DATE: June 21, 2022
TO: Christine Daniel, City Manager
FROM: Charles S. Bryant, Community Development Director SUBJECT: Christie Sites Redevelopment
Resolution Of The City Council Of The City Of Emeryville Declaring The Properties At 5890, 5900 and 6150 Christie Avenue (APNs 49-1493-3, 49-1493-4 And 49-1493-5) As Exempt Surplus Land Pursuant To Government Code Section 54221(f)(1)(F)(ii) Resolution Of The City Council Of The City Of Emeryville Authorizing The Release Of A Request For Proposals For The Redevelopment Of 5890, 5900 and 6150 Christie Avenue (APNs 49-1493-3, 49-1493-4 And 49-1493-5)
RECOMMENDATION
Staff recommends that the City Council adopt the above-entitled resolution declaring the properties at 5890, 5900 and 6150 Christie Avenue (the “Christie Sites”) as “Exempt Surplus Land” pursuant to Government Code Section 54221(f)(1)(F)(ii). Staff also recommends that the City Council adopt the above-entitled resolution authorizing the release of a Request for Proposals (“RFP”) for the redevelopment of the Christie Sites.
BACKGROUND
The City owns three parcels at 5890, 5900 and 6150 Christie Avenue, which total 2.01 acres, bounded to the north by Christie Park, to the west by Christie Avenue, to the east by the Marketplace Redevelopment Project, and to the south by a parking structure that serves an office building at 5850 Shellmound Way. Together, these properties comprise the “Christie Sites” (Assessor Parcel Numbers 49-1493-3, -4 and -5).
The Christie Sites were acquired using low and moderate-income housing funds by the former Emeryville Redevelopment Agency. Due to the Christie Sites’ status as a former redevelopment “housing asset”, California Health and Safety Code (“HSC”) Section 33334.16 applies, which requires activities to develop the properties for affordable housing to be initiated within five years from the date of transfer to the Housing Successor. Otherwise, the properties must be sold, and the proceeds deposited in the City’s Low-Moderate Income Housing Asset Fund.
For the Christie Sites, the time periods described in HSC Section 33334.16 commenced on the date that the California Department of Finance approved the property as a housing asset, which was August 31, 2012. On July 25, 2017, the Emeryville City Council adopted Resolution No. 17-130, which extended the time period to initiate development by five years, to September 1, 2022.
These City-owned parcels represent a significant opportunity to leverage private investment to achieve the community’s goals and objectives, and the City must move expeditiously to meet the requirements of HSC Section 33334.16.
The Planning Commission and City Council each held study sessions regarding the Christie Sites on December 11, 2014, and February 3, 2015, respectively. Since it had been several years since the City Council provided feedback on the redevelopment of the Christie Sites, the City Council held a second study session to provide updated feedback to staff on January 18, 2022.
The City Council’s comments at the January 18, 2022, study session included the following:
Maximize residential development.
Maximize affordability.
The determination of whether proposed housing is ownership or rental should be market-responsive in consideration of the aforementioned goals of maximization of units and affordability.
Christie Park should be expanded, and reference was made to providing enough room for adult recreational uses such as a basketball court Environmental sustainability, including potential for carbon storage, was cited as an important goal Potential commercial uses referenced included a sustainable transportation operation, such as electric bicycle or automobile rental or sales During the January study session, staff also provided information regarding next steps for redevelopment of the Christie Sites, including a brief discussion regarding recent changes to the Surplus Lands Act (“SLA”) and the possibility that these changes could have implications for the developer selection process. Staff has since evaluated the SLA changes as applied to the Christie Sites and is recommending that the City Council determine the properties are Excess Surplus Land prior to proceeding with developer selection, as discussed further below.
During its regular meeting on January 18, 2022, the City Council adopted a resolution authorizing the execution of a contract with David Rosen & Associates (“DRA”) for developer selection, negotiation and closing services associated with the redevelopment of the Christie Sites. Since then, staff has worked with DRA to prepare a draft RFP (Exhibit A of second attached draft resolution) for the City Council’s consideration.
