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HomeMy WebLinkAboutMin - CC - 2017.03.21 Burlingame City Council March 21, 2017 Approved Minutes 1 BURLINGAME CITY COUNCIL Approved Minutes Special Meeting on March 21, 2017 1. CALL TO ORDER A duly noticed special meeting of the Burlingame City Council was held on the above date in the City Hall Council Chambers. 2. PLEDGE OF ALLEGIANCE TO THE FLAG The pledge of allegiance was led by Don Pope. 3. ROLL CALL MEMBERS PRESENT: Beach, Brownrigg, Colson, Keighran, Ortiz MEMBERS ABSENT: None 4. PUBLIC COMMENTS City of San Mateo Councilmember Goethals thanked the Council for their collaboration with the City of San Mateo. He stated that he looked forward to future partnerships for the Peninsula Interchange and the Broadway Grade Separation. Burlingame resident Connie Curry voiced her support for an ice rink. 5. GOLF CENTER SITE STUDY SESSION a. STUDY SESSION REGARDING THE MANAGEMENT OF THE GOLF CENTER SITE City Manager Goldman presented the staff report regarding the management of the Golf Center Site. She stated that the purpose of the Council’s study session was to review the additional information submitted by Topgolf and the US Badminton Center Group in response to the City Council’s questions about the proposals. As well staff was asking for Council to provide direction to begin negotiations with one of the two applicants. City Manager Goldman reviewed the background of the Golf Center Site RFP process. She explained that on June 20, 2016, Council requested that staff issue a Request for Proposals (RFP) for the lease management Burlingame City Council March 21, 2017 Approved Minutes 2 of the Golf Center Site for the operation of golf or other recreational or entertainment activities that would be open to the public. The RFP was issued on October 12, 2016 and the City received three responses from US Badminton Center Group (USBC), Mid-Peninsula Ice Rink Foundation (MIRF) and Topgolf International. City Manager Goldman stated that USBC’s original proposal included building a facility that would contain 20-50 badminton courts, a 10,000 – 20,000 square foot Wellness Center, an outdoor training facility, a food court, a pro shop and supporting spaces. USBC would retain 20-25 of the Golf Center bays. As well the facility would be built on the existing parking lot and the short game and driving range area. The facility would offer memberships and drop-in options for all ages and provide yoga, senior fitness, personal training, massage therapy, sports leagues, tournaments and youth camps. City Manager Goldman stated that she wouldn’t be discussing MIRF’s ice rink proposal because MIRF withdrew their proposal as a result of the ice rink reopening in San Mateo. City Manager Goldman stated that Topgolf’s proposal included building a 65,000 square foot LEED Silver certified facility with 120 hitting bays, 3,000 square feet of event space, a full-service restaurant and bar, a rooftop terrace, pool tables, shuffle board, and supporting areas. The facility, which would be built on the existing Golf Center Site, would offer general entertainment, food and music, golf lessons for all ages, summer camps, tournaments, and leagues. She explained that a committee comprised of Councilmember Colson, P&R Commissioner Dito, City Manager Goldman, Finance Director Augustine, DPW Murtuza and P&R Director Glomstad reviewed the proposals. Then at the January 17, 2017 meeting, staff made their recommendation advising Council to begin negotiations with Topgolf. She explained that Council determined that they needed additional information from each of the applicants before making a decision. City Manager Goldman stated that staff assembled the questions that Council wanted addressed and asked the three proposals to answer all questions by March 16, 2017. MIRF withdrew on Friday, March 10, 2017. She stated that staff received answers from Topgolf. However, she explained that from USBC, staff received an email, which noted that they can match or do better than Topgolf on rent subject to having the whole site. As well, the email stated that USBC was willing to offer community amenities that would be open to the public. She stated that a new drawing of the USBC site was submitted at 4:30 p.m. (2 hours before the study session), however the rendering doesn’t provide a lot of detail. City Manager Goldman stated that Topgolf amended their offer by increasing their annual rent from $500,000 to $550,000. As well, Topgolf stated that they will contribute $250,000 to the City to use for Murray Field. City Manager Goldman stated that staff looked at whether they could combine one or more facilities on the site. However, she stated that staff didn’t believe this was feasible, due to the unique requirements of each proposal and the corresponding parking requirements. City Manager Goldman stated that at the January 17, 2017 