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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: 16 Section Name: PUBLIC HEARING Account Number: File ID: 26-11202 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Community Development Department
MEETING DATE: May 18, 2026
LAST AMENDED: May 18, 2026 – Amended to update Exhibits A-L on Attachment 2 – Draft Resolution
SUBJECT:
445 S. B Street (Bespoke) – New Mixed-Use Development – Approval and Ordinance Introduction RECOMMENDATION:
1. Introduce an Ordinance approving a Development Agreement (DA) associated with the construction a new mixed- use development totaling 239,628 square feet and consisting of one seven-story, 76,072 square-foot affordable housing building and one six-story, 162,926 square-foot office/commercial building located at 445 South B Street (“Project”).
2. Adopt a Resolution approving a Disposition and Development Agreement (“DDA”) for the Project, including a form of Ground Lease, Reciprocal Easement Agreement, Temporary Construction Easement, and Predevelopment and Permanent Loan Documents (Loan Agreement, Deed of Trust, Promissory Note, Financing Regulatory Agreement), and authorizing the City Manager to execute all documents and make any appropriate changes, with the concurrence of the City Attorney, so long as the changes do not alter substantive rights and obligations of the City.
3. Adopt a Resolution appropriating two million nine hundred thousand dollars ($2,900,000) into the Bespoke Predevelopment Project from a Developer Equity Contribution held by the City and provided to the Residential Developer in the form of a Predevelopment Loan.
4. Adopt a Resolution appropriating three million dollars ($3,000,000) in the form of a loan to support the affordable housing construction, with two million dollars ($2,000,000) from the Low Moderate Income Housing Asset Fund (Fund 255) and One Million Dollars ($1,000,000) from the Commercial Linkage Fee Fund (Fund 270) to the Housing Bespoke Project to fund the loan.
5. Adopt a Resolution to approve the Site Plan and Architectural Review (“SPAR”), Special Use Permit (“SUP”), and Site Development Planning Application (“SDPA”) for the Project and to adopt a Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program (“MMRP”) in compliance with the California Environmental Quality Act (“CEQA”), based on the Findings for Approval and subject to the Conditions of Approval for the Project.
BACKGROUND:
Surplus Land Act and Developer Selection
Pursuant to Government Code Sections 54220 et seq., known as the “Surplus Land Act” (SLA), the City Council adopted a Resolution declaring two City-owned surface parking lots at East 4th Avenue and South Railroad Avenue (“Talbot’s Site”), and 308 5thAvenue (“Ravioli Site”) as “Surplus Land” on January 4, 2021. In accordance with the SLA, staff then released a Notice of Surplus Lands Availability (Notice) to all housing developers registered with the California Department of Housing and Community Development (HCD).
The City selected one of the three proposals received to redevelop the Talbot’s Site and entered into an Exclusive Negotiating
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Agreement (ENA) with a three-party Development Team (Development Team) composed of Prometheus Real Estate Group, Harvest Properties, and Alta Housing (a non-profit affordable housing developer) on October 4, 2021. The City has since been working with the Development Team to refine the proposed mixed-use project, now referred to as Bespoke, through the planning entitlement process and to negotiate the terms which will govern the project moving forward.
Prior Meetings and Milestones
On September 1, 2022, the Development Team hosted a pre-application community meeting to gather feedback and answer questions. The Project was presented to the Planning Commission at a study session on October 11, 2022. A formal planning application was subsequently submitted in February 2023 and deemed complete on July 17, 2024.
Since then, it has been presented to the City Council at two study sessions, held on May 15, 2023 and September 16, 2024, to provide the Council with status updates and review the draft term sheets summarizing key deal terms for the public- private partnership between the City and the Development Team. The ENA has been extended four times, to July 2026.
The Bespoke project (Project) includes the following components:
A seven-story, 71-unit 100-percent affordable housing building on the City’s lot with community space for Self-Help for the Elderly (a local not-for-profit) on the first floor; A six-story 162,934 square-foot commercial and office building with ground floor retail; Improvements in the public right-of-way along all four street frontages, and 137 parking spaces in an underground parking garage that spans both residential and commercial parcels and is accessed via the City-owned lot.
o37 will be reserved for the residential building.
o100 will serve commercial and office uses. Of those:
28 stacking stalls will be for the exclusive use of the commercial and office. 10 will be for exclusive use of the commercial and office. 25 will be accessible to the residential building after-hours. 37 will be available for public use after regular business hours, and during evenings and weekends.
