CITY OF SAN MATEO
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CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 19 Section Name: {{section.name}} Account Number: 26-3111 File ID: {{item.tracking_number}} TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Community Development Department
MEETING DATE: November 06, 2023
SUBJECT:
Bay Meadows Phase II Development Agreement Extension Request – Ordinance Introduction RECOMMENDATION:
Introduce an Ordinance to approve a three-year extension of the Bay Meadows Phase II Development Agreement.
BACKGROUND:
The Bay Meadows Phase II Project is an 83-acre transit-oriented development with a range of land uses, including residential, commercial, educational, and public park uses that redeveloped the former Bay Meadows Racetrack, which has a main site address of 2600 S. Delaware Street. The Bay Meadows Phase II area is subdivided into 18 development blocks: five office blocks, four mixed-use blocks, and nine residential blocks. The City Council originally approved the Bay Meadows Phase II Project in November of 2005 when adopting the Bay Meadows Phase II Specific Plan Amendment, Environmental Impact Report, and the Bay Meadows Phase II Development Agreement. The Bay Meadows Phase II Development Agreement (Attachment 2), adopted through Exhibit A to Ordinance No. 17 (2005), provides an 18-year timeframe for the vested rights of the projects and completion of improvements under the Agreement through December 20, 2023.
Bay Meadows Main Track Investors, LLC (“Owner”) has requested a three-year extension of the Development Agreement’s term, from December 20, 2023 to December 20, 2026 due to the impacts of the COVID-19 pandemic and the resulting slow-down in the office market. The Bay Meadows Phase II project developer, Wilson Meany (“Applicant”), has indicated that they are unable to construct the final two blocks (Mixed Use Blocks 2 and 3) within the original Development Agreement term ending on December 20, 2023.
On October 10, 2023, the Planning Commission voted unanimously (5-0) to recommend approval of the extension request.
After introduction and adoption of the Ordinance (Attachment 1), the Owner and City would execute and record the amendment prior to the end of the original Development Agreement term of December 20, 2023.
Development Agreement Extension Request
On August 11, 2023, the Applicant submitted a letter explaining the extension request of the Development Agreement for the Bay Meadows Phase II Project (PA-2023-050) for a period of three years. As outlined in the extension request letter (Attachment 3), the Applicant is seeking a three-year extension of the Development Agreement to extend the total term from 18 years to 21 years, which extends the Agreement’s term to December 20, 2026. The Applicant indicates that the extension is necessary due to the COVID-19 pandemic delaying their ability to complete the development of the final two blocks (MU2 and MU3) by causing ongoing disruption in the office and financing markets.
No other changes to the Development Agreement are being requested. In addition, no changes to the approved project are proposed. As such, the development will remain within the allowable range of office square-footage and residential
CITY OF SAN MATEO
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density and will remain consistent with the City’s General Plan, the Rail Corridor Transit Oriented Development Plan, and the Bay Meadows Phase II Specific Plan Amendment. The original Development Agreement was approved by Ordinance, and an Ordinance Amendment approval by the City Council would be needed to make the requested change to the terms of the Development Agreement.
Section 3.8 of the Development Agreement states that the City cannot impose any further or additional exactions on the development of the project. The exactions applicable to the Project as provided in the Specific Plan and the Development Agreement shall not be modified or renegotiated by the City as a result of any amendment to the Specific Plan, the Project Approvals or the Development Agreement which does not materially increase the density or intensity of development. As such, no further exactions are sought for the extension request. In addition, Section 11.1 of the Development Agreement provides that the City and Developer may amend the Development Agreement by mutual consent in writing, and in a manner provided for in Government Code Section 65868 and Section 8 of the Development Agreement Resolution.
BUDGET IMPACT:
There are no direct fiscal implications to the City’s General Fund associated with this request. The City collected development impact fees at the time of issuance of building permits for development on each block.
ENVIRONMENTAL DETERMINATION:
The City Council certified the Final Environmental Impact report (EIR) for the San Mateo Rail Transit-Oriented Development Corridor Plan and the Bay Meadows Phase II Specific Plan Amendment, in compliance with the California Environmental Quality Act (CEQA) on April 18, 2005. The City Council then approved the Bay Meadows Specific Plan Amendment, re- certified the Final EIR for that project, and adopted the findings and statement of overriding considerations on November 7, 2005. Because there are no substantial changes to the project and no new information has become available since the time of the EIR, no further CEQA analysis is required at this time (CEQA Statute and Guidelines Section 21166).
PUBLIC COMMENTS:
One public comment was submitted prior to this public hearing, which requested more information regarding the Homeowners Association Board composition and indicated a concern for the visual appearance of the MU 2 and MU 3 blocks. This comment was forwarded to the Applicant for response regarding the Homeowners Association. In addition, the Applicant is responsible for upkeep of the visual appearance of all blocks during construction through fencing and maintaining sidewalk access through conditions of approval.
Public comments submitted after publication of this report will be forwarded to the City Council for review and consideration at the public hearing and posted to this item on the City’s Agendas & Minutes Public Meeting Portal as “Post Packet Public Comments.”
NOTICE PROVIDED
In accordance with Government Code Section 65091 and the City’s Municipal Code public noticing requirements, this public hearing was noticed to the following parties at least ten (10) days in advance of the City Council meeting:
•Property owners, residential tenants and business tenants within 1,000 feet of the project site. •The City’s “900 List”, which contains nearly 100 Homeowner Associations, Neighborhood Associations, local utilities, media, and other organizations interested in citywide planning projects; •The City’s Planning “Notify Me” email list; and,
•The interested parties list, which includes interested individuals who contacted the City and requested to be added to the project notification list.
ATTACHMENTS
Att 1 – Ordinance with Amendment to the Development Agreement Att 2 – Bay Meadows Phase II Development Agreement (2005) Att 3 – Extension Request Letter
Att 4 – Public Comment
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STAFF CONTACT
Rendell Bustos, Senior Planner Lisa Costa Sanders, Contract Planner [email protected] [email protected] (650) 522-7211