meeting, staff received questions about the impact of Topgolf upon local municipalities. She stated that BPD contacted Roseville, CA, Gilbert, AZ and Midvale, UT which all have Topgolf facilities. All three police departments reported that they do not Burlingame City Council March 21, 2017 Approved Minutes 3 consider the Topgolf facility a problem. As well, the respective police departments stated that the calls for service are not above the norm for an establishment of that nature and size. Moreover, she stated that the police departments reported that Topgolf was receptive and cooperative in working with the local police departments. Mayor Ortiz asked if any of his colleagues had questions. Councilmember Keighran explained that she was no longer recused from this matter. She stated that because MIRF had withdrawn their proposal, County funding was no longer involved, and therefore she was now able to discuss the matter. Councilmember Keighran asked when it comes to monitoring state regulations dealing with the clay caps who will be responsible for that. DPW Murtuza stated that technically it will be the City. However, he explained that from an agreement point of view, the City will be working with the selected applicant on how to monitor the clay caps. Mayor Ortiz asked if any representatives from USBC were present. There were none. Mayor Ortiz asked Topgolf to make their presentation. Topgolf representative Devin Charon presented two videos showcasing Topgolf’s mission and their work within the community. Mr. Charon discussed the design of Topgolf’s facility including event space, lower lounge, rooftop terrace and outfield. He discussed the light pollution that comes from their facility and that it is very minimal. He reviewed how the hitting bays are designed to feel like you are in your living room with tvs, food service and the creation of an intimate atmosphere for your group. As well, he discussed Topgolf’s high retention rate of employees, stating that they offer their employees competitive wages and 401k’s. Lastly, Mr. Charon discussed Topgolf’s work with charitable organizations including Make-A-Wish, Heroes Discount, Bunkers for Baghdad and Grow the Game. Councilmember Beach thanked Mr. Charon for his presentation. She asked how Topgolf proposed to ensure that they had enough parking at the Golf Center Site receive the anticipated 500,000 visitors a year. Mr. Charon stated that Topgolf currently targets having 450-500 parking spaces per site. He stated that the site in Burlingame will have 799 parking spots. Councilmember Beach stated that if Murray Field has 225 spaces, then Topgolf will more than triple the amount of parking spaces. Mr. Charon replied in the affirmative. Councilmember Beach stated that she traveled to the Roseville facility and went on a late Saturday afternoon because she wanted to see a Topgolf facility during peak hours. She stated she was amazed that the parking lot seemed to be full. Therefore, she asked if there was an overflow issue how would Topgolf propose to mitigate parking problems. Mr. Charon stated that in the past they have worked with surrounding hotels, office buildings, and off-site locations to lease parking space. Councilmember Beach asked what Topgolf’s typical capacity is. Mr. Charon stated about 1000. Burlingame City Council March 21, 2017 Approved Minutes 4 Councilmember Beach asked if Topgolf typically hits capacity during peak hours. Mr. Charon replied in the affirmative. Mayor Ortiz asked how many parking spots they have in Roseville. Mr. Charon replied he didn’t know. Vice Mayor Brownrigg stated that he visited Topgolf and had asked about how many balls leave the facility. He explained that at first he was told that Topgolf doesn’t lose balls but that later an employee let him know that it happens occasionally. He stated his concern was that Topgolf would be next to Murray Field and he didn’t want the kids playing on the field to be hit by balls. Accordingly, he asked what the tallest net pole Topgolf had previously installed was. Mr. Charon stated that the company standard is for 170 foot tall net poles. He explained that this was based off of ball flight studies and Topgolf’s work with Titleist to keep all balls in the facility. As well, he discussed their zero lost ball policy and their rules regarding individuals who purposefully try to hit over the nets. Vice Mayor Brownrigg asked how much latitude the City had in landscaping on top of the clay caps and specifically could trees be planted. DPW Murtuza stated that this was tricky because the tree roots could separate the clay caps. Councilmember Keighran asked if Topgolf would be open to developing a shuttle service with the hotels so that individuals weren’t driving to Topgolf. Mr. Charon stated absolutely as it benefits all. Councilmember Keighran asked if they had a shuttle service at any other site. Mr. Charon