San Francisco Redevelopment Agency


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130-1.09-002                                                                                             Agenda Item No. 4 ( b )

                                                                                                            Meeting of January 6, 2009

 

MEMORANDUM

 

TO:                 Agency Commissioners

 

FROM:           Fred Blackwell, Executive Director

 

SUBJECT:    Expiration and Transition of Bayview Hunters Point Project Area A and India Basin Industrial Park Project Area

 

Executive Summary

The primary purpose of this Memorandum is to provide the Commission with a summary of the transitional activities and continuing Agency responsibilities associated with the expiring Bayview Hunters Point Area A (originally “Hunters Point”) and India Basin Industrial Park (or “IBIP”) Redevelopment Project Areas.  Both the Hunters Point and India Basin Industrial Park Redevelopment Project Areas were adopted by the Board of Supervisors on January 20, 1969 based on extensive community participation and with much community support – led by the Agency’s then advisory body, the Bayview Hunters Point Joint Housing Committee. 

 

The respective Project Areas are directly adjacent to each other located in the northeastern portion of the Bayview Hunters Point community just south of the Port of San Francisco’s Islais Creek/Pier 90-94 Backlands industrial area and just east of Third Street, the neighborhood’s commercial core (see map, Attachment A).  They were developed simultaneously and meant to be complimentary.  The primary goal of the Hunters Point Redevelopment Plan was the creation and provision of low- to moderate-priced housing, with supporting community amenities including parks, schools and neighborhood shopping, “suitable to the needs of the existing residents”. The India Basin Industrial Park Redevelopment Plan was meant to “encourage the development of labor-intensive industries for the purpose of providing employment opportunities for residents of nearby residential districts”. 

 

Both Project Areas started with intensive removal of older dilapidated buildings and substantial investment in new infrastructure, including entirely new roads, parks and facilities.  Both Project Areas have been substantially built out since at least 2005 with the exception of specific individual sites, including Agency-owned parcel “EE-2” and parcel “AA-3” in Hunters Point and several privately-owned vacant commercial properties along Third Street within India Basin Industrial Park. As such, in recent years the Agency has primarily functioned in the Project Areas as the land use authority charged with reviewing proposed private projects or changes to existing development against the development standards of the respective Redevelopment Plans.  When the Redevelopment Plans expire in January of 2009, the Planning Department will reassume this function.  Planning staff has been coordinating with the Agency, the community and the Board of Supervisors to prepare for this shift, including an update of the underlying zoning controls in India Basin Industrial Park to preserve existing land uses and character.

 

On January 21, 2005, both Project Areas underwent SB2113 Plan Amendments which allow the Agency to continue to incur indebtedness exclusively for the purpose of building affordable housing until January 1, 2014 or until the Agency’s replacement housing obligation under SB2113 has been met.  Additionally, the Agency will continue to be responsible for those properties in Hunters Point with which there is an ownership responsibility involved including continued management and administration of the Agency’s affordable housing programs and portfolio, the development or disposition of Agency-owned land for affordable housing purposes and the continued maintenance of specific public open space parcels associated with residential properties.

 

Despite the closing out of these two older Project Areas, in a larger sense the Agency’s work in the overall revitalization of the Bayview Hunters Point neighborhood has just begun, through the continued implementation of the Hunters Point Shipyard Redevelopment Project Area and Bayview Hunters Point Redevelopment Project Area B.

 

DISCUSSION

Development of Hunters Point Project Area

The original 1969 Hunters Point Redevelopment Plan describes the Project Area as a residential area of temporary World War II housing units and an abandoned commercial center, characterized by dilapidated buildings, deteriorating streets and public utilities of inadequate construction. With a general absence of sidewalks, usable open recreation space and deficient public facilities, the conditions were deemed to constitute a substandard living environment that had a detrimental effect on the neighborhoods surrounding the Project Area.

 

The primary objectives of the Plan were to remove the structurally substandard buildings, provide land for needed public facilities including new streets, provide low-to moderate priced housing suitable to the needs of the existing residents, including community amenities such as parks, schools and neighborhood shopping.  Guided by a Master Plan designed by the architect Aaron G. Green, the Redevelopment Plan called for no less than 18 acres of land for park and recreation purposes and no less than 11 acres of land for school purposes.  The Redevelopment Plan utilized federal loans and grants distributed through the United States Department of Housing and Urban Development (“HUD”) to acquire, improve and dispose of land within the Project Area.  The HUD Loan and Grant Contract for Hunters Point was closed out in September of 1981 and two subsequent Plan Amendments transitioned the Project Area from Federal funding to the use of tax-increment financing.  In December of 1986 the Plan was amended to incorporate new State California Redevelopment Law (“CRL”) limitations regarding the allocation of tax increment, indebtedness and the commencement of eminent domain proceedings. The Plan was amended again in 1994 to incorporate new State law requirements on spending limits and to extend the life of the Plan to January 1, 2009.

 

Today, over 1,760 new units of housing have been constructed and 122 units of existing housing have been rehabilitated within the Hunters Point Project Area.  Over eighty percent (80%) of the new units, which are generally of medium density and family-sized, are affordable to low- and moderate-income households.  The following table provides a snapshot of the housing development constructed in the Project Area as described in the Agency’s 1999-2004 Hunters Point Project Area Implementation Plan.