Project Agreements and Deal Terms
As the Project includes a City-owned parcel, the City is not merely acting in a regulatory capacity but is also acting in a proprietary capacity as a landowner and partner in the Project. The Project also spans multiple parcels under different ownership and will be constructed in phases, starting with the underground parking garage and shared podium (constructed by the Commercial Developer), followed by construction of the commercial and residential superstructures by their respective developers. The City and Developer Team must therefore enter into several legal agreements that will govern the various aspects of this Project, in addition to the planning entitlements.
These include a Disposition and Development Agreement (“DDA”) that contains the terms and conditions under which the Development Team will build the Project and a 99-year Ground Lease with the Residential Developer for $1 per year to own and operate the affordable housing. In addition, the City will execute a Lot Tie Agreement, Reciprocal Easement Agreement, and Shared Parking Agreement to allow for the construction of the underground parking garage across multiple parcels and for its ongoing use and maintenance.
For the residential component of the Project, the City will execute a Predevelopment and Permanent Loan Agreement and two Regulatory Agreements that will restrict the residential units for rental to lower-income households. Each of these documents, with the exception of the Shared Parking Agreement, which will be executed at a later time, are provided in the attachments to this report and are outlined below.
To address potential delays in the construction of the residential component, the Commercial Developer has committed to making a series of contributions and deposits to the affordable housing upon key Project milestones. The timing of the contribution to the affordable housing ($2.9M), the initial deposit ($3M), and additional deposit ($3.5M) are outlined in the Schedule of Performance. Most recently, a deposit of $100,000 per year for up to four years ($400,000) was added to the DDA to provide some compensation to the City for land holding costs if the Commercial Developer does not begin
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construction of the parking garage and the Project fails to commence.
The deal terms of the Project presented at the September 16, 2024 study session formed a basis for the agreements that support this Project. However, it took several months to resolve some major outstanding terms; those were discussed in the October 6, 2025 City Council report that allowed for the final ENA extensions to July 2026. Additionally, the Schedule of Performance –a document with binding project milestones that underpins the obligations, defaults, and remedies of all the parties outlined in the DDA – was refined and revised as the entitlement date shifted. Overall, the Schedule of Performance includes a timeline that results in a completed affordable housing development by 2035 or as late as 2040 if all applicable “buffers” are exercised as permitted in the DDA.
A summary of the key project terms is provided below:
The City will contribute $3 million to support the affordable housing development in the form of a loan. The Commercial Developer will contribute $2.9 million to support pre-development costs for affordable housing. The City will disburse the $2.9 million to the Residential Developer in the form of a zero-interest, forgivable predevelopment loan.
The Commercial Developer will finance and construct the shared underground parking garage across the entire site.
The shared parking will include a minimum of 37 reserved residential spaces, and 37 spaces in the commercial garage will be publicly accessible during evenings and weekends. Staff will execute a Shared Parking Agreement with the Development Team to memorialize these terms and conditions, consistent with the City’s standard template for this type of agreement.
The Residential Developer will provide ground floor space in the affordable housing building at $1 per year to the not-for-profit organization Self-Help for the Elderly. The Commercial Developer will make an annual payment of $100,000 per year for up to four years, that the City will retain if the underground parking garage construction does not start within the timeframe in the DDA. The Commercial Developer will provide additional assurances for the affordable housing in the form of:
oA deposit of $3 million at building permit issuance for the garage (returned if affordable housing is completed).
oAn additional deposit of $3.5 million at certificate of occupancy of the commercial/office building (returned if affordable housing is completed).
If the Residential Developer is unable to proceed, depending on when this failure occurs:
oThe Commercial Developer will find an alternate affordable housing partner, with the City’s approval, who can revise and deliver the affordable housing component within a to-be-determined timeframe. oAll plans and entitlements will revert to the City to find an alternate developer who can deliver the residential units or explore alternatives such as a market-rate project. The project will be subject to prevailing wage and Department of Industrial Relations (DIR) registry requirements.
The Development Team is encouraged to make a good faith effort to propose a joint public art proposal for the residential and commercial components of the project at the project site. The Development Team will enter into a Temporary Construction Easement, in a form approved by the City Council, prior to the issuance of any building permits.
