Att 4 - September 16, 2024 City Council Study Session Report — San Mateo City Council, March 17, 2025

CITY OF SAN MATEO
City Council Special Meeting
September 16, 2024
5:00 PM

COUNCIL MEMBERS
Lisa Diaz Nash, Mayor
Rob Newsom Jr., Deputy Mayor
Rich Hedges
Amourence Lee
Adam Loraine

AGENDA ITEM

2. 4th and Railroad Parking Lot – Bespoke Development Term Sheet Options Review and provide direction on the proposed Term Sheet options and possible scenarios for the Bespoke public- private partnership Bespoke development project, which includes the City-owned parking lot at 4th and Railroad Avenue.

CEQA: This study session to discuss deal terms is not a project subject to CEQA, because it can be seen with certainty that it will not cause a physical change in the environment. (Public Resources Code Section 21065.) The proposed Bespoke development project will be subject to environmental review which is being completed through the entitlement process.

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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: 2 Section Name: STUDY SESSION Account Number: 26-3111 File ID: 24-9056 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Community Development Department
MEETING DATE: September 16, 2024
SUBJECT:
4th and Railroad Parking Lot – Bespoke Development Term Sheet Options RECOMMENDATION:

Review and provide direction on the proposed Term Sheet options and possible scenarios for the Bespoke public-private partnership development project, which includes the City-owned parking lot at 4th and Railroad Avenue.

BACKGROUND:

The City is currently a party to an Exclusive Negotiating Agreement (ENA) for the redevelopment of the City-owned surface parking lot located at 4th and Railroad Avenue adjacent to the parcel where the former Talbot’s building is located. 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 (Attachment 1) and has since been working with the development team to refine the project, now referred to as Bespoke, through the planning entitlement process. The ENA is set to expire on October 14, 2024 but may be extended for six months by mutual agreement between the Developer and the City Manager, who was delegated this authority by the City Council (ENA Section 1.3(b)(1)).

The Bespoke project completed the pre-application phase of its planning review and submitted their formal planning application in February 2023. The project was deemed complete on July 17, 2024 and the environmental analysis, in the form of an Initial Study/Mitigated Negative Declaration, is nearly ready for public review and comment.

The Project includes a parcel owned by the City, which means the City is not merely acting in a regulatory capacity but is also acting in a proprietary capacity as a partner. As the project has evolved, so have the proposed deal terms related to the City’s provision of land and funding support for the affordable housing component of the project. The last deal terms considered by Council at a study session on May 15, 2023 are included for reference (Attachment 2).

This report is intended to provide the City Council with an update on the project status and to get Council direction on possible options relating to the currently proposed deal terms and the ENA and whether to extend it by six months.

Project 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.

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The City requested that the interested parties provide proposals addressing the following criteria:

1. Develop a 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 their October 4, 2021 meeting.

The development team was selected based on their proposal to develop the full block, removing awkward transition and existing easement issues; proposed mix of unit sizes that make the project family friendly; offering the highest ratio of on- site parking for the housing; and serving income levels up to 70% of Area Median Income (AMI) which addresses the Council’s interest in serving both low- and middle-income households. A mixed-use project on this block would help re- energize this part of B Street, would have synergy with the adjacent Draeger’s Market project, and would contribute to the economic vitality of the city and downtown.

The proposed Project includes the following components:
• A seven-story 71-unit 100% affordable housing building on the City’s lot with community space for Self-Help for the Elderly on the first floor,
• A six -story 156,000 sq-ft retail and office building, • 128 parking spaces on-site in an underground parking garage (of which 37 would be for residents' use and 25 would be shared between commercial and residential uses), access would be on City lot; the remaining commercial garage would be accessible to the public on evenings and weekends, • A combination of at grade open space and roof top common areas, and • Improvements in the public right-of-way area along all four street frontages.