 

Housing Development in the Hunters Point

Redevelopment Project Area

 

Housing Development

Total Units

Affordable Rental Housing

1,230

Affordable Ownership Housing

354

Market Rate Housing

269

 

1,853*

*Includes 163 units developed outside the Project Area at Morgan Heights and Mariner’s Village

 

Complimentary community improvements within the Hunters Point Project Area include major new roadways and their associated streetscape improvements, a number of neighborhood parks, community facilities and schools, including:

 

Neighborhood Parks

  • Hilltop Park - a 3.4 acre park in the center of the Project Area on Whitney Young Court
  • Adam Rogers Park - a 2.8 acre park near Oakdale and Ingalls
  • Youngblood-Coleman Playfield - a 6.7 acre recreation area at Galvez and Mendell Streets
  • Shoreview Park - a half acre neighborhood park adjacent to Shoreview Apartments

 

Community Facilities

  • A Neighborhood Facilities Grant provided funding for the Earl P. Mills Neighborhood Center and Whitney Young Child Development

 

Schools

  • Sojourner Truth Elementary School, 1 Cashmere Street
  • Martin Luther King Nursery School, 200 Cashmere Street
  • Captain William T. Shorey Nursery School, 1030 Oakdale Avenue
  • George Washington Carver Elementary School: a new school situated on 2.5 acres on Oakdale Avenue

 

Transfer of land Use Authority to the Planning Department

The land use regulations established by the Redevelopment Plan generally designate that the Project Area be developed as medium density residential development with portions reserved for open space.  When the Redevelopment Plan expires on January 1, 2009, the land use regulations of the Redevelopment Plan will no longer apply and the Planning Department will reassume its land use authority function.  The underlying zoning under the Planning Code to which the properties will revert is primarily zoned RH2 (Residential, House District, TwoFamily), while small areas along the perimeter of the Area are zoned both RH1 (Residential, House District, SingleFamily) and RM1 (Residential, Mixed District, Low Density) and has been deemed by the Planning Department to not need any changes.  Agency staff anticipates and will provide ongoing coordination and support to the Planning Department related to the interpretation of various Agency development and legal agreements.

 


Continuing Agency Responsibilities

In 2005, the Agency had substantially completed its redevelopment program for the Project Area and more significantly had essentially exhausted the tax increment available under the limitations required by the CRL.  Therefore in January of 2005 the Project Area underwent an SB2113 Plan Amendment which allows the Agency to continue to incur indebtedness exclusively for the purpose of building affordable housing until January 1, 2014 or until the Agency’s replacement housing obligation under SB2113 has been met.  The Agency may use the funds for low- and moderate-income housing activities as specified in the CRL or to meet, in whole or in part, the replacement housing provisions or the affordable housing production provisions.  These funds may be used inside the Project Area, or outside the Project Area, but only if findings of benefit to the Project Area are made as required by CRL.

 

The Agency will continue to enforce existing contracts and covenants, including nondiscrimination and non-segregation provisions, which shall continue in perpetuity.  Any declaration of restrictions formulated pursuant to the Redevelopment Plan may contain provisions for the extension of such declaration of restrictions for successive periods.  Additionally, the Agency will continue to be responsible for those properties in Hunters Point with which there is an ownership responsibility involved including continued management and administration of the Agency’s affordable housing programs and portfolio, the development and disposition of Agency-owned land for affordable housing purposes and the continued maintenance of specific public open space parcels associated with residential properties.  The Agency will be responsible for continuing to maintain, improve and transfer ownership of Shoreview Park and other small parcels of land (mini parks/remnant parcels).  It is the intention of Agency staff to bring forward a proposal in 2009 that addresses the improvement and transfer of Shoreview Park in particular.  This 1-acre park is located at 35 Lillian Court and is of primary benefit to and primarily surrounded by Shoreview Apartments, a low-income rental property owned and managed by the Apartment and Investment and Management Company, more commonly known as AIMCO.  It is in need of physical improvements, most notably the replacement of an older playground that is no longer considered to be safe and which is currently fenced off.

 

There are two vacant parcels that remain within the Project Area that are slated for future development under the Agency’s Affordable Housing Program - one at the southeast corner of Keith Street and Fairfax Avenue (Site AA-3) and the other at the west corner of Whitney Young Circle and Hudson Avenue (Site EE-2).  Site AA-3, directly adjacent to the Hunters View Hope SF Revitalization Project, is anticipated for future inclusion within the Hunters View Project as a mix of market-rate and affordable homeownership units.  At its November 18, 2008 meeting the Commission authorized a Disposition and Development Agreement with Habitat for Humanity for the development of seven four-bedroom affordable homeownership units.  Staff has had initial discussions with Habitat for Humanity related to their interest in developing the remaining portion of the site.  If an acceptable development approach is proposed by Habitat for Humanity, staff will return to the Commission to recommend negotiating an Exclusive Negotiations Agreement for the development of the remainder of the parcel.

 

While development of the original Hunters Point Project Area is nearly complete, the Hunters Point Plan was “amended and restated” in 2006 to extend the boundaries of the Project Area to include the Third Street commercial corridor, the majority of Bayview’s industrial areas and a limited amount of adjacent residential districts (“Bayview Hunters Point Project Area B”) in order to facilitate broader neighborhood revitalization.

 

DISCUSSION:

Development of India Basin Industrial Park Project Area

Prior to the start of redevelopment in 1969, the India Basin Industrial Park Redevelopment Project Area consisted of 25 acres of auto wrecking yards, 7 acres of vacant land, 35 acres of unimproved streets and obsolete meatpacking buildings that constituted the remnants of old “Butchertown.”  Unstable soil conditions, resulting from improper historical filling of the former marsh area, were a significant cause of blight and underdevelopment in much of the area.  As part of the redevelopment program, substantial amounts of fill were imported to consolidate the soil and improve its bearing strength.

 

Among the principal objectives of the Redevelopment Plan was the establishment of labor-intensive industries in the area in order to provide job opportunities for the residents of the Bayview Hunters Point community.  The Redevelopment Project Area is now a thriving industrial park consisting of a major distribution facility for the U.S. Postal Service, a number of light industrial, commercial service and multimedia businesses, and some retail businesses, located at Bayview Plaza at the southeast corner of Third Street and Evans Avenue.  Residential uses are not allowed within this industrial area.

 

Construction of the India Basin Industrial Park is nearly complete with 87.6 of the 91 buildable acres improved under the Redevelopment Plan.  Currently, the only undeveloped sites in the Redevelopment Project Area are the 0.3-acre site at 1375 Evans Avenue, the 1.2-acre site at 3433 Third Street, and the 1.9-acre site at the northwest corner of Evans Avenue and Jennings Street.