Planning Commission Recommendation
On April 28, 2026, the Planning Commission held a public hearing to consider the Project. Public comments were provided and expressed support for the new affordable housing that would be built and that the project was using union labor; and comments also expressed concern that labor agreements had not been reached with all trades and that the project could create traffic and circulation impacts around the neighborhood and along 5th Avenue. Commissioners expressed support for the affordable housing and the Project’s architectural design, with concerns raised about the significant amount of time that would be needed before the Project was built and occupied. Following deliberations, the Commission voted unanimously to recommend that the City Council adopt an Ordinance approving a Development Agreement for the
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Project; adopt a Resolution approving the Site Plan and Architectural Review (“SPAR”), Special Use Permit (“SUP”), and Site Development Planning Application (“SDPA”) for the Project; and adopt a Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program (“MMRP”) for the Project.
The Commissioners also recommended that two “Walk of Honor” plaques that are installed in the sidewalk surrounding the Project site be removed and given to the City. The City will determine whether and how to preserve these plaques.
The draft Ordinance to adopt the Development Agreement is provided as Attachment 1, the Resolution including the draft Disposition and Development Agreement (DDA) and its exhibits is provided as Attachment 2, and the draft Resolution with the Findings for Approval, Conditions of Approval, and MMRP is provided as Attachment 3.
Health & Safety Code Section 33433 Summary Report
As the Talbot’s Site is a former Redevelopment Agency (“RDA”) property, a Summary Report (“33433 Report”) was drafted pursuant to California Health & Safety Code Section 33433. This statute requires that, prior to the sale, lease, or other disposition of real property acquired with Redevelopment funds, the conveying entity must prepare a report summarizing the financial and development-related terms of the proposed transaction. The 33433 Report provides estimates of the cost of the transaction that will result in the 71-unit affordable housing development on the Talbot’s Site, the value of the site at its highest and best use, and the reuse value of the site. The 33433 Report is provided as Attachment 6.
PROJECT OVERVIEW:
Site Description
The Project site consists of four parcels that collectively occupy an entire block, with the site bounded by East 4th Avenue to the northwest, South Railroad Avenue and the Caltrain right-of-way to the northeast, South B Street to the southwest, and East 5th Avenue to the southeast. The Project site is 1.16 acres in size, with a General Plan Land Use Designation of Downtown Retail Core and a zoning designation of CBD/R, Central Business, Residential Overlay District. It is also one block south of the Downtown Historic District.
The Project site is currently developed with four commercial buildings (including retail, fast dining and restaurant uses) and a City-owned surface parking lot. Existing buildings along South B Street and East 4th and 5th Avenues range between one to two stories in height. Surrounding uses include the Downtown Caltrain Station to the east approximately 0.2 miles away, a mix of commercial uses to the north and south, and a seven-story residential building to the east.
Project Description
The proposed seven-story residential building would be approximately 76,072 square feet in footprint, 85.5 feet in height to the highest plate line, and would occupy the City-owned parcel located at the corner of South Railroad Avenue and East 4 th Avenue. The project contains 72 units, including 71 affordable units and one manager unit. The 71 affordable residential units would consist of three studio units, 24 one-bedroom units, 22 two-bedroom units, and 22 three-bedroom units. The residential building would be assigned 37 below grade parking spaces. The ground floor includes a lobby, leasing office, common spaces for residents, and approximately 5,964 square feet of community non-profit space (Self-Help for the Elderly). Other public facilities for residents are on the second floor, including a laundry room, community room and a 4,271 square feet courtyard terrace with landscaping, outdoor furniture and play equipment.
The six-story commercial building is approximately 162,934 square feet in size, which consists of 148,939 square feet of office and 13,995 square feet of ground floor retail space. The building would be 85.8 feet in height to the highest plate line.
The L-shaped building would occupy the remaining portion of the block, wrapping around the residential building. The ground floor of the commercial building would include a lobby, office uses, bike storage and all the retail area. The commercial building’s required open space is provided on the ground level (794 square feet) and upper-level patio spaces (1,487 square feet) for a total of 2,281 square feet of open space areas, consistent with SMMC Section 27.38.090.