Key Deal Terms
In May 2023, additional draft deal terms were presented to Council (Attachment 2). The draft deal terms form the basis of the Development Agreement (DA)/Disposition and Development Loan Agreement (DDLA) that the City and developer would enter into at the time that the project receives its entitlements. These have since been refined further to reflect additional negotiations and details that are being included in the DA/DDLA. A summary of the key project terms are as follows:
• The development team will enter into a 99-year ground lease and a reciprocal easement agreement for the City’s parcel at the rate of $1 per year.
• The City will contribute $3 million (m) to support the construction of the affordable housing from the City’s dedicated affordable housing funds. The specific source of funds from within the City’s housing funds is still to be determined. Alta has requested the partial use of these funds for predevelopment costs, should there be impact fees due at building permit issuance.

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• The development team will contribute $2.9m to support the pre-development costs for the affordable housing building.
• 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 developer will cover the full cost of the construction of the parking garage, including the mechanical lift spaces dedicated to the affordable housing. • The development team will provide ground floor space in the affordable housing building at a substantially subsidized rent (the proposal from Alta is $1 per year) 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 across parcel lines, the development team will use a lot tie agreement.
• 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 of funding requests in order to obtain construction funding from the typical affordable housing financing sources, including the federal tax credits.

This deal term is explained further below under Assurances to See Units Built as it has spurred additional conversation about how to safeguard the City’s interest in the project, which is to ensure the housing units are built, preferably within the current Housing Element Cycle. • The project will be subject to prevailing wage and Department of Industrial Relations (DIR) registry requirements.
• The shared parking will include a minimum of 37 reserved residential spaces, 25 shared residential and commercial spaces; and the commercial garage will be publicly accessible on evenings and weekends. The publicly accessible part is a recent add to the project based on other Downtown projects. • A 10-year DA/DDLA term (additional details provided below under Project Schedule).

The majority of these draft deal terms have remained constant. However, there has been progress and refinements associated with publicly accessible parking, the lease amounts for Self Help for the Elderly, and movement on assurances to getting the units built. The site plan and architectural design also went through several iterations to address building design, public realm improvements, trash pickup, utilities etc., which is typical of any major development project proposal.

The environmental review is nearly complete and poised for release to enable public comment and input.

Since May 2023, the negotiations have been challenging on two primary fronts. First, the developers had not agreed to ensure that the affordable housing units will actually be constructed if Alta fails to procure funding or encounters some other hindrance toward Project completion. Second, the development team had originally declined to fully commit to delivering the housing units within staff’s proposed specific and reasonable timeframe (i.e., this Housing Element Cycle).

Assurances to See Units Built
Broadly, the October 2021 and May 2023 terms involved (1) City contribution of land for the parking structure and residential units and additional funding for the residential development; (2) commercial developer construction of the parking garage (roughly valued at $5-7m for the residential parking) and a financial contribution of $2.9m, and (3) affordable housing developer construction of the development with 71 affordable housing units and space for Self Help for the Elderly. The mixed-use nature of the project allows the commercial developer to obtain concessions and waivers under

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state housing density bonus law for greater floor area and height.

Typically, partnership projects of this nature require the residential components to be built first, to ensure the commercial developer cannot walk away from their commitments on providing housing units. However, given the unique shared nature of the parking garage and the project construction phasing, the residential development can only seek final federal tax credit financing after parking podium construction, which would create a lag of 1-2 years between the start of the commercial superstructure, which benefits from density bonus hinging upon the residential and parking access on City land, and the residential superstructure construction.

City staff was concerned that in a worst-case scenario, the commercial project could potentially start operating and profiting from the benefits provided from driveway access and shared parking garage on City land (rough collective value at $13.5-15m), without meeting its commitment to deliver a housing project. Staff believes the housing component is the project lynchpin and without assurances that it would be built to the satisfaction of the City Council, the project cannot proceed further.