 

Transfer of land Use Authority to the Planning Department

The India Basin Industrial Park Redevelopment Plan currently regulates development within the Project Area with two geographic land use districts. “District 1” is generally intended for light industry such as manufacturing, processing, assembly, and packaging while “District 2” is generally intended for heavier industrial activities and a broader range of uses.  While the Redevelopment Plan prohibits residential uses altogether, limited office and retail uses are allowed throughout the Project Area so long as cumulative square footage of all such uses does not exceed 196,000 square feet.  When the Redevelopment Plan expires on January 1, 2009, the land use regulations of the Redevelopment Plan will no longer apply and the Planning Department will reassume its land use authority function.  The underlying zoning under the Planning Code to which the properties will revert is primarily M1 (Light Industry) and M2 (Heavy Industry) Districts and unlike the Redevelopment Plan, allow for unrestricted commercial and residential uses.

 

In order to address this contrast, Planning Department staff has been coordinating with Agency staff, the Bayview community and the Board of Supervisors to propose and enact modifications to the underlying zoning.  To this end, District 11 Supervisor Sophie Maxwell has introduced permanent zoning controls which are generally designed to utilize PDR (Production, Distribution, and Repair) Districts along with various overlay districts intended to provide the desired continuity in development controls and preserve existing development. Agency staff anticipates and will provide ongoing coordination and support to the Planning Department related to the interpretation of various Agency development and legal agreements.

Continuing Agency Responsibilities

Effective January 21, 2005, the India Basin Redevelopment Plan was amended pursuant to pursuant to SB 2113 of the CRL to extend the time limits for the Agency’s receipt of tax increment for the establishment of indebtedness and repayment of indebtedness for the exclusive purpose of financing the Agency’s citywide low-and-moderate income housing activities.   No portion of indebtedness entered into pursuant to SB 2113 can be used to fund non-housing activities.

 

Similar to the establishment of a homeowners association, there exists an India Basin Maintenance Association that is charged with the maintenance of specific limited landscaping elements, including the signature tall row of trees along the Third Street frontage of the Project Area.  All related fees and obligations associated the Maintenance Association are are independent of the Agency and the Redevelopment Plan and will continue into the future irrespective of the Project Area’s expiration.

 

The Agency and the Port of San Francisco initiated and completed the development of the Cargo Way Conceptual Streetscape Plan, an installation of a segment of the San Francisco Bay Trail with enhanced pedestrian and bike friendly improvements, including a bike lane along the southern portion of the roadway.  As the owner of Cargo Way, the Project will be implemented by the Port of San Francisco with Agency staff prepared to provide as needed support and coordination.

 

(Originated by Lisa Zayas-Chien, Project Manager)

 

 

 

Fred Blackwell

Executive Director

 

Attachments: 

  1. Bayview Hunters point Redevelopment Project Areas Map

 

BVHPProjectAreasJune2006

 

 

 

 

 

 

 

 

110-4808-002                                                                       Agenda Item No.  4 ( c, d, e, f, g, h, i )

                                                                                                            Meeting of January 6, 2009

 

MEMORANDUM

 

TO:                 Agency Commissioners

 

FROM:           Fred Blackwell, Executive Director

 

SUBJECT:    Adopting Environmental Findings and a Statement of Overriding Considerations pursuant to the California Environmental Quality Act for the Visitation Valley Redevelopment Program; Visitacion Valley Redevelopment Survey Area.  (Resolution No. 1-2009)

 

                        Approving the proposed Redevelopment Plan for the Visitacion Valley Redevelopment Project and making findings under the California Environmental Quality Act and pursuant to California Health and Safety Code Sections 33445 and 33679; recommending adoption of the proposed Redevelopment Plan by the Board of Supervisors; and submitting the Agency’s recommendation, including the proposed Redevelopment Plan, to the Board of Supervisors; Visitacion Valley Redevelopment Survey Area. 

(Resolution No. 2-2009)

 

Approving the Report on the Redevelopment Plan for the Visitacion Valley Redevelopment Project and authorizing transmittal of the Report on the Redevelopment Plan to the Board of Supervisors; Visitacion Valley Redevelopment Survey Area.  (Resolution No. 3-2009)

 

Approving the Visitacion Valley / Schlage Lock Design for Development; Visitacion Valley Redevelopment Survey Area.  (Resolution No. 4-2009)

 

Approving the Rules for Property Owner Participation, Relocation Plan and the Business Occupant Re-Entry Policy for the Visitacion Valley Redevelopment Project; Visitacion Valley Redevelopment Survey Area. 

(Resolution No. 5-2009)

                       

Authorizing the Executive Director to enter into a Cooperation and Delegation Agreement with the San Francisco Planning Department; Visitacion Valley Redevelopment Survey Area.  (Resolution No. 6-2009)

                       

                        Commending the Visitacion Valley Citizens Advisory Committee (“CAC”) and expressing the intention of the Agency to consult with the CAC on the Implementation of the Visitacion Valley Redevelopment Project; Visitacion Valley Redevelopment Survey Area. (Resolution No. 7-2009)

 

 

 

 

Executive Summary

 

The Agency and the San Francisco Planning Department (“Planning Department”) have been working on a collaborative community planning process to bring a revitalization program to the Visitacion Valley community.  This work has resulted in the Visitacion Redevelopment Plan (“Redevelopment Plan”), the Visitacion Valley / Schlage Lock Design for Development (“Design for Development”) and numerous supporting documents.  The Redevelopment Plan seeks to implement many of the policies of the Visitacion Valley Schlage Lock Strategic Concept Plan (“Strategic Concept Plan”) endorsed by the San Francisco Board of Supervisors ( the “Board”) on June 5, 2005.  The Redevelopment Plan will facilitate the redevelopment of the Schlage Lock industrial properties, assist with the incremental revitalization of the Leland Avenue and Bayshore Boulevard commercial corridors and provide neighborhood amenities and community benefits for the broader Visitacion Valley community.  The Visitacion Valley Plan initiates redevelopment activities focused on three key areas; affordable housing, economic development and community enhancements. This action culminates eight years of community planning processes for the Schlage Lock site and three and half years of focused redevelopment analysis since the formation of the Visitacion Valley Redevelopment Survey Area (“Survey Area”).  This process has been outlined in Commission informational workshops on January 16, 2007, October 21, 2007 and February 05, 2008. 