APPLICABLE HOUSING LAWS:
State Density Bonus Law
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The Project utilizes State Density Bonus Law (SDBL) in accordance with Government Code Section 65915. SDBL allows for increased residential density, reduced parking standards, and “incentives” and “waivers” or reductions from development standards for residential projects that provide a certain percentage of units as affordable to Very Low, Low, or Moderate- Income households.
The base residential density of the site is 58 units, while the Project is proposing a total of 71 units, or a 22% density bonus.
By providing 100% of the units at the low-income level (or 80% of Area Median Income) with a target average AMI of 60% or less, the Project is eligible for an unlimited percentage of density bonus, up to four concessions, up to 33 feet of additional building height, unlimited waivers or reduced development standards, and no parking standards, given that the Project is within half mile of major transit.
Although the Project is eligible for four concessions and unlimited waivers, the Project application is seeking two concessions and six waivers for aspects of the Project that do not meet various City development standards. A summary of the Project’s concessions and waivers, and the applicant’s density bonus request letter are included as Attachment 10.
CITY PLANS, POLICIES, AND STANDARDS:
General Plan and Zoning Code
As this Project was submitted prior to General Plan 2040’s effective date on April 17, 2024, it is subject to the goals, policies, and actions within General Plan 2030 under City Council Resolution No. 25 (2024). The General Plan 2030 Land Use Map designates the Project site as Downtown Retail Core, which is intended to combine a diversity of uses including a mix of ground floor retail uses to foster retail vitality and improve Downtown’s pedestrian-oriented environment. With approval of the requested concessions and waivers, the Project will conform to all applicable General Plan standards. A list of applicable General Plan 2030 policies and a discussion of the Project’s conformance are included in the Draft Resolution (Attachment 3). Consistent with its land use designation, the Project site is zoned CBD (Central Business District), Residential Overlay District (CBD/R). A Project Data Table listing the applicable Zoning Code standards and the Project’s conformance to them is included as Attachment 9.
The Project site is located within 0.5-mile of a major transit stop, (the Downtown San Mateo Caltrain station), and is therefore not subject to minimum parking requirements or parking in-lieu fees, pursuant to Government Code Section 65863.2 (AB 2097). Nevertheless, the Developer Team is proposing to provide a total of 137 spaces in the subterrain parking garage. Both residential and commercial parking spaces include standard, compact, and American with Disabilities Act (ADA) compliant stalls and stalls equipped with mechanic lift.
Downtown Area Plan
Located within Downtown Retail Core sub-area in the Downtown Plan, the Project is subject to the Downtown Area Plan, which establishes goals and policies to implement the overall vision of the downtown. In conformance with the Downtown Area Plan, the Project includes ground floor retail and commercial uses and office and residential uses on the upper floors, with extensive glazing at ground level to enhance visibility into indoor activity. The proposed new street trees, streetlights, public furnishing zones along sidewalks, and wider sidewalk paving are consistent with both the Downtown Retail Core policies and compatible with recently constructed Project’s in the same vicinity.
Citywide Pedestrian Master Plan
The Citywide Pedestrian Master Plan contains recommendations to improve the pedestrian realm throughout the city. The Project is in substantial conformance with the Pedestrian Master Plan in that the Project meets the sidewalk guidelines and is compliant with the Zoning Code and ADA standards on all frontages, resulting in wider sidewalk widths when compared to existing conditions. In addition, the Project provides aesthetic and functional improvements in the pedestrian environment, including pedestrian facilities, street furnishings, pedestrian scale lighting, plant containers, street trees, and bike racks.
Bicycle Master Plan
The City’s Bicycle Master Plan provides policies and recommendations to implement citywide infrastructure improvements to support bicycle use. The Project does not propose any features that would conflict with the future improvements
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identified in the Bicycle Master Plan and provides a total of 23 short-term bicycle spaces (8 office, 7 retail, and 8 residential) and 140 long-term bicycle spaces (56 in the non-residential building, 84 in the residential building). As required by the City’s Zoning Code, four bike racks (eight spaces) are provided for the residential building, and a total of eight racks (16 spaces) are provided for the commercial building adjacent to building entrances.
