ORDINANCE NO. 22–__
Ordinance Of The City Council Of The City Of Emeryville Adopting An Amendment To The Development Agreement For The Public Market Project (Also Known As The Marketplace Redevelopment Project) To Remove The Parcel A Residential Development Obligation, And To Provide For A Monetary Contribution Of $20 Million To The City In Exchange For Removal Of The Obligation To Provide 18 Affordable Housing Units On Parcel A, And Other Related Amendments (APN Nos. 49-1556-15; -16; -17, And -24) (CEQA Determination: Environmental Impact Report For Marketplace Redevelopment Project Certified By City Council on January 15, 2008)
WHEREAS, on December 1, 2015, the City Council passed Ordinance No. 15-010, approving a Development Agreement (DA) for the Public Market Project (also known as the Marketplace Redevelopment Project), following a recommendation from the Planning Commission on June 25, 2015; and
WHEREAS, Section 7.1 of the DA stipulates that Parcel A shall include 18 affordable units, including eight low-income units and ten moderate income units. This requirement was based on 11% of the 167 dwelling that were approved to be constructed on Parcel A; and
WHEREAS, the Marketplace Planned Unit Development/Preliminary Development Plan (PUD/PDP) was sold to New York-based Oxford Properties in the spring of 2021 who, on April 9, 2021, applied for a new Final Development Plan (FDP) to replace the existing entitlements on Parcels A and B and provide for development on Parcel F; and WHEREAS, the new FDP was subsequently modified, and, as currently proposed, is to construct three buildings comprised of a ten-level approximately 421,000 square foot Research and Development building, a pavilion building of about 3,000 square feet of ground floor retail space, and a six-level parking garage accommodating 711 parking spaces; and
WHEREAS, the new FDP proposal (FDP21-001) requires the DA to be modified to show no residential development on Parcel A, and to provide for a monetary contribution as consideration for the provision of 18 affordable housing units on Parcel A; and
WHEREAS, during a study session on April 19, 2022, the City Council discussed a potential monetary contribution from the Applicant to the City’s Affordable Housing Fund as consideration for providing the 18 affordable residential units on Parcel A, and appointed Mayor Bauters and Vice Mayor Medina as an ad-hoc subcommittee to meet with the Applicant to negotiate the terms of the proposed amendments to the DA; and WHEREAS, at a City Council study session on May 17, 2022, the ad-hoc subcommittee presented a summary of negotiated modifications to the DA including: (1) remittance of $20 million to the City’s Affordable Housing Fund, inclusive of any affordable housing impact fee, and the timing of the remittance of the funds; (2) commitment from the
Ordinance No. 22- __
Marketplace Redevelopment Project DA Amendment
City Council Meeting | October 4, 2022
Applicant to support an application to secure affordable housing tax credits for an affordable housing project on the adjacent Christie Sites; and (3) agreement to pedestrianize Market Drive south of 62nd Street between the hours of 10 a.m. and 9 p.m., seven days a week; and
WHEREAS, the above changes to the DA have been outlined in the document entitled “First Major Amendment to the Public Market Development Agreement”, which is attached as Exhibit A and incorporated herein; and
WHEREAS, an environmental checklist has been prepared for the new proposal that confirms that there have been no substantial changes in the proposed project, or to the circumstances under which the project will be undertaken, and no new information of substantial importance exists which would require preparation of a subsequent EIR pursuant to State CEQA Guidelines Section 15162; and
WHEREAS, the Emeryville Planning Commission held a duly and properly noticed public hearing on the proposed DA amendments on August 25, 2022 to solicit public comments and review and consider the proposed amendments, and then voted to recommend that the City Council approve the proposed amendments; and WHEREAS, the City Council held a duly and properly noticed public hearing on the proposed DA Amendment on September 20, 2022; and
WHEREAS, the City Council has reviewed and considered the staff report and attachments thereto, the plans, all public comments, and the proposed First Major Amendment to the Public Market Development Agreement as set forth in Exhibit A attached to this Ordinance and the applicable standards of the Emeryville Planning Regulations (“the Record”);
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF EMERYVILLE DOES HEREBY ORDAIN AS FOLLOWS:
SECTION ONE. PURPOSE AND INTENT
The purpose and intent of this Ordinance is to adopt an amendment to the Public Market Development Agreement to provide for a monetary contribution of $20 million to the City in exchange for removal of the obligation to provide 18 affordable housing units on Parcel A, and to make other related amendments.