To allow for the commercial project to move forward and protect the City’s land interests and contributions, staff proposed the following plan to the development team with four stages:

1. Certificate of Occupancy (C of O) issuance for the commercial project tied to building permit issuance for residential development OR a significant financial contribution (such as $10m) at C of O of the commercial project that would enable construction of the affordable housing. If the residential receives tax credit financing or is issued building permits prior to C of O, these monies would no longer be required; and

2. A secondary deposit of $3m dollars at building permit issuance for the garage, to be used if the residential project requires major changes to obtain financing (and to be returned if project meets its schedule of performance); and

3. Should Alta be unable to proceed, the development team would find an alternate affordable housing partner, with City’s approval, who can revise and deliver the affordable housing component within a prescribed timeframe; and

4. All plans and entitlements to revert to City to find an affordable developer who can deliver the residential units or explore alternatives such as a market-rate project.

The development team has agreed to these terms, with the exception of tying the C of O of the commercial to the residential project or holding building permit issuance of commercial building with the residential building, citing financial considerations. They are also not willing to provide a $10m dollar true-up at C of O of the commercial building if the residential project fails to move forward to account for the contribution of City land towards their project. The development team‘s position is that they will have already made a significant monetary investment ($5-$7m) to build the parking garage and foundation for the housing structure. Alternatively, they are amenable to a staff proposed minimum contribution of $3.5m towards the City’s affordable housing fund at C of O.

Should the residential project fail despite the above safeguards, the City can utilize the $3m secondary deposit and the $3.5-10m true-up contributions at C of O towards other affordable housing projects and could potentially flip the entitled property for a market-rate housing development (which would include a subset of inclusionary below market rate affordable housing units). Given the long timelines for this project, staff would include adjustments to these assurances to account for annual Consumer Price Index increases.

Should the project has to flip to a market rate project, City staff would likely need to conduct an RFP process to identify a market rate developer to build the housing units (vertical portion) of the project. Any potential proceeds received from a market rate developer for the long-term lease of City land that includes physical improvements of a parking garage, building foundation and project plans could likely be utilized for activities such as affordable housing and City

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infrastructure investments.

Based on the above background and history, staff is seeking direction from City Council on the following scenarios and which substantive option to pursue:

Substantive Options:
Option 1: Extend the ENA to allow staff and development team to continue to negotiate the assurances and require greater contributions from the commercial team in the case of failure of a residential project to move forward, such as $10m for the access on City land.
Option 2: Develop the DA/DDLA based on the terms described herein with the $3.5m contribution from the development team as the final assurance at C of O.
Option 3: Allow the ENA to expire and explore other potential stand-alone affordable housing projects at this site.

Project Schedule
Another challenge in the project negotiations has been the Project construction schedule. While the ENA outlined a 10- year overall timeline, the development team originally proposed 14 years for completion, with a four-year timeline just to submit building permit applications. This proposed schedule was not considered a good-faith effort to meet the City’s goals of producing housing at this site within the current Housing Element Cycle, which concludes in 2031. In comparison, the Kiku Crossing 100% affordable housing project with 225 units and a parking garage with over 525 spaces, was entitled and built within four years.

Staff provided an alternative schedule (Attachment 3) that proposed for construction to be completed by 2031, with some buffers built-in to 2035 that account for unforeseen issues, keeping in mind the 10-year timeline in the ENA. This schedule was based on a review of other large building permit turnaround times, discussions with the Building Official and Permit Center Supervisor and with a written commitment to turn around City reviews expeditiously, with regular check-in meetings to resolve issues and ensure progress. Since these discussions, the development team has proposed an alternate schedule that would achieve completion of the entire project by December 2032, but with extensions or delays, could be delayed as much as four years (end of 2036).

The biggest difference lies in the applicant submitting the first permit application two years after entitlement and waiting two years for permit issuance. This would effectively double the time to see the project break ground for the garage, which would significantly delay the affordable housing timeline on seeking tax credit financing (which may take multiple rounds, with only one application round per year), as outlined in the table below. The estimated dates below were contingent upon approval by October of 2024. Any extensions on the ENA would further delay the completion of the project.