 

As required under the California Environmental Quality Act (“CEQA”), a Draft Environmental Impact Report (“DEIR”) analyzing the potential environmental impacts of the Redevelopment Plan and Design for Development, along with proposed revisions to the San Francisco General Plan and Planning Code, was published on June 04, 2008, and the Comments and Responses document (“C&R”) was published on November 18, 2008.  Together the DEIR and the C&R constitute the Final Environmental Impact Report (“FEIR”). At its meeting on December 16, 2008, the Agency Commission certified the FEIR.  On December 18, 2008 the Planning Commission certified the FEIR and also took a series of actions required by the California Community Redevelopment Law (“CRL”) before the Agency Commission could proceed with consideration of the proposed Redevelopment Plan, Design for Development, and various supporting documents.  The FEIR concludes that the redevelopment project could have potential significant and unavoidable impacts on historic resources, local and regional traffic conditions, transit operations, and regional air quality.  Accordingly, the Commission is being asked to determine that there are no feasible alternatives to reduce these impacts and to adopt a Statement of Overriding Consideration, which finds that the redevelopment project’s various benefits (i.e., economic, legal, social, etc. as described in the accompanying Commission Resolution) outweigh the unavoidable significant effects. 

 

The actions before the Commission are the approval and recommendation to the Board of Supervisors of the Redevelopment Plan, approval of the Design for Development, approval and transmittal of the Report to the Board, approval of CRL mandated documents regarding property owner participation, relocation, and business reentry, authorization to the Executive Director to enter into a cooperation and delegation agreement with the Planning Department, and adoption of required CEQA Findings.  The final item is a resolution commending the Visitacion Valley Citizens Advisory Committee (“CAC”) and expressing the intention of the Agency to consult with the CAC on the implementation of the Redevelopment Plan.

 

The CAC has discussed the Redevelopment Plan at its monthly meetings for the past year and a half and on October 14, 2008, unanimously endorsed the adoption of the proposed Redevelopment Plan.  Further, on November 18, 2008, the CAC unanimously endorsed the adoption of the Design for Development. 

 

Staff recommends adoption of environmental findings and a Statement of Overriding Considerations pursuant to the California Environmental Quality Act and approval of the Redevelopment Plan, the Design for Development, and related documents and resolutions for the Visitacion Valley Redevelopment Project.

 

 

BACKGROUND

The proposed Visitacion Valley Redevelopment Project Area (“Proposed Project Area” or “Project Area”) is a 46-acre area in the Visitacion Valley neighborhood in the southeastern corner of the City, comprising approximately 124 parcels (Visitacion Valley Proposed Project Area Map, Attachment 1).  The Visitacion Valley neighborhood is a predominantly low to medium density residential neighborhood made up of a range of single-family attached homes and multiple family developments, including the public housing community at Sunnydale.  The main neighborhood commercial corridor in Visitacion Valley is Leland Avenue which is composed of small scale commercial shops and mixed-use properties with housing units above retail.  Bayshore Boulevard is the main arterial roadway through the area carrying four to five traffic lanes and the T-Third Street Light Rail Line.  Bayshore is lined with a mixture of industrial uses, auto-oriented retail and services and a handful of mixed use developments.  The southern portion of Visitacion Valley contains large industrial parcels that straddle the county line.

The focal point of the Project Area is the vacant, former Schlage Lock manufacturing facility on Bayshore Boulevard and surrounding vacant properties. These properties, frequently referred to collectively as the “Schlage Lock Site,” consists of approximately 20 acres of industrially-zoned properties adjacent to two T-Third transit stations, and are designated as Zone 1 in the Proposed Redevelopment Plan.  The contaminated land has remained underutilized since the closure of the Schlage facility.  The Proposed Project Area also includes four blocks of Leland Avenue, and five and a half blocks of properties on the west side of Bayshore Boulevard which are designated by the Proposed Redevelopment Plan as Zone 2.  The Schlage Lock Site contains a number of parcels that until this year were under the ownership of two companies. Ingersoll Rand Corporation owned the former Schlage Lock Company property and buildings along Bayshore Boulevard.  Universal Paragon Corporation (“UPC”) owns the former rail yard properties along the eastern side of the Survey Area. Based on a settlement agreement described below, UPC now owns the former Schlage Lock facilities as well.

In 2002, in response to a proposal by Ingersoll Rand to build a Home Depot store on the Schlage Lock site, members of the Visitacion Valley community, with the Planning Department, developed the Strategic Concept Plan.  This plan calls for a mixed-use, transit-oriented development with residential and neighborhood-serving commercial uses, accompanied by open space and pedestrian-oriented street designs.  The plan also calls for the revitalization of Leland Avenue and the west side of Bayshore Boulevard, which have historically served as the neighborhood commercial streets for Visitacion Valley.  The Concept Plan served as the basis for the subsequent redevelopment planning and urban design efforts.

On June 7, 2005, the Board of Supervisors passed Resolutions Numbers 425–05 and 425-06 designating the Survey Area and endorsing the Strategic Concept Plan.  In creating the Survey Area, the Board directed the Agency to conduct initial studies to determine the appropriateness of adopting a redevelopment plan within Visitacion Valley. All of the properties in the Survey Area are included in the Project Area.

The soil and groundwater on the Schlage Lock Site and some of the surrounding land contain hazardous materials spilled into the soil and groundwater during the industrial operations of the site. The California Department of Toxic Substance Control (“DTSC”) issued a clean-up order against Ingersoll Rand Corporation, requiring the property owner to initiate a remediation plan.  In May of this year, Ingersoll Rand and UPC entered into settlement agreement under the oversight of DTSC to transfer ownership of the Schlage Lock site from Ingersoll Rand to UPC.  The settlement agreement includes a risk transfer agreement, a process for drafting a Remediation Action Plan, and a schedule for clean-up.   The settlement required the parties to dedicate sufficient funds for the demolition and remediation, and can move forward immediately.

 

COMMUNITY PLANNING PROCESS

 

Agency and the Planning Department staff have been working together with the community to complete the steps necessary to propose a redevelopment plan for the Survey Area and revised land use controls for the Schlage Lock Site.   Agency and Planning Department staff and consultant teams have prepared multiple plan documents and technical reports.

 

The CAC was appointed by the Mayor in 2006 and has been advising the Agency and the Planning Department on proposed redevelopment and land use policies.  Since July 11, 2006, the CAC has been meeting monthly to discuss redevelopment goals, site plans, urban design guidelines, remediation plans, affordable housing policies, economic development tools, open space needs, and sustainable development criteria.

