SAN COUNCIL MEMBERS
CITY OF SAN MATEO Amourence Lee, Mayor
Lisa Diaz Nash, Deputy Mayor
City Council Special Meeting Rich Hedges
May 15, 2023 Adam Loraine
5:30 PM Rob Newsom Jr.
CALIFORNIA
AGENDA ITEM
4th and Railroad Parking Lot - Bespoke Development Term Sheet Review and provide feedback on the proposed Term Sheet for the public-private partnership Bespoke development project, which includes the City-owned parking lot at 4th and Railroad Avenue.
CEQA: This review of the Term Sheet is not a project subject to CEQA, because it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. (CEQA Guidelines Section 15378(b)(5).) The proposed Bespoke development project will be subject to environmental review which is being completed through the entitlement process.
CITY OF SAN MATEO
www.cityofsanmateo.org
CALIFORNIN Agenda Report
Agenda Number: 1 Section Name: {{section.name}) Account Number: 10-1311 File ID: (fitem.tracking_number}} TO: City Council
FROM: Drew Corbett, City Manager
PREPARED BY: City Manager's Office
MEETING DATE: May 15, 2023
SUBJECT:
4th and Railroad Parking Lot - Bespoke Development Term Sheet RECOMMENDATION:
Review and provide feedback on the proposed Term Sheet for the public-private partnership Bespoke development project, which includes the City-owned parking lot at 4th and Railroad Avenue.
BACKGROUND:
The City is currently party to an Exclusive Negotiating Agreement (ENA) for the redevelopment of the City-owned surface parking lot located at 4th and Railroad Avenue, directly across the railroad tracks from the Kiku Crossing development. The ENA is with a three-party development team comprised of Prometheus, Harvest Properties, and Alta Housing (a non-profit affordable housing developer) and is intended to be in place throughout the entitlement phase of the project. The City entered into the ENA in October 2021 and has since been working with the development team to refine the project, now referred to as Bespoke, through the planning entitlement process. The Bespoke project completed the pre-application phase of its planning review and submitted their formal planning application in February 2023.
The Bespoke project will redevelop the entire block located between B Street and Railroad Avenue between 4th and 5th Avenues. The project includes 60-units of affordable housing, 150,000 square feet of office space, 12,000 square feet of retail space, and approximately 4,500 square feet of community space intended for Self-Help for the Elderly. A shared underground parking garage will be built across the site which will include 38 residential parking spaces and 80 commercial spaces.
As the project has evolved, so have the deal terms related to the City's provision of land and funding support for the affordable housing component of the project. This report is intended to provide the City Council with an update on the project status and to get Council feedback on the proposed deal terms as outlined in the Term Sheet, included as Attachment 1. In addition to the Term Sheet, the development team has provided a letter outlining their commitment to the project, included as Attachment 2.
Developer Selection History
The City Council adopted a resolution declaring the surface parking lot at East 4th Avenue and South Railroad Avenue, known as the Talbot's parking lot, as "Surplus Land" at the January 4, 2021 City Council meeting. Following this declaration, staff released a Notice of Surplus Lands Availability to all housing developers that have registered with the State Department of Housing and Community Development (HCD). In response to this notice, the City received four letters of interest for the development of affordable housing on the site.
The City requested that the interested parties respond with a proposal responding to the following criteria:
CITY OF SAN MATEO
1. Develop an 100% affordable housing project featuring a range of unit sizes from studios up to 3-bedrooms.
Project should accommodate a mix of incomes and age ranges.
2. Maximize the number of units that can be accommodated on the site by building a 7-story project.
3. Provide a ground floor space that can be used by the non-profit Self-Help for the Elderly. It can be assumed that they can contribute some amount to rent, but not likely a market rent, such as would be charged to a retailer. They will also provide some funding for their own tenant improvements.
4. The City will contribute the land for the project in the form of a long-term ground lease.
5. Specify the expected ask of financial assistance for the affordable housing from the City. It is expected that the development team will minimize the City's financial assistance to the best possible extent by applying for multiple outside sources of financing.
6. Indicate if the development team would consider trying to acquire the parcels immediately fronting the Talbot's parking lot along B Street for a larger development site.
