SHORELINE ENTITLEMENTS
AND DDA AMENDMENT
City Council
Public Hearing
June 21, 2022
BACKGROUND
2 MONARCH BAY SHORELINE SITE
San
Francisco
Bay
Oyster
Bay
Regional
Park
21. Exclusive
Negotiating
Rights
Agreement
(ENRA) with
Cal-Coast
Legally Binding
Commitments to
Shoreline
Development:
DDA, Purchase &
Sale Agreement
& Leases
Planning
Entitlements,
Development
Agreement, DDA
Amendments &
Park Design and
Outreach
Cal Coast
Selected as
Master
Developer
Certified EIR
and General
Plan/Zoning
Amendments
2008 2012 2015 2020 2022
SHORELINE MILESTONES
5 PARTNERSHIP GOALS
Vision for comprehensive
Shoreline master plan
Complementary amenities
for the community and
current shoreline users
Recognizes development
value and funds public
amenities and services
Addresses logical phasing
of development
Requires little or no City
investment
Results in self-supporting
shoreline
COUNCIL APPROVED CONCEPT PLAN (2020)
APPROVED SCOPE
OF DEVELOPMENT
Cal-Coast
▪ Hotel with attached
restaurant
▪ Banquet /restaurant
▪ >500 housing units:
o 285 apartments
o 200-215 single-family
townhomes
▪ Market/café/retail
City
▪ Replace library
▪ 18 acres of public areas
including 9-acre park
HOTEL,
RESTAURANT,
MARKET
APARTMENTS
GOLF COURSE
& BUTTERFLY
HABITAT
SINGLE-FAMILY
TOWNHOMES
PARK
LIBRARY
6 COUNCIL APPROVED AGREEMENTS
Disposition and Development
Agreement (DDA)
▪ Scope of Development &
Schedule of Performance
▪ Developer/City
Responsibilities
▪ Labor Requirements
Purchase & Sale Agreement –
Single Family/ Townhome Parcel
▪ Based on appraisal
▪ Sale precedents, including
golf course improvements
Lease Agreements – Hotel,
Multifamily, Restaurant, Market
▪ Long term land leases
▪ Minimum rent & % rent
▪ Lease precedents
▪ Schedule of Performance
▪ Maintenance
7 HOTEL,
RESTAURANT,
MARKET
APARTMENTS
GOLF COURSE
& BUTTERFLY
HABITAT
SINGLE-FAMILY
TOWNHOMES
PARK
LIBRARY
Existing Leases
New Long-Term Leases
Purchase & Sale Agreement
PROCESS OVERVIEW SHORELINE SCHEDULE
we are here
Due Diligence
&
Entitlements
Coordination
Plan Revised
Agreements
Negotiated &
Prepared
Agreements
Adopted
Planning & Development
Entitlements
Regional
Agency
Review and
Permitting
Construction
2017 2019 2020 2021 2022 2023
Park Design & Outreach
8 PROJECT ENTITLEMENTS
9 REQUESTED
ENTITLEMENTS
Planned Development Project
Establishes development standards
and approved uses for the site
Site Plan Review
Building and landscape designs and
site improvements
Development Agreement
Vests entitlements and specifies key
requirements and phasing details
10 HOTEL
11 ▪ Hotel with attached
restaurant
▪ 210-rooms
▪ 5-stories
▪ 158,334 sq. ft.
▪ Amenities: bar, dining
buffet, meeting
rooms, fitness center,
business center,
outdoor seating, and
a roof deck
12 RESTAURANT/BANQUET
13 ▪ Restaurant/banquet facility
▪ 15,000 square feet +/-
▪ Two-story
▪ Roof deck
MARKET
14 ▪ Flexible Commercial Space
▪ Market/Café/
Retail
▪ 2,500 Square Feet
▪ One-Story
▪ Outdoor Dining Space
APARTMENTS
15 ▪ 285-unit Apartments
▪ 183 1BR units
▪ 102 2BR units
▪ 5-stories
▪ Amenities:
▪ Pool
▪ Fitness Center
▪ Club Room
▪ Roof Deck
16 17
SINGLE-FAMILY/TOWNHOMES
18 ▪ 206 “For-sale” homes
▪ Each home will have a
standard two-car garage
▪ 144 detached single-family
homes
▪ 5 plans
▪ 3-4 bedrooms / 2.5-3 bathrooms
▪ 2,150 – 2,620 sq. ft.