KEY PROJECT

MILESTONE

STAFF PROPOSED STAFF PROPOSED
(WITH BUFFER)

APPLICANT

PROPOSED

APPLICANT

PROPOSED WITH
BUFFER
Complete Building
Permit Submittal October 2025 3 months October 2026 6 months Building Permit
Issuance for Garage and
Commercial Building
October 2026 6 months April 2028
Additional time
(unspecified) if more
than 5 rounds of review
Completion of
Garage/Residential
seeks Tax Credit
Financing
April 2028 3 months October 2029 3 months
Residential – Building
Permit Issuance April 2029
12 months (Two
additional rounds of
permit submittal)
December 2030 24 months

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Commercial – C of O
on core and shell April 2029 Not specified Not provided Not specified Residential – C of O April 2031 9 months December 2032 9 months Expected Completion
Date of Residential
Project

6.5 years (2031) 10.25 years (2035) 8 years (2032) 12 years (2036) The residential units would count towards the current Housing Element cycle if building permits are issued before the end of 2031. Based on the above differences, staff is deeply concerned about the project schedule and delivery of units within a timely manner and the effects of encumbering City land for the next 12 years without significant assurances that the units would get built. Furthermore, given the rise of construction and other development costs over time, the delay on the affordable project’s first tax credit application submittal—with no guarantee of success in the initial application round – is likely to diminish the value of the City’s $3m contribution and other sources in the Project.

Given these concerns, staff is seeking direction from City Council on which scheduling option should be included in the DA/DDLA:

Scheduling Options:
• Option 1: The affordable units should be permitted and constructed in the optimal scenario within this Housing Cycle (by 2031).
• Option 2: The affordable units should receive construction permits within this Housing Cycle (by 2031).

It should be noted that either of these options will allow the City to get credit for these affordable units during this Housing Cycle. However, any delays or extensions in the preceding milestones could affect this timeline.

BUDGET IMPACT:

Depending on Council direction regarding the ENA extension and potential project entitlements, the City would be committing its parcel to this project for a 99-year ground lease at $1 per year and providing $3m 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 study session to discuss deal terms is not a project subject to CEQA, because it can be seen with certainty that it will not cause a physical change in the environment. (Public Resources Code Section 21065.) 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 – Exclusive Negotiating Agreement
Att 2 – May 15, 2023 City Council Study Session Packet
Att 3 – Staff Proposed Project Schedule
Att 4 – Applicant Proposed Project Schedule

STAFF CONTACT

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Manira Sandhir, Planning Manager
[email protected]
Rachel Horst, Housing Manager
[email protected]
Zachary Dahl, Director
[email protected]
Christina Horrisberger, Assistant City Manager
[email protected]

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2 PA-2023-012 Bespoke – Residential Schedule of Performance Staff Proposed – August 2024
Action/Obligation
Responsible
Parties
Timeline for
Performance

Target
Completion
Buffer with
Written
Justification
and City
Approval

1. Master Building Permit
Submission (including
foundation, residential
superstructure, and
commercial
superstructure permits)
Commercial
Developer
and
Residential
Developer
Within 12
months of
Entitlement date

Oct. 2025 Up to 3
months

2. Issuance of Building
Permit (commercial and
parking garage) and
building permit ready-for-
issuance letter
(residential). City commits
to expeditious review of
permit submittals.

Applicant commits to
timely and complete
resubmittals.

City Within 12
months from the
Master Building
Permit
Submission
Oct. 2026 Up to 6
months

3. Commercial Developer
to commence construction
of the Underground
Parking Garage
Commercial
Developer
Within 6 months
from Issuance of
Building Permit
(commercial and
parking garage)
Apr. 2027

4. Underground Parking
Garage completion and
residential pad turnover
Commercial
Developer
Within 12
months of
Underground
Garage
construction
commencement
Apr. 2028 Up to 3
months

5. Residential submits for
tax credits (Typically Feb.
or July)
Residential
Developer
3 months prior to
completion of
Underground
Parking Garage
Jan. 2028 Up to 1
year from
last funding
round
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2 6. Residential Developer
shall secure necessary
financing for the Residential
Development.

