San Francisco Redevelopment Agency


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201-015.09-002                                                                                   Agenda Item No. 4 ( b )

Meeting of May 5, 2009

 

MEMORANDUM

 

TO:                             Agency Commissioners

 

FROM:                       Fred Blackwell, Executive Director

 

SUBJECT:                Authorizing a First Amendment to the Personal Services Contract with the Puccini Group, A California Corporation, to Extend the Contract Term 12 months from May 5, 2009 to May 30, 2010; To Amend the Scope of Services to Provide Strategic Plans for Four Restaurants Participating in the Agency’s Amended Revolving Loan Program; and to Increase the Contract Amount by $210,000 for a Total Aggregate Amount Not to Exceed $235,000; former Western Addition Redevelopment Project Area A-2

 

EXECUTIVE SUMMARY

 

The purpose of this memorandum is to request authorization of a First Amendment to a $25,000 sole source Personal Services Contract (“PSC”) with the Puccini Group (the “Contractor”), a restaurant consulting firm, which would extend the term of the contract for an additional 12 month period, to May 30, 2010; amend the scope of services, and increase the contract amount by $210,000 for an aggregate amount not to exceed $235,000.

 

The proposed First Amendment to the PSC will expand the Contractor’s Scope of Services to include, among other things, a monthly review and analysis of the Fillmore Restaurant Partners Profit and Loss (“P&L”) statements, and recommendations for additional operational modifications aimed at decreasing costs and increasing sales

 

Staff recommends approval of the First Amendment to the Personal Services Contract with Puccini Group, Inc to expand the Scope of Services, extend the completion date, and increase the amount of the contract.

 

 

DISCUSSION

 

With the creation of the Jazz District in the mid-1990s, a vision was born; a special place replete with museums, shops, and clubs celebrating the Fillmore’s proud legacy as a cradle for jazz and blues.  The Agency, along with the Mayor’s Fillmore Western Addition Economic Development Taskforce (the Mayor’s “Taskforce”) undertook the commercial revitalization of Lower Fillmore Street by establishing the area as a destination dining and entertainment district organized around the theme, “The Old Fillmore Jazz Preservation District” (the “District”).


 

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In late1990s, the Agency launched several projects that together would lead to the creation of the District in the now former Western Addition Redevelopment Project Area A-2 (“Project Area”) by investing over $15 million in a combination of small businesses, parking, and initial marketing activities.   To date these activities have resulted in the creation of four Jazz theme restaurants and entertainment venues, a public parking garage, a new streetscape for the District and assistance with the establishment of the Fillmore Jazz Community Benefits District.  In addition to the Agency’s direct investment, there have been 11 new businesses (three new restaurants slated to open in 2009) that have been leveraged as result of the Agency’s investments.  While these efforts have moved the District forward, the current economic crisis poses a real and credible threat that has hampered the district’s growth.

 

Due to a severe downturn in the economy and lack of sufficient marketing of the District, several businesses the “Fillmore Restaurants” who received Agency loans in the past, requested additional Agency assistance in the form of loan restructuring and additional funding.  On December 9, 2008 the Agency Commission (the “Commission”) by Resolution No.146-2008 approved an amendment to the Fillmore Jazz Preservation District Revolving Loan Program (the “Loan Program”) to provide business assistance loans to property owners in the District.  In addition to amending the Loan Program, the Commission by Resolution No. 145-2008 authorized the reprogramming of Agency funds to restructure and make additional loans to its Fillmore Restaurants.

 

To ensure that every opportunity is provided to achieve the success of the Fillmore Restaurants, the Agency Commission recommended that a restaurant consulting firm familiar with the operation and marketing of ‘destination’ entertainment venues be secured to assist the restaurants in identifying all available market opportunities and trends to increase their sales revenues.

 

On February 4, 2008 the Agency entered into a sole source Contract with the Puccini Group to evaluate the restaurants’ operational performance and efficiencies; and to provide the services described in attachment “A” of this document.  The Contractor was retained following Agency staff’s solicitation of bids from those restaurant management consulting firms that work specifically with large upscale concept food and beverage operations in the San Francisco area.  The Contractor has provided Agency staff and the Fillmore Restaurants with a market report and strategic direction attachment “B”.


 

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As a condition of making these significant loans  the Commission required that the Fillmore Restaurants provide monthly financial statements to the Agency for its review for the next year, as well as work with the Contractor and its recommendations that will aid the Fillmore Restaurants in meeting their financial goals and projections.  Therefore, Agency staff is requesting a first amendment to the sole source contract with the Contractor to provide an annual strategic plan to improve profitability of the Fillmore Restaurants (the “Client”).  The plan is to have manageable goals that can be tracked and reviewed monthly to confirm that all proposed measures are being followed and addressed, and that the results of said actions are enabling the restaurants to meet the desired profitability goals outlined in the strategic plan.

 

The following five phases describe the services the Contractor will provide to develop a strategic plan and provide one year of monthly assessment and management of the restaurants’ operational progress. 

Phase 1 – Market Report Review: Phase 1 to include:

1.      Review of Market Report (provided to the Agency on April 10, 2009) with Agency staff and all Fillmore Restaurant Owners (collectively or individually) to confirm understanding of, and agreement with the report content.

2.      The Contractor will provide meeting notes from the above mentioned meeting in the form of a “Preliminary Strategic Plan” and “Operations Analysis Agenda”.

$ 0.00 for Phase 1 (courtesy no charge)

Phase 2 – Operations Analysis: Phase 2 to include:

1.   The Contractor will conduct an onsite review of operations at each venue per the outline provided in Phase 1. Duration to be one (1) week $ 0.00 for Phase 1 (courtesy no charge)

a.       Review will require visits during multiple meal periods, and all staff must be made available for interviews, if needed.

b.   Some visits may be unannounced, or in the form of a “secret shopper”.

2.   Obtain and review current financials from each venue. Fillmore Restaurant Owners will need to be available to provide description of costs, etc. as needed.

Phase 2:  duration to be four (4) weeks.

$ 25,000.00 for Phase 2 and 3


 

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Phase 3 – Strategic Plan: Phase 3 to include:

1.      Developing the final Strategic Plan based upon information obtained in Phase 2. Documents will be submitted to the Agency staff first, and upon approval, presented to the Fillmore Restaurant Owners in a meeting format.

2.      Strategic Plan would include, but not be limited to:

a.       Financial Goals

b.      Operational Goals

c.       Marketing and Public Relations Goals

d.         Special Projects Goals (i.e. capital improvements or infrastructure upgrades/modifications)

Phase 3: duration to be three (3) weeks.

Phase 4 – Monthly Report: Phase 4 to include:

1.      Monthly Review including:

a.       Profit and Loss statement review: report must be made available by Fillmore Restaurant Owners to the Agency and Contractor fifteen (15) days after close of month.

b.      Fillmore Restaurant Owners and managers meeting: will be conducted within twenty (20) days after close of month. Meeting to include those persons responsible for Special Projects, if applicable.

c.       Restaurant Secret Shopper: to be conducted within the month.

d.   Agency public relations meetings to be conducted within the month.

2.      Monthly Report including (to be delivered by the end of each month):

a.       Financial Report highlighting deviations from the pro forma budget provided in the Strategic Plan, and analysis of factors contributing to these deviations.

b.      Operations Report highlighting observed actions or activities that could be contributing to abovementioned financial expense results. Review would also compare restaurants’ current activities against Operational Goals, identify which goals are being met/not met, and provide amendments to future goals if those previously set are not yielding results, or are mutually agreed to be unattainable.

c.       Marketing and Public Relations Report highlighting observed actions or activities that could be contributing to abovementioned financial revenue results. Review would also compare restaurants’ current activities against Marketing and Public Relations goals identify which goals are being met/not met, and provide amendments to future goals if those previously set are not yielding results, or are mutually agreed to be unattainable.


 

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d.   Special Projects Report highlighting progress of agreed upon projects. In some cases, the Contractor may provide separately contracted services for said projects. In these occasions, references may be made to other work of the Contractor (i.e. design, purchasing, etc).

3.      Documents will be submitted to the Agency staff first, and upon approval, presented to the Fillmore Restaurant Owners in a meeting format.

Phase 4: duration to be twelve (12) months.

$180,000.00 for Phase 4

The Contractor will proceed to Phase 5 after Agency staff and venue owners’ review and approval of twelve (12) submissions of Phase 4 work.