Transportation Impact Analysis
Vehicle Miles Traveled CEQA Analysis
A Transportation Impact Analysis (TIA) was prepared by Fehr and Peers to analyze the Project’s transportation impacts in accordance with the standards of the California Environmental Quality Act (CEQA), the City’s General Plan, and the City’s TIA Guidelines (Attachment 6 Exhibit A). Since the implementation of Senate Bill 743, the Governor’s Office of Land Use and Climate Innovation (formerly Office of Planning and Research) established Vehicle Miles Traveled (VMT) as the metric used under CEQA for determining the significance of transportation impacts in a Guideline. The TIA concludes that the Project will not result in significant VMT CEQA impacts and that no further VMT analysis is required, based on the Project’s proximity to high quality transit (0.5 miles from the Downtown San Mateo Caltrain Station) in accordance with the Guideline.
Level of Service Impact and Local Transportation Analysis In addition to analyzing the Project’s VMT impact, Fehr & Peers conducted a Level of Service (LOS) analysis at six study- intersections within the Project vicinity. Although the TIA identified that intersection operations worsened from existing to cumulative, plus Project conditions, all six study intersections would continue to operate acceptably in both the AM and PM peak periods. Based on the City’s threshold for adverse intersection operations outlined in the City’s TIA Guidelines, the Project would not have an adverse effect on traffic conditions under cumulative or cumulative plus Project conditions. The TIA also considered impacts to vehicle, pedestrian and bicycle site access, hazards and emergency vehicle access, and parking in accordance with the City’s General Plan Circulation Element. The TIA concludes that the proposed Project would not result in any adverse effects on traffic operations at the study locations.
Transportation Demand Management (TDM)
The Project will implement the Transportation Demand Management (TDM) Plan for the commercial part of the proposed Project, prepared by the City’s TDM Consultant, Steer, which is included as Attachment 8. While the Project does not cause a VMT impact in accordance with CEQA, the City/County Association of Governments (C/CAG) of San Mateo County requires Projects that generate more than 100 average daily trips to implement trip reduction measures. Based on C/CAG’s guidelines, this Project is required to reach a minimum 25% trip reduction through TDM measures. The Project’s TDM Plan estimates an overall trip reduction of 25% through implementation of various core TDM measures as required by C/CAG. The draft Conditions of Approval requiring implementation of these TDM measures are in Attachment 3.
PLANNING APPLICATIONS:
Development Agreement Ordinance
The Project includes an Ordinance that establishes a DA between the City, the Developer Team, and the owner of the property leased by the Commercial Developer that is part of the Project (Attachment 1). The purpose of the Development Agreement is to provide assurance to the Developer Team that the Project can be built as entitled and will be subject only to the laws, policies, and regulations in place on the effective date of the agreement. The term of the DA is 14 ½ years from the effective date, which accounts for the maximum time allowed for the Project’s completion in the Schedule of Performance using extensions, or “buffers.” The term may be extended in the case of “force majeure” events, which are delays that occur outside the control of the parties to the DA.
Site Plan and Architectural Review (SPAR)
The Project requires a Site Plan and Architectural Review (SPAR) approval for construction of new buildings and no on-site loading zone pursuant to San Mateo Municipal Code (“SMMC”) Section 27.08.030. Overall, the Project design supports orderly and harmonious development of the site, complies with applicable development standards and General Plan policies, and would not result in adverse impacts. Details on the SPAR findings for approval are included in the Draft Resolution (Attachment 3).
SMMC Section 27.64.390 requires a total of four off-street, 10-foot by 25-foot loading berths for freight loading. The code
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requires two loading berths for office use, two for retail, and one for residential use, although the residential may be eliminated in mixed-use developments where a minimum of one loading berth is required for nonresidential uses.
The Project proposes two on-street loading areas and no off-street loading facilities. The Developer Team is requesting a SPAR to allow a modification of the loading requirements pursuant to SMMC 27.64.390. Staff reviewed the proposed loading zones and concluded that the Project meets the applicable SPAR findings for the modification of the loading requirements, as discussed in greater detail in the Draft Resolution (Attachment 3).
Site Development Permit and Tree Removal (SDPA)
Municipal Code Chapter 23.40 requires a Site Development Planning Application (SDPA) approval for removal of major vegetation in conjunction with redevelopment. There are a total of 23 trees on-site, all of which qualify as protected trees and are proposed to be removed. These trees are located within the proposed building footprint or other site improvements.
The equivalent landscape unit (LU) value of the removed trees, noted at 260.14, would be replaced as conditioned via planting of new trees, payment of an in-lieu fee, or a combination of both in accordance with Municipal Code Section 27.71.