The City received three responsive proposals based on these criteria. After going through an evaluation process, on July 19, 2021, the City Council directed staff to negotiate an Exclusive Negotiating Agreement (ENA) with the Prometheus/Harvest Properties/Alta Housing team to explore the redevelopment of the City's parking lot site. The City Council subsequently approved the ENA at the October 4, 2021 meeting.
The development team was selected based on a few critical factors that set their proposal apart from the other others.
First and foremost, they were the only team that was willing to consider acquiring additional parcels. They were already under contract for the former Talbot's store site and were willing to explore acquiring the remaining two parcels on the block. If those two parcels were left out of the development, there would be an abrupt transition between the one- story buildings on B Street and the 7-story affordable building immediately behind them. In addition, one of those parcels had easement rights across the City's surface parking lot in order to access their parking stalls in the back of their building. Maintaining this access would have been a major challenge. In addition, the development team proposed a mix of unit sizes that make the project family friendly, offered the highest ratio of on-site parking for the housing, and served income levels up to 70% of Area Median Income (AMI) which addresses the Council's interest in serving both low-and middle-income households.
Since entering into the ENA the project has evolved from the original development proposal. The development team was successful in acquiring development rights to all of the parcels on the block. This resulted in an increase in the office square footage from the initial proposal of 118,000 square feet to 150,000 square feet. Additionally, they were able to increase the number of affordable housing units from the original proposal of 52 to a total of 60. And finally, to address concerns about the availability of parking for the residents, the developer is proposing to offer shared parking where the residential units can access a portion of the commercial spaces during non-business hours.
The development team has met all of their obligations under the ENA to date and is currently ahead of the proposed schedule of performance in the ENA. The project is expected to be before City Council for approval of their final entitlements in early 2024.
Key Deal Terms
The Term Sheet summarizes the key deal terms for the public-private partnership. These terms will form the basis of the Disposition and Development Agreement that the City and developer will enter into at the time that the project receives its entitlements. A summary of the key project terms is as follows:
• The development team will enter into 99-year ground leases for the City's parcel at the rate of $1 per year. • The City's parcel will be divided into two separate ground leases, with 13,320 square feet of the parcel being used for the affordable housing and 3,170 square feet being used for the commercial development. • The City will contribute $2.75 million to support the construction of the affordable housing from the City's
CITY OF SAN MATEO
dedicated affordable housing funds. The specific source of funds from within the City's housing funds is still to be determined
• The development team will contribute $2.9 million to support the construction of the affordable housing. • The development team will finance and construct the shared underground parking garage across the entire site and create separate pads for the development of the affordable housing building and the commercial building.
The commercial building will cover the full cost of the construction of the parking garage, including the spaces dedicated to the affordable housing.
• The development team will provide ground floor space in the affordable housing building at a substantially subsidized rent to Self-Help for the Elderly to allow for their relocation from the Central Park Recreation Center, which will be necessitated by the implementation of the Central Park Master Plan. • In order to allow for the construction of the underground parking garage and the various site ownership mechanisms, the development team will use a lot tie agreement to allow for development across parcel lines. • Due to the construction readiness requirements of affordable housing financing, the underground parking garage must commence construction prior to the affordable housing project applying for funding. As a result, the commercial component is likely to be completed prior to the housing. The length of this differential between the completion of the commercial and the affordable housing components of the project will depend on whether the affordable housing has to go through multiple cycles in order to obtain construction funding from the typical affordable housing financing sources, including the federal tax credits. • The project will be subject to prevailing wage and DIR registry requirements.
The majority of these deal terms have remained constant from when the development team was selected. The primary changes are that the City contribution for the affordable housing has increased from $2.0 to $2.75 million to provide financial assistance for the additional 8 units and the proposed use of the lot tie agreement to allow for the construction of the shared garage across multiple parcels. In addition, the extent of the City parcel that would be used to support the commercial development was not previously specified. Staff has requested that the development team explore the financial feasibility of using the full extent of the City parcel for affordable housing. This could result in an increase in the number of affordable units included in the project but will also likely require an increase in the City's funding contribution to the housing. In order to accomplish this, the development team will explore ways to preserve the commercial floor area ratio through design changes as well as analyzing the ability of the affordable housing project to obtain financing for the additional units.