Phase 5 – Annual Report: Phase 5 to include:

1.      The Contractor will provide an Annual Report that:

a.       Responds to the goals outlined in the Strategic Report, and as amended through the Monthly Reports.

b.   Provides updated SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis for each venue.

2.   Documents will be submitted to the Agency staff first, and upon approval, presented to the Fillmore Restaurant Owners in a meeting format.

 The SWOT document will be provided at the end of the term.

 $ 5,000.00 for Phase 5

 

In addition to the above scope of services to be provided by this Contractor, the ongoing efforts to protect and safeguard the additional investment made by the Agency to the Fillmore Restaurants, in the form of the increased and restructured revolving loans, and to ensure that all steps have been taken to properly market and promote the Fillmore Jazz Preservation District as an entertainment destination in San Francisco are:

 

a.       Marketing Contract with Traina Consulting for Public Relations and Marketing (contract term four months).

 

b.      The Fillmore Jazz Community Benefit District will be working with a consultant on branding and naming the District; a logo, street branding and banners; and a District website design.


 

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c.       The Office   of Economic and Workforce Development will develop and implement a marketing and promotions program that capitalizes on the physical development, business attraction , and marketing already completed or underway in the district to continue to enhance the public’s awareness and perception of the area.  The program will span five (5) years, with the option of extending should the resources be available. 

 

Both the original Personal Services Contract with the Contractor and this First Amendment to the Contract are exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15061(b)(3).  The activities under the Contract and First Amendment facilitate and enhance the continued operation of the venues in the Jazz District and would have no resultant significant environmental effects.

 

 

(Originated by: Stephen Maduli-Williams, Deputy Executive Director of Community and Economic Development)

 

 

 

Fred Blackwell

Executive Director

 

 

 

Attachment A             - Original Scope of Services ($25,000 PSC)

Attachment B             - Market Report and Strategic Direction Report of the Fillmore Corridor

Attachment C             - First Amendment to the Personal Service Contract with Puccini Group


 

 

RESOLUTION NO. 42-2009

 

 

 

AUTHORIZING A FIRST AMENDMENT TO THE PERSONAL SERVICES CONTRACT WITH THE PUCCINI GROUP, A CALIFORNIA CORPORATION, TO EXTEND THE CONTRACT TERM 12 MONTHS FROM MAY 5, 2009 TO MAY 30, 2010; TO AMEND THE SCOPE OF SERVICES TO PROVIDE STRATEGIC PLANS FOR FOUR RESTAURANTS PARTICIPATING IN THE AGENCY’S

AMENDED REVOLVING LOAN PROGRAM; AND TO INCREASE

THE CONTRACT AMOUNT BY $210,000 FOR A TOTAL

AGGREGATE AMOUNT NOT TO EXCEED $235,000

 

BASIS FOR RESOLUTION

1.                  The Redevelopment Agency of the City and County of San Francisco (the
“Agency”) along with the Mayor’s Fillmore Western Addition Economic Development Taskforce undertook the commercial revitalization of Lower Fillmore Street by establishing the area as a destination dining and entertainment district, “The Old Fillmore Jazz Preservation District” (the “District”).

 

2.                  In the mid 1990s, the Agency launched several projects that together led to the creation of the District in the now former Western Addition Redevelopment Project Area A-2 by investing over $15 million in a combination of small businesses, parking, and initial marketing activities.  While these efforts have moved the District forward, the current economic crisis poses a real and credible threat that hampers the District’s growth.

 

3.                  Due to the downturn in the economy and the lack of sufficient marketing of the District, several businesses which the Agency has made a significant financial investment, namely:  Yoshi’s Jazz Club & Restaurant, 1300 on Fillmore, Rassela’s Jazz Club and Sheba Lounge (the “Fillmore Restaurants”) requested additional Agency assistance in the form of loan restructuring and additional funding.  On December 9, 2008, the Agency Commission by Resolution No. 146-2008 approved an amendment to the Fillmore Jazz Preservation District Revolving Loan Program to allow for additional tenant improvement funding and business assistance loans to businesses in the District.

 

4.                  On December 16, 2008, the Agency Commission authorized loans to the Fillmore Restaurants, with the condition that for a 12-month period following the fulfillment of the loan, each restaurant operation will submit quarterly Profit & Loss statements (“P&L”) to the Agency.  The Agency Commission further requested that a restaurant management consulting firm be retained by the Agency to review the P&L statements submitted by the restaurants; and to review the changes that they had made to ensure that all cost saving efforts are being undertaken to maximize operational efficiencies.

 

5.                  On February 4, 2009, the Agency entered into a sole source personal services contract (the “Contract”) for $25,000 with the Puccini Group (the “Contractor”) to evaluate the Fillmore Restaurants’ operational performance and efficiencies.  The Contractor has subsequently provided Agency staff and the Fillmore Restaurants with a market and strategic report.

 

6.                  As a condition of making these significant loans, the Agency Commission required that the Fillmore Restaurants provide monthly financial statements to the Agency for its review for one year; as well as provide consulting services assistance and recommendations to aid the Fillmore Restaurants in achieving their financial goals.

 

7.                  The First Amendment to the Contract (the “First Amendment”) will include strategic plans and monthly assessments and management of the Fillmore Restaurants’ operational progress to May 30, 2010.

 

8.                  Both the original Contract and the First Amendment are exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15061(b)(3).

 

 

RESOLUTION

 

ACCORDINGLY, IT IS RESOLVED by the Redevelopment Agency of the City and County of San Francisco that the Executive Director is authorized to enter into a First Amendment to the personal services contract with the Puccini Group, a California corporation, to extend the Contract term for 12 months from May 5, 2009 to May 30, 2010; to amend the Scope of Services to provide strategic plans for four restaurants participating in the Agency’s Amended Revolving Loan Program; and to increase the Contract amount by $210,000 for a total aggregate amount not to exceed $235,000.

 

 

APPROVED AS TO FORM:

 

 

 

_________________________

James B. Morales

Agency General Counsel

 

 

 

118-50909-002                                                                                   Agenda Item No. 4 ( c )

                                                                                                                                Meeting of May 5, 2009

 

 

MEMORANDUM

 

 

TO:                         Agency Commissioners

 

FROM:          Fred Blackwell, Executive Director

 

SUBJECT:             Authorizing an Exclusive Negotiations Agreement and a Predevelopment Loan Agreement, in an amount not to exceed $203,880 with Chinatown Community Development Center, a California nonprofit public benefit corporation, and Em Johnson Interest, Inc., a California Corporation, for development of 100 affordable senior rental housing units on Central Freeway Parcel C, southwest corner of Golden Gate Avenue and Franklin Street, in the former Western Addition A-2 Redevelopment Project Area; Citywide Housing Tax Increment Program

EXECUTIVE SUMMARY

Central Freeway Parcel C was previously under exclusive negotiations with a development team.  Due to concerns about financial feasibility, the development team had altered their original plan for the service program and the ground floor which included a café.  The proposed alternative plan was not supported by the Western Addition Community Advisory Committee (“WA CAC”).  Staff, working in consultation with the WA CAC, determined the previous development effort produced complete construction drawings and the preferred course of action would be to issue another Request for Proposal (“RFP”) to select a new development team to implement the existing plans as well as propose a new ground floor concept and service program.  On July 21, 2008, the Agency issued this second Central Freeway Parcel C RFP.  On September 19, 2008, the Agency received four submittals and all submittals met the minimum threshold requirements defined in the RFP. 

 

At the November 13, 2008 meeting of the WA CAC, the four teams presented their financing, ground floor, service delivery, and property management concepts.   At the conclusion of the presentations, the WA CAC asked the teams to return to a subsequent meeting to present solely on the ground floor concepts.  On December 11, 2008, the teams presented their respective ground floor concepts at the WA CAC meeting.  On December 15, 2008, after interviewing the four teams, an interdisciplinary evaluation panel chose to recommend the Chinatown Community Development Center and Em Johnson Interest (“CCDC/EJI”) team. 

 

In May 2004, the Commission adopted a Mitigated Negative Declaration, pursuant to the California Environmental Quality Act (“CEQA”), for the April 2005 amendment of the Western Addition A-2 Redevelopment Plan.  The Redevelopment Plan amendment contemplated development of a number of sites including Central Freeway Parcel C.  In June 2006, the Commission adopted CEQA findings in approving the Schematic Design for the 100-unit affordable housing project on Central Freeway Parcel C, finding the Schematic Design to be within the scope of the Project analyzed in the Mitigated Negative Declaration and that no additional environmental review was required.  Agency staff has determined that the Mitigated Negative Declaration and the June 2006 CEQA findings were and remain adequate, accurate and objective for the current proposed actions and these actions would not have a significant effect on the environment.

