.
Contact Kate Hartley
Director
Bay Area Housing Finance Authority
[email protected]
1 DALY CITY INTER-OFFICE MEMORANDUM
DATE: March 6, 2023
TO: Affordable Housing Committee
Vice Mayor Juslyn C. Manalo and Councilmember Glenn Sylvester
FROM: Betsy ZoBell, Housing and Community Development Supervisor
CC: Thomas J. Piccolotti, City Manager
Rose Zimmerman, City Attorney
Tatum Mothershead, Director Economic and Community Development Betsy ZoBell, Housing and Community Development Manager Lenelle D. Suliguin, Senior Management Analyst
SUBJECT: Inclusionary Housing Ordinance Review
BACKGROUND
Since the 1990s the City has required that developers of new housing provide a portion of the units at affordable housing cost or make a financial contribution to the City’s Housing Trust fund for the purpose of new affordable housing development. Initially, the requirement was restricted to new housing development in the City’s redevelopment project areas. In 2007 the City adopted its first citywide Inclusionary Housing Ordinance. This ordinance was repealed and replaced two times and ultimately resulted in the City’s Inclusionary Housing Ordinance (Chapter 17.47 of the Daly City Municipal Code) that is in effect today.
The City’s current Inclusionary Housing ordinance requires that new market rate ownership developments make a minimum of 20 percent of the units affordable to households at or below 120 percent of the area median. Rental housing developments are required to make a minimum of 10 percent of units affordable to households with incomes at or below 80 percent of the area median. In lieu fees may be paid as an alternative to providing affordable rental units. The specific in lieu fee prices were adopted by the City Council in 2018 as Resolution 18-174
The purpose of this memo is to provide a summary of affordable housing resources that the various inclusionary housing policies and ordinances have created for Daly City and to initiate a discussion on potential updates to the City’s Inclusionary Housing Ordinance.
SUMMARY OF AFFORDABLE HOUSING PRODUCTION AND HOUSING TRUST FUND REVENUE RAISED THROUGH INCLUSIONARY HOUSING ORDINANCES.
The City’s various Inclusionary Housing Ordinances have resulted in the production of 75 below market rate units and deposits of $5.6 million to the City’s Affordable Housing Trust Fund.
Affordable Housing Production
2 Since 2011 the City’s Affordable Housing policies and ordinances have resulted in the production of 76 affordable housing units of which 31 are ownership and 44 are rental. These are summarized in Attachment A.
Attachment B shows the Current Residential Project List prepared by the Planning department.
The Housing Division has added the last column to provide information on a project’s compliance with the Inclusionary Housing Ordinance.
Housing Trust Fund Deposits
Since 2015 the City’s Affordable Housing policies and ordinances have generated a total of $5.6 million to the City’s Affordable Housing Trust Fund. Attachment A shows the specific developments that have made impact or in lieu fee payments to the City.
Use of Housing Trust Fund
A total of $809,000 in Housing Trust Fund resources were utilized to subsidize the development of 6 townhouses by Habitat for Humanity Greater San Francisco. These homes were sold to households with incomes at or below 80 percent of the area median.
In addition to the Habitat units, $1.3 million of Daly City Housing Trust funds have been committed to Core Companies 72-unit apartment project at 493 Eastmoor and $2.9 million have been committed to Sand Hill Property Foundation’s preservation of 16 apartments located on E.
Molke.
Housing Trust funds have also been used to pay for staffing, consultant fees, professional services costs and HEART membership fees.
Net uncommitted Housing Trust Funds as of 6/30/22 were $296,836.
DISCUSSION
Ordinance Update
At the time the current Inclusionary Housing Ordinance was drafted, the City recognized that in order for an inclusionary housing program to be an effective tool for creating affordable housing, it must not burden new development to such a degree that it rendered new development financially infeasible. To address this concern, the City retained the firm of Kaiser Marston Associates (KMA) to prepare a financial feasibility report which evaluated the overall economic feasibility associated with requiring market rate housing developers to provide affordable housing units or contributions to the City’s Housing Trust Fund. This report was the basis for the requirements described in the City’s current Inclusionary Housing Ordinance. The KMA report is now four years old. As construction and real estate prices have changed significantly, staff recommends an update to the KMA report.
There are two options for updating the economic feasibility report.
3 (1) The City could contract with KMA or another qualified economic consultant to prepare an updated report immediately. This would enable the City to update its Inclusionary Ordinance within the next 6 to 8 months. The price associated with this option would be approximately $60,000.
(2) The City could collaborate with other San Mateo County jurisdictions on a “Grand Nexus Study” that will be undertaken as a multi-jurisdictional effort. This approach would have a lower cost and use a methodology that is consistent with other San Mateo jurisdictions. This effort is scheduled to take place in 2024 with a completion date of 2026.
Examination of Current Commitments
Two projects in the development phase have received Housing Trust Fund commitments from the City totaling $4.2 million.
One of these, Sand Hill Property Foundation received a conditional commitment of $2.9 million from the City in 2018 in order to preserve 16 apartment units located on E. Moltke Street.
Residents of the units are in extremely low-income households who would likely have been displaced when the property was marketed for sale. Since 2018 the SHP Foundation has been evaluating building conditions and negotiating with the City on an affordability restriction that would be required as a condition of the City’s investment of Housing Trust funds.