BUDGET IMPACT:
The Term Sheet requests that the City commit our City-owned parcel to this project for a 99-year ground lease at $1 per year and provide $2.75 million to support the affordable housing development. This project will be subject to all of the City's development impact fees, including but not limited to traffic impact fees, commercial-linkage fees, and park impact fees.
ENVIRONMENTAL DETERMINATION:
This review of the Term Sheet is not a project subject to CEQA, because it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. (CEQA Guidelines Section 15378(b)(5).) The proposed Bespoke development project will be subject to environmental review which is being completed through the entitlement process.
NOTICE PROVIDED
All meeting noticing requirements were met.
ATTACHMENTS
Att 1 - Term Sheet
Att 2 - Letter from Development Team
CITY OF SAN MATEO
STAFF CONTACT
Kathy Kleinbaum, Assistant City Manager
[email protected]
(650) 522-7153
CITY OF SAN MATEO
Bespoke Deal Terms:
Big Picture Project Details:
• Parcels Included: Entire block bounded by 4* Ave, 5'h Ave, Railroad Ave, and B Street inclusive of the City owned parking lot, and the buildings that include Talbot's Toyland, Tomatina, and Pokeatery stores. See Figure 1 below
APN's: 034-179-010, 034-179-020, 034-179-030, 034-179-040, 034-179-050, and 034-179-060
S RAILROAD AVE
• FORMER CITY PARKING LOT - LOTS 2, 3. 4
• TALBOTS LOT LOTS LOTS1,7,8
Z EXISTING BUILDING OUTLINE
PARCEL A - CITY LOT
E 4TH AVENUE E 5TH AVENUE
PARCEL C
PARCEL B PARCEL 1 - TALBOTS
SOUTH B STREET
Figure 1: Development project included parcels
• 60-units of family-friendly affordable housing within a 76' tall 7-story structure • 50% of units to consist of two-and/or three-bedroom units Income levels to range between 30% and 70% of Area Median Income • State Density Bonus Law utilized to allow for greater density and height • Height noted excludes the mechanical penthouse
• Roughly 150,000 sf of commercial office within a 74 foot tall 5-story structure State Density Bonus Law utilized to allow for greater height
• Height noted excludes the mechanical penthouse
• Roughly 12,000 square feet of ground floor retail provided to improve the downtown retail experience along South B Street, 4th Avenue, and 5th Avenue • Roughly 4,500 square feet of ground floor space in the affordable housing building along 4th Avenue provided to Self Help for the Elderly inclusive of:
• Kitchen & prep space
• Multi-purpose room with seats for up to 120 individuals • Administrative office space
• 118 total parking stalls of which 38 are dedicated to residential; additional commercial stalls will be available after working hours for the residential building. 30 of the 38 dedicated residential stalls will be in mechanical parking lifts.
Financial Terms:
• City to contribute the city-owned parking lot to the development to allow for the full block development via a non-escalating 99-year ground lease at $1 per year City to contribute $2.75M to the affordable housing project in the form of a residual receipts loan
Commercial Developer (Prometheus and Harvest Properties) to contribute $2.9M to the affordable housing project
• Commercial Developer to construct and finance the entire below grade parking, inclusive of residential parking
• Self Help for the Elderly shell space to be delivered and rent to be substantially subsidized Details of Property Transaction/Construction Phasing:
• City-owned parcel to be allocated primarily to the residential, roughly 13,300 square feet, with 3,200 square feet allocated to the commercial structure. See Figure 2 below
S RAILROAD AVE
Residential extent on city-owned parcel
Commercial extent on city-owned parcel
•
13,320 st
PARCEL A - CITY LOT 3,170 sf
4TH AVENUE
Figure 2: Residential & Commercial extents on city-owned parcel
• Project to utilize a lot-tie mechanism to allow for the residential project to utilize and share maintenance of the below-grade garage to be constructed by the commercial office.
Entitlement term length to be 10 years from entitlement approval to allow for the affordable housing project to apply for multiple funding rounds.
Exclusive negotiating right with respect to the City ground leases through October of 2024.