stated that in Las Vegas they are tied to the MGM so they have a dedicated shuttle that goes from MGM to Topgolf. Councilmember Colson stated that she was a member of the task force during the RFP for the Golf Center Site so her questions had been answered. Councilmember Beach discussed her trip to the Roseville site. She stated that the guest experience was very impressive and that she didn’t feel pressured to have her table turned out from under her. She stated that there was an hour and 40 minute wait for hitting bays, but was told if she got there at 5 pm there would be a 4 hour wait. She stated what struck her was that there wasn’t a lot to do while you waited. She asked if they had discussed allowing reservations. Mr. Charon stated that Topgolf’s IT department is looking at implementing a reservation system. Councilmember Beach stated that she spent $184 at Topgolf for her and her two children. She asked if it was typical to spend more money on food and beverages than golf. Mr. Charon replied in the affirmative. Councilmember Beach asked if the food and beverage pricing changes based on markets. Mr. Charon replied no. Councilmember Beach asked about the transition to the evening. She stated that she had talked to Topgolf staff and they had stated that there was a big transition around 6:30-7:00 p.m. Mr. Charon discussed the day progression from avid golfers at 9 a.m. to business people at lunch time, then students and in the later hours Burlingame City Council March 21, 2017 Approved Minutes 5 it is a more social crowd into date night. He stated that there are four pillars of their business: 1. Millennial- social seekers; 2. Avid golfers; 3. Families; and 4. Corporate events. Councilmember Beach asked if the Thursday-Saturday night crowd was the Millennial-social seeker crowd. Mr. Charon replied in the affirmative. Councilmember Beach stated that around 8 p.m. a DJ starts playing, and it becomes more of a high energy atmosphere. She asked if Topgolf received any noise complaints at Roseville or their other sites. Mr. Charon stated that they had but that they are very proactive and worked with the community and the local police departments to alleviate any noise concerns. Councilmember Beach asked if they had private security at all their venues. Mr. Charon replied in the affirmative. Councilmember Beach stated that the Roseville site had uniformed officers posted at Topgolf on Friday and Saturday nights. Mr. Charon stated that they actively work with the police department to see what measures the community would like to see Topgolf put in place to ensure everyone’s safety. Councilmember Beach stated that she was concerned about drinking and driving. Mr. Charon stated that all the employees were fully trained to alleviate this possibility. As well, he explained that lyft is a corporate partner and that they align themselves with other groups to ensure that their guests get home safe. Councilmember Beach asked if Police Chief Wollman had talked to different municipalities’ police departments about Topgolf in their communities. Police Chief Wollman replied in the affirmative. Police Captain Matteucci stated that he spoke with the Police Lieutenant in Roseville and that he was informed that the uniformed officers on Fridays and Saturdays were just a precaution. He stated that BPD talked to police departments in five locations that had Topgolf facilities: Gilbert, Arizona, Roseville, California, Midvale, Utah, Hillsboro, Oregon, and Alpharetta, Georgia. He explained that all were in suburbs outside of large cities. Police Captain Matteucci stated that the five police departments explained that there were initial growing pains with lighting, noise and traffic. However, he stated that all of the police departments stated that Topgolf was great to work with in mitigating the issues and that the calls for service were within reason for a venue of that nature. Police Chief Wollman stated that he talked to the Atlanta, Georgia police department about the Midtown facility. He stated that this site was in downtown Atlanta and that it was busy. He explained that the police department stated that this location had traffic congestion and some fights. However, he added that this location was not similar to Burlingame and the Atlanta PD suggested he talk to the Alpharetta PD. In speaking with the Alpharetta PD, he explained that it was clear that the police work closely with staff to handle any issues. Burlingame City Council March 21, 2017 Approved Minutes 6 Councilmember Beach thanked the police department for their due diligence. She stated that it seems that any calls the police departments receive from Topgolf are not above the norm for a venue of its size. Police Chief Wollman replied in the affirmative. Mayor Ortiz opened the item up for public comment. Burlingame resident Don Pope stated his support for Topgolf. Burlingame