Staff is seeking direction from the City Council on whether the $2.9 million committed to SHP Foundation for the E. Moltke project should be made available to another project or whether the City should continue to reserve the $2.9 million for the E. Moltke project for an additional 12 months.
In 2020, the City also made a commitment of $1.3 million in Daly City Housing Trust funds to the Core Companies’ 72- unit project proposed for 493 Eastmoor. This investment served as matching funds in the HEART’s application to the State Housing Trust Fund Program and enabled the Core Companies to leverage an additional $1.3 million. In addition, the Core Companies applied to the State and was recently awarded $3 million in Infill Infrastructure Grant Funds. The County of San Mateo has allocated a total of $9.5 million the project.
The Core Companies has an overall financial plan for the project at 493 Eastmoor and meets regularly with staff to discuss current applications and funding commitments. Staff recommends leaving the $1.3 million Housing Trust Fund commitment in place until at least December 2023 when the results of various State funding program applications are announced and there is a clearer idea of the 493 Eastmoor construction schedule.
Summary/Conclusion
Staff seeks direction from the Committee on whether to (1) retain a consultant and update the Inclusionary Ordinance now, as an individual city or (2) wait 12-24 months and
4 update the Inclusionary Ordinance in collaboration with other San Mateo County jurisdictions and a lower cost.
Staff recommends making the $2.8 million previously allocated to SHP for the purpose of a project on E. Moltke Street available to another project unless SHP can agree to finalize loan terms within three months and close on the loan by December 31. 2023.
.
1 DALY CITY INTER-OFFICE MEMORANDUM
DATE: March 6, 2023
TO: Affordable Housing Committee
Vice Mayor Juslyn C. Manalo and Councilmember Glenn Sylvester
FROM: Betsy ZoBell, Housing and Community Development Supervisor
CC: Thomas J. Piccolotti, City Manager
Rose Zimmerman, City Attorney
Tatum Mothershead, Director Economic and Community Development Betsy ZoBell, Housing and Community Development Manager Lenelle D. Suliguin, Senior Management Analyst
SUBJECT: Inclusionary Housing Ordinance Review
BACKGROUND
Since the 1990s the City has required that developers of new housing provide a portion of the units at affordable housing cost or make a financial contribution to the City’s Housing Trust fund for the purpose of new affordable housing development. Initially, the requirement was restricted to new housing development in the City’s redevelopment project areas. In 2007 the City adopted its first citywide Inclusionary Housing Ordinance. This ordinance was repealed and replaced two times and ultimately resulted in the City’s Inclusionary Housing Ordinance (Chapter 17.47 of the Daly City Municipal Code) that is in effect today.
The City’s current Inclusionary Housing ordinance requires that new market rate ownership developments make a minimum of 20 percent of the units affordable to households at or below 120 percent of the area median. Rental housing developments are required to make a minimum of 10 percent of units affordable to households with incomes at or below 80 percent of the area median. In lieu fees may be paid as an alternative to providing affordable rental units. The specific in lieu fee prices were adopted by the City Council in 2018 as Resolution 18-174
The purpose of this memo is to provide a summary of affordable housing resources that the various inclusionary housing policies and ordinances have created for Daly City and to initiate a discussion on potential updates to the City’s Inclusionary Housing Ordinance.
SUMMARY OF AFFORDABLE HOUSING PRODUCTION AND HOUSING TRUST FUND REVENUE RAISED THROUGH INCLUSIONARY HOUSING ORDINANCES.
The City’s various Inclusionary Housing Ordinances have resulted in the production of 75 below market rate units and deposits of $5.6 million to the City’s Affordable Housing Trust Fund.
Affordable Housing Production
2 Since 2011 the City’s Affordable Housing policies and ordinances have resulted in the production of 76 affordable housing units of which 31 are ownership and 44 are rental. These are summarized in Attachment A.
Attachment B shows the Current Residential Project List prepared by the Planning department.
The Housing Division has added the last column to provide information on a project’s compliance with the Inclusionary Housing Ordinance.
Housing Trust Fund Deposits
Since 2015 the City’s Affordable Housing policies and ordinances have generated a total of $5.6 million to the City’s Affordable Housing Trust Fund. Attachment A shows the specific developments that have made impact or in lieu fee payments to the City.
Use of Housing Trust Fund
A total of $809,000 in Housing Trust Fund resources were utilized to subsidize the development of 6 townhouses by Habitat for Humanity Greater San Francisco. These homes were sold to households with incomes at or below 80 percent of the area median.
In addition to the Habitat units, $1.3 million of Daly City Housing Trust funds have been committed to Core Companies 72-unit apartment project at 493 Eastmoor and $2.9 million have been committed to Sand Hill Property Foundation’s preservation of 16 apartments located on E.
Molke.
Housing Trust funds have also been used to pay for staffing, consultant fees, professional services costs and HEART membership fees.
Net uncommitted Housing Trust Funds as of 6/30/22 were $296,836.
DISCUSSION
Ordinance Update
At the time the current Inclusionary Housing Ordinance was drafted, the City recognized that in order for an inclusionary housing program to be an effective tool for creating affordable housing, it must not burden new development to such a degree that it rendered new development financially infeasible. To address this concern, the City retained the firm of Kaiser Marston Associates (KMA) to prepare a financial feasibility report which evaluated the overall economic feasibility associated with requiring market rate housing developers to provide affordable housing units or contributions to the City’s Housing Trust Fund. This report was the basis for the requirements described in the City’s current Inclusionary Housing Ordinance. The KMA report is now four years old. As construction and real estate prices have changed significantly, staff recommends an update to the KMA report.