 

Staff recommends that the Commission authorize the Executive Director enter into an Exclusive Negotiations Agreement and a $203,880 Predevelopment Loan Agreement with the development team of Chinatown Community Development Center and Em Johnson Interest, Inc., for the development of 100 affordable senior rental housing units at Central Freeway Parcel C.

 

 

DISCUSSION

 

Background: The Request for Proposals

 

On March 19, 2002, the Agency and City executed a Transfer of Real Estate Agreement, enabling the Agency to purchase Central Freeway Parcels A and C from the City for the purpose of developing affordable senior housing.  The Agency first issued a Request for Proposals (“RFP”) for the construction, ownership, and operation of affordable senior housing on both Parcels A and C in April 2003.  Chinatown Community Development Center and the AF Evans Company were selected to develop Parcel A, which has been completed and is now known as Parkview Terrace.  A development team which included Mission Housing Development Corporation as the lead was selected to design, construct, and operate the building at Parcel C (the “Project”), and included plans for a ground floor café that was to provide services to both residents and the larger senior community.  The Parcel C development effort was not able to be completed, due in large part to the fact that the team was not able to demonstrate that their café model was financially feasible and the fact that the community did not find their proposed alternate ground floor program acceptable.  Ultimately, all agreements between the Agency and the previous Developer were terminated and the Agency retained ownership of the architectural drawings that had been completed to date.  The Commission conditionally approved the schematic drawings at its June 20, 2006 meeting.

 

On July 21, 2008, the Agency issued an RFP requesting proposals from qualified teams to construct, own, operate, and provide related supportive services for 100 units of  affordable rental housing for low-, very-low income, and formerly chronically homeless seniors at Central Freeway Parcel C (in the former Western Addition A-2 Project Area).

 

The development program as described in the RFP for the Site was as follows:

  • Implement 100% complete construction drawings (which the Agency retains) for 100 units of rental housing affordable to very low- and low-income senior households, including formerly homeless seniors;

·         Work with architectural team of Hardison Komatsu Ivelich & Tucker (“HKIT”), which was selected as part of the development team under the previous RFP process, and is the architect of record for the Site.  The architectural plans were prepared, per the Western Addition Redevelopment Project Area A-2 Plan Amendment, which was adopted on April 19, 2005;

·         Work with the Cahill Contractors which was selected through a competitive process by the prior development team to implement the construction drawings;

  • All of the units will be affordable to households earning up to 50% of area median income (“AMI”);
  • Twenty percent of the units will be set aside for formerly homeless households and these households will pay 50% of their income for rent. The City and County of San Francisco’s Department of Public Health (“DPH”) Local Operating Subsidy Program will provide necessary operating subsidies to assist in covering the costs in serving these formerly homeless seniors;
  • Provide a supportive services plan to serve the needs of the formerly homeless seniors as well as support the service needs of the other residents;
  • Provide a ground floor plan for approximately 7,700 square feet;  and,
  • Incorporate “green” and sustainable building strategies as practically feasible.   

 

As required by the RFP, the submittals included qualified teams comprised of a non-profit (or for-profit) housing development corporation, a property manager, and a supportive services provider (together, the “Applicant”). 

 

Developer Responses

 

The following development teams responded and met the threshold qualifications for Parcel C:

 

Developer:  Chinatown Community Development Center and Em Johnson Interest

Service Provider:  Northern California Presbyterian Homes and Services, the Shih Yu-Lang Central YMCA, and City College of San Francisco

Property Manager:  Chinatown Community Development Center

 

Developer:  Christian Church Homes of Northern California, Local Alliance for Neighborhood Development & Integrated Services, and Tabernacle Community Development Corporation

Service Provider:  Northern California Presbyterian Homes and Services

Property Manager:  Christian Church Homes of Northern California

 

Developer:  Citizens Housing Corporation and Tenderloin Neighborhood Development Corporation

Service Provider:  Tenderloin Neighborhood Development Corporation

Property Manager:  Tenderloin Neighborhood Development Corporation

 

Developer: Domus Development

Service Provider: Self-Help for the Elderly

Property Manager:  Domus Management Company

 

 

Applicant Presentations to the WA CAC

The four teams presented their financing, ground floor, service delivery and property management concepts to the WA CAC, at its November 13, 2008 meeting.  At the conclusion of the presentations, the WA CAC asked the teams to return to a subsequent meeting to present solely on the ground floor concepts.  The teams returned to present their respective ground floor concepts at the December 11, 2008 WA CAC meeting.  Agency staff asked the applicants to respond to four specific questions:

 

1)  Current Ground Floor/Services Program Proposal:  Briefly describe ground floor/services programming concept, including the number and type of staffing, as is currently presented in the proposal.

 

2) Ground Floor Tenant Improvement Sources & Uses:  Provide the cost to build out the ground floor space and identify the specific sources that will be used for the build out.

 

3) Financial Feasibility/Sustainability of Ground Floor Program:  Describe what funding sources will be used for operating the ground floor space and how the concept is both financially feasible and, more importantly, sustainable on an ongoing basis.

 

4) Community Outreach:  If selected as the development team for this site, how would your team address community concerns regarding outreach to other seniors in the community?  Provide specific examples of how the services program that was submitted as part of your proposal addresses these outreach concerns, or if necessary, how would you modify your current plan?  (Note - this is not an opportunity to propose entirely new concepts that are not included in your current proposal, instead you may discuss how you can expand or redirect your existing plan, if necessary.)

 

Several WA CAC members vocally supported the CCDC/EJI applicant team because its ground floor concept includes a café concept, while other members of the WA CAC chose not to support a particular team.

 

Proposal Presentations to Interdisciplinary Panel

Subsequent to the WA CAC presentations, an evaluation panel (the “Panel”) interviewed the four teams on December 15, 2008.  The Panel consisted of five Agency staff, a representative of the City’s DPH, and two representatives from the WA CAC. After the interviews, the Panel scored each team on the selection criteria described in the RFP.  The CCDC/EJI proposal received the highest total score of the four applicant teams.

 

The CCDC/EJI submittal offered a ground floor concept which includes a café for seniors to gather.  While a café model was not required in the RFP, members of the community expressed that a café or similar concept would be of the most benefit to the senior population in the neighborhood.  Additionally, community members expressed that a café model embraces the legacy of Mary Helen Rogers. 

 

During the prior exclusive negotiations agreement, Agency staff requested a café feasibility analysis in November 2007, from the previous development team of Devine & Gong, The John Stewart Company, and Mission Housing Development Corporation.  The analysis was completed in December 2007, and it determined that the café would cost over $5,000,000 to build out and would require an on-going subsidy of approximately $100,000.  Because of the on-going costs associated with a café, this concept was dropped and an alternative services plan was presented to the community (by the previous development team) in September 2007.  Instead of accepting the alternative services plan, the WA CAC requested that the Agency staff proceed with another RFP process. 

 

 

The café proposed by CCDC/EJI is a modified version of the café that had previously been deemed infeasible.  The CCDC/EJI submittal proposes a café concessionaire, not a full service café.  Given the results of the previous development team’s feasibility study, staff is recommending that the Agency enter into an Exclusive Negotiations Agreement (“ENA”) with CCDC/EJI which includes, as the initial milestone, a feasibility study for the café-concessionaire concept.  Subsequent to the feasibility analysis establishing the sustainability of the café-concessionaire, the balance of the milestones can be addressed and completed.

 

Evaluation Results

The Evaluation Panel ranked each application/applicant team according to the RFP criteria.  All teams prepared thoughtful and competitive submissions.  Areas of consideration included:

 

1)         Proposed Development Concept:

·         Demonstrated ability to implement the HKIT architectural plans. 

·         Strength of service space concept and program.

·         Financial feasibility and level of Agency funding.

 

The CCDC/EJI team has experience working with both the architect (HKIT) and the general contractor (Cahill Contractors).  While the development team does not anticipate extensive revisions to the architectural plans, they do plan to complete an extensive initial drawing review and, as necessary, value engineering.  As part of the development team response, they noted the importance of providing services adjacent to the café space so the residents and/or customers can become acquainted and comfortable with the types of services that will be provided at the Site.