Additional details on the SDPA findings for approval are included in the Draft Resolution (Attachment 3).
Special Use Permit (SUP)
The Project will require a Special Use Permit (SUP) to allow ground floor community service/non-profit use in required retail frontage area (SMMC Section 27.74). Overall, the proposed mixed-use with some ground floor community service/non- profit and housing above is substantially similar to and compatible with adjacent uses. The proposed community service/non-profit tenant is an active use, as volunteers visit the site on a daily basis and the organization conducts events on site that attract visitors. Thus, granting an SUP for a community service/non-profit use as part of a mixed-use Project at this location is consistent with the City’s General Plan, Housing Element, Downtown Area Plan, and Zoning Code requirements, and the SUP findings for approval are included in the Draft Resolution (Attachment 3).
NEXT STEPS:
Under state law, a Development Agreement must be approved by ordinance. The ordinance approving the DA would become effective 30 days after adoption. No later than 10 days after the City enters into the DA, it should be recorded against the property.
By approving the DDA, the City Council would also approve the Schedule of Performance and several additional agreements provided as exhibits to the DDA: the Ground Lease, Lot Tie Agreement, Reciprocal Easement Agreement, Construction Easement, Predevelopment Loan documents, and Permanent Loan documents. Some of these will not be executed until later project milestones, which may not take place for several years.
The Predevelopment Loan documents will be executed immediately upon approval. The Reciprocal Easement Agreement, Lot Tie Agreement, and Temporary Construction Easement will be executed prior to issuance of the first building permit, as these agreements apply to the construction of the underground parking garage. The Ground Lease and Permanent Loan documents will be executed concurrently with the close of financing for the residential component of the Project. The City will also enter into a Shared Parking Agreement with the Developer Team; this applies to the completed underground parking garage and will be executed at a later date.
In addition to executing the above documents, within 120 days of the effective date of the DA, the Commercial Developer will deposit $2,900,000 with the City to be provided in the form of a loan to the Residential Developer for predevelopment costs. Staff has already reviewed a draft draw request of eligible predevelopment costs from the Residential Developer and anticipates disbursing funds shortly after receiving the deposit. Per the Schedule of Performance in the DDA, the Commercial Developer has up to four years from the effective date of the DA to obtain a building permit for the construction of the underground parking garage.
NOTICE PROVIDED AND PUBLIC COMMENTS:
In accordance with Government Code Section 65090, notice of this Public Hearing was published in the San Mateo Daily Journal newspaper more than ten days in advance of this City Council meeting. In accordance with Government Code Section
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65091 and the City’s Municipal Code noticing requirements, this Public Hearing was noticed to the following parties more than ten days in advance of this Planning Commission meeting:
●Property owners, residential tenants and business tenants within 1,000 feet of the Project site. ●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.
There were a total of 14 public comments submitted to staff (Attachment 13). Public comments received 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.” FISCAL IMPACT:
The City will provide Three Million Dollars ($3,000,000) in the form of a loan to support the affordable housing construction.
The City is appropriating Two Million Dollars ($2,000,000) from the Low Moderate Income Housing Asset Fund (Fund 255) and One Million Dollars ($1,000,000) from the Commercial Linkage Fee Fund (Fund 270) to the Housing Bespoke Project to fund the loan. This loan is an eligible use of both funding sources and there are sufficient balances in both Fund 255 and Fund 270 to support this loan activity.
The City will provide an appropriation of Two Million Nine Hundred Thousand Dollars ($2,900,000) in revenue in the form of a Developer Equity Contribution to the Predevelopment Bespoke Project. The Commercial Developer will make this contribution to the City, which shall be held by the City and provided to the Residential Developer in the form of a Predevelopment Loan, to pay predevelopment expenses associated with the Residential Development.
The applicants would be subject to payment of the following impact fees and in-lieu fees. The residential and commercial components have separate developers who will pay their respective impact fees, with the commercial impact fees being collected prior to issuance of building permits, and the residential impact fees being deferred and collected prior to final occupancy.