There are two options for updating the economic feasibility report.
3 (1) The City could contract with KMA or another qualified economic consultant to prepare an updated report immediately. This would enable the City to update its Inclusionary Ordinance within the next 6 to 8 months. The price associated with this option would be approximately $60,000.
(2) The City could collaborate with other San Mateo County jurisdictions on a “Grand Nexus Study” that will be undertaken as a multi-jurisdictional effort. This approach would have a lower cost and use a methodology that is consistent with other San Mateo jurisdictions. This effort is scheduled to take place in 2024 with a completion date of 2026.
Examination of Current Commitments
Two projects in the development phase have received Housing Trust Fund commitments from the City totaling $4.2 million.
One of these, Sand Hill Property Foundation received a conditional commitment of $2.9 million from the City in 2018 in order to preserve 16 apartment units located on E. Moltke Street.
Residents of the units are in extremely low-income households who would likely have been displaced when the property was marketed for sale. Since 2018 the SHP Foundation has been evaluating building conditions and negotiating with the City on an affordability restriction that would be required as a condition of the City’s investment of Housing Trust funds.
Staff is seeking direction from the City Council on whether the $2.9 million committed to SHP Foundation for the E. Moltke project should be made available to another project or whether the City should continue to reserve the $2.9 million for the E. Moltke project for an additional 12 months.
In 2020, the City also made a commitment of $1.3 million in Daly City Housing Trust funds to the Core Companies’ 72- unit project proposed for 493 Eastmoor. This investment served as matching funds in the HEART’s application to the State Housing Trust Fund Program and enabled the Core Companies to leverage an additional $1.3 million. In addition, the Core Companies applied to the State and was recently awarded $3 million in Infill Infrastructure Grant Funds. The County of San Mateo has allocated a total of $9.5 million the project.
The Core Companies has an overall financial plan for the project at 493 Eastmoor and meets regularly with staff to discuss current applications and funding commitments. Staff recommends leaving the $1.3 million Housing Trust Fund commitment in place until at least December 2023 when the results of various State funding program applications are announced and there is a clearer idea of the 493 Eastmoor construction schedule.
Summary/Conclusion
Staff seeks direction from the Committee on whether to (1) retain a consultant and update the Inclusionary Ordinance now, as an individual city or (2) wait 12-24 months and
4 update the Inclusionary Ordinance in collaboration with other San Mateo County jurisdictions and a lower cost.
Staff recommends making the $2.8 million previously allocated to SHP for the purpose of a project on E. Moltke Street available to another project unless SHP can agree to finalize loan terms within three months and close on the loan by December 31. 2023.
.
1 DALY CITY INTER-OFFICE MEMORANDUM
DATE: March 6, 2023
TO: Affordable Housing Committee
Vice Mayor Juslyn C. Manalo and Councilmember Glenn Sylvester
FROM: Betsy ZoBell, Housing and Community Development Supervisor
CC: Thomas J. Piccolotti, City Manager
Rose Zimmerman, City Attorney
Tatum Mothershead, Director Economic and Community Development Betsy ZoBell, Housing and Community Development Manager Lenelle D. Suliguin, Senior Management Analyst
SUBJECT: Inclusionary Housing Ordinance Review
BACKGROUND
Since the 1990s the City has required that developers of new housing provide a portion of the units at affordable housing cost or make a financial contribution to the City’s Housing Trust fund for the purpose of new affordable housing development. Initially, the requirement was restricted to new housing development in the City’s redevelopment project areas. In 2007 the City adopted its first citywide Inclusionary Housing Ordinance. This ordinance was repealed and replaced two times and ultimately resulted in the City’s Inclusionary Housing Ordinance (Chapter 17.47 of the Daly City Municipal Code) that is in effect today.
The City’s current Inclusionary Housing ordinance requires that new market rate ownership developments make a minimum of 20 percent of the units affordable to households at or below 120 percent of the area median. Rental housing developments are required to make a minimum of 10 percent of units affordable to households with incomes at or below 80 percent of the area median. In lieu fees may be paid as an alternative to providing affordable rental units. The specific in lieu fee prices were adopted by the City Council in 2018 as Resolution 18-174
The purpose of this memo is to provide a summary of affordable housing resources that the various inclusionary housing policies and ordinances have created for Daly City and to initiate a discussion on potential updates to the City’s Inclusionary Housing Ordinance.
SUMMARY OF AFFORDABLE HOUSING PRODUCTION AND HOUSING TRUST FUND REVENUE RAISED THROUGH INCLUSIONARY HOUSING ORDINANCES.
The City’s various Inclusionary Housing Ordinances have resulted in the production of 75 below market rate units and deposits of $5.6 million to the City’s Affordable Housing Trust Fund.
Affordable Housing Production
2 Since 2011 the City’s Affordable Housing policies and ordinances have resulted in the production of 76 affordable housing units of which 31 are ownership and 44 are rental. These are summarized in Attachment A.
Attachment B shows the Current Residential Project List prepared by the Planning department.
The Housing Division has added the last column to provide information on a project’s compliance with the Inclusionary Housing Ordinance.