Residential
Developer
Within 12 months
of Podium
Completion
Apr. 2029 Up to 1
year

7. City shall record the
Residential Ground Lease,
Regulatory Agreement and
Deed of Trust.

City Concurrently with
the close of
construction
financing for
Residential.

8. Residential Developer
shall obtain permits and
commence construction of
the Residential
Improvements.

Residential
Developer
Within 30 days
from the close of
Escrow of the
Residential
Development
Financing.

Apr. 2029

9. Residential Developer
shall provide Tenant
Selection and Marketing
Plan for City review.

Residential
Developer
Within 6 months
from the close of
Escrow for the
Residential
Development
Financing.

Oct. 2029

10. Commercial Developer
obtains C of O on first
Tenant Improvement
Building Permit
Commercial
Developer
Upon Building
Permit issuance
of Residential
Improvements
Apr. 2029
(Aligns with
Commercial
Final Building
Inspection)

11. Residential Developer
obtains Final Building
Inspection for
superstructure

Residential
Developer
Within 24 months
following the
commencement
of construction.

Apr. 2031 Up to 9
months
PA-2023-012 Bespoke – Residential Schedule of Performance Applicant Proposed Project Schedule September 3, 2024
Action/Obligation Responsible
Parties
Timeline for Performance Target
Completion
Buffer with Written
Justification and City
Approval

0.5. Mass Excavation and
Shoring Permit Submission
Commercial
Developer and
Residential
Developer
Within 18 months of the
Entitlement Date
Apr. 2026 Up to 3 months

1. Master Building Permit
Submission (including
foundation, residential
superstructure, and commercial
superstructure permits)
Commercial
Developer and
Residential
Developer
Within 6 months of Mass
Excavation and Shoring
Permit Submission
Oct. 2026 Up to 3 months

2. Issuance of Building Permit
(commercial and parking garage)
and building permit ready-for-
issuance letter (residential). City
commits to expeditious review of
permit submittals. Applicant
commits to timely and complete
resubmittals.

City Within 18 months from the
Master Building Permit
Submission
Apr. 2028 . Additional time/turns
required beyond five
rounds of submissions
shall result in additional
time

3. Commercial Developer to
commence construction of the
Underground Parking Garage
Commercial
Developer
Within 6 months from
Issuance of Building Permit
Oct. 2028
Action/Obligation Responsible
Parties
Timeline for Performance Target
Completion
Buffer with Written
Justification and City
Approval
(commercial and parking
garage)

4. Underground Parking Garage
completion and residential pad
turnover
Commercial
Developer
Within 12 months of
Underground Garage
construction
commencement
Oct. 2029 Up to 3 months

5. Residential submits for tax
credits (Typically Feb.

Residential
Developer
The first Feb after 3
months prior to podium
completion.

Feb. . 2030 Up to 3 funding cycles
for HCD funding.

6. Residential Developer shall
secure necessary financing for
the Residential Development.

Residential
Developer
Within 12 months of
Podium Completion
Dec. . 2030 Up to 3 funding cycles.

7. City shall record the
Residential Ground Lease,
Regulatory Agreement and Deed
of Trust.

City Concurrently with the close
of construction financing
for Residential.

8. Residential Developer shall
obtain permits and commence
construction of the Residential
Improvements.

Residential
Developer
Within 30 days from the
close of Escrow of the
Residential Development
Financing.

Dec. . 2030
Action/Obligation Responsible
Parties
Timeline for Performance Target
Completion
Buffer with Written
Justification and City
Approval

9. Residential Developer shall
provide Tenant Selection and
Marketing Plan for City review.

Residential
Developer
Within 6 months from the
close of Escrow for the
Residential Development
Financing.

Jun.. 2031

11. Residential Developer
obtains Final Building Inspection
for superstructure
Residential
Developer
Within 24 months following
the commencement of
construction.