resident Cynthia Cornell stated that she would like the revenue from whichever applicant was chosen to go towards affordable housing. Burlingame resident JoAnneh Nagler stated that an important issue in the community is how to create affordable workforce housing and how to fund this project. She talked about how the revenue from the applicant could start to chip away at this problem. Former Councilmember Root asked the Council to address concerns such as parking upfront with Topgolf. Mayor Ortiz closed public comment. Councilmember Beach asked if it was accurate that Topgolf would hire 500 employees for its potential facility in Burlingame. Mr. Charon replied in the affirmative. Councilmember Beach asked if it accurate that 30 of the 500 employees would be salaried. Mr. Charon replied in the affirmative. Councilmember Beach asked what the average salary of a full-time salaried employee would be. Mr. Charon stated that it was about $55,000 on a non-regional adjusted basis. Councilmember Beach stated that these employees would be needing housing. Councilmember Beach asked how late programing goes on Thursdays and Friday nights at Murray Field. P&R Director Glomstad stated that it goes until 9-930 p.m. She added that Saturdays end at about 8 p.m. Councilmember Beach asked if once Murray Field is turfed would it be used year round. P&R Director Glomstad replied in the affirmative. Mayor Ortiz stated that Council had just received an email from USBC stating they wouldn’t have a representative at the meeting. Councilmember Keighran asked if the Topgolf sites have cameras in the parking lot. Mr. Charon stated he would have to look into that. Councilmember Keighran stated that because of previous issues at the Bayfront, especially in hotel parking lots, she would like to see cameras installed if Topgolf’s proposal was chosen. Burlingame City Council March 21, 2017 Approved Minutes 7 Vice Mayor Brownrigg asked if the property tax would be assessed on the constructed value of improvements. Finance Director Augustine replied in the affirmative. Vice Mayor Brownrigg asked if it the build cost is $15 million, would that be the number the County uses to assess property taxes. Finance Director Augustine replied in the affirmative. Vice Mayor Brownrigg asked if Caltrans was concerned about the impact of the project. DPW Murtuza stated that 101 is already a major source of congestion and that Caltrans and the Transportation Authority are currently looking into a project that would add lanes to 101. Vice Mayor Brownrigg asked if Topgolf’s impact on congestion would be minimal or if it would cause issues. DPW Murtuza stated that it would be minimal. Vice Mayor Brownrigg stated that he saw a lot of benefits for the hotel and commercial developments communities. He stated that from a community point of view he saw something good for 20-30 year olds when there isn’t a lot for that age group in area. However, he explained that it doesn’t sit well with him that public land is being conceded to a for profit entity. He explained that he would rather see the land used for community purposes but the Council wasn’t presented with a pure recreation community use. Vice Mayor Brownrigg stated that he is concerned that Topgolf could detract from the downtown areas and negatively impact local businesses. He discussed the idea that hotel guests wouldn’t venture past the Bayfront area. Vice Mayor Brownrigg stated that the priority for him was that the City must get the best terms possible for the Golf Center Site. He asked staff to look into the terms El Segundo had negotiated with Topgolf over the lease of public land. As well, he stated that he didn’t believe this project was recreational and was instead entertainment. Therefore, because it was taking away from recreational uses, he stated he would like to see some of the revenue funds directed towards recreational use. Councilmember Keighran stated that it was unfortunate that USBC wasn’t there to make a presentation or answer Council’s questions. She stated to her this showed a lack of commitment. She explained that in terms of Topgolf it depended on how you defined recreation. She stated she looked up the definition of recreation and it was activity that one does when one isn’t working for pleasure, leisure, etc. And therefore, to her Topgolf fits this definition. Councilmember Keighran stated that there were a lot of recreational activities available to the youth including the library, sports leagues and Parks and Recreation programming. She went on to explain that during the General Plan update meetings, a common complaint is that there isn’t a lot for 20-30 year olds to do in the area. She stated that Topgolf would give this age range an option in the County. Councilmember Keighran stated that she didn’t believe that Topgolf would affect the downtown businesses as it is a unique activity. Additionally she