Housing Trust Fund Deposits
Since 2015 the City’s Affordable Housing policies and ordinances have generated a total of $5.6 million to the City’s Affordable Housing Trust Fund. Attachment A shows the specific developments that have made impact or in lieu fee payments to the City.
Use of Housing Trust Fund
A total of $809,000 in Housing Trust Fund resources were utilized to subsidize the development of 6 townhouses by Habitat for Humanity Greater San Francisco. These homes were sold to households with incomes at or below 80 percent of the area median.
In addition to the Habitat units, $1.3 million of Daly City Housing Trust funds have been committed to Core Companies 72-unit apartment project at 493 Eastmoor and $2.9 million have been committed to Sand Hill Property Foundation’s preservation of 16 apartments located on E.
Molke.
Housing Trust funds have also been used to pay for staffing, consultant fees, professional services costs and HEART membership fees.
Net uncommitted Housing Trust Funds as of 6/30/22 were $296,836.
DISCUSSION
Ordinance Update
At the time the current Inclusionary Housing Ordinance was drafted, the City recognized that in order for an inclusionary housing program to be an effective tool for creating affordable housing, it must not burden new development to such a degree that it rendered new development financially infeasible. To address this concern, the City retained the firm of Kaiser Marston Associates (KMA) to prepare a financial feasibility report which evaluated the overall economic feasibility associated with requiring market rate housing developers to provide affordable housing units or contributions to the City’s Housing Trust Fund. This report was the basis for the requirements described in the City’s current Inclusionary Housing Ordinance. The KMA report is now four years old. As construction and real estate prices have changed significantly, staff recommends an update to the KMA report.
There are two options for updating the economic feasibility report.
3 (1) The City could contract with KMA or another qualified economic consultant to prepare an updated report immediately. This would enable the City to update its Inclusionary Ordinance within the next 6 to 8 months. The price associated with this option would be approximately $60,000.
(2) The City could collaborate with other San Mateo County jurisdictions on a “Grand Nexus Study” that will be undertaken as a multi-jurisdictional effort. This approach would have a lower cost and use a methodology that is consistent with other San Mateo jurisdictions. This effort is scheduled to take place in 2024 with a completion date of 2026.
Examination of Current Commitments
Two projects in the development phase have received Housing Trust Fund commitments from the City totaling $4.2 million.
One of these, Sand Hill Property Foundation received a conditional commitment of $2.9 million from the City in 2018 in order to preserve 16 apartment units located on E. Moltke Street.
Residents of the units are in extremely low-income households who would likely have been displaced when the property was marketed for sale. Since 2018 the SHP Foundation has been evaluating building conditions and negotiating with the City on an affordability restriction that would be required as a condition of the City’s investment of Housing Trust funds.
Staff is seeking direction from the City Council on whether the $2.9 million committed to SHP Foundation for the E. Moltke project should be made available to another project or whether the City should continue to reserve the $2.9 million for the E. Moltke project for an additional 12 months.
In 2020, the City also made a commitment of $1.3 million in Daly City Housing Trust funds to the Core Companies’ 72- unit project proposed for 493 Eastmoor. This investment served as matching funds in the HEART’s application to the State Housing Trust Fund Program and enabled the Core Companies to leverage an additional $1.3 million. In addition, the Core Companies applied to the State and was recently awarded $3 million in Infill Infrastructure Grant Funds. The County of San Mateo has allocated a total of $9.5 million the project.
The Core Companies has an overall financial plan for the project at 493 Eastmoor and meets regularly with staff to discuss current applications and funding commitments. Staff recommends leaving the $1.3 million Housing Trust Fund commitment in place until at least December 2023 when the results of various State funding program applications are announced and there is a clearer idea of the 493 Eastmoor construction schedule.
Summary/Conclusion
Staff seeks direction from the Committee on whether to (1) retain a consultant and update the Inclusionary Ordinance now, as an individual city or (2) wait 12-24 months and
4 update the Inclusionary Ordinance in collaboration with other San Mateo County jurisdictions and a lower cost.
Staff recommends making the $2.8 million previously allocated to SHP for the purpose of a project on E. Moltke Street available to another project unless SHP can agree to finalize loan terms within three months and close on the loan by December 31. 2023.
.
City of Daly City
Planning Division
333 90th Street
Daly City, CA 94015
(650) 991-8033
CURRENT RESIDENTIAL PROJECT LIST
Reflects application received, entitlements granted, and construction commenced for the 24 months preceding January 1, 2022 Does not include Pre-Application Conference applications (sorted by Planning Division intake order) Project Name Application Type Plan Case No. Location/APN Proposed Unit Type
Site Size
(acres)
Proposed
Units Qty.