Commercial project will commence construction first, as it is the builder of the garage, and will turn over the ground floor slab as a "pad" for the residential project to commence construction. Neither construction nor occupancy of the commercial project will be conditioned in any way on the commencement, completion or occupancy of the residential project post "pad" handover
Residential project to apply for funding post pad handover in order to meet project readiness criteria for federal tax credit applications, but will utilize best efforts to acquire funding in advance or at pad handover.
• Project to comply required Prevailing Wages & DIR Registration
ALTA HARVEST O PROMETHEUS
HOUSING PROPERTIES
RE: Bespoke Cover Letter
April 28th, 2023
City Council of San Mateo
City of San Mateo
330 W 20th Ave
San Mateo, CA 94403
Dear Council Members,
Over the past two and a half years, our collective team has engaged with City Staff, the Planning Commission, and the previous and current City Council on our public private partnership project, Bespoke, encompassing the entire city block bounded by 4th and 5th Avenue, B Street, and Railroad Avenue. We are excited to come back in front of you this calendar year to reaffirm our previously stated goal of providing affordable housing, developing an extension to the successful B Street Retail environment, being a champion for local businesses, and designing a project that maintains the fabric of the surrounding neighborhood.
The purpose of this letter is to provide a brief overview of the applicant team, the history of the Bespoke project, what we have heard from the community during the course of our development, and a summary of the current development project.
Development Team
The applicant team is comprised of Harvest Properties, Prometheus Real Estate Group, and Alta Housing - all locally-based, highly experienced, and community-focused developers. Harvest and Prometheus have been active in the San Mateo market for over five decades and currently manage approximately 320 residential units and 850,000 square feet of office space in San Mateo. Prometheus is currently developing the former Trag's site located at 303 Baldwin site in Downtown San Mateo, which will create a high- quality, uniquely designed building with the goal of enhancing the public realm near the Downtown Caltrain station and serve as the company's new headquarters. Harvest properties is currently under construction on a 290 unit home development that will replace four office building totaling 225,000 square feet and provide a significant amount of for-sale entry level housing. Alta Housing has been committed to providing affordable housing in Silicon Valley since its inception over 50 years ago with the help of local community leaders. Known for innovative development, outstanding resident support, and high-quality maintenance of its buildings, Alta Housing manages over 850 units to house more than 2,000 low-income residents across the Bay Area.
History of Bespoke
The history of the Bespoke project dates back to the summer of 2020 when the applicant team started to have informal discussions with the City of San Mateo regarding its parcel on 4th Avenue and Railroad
ALTA HARVEST O PROMETHEUS
HOUSING PROPERTIES
Avenue. Those discussions subsequently developed into a Request for Proposals from the City of San Mateo which formally accepted the applicant's proposal in the second quarter of 2021. Since then, the applicant team has collaborated with City Staff to execute an Exclusive Negotiating Agreement and meet an agreed upon schedule to submit the Preliminary Title Report, Phase I and Geotechnical Studies, Pre- Application, and Formal Entitlements Application in addition to completing the applicant-led CEQA studie and commencing the CEQA scoping necessary for the project. Throughout the past two and a half years the applicant team has collaborated with City Staff and spent millions of dollars in pursuit of the best development project.
What Our Team Has Heard
The development team has spent considerable time reaching out to and connecting with San Mateo residents, local retail partners, and City Leadership throughout official City-led sessions to informal coffee meetings in Downtown. The themes we have heard from these various sessions are as follows:
" Provide affordable housing
;, Champion local businesses
* Create an active retail environment
* Concentrate jobs around transit
*; Maintain the fabric of the neighborhoods
Our development project has responded to these themes and we are excited to share with the City Council our currently proposed project.
Bespoke Project Summary
The Bespoke project includes 60 residential units, an increase of eight units from the Request for Proposal response, that will be designated as family-friendly units, meaning that over 50% of the units are two-and three- bedroom - housing up to 260 individuals. All of the units will be income restricted between the 30% to 80% area medium income threshold. The housing project is supported by 38 dedicated parking spaces in addition to spaces shared with the commercial office after typical working hours. The ground floor of the housing project includes a dedicated space for Self Help for the Elderly, a local non-profit stalwart of San Mateo, which provides services to over 40,000 seniors in the San Mateo community and the Bay Area.