Dec. . 2032 Up to 9 months
City of San Mateo
City Council Meeting

POST PACKET

PUBLIC COMMENT

Dear San Mateo City Council,
The proposed development will bring 71 family-friendly affordable housing units to San Mateo, addressing a critical shortage of affordable housing in the city. This project represents a vital step forward in ensuring that working families, and others in need have access to stable and affordable homes.

The Harvest Development team has demonstrated an impressive commitment to ensuring the success of this project. The revised deal terms bring the total equity contribution to $9.4 million, including an additional $6.5 million as a guarantee in the unlikely event that financing for the affordable housing component is not obtained or is significantly delayed. This level of financial commitment goes well beyond what is typically expected of a commercial developer, and we believe it reflects the importance of the project to the community.

Additionally, the Commercial team’s commitment in building the subterranean garage shared between residential and commercial spaces, along with the payment of the commercial linkage fee to support future affordable housing projects in the City of San Mateo, demonstrates their dedication to comprehensive community-building and housing production.

I strongly urge the City Council to approve these updated terms so that the project can move forward through the entitlement and development process without further delay.

Timothy Clark

From: David Hunt
To: City Council (San Mateo)
Cc: Clerk
Subject: Bespoke Development - Share Parking with Kiku
Date: Monday, September 16, 2024 7:35:16 AM
Hello Council,
I’m writing in regard to the Bespoke development topic on the agenda. Council should recommend that staff work with the developer to share parking with the grossly underutilized Kiku Crossing garage in order to increase the housing units that can be built in this development. Selecting this development layout based on “offering the highest ratio of onsite parking for the housing” is ignoring the climate crisis we’re in and not taking appropriate measures to utilize a large, already built garage. Reducing VMT is critical to addressing climate change and one of the biggest levers we have to pull is housing near existing high-quality transit.

If council insists on prioritizing parking over housing then they should work with the developer to unbundle parking from the rent so that residents that don’t have cars aren’t burdened with the cost of this unneeded residential garage. Parking related costs will likely be 15-20% of the rent cost in this building. Please give the option for residents that can’t afford a car to be able to afford housing.

As a city there are very limited properties within convenient walking distance to Caltrain.

Please work with the developer to come up with a plan to utilize the ample parking at Kiku Crossing and add more units to this development.

David Hunt
Dear San Mateo City Council,
The proposed development will bring 71 family-friendly affordable housing units to San Mateo, addressing a critical shortage of affordable housing in the city. This project represents a vital step forward in ensuring that working families, and others in need have access to stable and affordable homes.

I strongly urge the City Council to approve these updated terms so that the project can move forward through the entitlement and development process without further delay. thalia lubin
From: Michael
To: City Council (San Mateo)
Cc: Martin McTaggart
Subject: 9/16/24 City Council Special Meeting Item #2 Bespoke Date: Monday, September 16, 2024 9:03:56 AM
Greeting Mayor Nash and Councilmembers - I'm writing to voice my strong disapproval of the proposal for Bespoke to develop the commercial portion of this project first with assurances to build housing later. We do not need more commercial - we need affordable housing and we need it now. Developers have proven time and again they cannot be trusted - we have dirt lots and concrete holes sitting idle for years that prove it. No dollar amount of so-called assurances will make this guaranteed - do not fall for it. If Alta, Harvest and Prometheus cannot deliver the entire project, then the city should terminate its exclusive agreement with these developers and find one that will deliver the entire project. No more gifts to developers - do not yield on this - the city will rightly be viewed as a bunch of gullible suckers if we fall for this ploy.

Thank you for listening - Michael Weinhauer
From: David Light
To: City Council (San Mateo)
Subject: Item #2 “Bespoke” - Special City Council Meeting Today Date: Monday, September 16, 2024 1:30:28 PM
Dear Mayor Diaz Nash and City Council Members,
I have alway heard that repeating the same thing over and over again while expecting a different result is not good. We need affordable housing and not more empty office space.

Developers need to build the housing before or at the same time as new office space and not as an after thought.