Proposed
Density (du/ac) Status Intake Date Hearing Schedule Developer/Contact Planning Contact
Robertson
Intermediate School
Redevelopment
General Plan Amendment,
Rezoning, and Subdivsion
GPA-1-15-10254
PD-1-15-10255
SUB-1-15-10256
1 Martin Street
APN 005-330-010 Detached
homes 6.96 71 10 Under construction January 14, 2015 City Council approved April 25, 2015
David Fish
Toll Brothers
(925) 786-3668
Michael VanLonkhuysen,
Planning Manager
(650) 991-8158
Point Martin
- Phase One Major subdivision SUB-6-15-11016 Steve Courter Way and Martin Street; APN 005-042-020
Detached
homes 1.9 16 8 Under construction June 8, 2015
City Council approved September 14,
2015; ; two-year time extension granted
June 25, 2018 to
September 14, 2020
Alec Tappin
KB Home
925-683-7782
Michael VanLonkhuysen,
Planning Manager
(650) 991-8158
Point Martin
- Phase Two
General Plan Amendment
and
PD Zone Change
GPA-01-16-011884
PD-10-15-11781
CEQA-10-15-11782
APNs 005-031-070 + 47 others;
Steve Courter Way and Martin Street
Detached
homes 8.3 117 14.1 Under construction October 29, 2015 City Council approved May 22, 2017
Alec Tappin
KB Home
925-683-7782
Michael VanLonkhuysen,
Planning Manager
(650) 991-8158
Pacific Place Retail
Conversion
Zone Change
Major Subdivision
Design Review
Major Subdivision
ZC-4-16-12036
SUB-4-16-12037
UP-4-16-12038
CEQA-4-16-12039
2665 Geneva Avenue
APN 005-064-250 Condominiums 1.00 7 7.0 All entitlements appoved April 14, 2016
City Council approved
April 24, 2017; two-year time extension
granted April 22, 2021
Harry C. Arthur
(415) 690-6442
Michael VanLonkhuysen,
Planning Manager
(650) 991-8158
Mission Street/
Goethe Street
Mixed-Use Building
Use Permit and
Design Review
SUB-12-20-14799
UPR-9-16-12301
DR-9-16-012302
6098 Mission Street
APNs 004-031-160 and 170
Apartment
building 0.25 36 144 All entitlements
appoved September 13, 2016
City Council approved
permiot renewal September 9, 2019;
AB1561 time extension to February 6,
2022. Condominium map approved April
26, 2021.
6098 Mission Street, LLC
(415) 272-4901
Michael VanLonkhuysen,
Planning Manager
(650) 991-8158
Robertson
Intermediate School
Redevelopment
(Toll Brothers Map
Revision)
Major Subdivision SUB-3-17-12681
1 Martin Street
APN 005-330-010 Detached
homes 6.96 71 10 Under construction March 15, 2017 City Council approved June 26, 2017
David Fish
Toll Brothers
(925) 786-3668
Michael VanLonkhuysen,
Planning Manager
(650) 991-8156
Westlake Shopping
Center Mixed-Use
Building
(Residential)
General Plan Amendment,
Planned Development
Design Review
GPA-4-17-12760
PD-4-17-012761
DR-4-17-012762
10 Park Plaza Drive
APNs 002-170-130
Mixed-Use
Apartment
building
1.95 179 91.8 All entitlements
appoved April 26, 2017 City Council approved
September 10, 2018
Michael Strauss
Kimco Realty
(650) 746-7501
Michael VanLonkhuysen,
Planning Manager
(650) 991-8156
Jefferson Union High
School District
Faculty and Staff
Housing
General Plan Amendment,
Rezoning,
and Design Review
GPA-9-18-13666,
ZC-9-18-13662, and
DR-9-18-13665
699 Serramonte Boulevard
APN 091-211-230 Apartment building 3.30 116 35.2 Under construction September 12, 2018 City Council approved January 13, 2020
Brookwood Advisors
(415) 402-0800
Carmelisa Morales Lopez,
Associate Planner
(650) 991-8158
Habitat Geneva
General Plan Amendment,
Rezoning, Use
Permit, Major Subdivision,
and Design Review
GPA-1-19-13827,
ZC-1-19-13828,
UPR-1-19-13830,
SUB-1-19-13832,
and DR-1-19-13833
3001 Geneva Avenue
APN 015-072-310
Attached
townhomes 0.14 6 42.9 Under construction January 6, 2019 City Council approved May 28, 2019
Doug Fowler
Habitat for Humanity
(415) 625-1002
Brian Paland
Assistant Planner
(650) 991-8035
Templeton homes General Plan Amendment
and Design Review
GPA-3-19-13911 and
DR-6-18-13530
717 Templeton Avenue
APNs 004-243-120, -130, -140,
and -020
Detached
homes 0.36 4 11.1 All entitlements
appoved January 9, 2019 City Council approved
May 28, 2019
Melinda Kao
(510) 828-9156
Brian Paland
Assistant Planner
(650) 991-8035
Vista Grande
Parcel Map Minor Subivision SUB-6-19-14075 489 Vista Grande Avenue APN 002-321-010
Detached
homes 0.13 2 15.4 All entitlements
appoved June 18, 2019 City Council approved
September 9, 2019
Christopher Chan
(415) 367-5586
Brian Paland
Assistant Planner
(650) 991-8035
Eastmoor Residential
Development