▪ 62 townhomes
▪ 3 plans
▪ 3-4 bedrooms / 3.5 bathrooms
▪ 1,820 – 2,200 sq. ft
19 20
21 ▪ Site must be raised to address
floodplain requirements
▪ Structures must meet sea level rise (SLR)
projections to 2070
▪ FEMA base flood elevations + 3.5’ SLR
based on high emissions scenario from State
of California Sea-Level Rise guidance
▪ Community Facilities District (CFD) will
have bonding capacity for future
adaptation efforts
FLOOD PLAIN AND SEA LEVEL RISE
2021 Income Levels
100% AMI = $ 125,600
(4-person household)
2015-2023 RHNA Permits Issued
2015-2020
% Progress
Permits Issued
Very Low Income
(<50% AMI) 504 132 26%
Low Income
(50-80% AMI) 270 126 47%
Moderate Income
(80-120% AMI) 352 0 0%
Above Moderate
(>120% AMI) 1,161 83 7%
Total 2,287 341 15%
ALIGNMENT WITH HOUSING GOALS
13 Workforce Units <135% AMI
470 Above-Mod Units >120% AMI
8 Moderate Units (for-sale) at
<120% AMI
Affordable Housing Trust Fund
Contribution: $2.2M
SHORELINE PROJECT PROVIDES
Mix of densities and product
types (for-sale and rental)
ENVIRONMENTAL REVIEW
24 ENVIRONMENTAL REVIEW
✓ 2015 Environmental Impact Report (EIR)
analyzed potential environmental impacts of
previous concept plan
✓ Determined potential impacts and developed
appropriate mitigation measures to lessen
impacts
✓ Three EIR Addenda prepared – concluded the
2015 EIR adequately identified potential
impacts and mitigations
o First Addendum – updated concept plan in 2020
o Second Addendum - VTTM 8633 to subdivide western
parcels
o Third Addendum – updated project scope in entitlements
KEY MITIGATION MEASURES
▪ AIR: Dust mitigation, special EPA certified equipment for construction emissions ▪ BIO: Monarch butterfly roosting habitat protection program, special status fish and aquatic life controls, nesting birds, wetlands
▪ GEO: Geotechnical engineer recommendations incorporated into building design to address site-specific soil conditions, foundation designs, etc. ▪ GHG: Electric vehicle charging, energy-efficient buildings 15% above code, energy-star appliances
▪ HYDRO: Sea level rise and FEMA flood zone requirements ▪ NOISE: Construction vibration and noise mitigations
▪ TRAFFIC: On and off-site improvements (new signal, signal optimization, etc.) and Transportation Demand Management (shuttle, bike parking, transit passes, etc.)
AGREEMENTS
27 CONDITIONS OF APPROVAL
asf
28 Prior to Site Work &
Grading
• Construction Phasing and
Management Plans
• Mitigation Measure
Compliance Plan
• Addn’l Infrastructure Studies
& Plans (water, sewer, etc.)
• Final plans for geotech, sea
level rise & floodplain
• Monarch Butterfly Roosting
Habitat Protection Plan
• Public Improvement
Agreements
Prior to Building Permits
• Enhanced architectural
Plans
• Final landscape, lighting
and irrigation plans
• Master Sign Program
• Transportation Demand
Management Plan
• Acoustical Study
• Floodplain Map revision
• FAA Approval
Additional Conditions
Standard & Project-Specific
Requirements in Different
Areas:
• Inclusionary Housing
• Sustainability
• Construction Operations
• Maintenance & Operations
• Parking Management
• Building
• Engineering
• Environmental Services
DEVELOPMENT AGREEMENT
29 Implementation
Framework
• Vests Planning Approvals
• Phased Construction
• 10 yr +5 yr extn.
• Timing of Public Benefits
• Requirements Prior to
Construction include:
o Additional technical
development details
o Construction Phasing and
Management Plans
o Transportation Demand
Management Plan
Developer Obligations
• Site & Public Improvements
• Park Promenades, Monarch
Bay Dr, Mulford & Pescador
Point Dr, golf course
• Site Preparation & Sea
Level Rise Mitigation
• Participate in Community
Facilities District
• Provide Community Benefits
City Obligations
• Community park
• Harbor clean-up
• Impact Fee Credits per
code
• Support timely processing
of future permits to
implement vested project
approvals
• Procedure for assignment
of development rights and
responsibilities
DDA COMMITMENTS
30 Approved Project Scope
• Developer Elements:
• Hotel
• Restaurants
• Market
• Multi-Family
• Single-Family
• Infrastructure/Off-site improvements
• City Elements:
• Park
• Harbor
• Library
Project Requirements
• Scope of Development
• Details and responsibilities for each
Element
• Schedule of Performance
• Next Steps
• Requirements to meet
• Order of steps/due dates
• Construction Management Plan
• Negotiated Community Benefits
Committed Next Steps
• Tentative Map and Planning
Entitlements
• Obtaining Financing
• Property Sale/Leases
• Permits for Site Prep and Building
• Development
DDA & PSA – AMENDMENT
31 Schedule of Performance
• Updates to provide
further certainty
• Site Preparation during
initial phase
• Timeframes for
construction to start and
finish
• Community benefit &
Infrastructure timing
• Specific Rent Start Date
Closing Requirements
• Adjustments as needed
based on accelerated
closing timeline
• Required prior to close:
• Single Family Horizontal
Financing Info
• Project Labor
Agreement
• Insurance, entitlements,
DDA compliance
Leases, etc.