The curated development locates approximately 12,000 square feet of retail storefront space along B Street, wrapping around the corner onto 4th and 5th Avenues, allowing for the extension of San Mateo's already lively downtown core. Control over the entire block allows for the project to put forth a continuous design aesthetic that improves the pedestrian experience across the entire block and reflects the City's stated goals regarding pedestrians in the downtown.
The commercial portion of the project includes a total of ~150,000 square feet of office space. This office project reflects the City's stated desire of developing new commercial office in smart locations; i.e. close
ALTA HARVEST O PROMETHEUS
HOUSING PROPERT
to transit and close to existing retail cores - helping to provide a stable daytime population in support of downtown. This project ticks both of those boxes. Secondly, the project strives to be on the leading edge of sustainable design including a mass timber structure, LEED Gold Certification as well as WELL Building Core & Shell Certification, and Carbon Neutrality. Finally, the commercial project will pay approximately $20 million in impact fees and $4.3 million in commercial linkage fees.
To allow this collective project to move forward, the following commitments by the City and the Commercial developer are included:
* City contribution of $2.75M to the housing project in the form of a residual receipts loan •* City to contribute the city-owned parking lot via a non-escalating 99-year ground lease at $1 per year
* Commercial Developer to contribute $2.9M to the affordable housing project * Commercial Developer to finance and construct the parking garage inclusive of the housing project's parking
Greater detail on all of the project's deal terms can be found in the Term Sheet document.
We appreciate the time to update the City Council as to the status of our public-private partnership and hope that Bespoke can serve as a template for future public-private partnerships where a commercial development can provide economic support to catalyze housing production for the community. We look forward to discussing the project's deal terms in greater detail with you all.
Sincerely,
The collective Alta, Harvest, and Prometheus Team
From: Edward Evans
Sent on: Friday, May 12, 2023 3:59:37 PM
To: City Council (San Mateo) <[email protected]>; Clerk <[email protected]>
CC: Amourence Lee <alee @cityofsanmateo.org>; Lisa Diaz Nash <[email protected]>; Richard
Hedges <[email protected]>; Adam
Loraine <[email protected]>; Rob
Newsom <[email protected]>; Douglas M. Chesshire Subject: Carpenters Local Union 217 Support Letter for 445 Southg B Street Project Attachments: Local 217 Support Letter.pdf (64.86 KB)
Good morning Council Members and Madam Clerk,
Please see Carpenters Union Local 217's attached letter of support for the Harvest Properties proposed project located at 445 South B Street. Thank you.
All the best,
Ed Evans
Senior Field Representative/Financial Secretary-Treasurer Local 217, San Mateo County
Nor Cal Carpenters Union
"Any time you have an opportunity to make a difference in this world and you don't, then you are wasting your time on earth." Roberto Clemente
ARPENTER
CARPENTERS UNION LOCAL 217
SAN MATEO COUNTY
1153 CHESS DRIVE • SUITE 100 • FOSTER CITY, CALIFORNIA 94404-1197 • (650) 377-0217 May 12, 2023
City of San Mateo
City Council
330 West 20th Ave.
San Mateo, CA 94403
RE: Carpenters Union Local 217 Support for 445 South B St.
Dear: Mayor Lee & Fellow Councilmembers,
The members of Carpenters Local 217 in San Mateo and the surrounding Bay Area strongly support the approval and development of 445 South B Ave. This project will not only provide much-needed housing in the area, it will also generate hundreds of union construction jobs in San Mateo and provide an opportunity for local apprentices, including women, minorities, veterans and at-risk youth, to begin or continue a career in the construction industry.
The Bespoke project has highlighted the best in what development should look like in the City of San Mateo. With the creation of 60 housing units, and 160 thousand sf. of commercial space, this development falls in line with the goals of both the City and County when it comes to adding affordable housing, walkable ecosystems and creating viable work opportunities for the construction workers in the area. While creating an economic opportunity that will help create small business diversification within the City, promoting equity and inclusion and adding additional tax revenue to the City.