Use Permit and Design
Review
UPR-6-19-14076 and
DR-6-19-14077
493 Eastmoor Avenue
APN 008-082-200 Apartment building 0.37 72 195.7 All entitlements appoved June 18, 2019
City Council approved
February 24, 2020; Time extension
granted to February 24, 2024
Carl Hertel
CORE Affordable Housing
(408) 292-2841
Michael VanLonkhuysen,
Planning Manager
(650) 991-8158
Midway Village
Redevelopment
General Plan Amendment,
Subdivision,
and Design Review
GPA-5-19-14054,
SUB-5-19-14055, and
DR-5-19-14056
45 Midway Drive
APN 005-330-320 and others Apartment buildings 15.00 555 37.0 Under construction June 21, 2019 City Council approved June 8, 2020
Abby Goldware Potluri
Mid-Pen Housing Coalition
(650) 515-6358
Michael VanLonkhuysen,
Planning Manager
(650) 991-8158
Jefferson Elementary
School District Faculty
and Staff Housing
General Plan Amendment,
Rezoning,
and Design Review
GPA-11-19-14331
ZC-11-19-14332
DR-11-19-014333
305 Eastmoor Avenue
APN 008-082-160 Apartment buildings 2.38 56 23.5 All entitlements appoved November 27, 2019 City Council approved December 14, 2020 Jefferson Elementary School
Dsitrict
(650) 991-1000
Carmelisa Morales Lopez,
Associate Planner
(650) 991-8156
Third Avenue
Townhouses
General Plan Amendment,
Rezoning, Subdivision, Use
Permit,
and Design Review
GPA-8-20-14643
ZC-8-20-14633
SUB-8-20-14634
UPR-8-20-14642
DR-8-20-14636
141 Third Avenue
APN 006-254-030)
Detached
townhomes 0.72 15 21.0 Application incomplete June 17, 2020 TBD John Suppes Authorized
Agent
(650) 465-7369
Brian Paland
Assistant Planner
(650) 991-8035
Old Burlington Site Mixed-
Use Redevelopment
(Residential)
Planned Development Text
Amendment and
Design Review
ZC-4-21-14994
DR-4-21-14995
99 Southgate Avenue
APN 002-201-570
Mixed-Use
Apartment
building
1.95 179 91.8 Application incomplete April 21, 2021 TBD Michael Strahs
Kimco Realty
(650) 746-7501
Carmelisa Morales Lopez,
Associate Planner
(650) 991-8156
Serramonte Dey Rey
Redevelopment
(Residential)
General Plan Amendment,
PD Rezoning, Subdivision,
and Design Review
GPA-04-21-14998,
PD-04-21-14997,
DR-04-21-15000
SUB-04-21-14999
699 Serramonte Boulevard
APN 091-211-230
Mixed-use apartment
buildings and apartment
buildings
22.00 1,235 56.1 Entitlements
in process April 23, 2021 City Council approved Preliminary Plan January 10, 2022
Tina Van Raaphorst
Jefferson Union High School
District
(650) 550-7954
Carmelisa Morales Lopez,
Associate Planner
(650) 991-8156
Project Name Application Type Plan Case No. Location/APN Proposed Unit Type
Site Size
(acres)
Proposed
Units Qty.
Proposed
Density (du/ac) Status Intake Date Hearing Schedule Developer/Contact Planning Contact
City of Daly City
Planning Division
333 90th Street
Daly City, CA 94015
(650) 991-8033
CURRENT RESIDENTIAL PROJECT LIST
Reflects application received, entitlements granted, and construction commenced for the 24 months preceding January 1, 2022 Does not include Pre-Application Conference applications (sorted by Planning Division intake order) Project Name Application Type Plan Case No. Location/APN Proposed Unit Type
Site Size
(acres)
Proposed
Units Qty.
Proposed
Density (du/ac) Status Intake Date
BMR information
Robertson
Intermediate School
Redevelopment
General Plan Amendment,
Rezoning, and Subdivsion
GPA-1-15-10254
PD-1-15-10255
SUB-1-15-10256
1 Martin Street
APN 005-330-010 Detached
homes 6.96 71 10 Under construction January 14, 2015 n/a Point Martin
- Phase One Major subdivision SUB-6-15-11016 Steve Courter Way and Martin Street; APN 005-042-020
Detached
homes 1.9 16 8 Under construction June 8, 2015 Fees
Point Martin
- Phase Two
General Plan Amendment
and
PD Zone Change
GPA-01-16-011884
PD-10-15-11781
CEQA-10-15-11782
APNs 005-031-070 + 47 others;
Steve Courter Way and Martin Street
Detached
homes 8.3 117 14.1 Under construction October 29, 2015
11 BMRs at Moderate Income
Pacific Place Retail
Conversion
Zone Change
Major Subdivision
Design Review
Major Subdivision
ZC-4-16-12036
SUB-4-16-12037
UP-4-16-12038
CEQA-4-16-12039
2665 Geneva Avenue
APN 005-064-250 Condominiums 1.00 7 7.0 All entitlements appoved April 14, 2016
1 BMR at Low Income
Mission Street/
Goethe Street
Mixed-Use Building
Use Permit and
Design Review
SUB-12-20-14799
UPR-9-16-12301
DR-9-16-012302
6098 Mission Street
APNs 004-031-160 and 170
Apartment
building 0.25 36 144 All entitlements