 

The anticipated level of permanent Agency financing is similar to other 9% tax credit funded developments.  A unique funding source that the development team brings to the project is a no cost NeighborWorks loan, which is available to CCDC because it is a member (in good standing) of the NeighborWorks multifamily initiative.  

 

2)         Developer Team Experience and Capacity:

·         Developer experience with government assisted affordable housing programs and financing sources and/or “green” housing. 

·         Developer workload capacity. 

·         Service provider experience in housing comparable to that proposed in the RFP.  Workload capacity. 

·         Property manager experience and capacity.

 

A stable, community-based, non-profit developer, CCDC has provided affordable housing development services to San Francisco for over 35 years.  It has built over 1800 units, including over 400 senior units in five developments, and it has utilized all forms of relevant affordable housing financing.  As a co-developer at Parkview Terraces, CCDC has the experience constructing a building of this size, as well as partnering with a highly qualified service provider for a 100 unit senior building.  EJI is a good complement for CCDC with its expertise in outreaching to the community and acting as a community liaison to help ensure that the specific needs of the Western Addition community are met.  

 

The development team has demonstrated commitment to affordable housing, local participation and innovative services programs, combined with its demonstrated expertise in affordable housing construction and financing, has distinguished it as a solid developer choice for Central Freeway Parcel C.

 

CCDC has a 15-year history of providing resident services to seniors and homeless adults, servicing 16 buildings (that it also manages), which includes five senior buildings with over 400 units of affordable housing, and will coordinate the supportive services for the Site.  The overarching service objectives for this Site will be housing retention, enabling residents to live independently for as long as possible, and empowering residents to actively shape policies in the community.  In addition to CCDC, a group of additional providers will augment service provision.  The group of providers includes:  Northern California Presbyterian Homes and Services (“NCPHS”); Department of Public Health (“DPH”); the Shih Yu-Lang Central YMCA (“SYLC-YMCA”); and San Francisco City College (“SFCC”). 

 

CCDC, who has managed senior housing since 1982, and homeless units since 1991, will be performing the property management function.  In the 16 buildings CCDC property manages all are affordable and require special lease-up and regulatory oversight that accompanies low-income housing financing sources.  Also CCDC has established a priority in all its buildings of working closely with service providers to assure the residents’ needs are being considered and addressed, so they remain securely housed. 

3)         Community Outreach (Proposed Plan & Prior Experience):

During its Evaluation Panel interview and at the two Western Addition Community Advisory Committee (“WA CAC”) meetings, the CCDC/EJI team described a community outreach plan that includes re-introducing the development to the community.  Early outreach will include presentations to local senior serving organizations, social service agencies and houses of worship.  As part of the community process, the development team has included a café as a community gathering place.  The café will not only provide inexpensive meals to the residents and surrounding community but also be a draw for the supportive services programs, and used as a mean to check in on residents.    

In its overall ranking, the Evaluation Panel determined that this proposal offered the best program for the Site, and recommends that the Commission enters into exclusive negotiations with the CCDC/EJI development team. 

Exclusive Negotiations

Agency staff is working with the development team to analyze the feasibility of the café-concessionaire.  The initial ENA milestones will require final café concept submission; letters of intent from potential concessionaires; a scope of work and budget for the feasibility analysis; and, submission of firms being considered to complete the feasibility analysis. Subsequent to the completion and analysis of the feasibility analysis, the balance of the ENA work will be completed.  If the café-concessionaire is determined to be infeasible then it is recommended that the Applicant with the second highest number of total points will be selected to develop the Project.

 

Staff recommends that the Commission authorize exclusive negotiations with CCDC/EJI for an initial period of up to fifteen (15) months (Exclusive Negotiations Period), with two possible six-month extensions.  Failure to achieve the ENA milestones would result in termination of the ENA unless extended or modified by the Executive Director.  The Resolution will call for execution of the ENA within one month of the Commission’s approval of exclusive negotiations.

California Environmental Quality Act

In compliance with CEQA and the State CEQA Guidelines, the Agency and Planning Department, acting as co-Lead Agencies, completed a Mitigated Negative Declaration for development of a number of sites in the former Western Addition Redevelopment Project Area A-2, including Central Freeway Parcel C.  On May 18, 2004, the Agency Commission adopted Resolution No. 55-2004, finding that the Mitigated Negative Declaration reflected the independent judgment and analysis of the Agency, was adequate and had been prepared in accordance with CEQA.  Subsequently, on June 20, 2006, the Commission adopted Resolution No. 87-2006, conditionally approving the Schematic Design for the 100 unit affordable housing project on Central Freeway Parcel C and adopting CEQA findings that the Schematic Design was an Implementing Action within the scope of the Project analyzed in the Mitigated Negative Declaration and that no additional environmental review was required pursuant to State CEQA Guidelines Sections 15162 and 15164.  In reviewing the proposed Exclusive Negotiations Agreement and a Predevelopment Loan Agreement, Agency staff has determined that the Mitigated Negative Declaration and Resolution No. 87-2006 were and remain adequate, accurate and objective and are applicable to the current proposed actions.

 

Staff recommends that the Commission authorize the Executive Director enter into an Exclusive Negotiations Agreement and a $203,880 Predevelopment Loan Agreement with the development team of Chinatown Community Development Center and Em Johnson Interest, Inc., for the development of 100 affordable senior rental housing units at Central Freeway Parcel C

 

 

(Originated by Pamela Sims, Development Specialist)

 

 

 

 

Fred Blackwell

Executive Director

 

 

 

 

 

 

Attachment:  Citywide Affordable Housing Loan Committee Loan Evaluation

RESOLUTION NO. 43-2009

 

 

 

Authorizing an Exclusive Negotiations Agreement and a Predevelopment Loan Agreement, in an amount not to exceed $203,880 with Chinatown Community Development Center, a California nonprofit public benefit corporation, and Em Johnson Interest, Inc., a California Corporation, for development of 100 affordable senior rental housing units on Central Freeway Parcel C, southwest corner of Golden Gate Avenue and Franklin Street, in the former Western Addition Redevelopment Project Area A-2; Citywide Housing Tax Increment Program

 

 

BASIS FOR RESOLUTION

 

1.                  In November 1999, the voters of San Francisco approved Proposition I, which encouraged development of housing, particularly affordable housing, on the former Central Freeway Parcels transferred by the State of California Department of Transportation to the City of San Francisco (the “City”) that were not necessary for the rebuilding of the City’s transportation infrastructure, including the property at the southwest corner of Golden Gate Avenue and Franklin Street known as Parcel C. 

 

2.                  On October 22, 2001, by Resolution No. 824-01, the City Board of Supervisors (“Board of Supervisors”) approved the sale of Parcel C to the Redevelopment Agency of the City and County of San Francisco (the “Agency”) for the express purpose of building affordable senior housing.  The Agency and City executed a Transfer of Real Estate Agreement on March 19, 2002, which implemented the Board of Supervisors resolution. 

 

3.                  On May 18, 2004, the Commission adopted a Mitigated Negative Declaration prepared jointly with the Planning Department of the City and County of San Francisco for potential development of a number of sites in the former Western Addition Redevelopment Project Area A-2, including Parcel C.  In adopting the Mitigated Negative Declaration, the Commission found the Negative Declaration reflected the independent judgment and analysis of the Agency, was adequate, and had been prepared in accordance with and in compliance with the California Environmental Quality Act (“CEQA”) and the State CEQA Guidelines.

 

4.                  On February 7, 2006, the Commission authorized the Agency Executive Director to execute an Exclusive Negotiations Agreement (the “ENA”) with a development team to develop, own, and manage Parcel C (the “Development Team”). 

 

5.                  On June 20, 2006, the Commission conditionally approved a Schematic Design for the proposed 100-unit senior affordable rental housing project on Parcel C (the “Project”) and adopted CEQA findings that the Schematic Design was an Implementing Action within the scope of the Project analyzed in the Mitigated Negative Declaration and that no additional environmental review was required pursuant to State CEQA Guidelines Sections 15162 and 15164.

 

6.                  On February 7, 2007, the ENA expired because the Development Team could not achieve the supportive services related milestones.

 

7.                  On July 21, 2008, the Agency released a Request for Proposals for development teams to own, operate, and provide related supportive services for the Project. 

 

8.                  On September 29, 2008, a total of four development teams submitted proposals, and all applications were considered qualified.  The four teams presented to the Western Addition Citizens Advisory Committee on November 13, 2008 and December 11, 2008.