SECTION TWO. REQUIRED FINDINGS FOR ADOPTING ORDINANCE
In approving the proposed amendment to the Marketplace DA, as required by Section 9-7.1104 of the Planning Regulations, the City Council makes the following findings:
Ordinance No. 22- __
Marketplace Redevelopment Project DA Amendment
City Council Meeting | October 4, 2022
(1) The development agreement is consistent with the General Plan and any applicable specific plan.
The proposed amendments are consistent with the General Plan because the contribution of $20 million will assist the City in providing affordable housing consistent with the Housing Element of the General Plan, and pedestrianization of Market Drive fulfills the General Plan goal of making Emeryville a walkable city (Goal: T-G-4). (2) The development agreement is in the public interest.
The proposed amendments will allow for construction of more affordable housing and creating new and safe routes for pedestrians, both of which are in the public interest.
SECTION THREE: ADOPTION OF FIRST MAJOR AMENDMENT TO THE PUBLIC
MARKET DEVELOPMENT AGREEMENT
Based on the findings set forth in this Ordinance, and the evidence in the record, the City Council hereby approves the First Major Amendment to the Public Market Development Agreement including: (1) remittance of $20 million to the City’s Affordable Housing Fund, inclusive of any affordable housing impact fee, and the timing of the remittance of the funds; (2) commitment from the Applicant to support an application to secure affordable housing tax credits for an affordable housing project on the adjacent Christie Sites; and (3) agreement to pedestrianize Market Drive south of 62nd Street between the hours of 10 a.m. and 9 p.m., seven days a week, as set forth in Exhibit A, which is incorporated into this Ordinance by this reference.
SECTION FOUR: CEQA DETERMINATION
The project is covered by the Marketplace Redevelopment Project Environmental Impact Report (EIR) certified by the City Council on January 15, 2008 (Resolution No.08-09), which applies to the proposed DA Amendment. As detailed in the Environmental Checklist for Marketplace Parcels A, B and F, which evaluates all impact areas under the California Environmental Quality Act (CEQA), and is included in the Record, there have been no substantial changes in the proposed project, or to the circumstances under which the project will be undertaken, and no new information of substantial importance exists which would require preparation of a subsequent EIR under State CEQA Guidelines Section 15162.
SECTION FIVE: SEVERABILITY
The City Council hereby declares that every section, paragraph, clause and phrase of this Ordinance is severable. If, for any reason, any section, paragraph, clause or
Ordinance No. 22- __
Marketplace Redevelopment Project DA Amendment
City Council Meeting | October 4, 2022
phrase is held to be invalid or unconstitutional, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining sections, paragraphs, clauses or phrases.
SECTION SIX: CODIFICATION.
This Ordinance shall not be codified in the Emeryville Municipal Code.
SECTION SEVEN. EFFECTIVE DATE AND POSTING.
This Ordinance shall take effect 30 days following its final passage. The City Clerk is directed to cause copies of this Ordinance to be posted or published as required by California Government Code Section 33693.
This Ordinance was introduced and first read by the City Council of the City of Emeryville at a regular meeting held on Tuesday, September 20, 2022, and PASSED AND ADOPTED by the City Council at a regular meeting held on Tuesday, October 4, 2022, by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
ATTEST:
MAYOR
APPROVED AS TO FORM:
CITY CLERK CITY ATTORNEY
Attachment:
Exhibit A - First Major Amendment to the Public Market Development Agreement
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