The Bespoke project will enhance the City of San Mateo for many years to come and by creating opportunities for local residents and businesses, San Mateo will continue to lead the way on what responsible development looks like.
With this Development Team's commitment to the City of San Mateo, the Carpenters Union, residents, and our community at large, we urge you to support this project.
Sincerely,
Ed Evans
Senior Field Representative
Self-Help for
the Elderly 731 Sansome Street, Suite 100 | San Francisco, CA 94111-1725 t: 415) 677-7600 | f: (415) 296-0313 | e: [email protected] Providing strength, hope and empowerment to seniors since 1966 www.selfhelpelderly.org
*23MAY15 10:12AM
Please include ii Packet for
City Council Study Session at 5:30 pm
tonight 5/15/2023.
Ke: Bespoke Project
thank you.
Debbie Soon
Self-Help for the Elderly
Advisory Board.
San Francisco San Mateo South Bay Alameda & Contra Costa 415.677-7500 650.342.0822 408.733.1883 510.336.0144
601 Jackson Street 50 East Fifth Avenue 550 East Remington Drive 2400 MacArthur Boulevard San Francisco, CA 94133 San Mateo, CA 94401 Sunnyvale, CA 94087 Oakland, CA 94602 Self-Help for
the Elderly 731 Sansome Street, Suite 100 | San Francisco, CA 94111-1725 t: (415) 677-7600 | f: (415) 296-0313 1 e: [email protected] www.selfhelpelderly.org Providing strength, hope and empowerment to seniors since 1966 Dear City Staff, Planning Commissioners,
and City Council Members,
As a resident of San Mateo and a friend of Self-Help for the Elderly Senior Activity Center in San Mateo Central Park, I am writing to express my support for the mixed-use development project, Bespoke (lead developer is Harvest Properties), which will offer Self-Help a permanent home for its Senior Activity Center.
For over 30 years, Self-Help for the Elderly (SHE) has been dedicated to serving seniors in the City of San Mateo regardless of race, culture, gender or physical capability. In year of 2020- 2021, the organization served over 30,000 meals. At the height of the pandemic, SHE quickly pivoted and was able to convert dine-in meal service to take-out and delivery orders. It also expanded its home delivery service to reach the North Central district of San Mateo with an additional 15,000 home delivery meals, demonstrating SHE's unwavering commitment to meeting the critical needs of our cherished community members.
However, as you are no doubt aware, the organization's current Central Park facility lease will expire June 2025 in anticipation of the launch of the Central Park improvement project. The Bespoke project offers a timely and much-needed solution to this challenge, providing a new permanent home for Self-Help for the Elderly that is thoughtfully designed with the organization's program and functional needs in mind. The proposed space consists of approximately 4,500 sq. ft., and it will be delivered at substantially below market rent.
Valuing family is a core value of the SHE Senior Activity Center and its seniors. In addition to providing SHE a permanent home, the Bespoke project plans 60 units of much needed family- friendly 100% affordable housing, bringing multi-generational workforce housing to Downtown San Mateo and helping to concentrate jobs around transit.
As a member of the community of San Mateo, I strongly support the timely approval of the Bespoke project so that the future home for Self-Help for the Elderly can be delivered as soon as possible. This project will have a profound and positive impact on our community by creating jobs, providing much-needed affordable housing, and last but not least, providing the home urgently needed by Self-Help for the Elderly, an essential local non-profit organization.
Thank you for your careful consideration of this letter, and for all that you do to make our community the vibrant and thriving place that I call "home".
Sincerely,
(Seeittached)
San Francisco San Mateo South Bay Alameda & Contra Costa 415.677-7500 650.342.0822 408.733.1883 510.336.0144
601 Jackson Street 50 East Fifth Avenue 550 East Remington Drive 2400 MacArthur Boulevard San Francisco, CA 94133 San Mateo, CA 94401 Sunnyvale, CA 94087 Oakland, CA 94602 Petition In Support Of Bespoke Development Project
As a resident of San Mateo and a friend of Self-Help for the Elderly Senior Activity Center in San Mateo Central Park, I am signing to express my support for the mixed-use development project, Bespoke (lead developer is Harvest Properties), which will offer Self-Help a permanent home for its Senior Activity Center.