 

9.                  On December 15, 2008, after all the development teams were interviewed by an interdisciplinary evaluation panel (the “Panel”), the Developer was selected based on its submitted proposal and the Panel recommended that the Agency enter into an ENA with the development team of Chinatown Community Development Center and Em Johnson Interest, Inc. (the “Developer”).

 

10.              The ENA defines a series of milestones during the exclusive negotiations period which will result in the execution of a ground lease agreement for consideration by the Commission. 

 

11.              The new ENA with the Developer includes all applicable Agency policies and requirements. 

 

12.              The Mitigated Negative Declaration and Resolution No. 87-2006 were and remain adequate, accurate and objective and are incorporated herein by reference as applicable to the current proposed ENA and Predevelopment Loan Agreement.

 

 

RESOLUTION

 

ACCORDINGLY, IT IS RESOLVED by the Redevelopment Agency of the City and County of San Francisco that (1) it has reviewed and considered the Mitigated Negative Declaration and hereby adopts the CEQA findings set forth in Resolution No. 87-2006 incorporated herein, and (2) it authorizes the Executive Director to execute an Exclusive Negotiations Agreement with Chinatown Community Development Center, a California nonprofit public benefit corporation, and Em Johnson Interest, Inc., a California corporation, and to execute a Predevelopment Loan Agreement in an amount not to exceed $203,880, for the development of 100 units of very low-income senior housing on Central Freeway Parcel C, southwest corner of Golden Gate Avenue and Franklin Street, Lot 13 in Assessor’s Block 768, substantially in the form lodged with the Agency General Counsel; Citywide Housing Tax Increment Program.

 

 

APPROVED AS TO FORM:

 

 

 

________________________

James B. Morales

Agency General Counsel

 

 

           

 

118-486-09-002                                                                                  Agenda Item No.  4 ( d )

April 22, 2009                                                                                     Meeting of May 5, 2009

 

MEMORANDUM

 

TO:                  Agency Commissioners

 

FROM: Fred Blackwell, Executive Director

 

SUBJECT:     Authorizing a First Amendment to the Tax Increment Regulatory And Grant Agreement for a current grant amount of $379,820, for an aggregate amount not to exceed $2,541,620, and an Amended and Restated Housing Opportunities for Persons With AIDS Capital Loan Agreement for a Current Loan Amount Of $94,955, for an aggregate amount not to exceed $694,955, with Community Treatment Awareness Services, Inc., a California nonprofit public benefit corporation, for the rehabilitation of a 54 bed shelter, A Woman’s Place, 1049 Howard Street; within the South of Market Redevelopment Project Area; Citywide Tax Increment Housing Program

 

EXECUTIVE SUMMARY

On June 28, 1994, the San Francisco Redevelopment Commission authorized a Tax Increment Regulatory and Grant Agreement (“Grant Agreement”) with Chemical Awareness Treatment Services, Inc. (now Community Awareness Treatment Services, Inc.) (“CATS”), for the acquisition and rehabilitation of a building located at 1049 Howard Street (the “Site”) to create a 54 bed safe haven for homeless women with multiple diagnoses.  In July 1995, the Commission authorized a Housing Opportunities for Persons with AIDS (“HOPWA”) capital loan agreement for additional funds related to additional rehabilitation needs at the Site.  Of the 54 beds, a total of 11 transitional beds are designated for women living with disabling HIV/AIDS. The CATS’ program, A Woman’s Place (“AWP”), became operational at the Site in 1996 and has operated continually and effectively.

 

During a HOPWA program monitoring visit, staff noted several maintenance issues at the Site caused by the omission of roof flashing in the original rehabilitation work including the lack of shower facilities for the women.  Since that visit, Agency staff has worked with CATS staff to develop and to finalize the scope of work.  CATS is requesting tax increment and HOPWA funds to correct maintenance issues at the Site. 

 

Staff recommends authorizations of the First Amendment to the Regulatory and Grant Agreement for an additional $379,820, in tax increment funds and the Amended and Restated HOPWA Capital Loan Agreement for an additional $94,955 for the rehabilitation of A Woman’s Place, located at 1049 Howard Street.


 

DISCUSSION

A Woman’s Place (“AWP”) has been operational since 1992 as a safe haven for individual homeless women with multiple diagnoses of substance abuse, mental illness, and/or physical illnesses.  Prior to its current location, AWP was housed at various temporary locations throughout the City.  In 1994, AWP received initial tax increment funding (and HOPWA) from the Redevelopment Agency for the acquisition, predevelopment and rehabilitation of the Site.

 

This 24-hour drop-in center provides optional services, emergency shelter beds, transitional beds, and a primary substance use program. The program model combines housing with intensive psychological supportive services, case management, substance use counseling and education, medication monitoring, job training and placement.  The design of the AWP Program is specifically geared toward women with multiple diagnoses who are living on the street.

 

Redevelopment Agency staff completed a HOPWA monitoring visit of AWP and identified several rehabilitation needs.  At that time, staff noted several maintenance issues at the site which were primarily caused by the omission of roof flashing in the original rehabilitation work.  CATS used their reserve funds to repair the roof and flashing problems. CATS is now requesting Agency funding to repair the damage that was caused by the water intrusion and to make additional repairs and system upgrades that are necessary due to the building’s age and high usage.

 

Rehabilitation Scope of Work

The current rehabilitation project includes repairs and improvements to existing bathrooms (providing grab bars, shower and toilet modifications, partitions, surrounds, ventilation, counters, light fixtures, wall and ceiling repair and paint).  The shower room on the second floor will be replaced in its entirety.  The roof leak which caused the damage to the shower room has since been repaired.  Replacement of window glass proposed for the large corner room on the ground floor facing Howard Street is necessary due to window failure.  The new window glass will meet HUD requirements for noise attenuation.  System upgrades to the HVAC, security and fire alarm systems of the building are included.  Additional accommodations for the disabled include the repair of the wheelchair ramp, the installation of an automatic door opener, and the installation of accessible bathroom fixture controls.  Finally, permanently-fixed, reinforced lockers will be installed for all residents.  Further improvements include re-flooring of the kitchen, various roof deck and fence improvements, and repairs to the entry sidewalk and awning.  The complete scope of work should take no longer than six months to complete.

 

Funding

HOPWA Formula Funding is 20% (or $94,955) of the costs associated with this project, because (11 or) 20% of the beds are designated as HOPWA beds.  The balance, or 80%, of the rehabilitation work will be funded with tax increment funding which totals $379,820.

 

 

 

 

Community Support

The improvements proposed for 1049 Howard Street were presented to the Housing Subcommittee of the South of Market Project Area Committee (“SOMPAC”) at its March 2nd meeting.  The Housing Subcommittee unanimously agreed to support this request.  This request was presented to the full PAC at its annual meeting on Saturday, March 14th.  While the PAC voted to support this rehabilitation project, one PAC member voiced concerns regarding males loitering and littering the sidewalk on the Russ Street side of the property. 

 

AWP and Agency staff attended the April 20, 2009 full SOMPAC meeting to provide SOMPAC members with a plan to address concerns.  The plan includes: 24-hour desk coverage, security cameras, “no loitering” signs and CATS’ continued participation on neighborhood task force groups.  The plan was well received by the SOMPAC, who continued to support the rehabilitation work at the Site.

 

Next Steps

Subject to Commission authorization, the owner’s representative will obtain a building permit and work will then proceed.  The rehabilitation work should not take longer than six months to complete.  The women’s lives will be minimally disrupted because the work will be completed during the day when the majority of women are out of the building.

 

California Environmental Quality Act

The First Amendment to the Regulatory and Grant Agreement and the Amended and Restated HOPWA Capital Loan Agreement facilitate the completion of construction improvements to the A Woman’s Place, including rehabilitation and improvement of the existing building.  The construction activities are categorically exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Sections 15301(a) and 15301(d).  Completion of the repair project will alleviate blighting conditions at 1049 Howard Street and in the South of Market Redevelopment Project Area for the benefit of building residents and the general public. 

 

Staff recommends authorizations of the First Amendment to the Regulatory and Grant Agreement for an additional $379,820 in tax increment funding and the Amended and Restated HOPWA Capital Loan Agreement for an additional $94,955 for the rehabilitation of A Woman’s Place, located at 1049 Howard Street.