• Comprehensive west side
Site Preparation creates
developable sites
• Construction- and tenantrelated items required
prior to permits
• Requirements for securing
sites in interim
• Golf Course License
Agreement
• El Torito Lease
Continuance
COMMUNITY BENEFITS & NEXT STEPS
32 33
AMENITIES & RECREATION
• 9-acre public park
• Community-led design
• Informational signage about history,
native inhabitants and flora/fauna
• Bay Trail extension
• Converting acres of paved surface
and inner harbor to more naturalized
state
• Improving access for non-motorized
watercraft, a lower-barrier means to
access Bay
• New Mulford-Marina Library
• Reconstruct Monarch Bay Drive, incl.
Class I bike lane
• Construct public facilities adjacent to
private elements: Park Promenades,
Mulford & Pescador Pt. Drives, Park
Parking Lot, boat launch
• Redesigned 9-hole golf course
• Hotel & banquet space to meet needs
of community & businesses
• Retail and rental facilities to meet
needs of park users
• Fiber Optic Internet
34 SUSTAINABILITY
Site and Infrastructure
• Sea level rise mitigation
• Recycled water for Single Family
landscaping
• Protect natural habitats,
incl. Monarch Butterfly
Buildings
• Hotel and Multifamily LEED Certified
• Solar photovoltaic (PV) panels on
Single Family and Townhouse roofs
• 15% more efficient than Code
• Electric heating, appliances, etc.
Transportation
• Transportation Demand Management
(TDM)
• Shuttle, bike storage, rideshare, transit
subsidies, etc. to be finalized before
permits are issued
• 20% commute hour reduction goal and
10% daily trip reduction goal
• Additional EV Parking
• Apartments: 40% EV Ready and
60% EV Capable
• Non-Residential: 10% chargers
installed, 15% ready
• Class I (separated) Bike path
• Off-site transportation improvements
35 SKILLED LABOR
•Project Labor Agreement
•Union craftworkers
•Labor Peace Agreement
•Hotel workers
•Local Hiring
•Good jobs, support local
economy
•Up to 35% increased costs
SIGNIFICANT REVENUE GENERATION
$400M+
Financial investments
$350M private investment
$40M public investment
(funded by $29M sale of
property & fees)
~$2.3M
Long-term annual revenues
$1.4 M/year lease payments (min)
$900,000/year TOT
Increased annual property tax
36 ~$15M
Impact & permit fees
21 affordable units
$2.2M Affordable Housing Fee
$9.08M Park Fees
$2.8M School Fees
Community Facilities District will contribute to
ongoing maintenance costs for Shoreline area
CITY PARK UPDATE
June •Pop-Ups & Tabling at Farmers’ Market
•Community Outreach Meeting
Senior Community Center (SCC), 2pm
•Presentation to Recreation & Parks Commission
City Hall – Sister Cities Gallery, 7pm
July 6
•Community Outreach Meeting July 13 Marina Community Center (MCC), 7pm 37 Community engagement on open space/aquatic
park design to begin soon! Tentative schedule:
Adopt a Resolution
Adopting Third EIR Addendum and
Approving a Planned Development Project
and Site Plan Review for Private Elements
01 Introduce an Ordinance
Authorizing City Manager
to Execute Development
Agreement
02 Adopt a Resolution
Authorizing City Manager
to Execute 2nd
Amendment to
PSA + DDA
03 RECOMMENDATION
▪ Project meets goals and vision for comprehensive
Shoreline master plan envisioned since 2008 as a result of robust community outreach and planning efforts
▪ Significant milestone for long-awaited project of
communitywide significance
▪ 2nd Reading of Ordinance tentatively scheduled for July 5, 2022
▪ CFD Formation Hearings anticipated in Summer and Fall ▪ Further preparation of technical studies and permits
prior to start of on-site construction, as detailed in the Conditions of Approval
▪ Property sale and leases anticipated by end of 2022
Next Steps