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Deborah M Soor
Petition In Support Of Bespoke Development Project
As a resident of San Mateo and a friend of Self-Help for the Elderly Senior Activity Center in San Mateo Central Park, 1 am signing to express my support for the mixed-use development project, Bespoke (lead developer is Harvest Properties), which will offer Self-Help a permanent home for its Senior Activity Center.
Print Name Address Signature
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20 Shu Lin Ho
22 NORMAN CO CE
23 LORETTA• COLE
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Petition In Support Of Bespoke Development Project
As a resident of San Mateo and a friend of Self-Help for the Elderly Senior Activity Center in San Mateo Central Park, I am signing to express my support for the mixed-use development project, Bespoke (lead developer is Harvest Properties), which will offer Self-Help a permanent home for its Senior Activity Center.
Print Name Address Signature
26 HENRY LiNG
27 MANUEL L- TAN
28 FABIANA N. TaN
29 WiLLIAM WENT
30 MAXURIE WEBITUR
31 HAI LUNG
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38 David Themugraha
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45 Doris Chie
46 Alex chen
47 JoY Chen
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Petition In Support Of Bespoke Development Project
As a resident of San Mateo and a friend of Self-Help for the Elderly Senior Activity Center in San Mateo Central Park, I am signing to express my support for the mixed-use development project, Bespoke (lead developer is Harvest Properties), which will offer Self-Help a permanent home for its Senior Activity Center.
Print Name Address Signature
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Petition In Support Of Bespoke Development Project
As a resident of San Mateo and a friend of Self-Help for the Elderly Senior Activity Center in San Mateo Central Park, I am signing to express my support for the mixed-use development project, Bespoke (lead developer is Harvest Properties), which will offer Self-Help a permanent home for its Senior Activity Center.
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Petition In Support Of Bespoke Development Project
As a resident of San Mateo and a friend of Self-Help for the Elderly Senior Activity Center in San Mateo Central Park, I am signing to express my support for the mixed-use development project, Bespoke (lead developer is Harvest Properties), which will offer Self-Help a permanent home for its Senior Activity Center.
Print Name
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Petition In Support Of Bespoke Development Project
As a resident of San Mateo and a friend of Self-Help for the Elderly Senior Activity Center in San Mateo Central Park, I am signing to express my support for the mixed-use development project, Bespoke (lead developer is Harvest Properties), which will offer Self-Help a permanent home for its Senior Activity Center.
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Talk /NE
Petition In Support Of Bespoke Development Project
As a resident of San Mateo and a friend of Self-Help for the Elderly Senior Activity Center in San Mateo Central Park, I am signing to express my support for the mixed-use development project, Bespoke (lead developer is Harvest Properties), which will offer Self-Help a permanent home for its Senior Activity Center.
Print Name Address Signature
VENA CANONA
william y Word
J/AN HO
WING HO
Pawn in
Elen A Wor
Wood i Wang
01, 1 Ravent
JIM P. 120 ON
0/1
Zha 3Z; Ying
Petition In Support Of Bespoke Development Project
As a resident of San Mateo and a friend of Self-Help for the Elderly Senior Activity Center in San Mateo Central Park, I am signing to express my support for the mixed-use development project, Bespoke (lead developer is Harvest Properties), which will offer Self-Help a permanent home for its Senior Activity Center.
Print Name Address Signature
51 STEPHENTONG
52 Betty Tong
53 TOON WONG
54 KWAN YIN YEUNG
55 Ali lee
56 MARTINA KONG
57 KATHY TSU
58 Valerie lau
59 Merlin Larson
60 SUEN ONG
61 62
63 64
65 66
67 68
69 70
71 72
73 74
75 Petition In Support Of Bespoke Development Project
As a resident of San Mateo and a friend of Self-Help for the Elderly Senior Activity Center in San Mateo Central Park, I am signing to express my support for the mixed-use development project, Bespoke (lead developer is Harvest Properties), which will offer Self-Help a permanent home for its Senior Activity Center.