 

The Planning Department and the Agency held a series of five public workshops over the past 2 and a half years to develop a framework plan for the Schlage Lock Site and discuss potential redevelopment programs to facilitate and complement the proposed land use changes envisioned for Zone 1.  The outcome of these workshops include the land use and design standards included in the Proposed Redevelopment Plan and the Design for Development, which are discussed in further detail below.

 

Agency staff has been engaged in extensive and continuous outreach and community dialogue about the Redevelopment Plan over the past 3 years.  Staff have held meetings with numerous community organizations including but not limited to the Visitacion Valley Planning Alliance, the Visitacion Valley Community Development Corporation, the Visitacion Valley Greenway Project, Visitacion Valley Business Opportunities and Outreach to Merchants (“VVBOOM”), and Asian Neighborhood Design.  Staff have attended and presented information on the Redevelopment Plan and the Design for Development at the annual Leland Avenue Street Fairs and multiple District 10 Town Hall meetings sponsored by Supervisor Sophie Maxwell. With the Planning Department, Agency staff have participated in planning and coordination meetings with neighboring jurisdictions including the City of Brisbane, Daly City, and San Mateo County, along with ongoing efforts with city departments including, the Public Utilities Commission, the Department of the Environment, San Francisco Municipal Transit Agency (“MTA”), and the Department of Public Works. 

 Agency staff has worked with the CAC to review multiple Redevelopment Plan drafts with community members. Each draft was circulated within the community at CAC meetings, at public workshops, and has been posted on the Agency’s website.  A draft redevelopment plan was distributed to the Agency Commission and the Planning Commission in January 2008.   Agency staff refined numerous elements of the redevelopment plan over the past year including the land use section, economic development programs, and affordable housing policies.  After many meetings, the CAC unanimously endorsed the Redevelopment Plan at their October 14, 2008 meeting, recommending its consideration to the Commission and the Board of Supervisors.

For the plan adoption hearing on January 06, 2009, the CRL, mandates notice to be sent to every property owner and occupant in the Proposed Project Area and an advertisement be placed in a local newspaper for 4 weeks.  The Agency has met this requirement for mailed noticing and has expanded the scope of the notice to all property with 300 feet of the Project Area, and placing advertisements in both the San Francisco Chronicle and the local Visitacion Valley Grapevine newspaper.  Additionally staff had notices distributed by hand to addresses outside these boundaries and have mailed postcard notice of the hearing to the entire 94134 zip code, which includes 12,000 addresses.

 

REDEVELOPMENT PROGRAM

The Redevelopment Plan will facilitate the redevelopment of the Schlage Lock site, assist with the incremental revitalization of the Leland Avenue and Bayshore Boulevard commercial corridors and provide neighborhood amenities and community benefits for the broader Visitacion Valley community.  The Schlage Lock site will be transformed into new mixed-use transit-oriented community of approximately 1,250 homes with new public streets, three new community parks, and a community center created at the original Schlage Lock office building.  The retail corridors along Leland Avenue will be strengthened through concerted economic development activities, and will be complemented by new neighborhood-serving retail development on the Schlage Lock site including a grocery store.  The entire Project Area will include the development of approximately 1,600 new housing units, of which at least 25% will be below market rate units, created through a combination of inclusionary units and stand-alone Agency assisted projects.  The Schlage Lock site project is being planned as a sustainable “green” development, with a LEED-ND rating from the U.S. Green Buildings Council.

 

 

 

COMMISSION ACTIONS

  • Redevelopment Plan

The Redevelopment Plan facilitates new construction and community revitalization activities with policies focused on three key areas; affordable housing, economic development and community enhancements (Attachment 2).  The Redevelopment Plan includes a set of redevelopment goals and objectives written by the CAC.  It establishes the land use and development parameters that are then further refined by the Design for Development.  The Redevelopment Plan also creates the structure for tax increment financing, outlines a framework for community revitalization programs and gives the Agency the authority to develop specific economic development and affordable housing programs. 

The Redevelopment Plan proposes two development districts with different entitlement procedures.  Zone 1 contains the former Schlage Lock Site and neighboring parcels, and is anticipated for significant redevelopment as originally proposed by the Concept Plan.  In Zone 1, the Proposed Redevelopment Plan and the Design for Development take precedence over the Planning Code, providing comprehensive regulations for site development.  The Redevelopment Plan permits multi-family residential development and limited commercial uses, primarily retail development, to be developed in Zone 1.  New construction in Zone 1 will be regulated through a Master Owner Participation Agreement (“Master OPA”) between the Redevelopment Agency and the property owner, Universal Paragon Corporation (“UPC”) and/or its successors. Community review of proposed development and schematic designs and consultation with the Planning Department will occur before any projects are forwarded to the Commission for approval. Zone 2 includes adjacent infill sites along Bayshore and Leland Avenues. Within Zone 2, development proposals will continue to be approved through the current Planning Commission framework.

The Redevelopment Plan includes a number of affordable housing policies that are similar to other recently adopted redevelopment plans. It requires that over the thirty (30) year life of the redevelopment plan, at least twenty five percent (25%) of all new housing units built in the Project Area be developed as below market units, affordable to moderate to very low income households.  These affordable units will be produced through a combination of inclusionary housing requirements and stand-alone Agency-sponsored housing projects.  To facilitate this requirement, the Redevelopment Plan further requires that all inclusionary units be built within the Project Area, and that any in lieu housing fees be used within the Project Area for affordable housing production.  Additionally, consistent with Agency practice and City policies, at least fifty percent (50%) of tax increment redevelopment program funds are to be dedicated to affordable housing programs.  The Redevelopment Plan modifies the affordability caps for below market rate units below those required by California Community Redevelopment Law (“CRL”), and the Redevelopment Plan provides occupancy preferences for certificate holders, rent burdened households, and occupants of federally subsidized housing.  The Redevelopment Plan states that the power of eminent domain will not be exercised on any properties that contain residential units, and may only be considered over property in Zone 1 of the Project Area, along with numerous other restrictions.