San Mateo has a lot of empty new “boutique” office space and empty, unleased traditional office space in beautiful old building that can be refurbished. What San Mateo does not have a lot of is affordable housing. Please, address our major problem and not be guided by the goals of developers.

In a recent Planning Commission meeting, I was moved to see one member vote “No” on a project due to the fact that it did not address housing needs near to public transportation. San Mateo needs more leaders to focus on achieving our stated goals.

Thank you!
-David Light
Dear San Mateo City Council,
The proposed development will bring 71 family-friendly affordable housing units to San Mateo, addressing a critical shortage of affordable housing in the city. This project represents a vital step forward in ensuring that working families, and others in need have access to stable and affordable homes.

I strongly urge the City Council to approve these updated terms so that the project can move forward through the entitlement and development process without further delay.

Eva Markiewicz
Dear San Mateo City Council,
The proposed development will bring 71 family-friendly affordable housing units to San Mateo, addressing a critical shortage of affordable housing in the city. This project represents a vital step forward in ensuring that working families, and others in need have access to stable and affordable homes.

I strongly urge the City Council to approve these updated terms so that the project can move forward through the entitlement and development process without further delay.

Pat Hunter
Dear San Mateo City Council,
The proposed development will bring 71 family-friendly affordable housing units to San Mateo, addressing a critical shortage of affordable housing in the city. This project represents a vital step forward in ensuring that working families, and others in need have access to stable and affordable homes.

I strongly urge the City Council to approve these updated terms so that the project can move forward through the entitlement and development process without further delay.

Randy Gerlach
Dear San Mateo City Council,
The proposed development will bring 71 family-friendly affordable housing units to San Mateo, addressing a critical shortage of affordable housing in the city. This project represents a vital step forward in ensuring that working families, and others in need have access to stable and affordable homes.

I strongly urge the City Council to approve these updated terms so that the project can move forward through the entitlement and development process without further delay.

Jacqueline Ramos
Dear San Mateo City Council,
The proposed development will bring 71 family-friendly affordable housing units to San Mateo, addressing a critical shortage of affordable housing in the city. This project represents a vital step forward in ensuring that working families, and others in need have access to stable and affordable homes.

I strongly urge the City Council to approve these updated terms so that the project can move forward through the entitlement and development process without further delay.

Michael Szeto
Dear San Mateo City Council,
The proposed development will introduce 71 family-friendly affordable housing units to San Mateo, addressing a critical shortage in the city's housing market. This initiative is a crucial step in ensuring that working families and others in need have access to stable, affordable homes, thereby preparing San Mateo for a better future.

The Harvest Development team has shown a remarkable commitment to the project's success.

The revised deal terms include a total equity contribution of $9.4 million, with an additional $6.5 million guarantee to safeguard against potential delays or failure to secure financing for the affordable housing component. This level of financial commitment surpasses what is typically expected of a commercial developer, underscoring the project's significance to the community.

Furthermore, the Commercial team's dedication is evident in their plans to build a subterranean garage shared between residential and commercial spaces and their payment of the commercial linkage fee to support future affordable housing projects in San Mateo. These efforts demonstrate a comprehensive approach to community-building and housing production.

I strongly encourage the City Council to approve these updated terms, allowing the project to proceed through the entitlement and development process without further delay. This development is a vital investment in the city's future.

Thank you,
John Paolini
John Paolini
The Building &
Construction Trades
Council of San
Mateo County
1710 S. Amphlett Blvd., Suite 306
San Mateo CA, 94402
Afﬁliates
ㅡ
Heat & Frost Insulators No. 16
Boilermakers Local 549
Brick Tile & Allied Craftworkers 3
DC16 Painters & Allied Trades
Local 913, 12, 718
IBEW Local 617
Elevator Constructors No. 8
Ironworkers Local 377
LiUNA Local 261, Local 67
Operating Engineers No. 3
Plasterers & Cement Masons 300
UA Plumbers & Pipeﬁtters 467
Roofers No. 40
SMART 104
Sign & Display 510
UA Sprinkler Fitters 483
T eamsters No. 853
UA Local 355
16 SEPTEMBER 2024
San Mateo City Council
330 West 20th Avenue
San Mateo City CA 94403
RE: 4th and Railroad Parking Lot - Bespoke Development
Dear Honorable Mayor & City Council Members;
On behalf of the Building & Construction Trades Council of San Mateo County (representing over 10,000 local working families), we are excited for the proposed Bespoke development.