 

(Originated by Pamela Sims, Development Specialist)

 

 

 

Fred Blackwell

Executive Director

 

 

 

Attachment:  Citywide Affordable Housing Loan Committee Loan Evaluation

                    RESOLUTION NO. 44-2009

 

 

 

Authorizing a First Amendment to the Tax Increment Regulatory and Grant Agreement in an amount not to exceed $379,820, for a total aggregate amount not to exceed $2,541,620, AND AN Amended and Restated Housing Opportunities for Persons with AIDS Capital Loan Agreement in an amount not to exceed $94,955, for a total aggregate amount not to exceed $694,955, with Community Awareness Treatment Services, Inc., a California nonprofit public benefit corporation, for the rehabilitation of A Woman’s Place,

a 54-bed shelter, 1049 Howard Street; South of Market Redevelopment Project Area; Citywide Tax Increment Housing Program

 

 

BASIS FOR RESOLUTION

 

1.                   In furtherance of the objectives of the California Community Redevelopment Law (Health and Safety Code Section 33000 et seq.), the Redevelopment Agency of the City and County of San Francisco (the “Agency”) undertakes programs for the reconstruction and rehabilitation of slums and blighted areas in the City and County of San Francisco.

 

2.                   The Agency is authorized under a Housing Opportunities for Persons with AIDS ("HOPWA") Grant Agreement with the United States Department of Housing and Urban Development, executed pursuant to the AIDS Housing Opportunity Act (42 U.S.C. §§ 12901 to 12912), to provide qualifying sponsors with resources for meeting the housing needs of persons with Acquired Immune Deficiency Syndrome ("AIDS").

 

3.                   Community Awareness Treatment Services, Inc. (formerly known as Chemical Awareness Treatment Services, Inc.) (“CATS”) owns a fee interest in 1049 Howard Street (the “Site”), and provides a 54-bed supportive housing facility for multiple diagnosed women aged 18 and older, with special emphasis on women at serious risk.  Of the 54 beds, a total of 11 beds are designated for women living with disabling HIV/AIDS.

 

4.                   In June 1994, CATS received $2,161,800 in Citywide Tax Increment funding for the acquisition and rehabilitation of 1049 Howard Street, A Woman’s Place (“AWP”), to provide transitional housing for homeless women with multiple disabilities.

 

5.                   In July 1995, CATS received $600,000 in HOPWA funding for rehabilitation work needed at the Site.

 

6.                   In 1996, the building rehabilitation was completed and AWP became operational at 1049 Howard Street.

 

7.                   In 2005, Agency staff completed a monitoring visit of AWP.  At that time, staff noted several maintenance issues at the Site which was primarily caused by the omission of roof flashing in the original rehabilitation work.  The main issue and concern was the lack of shower facilities for the women. 

 

8.                   On April 17, 2009, the HOPWA and Citywide Affordable Housing Loan Committee approved a total of $94,955 in HOPWA funding and $379,820 in tax increment funding to rehabilitate, and perform tasks associated with the rehabilitation of the Site.  The scope of work focuses on repairs and improvements to existing bathrooms, repair of the shower areas, system upgrades to the HVAC, security and fire alarm systems, window replacement, ramp repairs, roof deck and fence improvements, the installation of an automatic door opener, and accessible bathroom fixture controls.

 

9.                   The First Amendment to the Regulatory and Grant Agreement and the Amended and Restated HOPWA Capital Loan Agreement will facilitate the completion of construction improvements to the Site, including rehabilitation and improvement of the existing building.  The construction activities are categorically exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Sections 15301(a) and 15301(d). 

 

RESOLUTION

 

ACCORDINGLY, IT IS RESOLVED by the Redevelopment Agency of the City and County of San Francisco that the Executive Director is authorized to enter into a First Amendment to the Regulatory and Grant Agreement, in an amount not to exceed $379,820, for a total aggregate amount not to exceed $2,541,620, and an Amended and Restated Housing Opportunities for Persons With AIDS Capital Loan Agreement in an amount not to exceed $94,955, for a total aggregate amount not to exceed $694,955, with Community Awareness Treatment Services, Inc., a California nonprofit public benefit corporation, for its facility at 1049 Howard Street, as part of the Citywide Tax Increment Housing Program, in the South of Market Redevelopment Project Area, substantially in the form lodged with the Agency General Counsel.

 

 

APPROVED AS TO FORM:

_________________________

James B. Morales

Agency General Counsel

 

 

110-010.09-002                                                                                               Agenda Item 4 ( e )

                                                                                                                      Meeting of May 5, 2009

MEMORANDUM

TO:                  Agency Commission

FROM:             Fred Blackwell

                        Executive Director

 

SUBJECT:      Approving a Memorandum of Understanding between the Redevelopment Agency of the City and County of San Francisco, the City and County of San Francisco, and the California Department of Parks and Recreation in an amount not to exceed $459,332 for the Candlestick Point State Recreation Area, including the preparation of a State General Plan; Hunters Point Shipyard and Bayview Hunters Point Redevelopment Project Areas

 

EXECUTIVE SUMMARY

 

The proposed Hunters Point Shipyard Phase 2 – Candlestick Point project (“Mixed Use Project“) includes, among other provisions, the development of up to 10,500 housing units and over 300 acres of new and restored open space and active recreation areas, which includes neighborhood parks within Candlestick Point and the Shipyard, new waterfront parks around the entire perimeter of the Shipyard connecting to the region’s bay trail, and a major renovation and reconfiguration of the Candlestick Point State Recreation Area (“CPSRA”) into a “Crissy Field” of the southeast with restored habitat areas and public access to the water. 

 

The California Department of Parks and Recreation’s (“State Parks”) regulations require the completion of a State Recreation Area General Plan to implement the proposed improvements to the CPSRA.  Agency and Mayor’s Office staff have been meeting with State Parks staff during the past few months, and are jointly proposing entering into a Memorandum of Understanding (“MOU”) to facilitate the completion of the State General Plan and to fund State Parks staff costs associated with the General Plan and the potential reconfiguration of the CPSRA.

 

The MOU would memorialize the commitment of the parties to cooperatively work together on a plan to restore and improve the CPSRA, as described in the State General Plan, the preparation of which would be funded by the Agency with funds from the Shipyard developer, pursuant to the Agency’s exclusive negotiations agreement with HPS Development Co., LP, a Delaware limited partnership, and CP Development Co., LP, a Delaware limited partnership, (“Shipyard Developer”), in an amount not to exceed $459,332.  The Shipyard Developer would provide such funds as part of its obligation to reimburse the City and the Agency for certain transaction costs associated with the Mixed Use Project.

 

Staff recommends that the Agency Commission approve the Memorandum of Understanding.

DISCUSSION

In the spring of 2007, the Mayor, the Board of Supervisors (the "Board"), the Agency Commission, the Hunters Point Shipyard Citizens Advisory Committee (“CAC”) and the Bayview Hunters Point Project Area Committee (“PAC”) all approved a Conceptual Framework for the Hunters Point Shipyard Phase 2 – Candlestick Point Mixed Use Project.  The Conceptual Framework contemplated a measure that would be submitted to the voters as part of the public review of the project.  This measure, Proposition G, was overwhelmingly approved by the City’s voters on June 3, 2008.  Proposition G established City policy to proceed with revitalizing Candlestick Point and the Hunters Point Shipyard through an integrated mixed-use development project, subject to public input and the environmental review process.

 

Proposition G called for the development to produce tangible community benefits for the Bayview Hunters Point community and the City by providing new affordable housing that is targeted to the lower income levels of the Bayview population, including new units that are suitable for families, seniors, and young adults, while also improving the CPSRA to enhance public access to the waterfront and enjoyment of the San Francisco Bay.

 

Accordingly, among the provisions of the proposed Mixed Use Project are the development of up to 10,500 housing units, more than 30% of which will be offered at below market rates, 2,500,000 sq. ft. of “green” office, research and development uses on the Shipyard oriented around a life science and technology campus, and over 300 acres of new and restored open space and active recreation areas, which includes neighborhood parks within Candlestick Point and the Shipyard, new waterfront parks around the entire perimeter of the Shipyard connecting to the region’s bay trail, and a major renovation of the Candlestick Point State Recreation Area into a “Crissy Field” of the southeast with restored habitat areas and public access to the water.

 

State Parks’ regulations require the completion of a State Recreation Area General Plan for the proposed improvements to the CPSRA.  Agency and Mayor’s Office staff have been meeting with State Parks staff during the past few months, and are jointly proposing entering into a Memorandum of Understanding to facilitate the completion of the State General Plan and to fund State Parks staff costs associated with the General Plan and the potential reconfiguration of the CPSRA.