Agency staff has worked with staff of the Planning Department, the Office of Economic and Workforce Development, and community members to develop a scope of future programs to facilitate the economic revitalization of the Leland Avenue and Bayshore Boulevard commercial corridors.  Many revitalization efforts are underway and the goal of the redevelopment program is to enhance these efforts after plan adoption.  The Redevelopment Plan identifies these programs as part of the economic development program while also committing the Agency to develop and enforce contracting and work force programs as part of the redevelopment efforts.

The Redevelopment Plan also describes the community enhancements that would be facilitated by redevelopment efforts.  Public improvements in the form of new streets, infrastructure, open space, and a community center would be developed as part of the Schlage Lock Site development.  The Design for Development describes the location and conceptual designs of these facilities.  The Plan also states that enhancements to existing streets and intersections would be undertaken as part of the area revitalization.  CAC members have asked that community art programs be considered along side economic development activities as a means to build upon existing assets of the community, and this has been reflected in the Proposed Redevelopment Plan.  The Redevelopment Plan will also provide investments in transportation improvements in and around the Project Area.

The Redevelopment Plan authorizes the development of companion policy documents to provide further details regarding future development, such as affordable housing policies, local workforce programs open space and streetscape plans, a sustainability plan and an infrastructure plan.  These documents all reflect the outcome of the community planning processes and the recommendations of the CAC.

 

  • Design For Development

As described above, the Agency and Planning Department have conducted numerous community workshops to refine the Strategic Concept Plan into a Design for Development document (Attachment 3) that contains a specific site plan, development controls and design guidelines.  The Design for Development document contains two sections. Part 1 of the Design for Development outlines the vision and goals for the area developed during the community planning process, and provides the urban design framework that will guide the Schlage Lock site’s eventual redevelopment. Part 2 of the Design For Development contains specific development controls and design guidelines that will regulate specific development projects in the proposed Project Area.

 

The Design for Development achieves the following key community planning and urban design goals:

  • Urban Form: Create a fine-grained, walkable development with small block sizes to match the existing neighborhood and connections to the existing street grid.
  • Heights: Provide varied heights, including two 8-story buildings locations and lower scaled buildings designed to step with the topography of the site.
  • Building Design: Require well-articulated, varied architecture that incorporate creativity, varied rooflines and local character.  Use setbacks, stepbacks and special corner treatments to enhance the public realm.
  • Sustainable Development: Mandate “green” building features in all new vertical development, open space and street designs.
  • Public Realm: Design human-scaled roadways, blocks and buildings, pedestrian-oriented features such as wide sidewalks, active ground-floor uses and stoops. Develop high-quality, well-programmed parks and open space.

 

Through the Design for Development planning process, the Agency and the Planning Department have coordinated with the Department of the Environment to submit the Redevelopment Project as a pilot project for the new US Green Building Council, Neighborhood Design standard, titled Leadership in Energy and Environmental Design – Neighborhood Design (“LEED-ND”).  Based on the application to be submitted the Department of the Environment anticipates that Visitacion Valley project would be given a LEED-ND Gold certification.

The Planning Department and Agency published a Draft Design for Development in January of 2008, and presented the Urban Design framework to the Commission at its February 5, 20008 meeting.  Agency staff has held multiple meetings with the CAC and community members regarding the draft document.  Staff also collected specific feedback through a comments matrix that resulted in hundreds of comments from CAC members.  The Design for Development was edited to include comments received through comments on the Draft EIR.  The CAC approved the Design for Development at their meeting on November 13, 2008.  Planning staff developed a matrix of changes suggested by the CAC and Planning Commission to be incorporated in the final Design for Development (Attachment 4).

The Planning Department is also drafting specific zoning designations through a Special Use District (“SUD”) to implement the Design for Development and to synchronize the San Francisco Planning Code (“Planning Code”) with the allowed land uses under the Proposed Redevelopment Plan.  Both the Redevelopment Commission and the San Francisco Planning Commission are to adopt the Design for Development. The Planning Commission approved the Design for Development, incorporating the matrix of community revisions, and the related General Plan and Planning Code changes on December 18, 2008 (Motion No.17790-96).

 

  • Report to the Board

The Report to the Board (Attachment 5) is mandated by the CRL to provide documentation of the physical and economic conditions in the Proposed Project Area.  If conditions of both physical and economic blight are found through existing conditions analysis, redevelopment tools such as tax increment financing and land acquisition and assembly may be considered by the Agency as tools to alleviate the conditions of blight.  The Report to the Board discusses the blighting conditions in the Project Area, the elements of the proposed redevelopment program and evaluates how such programs may be financed, including detailed tax increment projections.

 

Staff presented the conclusions of the existing conditions analysis to the Commission at its meeting on September 18, 2007. These conclusions were circulated to the Commission and taxing entities within the Visitacion Valley Preliminary Report (“Preliminary Report”), published in January of 2008.  The Proposed Project Area must meet the heightened standards for physical and economic blight that the California Legislative adopted in 2006 (Senate Bill No.1206, codified at Health & Safety code §33031). In summary, the blight analysis conducted by Seifel has determined that both physical and economic conditions of blight are present. Seifel found that the Project Area contains two prevailing factors of physical blight: unsafe and unhealthy buildings and conditions substantially hindering viable use. The existing conditions analysis also found multiple conditions of economic blight in the Project Area including impaired property values because of hazardous waste, prevailing lease rates that are only 50 to 75 percent of those charged in other commercial leases in the city and a high crime rate.  The presence of hazardous material contamination related to the past industrial uses on the Schlage Lock Site creates both physical and economic conditions supporting blight findings within the Proposed Project Area.  The data included in the Preliminary Report were field checked by Seifel in October of this year.  These existing conditions conclusions are discussed in Chapters 4 and 5 of the Report to the Board.