Print Name Address • Signature
FEMI CHOLD;
Yin L lee
fongling Trang
nan chen
Guangmin Wan
Jimes Fan
Mei Shioka
Judy /tou
hilip La
BIANCA LARSON
Petition In Support Of Bespoke Development Project
As a resident of San Mateo and a friend of Self-Help for the Elderly Senior Activity Center in San Mateo Central Park, I am signing to express my support for the mixed-use development project, Bespoke (lead developer is Harvest Properties), which will offer Self-Help a permanent home for its Senior Activity Center.
Print Name Address Signature
Fan Lce
chris lec
Minang
Ines tores
Betty Here
Sharla Li
Eva lay.
Ado n
Penny Chen
Gause a
+
Tung Ku Ng
Shey Thang
Suza lee
'HELEN LEUNG,
W UN MINGLEUNG
cHeng Park Hon
Connie Chan
SOLITA O' BRIEN
Yi-Ni Wu
AneiLan Kwok.
4th and Railroad
SAN
Parking Lot
ORIN Bespoke Project
CITY Term Sheet
May 15, 2023
CALIPORNA Kathy Kleinbaum, Assistant City Manager
City Manager's Office
Background
• January 2021- the City declared the Talbots parking
lot surplus land and issued RFP for development of
affordable housing on the site
• 3 responsive proposals were received
• July 2021 - City Council selected 3-party
development team of Prometheus, Harvest
Properties and Alta Housing for exclusive
negotiations
• Primary selection criteria was ability to assemble
the entire block and to provide the most parking
spaces for the affordable units
CITY OF SAN MATEO
Exclusive Negotiating Agreement
• Approved in October 2021
• Covers a 3-year period to allow development team to
assemble property and to obtain project entitlements
• To date development team has met all milestones
• Project planning application is currently under review • Commencing negotiations on the Disposition and
Development Agreement
+ ALTA
HOUSING
HARVEST PROMETHEUS
CITY OF SAN MATEO
Current Bespoke Project
• Redevelopment of entire block
• 60 units of affordable housing
• Rents from 30% to 70% AMI
• 50% of units are 2 and 3 bedrooms
• 4,500 sqft ground floor space for Self Help
for the Elderly
• Roughly 150,000 sqft of office space 5th Ave
• Roughly 12,000 sqft of retail space along B
Street corridor
• 118 underground parking stalls of which 38 Community/ Retail Frontage Activated residential Space Streetfront
are dedicated to the housing units
CITY OF SAN MATEO
Project Evolution
• Entire block assembled
• Affordable units increased from 52 to 60 resulting SELF HELP FOR THE ELDER in increase of City affordable funds from $2.OM to
$2.75M
• Office space increased from 118,000 to 150,000 sf
due to acquisition of additional parcels
• Determination that lot tie agreement is needed to
allow for shared subterranean garage
CITY OF SAN MATEO
Key Financial Deal Terms
• City to contribute land as a 99-year ground lease at $1 per year • The City will contribute $2.75 million to the affordable housing • The development team will contribute $2.9 million to the affordable housing.
• The development team will finance and construct the shared underground parking garage (valued between $5 and $6 million) • Self-Help for the Elderly to receive ground floor space at subsidized rent • Lot tie agreement to be used to allow for development across parcel lines
CITY OF SAN MATEO -
Other key considerations
• Project Phasing:
• Parking must be constructed first to create
development site for housing
• Commercial is solely financing the parking
S RAILROAD AVE
• As a result, commercial will start construction first Residential extent on city-owned parcel Commercial extent on city-owned parcel
• Occupancy has to be independent
• Lot split
• Development team proposes to use portion of City
parcel for commercial development
13.320 st
• Staff and developer are exploring options to expand PARCEL A - CITY LOT 3,170 st housing footprint while maintaining commercial square
footage needed for financial feasibility
• Additional City contribution to housing would be
required
CITY OF SAN MATEO
Next Steps
• Further evaluate opportunities to increase the number of affordable units included in the project
• Project to complete planning entitlement process and
environmental review
• City Council will approve final entitlements and the
Disposition and Development Agreement for the land and
financial contribution in late 2023/early 2024
CITY OF SAN MATEO -
City Council Actions Required
• Confirm current financial terms
• Do you support exploring for opportunity for
more affordable units on site?
• CITY OF SAN MATEO