 

Memorandum of Understanding

The MOU would memorialize the commitment of the parties to cooperatively work together on a plan to restore and improve the CPSRA, as described in a State General Plan for the CPSRA, the preparation of which would be funded by the Agency with funds from the Shipyard Developer in an amount not to exceed $459,332.  The Shipyard Developer would provide such funds as part of its obligation to reimburse the City and the Agency for certain transaction costs associated with the Mixed Use Project.

 

In entering into the MOU, all parties would acknowledge that the proposal to restore and improve CPSRA is an integral part of the Mixed Use Project and the Mixed Use Project, as proposed, relies in part on a reconfiguration of the CPSRA and an exchange of land with State Parks.  In order to develop the Mixed Use Project as currently proposed, the boundaries of CPSRA would need to be adjusted.  State Parks is agreeable to considering a potential reconfiguration and an exchange of land of CPSRA owned by State Parks with the City and/or the Agency. The MOU also reflects the parties’ commitment to cooperate and proceed with review and consideration of the proposed Mixed Use Project, as it relates to the CPSRA, as expeditiously as possible, and to maximize the potential public benefits that may accrue from the revitalization of the CPSRA. 

 

State Parks agrees to work as expeditiously as possible to begin the State General Plan process by contracting for the preparation of the State General Plan or providing the direction to a contractor hired by the City for the purpose of preparing the State General Plan.  The parties anticipate that the current environmental review process for the Mixed Use Project will include review of potential improvements to and operations of CPSRA and be coordinated with the State General Plan.  State Parks agrees to cooperate with the Agency and the City in this environmental review process.  State Parks also agrees to continue its study of the proposed reconfiguration and potential land transfers currently proposed by the City and the Agency.

 

In the MOU, the City and the Agency would agree to assist State Parks in the preparation of the State General Plan by providing background information and guidance to State Parks regarding the previous and current planning efforts affecting the project site, such as the redevelopment plans for the Bayview Hunters Point community, including land uses, transportation improvements, and other public works proposed for areas adjoining CPSRA.

Community Outreach

Agency and Mayor’s Office staff have discussed the potential future changes to the CPSRA and the need to work cooperatively with State Parks staff by entering into the proposed MOU at a number of Shipyard Citizens Advisory Committee (“CAC”) and Bayview Hunters Point Project Area Committee (“PAC”) meetings.  In October 2008, both the CAC and the PAC urged the Agency to work cooperatively with State Parks on the Mixed Use Project.

 

CaliforniaEnvironmental Quality Act

The MOU is statutorily exempt under CEQA because it is a feasibility and planning study, as defined in CEQA Guidelines Section 15262, and will not independently result in significant physical effects on the environment.  Subsequent actions of the Agency are required for the proposed development of the CPSRA to proceed.

 

 

Originated by Stanley Muraoka, Environmental Review Officer

 

 

 

Fred Blackwell

Executive Director

Attachment:  Memorandum of Understanding
Attachment to the Memorandum of Understanding


 

 

RESOLUTION NO. 45-2009

 

 

 

APPROVING A MEMORANDUM OF UNDERSTANDING BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY AND COUNTY OF SAN FRANCISCO, THE CITY AND COUNTY OF SAN FRANCISCO, AND THE CALIFORNIA DEPARTMENT OF PARKS AND RECREATION IN AN AMOUNT NOT TO EXCEED $459,332 FOR THE CANDLESTICK POINT STATE RECREATION AREA, INCLUDING THE PREPARATION OF A STATE GENERAL PLAN;

HUNTERS POINT SHIPYARD AND BAYVIEW HUNTERS POINT REDEVELOPMENT PROJECT AREAS

 

 

BASIS FOR RESOLUTION

 

1.                  In 1983, the City and County of San Francisco (the "City") conveyed land at Candlestick Point to the State of California to help form the Candlestick Point State Recreation Area (“CPSRA”).  The CPSRA is an important resource for both the region and the Bayview Hunters Point community. 

2.                  In 2007, the Redevelopment Agency of the City and County of San Francisco (the “Agency”) and the City undertook a new, integrated planning effort for the Hunters Point Shipyard and Candlestick Point, which resulted in the adoption of a Conceptual Framework for Development (the "Conceptual Framework").  The Conceptual Framework was endorsed by the Agency on May 1, 2007, and subsequently by the City's Board of Supervisors.  The Conceptual Framework called for a mixed use project on the two sites to provide, among other things, much needed parks and open space, new business and employment opportunities, new housing, including significant affordable housing, a site for a new 49ers sports stadium, and other economic and public benefits (the “Mixed Use Project”).

 

3.                  On May 1, 2007, the Agency Commission adopted Resolution No. 42-2007, authorizing the execution and delivery of that certain Second Amended and Restated Exclusive Negotiations and Planning Agreement, covering Phase 2 of the Hunters Point Shipyard and Candlestick Point, between the Agency, Lennar-BVHP, LLC, and Lennar Communities, Inc., dated as of May 1, 2007 (the “Phase 2 ENA”) consistent with the Conceptual Framework.  Lennar-BVHP’s interests under the Phase 2 ENA have been transferred to HPS Development Co., LP, a Delaware limited partnership, and Lennar Communities, Inc.’s interests under the ENA have been transferred to CP Development Co., LP, a Delaware limited partnership (together, the "Developer").

 

4.                  In June 2008, the voters of the City overwhelmingly approved Proposition G, the “Mixed Use Development Project for Candlestick Point and Hunters Point Shipyard.”  Proposition G made it City policy to proceed, subject to public input and the environmental review process, with revitalizing Candlestick Point and the Hunters Point Shipyard through an integrated mixed use development project that includes, among other things, over 300 acres of public park and open space, between 8,500 and 10,000 homes, and significant retail, industrial and green office, science and technology, research and development space.  Proposition G also made it City policy that the Mixed Use Project should include restoration and improvements to the CPSRA to enhance public access to the waterfront and enjoyment of the San Francisco Bay.  Accordingly, a major renovation of the CPSRA into a “Crissy Field” of the southeast with restored habitat areas and public access to the water is proposed as part of the Mixed Use Project.

 

5.                  The California Department of Parks and Recreation’s (“State Parks”) regulations require the completion of a State General Plan (the “State General Plan”) for proposed improvements to the CPSRA.  Agency and Mayor’s Office staff have been meeting with State Parks staff during the past few months to facilitate the completion of the State General Plan and to discuss the potential reconfiguration of the CPSRA.

 

6.                  The Phase 2 ENA requires the Developer, as part of its commitment to reimburse the City and the Agency for certain transaction costs associated with the Mixed Use Project, to fund the preparation of the State General Plan and associated State Parks’ staff costs pursuant to the Memorandum of Understanding (the “MOU”).  The MOU provides that State Parks will expeditiously pursue completion of the State General Plan and coordinate its efforts with the City and the Agency on the Mixed Use Project.

 

7.                  Agency approval of the MOU is statutorily exempt under the California Environmental Quality Act (“CEQA”) because it is a feasibility and planning study, as defined in CEQA Guidelines Section 15262, and will not independently result in significant physical effects on the environment.  Subsequent actions of the Agency are required for the proposed development of the CPSRA to proceed.

 

 

RESOLUTION

 

ACCORDINGLY, IT IS RESOLVED by the Redevelopment Agency of the City and County of San Francisco that the Executive Director is authorized to execute the Memorandum of Understanding between the Agency, the City and County of San Francisco, and the California Department of Parks and Recreation in an amount not to exceed $459,332 for the Candlestick Point State Recreation Area, substantially in the form lodged with the Agency General Counsel.

 

 

APPROVED AS TO FORM:

 

 

 

_________________________

James B. Morales

Agency General Counsel

122-0609-002                                                                                               Agenda Item No. 4 ( f )

                                                                                                                     Meeting of May 5, 2009

 

 

MEMORANDUM

 

TO:                 Agency Commissioners

 

FROM:           Fred Blackwell, Executive Director

 

SUBJECT:     Authorizing a Letter Agreement with the Planning Department of the City and County of San Francisco, in an amount not to exceed $154,220, for completion of environmental review of proposed Zone One streetscape changes as identified in the Transbay Streetscape and Open Space Plan; Transbay Redevelopment Project Area.