stated that the City depends on TOT revenues and that with $100 million unfunded CIP projects, Topgolf could help the City. Burlingame City Council March 21, 2017 Approved Minutes 8 Councilmember Keighran stated that she believed Topgolf would be beneficial to the City and that the concerns that came up would need to be addressed during the negotiations. Councilmember Beach stated that she had been struggling with determining what the best use is for the Golf Center Site. She stated that she thought about what the highest calling for municipal land is and what it should do for the community. She explained that she came to the conclusion that municipal land should serve as a community gathering space where people are interacting. She gave the example of the library and the meetings that occur there. She stated that there is less and less land available for those pursuits, particularly if they don’t generate revenue. Accordingly, she thought the Council has a responsibility when investing in public lands that it be used as a community gathering space. Councilmember Beach stated that she believed Topgolf to be a great company that has high morale and takes care of its staff. She explained that she has every reason to believe that Topgolf would be a good partner in the community. She discussed how she had talked with the Roseville Mayor and an Atlanta councilmember about Topgolf in their communities. She stated that in those locations, public land wasn’t utilized. Councilmember Beach stated that the activity that occurs on public land is more important than the revenue that can be generated. She stated that she believes the primary activity of Topgolf is entertainment and hospitality and for her that doesn’t fit with the vision of how public land should be utilized. Councilmember Beach stated that she has lingering concerns about the quality of life with regards to how Topgolf could negatively impact traffic, noise and light. Lastly, she stated that she wasn’t sure the City had found the right partner yet for this site and thought that the Council should be patient as the decision could last 20-40 years. Councilmember Colson talked about going to Topgolf in Las Vegas and how family oriented the experience is. She stated that when making this decision the Council has to think about what serves the greatest number of people. As well, she stated that she wasn’t worried about local businesses because she agreed with Councilmember Keighran that Topgolf would be a unique activity that wouldn’t negatively impact the local restaurant industry. Councilmember Colson stated that the City has a history of working with for-profit companies on public land projects. She gave the example of the development on Lots F and N. Councilmember Colson stated that she believed Topgolf would be a good partner and explained that a portion of the revenues should go towards affordable housing for the community. Councilmember Colson stated that she supported Topgolf’s proposal. As well, she thanked the staff for their time spent reviewing this project. Mayor Ortiz stated that the Golf Center Site was a unique situation as it was built above a landfill. Accordingly, there was a lot that can’t be done on this site. He explained that the staff had looked into using the site to build additional fields for youth sports but that the cost was exorbitant. As well, he explained that he didn’t feel that USBC was committed to this project as they didn’t show up to the meeting or answer Council’s questions. Burlingame City Council March 21, 2017 Approved Minutes 9 Mayor Ortiz talked about visiting Topgolf in Roseville and its family environment. Mayo r Ortiz stated he was in favor of Topgolf. Councilmember Colson made a motion to enter into negotiations with Topgolf; seconded by Councilmember Keighran. Vice Mayor Brownrigg stated he was disappointed that there wasn’t competition for this site. He stated he would like to make sure that the City preserves air rights over the site. Councilmember Beach asked if she should provide her list of concerns that she would like discussed during negotiations to staff. City Attorney Kane stated that what they didn’t have yet was the structure of the negotiations and who would be involved. She recommended a closed session once it was determined if the City was moving forward with Topgolf to discuss who would be involved in the negotiations. Vice Mayor Brownrigg asked Councilmember Colson to amend the motion to add the language that a significant portion of the revenue would be for recreational development. City Manager Goldman stated this merited a separate discussion once terms and revenue were determined. The motion was not amended. The motion was approved 4-1 by roll call. (Councilmember Beach voted against). 6. ADJOURNMENT Mayor Ortiz adjourned the meeting at 8:53 p.m. Respectfully submitted, /s/ Meaghan Hassel-Shearer City Clerk