DISCUSSION
Surplus Lands Act
Assembly Bill (“AB”) 1486 and AB 1255, signed into law in 2019, made changes to the SLA (Government Code Title 5, Division 2, Part 1, Chapter 5, Article 8, “Surplus Land”). As a result, the SLA now includes provisions requiring local agencies to notify the State Housing and Community Development Department (“HCD”) of the inventory of lands that it has declared as “surplus” or “exempt surplus”, and includes requirements for notifying HCD, and for negotiating with interested housing sponsors prior to disposal of surplus lands.
In April 2021, HCD released the Final Surplus Land Act Guidelines (the “Guidelines”), which implement, interpret, and make specific the text of the SLA. Section 103 of the Guidelines describes the types of properties that are exempt from the Guidelines’ provisions relating to required notification and negotiation periods, and requirements for certain covenants to be placed on the property at the time of sale. Specifically, Section 103(b)(3)(F)(ii) of the Guidelines, which mirrors Government Code Section 54221(f)(1)(F)(ii), provides the following exemption:
“A mixed-use development that is more than one acre in area, that includes not less than 300 housing units, and that restricts at least 25 percent of the residential units to lower-income households, as defined in Health and Safety Code Section 50079.5 as affordable housing pursuant to Section 102(a) of these Guidelines.” HSC Section 50079.5 is the definition of “lower-income households”, generally earning 80 percent or less of the Area Median Income, adjusted for household size and updated annually, and including very low-income and extremely low-income households. Section 102(a) of the Guidelines is the definition of “affordable housing”, which similarly incorporates references to HSC sections that are typically used to define affordable housing.
According to the Guidelines, the City Council may declare the property to be Exempt Surplus Land if this declaration is made at a regular public meeting and is supported by written findings demonstrating that the land meets the above description.
As applied to the Christie Sites, staff believes the exemption at Government Code Section 54221(f)(1)(F)(ii) and Guidelines Section 103(b)(3)(F)(ii) is appropriate because the Christie Sites total over two acres and the maximum bonus residential density according to the General Plan is 170 dwelling units per acre, resulting in a residential project of up to 340 units. Additionally, the City Council expressed priority for maximizing residential density and affordability for the redevelopment of the Christie Sites.
To implement the City Council’s priorities while meeting the requirements for a determination of Exempt Surplus Land, the draft RFP states that proposals should include a minimum of 300 units of which a minimum of 25% are affordable to lower-income households.
Request For Proposals
As noted above, staff, with assistance from DRA, has prepared a draft RFP for the redevelopment of the Christie Sites. The draft RFP includes the following sections:
Executive Summary
An overview of the Christie Sites, a listing of the City’s goals for redevelopment of the properties, and information on RFP deadlines About Emeryville
A description of the City generally, including significant community assets and basic information relevant to prospective developers Site and Parcel Information
A description of land use requirements (General Plan and zoning), existing conditions and adjacent uses, transportation access, and environmental and financial considerations Development Goals and Requirements
Further elucidation on the City’s goals for the Christie Sites, as follows:
Maximize the number of housing units developed on the site.
Maximize the number of affordable housing units developed on the site, with consideration given to:
Providing affordable housing for a range of income levels, including extremely low and very low-income households.
Providing family friendly (three- and/or four-bedroom) units and appropriate amenities for people of all ages.
Create a viable mix of affordable and market rate housing.
Provide bicycle and pedestrian pathways on site connecting to existing bicycle and pedestrian routes.
Develop a sustainable commercial or non-profit transportation use (e.g., electric bike rental) as an ancillary retail use.
Expand Christie Park, with an emphasis on active recreation. At a minimum, the park expansion area should be adequately sized to accommodate a full-size basketball court.
Create an energy efficient and carbon neutral (preferably Net Zero Energy) development incorporating energy efficiency and renewable energy features, which may include the use of mass timber materials, photovoltaic systems, and other sustainable construction methods.