appoved September 13, 2016
7 BMRs at Moderate Icome
Robertson
Intermediate School
Redevelopment
(Toll Brothers Map
Revision)
Major Subdivision SUB-3-17-12681
1 Martin Street
APN 005-330-010 Detached
homes 6.96 71 10 Under construction March 15, 2017
n/a
Westlake Shopping
Center Mixed-Use
Building
(Residential)
General Plan Amendment,
Planned Development
Design Review
GPA-4-17-12760
PD-4-17-012761
DR-4-17-012762
10 Park Plaza Drive
APNs 002-170-130
Mixed-Use
Apartment
building
1.95 179 91.8 All entitlements
appoved April 26, 2017
no Affordable Housing Plan has been
submitted yet. 10% would be
required at Low Income
Jefferson Union High
School District
Faculty and Staff Housing
General Plan Amendment,
Rezoning,
and Design Review
GPA-9-18-13666,
ZC-9-18-13662, and
DR-9-18-13665
699 Serramonte Boulevard
APN 091-211-230 Apartment building 3.30 116 35.2 Under construction September 12, 2018 12 BMRs at Low Income
Habitat Geneva
General Plan Amendment,
Rezoning, Use
Permit, Major Subdivision,
and Design Review
GPA-1-19-13827,
ZC-1-19-13828,
UPR-1-19-13830,
SUB-1-19-13832,
and DR-1-19-13833
3001 Geneva Avenue
APN 015-072-310
Attached
townhomes 0.14 6 42.9 Under construction January 6, 2019 100% afffordable
Templeton homes General Plan Amendment
and Design Review
GPA-3-19-13911 and
DR-6-18-13530
717 Templeton Avenue
APNs 004-243-120, -130, -140,
and -020
Detached
homes 0.36 4 11.1 All entitlements
appoved January 9, 2019
Fees
Vista Grande
Parcel Map Minor Subivision SUB-6-19-14075 489 Vista Grande Avenue APN 002-321-010
Detached
homes 0.13 2 15.4 All entitlements
appoved June 18, 2019
Fees
Eastmoor Residential
Development
Use Permit and Design
Review
UPR-6-19-14076 and
DR-6-19-14077
493 Eastmoor Avenue
APN 008-082-200 Apartment building 0.37 72 195.7 All entitlements appoved June 18, 2019
100% affordable, 7 BMRs at Low
Income
Midway Village
Redevelopment
General Plan Amendment,
Subdivision,
and Design Review
GPA-5-19-14054,
SUB-5-19-14055, and
DR-5-19-14056
45 Midway Drive
APN 005-330-320 and others Apartment buildings 15.00 555 37.0 Under construction June 21, 2019 100% affordable, 56 BMRs at Low
Income
Jefferson Elementary
School District Faculty
and Staff Housing
General Plan Amendment,
Rezoning,
and Design Review
GPA-11-19-14331
ZC-11-19-14332
DR-11-19-014333
305 Eastmoor Avenue
APN 008-082-160 Apartment buildings 2.38 56 23.5 All entitlements appoved November 27, 2019
6 BMRs at Low Income
Third Avenue
Townhouses
General Plan Amendment,
Rezoning, Subdivision, Use
Permit,
and Design Review
GPA-8-20-14643
ZC-8-20-14633
SUB-8-20-14634
UPR-8-20-14642
DR-8-20-14636
141 Third Avenue
APN 006-254-030)
Detached
townhomes 0.72 15 21.0 Application incomplete June 17, 2020 no Affordable Houisng Plan has been
submitted/approved
Old Burlington Site Mixed-
Use Redevelopment
(Residential)
Planned Development Text
Amendment and
Design Review
ZC-4-21-14994
DR-4-21-14995
99 Southgate Avenue
APN 002-201-570
Mixed-Use
Apartment
building
1.95 179 91.8 Application incomplete April 21, 2021
21 BMRs at Low Income
Serramonte Dey Rey
Redevelopment
(Residential)
General Plan Amendment, PD
Rezoning, Subdivision,
and Design Review
GPA-04-21-14998,
PD-04-21-14997,
DR-04-21-15000
SUB-04-21-14999
699 Serramonte Boulevard
APN 091-211-230
Mixed-use apartment
buildings and apartment
buildings
22.00 1,235 56.1 Entitlements
in process April 23, 2021
no Affordable Housing Plan has been
submitted/approved.
City of Daly City
Planning Division
333 90th Street
Daly City, CA 94015
(650) 991-8033
CURRENT NON-RESIDENTIAL PROJECT LIST
Reflects application received, entitlements granted, and construction commenced for the 24 months preceding January 1, 2022 Does not include Pre-Application Conference applications (sorted by Planning Division intake order) Project Name Application Type Plan Case No. Location/APN Proposed New Sq. Ft.
Site Size
(acres) ProposedType Status Intake Date Hearing Schedule Developer/Contact Planner Mission Street/
Goethe Street
Mixed-Use Building
Use Permit and
Design Review
UPR-7-19-14111 and
DR-7-19-14112
6098 Mission Street
APNs 004-031-160 and 170 1,568 0.25 Retail All entitlements appoved July 9, 2019
City Council approved
permiot renewal September 9, 2019;
AB1561 time extension to February 6,
2022. Condominium map approved
April 26, 2021.
