660\14\4212950.1
CITY OF SAN MATEO
DRAFT ORDINANCE NO. _____(2026)
APPROVING A DEVELOPMENT AGREEMENT FOR
445 SOUTH B. STREET, “BESPOKE” MIXED USE DEVELOPMENT
(PA-2023-012)
WHEREAS, on January 4, 2021, the City Council approved Resolution No. 3 (2021) declaring the City- owned parking lot at East 4 th Avenue and South Railroad Avenue as “surplus land” and subsequently released a Notice of Surplus Lands Availability to all housing developers that have registered with the State Department of Housing and Community Development (HCD); and
WHEREAS, on April 19, 2021, the City received four proposals for the acquisition and development of Talbot's Lot, including a proposal from the three-party Development Team composed of Prometheus Real Estate Group, Harvest Properties, and Alta Housing; and
WHEREAS, on October 4, 2021, the City Council approved the City entering into an Exclusive Negotiating Agreement (ENA) for the redevelopment of this City-owned surface parking lot located at 4th and South Railroad Avenues, with amendments to the ENA approving extensions to July 14, 2026; and WHEREAS, DTSM Talbots Ventures, LLC, (herein referred to as the “Applicant”) submitted a planning application (PA-2023-012) on February 24, 2023 associated with the construction of a new mixed-use development totaling 239,628 square feet and consisting of one seven-story affordable housing building approximately 76,072 square feet in area and one six-story building totaling 162,926 square feet of office/commercial area located at 445 South B Street (collectively referred to as “Project”) in the City; WHEREAS, the Applicant has requested a Development Agreement with the City (the “Agreement”); and WHEREAS, the applicant wishes assurance that it may proceed with the Project under the laws, regulations, and policies as specified in the Agreement, in effect on the date of the approval; and WHEREAS, the state legislature has authorized cities to enter into Development Agreements in order to provide assurance to developers that they may proceed with projects in reliance on existing laws, regulations, and policies; and
WHEREAS, the City, in Resolution No. 120 (1990), has adopted procedures for reviewing and entering into such Development Agreements; and
WHEREAS, the Planning Commission considered the application on April 28, 2026, and recommended adoption of the Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program for the Project (PA-2023-012); and
WHEREAS, the Planning Commission recommended approval of the construction of a new mixed-use development consisting of two new buildings, a subterrain parking garage, landscaping, roadway and other public improvements and common areas, subject to the Findings for Approval and Conditions of Approval; and WHEREAS, the City Council held a duly noticed public hearing on __________,2026, at which time all public comments were considered.
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7 NOW, THEREFORE BE IT RESOLVED, THAT THE CITY COUNCIL OF THE CITY OF SAN MATEO, CALIFORNIA, FINDS THAT:
1. The Council finds that the environmental impacts of the Agreement were analyzed in the Mitigated Negative Declaration, before approving the Agreement, as included in City Council Resolution No. ______.
2. In accordance with Government Code section 65867.5(b), the Agreement is consistent with the City’s General Plan, Downtown Area Plan, Citywide Pedestrian Master Plan, and Bicycle Master Plan, for the reasons set forth in the Findings for Approval, as included in City Council Resolution No. ___ attached in the Administrative Report accompanying this Ordinance, and
3. The Agreement is compatible with the requirements of the City’s Zoning Ordinance for the reasons set forth in the Findings for Approval, as included in City Council Resolution No. ___ attached in the Administrative Report accompanying this Ordinance, and
4. For the reasons set forth in the Administrative Report accompanying this Ordinance, the Agreement provides substantial public benefits to persons residing or owning property outside the boundaries of the Project, beyond the exactions for public benefits required in the normal development review process under federal, state, or local law.
NOW, THEREFORE, THE COUNCIL OF THE CITY OF SAN MATEO ORDAINS AS FOLLOWS:
Section 1. The Council approves the Agreement attached as Exhibit A to this Ordinance and authorizes the City Manager to execute the Agreement.
Section 2. A Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program (MMRP) were prepared for this project in accordance with the provisions of California Environmental Quality Act (CEQA) and adopted by the City Council on _________, 2026.
Section 3. Severability. If any section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be unconstitutional, such decision shall not affect the validity of the other remaining portions of this ordinance. The City Council hereby declares that it would have passed this ordinance and each section, subsection, sentence, clause or phrase thereof, irrespective of the fact that any one or more section, subsection, sentence, clause or phrase be declared unconstitutional.
Section 4. Publication. This Ordinance shall be published in summary in a newspaper of general circulation, posted in the City Clerk's Office, and posted on the City's website, all in accord with Section 2.15 of the City Charter.
Section 5. Recordation. In accordance with Government Code Section 65868.5, the Agreement will be recorded no later than 10 days after execution.
Section 6. Legislative History and Effective Date. This ordinance was introduced on ___________, 2026 and adopted on ____________, and shall be effective 30 days after its second reading and adoption.