 

Chapter 6 of the Report to the Board provides an overview of the redevelopment program proposed for Visitacion Valley, as described above, and discusses how the physical and economic conditions of blight are addressed by the redevelopment program.  Chapter 7 discusses the methods of financing the redevelopment program, and Chapter 8 analyzes its feasibility.  Seifel identifies tax increment as the primary funding source to implement the Redevelopment Plan.  The Report to the Board provides tax increment projections for the proposed redevelopment area based on projected growth in property taxes in the proposed project area assuming build-out of the mixed use residential development on the Schlage Lock Site and some infill development along Bayshore Boulevard and Leland Avenue.  It is projected that the Project Area would generate approximately $70 million in nominal dollars for redevelopment program funds.  The affordable housing production goals would be financed by the commitment of 50% percent of these funds, or $35 million, to housing programs.  The remaining $35 million would be available for economic development and community enhancement programs. These monies would be used by the Agency to leverage other funding sources to bolster these programs.  The Report to the Board discusses other financial sources potentially available for the redevelopment program. 

 

The Report to the Board includes a five-year “Implementation Plan” that details potential redevelopment programs, affordable housing proposals, and uses of tax increment.  The focus of the first five years of the redevelopment program will be to finalize the related plan documents, initiate affordable housing predevelopment efforts, and provide assistance to the revitalization of Leland Avenue.  The Implementation Plan was discussed with the CAC and community members as well as staff of the Office of Economic and Workforce Development.  Items of concern included the range of affordable housing to be provided by the project and the opportunities for tax increment to revitalize Leland Avenue.   The Implementation Plan was revised based on the feedback of community members and Agency Housing staff as the policies of the Proposed Redevelopment Plan were refined. 

 

The Report to the Board also contains a “Neighborhood Impact Report” that assesses any potential impacts of the redevelopment plan on transportation, community services, affordable housing and schools, and displacement. The conclusions of the Neighborhood Impact Report are based primarily on the DEIR along with additional information from the San Francisco Unified School District, City College of San Francisco Department of Public Health and the Proposed Redevelopment Plan and its companion documents including the CRL required Relocation Plan (Attachment 7).

The Report to the Board must be considered and approved by the Commission, together with the Proposed Redevelopment Plan, before introduction at the Board of Supervisors.  

 

  • Rules for Owner Participation

 

Consistent with the Redevelopment Plan, the Visitacion Valley Owner Participation Rules (“OP Rules,” Attachment 6) require as a condition to participation in redevelopment that each owner of property in Zone 1 enter into a binding Owner Participation Agreement (“OPA”) with the Agency by which the participant agrees to remediate, rehabilitate, develop, use and maintain the property in conformance with the Redevelopment Plan, the Planning Code and the Design for Development.   An OPA commits a property owner to the provision of various community benefits, including affordable housing, participation in economic development programs, provision of public infrastructure, parks and community facilities. 

Since most of the vacant industrial property in Zone 1 is currently under controlled by a single owner, the Agency anticipates entering into a Master OPA, which outlines the conditions for infrastructure and open space development, subdivision and transfer of development lots, and entitlements and procedures for vertical construction.  As described above, the provisions of the Master OPA shall be fully transferable to third parties.  OPAs shall be effective only after approval by the Agency Commission and execution by the Executive Director.

In Zone 2, the Agency contemplates that, in most cases, owners will develop their property in accordance with the Redevelopment Plan, the Planning Code of the City and County of San Francisco and the Design for Development and that OPAs may not be necessary for those properties.  Participation of an owner in redevelopment is voluntary. 

 

  • Relocation Plan and Business Re-entry Program

 

The Redevelopment Plan states that the Agency may acquire property in the Project Area for the purpose of facilitating redevelopment.  The property in Zone 1, the site of the most intensive planned redevelopment activities, is currently vacant.  The Zone 1 boundary was drawn specifically to exclude the existing businesses and residential properties on Bayshore Boulevard.  Although the Agency does not anticipate that redevelopment activity will result in any displacement of persons or businesses, the Agency is required by law to develop and adopt a relocation plan for all adopted redevelopment plans.  Pursuant to Section 33411 et seq. of the Community Redevelopment Law, the Agency Commission must adopt a relocation plan to govern the relocation of displaced persons in the Project Area.

The Visitacion Valley Relocation Plan mandates that in all instances where displacement of existing occupants may result from property acquisition by the Agency or as a result of Agency assisted redevelopment, the Agency will carry out or supervise relocation activities and the provision of relocation benefits in accordance with state law, or federal law where acquisition or redevelopment is financed with federal funds.  The Agency will also comply with the relocation and replacement housing requirements of the Community Redevelopment Law.

The Agency is also required to adopt a business occupant re-entry preference program.  The Visitacion Valley Business Occupant Re-entry Preference Program (Attachment 7) establishes the rules for business occupant re-entry pursuant to the Community Redevelopment Law of the State of California and the Visitacion Valley Redevelopment Plan, should a business be relocated due to the Agency’s activities.  The rules set forth procedures extending reasonable preference to persons who are engaged in business in the Project Area to reenter the redeveloped area if they otherwise meet the requirements prescribed by the Redevelopment Plan.

 

  • Cooperation and Delegation Agreement

The Visitacion Valley Cooperation and Delegation Agreement (“Cooperation Agreement”) describes the roles and responsibilities of the Agency and the Planning Department in implementing future development approvals in the Project Area (Attachment 8). The Agency expects to retain final approval authority over vertical design, infrastructure improvements and site permit review, after consulting with the Planning Department, in Zone 1 through the entitlement provisions of a Master OPA.  The Agency will delegate to the Planning Department, in consultation with Agency staff, approval authority of development in Zone 2.  Therefore the Planning Department would be responsible for reviewing projects, interpreting and enforcing the Planning Code, and implementing mitigation measures for development to be approved by the Planning Department under the authority delegated by the Agency in Zone 2.  The Agency would be responsible for all aspects of future development in Zone 1 including approving streetscape and open space plans, conducting vertical project design review, facilitation community design review, and implementing mitigation measures where the Agency retains final approval authority in Zone 1.  The Agency and the Department commit to assisting each other in implementing the Redevelopment Plan and its companion documents.  The full responsibilities for design review and mitigation measure implementation are dictated by the Cooperation Agreement.