6098 Mission Street, LLC
(415) 272-4901
Michael VanLonkhuysen, Planning
Manager
(650) 991-8158
Hilldale School Expansion Use Permit and
Design Review
UPR-6-19-14071 and
DR-11-19-14321
25 Florence Avenue
APN 003-401-010 and 030 2,100 1.42 Private school All entitlements appoved March 2, 2018
City Council approved
January 13, 2020; time
extension pendinf
John Sittner
(801) 359-2000
Michael VanLonkhuysen, Planning
Manager
(650) 991-8158
North East Medical
Services Building Expansion
Planned
Development Amendment
Use Permit
Design Review
ZC-04-18-013421
UPR-04-18-013425
DR-04-18-013424
211 Eastmoor Avenue
APNs 008-501-320 5,464
(net gain) 1 Medical clinic All entitlements
appoved April 19, 2018 City Council approved
May 28, 2019
Dan Boyle
MCG Architecture
(415) 974-6002
Michael VanLonkhuysen, Planning
Manager
(650) 991-8158
Serremonte Shopping
Center Northwest
Quadrant (theater, hotel,
and retail)
Design Review DR-1-19-13855
3 Serramonte Center
APN 005-240-180,
-190, and -310
70,000 (cinema)
75,000 (hotel)
28,000 (retail)
80.00 Retail/Office All entitlements
appoved January 22, 2019
DRC approved
August 12, 2019;
Time extension approved by DRC to
December 28, 2022
Regency Centers
(925) 279-1865
Carmelisa Morales Lopez,
Associate Planner
(650) 991-8156
Duggan’s Serra Mortuary
Expansion and Carvana
Vending Machine
Fulfillment Center
Planned Development, Use
Permit,
and Design Review
PD-4-19-13998,
UPR-4-19-13999, and
DR-4-19-14000
500 Westlake Avenue
APN 002-342-160 and
others
15,743 (Duggans expansion)
12-story fullfillement structure
(Carvana)
0.9 (Duggans)
1.75 (Carvana)
Mortuary/
new vecicle
fullfilment
Carvana
under construction April 19, 2019 City Council approved June 22, 2020
Sierra Enterprises
(707) 287-2537
Carmelisa Morales Lopez,
Associate Planner
(650) 991-8156
Popeye's Chicken
Drive-Through Restaurant
(previous Steak N Shake)
Use Permit UPR-7-19-14126
362 East Market Street (formerly Steak
N Shake)
APN 006-493-190
3,275 0.58
Fast food
drive-through Under construction April 19, 2019 City Council approved 11/25/2019
Simon Lin
(408) 505-3805
Brian Paland
Assistant Planner
(650) 991-8035
Serremonte Shopping
Center Northeast Quadrant
(two fast-food drive-
throughs)
Use Permit UPR-9-19-14209 and
UPR-9-19-14212
3 Serramonte Center
APN 005-240-180,
-190, and -310 7,262 80.00
Fast-Food
Restaurants (2) Consturction complete September 23, 2019 City Council approved August 27, 2020
Regency Centers
(925) 279-1865
Carmelisa Morales Lopez,
Associate Planner
(650) 991-8156
Old Burlington Site Mixed-
Use Redevelopment
(Retail)
Planned Development Text
Amendment and
Design Review
ZC-4-21-14994 and
DR-4-21-14995
99 Southgate Avenue
APNs 002-201-570 10,800 1.95 Retail Application incomplete April 21, 2021 TBD Michael Strahs
Kimco Realty
(650) 746-7501
Carmelisa Morales Lopez,
Associate Planner
(650) 991-8156
Serramonte Dey Rey
Redevelopment
(Commercial)
General Plan Amendment,
PD Rezoning, Subdivision,
and Design Review
GPA-04-21-14998,
PD-04-21-14997,
DR-04-21-15000
SUB-04-21-14999
699 Serramonte Boulevard
APN 091-211-230 14,000 22.00 Commercial Entitlements
in process April 23, 2021 City Council approved Preliminary Plan January 10, 2022
Tina Van Raaphorst
Jefferson Union High School
District
(650) 550-7954
Carmelisa Morales Lopez,
Associate Planner
(650) 991-8156
Saint Francis Square
Remodel, Retail
Addition, and Drive-
Through
Use Permit and
Design Review UPR-1-22-15498 79 Saint Francis Square
APNs 008-481-010, -270, and -280 16,247 5.88 Retail Application incomplete October 18, 2021 TBD John Lee (626) 233-8496
Brian Paland
Assistant Planner
(650) 991-8035
Attachment A
Summary of Daly City Inclusionary Housing Ordinance Accomplishments Developer Property
Number of BMR
Units
Income
Target
Ownership
Lennar Crestview Estates 12 120%
KB Homes Garden Valley 5 120%
KB Homes Wellington 6 120%
City Ventures The HUB 8 120%
Total 31
Rental
Equity Residential 88 Hillside 14 60%
Geneva Pacifica Place
Property LLC 2665 Geneva 12 60%
Jefferson Union High
School District 699 Serramonte Blvd. 12 70%
Jefferson Elementary School District305 Eastmoor 6 70%
Total 44
Impact/In Lieu Fees
Lennar Crestview Estates $1,000,000
KB Homes KB Homes/ Garden Valley $680,490
Kb Homes KB Homes/Wellington $1,200,000
Signature Properties Edgeworth Nursery $730,310
Warmington Annie Street $526,484
S7J Properties Accacia Street $403,662
City Ventures The HUB $1,057,663
Total $5,598,609
Summary of Housing Trust Fund Revenues
and Expenditures .
Revenues
Impact /In Lieu Fee
Collections: 5,598,609
Other Misc. Deposits 966,144 (1)
Total Trust Fund
Deposits 6,564,753
Expenditures
Reserve for Admin 984,713
3001 Geneva 816,450 9015.3
8570
Other Housing Expenses 266,754 (2) 17585.3
Committed
E. Moltke 2,900,000
493 Eastmoor 1,300,000
Net Unencumbered
Balance 296,836
(1) Compliance fees, one-time developer payments, financing fees, etc. (2) Professional service expenses, membership fees, etc.