 

 

EXECUTIVE SUMMARY

 

On November 21, 2006, the Commission adopted the Transbay Streetscape and Open Space Plan (the “Plan”).  The Plan was developed by the Agency and the San Francisco Planning Department (the “Planning Department”) to guide public improvements in the Transbay Redevelopment Project Area (the “Project Area”), and thereby, facilitate implementation of the Transbay Redevelopment Plan.  The Plan contains a wide range of streetscape guidelines, such as the design of sidewalk paving, street trees, street lights, and public art.  Other guidelines call for possible streetscape changes that would change the width and direction of some streets within Zone One of the Project Area, which is under Agency jurisdiction.  The Plan also includes guidelines for similar streetscape changes in Zone Two of the Project Area, which is under the Planning Department’s jurisdiction.

 

Agency and Planning Department staff have been working to define the potential streetscape changes since adoption of the Plan.  The Planning Department has contracted with Environmental Science Associates (“ESA”) to complete an Environmental Impact Report (“EIR”) of the proposed Transit Center District Plan, including the Zone Two streetscape changes.  Agency staff has determined that the Agency can realize substantial time and cost savings by having ESA conduct analysis of the Zone One streetscape changes as part of the environmental review work on the Transit Center District Plan by entering into a Letter Agreement with the Planning Department. 

 

Staff recommends approval of the Letter Agreement with the Planning Department in an amount not to exceed $154,220 for completion of environmental review pursuant to the California Environmental Quality Act for proposed streetscape changes in Zone One of the Transbay Redevelopment Project Area.

 

 

 

DISCUSSION

 

The Streetscape and Open Space Plan for the Transbay Redevelopment Project Area was approved by the Commission on November 21, 2006, after a series of public workshops and endorsement of the Plan by the Transbay Citizens Advisory Committee.  The Plan includes guidelines for possible changes to streetscape elements, such as the width and direction of some of the streets in the Project Area, as well as recommendations for sidewalk paving, street trees, street lights, and public art.  One of the changes in the Plan is reconfiguration of the Folsom Street Off-Ramp.  This reconfiguration was approved by the California Department of Transportation in March 2009.

 

Other changes included in the Plan would enhance walkability in the Project Area by increasing sidewalk widths, reducing the width of streets with excess traffic capacity, and converting Folsom Street from one-way to two-way traffic.  These traffic enhancements are consistent with the other City initiatives promoting walking as a form of transportation as well as supporting the City’s traffic calming efforts.  Changing Folsom Street to two-way traffic would also implement the Agency’s goal of creating a neighborhood retail corridor within the Project Area.

 

Implementation of the Plan streetscape changes require completion of environmental review pursuant to the California Environmental Quality Act (“CEQA”).  Agency staff seeks to complete environmental review prior to project-specific approvals of specific development blocks and infrastructure projects.

 

ESA is currently under contract to the Planning Department to complete an EIR on the proposed Transit Center District Plan, which the Planning Department is developing with Agency staff participation.  The Transit Center District Plan includes Zone Two of the Project Area, which is under Planning Department jurisdiction, as well as surrounding areas in Downtown San Francisco.  Because Zone One of the Project Area adjoins Zone Two, the Agency’s potential streetscape changes can readily be incorporated into the Planning Department’s environmental analyses.

 

DMJM/AECOM, ESA’s traffic subconsultant, is analyzing current and future traffic conditions in and around the Transbay area.  Since there are overlapping traffic issues with the Transit Center District Plan and the Transbay Redevelopment Plan, Agency and Planning Department staff agree that including the proposed Zone One streetscape changes in the traffic analysis would facilitate comprehensive review of all approved, pending and proposed street network improvements in this part of the City.  Agency staff has determined that a coordinated traffic assessment would avoid duplicative work and would result in substantial time and cost savings for the Agency. 

 

Planning Department staff has proposed a Letter Agreement with the Agency.  Agency staff has discussed the proposed Agreement with the Transbay Citizens Advisory Committee.  The Letter Agreement includes the following tasks and budget for the portion of the DMJM traffic work that is attributable to the Agency’s Zone One streetscape changes:

 

 

 

DMJM TASK

DESCRIPTION

TOTAL COST

AGENCY SHARE

AGENCY COST

1

Project Area streetscape changes including street modifications, street capacities, passenger drop-offs, traffic hazards, loading, and pedestrian activity attributable to the Transbay Streetscape and Open Space Plan

 $ 102,440

100%

 $        102,440

2

Traffic analysis for weekday morning peak hour conditions

 $   67,220

50%

 $          33,610

3

Year 2030 baseline analyses related to the Transbay Streetscape and Open Space Plan

 $   72,680

25%

 $          18,170

           

Total Agency cost = $154,220

 

Agency staff has reviewed the proposed tasks and budget and finds them to be acceptable.  Funds are available in the current Agency budget for the Letter Agreement.

 

Staff has determined that the Agency can use the Transit Center District Plan Final EIR as a Responsible Agency under CEQA for future project-specific approvals in Zone One.  The Letter Agreement is statutorily exempt from CEQA pursuant to CEQA Guidelines Section 15262 as it funds planning and feasibility studies and would not independently create a significant effect on the environment.

 

 

(Originated by Kevin Masuda, Senior Civil Engineer)

 

 

 

 

                                                                        Fred Blackwell

                                                                        Executive Director


 

 

RESOLUTION NO. 46-2009



 

AUTHORIZING A LETTER AGREEMENT WITH THE PLANNING DEPARTMENT OF THE CITY AND COUNTY OF SAN FRANCISCO, IN AN AMOUNT NOT TO EXCEED $154,220, FOR COMPLETION OF ENVIRONMENTAL REVIEW OF PROPOSED ZONE ONE STREETSCAPE CHANGES AS IDENTIFIED IN THE

TRANSBAY STREETSCAPE AND OPEN SPACE PLAN;

TRANSBAY REDEVELOPMENT PROJECT AREA

 

 

BASIS FOR RESOLUTION

 

1.            On November 21, 2006, the Agency Commission adopted Resolution No. 153-2006 approving the Streetscape and Open Space Plan (“Streetscape and Open Space Plan”) for the Transbay Redevelopment Project Area (“Project Area”).  The purpose of the Streetscape and Open Space Plan is to guide future public improvements in the Project Area.

2.            Since adoption of the Streetscape and Open Space Plan, Agency staff has worked collaboratively with the Planning Department of the City and County of San Francisco (“Planning Department”) on the potential future public improvements, including the design of various streetscape changes in the Project Area, which is separated into Zone One, under the Redevelopment Agency of the City and County of San Francisco’s (“Agency”) jurisdiction, and Zone Two, under the Planning Department’s jurisdiction.

3.            The Planning Department has contracted with Environmental Science Associates (“ESA”) to complete an Environmental Impact Report (“EIR”) pursuant to the California Environmental Quality Act (“CEQA”) for the proposed Transit Center District Plan for Zone Two of the Project Area.  Agency and Planning Department staff agree that including the proposed Zone One streetscape changes in the traffic analysis that is being conducted for the EIR would facilitate comprehensive review of all approved, pending and proposed street network improvements in this part of the City.

4.            Agency staff has determined that a coordinated traffic assessment would avoid duplicative work and would result in substantial time and cost savings for the Agency.

5.             The Planning Department has submitted a proposed Letter Agreement (“Letter Agreement”) to have ESA complete environmental review of the Zone One streetscape changes for an amount not to exceed $154,220.  Agency staff has reviewed the proposed tasks and budget and finds them to be acceptable.  Funds are available in the current Agency budget for the Letter Agreement.

6.             Staff has determined that the Agency can use the Transit District Plan Final EIR as a Responsible Agency under CEQA for future project-specific approvals in Zone One. 

 

7.             The Letter Agreement is statutorily exempt from CEQA pursuant to CEQA Guidelines Section 15262 as it funds planning and feasibility studies and would not independently create a significant effect on the environment.

 

RESOLUTION

 

ACCORDINGLY, IT IS RESOLVED by the Redevelopment Agency of the City and County of San Francisco that the Executive Director is authorized to enter into a Letter Agreement with the Planning Department of the City and County of San Francisco, in an amount not to exceed $154,220, for completion of environmental review of proposed Zone One streetscape changes as identified in the Streetscape and Open Space Plan for the Transbay Redevelopment Project Area.

 

 

APPROVED AS TO FORM:

 

 

 

_________________________

James B. Morales

Agency General Counsel