 

CEQA REVIEW

Environmental Impact Report

In compliance with CEQA and its Guidelines, Agency and Planning Department staff completed an initial study of the proposed project and determined that it may have possible significant adverse environmental effects that must be evaluated by an EIR. The EIR includes analyses on aesthetics, air quality, cultural and historic resources, hydrology and water quality, hazards/hazardous materials, noise, land use, population and housing, public services and utilities, transportation and parking.  The DEIR that analyzed the potential environmental impacts of the Redevelopment Plan and Design for Development, along with proposed revisions to the San Francisco General Plan and Planning Code, was published on June 04, 2008.  The DEIR describes existing conditions and assesses the probable environmental effects of future growth on the Project Area.  The C &R was published on November 18, 2008.  The C&R includes responses to comments on environmental issues received at the public hearings and in writing during the public review period, and revisions to the text of the DEIR in response to comments received or based on additional information that became available during the public review period, and corrected errors in the DEIR.  Together the DEIR and C&R constitute the FEIR, which was certified first by the Commission, on December 16, 2008 (Resolution No.  157-2008), and then by the Planning Commission on December 18, 2008 (Motion No. 17789).  In certifying the FEIR, the Commission and Planning Commission found that the FEIR reflected the independent judgment and analysis of the Agency and Planning Commission, respectively, was adequate, accurate and objective, and that the FEIR was prepared pursuant to and fulfilled CEQA requirements..

 

CEQA Findings and Mitigation Monitoring and Reporting Program

If the Commission decides to approve the proposed Redevelopment Plan, Design for Development, and various supporting documents, it would have to adopt and approve environmental findings pursuant to CEQA and its Guidelines regarding the proposed redevelopment project, including rejection of project alternatives, adoption of the Statement of Overriding Considerations for the unavoidable cumulative significant impacts, and adoption of a Mitigation Monitoring and Reporting Program (“MMRP”). 

 

The FEIR considered six alternatives to the proposed redevelopment project:

  1. No Project Alternative – Expected Growth Without the Project
  2. Reduced Housing Development in Zone 1
  3. Stand Alone Grocery Store/Retail Along Bayshore Boulevard South of Visitacion Avenue
  4. Preservation and Reuse of All Schlage Lock Plant 1 Buildings; (5) No Rezoning on Bayshore Boulevard in Zone 2
  5. Planning Code Changes But No Redevelopment Plan.

 

As described in detail in Attachment 10, staff recommends that the Commission reject each of the six alternatives as infeasible due to economic, legal social, technological, and other considerations. 

 

The FEIR identified the following probable significant unavoidable project-specific and cumulative environmental effects.

  1. Project impacts on intersection operations;
  2. Project impacts on U.S. 101 freeway segment operations;
  3. Project queuing impacts at points of access to Redevelopment Zone 1 (Schlage Lock site);
  4. Year 2025 cumulative impacts on intersections;
  5. Year 2025 cumulative impacts on U.S. 101 freeway segment operations;
  6. Year 2025 cumulative impacts on intersection operations with planned regional roadway improvements;
  7. Year 2025 cumulative impacts on U.S. 101 freeway segment operations with planned regional roadway improvements;
  8. Project impacts on transit service;
  9. Long-term regional emissions impacts; and
  10. Destruction or degradation of potential historical resources.

 

Since the FEIR identified these significant and unavoidable impacts attributed to either the proposed redevelopment program or cumulative development in the project vicinity, staff further recommends that the Commission adopt the Statement of Overriding Considerations detailed in Attachment 10.  The Statement of Overriding Consideration finds that notwithstanding the significant effects described in the FEIR, the Commission finds that specific overriding economic, legal, social, and other considerations independently and collectively outweigh the identified significant effects on the environment and is an overriding consideration warranting approval of the redevelopment project. 

 

CEQA also requires agencies to adopt mitigation measures that would avoid or substantially lessen a project's identified significant impacts or potential significant impacts if such measures are feasible.  Thus, the environmental findings detailed in Attachment 10 discuss the mitigation measures set forth in the FEIR.  Staff recommends that the Commission adopt the MMRP contained in Attachment 11.  The MMRP includes each mitigation measure listed in the Final EIR that is required to reduce or avoid a significant adverse impact, specifies the agency responsible for implementation of each measure, and establishes monitoring actions and a monitoring schedule.  The MMRP will be implemented by the Agency and City agencies or departments, including, but not limited to, the Planning Department, the Department of Public Works ("DPW"), the Municipal Transportation Agency ("MTA"), the Department of Building Inspection ("DBI") and the Department of Public Health ("DPH"). Primary responsibility for implementation and monitoring of mitigation measures will be shared by the Agency and Planning Department, in accordance the Cooperation Agreement discussed above. 

 

 

NEXT STEPS

 

According to the CRL, before a redevelopment agency and legislative body can adopt a redevelopment plan, a series of technical and legal documents must be completed.  As discussed above, the Report on the Redevelopment Plan provides the Commission and the Board of Supervisors with all of the technical studies, supporting policy documents and plan documents supporting adoption of the Redevelopment Plan.  All those documents are discussed herein and attached for review.

All of the required actions by the Planning Commission for the adoption of the Redevelopment Plan were completed on December 18, 2008, including amendments to the General Plan and Planning Code,  the adoption of the Design for Development, a finding that the proposed Redevelopment Plan is consistent with the General Plan, and a recommendation to adopt the Redevelopment Plan. 

After initiating the public hearing on January 6, 2009, the Commission will continue the hearing on the Redevelopment Plan to a second scheduled and noticed public hearing on February 3, 2009.  At this second hearing the Commission may consider taking action on all the documents described in this document.  If the Commission approves the


 

Redevelopment Plan and the Report to the Board, staff will forward these documents to the Board.  Staff expects the Board will initiate its review of the Redevelopment Plan later in February or March of 2009. 

 

(Originated by Tom Evans, Lead Planner)

 

 

 

 

Fred Blackwell

Executive Director

 

 

 

Attachments: 

  1. Visitacion Valley Project Area Map 
  2. Visitacion Valley Redevelopment Plan 
  3. The Visitacion Valley/Schlage Lock Design for Development
  4. Matrix of Design for Development Revisions
  5. Visitacion Valley Report to the Board 
  6. Visitacion Valley Owner Participation Rules
  7. Visitacion Valley Relocation Plan
  8. Business Re-entry Plan
  9. Visitacion Valley Cooperation and Delegation Agreement
  10. Visitation Valley CEQA Findings 
  11. Mitigation Monitoring Program