Developer and City Roles and Responsibilities
A table outlining expectations for City and development partner roles Minimum Qualifications for Developers and Team Members
A description of expectations for experience levels of proposing developers by product type Submission Requirements
A description of required proposal contents, including information relating to developer/architect/engineer experience and qualifications The development concept, including conceptual illustrations, energy efficiency plan, stakeholder engagement process, resident services plan, and proposed financing structure A financing plan, including a narrative, a proforma provided in the form provided as an attachment to the RFP (to facilitate comparison/evaluation of proposals) A description of the proposed business offer of specified deal points including developer fee, ground lease payments, and requirement for a $100,000 nonrefundable deposit at execution of an Exclusive Right to Negotiate Agreement (“ERN”).
Certifications regarding prior bankruptcies, financial guarantees and no collusion.
A proposed schedule of performance
Selection Process
A description of the selection process including review by City staff and advisors, proceeding to a recommendation for an ERN, Term Sheet and Lease Disposition and Development Agreement (“LDDA”).
Selection Criteria
A listing of the criteria that will be used to evaluate proposals Proposal Submission Process
Description of electronic submittal process for proposals Standard Provisions
Statement regarding no representations or warranties by City in RFP Statement regarding City’s right to reject any and all proposals and other general provisions Staff is recommending that the City Council authorize release of the RFP to the development community.
Next Steps
In order to best position the City to meet the requirements of HSC Section 33334.16, the City must move expeditiously to advance the development of the Christie Sites.
If the City Council adopts the resolution declaring the Christie Sites as Exempt Surplus Land, staff will provide the adopted resolution to HCD as required by SLA Guidelines Section 400(e), which requires local agencies to provide determinations of Exempt Surplus Land to HCD at least 30 days prior to disposition of the property. This 30-day time period will run concurrently with the RFP and staff’s review of responses.
If the City Council adopts the resolution authorizing release of the RFP, staff will circulate the RFP beginning on June 22, 2022. A mandatory pre-proposal meeting will be held on July 13, 2022 and proposals will be due by August 5, 2022. Staff, with support from DRA, will evaluate the responses received and will report back to the City Council with a recommendation for developer selection after the City Council’s August recess.
FISCAL IMPACT
Declaration of the Christie Sites as Exempt Surplus Land and release of the RFP do not have any direct fiscal impact. The fiscal impact of proposals received in response to the RFP will be evaluated by staff once received, and an analysis will be presented to the City Council prior to execution of an ERN with the selected developer.
STAFF COMMUNICATION WITH THE PUBLIC
On June 1, 2022, the Housing Committee reviewed the draft RFP and unanimously recommended that the City Council authorize release of the draft RFP.
Subsequent to the publication of the City Council agenda packet on June 10, 2022, staff informed the development community of the City Council’s pending discussion on the RFP via email and the City’s “News Flash”.
CONFLICT OF INTEREST
None.
CONCLUSION
Staff recommends that the City Council adopt two attached resolutions to facilitate the redevelopment of the Christie Sites. First, staff recommends the City Council adopt a resolution declaring the Christie Sites as Exempt Surplus Land pursuant to Government Code Section 54221(f)(1)(F)(ii) for projects over one acre with at least 300 residential units and 25 percent of units affordable to lower income households. Second, staff recommends that the City Council adopt a resolution authorizing the release of the RFP for the Redevelopment of the Christie Sites.
PREPARED BY: Chadrick Smalley, Economic Development and Housing Manager
APPROVED AND FORWARDED TO THE
CITY COUNCIL OF THE CITY OF EMERYVILLE:
________________________
Christine Daniel, City Manager
ATTACHMENTS:
Draft Resolution Declaring Christie Sites Exempt Surplus Land, including Exhibit A, Assessor Parcel Map Draft Resolution Authorizing Release of RFP, including Exhibit A: Draft RFP for Redevelopment of the Christie Sites Christie Avenue Sites – Exempt Surplus Land Determination and RFP Release City Council Meeting | June 21, 2022
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City of Emeryville
CALIFORNIA
MEMORANDUM