While we consider development utilizing state prevailing wage standards is a necessary bene
ﬁt it is only one step in the right direction
The building trade afﬁliates request the inclusion of community work force beneﬁts that will ensure residents who support their families by working in the construction trades are recognized for their value as community members, more career pathways are encouraged through the use of joint labor management apprenticeship training programs, employer/contractors awarded project work at every tier (primary contractor, & subcontractors) are law abiding employers and they can be held accountable for wages, and working conditions of their employed workers.

Furthermore, we request that the prevailing wage requirement not be lost in transition due to the affordable housing development optional transfer to market rate housing if development does not proceed as planned.

I look forward to discussing these proposed changes. It is the goal of the building trades council to promote and sustain a vibrant local economy and invest in the working class of San Mateo City.

Sincerely
Bart M. Pantoja
Business Manager | Financial Secretary-Treasurer

I strongly urge the City Council to approve these updated terms so that the project can move forward through the entitlement and development process without further delay.

Matt Moore
Members of the San Mateo City Council,
This proposed development will bring 71 family-friendly affordable housing units to San Mateo, addressing the critical shortage of affordable housing in the city. This project represents a vital step forward in ensuring that working families have access to stable and affordable homes.

The Harvest Development team has demonstrated an impressive commitment to ensuring the success of this project. The revised deal terms bring the total equity contribution to $9.4 million, including an additional $6.5 million as a guarantee in the unlikely event that financing for the affordable housing component is not obtained or is significantly delayed. This level of financial commitment goes well beyond what is typically expected of a commercial developer, and it reflects the importance of the project to the community.

I was a resident of San Mateo for several years, as a renter. I might still live in San Mateo, if the city were not suffering from a severe housing shortage. When we decided to become homeowners, we did look at many homes in San Mateo -- we looked at more than a hundred properties around the County, over the course of about six months -- we found ourselves completely priced out of the city.

San Mateo County has added more than ten jobs, for each new home, year after year, for more than a decade, and the City of San Mateo has contributed to this deficit. The City must take aggressive action in smoothing the path for more homes of all types to be built. You should not be throwing up new road blocks or imposing more costs -- costs that ultimately are borne by the people who should be living in these homes.

I strongly urge the City Council to approve these updated terms so that the project can move forward through the entitlement and development process without further delay.

Auros Harman
September 16, 2024
San Mateo City Council
San Mateo City Hall
330 West 20th Avenue
San Mateo, CA 94403
Re: Support Bespoke - Housing Leadership Council of San Mateo County Dear Members of the San Mateo City Council,
The Housing Leadership Council of San Mateo County (HLC) works with our communities and their leaders to produce and preserve quality affordable homes.

On behalf of HLC, I’m writing to express our support for the 71 new affordable homes in the Bespoke proposal by Alta Housing. With 44 of these slated to be 2- and 3-bedroom homes, the proposal has the potential to provide much-needed stability to 44 of your lower-income families, allowing them to continue supporting your community—whether through their patronage or employment by San Mateo’s small businesses. These are the community members who make your city such an attractive place to call home, yet they struggle to find, afford, and maintain suitable housing.

The solutions aren’t easy, but they exist—and the Bespoke proposal is one of them. We urge you to approve a deal term that gives Alta Housing the best chance for success. In doing so, you will ensure that more low-income families in your community can thrive.

Sincerely,
Ken Chan
Senior Organizer
Housing Leadership Council of San Mateo County

San Mateo City CouncilMarch 17, 2025

San Mateo City Council
March 17, 2025