●Commercial Linkage Fee, assessed on new commercial and office floor area to offset the impact of development Projects on the need for affordable housing. Fee is estimated at $4,970,900. ●Child Care Development Fee, assessed on commercial and office floor area, to offset the impact on the need for future childcare space needs by new development. Fee is estimated at $344,760. ●Transportation Improvement Fee, to offset the cost of transportation improvements to serve new development.
The fee is estimated at $992,940.
●School Impact Fees, to offset the increased demands on school facilities caused by new development based on new residential and commercial floor area. The School Impact fees are calculated by the School District. ●Landscape Unit In-Lieu Fee, to compensate for removed street trees, on-site trees and for every 400 square feet of required landscaping area in accordance with the City’s Comprehensive Fee Schedule. The fee is estimated at $57,065.
●Wastewater Capacity Charge, for net increase of wastewater generation based on net increase of average daily flow for all uses. The fee is estimated at $710,255.
●Parkland Impact Fee, to mitigate impact to parkland and open space recreational areas as a result of residential development. The fee is estimated at $1,519,970.
ENVIRONMENTAL DETERMINATION:
In accordance with CEQA, an Initial Study and Mitigated Negative Declaration (IS/MND) has been prepared to assess the Project’s environmental impact (Attachment 11). The IS/MND concludes that the Project would not have significant effects on the environment with implementation of Mitigation Measures. The Project’s Mitigation Monitoring and Reporting Program (MMRP) is included in the Project approval resolution (Attachment 3). The Mitigation Measures are also included as conditions of approval.
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In compliance with AB 52, which requires the City to provide written notification to Native American tribes that are traditionally and culturally affiliated with the geographic area, staff sent letters via certified mail and/or emails to eleven (11) Native American individuals and organizations on March 27, 2024. The City received one response pursuant to AB 52 from the Indian Canyon Band of Costanoan Ohlone People on April 19, 2024. Prior to the issuance of a building permit for demolition, the applicants shall provide proof of an agreement with a qualified Native American representative to provide at least one cultural sensitivity training to construction personnel prior to grading activities.
Distribution of the IS/MND consisted of a paper copy available at City Hall and at the Main Library, and posted online on the City’s website. A Notice of Intent (NOI) was sent to all property owners and tenants within 1,000 feet of the Project site, publicly noticed in the San Mateo Daily Journal newspaper, posted in the San Mateo County Clerk-Recorder’s Office, and submitted to the State Clearinghouse, Office of Land Use and Climate Innovation. The IS/MND was circulated for a 30-day public review period from October 4, 2024, to November 4, 2024. Staff received 10 items of public correspondence pertaining to the IS/MND. A memo responding to the public comments is included in Attachment 11 Exhibit B. No comments required further analysis or resulted in the identification of new or worse impacts.
ATTACHMENTS
Att 1 - Draft Ordinance – Development Agreement
Exhibit A - Development Agreement
Att 2 - Draft Resolution – Disposition and Development Agreement Exhibit A - Disposition and Development Agreement
Exhibit B - Development Plan
Exhibit C - Schedule of Performance
Exhibit D - Initial Financing Plan
Exhibit E - Ground Lease
Exhibit F - Lot Tie Covenant
Exhibit G – Form of REA
Exhibit H – Site Plan
Exhibit I – Temporary Construction Easement
Exhibit J - Memo of Disposition & Development Agreement Exhibit K – Predevelopment Loan Agreement
Exhibit K 1 – Loan Agreement
Exhibit L – Insurance
Att 3 - Draft Resolution – SPAR, SDPA and SUP Approval with Findings and Conditions of Approval Att 4 - Draft Resolution –Developer Equity Contribution Appropriation Att 5 - Draft Resolution –Housing Funds Appropriation Att 6 - Summary Report – H&SC §33433
Att 7 - Location Map
Att 8 - Project Plans
Att 9 - Project Data Table
Att 10 - Density Bonus Summary and Request Letter
Att 11 - Initial Study/Mitigated Negative Declaration
Exhibit A - Technical Studies
Exhibit B - Responses to IS/MND Comments
Att 12 - Transportation Demand Management Plan
Att 13 - Public Comments
STAFF CONTACTS
Christina Horrisberger, Assistant City Manager
[email protected]
(650) 435-0010
Rachel Horst, Housing Manager
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[email protected]
(650) 522-7223
Elaine Ling, Principal Planner
[email protected]
(650) 522-7216
Lisa Costa-Sanders, Contract Planner
[email protected]